Key Concepts in Operations and Supply Chain
Supply Chain Management Explained
Supply Chain Management: A vital business function that coordinates all of the network links. It coordinates the movement of goods through the supply chain from suppliers to manufacturers to distributors. It promotes information sharing along the chain, such as forecasts, sales data, and promotions.
Understanding Operations Management
Operations Definition: The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company. Operations management transforms inputs into outputs.
Role of an Operations Manager
Functions of an Operations Manager: Operations managers are responsible for managing activities that are part of the production of goods and services. They are responsible for:
- Setting staff schedules
- Assigning work
- Ensuring that projects are completed on time and on budget
Make-to-Order (MTO) Strategy
Make-to-Order: A business production strategy that typically allows consumers to purchase products that are customized to their specifications. It is a manufacturing process in which the production of an item begins only after a confirmed customer order is received.
Make-to-Stock (MTS) Strategy
Make-to-Stock: A business production strategy which consists of manufacturing products for stock based on demand forecasts, which can be regarded as push-type production. MTS is required to prevent opportunity loss due to stockout and minimize excess inventory using accurate forecasts.
MTO vs MTS: Fast Food Examples
Difference between Subway, Burger King, and McDonald’s: Burger King allows customers to customize their orders with a slightly longer waiting time than other fast-food chains such as McDonald’s, which follows the make-to-stock strategy, manufacturing products based on demand forecasts. Burger King stores pre-cooked inventory, such as burger patties, in a container to keep them warm for a longer time. After the customer places an order, they perform the final assembly of the sub-components. Highly customizable fast-food chains such as Subway follow a make-to-order strategy, beginning production when the order is received and confirmed.
Defining Business Quality
Definition of Quality:
- Value for price paid: Comparison between the evaluation of usefulness and the price paid.
- Support services: The quality of the support after sale.
- Psychological: Ambiance, prestige, friendly staff.
ERP and CRM Systems
ERP and CRM:
- Enterprise Resource Planning (ERP): A process used by companies to manage and integrate the important parts of their businesses. ERP systems help them implement resource planning by integrating all of the processes needed to run their companies within a single system.
- Customer Relationship Management (CRM): A technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is to improve business relationships to grow your business. A CRM system helps companies stay connected to customers.
Machine-to-Machine (M2M) Basics
M2M: Two machines communicating or exchanging data without human interfacing or interaction. This includes serial connection, powerline connection, or wireless communications in the Industrial Internet of Things. It refers to a wireless or wired network setup that allows devices of the same type and ability to communicate freely.
Internet of Things (IoT) Explained
IoT: It refers to a system of interrelated, internet-connected objects that are able to collect and transfer data over a wireless network without human intervention. It can refer to a connected medical device, a biochip, or any object, outfitted with sensors, that has the ability to gather and transfer data over a network.
Personal Values: The Three Mountains
Juan Gil’s 3 Mountains Values: For him, there are 3 mountains. The first is generosity, which encompasses your personal values, family, beliefs, integrity, honesty, striving in life to improve and be less selfish and arrogant, and seeing how you improve daily with your values. The second would be work or studies, the second priority, always needing to be up-to-date, learning, studying, without losing sight of the previous values. The last is leisure, having leisure that will improve your motivation and the previous 2 mountains. This can be any type of hobby, such as sports or travel, depending on the person.