What Is Operations And Supply Chain Management?

What is Operations and Supply Chain Management?

Operation and supply chain management is defined as the design, operation and improvement of the systems that créate and deliver the firm’s primary products and services.

OSCM is a functional field or businesswith clear line management responsibilities. OSCM is concerned with the management of the entire system that produces a good or delivers a service.

All managers should understand the basic principles that guide the design of transformation processes. This includes understanding how the different typyes of processes are organized and how plannning information systems are used to coordinate these process.

Operation and Supply Chain Processes

Can be categorized, particularly from the view of a producer of consumer products and services, as planning, making, delivering and returning.

1. Planning: Consists of the processes needed to opérate an existing supply chain strategically. Here the company must determine how anticipated demand will be met with available resources.

2. Sourcing: Involving the selection of suppliers that will deliver the godos and services needed to create the firm’s product.

3. Making: Is where the major product is produced or the service provided.

4. Delivering: Is also referred to as logistics processes.

5. Returning: Involving the process for receiving worn-out, defective and excess product back from customers and support for customers who have problems with delivered products.

Differences Between Services and Goods

There are some differences between services and goods. The first is that a service is an intangible process that cannot be weighed or measured, whereas a good is a tangible output of a process that has physical dimensions. This distinction has important business implications since a service innovation, unlike a product innovation, canno be patented.

Efficiency, Effectiveness And Value

Efficiency means doing something to the lowest cost; Effectiveness means doing the right to créate the most value for the company; Value can be metaphorically defined as quality divided by Price.

Careers in Operations and Supply Chain Management

The Chief Operating Officer Works with the CEO and company president to determine the company´s competitive strategy. The COO´s ideas are filtered down through the rest of the company. COO´s determine an organization´s location, its facilities and how the hiring policy will be implemented.

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