Operations Management and Supply Chain

Week Nine Weekly Questions


1. Define the term operations management (OM).


It is the management of systems or processes that convert or transform resources into goods and services.



2. Explain operations management’s role in business


 Operations management is responsible for managing the core process used to manufacture goods and produce services. 




3. Describe the correlation between operations management and information technology


Managers can use IT to heavily influence operations management decisions including productivity, costs, flexibility, quality and customer satisfaction. One of the greatest benefits of IT on OM is in making operational decisions because it heavily influences how the goals and objectives are set out. 




4. Explain supply chain management and its role in a business


A supply chain involves the management of information flows between and among stages in a supply chain to maximise total supply chain effectiveness and profitability. 



5. List and describe the five components of a typical supply chain


The five basic components of supply chain management are:

• Plan - this is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. 
• Source - companies must carefully choose reliable suppliers that will deliver goods and services that are needed in making products. 
• Make - companies manufacture their products or services, can include scheduling the activities necessary for production, testing, packaging and preparing for delivery. 
• Deliver - also known as logistics, it is the set of processes that plans for and controls the efficient and effective transportation and storage supplies from suppliers to consumers. 
• Return - most commonly the most pragmatic step, companies must create network for receiving defective and excess products and support customers who have problems with delivered products. 

6. Define the relationship between information technology and the supply chain.


Technology advances in the five supply chain management components have significantly improved companies forecasting and business operations. Businesses today have access to modelling and simulation tools, algorithms and applications that can combine information from multiple sources to build forecasts for days, weeks and months in advance.