OSCM Exam

• Operations management


  Management for all operations required to create product from scratch and deliver to customer
• Supply Chain Management (SCM)


  A subset of operations management that refers to the process of managing the flow of goods and services to and from a business, including every step involved in turning raw materials and components into final products and getting them to the customer

  
• Most important aspects of operations management

  • Quality management
  • Capacity planning
  • Inventory management
  • Supply chain management
  • Resource allocation
  • Risk management
  • Technology integration
• Operations management is a critical function within an organization that focuses on designing, overseeing and controlling processes to produce goods and services efficiently
• Operations & SCM involves

  • Product design
  • Purchasing
  • Manufacturing
  • Service Operations
  • Logistics
  • Distribution

  
• Success in operations & SCM depends on

  • Strategy
  • Processes to deliver products and services
  • Analytics to support the decisions needed to manage the firm
• Operations & Supply Chain Management (OSCM)


  The design, operation and improvement of the systems that create and deliver the firm's primary products and services
• Operations managers are concerned with whatever is converting inputs into higher value outputs
• Supply chain is the movement in and out of all of the organizations that are responsible from raw materials to customers and returns
• Supply Chain Operations Resource Model (SCOR Model)

  A good framework as it doesn't matter about the size of organization, or type of operations that the organization operates in

  
• 5 functions of the SCOR model for planning of any organization's operations functions

  • Planning
  • Sourcing
  • Making
  • Delivering
  • Returning
• Efficiency


  Doing the right things at the lowest possible cost without foregoing quality
• Effectiveness


  Doing the right things to create the most value for your customers
• Value


  Not foregoing the attractiveness/purpose of a product relative to its cost (Quality / Price)
• Triple Bottom Line Sustainable strategy

  Evaluating the firm against social, economic and environmental criteria (people, profit and planet)
• Triple Bottom Line Sustainable strategy criteria

  • Social performance: fair and beneficial business practices toward labour, community and the region
  • Economic performance: competitive return on investment and long-term value in the form of profit
  • Environmental performance: impact on the environment, reducing carbon emission and waste
• Strategy Competitive Dimensions


  • Price
  • Quality
  • Delivery speed
  • Delivery reliability
  • Coping with changes in demand
  • Flexibility and new product introduction speed
• Risk Mitigation Framework


  • Identify sources of potential disruptions and assess the business's vulnerabilities
  • Assess the potential level of impact of the risk
  • Develop plans to mitigate the risk

  
• Consequences of risk in the supply chain can include losing customers, reduced funding, stock sell-off, and impacts on staffing
• Productivity is a measure of how well resources are used
• Types of productivity measures

  • Partial productivity: measures compare output to a single input
  • Multifactor productivity: measures compare output to a group of inputs (2 or more)
  • Total productivity: measures compare output to all inputs

  
• Productivity = Outputs / Inputs
• Human centred design


  The end consumer always needs to be in mind when designing
• Phases of the Generic Development Process

  • Planning
  • Concept development
  • System-level design
  • Design detail
  • Testing and refinement
  • Production ramp-up
• Capacity


  The ability to hold, receive, store or accommodate, the amount of output that a system is capable of achieving over a specific period of time
• Capacity Planning Time Durations

  • Long range (greater than 1 year)
  • Intermediate range (monthly or quarterly plans covering the next 6 to 18 months)
  • Short range (less than 1 month)
• Capacity utilization rate


  A measure of how close the firm is to its best possible operating level
• Economies of scale


  As a plant gets larger and volume increases, the average cost per unit decreases
• Diseconomies of scale


  At some point, the plant becomes too large and average cost per unit increases
• Capacity focus


  The idea that a production facility works best when it is concentrated on a limited set of production objectives
• Capacity flexibility


  The ability to rapidly increase or decrease product levels or the ability to shift rapidly from one product or service to another
• Capacity cushion


  An amount of capacity in excess of expected demand
• Determining capacity requirements involves using forecasting to predict sales, calculating labour and equipment requirements to meet forecasts, and projecting labour and equipment availability over the planning horizon
• Project


  A series of related jobs, usually directed toward some major output and requiring a significant period of time to perform
• Project management


  Planning, directing, and controlling resources (people, equipment, material, etc.) to meet the technical, cost, and time constraints of the project
• Project management is important because there are different types of projects ranging from the development of new products, revisions to old products, new marketing plans and a vast array of projects
• Project organisational structures


  • Pure project
  • Functional project
  • Matrix project
• Advantages of a pure project structure

  • The project manager has full authority
  • Team members report to one boss
  • Shortened communication lines
  • Team pride, motivation and commitment are high
• Disadvantages of a pure project structure

  • Duplication of resources
  • Organizational goals and policies are ignored
  • Lack of technology transfer
  • Team members have no functional area "home"
  • Project is run outside normal day-to-day running of the business
• Advantages of a functional project structure


  • A team member can work on several projects
  • Can transfer skills and knowledge from one project to another
  • Technical expertise maintained in functional area
  • Functional area is 'home' after the project is completed
  • Critical mass of specialised knowledge