Week Nine - Operations Management and Supply Chain

Define the term operations management

Operations management is the management of systems or processes that convert or transform resources (including human resources) into goods and services.


Visit the link to gain further information about operational management
http://www.youtube.com/watch?v=LeeTy3YaMu0

Explain operations management’s role in business

Operations management role in the business is to manage the core processes used to manufacture goods and produce service. There is a range of interrelated activities the OM team must do in a business, in order to add value to their products These activities:

·         Forecasting

·         Capacity planning

·         Scheduling

·         Managing inventory

·         Assuring quality

·         Motivating and training employees

·         Locating facilities

Describe the correlation between operations management and information technology

Managers can use IT to heavily influence OM decisions, including :

·         What: What resources will be needed and in what amounts?

·         When: When should the work be scheduled?

·         Where: Where will the work be performed?

·         How: How will the work be done?

·         Who: Who will perform the work?

Explain supply chain management and its role in a business

A Supply Chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximise total supply chain effectiveness and profitability in the business.

It's role in a business is to "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

http://en.wikipedia.org/wiki/Supply_chain_management#Importance_of_supply_chain_management

List and describe the five components of a typical supply chain

A supply chain is a network of organizations and facilities that transforms raw materials into products delivered to customers. A typical supply chain is a made out of five components which includes:

1.        Supplier - provides the resources, raw material to manufacturer

2.        Manufacturer – creates the product

3.       Distributor – Distributes the product to the retailers/ sellers

4.        Retailer -  Orders product from distributers and sell to consumers

5.       Customer - Consumer who purchases the product. 

Supplier > Manufacturer> Distributor>Retailer>Customer

Image1: illustration of a typical supply chain
http://en.wikipedia.org/wiki/File:A_company%27s_supply_chain_(en).png

Define the relationship between information technology and the supply chain.

 Organisations must technologies that can effectively manage and oversee their supply chains. Business have started using information technology in their SC to create integrations or tight process and information linkages between functions within an organisation. Business also taking advantage of the technology advances in the five SRM components have significantly improved companies’ forecasting and business operations. Thus, provide companies with greater visibility over the supply chain inventory levels.

Figure 8.10 Factors driving supply chain management