Operations Management and Supply Chain Management

Operations Management (OPM)

OPM focuses on managing resources to produce and deliver products and services efficiently and effectively. It encompasses the design and management of products, processes, and services, including sourcing, production, distribution, and after-sales. This involves the design, operation, and improvement of systems that create and deliver a firm's primary products and services.

Supply Chain Management (SCM)

SCM is the cross-department and cross-enterprise integration and coordination of material, information, and financial flows. It aims to optimize supply chain resources throughout the entire value chain, from raw material suppliers to customers. SCM is a collaborative philosophy employing methods and tools to integrate and coordinate local logistics processes with production processes, focusing on overall value chain performance.

Transformation Process

The transformation process represents the traditional view of operations management in terms of planning activities. These activities can be categorized as:

• Physical (e.g., manufacturing)
• Location (e.g., transportation)
• Exchange (e.g., retailing)
• Storage (e.g., warehousing)
• Physiological (e.g., healthcare)
• Psychological (e.g., entertainment)
• Informational (e.g., telecommunications)

Key Principles in Operations Management

5. Minimal Machines

Proprietary machines are often designed for specific applications. However, using general multi-purpose machines with adapters can simplify usage and ease maintenance.

6. Respect for People

Employees are valuable assets with knowledge and skills. Treating them with respect and empowering them to utilize their capabilities is crucial.

7. Empowered Employees

Employees should have responsibilities and the authority to make decisions. For instance, they can halt production in emergencies, evaluate improvement ideas, and actively participate in quality control circles.

2. Just in Time (JIT)

JIT follows the Pull-System, where parts and modules are delivered to the workstation in the required quantity precisely when needed. This approach prevents the accumulation of unnecessary materials at the facility.