Supply chain challenges at leapfrog case study

Introduction to Operations and Supply Chain Management Fifth Edition Chapter 1 Introduction to Operations and Supply Chain Management Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Chapter Objectives • Describe what the operations function is and why it is critical to an organization’s survival. • Describe what a supply chain is and how it relates to a particular organization’s operations function. • Discuss what is meant by operations management and supply chain management. • Identify some of the major operations and supply chain activities, as well as career opportunities in these areas. • Make a case for studying both operations management and supply chain management. Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (1 of 7) • Every organization must make a product or provide a service that someone values. • Most organizations function as part of larger supply chains. • Organizations must carefully manage their operations and supply chains in order to prosper and, indeed, survive. Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (2 of 7) • Operations Management – The planning, scheduling, and control of the activities that transform inputs into finished goods and services. © 2016 J.H. Blackstone, ed., APICS DICTIONARY, 15th ed. (Chicago, IL: APICS, 2016) Figure 1.1 Viewing Operations as a Transformation Process Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (3 of 7) • Supply Chain Management – The active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage. – Supply Chain – A network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers and service providers are linked together through physical flows, information flows, monetary flows, and people. Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (4 of 7) • Supply Chain Terminology – Upstream – Activities or firms positioned earlier in the supply chain. – Downstream – Activities or firms positioned later in the supply chain. – First-tier supplier – A supplier that provides products or services directly to a firm. – Second-tier supplier – A supplier that provides products or services to a firm’s first-tier supplier. Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (5 of 7) Figure 1.2 A Simplified View of Anheuser-Busch’s Supply Chain Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (6 of 7) Supply Chain Operations Reference (SCOR) Model • Planning activities, which seek to balance demand requirements against resources and communicate these plans to the various participants. • Sourcing activities, which include identifying, developing, and contracting with suppliers and scheduling the delivery of incoming goods and services. • “Make,” or production, activities, which cover the actual production of a good or service. • Delivery activities, which include everything from entering customer orders and determining delivery dates to storing and moving goods to their final destination. Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Why Study Operations and Supply Chain Management? (7 of 7) • Return activities, which include the activities necessary to return and process defective or excess products or materials.