Operations Management

Operations Chapter One Creating Customer Value Pages 1 - 24

Managing operations

Creating customer value through the effective and efficient management of process that provide goods and services that people use every day

Supply Chain Management

Synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand

Processes must be created for each of step of the customer experience at an affordable price

Process

Activity or group of activities that transforms and adds value to one or more inputs, and generates one or more outputs for its customers

Two main types of process in supply chain

Core Processes

Set of activities that delivers value to external customers

Examples: hotel’s reservation handling, a new car design for an auto manufacturer

Four core process

Supplier relationship process

Order fulfillment process

Customer relationship process

New service or product development process

Support Process

provides vital resources and inputs to the core processes

Examples : accounting, budgeting, recruiting

Customers

External customers

Purchase firm’s products or services

End users or intermediaries

Manufacturers; Wholesalers; Retailers

Internal customers

One or more employees who use outputs from earlier, upstream processes to perform processes in the next office, shop or department

Nested Process

Concept of a process within a process

Processes can be broken down into sub processes

One person or department may be unable to perform all parts of the process

Operating