Operations management is the management of systems or processes that convert or transform resources into goods and services.
- Information technology is used in operations management to identify and improve the business process.
Explain operations management's role in business -
Managers use IT to heavily influence operations management decisions:
- What resources will be needed and in what amounts?
- When should the work be scheduled?
- Where will the work be performed?
- How will the work be done?
- Who will perform the work?
Describe the correlation (relationship) between operations management and information technology -
The OM has the responsibility of delivering the company's profits by getting a quality product out on time, as efficiently as possible, with the high levels of customer service.
Explain supply chain management and its role in business
Supply Chain Management involves the management of information flows between and amongst stages in a supply chain to maximise total supply chain effectiveness and profitability.
A supply chain involves three segments:
- Upstream, where sourcing or procurement from external suppliers occurs.
- Internal, where packaging, assembly or manufacturing takes place.
- Downstream, where distribution takes place, frquently by external distributors.
LList and describe the five components of a typical supply chain
Plan: This is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metric to monitor the supply chain so that it is effective, costs less, and delivers high quality and value to its customers.
Source: Companies must carefully choose reliable suppliers that will deliver goods and services required for making products. Companies must also develop a set of pricing, delivery, and payment processes with suppliers and create metrics for monitoring and improving the relationships.
Make: This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. This is by far the most metric-intensive portion of the supply chain, measuring quality levels, production output and worker productivity.
Devliver: This step is commonlyreffered to as logistics. Logistics is the set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. During this step, companies must be able to recieve orders from customers, fulfil the orders via a network of warehouse, pick transportation companies to deliver the products, and implement a biling and invoicing system to facilitate payments.
Return: This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.
Define the relationship between informaion technology and the supply chain.
- Technology advances in the fice SCM components have significantly improved companies' forecasting and business operations
- Integrated Systems provide companies with greater visibility over the supply chain inventory levels
- IT's primary role is to create integrations or tight process and information linkages between functions within an organisation.
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