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Chapter 1 - Introduction to managing operations across the supply chain. After studying this chapter, you should be able to: Explain what operations management is and why it is important, describe the major decisions that operations managers typically make, explain the role of processes and “process thinking” in operations management,. | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 1 Introduction to Managing Operations Across the Supply Chain McGraw-Hill/Irwin 1 1–2 Learning Objectives LO1-1 Explain what operations management is and why it is important LO1-2 Describe the major decisions that operations managers typically make LO1-3 Explain the role of processes and “process thinking” in operations management LO1-4 Explain what the supply chain is and what it means to view operations management using a “supply chain perspective” LO1-5 Identify the partners and functional groups that work together in operations management LO1-6 Define the planning activities associated with managing operations across the supply chain 2 1–3 Operations Management (OM) Is Everywhere – Part I PRODUCTS: Everything you wear, eat, sit on or in, use, read, or knock about on a sports field comes to you courtesy of operations. SERVICES: Every book you borrow from the library, every medical treatment you receive, . | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 1 Introduction to Managing Operations Across the Supply Chain McGraw-Hill/Irwin 1 1–2 Learning Objectives LO1-1 Explain what operations management is and why it is important LO1-2 Describe the major decisions that operations managers typically make LO1-3 Explain the role of processes and “process thinking” in operations management LO1-4 Explain what the supply chain is and what it means to view operations management using a “supply chain perspective” LO1-5 Identify the partners and functional groups that work together in operations management LO1-6 Define the planning activities associated with managing operations across the supply chain 2 1–3 Operations Management (OM) Is Everywhere – Part I PRODUCTS: Everything you wear, eat, sit on or in, use, read, or knock about on a sports field comes to you courtesy of operations. SERVICES: Every book you borrow from the library, every medical treatment you receive, every lecture you attend at a university, every service you receive comes to you courtesy of operations. LO1-1 3 1–4 Operations Management (OM): A Basic Definition Operations Management (OM): is the management of processes used to design, supply, produce, and deliver valuable goods and services to customers LO1-1 4 1–5 Operations Management (OM): Common Challenges Lowering costs Improving quality Enhancing product desirability Aligning OM with the company’s competitive strategy Evolving with the needs of customers, competition, and technology LO1-1 5 1–6 OM From a Supply Chain Perspective: Supply Chain (SC) Defined Supply Chain (SC): the global network of organizations and activities involved in designing, transforming, consuming and disposing of goods and services. LO1-1 6 1–7 Tangible Can be inventoried Little customer contact Long lead time Often capital-intensive Quality easily assured Material is transformed Intangible Cannot be inventoried Extensive customer contact Short lead time
