Operation Management and Supply Chain Fundamentals
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- Operation management fundamental
- Implementation and effectiveness of operation Management
- Supply chain versus operation Management
- Key Drivers of Operation Management
- About SAP, ERP and IFS
- 12 major Components of OM
- Supply Chain and Their functional areas and tool
- Logistics ,Implementation and Application
- Six Sigma Roles and Tools
- Six Sigma Effectiveness
- Able to understand basics of operation research
- No other requirements needed
Operation management deals with the internal section of the organisation and the processes of transforming a product from the desired output.
Roles of Operation manager in an organization are as follow:-
Operations Manager Responsibilities:
Provide inspired leadership for the organization.
Make important policy, planning, and strategy decisions.
Develop, implement, and review operational policies and procedures.
Assist HR with recruiting when necessary.
Help promote a company culture that encourages top performance and high morale.
Oversee budgeting, reporting, planning, and auditing.
Work with senior stakeholders.
Ensure all legal and regulatory documents are filed and monitor compliance with laws and regulations.
Work with the board of directors to determine values and mission, and plan for short and long-term goals.
Identify and address problems and opportunities for the company.
Build alliances and partnerships with other organizations.
Support worker communication with the management team.
Supply chain management
Deals with the flow of services and goods from the origin of production to the origin of consumption.
Supply chain management involves five main functions: aligning flows, integrating functions, coordinating processes, designing complex systems, and managing resources.
Six Sigma Roles And Tools:-
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.
Practiced worldwide to remove bottle-necks and variables in any processes
- operation management and supply chain management
- market researcher
- Finance personnel
- Project managers
Introduction of operation management(OM)
Methodology to design and produce service and goods.
Operation management deals with the internal section of any organization.
Operation management chiefly concerned with planning, organizing, and supervising in the contexts of production, manufacturing, or the provision of services."
Supply chain management (SCM)
It is defined as the flow of processes of goods and services
SCM involves the movement and storage of raw material from point of origin to point of consumption
It is also known as the linkage of raw material, supplier, manufacturing, distribution retail location to customers.
Why study Operational Management
We always have eager to know about the production of a product, manufacturing sector, or what is a feedback loop for effective transmission?
It is an integrate process of planning, resources, input-output, strategy making, overseeing, and cost evaluation.
It is an area of management concerned with designing, redesigning, and controlling the process of production of goods and services.
Where we Use operation Management
OM is a multidisciplinary area in an organization along with Finance and Marketing.
OM makes sure that the material, service, labor performing effectively so as to get desired output from the given inputs
It also comprehend and implements service processes and their relationship between the customer and the organization.
Marketing and Sales
Supply Chain Management
Finance And Accounting
ØMarketing of a product.
ØTaking sales order.
ØAnalyze and Improve the process flow.
ØEvaluation of cost
ØManage labor and their policies
ØCustomer Relationship management.
ØEmploy better transport strategies
ØEnlist all Material and make Invoices
ØSanction transport services
ØWorks as per feedback from the customer.
ÒIt is an integrated process that includes all activities running in an organization to produce the desired output.
ÒAn operations system includes, for example:
inputs -- such as expertise, best practices, funding, equipment, facilities, and technologies, as well as the customer's feedback and the overall organization's strategic priorities.
processes -- such as planning (capacity, product and service design, production, facilities, jobs, inventory, quality control, etc.) and managing productivity to produce high-quality products and services.
outputs -- high-quality products and services.
outcomes -- very satisfied customers.
ÒForecasting - Component that caters to historical data, facts, figures, and statistics within the organization.
ÒLocation strategies - Oversees product base, market base, and vertically differentiated locations.
ÒMaintenance - Locates methods to reduce the frequency of failures within the production facility.
ÒPurchasing - Could be either centralized, decentralized, or combined.
ÒScheduling - Pertains to the scheduling of equipment or labor.
ÒTotal Quality Management (TQM) - Enables the organization to work toward zero defects within the organization.
Quality - The overall ability to meet consumer expectations in terms of product quality
ØJust In Time - System that will match stock availability with demand; can also have stock arriving exactly when needed.
ØMaterials Requirements Planning - Effectively manages inventory levels to ensure cost reduction.
ØProcess and System Performance - Measured through examination, capacity utilization, or production.
ØLayout of Facilities - Ensure a smooth workflow.
ØInventory Management - Adequately controlling stock within an organization.
ÒIt is defined as the flow of processes of goods and services
ÒSCM involves the movement and storage of raw material from point of origin to point of consumption
ÒIt is also known as the linkage of raw material, supplier, manufacturing, distribution retail location to customers.
Essential Supply Chain Management tool
Shipping Status Tool.
Order Processing Tool.
Lean Inventory Tool.
Special Freight Handling.
Bid and Spend Tool.
Analytics and Report.
Logistics (Inbound and Outbound).
Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage or warehouse at the desired destination.
Logistics refers to what happens within one company, including the purchase and delivery of raw materials, packaging, shipment, and transportation of goods to distributors.
Overview of six sigma methodology
Six Sigma is a set of management tools and techniques designed to improve business by reducing the likelihood of error.
It is a data-driven approach that uses a statistical methodology for eliminating defects.
The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for measuring process deviation from the process mean or target.
Overview of DFSS
Design for Six Sigma is an approach to designing or redesigning a product and/or services to meet or exceed customer requirements and expectations.
DFSS is an enhancement to your new product development process, not a replacement for it.
A documented, well-understood, and useful new product development process are fundamental to a successful DFSS program.
Why Design for six sigma
DFSS ensures that the Product/Service meets customer requirements and that the process of this Product/Service is already at Six Sigma level.
The intention of Design for Six Sigma is to bring such new products and/or services to market with a process performance of around 4.5 sigma or better, for every customer requirement.
The 5 Key Principles of Six Sigma
The concept of Six Sigma has a simple goal – delivering near-perfect goods and services for business transformation for optimal customer satisfaction -
1. Focus on the Customer:-
This is based on the popular belief that the "customer is the king." The primary goal is to bring maximum benefit to the customer.
This requires establishing the standard of quality as defined by what the customer or market demands.
2. Measure the Value Stream and Find Your Problem:-
Map the steps in a given process to determine areas of waste. Gather data to discover the specific problem area that is to be addressed or transformed.
Identify the problem. Ask questions and find the root cause.
3. Get Rid of the Junk:-
Once the problem is identified, make changes to the process to eliminate variation, thus removing defects.
Remove the activities in the process that do not add to the customer value.
In the end, by taking out the above-mentioned junk, bottlenecks in the process are removed.
4. Keep the Ball Rolling:-
Six Sigma processes can have a great impact on an organization, so the team has to be proficient in the principles and methodologies used.
Hence, specialized training and knowledge are required to reduce the risk of project or re-design failures and ensure that the process performs optimally.
5. Ensure a Flexible and Responsive Ecosystem:-
When a faulty or inefficient process is removed, it calls for a change in the work practice and employee approach.
A robust culture of flexibility and responsiveness to changes in procedures can ensure streamlined project implementation.