Notes Lectures of Operations Management and Logistics

Operations Management and Logistics (MAN-BCU201A)



Notes Lectures Operations Management and
Logistics
These lectures captured chapter 1-5 and 7-21 of Operations and Supply Chain Management by F.R.
Jacobs and R.B. Chase (2021).



Inhoudsopgave
College 1: Introduction and Sustainable Strategy..................................................................................1
College 2: Design of products/services and projects.............................................................................4
College 3: Strategic Capacity Management...........................................................................................7
College 4: Manufacturing Processes....................................................................................................10
College 5: Service Process and Waiting Lines.......................................................................................12
College 6: Process Design and Analysis................................................................................................16
College 7: Quality Management I........................................................................................................19
College 8: Quality Management II.......................................................................................................23
College 9: Lean Systems.......................................................................................................................27
College 10: Logistics, Distribution and Transportation........................................................................30
College 11: Global Sourcing and Procurement, and Enterprise Resource Planning Systems...............32
College 12: Forecasting and Sales, and Operations Planning...............................................................36
College 13: Inventory Management....................................................................................................40
College 14: Material Requirements Planning.......................................................................................43




College 1: Introduction and Sustainable Strategy
Chapter 1: Introduction

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, Operations Management and Logistics (MAN-BCU201A)


Operations:
 Refer to transformation of inputs into outputs
 Involve workflow ordering of activities to produce product
o Functional-based workflow
o Product-based workflow
--> materials and product need to be moved and warehoused/stored = Logistics.
Supply chain = processes that move information/materials to and from firm (ranging from
raw materials to consumers)

Operations and logistics are primary activities as part of a value chain (Porter, 1985).




Success of producing and customer satisfaction depends on clever integration of:
 Operations-related strategy
 Processes to produce and deliver products and services
 Analytics to support decisions needed to manage firm


Principles guide the design of transformation processes:
 Different types of process organization
 Determination of capacity of process
 Time to produce unit of a product
 Quality monitoring of a process
 Information usage for decisions


Operations and Supply Chain Management (OSCM) is about improvement of systems that
create/deliver primary products and services:
 Change of OSC strategies
 New production technologies and modes of transport
 Optimizing processes of production and logistics activities
 Improvements in data analytics and decision making


Evaluating OSC processes on:
 Efficiency = activity at lowest possible cost (doing things right)
 Effectiveness = activity that creates most value for company (doing the right things)
o Value = quality / price
o Quality = attractiveness of product (features and durability)


Efficiency ratios:

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Chapter 2: Sustainable Operations and Supply Strategies
Triple Bottom Line:




Need to be balanced at thought of.

Shareholders = individuals that legally own one/more shares of stock of company
Stakeholders = individuals who are (in)directly influenced by actions of company

OSC managers face dilemma of using less materials against
 Biodegradable processes
 Recycling processes


OSC strategy is focused on operations effectiveness
= performing activities in way that best implements strategic priorities (at low cost)
 OSC must be integrated with corporate strategy
 Also related with business strategy (cost excellence, product differentiation and
focus)

Competitive dimensions
 Price
 Quality
 Delivery speed/reliability
 Coping strategies


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, Operations Management and Logistics (MAN-BCU201A)


 Flexibility / New-product introduction speed

Order qualifiers = dimensions that are necessary for consideration of purchasing the product
Order winners = criteria used by customer to differentiate products/services from
companies

Risk mitigation strategies:




College 2: Design of products/services and projects
Chapter 3: Design of new products and services
Product design is an element of product innovation (= bringing new products to the market).
Innovation essential to (long-term) success of company. Design crucial to success of
products and consists of:
 Concept sketches
 Prototype development


Product design and production are increasingly outsourced to suppliers
--> when strategic focus is on core competencies other than design and production
o Core competencies must be VRIO
 Contract manufacturer = organization capable of manufacturing/purchasing all
components to produce finished product
 System architect = product component design and manufacturer (ASML)


An outsourcing strategy fits technological upgrades of new products to product systems.
Change from product systems to systems of products systems.

Product development process phases:
1. Planning
2. Concept development
3. System-level design
4. Design detail
5. Testing and refinement

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