This discussion blog is specially designed for the "Department of Global Operations and Supply Chain Management" students of IICSE University, Wilmington, DE 19899, U.S.A. Here, we allow discussions on academic questions relating to your course of study on "Global Operations and Supply Chain Management" only. Happy emailing everyone!
Explain the relationship between business and functional strategies and the difference between structural and infrastructural elements:
-Business Strategy Long-term master plan for the company; establishes the general direction. -Functional Strategies Further develop the business strategy in segments of the business — must be aligned and coordinated
- Structural Difficult to change: Buildings Equipment Computer systems Other capital assets
- Infrastructural Relatively easy to change: People Policies Decision rules Organizational structure
Operations and Supply Chain Strategy: a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy
Functional Strategy - Translates the business strategy into functional terms. - Assures coordination with other areas. - Provides direction and guidance for operations and supply chain decisions.
Operations and Supply Chain Strategies Key Interactions:
-Finance: Budgeting.Analysis.Funds. -MIS: What IT solutions to make it all work together? -Human Resources: Skills? Training? # of Employees? -Design: Sustainability. Quality. Manufacturability. -Accounting: Performance measurement systems. Planning and control. -Marketing: What products? What volumes? Costs? Quality? Delivery?
The Lean Concept In Supply Management By Charles Dominick What Is Leeann && Why Should Purchase Care?? The term “Lean” (as in Lean Manufacturing) is used liberally in business today. It’s made many of us curious. Next Level Purchasing’s president Charles Dominick, C.P.M. recently interviewed Chuck Yorke to demystify Lean. Mr. Yorke is the president of Management Advisory Services and can be contacted at (248) 790-8816 or chuckyorke@yahoo.com. CD: What exactly are the principles behind Lean? CY: The principle is simple: Lean is the elimination of waste in all forms. What we call Lean started with the Toyota Production System identifying seven wastes: Overproduction, Inventory, Waiting, Transportation, Extra Processing, Motion, and Defects. Some have identified more wastes. Waste is an activity that doesn’t add customer-perceived value to the product/service. CD: How can Lean principles be applied to purchasing and supply management? CY: There are three flows within companies – material (product, materials, service) flow, information flow, and cash flow. There needs to be accurate information flowing through the supply chain so the material flows smoothly. Mapping a process such as purchasing can identify wastes to be reduced or eliminated – how far do we walk to locate a supplier file, do we collect too much information or misinformation, how long does an order wait for approval, etc. CD: This decade’s "Lean" seems pretty darn similar to "Business Process Reengineering" of the '90's. How are they distinct? Does excitement about Lean show how new one is to process improvement? CY: Reengineering looks at improving processes, Lean focuses on removing waste. To experienced process improvers, sure, removing waste has always been part of the job. CD: I've seen a vendor who preached Lean but had industry-worst quality. Are there any controls built into the Lean methodology to prevent sacrificing quality for efficiency?
Interview Continue…… CY: Sorry, but that supplier may have talked Lean but they didn’t live and breathe it. Some companies implement a Lean tool or two but do not understand the concept. Bad quality is a defect and that is a waste that needs to be eliminated, not passed on to an internal or external customer. Employees need to be engaged in finding and fixing problems, creating a Poka-yoke (mistake-proofing) mechanism to prevent the mistake from occurring again or to make it obvious so the problem is not passed along. Spotlight on professional development opportunities If you are new to purchasing, are you ready for the many challenges you'll face in the months ahead? Next Level Purchasing, Inc.’s latest online class, “Mastering Purchasing Fundamentals,” walks you through the purchasing process step-by-step. You'll be ready for these challenges. And you won't need the years of experience usually required to learn how to deal with these challenges. You'll get more than just an introduction to purchasing - you will become an expert at flawlessly executing and managing purchases.
10 comments:
This discussion blog is specially designed for the "Department of Global Operations and Supply Chain Management" students of IICSE University, Wilmington, DE 19899, U.S.A. Here, we allow discussions on academic questions relating to your course of study on "Global Operations and Supply Chain Management" only. Happy emailing everyone!
Explain the relationship between business and functional strategies and the difference between structural and infrastructural elements:
-Business Strategy Long-term master plan for the company; establishes the general direction.
-Functional Strategies Further develop the business strategy in segments of the business — must be aligned and coordinated
- Structural
Difficult to change:
Buildings
Equipment
Computer systems
Other capital assets
- Infrastructural
Relatively easy to change:
People
Policies
Decision rules
Organizational structure
Operations and Supply Chain Strategy: a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy
Functional Strategy
- Translates the business strategy into functional terms.
- Assures coordination with other areas.
- Provides direction and guidance for operations and supply chain decisions.
Operations and Supply Chain Strategies Key Interactions:
-Finance: Budgeting.Analysis.Funds.
-MIS: What IT solutions to make it all work together?
-Human Resources: Skills? Training? # of Employees?
-Design: Sustainability. Quality. Manufacturability.
-Accounting: Performance measurement systems. Planning and control.
-Marketing: What products? What volumes? Costs? Quality? Delivery?
Decisions Guided by the Structural Strategy:
1- Capacity:
Size?
Timing?
Type?
2- Facilities
Size?
Location?
3- Technology
Equipment?
Processes?
Information systems?
4- Direction?
- Extent?
-Vertical Integration?
Decisions Guided by the Infrastructural Strategy:
1-Organization:
Control/reward systems?
Centralization/decentralization?
Workforce – skilled/semi-skilled?
2- Sourcing and Purchasing:
Supplier selection/performance metrics?
Procurement systems?
Sourcing strategy?
3- Planning and Control:
Forecasting?
Inventory management?
Production planning/control?
4- Process and Quality:
Continuous improvement processes?
Business process management
SPC/Six Sigma
5- Product and Service Design
Development process?
Organization/supplier roles?
Decisions Guided by the Structural Strategy:
1- Capacity:
Size?
Timing?
Type?
2- Facilities
Size?
Location?
3- Technology
Equipment?
Processes?
Information systems?
4- Vertical Integration?
- Direction?
- Extent?
Decisions Guided by the Infrastructural Strategy
- Organization
Control/reward systems?
Centralization/decentralization?
Workforce – skilled/semi-skilled?
- Sourcing and Purchasing
Supplier selection/performance metrics?
Procurement systems?
Sourcing strategy?
- Planning and Control
Forecasting?
Inventory management?
Production planning/control?
- Process and Quality
Continuous improvement processes?
Business process management
SPC/Six Sigma
- Product and Service Design
Development process?
Organization/supplier roles?
The Lean Concept In Supply Management
By Charles Dominick
What Is Leeann && Why Should Purchase Care??
The term “Lean” (as in Lean Manufacturing) is used liberally in business today. It’s made many of us curious. Next Level Purchasing’s president Charles Dominick, C.P.M. recently interviewed Chuck Yorke to demystify Lean. Mr. Yorke is the president of Management Advisory Services and can be contacted at (248) 790-8816 or chuckyorke@yahoo.com.
CD: What exactly are the principles behind Lean?
CY: The principle is simple: Lean is the elimination of waste in all forms. What we call Lean started with the Toyota Production System identifying seven wastes: Overproduction, Inventory, Waiting, Transportation, Extra Processing, Motion, and Defects. Some have identified more wastes. Waste is an activity that doesn’t add customer-perceived value to the product/service.
CD: How can Lean principles be applied to purchasing and supply management?
CY: There are three flows within companies – material (product, materials, service) flow, information flow, and cash flow. There needs to be accurate information flowing through the supply chain so the material flows smoothly. Mapping a process such as purchasing can identify wastes to be reduced or eliminated – how far do we walk to locate a supplier file, do we collect too much information or misinformation, how long does an order wait for approval, etc.
CD: This decade’s "Lean" seems pretty darn similar to "Business Process Reengineering" of the '90's. How are they distinct? Does excitement about Lean show how new one is to process improvement?
CY: Reengineering looks at improving processes, Lean focuses on removing waste. To experienced process improvers, sure, removing waste has always been part of the job.
CD: I've seen a vendor who preached Lean but had industry-worst quality. Are there any controls built into the Lean methodology to prevent sacrificing quality for efficiency?
Interview Continue……
CY: Sorry, but that supplier may have talked Lean but they didn’t live and breathe it. Some companies implement a Lean tool or two but do not understand the concept. Bad quality is a defect and that is a waste that needs to be eliminated, not passed on to an internal or external customer. Employees need to be engaged in finding and fixing problems, creating a Poka-yoke (mistake-proofing) mechanism to prevent the mistake from occurring again or to make it obvious so the problem is not passed along.
Spotlight on professional development opportunities
If you are new to purchasing, are you ready for the many challenges you'll face in the months ahead? Next Level Purchasing, Inc.’s latest online class, “Mastering Purchasing Fundamentals,” walks you through the purchasing process step-by-step. You'll be ready for these challenges. And you won't need the years of experience usually required to learn how to deal with these challenges. You'll get more than just an introduction to purchasing - you will become an expert at flawlessly executing and managing purchases.
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