comm 341- class1
TRANSCRIPT
INTRODUCTION TO OPERATIONS AND SUPPLY CHAIN MANAGEMENT
FALL 2010KEITH ROGERS
Commerce 341 Operations Management
04/11/2023
2
Agenda
Introductions WhatisSCM DellsuccessStory Shortdiscussion Outline,deliverables&grading Keyideasreview Nextclass
WhatisSupplyChainManagement3
Professor:KeithRogers
Office:GoodesHall227
AdminSupport:JaneO’Donnell(Goodes224)
OfficeHours:Thursday11:00–12:00
(orbyappointment)
OnePotentialDefinitionofSCM4
Asupplychainisanetworkoforganizationsthatprocureandtransforminputsintointermediateandfinalgoodsandservices.
SCMinthedisciplinethataddresseshowasupplychaincanprovidethegreatestvaluebyperformingactivitiesefficientlyandeffectively.
WhatisSupplyChainManagement5
WhatSCMisnot...6
Appliedmathematicsorstatistics. Organizationalbehavior,strategyormarketing. Informationsystems,negotiationorlaw. Humanresources,accountingorfinance.
ButSCMdrawsonandimpactsallofthem.
SCMCase:DellComputers7
Canyouthinkoffourcomputermanufacturers?
SCMCase:DellComputers8
0
10
20
30
40
50
60
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Combined HP and Dell
Dell
HPQ
QuickFinanceQuestion9
Whatwastheapproximatereturnontheseinvestments?
HPwasanawesome28%peryear.
Dellwasaninsane159%peryear.
HP DellJan-96 13.21 1.03Jan-00 35.96 46.19
SCMCase:DellComputers10
In1996,DellcapitalizedonthegrowingnumberofcustomerswhoareusingtheInternetandlauncheditsonlinestoreatdell.com.TheonlineventurethenprovedtobethemostappropriatesaleschannelthatmatchedthesupplychaindirectmodelimplementedbyDell.
Initspathtocompeteinthemarket,DellhadtoprovideadditionalservicessuchasDellPlusthatenabledDelltoinstallcommercialsoftwarepackages,DellWarewhichprovidedhardwareandsoftwarefromothervendors,andaftersalesandon-sitesupportservices.Theseactions,asdescribedbyMichaelDell,requiredestablishingmorepartnerships,whichMr.Delldescribesasaprocessof"trialanderror".Theintegrationwithpartnerswaschangingasthetechnologyisevolvingandmanyvendersgovolatilewhileothersremainsold.Furthermore,lookingforanITcompanytobuildtheonlinestorebroughtinveryfewplayers,whichmadeDellaccepttheoverheadofdevelopingtheportalin-house.
http://ezinearticles.com/?Dell-Online-(Case-Study)&id=1371240
SCMCase:DellComputers11
Isitreallythatdifficultforyouoryourcompetitorstosetupawebsitetosellproductsthroughinternet?
1 week
SCMCase:DellComputers12
WhatwasinvolvedinDell’ssuccess?13
OnePotentialDefinitionofSCM14
Asupplychainisanetworkoforganizationsthatprocureandtransforminputsintointermediateandfinalgoodsandservices.
SCMinthemanagerialdisciplinethataddresseshowasupplychaincandeliverthegreatestvaluebyperformingactivitiesefficientlyandeffectively.
DellExample:NetworkofOrganizations15
Dellmanagesanetworkoforganizations:- Dellisintegratedwithmanysuppliers.- Informationsystemssupportforecasting,planningandscheduling.- Weballowslowcostorderprocessinganddemandshaping.- Justintime(JIT)manufacturingprocessesminimizesinventory.
DellExample:Transformation16
Dellisinvolvedin5typesoftransformation:- Physical(manufacturing)- Location(transportation)- Exchange(buying&selling)- Storage(maintaininginventory)- Informational(informingcustomers)
Dellisnotinvolvedinthe6thtype,physiologicalwhichrelatestothefunctioningoflivingthingsasinprovidinghealthcare.
DellExample:GoodsandServices17
Dellisknownforproducinggoodsnotservices,though,actually,allthereisacontinuum:
Aside:
-Whataresomeexamplesofservices?
-Whatdifferentiatesservicesfromgoods?
Pure Good – Core Good – Core Service – Pure Service
DellExample:GoodsandServices18
Servicesdifferfromgoodsintermsof:1. Intangibility–maynotphysicallyexistatall.
2. Highercustomerinteractioninproduction.
3. Highervariabilityinproductiondependingoncustomerneeds.
4. Higherperishableandmaybecompletelytimedependent.
5. Productspecificationisoftendefinedintermsof5senses.
Value,EfficiencyandEffectiveness19
Dellissuccessfulbecauseitcreatesmorecustomervalue.Todosoitmustbemindfulofefficiencyandeffectiveness.- Efficiency–doingthingswithless.- Effectiveness–doingtherightthings.- Value–gettingmoreoutputforlessinput.
Value = Quality / Resources
Outline,deliverables&grading20
Pleaserefertotheoutlinefordetailsontheschedule
Iwanttohighlightafewchanges:- Innovativedeliverymethod- Casedeliverablesinteamsoftwo- Casecompetitioninteamsoffive
GradeBreakdown21
CaseMemos(Teamof2)
10%Case1:HuxleyMaquiladoraCase(Due:October15th)
10%Case2:DelaysatLoganAirport(Due:November5th)
CaseCompetition(November27thand28th)
10%Memo
15%Presentation
Individual
40%FinalExam
15%Participation
NameCards
Name cardsEach of you has (or will soon have) a name card.On the back is a place for a summary of what you
thought the main idea was and a question or something you would like to have clarified.
Please fill this out and return it to me each class.Each class you must write something on the card.
This can be a question or a comment regarding what you thought the main point was or something that might improve the class such as an insight, example or suggestion.
22
KeyIdeasReview
- SCM as a combination of transformational processes:
Physical Informational ExchangeStorage Physiological Location
- Effectiveness, efficiency and value- Continuum of goods vs. services
Pure Good – Core Good – Core Service – Pure Service- Characteristics of goods vs. Services
Physical vs. IntangibleLow vs. high Customer InteractionHomogeneous vs. HeterogeneousPerishable vs. StorablePackage of features affecting 5 senses
23
ForNextClass
1. Read chapter 1 and 22. Review the boat building instructions on the course
portal, consider attempting to build a boat.
24