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Chap001 Oscm
Chapter 1

Operations and Supply Chain Management

McGraw-Hill/Irwin

Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved McGraw-

Learning Objectives
1. Understand why it is important to study operations and supply chain management. 2. Categorize operations and supply chain processes. 3. Contrast differences between services and goods producing processes. 4. Define efficient and effective operations 5. Identify operations and supply chain management career opportunities. 6. Describe how the field has developed over time.
1-2

What is Operations and Supply Chain Management?

• Operations and supply management (OSM): the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
– Functional field of business – Clear line management responsibilities

• Concerned with the management of the entire system that produces a good or delivers a service
LO 1
1-3

Process Steps for Men’s Nylon Supplex Parka

LO 2
1-4

Understanding the Global Supply Chain
• Success in today’s global markets requires a business strategy that matches the preferences of customers with the realities of supply networks • A sustainable strategy is critical
– Meets the needs of shareholders and employees – Preserves the environment

• Supply refers to processes that move information and material to and from the manufacturing and service processes of the firm
LO 3
1-5

Organization of OSCM: The Integration of Strategy, Processes and Planning

LO 1
1-6

Supply Chain Processes

LO 3
1-7

Work Involved in Each Type of Process
• Planning: the processes needed to operate an existing supply chain strategically • Sourcing: the selection of suppliers that will deliver the goods and services needed to create the firm’s product • Making: Where the major product is produced or the service provided • Delivering: carriers are picked to move products to warehouses and customers • Returning: the

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