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18/06/2016 09:05:41 PM

Introduction of Operation and Supply chain management

Operations and supply management (OSM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.

OSM is concerned with the management of the entire system that produces a good or delivers a service.

Exhibit 1.1 below shows a supply network for a Men’s Nylon Supplex Parka sold on Website such as L.L Bean or Land’s End.

We can understand the network by looking at the four color-coded paths.

  • The blue path traces the activities needed to produce the Polartec insulation material used in the parkas. Polartec insulation is purchased in bulk, processed to get the proper finish, and then dyed prior to being check for consistency – or grading – and color. It is then stored in a warehouse.
  • The red path traces the production of the nylon Supplex used in the parkas. Using petroleum-based polymer, the nylon is extruded and drawn into a yarnlike material. From here the green path traces the many steps required to fabricate the clothlike Supplex used to make the parkas.
  • The yellow path shows the Supplex and Porlatec material coming together and used to assemble the lightweight and warm parka. The completed parkas are sent to a warehouse and then on to the retailer’s distribution center. The parkas are then picked and packed for shipment to individual customers.
  • Think of the supply network as a pipeline through which material and information flows. There are key locations in the pipeline where material and information is stored for future use: Porlatec is stored near the end of the blue pipeline; Supplex is stored near the end of the red pipeline. In both cases, fabric is cut prior to merging with the yellow pipeline. At the beginning of the yellow path, bundles of Supplex and Porlatec path are stored prior to their use in the fabrication of the parkas.
  • At the end of the yellow path are the distribution steps which involve storing to await orders, picking according to actual customer order, packing, and finally shipping to the final customer.

Exhibit 1.1 Process steps for Men’s Nylon Supplex Parka

Networks such as this can be constructed for any product or service. Typically each part of the network is controlled by different companies including:

  • The nylon Supplex produce
  • The Polartec producer
  • The parka manufacturer
  • The catalog sales retailer
  • Transportation providers (ships and trucks)

The network also has a global dimension with each entity potentially located in a different country.

OSM manages all of these individual processes as effectively as possible.

Success in today’s global markets requires a business strategy that matches the preferences of customers with the realities imposed by complex supply networks. A sustainable strategy that meets the needs of shareholders and employees, and preserves the environment is critical

Operations refers to manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers.

For example:

  • A manufacturing process would produce some type of physical product such as an automobile or a computer.
  • A service process would produce an intangible product such as a call center that provides information to customers stranded on the highway or a hospital that services accident victims in an emergency room.

Supply refers to supply chain processes that move information and material to and from the manufacturing and service processes of the firm. These include the logistics processes that physically move product and the warehousing and storage processes that position products for quick delivery to the customer. Supply refers to providing goods and service to plants and warehouses at the input end, and also the supply of goods and service to the customer on the output end of the supply chain

Supply and demand planningneeded to manage and coordinate the manufacturing, service, and supply chain processes. These involve forecasting demand, making intermediate term plans for how demand will be met, controlling different types of inventory, and detailed weekly scheduling of processes.

Người đăng: Huỳnh Linh Lan