Description

Go through the given case scenario

Choose an organization operating in any part of the globe (preferably a super market, hyper market chain (or) a fast-food industry or an electronics equipment manufacturer/distributor, automobile manufacturer or automotive parts or retail products / services.

The organization that you choose should either manufacture or market or distribute some products / services. The competition in these businesses majorly depends upon price, quality, timely delivery and service (which are core aspects of Supply Chain Management). Hence there is immense pressure on all the organizations in these businesses to keep the four aspects mentioned to their supreme best.

As these businesses are the most emerged industries in the recent past, the supply chain has seen huge transformations. These businesses are getting to the maturing stage and so as the transformations in the supply chain management of these business become more and more competitive, the customer gets only the best products / service.

Note: In case your chosen organization is operating in many countries and deals with many products, it is enough you consider the operations in any one country and indicate some materials that are part of the business and select 2 or 3 materials out of them for providing answers to the questions given below.

Students can make use of graphs, tables, illustrations, maps, pictures, images to add clarity to your answers.

1. Examine and evaluate your chosen organization’s Supply Chain, describe its basic working, strategy used by them, key drivers for achieving an integrated supply chain. What is the SCM model used?(2MM)

2. Go through the typical Working of the chosen Organization’s logistics process, Is there a role for reverse logistics for your chosen organization’s products / services ? If there is a role, explain the process that is applicable.(2MM)

3. Analyse and understand the different modes of transportation employed by your chosen organization. Indicate whether the current arrangements are effective. Suggest improvements for making the transportation sustainable and new modes of transportation.(2MM)

4. What is the Warehouse design used by the chosen organization and provide your idea on the appropriate warehouse design that will be suitable for the future. Justify your choice with proper reason.(2MM)

5. Given the nature of the products that you have selected for your chosen organization, what is the type of Inventory management control that your chosen organization should adopt? Give reasons.(2MM)

Unformatted Attachment Preview

Chapter 1:
Introduction to Operations
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.
Chapter 1 Learning Objectives
•LO 1.1 Define operations and supply chain management.
•LO 1.2 Review the role of operations in the firm and the economy.
•LO 1.3 Describe the five main decisions made by operations and supply chain
managers.
•LO 1.4 Explain the nature of cross-functional decision making with operations.
•LO 1.5 Describe typical inputs and outputs of an operations transformation
system.
•LO 1.6 Analyze trends in operations and supply chain management.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-2
Definition of Operations Management
Operations management
focuses on decisions for the
internal production of the
firm’s products or services. ‫إدارة‬
‫العمليات يركز على قرارات اإلنتاج الداخلي منتجات‬
.‫الشركة أو خدماتها‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-3
A Typical Supply Chain (Figure 1.1)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-4
Operations and Supply Chain Management
Deals with the sourcing,
production, and distribution of the
product or service along with
managing the relationships with
supply chain partners. ‫يتعامل مع‬
‫مصادر وإنتاج وتوزيع المنتج أو الخدمة جنبا إلى‬
.‫جنب مع إدارة العالقات مع شركاء سلسلة التوريد‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-5
Importance of
Operations and Supply Chain
Providing the products
and services that we
use and enjoy ‫تقديم‬
‫المنتجات والخدمات التي‬
‫نستخدمها ونستمتع بها‬
Sustaining our way of life
while working to protect
the planet ‫الحفاظ على أسلوب‬
‫حياتنا مع العمل على حماية الكوكب‬
Constantly improving
both productivity and
innovation ‫تحسين اإلنتاجية‬
‫واالبتكار باستمرار‬
Creating revenue from
products & services to
drive firm profitability ‫خلق‬
‫إيرادات من المنتجات والخدمات لدفع‬
‫ربحية الشركة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-6
Role of Operations in the Economy
Gross Domestic Product (GDP) – monetary value of all goods
and services produced in a country. ‫ القيمة النقدية‬- ‫الناتج المحلي اإلجمالي‬
.‫لجميع السلع والخدمات المنتجة في بلد ما‬
Productivity – value of goods/services output, relative to input.
.‫ بالنسبة للمدخالت‬،‫الخدمات‬/‫ قيمة ناتج السلع‬- ‫اإلنتاجية‬
Productivity =
output
capital + labor
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-7
Productivity Example
A retail (quick) clinic has the following output (revenue) and labor expenses.
.‫تحتوي عيادة البيع بالتجزئة (السريعة) على الناتج التالي (اإليرادات) ونفقات العمالة‬
Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)
)‫ إلى السنة الثانية؟ (افترض التكاليف الرأسمالية المكافئة‬1 ‫هل تحسن اإلنتاجية من السنة‬
Output (revenue) $thousands
Labor $thousands
Year 1
Year 2
Annual
Inflation
$842
$280
$883
$292
2%
4%
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-8
Productivity Example – Solution
A retail (quick) clinic has the following output (revenue) and labor expenses.
Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)
Productivity year 1 = Output year 1 = 842 = 3.01
Labor year 1
280
Productivity year 2 = Output year 2 = 883(.98) = 3.09
Labor year 2
292(.96)
Change in productivity = 3.09 = 1.027 which is a 2.7% increase
3.01
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-9
Why Study Operations Management?
Challenging and interesting career
opportunities – domestic,
international – ‫فرص وظيفية صعبة ومثيرة لالهتمام‬
‫محلية ودولية‬
Cross-functional nature of decisions
– what every major needs to know ‫الطبيعة‬
‫الوظيفية المشتركة للقرارات – ما يحتاج كل رئيس إلى‬
‫معرفته‬
Principles of process thinking can be
applied across the organization ‫يمكن‬
ammentorp/123RF
‫تطبيق مبادئ التفكير العملية في جميع أنحاء المنظمة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-10
Careers in
Operations and Supply Chain Management
Supply Chain Analyst ‫محلل سلسلة التوريد‬
Supply Chain Analytics ‫تحليالت سلسلة‬
‫التوريد‬
Plant Lead on Sustainability ‫الرصاص‬
‫النباتي على االستدامة‬
Sourcing Specialist‫أخصائي مصادر‬
Global Sourcing Analyst ‫محلل مصادر‬
‫عالمية‬
NetPics/Alamy Stock Photo
Transportation Planner ‫مخطط النقل‬
Risk Consultant ‫استشاري المخاطر‬
Customs Specialist‫أخصائي الجمارك‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-11
3 Aspects of
Operations and Supply Chain Management
Decisions:
The operations manager must decide::‫يجب أن يقرر مدير العمليات‬
• Process, quality, capacity, inventory, and supply chain ‫العملية والجودة والقدرة والمخزون وسلسلة التوريد‬
Function: :‫دالة‬
Major functional areas in organizations: :‫المجاالت الوظيفية الرئيسية في المنظمات‬
• Operations, marketing, finance ‫العمليات والتسويق والتمويل‬
Process: :‫عملية‬
Planning and controlling the transformation process and its interfaces
(internal/external))‫تخطيط ومراقبة عملية التحول وواجهاتها (الداخلية والخارجية‬
Expansion of these points follows on the next slides.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-12
Let’s Manage Operations at Pizza USA!
Steve Mason/Getty Images
Managing operations
is about making decisions.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-13
Major Decisions at Pizza USA
Process
◦ How should we produce pizzas?
Quality
◦ How do we meet quality standards and ensure a good customer experience?
Capacity
◦ How much output do we need at various times?
Inventory
◦ Which ingredients, when & how much?
Supply Chain
◦ How to source inputs and manage logistics?
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-14
Framework for Operations Decisions (Figure 1.2)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-15
Cross-Functional Decision Making
Operations is critical in every firm.
.‫العمليات أمر بالغ األهمية في كل شركة‬
Marketing = create demand ‫التسويق = إنشاء الطلب‬
Operations = produce and distribute goods and services ‫العمليات = إنتاج وتوزيع السلع‬
‫والخدمات‬
Finance = acquire and allocate capital ‫التمويل = الحصول على رأس المال وتخصيصه‬
Supporting functions: human resources, information systems, accounting ‫الوظائف‬
‫ والمحاسبة‬،‫ ونظم المعلومات‬،‫ الموارد البشرية‬:‫الداعمة‬
Cross-functional decision making – see Table 1.2
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-16
Operations as a Process‫العمليات كعملية‬
Inputs
Transformation
(Conversion)
Process
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
Outputs
1-17
Operations as a Process (Figure 1.3)
Energy
Materials
Labor
Capital
Information
Transformation
(Conversion)
Process
Goods or
Services
Feedback information for
control of process inputs
and process technology ‫معلومات المالحظات ل‬
‫التحكم في مدخالت العملية وتكنولوجيا المعالجة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-18
Transformation Process Examples (Table 1.3)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-19
Trends in
Operations and Supply Chain Management
▪ Sustainability – triple bottom line‫االستدامة – الحد األدنى الثالثي‬
▪ Services ‫الخدمات‬
▪ Digital Technologies ‫التقنيات الرقمية‬
▪ Integration of Decisions Internally and Externally
‫تكامل القرارات داخليا وخارجيا‬
▪ Globalization of Operations and the Supply Chain ‫عولمة‬
‫العمليات وسلسلة التوريد‬
StreetVJ/Shutterstock
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-20
Chapter 1 Summary
•LO 1.1 Define operations and supply chain management.
•LO 1.2 Review the role of operations in the firm and the economy.
•LO 1.3 Describe the five main decisions made by operations and supply chain
managers.
•LO 1.4 Explain the nature of cross-functional decision making with operations.
•LO 1.5 Describe typical inputs and outputs of an operations transformation
system.
•LO 1.6 Analyze trends in operations and supply chain management.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-21
Questions for Discussion
•What do you hope to learn in this course?
•Review the operations and supply chain trends on slide 1-20. Which of
these is most interesting to you and why?
•What production systems have you seen in person? How do they
produce the intended product or service?
•Describe a transformation process that you recently experienced. Think
about a medical or dental clinic visit, or a restaurant visit.
•Why are global factors important in operations and supply chain?
•How is operations and supply chain related to environmental
responsibility?
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
1-22
Chapter 18:
Logistics
McGraw-Hill Education
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-1
Chapter 18 Learning Objectives
▪ LO 18.1 Define the scope and purpose of logistics.
▪ LO 18.2 Explain transportation economics.
▪ LO 18.3 Compare the advantages and disadvantages of the five
modes of transportation.
▪ LO 18.4 Distinguish among the different functions of warehouses.
▪ LO 18.5 Describe how to determine the number and location of
warehouses.
▪ LO 18.6 Consider when a firm should use a third-party logistics
provider.
▪ LO 18.7 Define logistics strategy and explain why it is needed.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-2
Logistics Definition
Plans, implements, and controls the efficient, effective forward
and reverse flows and storage of goods and related information
between the point of origin and consumption in order to meet
customer requirements. ‫خطط وتنفيذ ومراقبة التدفق الفعال والفاعل لألمام‬
‫وللعكس وتخزين السلع والمعلومات ذات الصلة بين نقطة المنشأ واالستهالك من أجل تلبية‬
.‫متطلبات العمالء‬
Includes:
◦ Inbound to firm ‫واردة إلى شركة‬
◦ Outbound from firm ‫صادرة من شركة‬
◦ Warehousing (storage) )‫التخزين (التخزين‬
◦ Network design ‫تصميم الشبكة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-3
Importance of Logistics
Boundary spanning activities
▪ Strategic decisions linking marketing and operations ‫القرارات االستراتيجية التي تربط‬
‫التسويق والعمليات‬
▪ Operational decisions defining “place” and movement of goods ‫القرارات التشغيلية التي‬
‫تحدد “مكان” وحركة البضائع‬
▪ Integration with other functions ‫التكامل مع وظائف أخرى‬
◦ Marketing to fulfill customer demand ‫التسويق لتلبية طلب العمالء‬
◦ Information systems to link firm to suppliers and customers ‫نظم المعلومات لربط الشركة بالموردين‬
‫والعمالء‬
◦ Finance for large investments in inventory, warehousing ‫تمويل االستثمارات الكبيرة في المخزون‬
‫والتخزين‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-4
Critical Logistics Decisions‫القرارات اللوجستية الحرجة‬
❑ What modes of transportation to use?‫ما هي وسائل النقل الستخدامها؟‬
❑ What types of warehousing to use? ‫ما هي أنواع التخزين التي يجب‬
‫استخدامها؟‬
❑ Where should factories and warehouses be located? ‫أين يجب أن‬
‫توجد المصانع والمستودعات؟‬
❑ Should logistics be outsourced to third-party provider (3PL)?
3( ‫هل ينبغي االستعانة بمصادر خارجية للخدمات اللوجستية لمزود طرف ثالث‬PL) ‫؟‬
❑ What is the strategic role of logistics in creating and supporting
competitive advantage? ‫ما هو الدور االستراتيجي للخدمات‬
‫اللوجستية في خلق ودعم الميزة التنافسية؟‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-5
Transportation Economics‫اقتصاديات النقل‬
Economies of scale ‫وفورات‬
‫الحجم‬
Economies of distance
Economies of speed ‫وفورات‬
‫وفورات المسافة‬
‫السرعة‬
◦ Larger shipments cost less
per pound (than smaller)
‫الشحنات األكبر تكلف أقل للرطل‬
)‫الواحد (من األصغر‬
◦ Longer distances cost less
◦ Regular shipping costs less
per pound (than shorter)
per mile (than expedited)
‫مسافات أطول تكلفة أقل للرطل‬
‫تكاليف الشحن العادية أقل لكل ميل‬
)‫الواحد (من أقصر‬
)‫(من المعجل‬
◦ Full truckloads cost less
per pound (than partial)
‫حمولة الشاحنة الكاملة أقل لكل‬
)‫رطل (من جزئي‬
◦ Longer distances cost less
◦ Regular shipping costs less
per mile (than shorter)
‫مسافات أطول تكلف أقل لكل ميل‬
)‫(من أقصر‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
per pound (than expedited)
‫تكاليف الشحن العادية أقل لكل رطل‬
)‫(من المعجل‬
18-6
Transportation Economics Example
A company has three shipments of 10,000 pounds each going from different nearby
cities to one retail store. The carrier charges $10 per hundredweight (cwt).
If the shipments are consolidated into one truck, the carrier will take the 30,000
pounds for $7 per cwt, but charges $300 each for the two extra stops.
Should the company consolidate the three shipments?
Cost to ship separately in three trucks is:
Cost = 10,000 ($10/100 pounds)*(3 shipments) = $1,000 * 3 = $3,000
Cost to consolidate the three shipments is:
Cost = 30,000 ($7/100 pounds) + $300*(2) = $2,100 + $600 = $2,700
Consolidating the shipments costs less.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-7
Transportation Modes
Trucks
Air
Rail
Pipeline
Water


Ocean
Inland
Multimodal
Drones??
Intermodal
mipan/123RF
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
8
Mode Use in U.S. (Figure 18.1)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
9
Transportation Decisions (Table 18.1)
Mode
Advantages
Disadvantages
Truck
Can move freight quickly over long
distances. Very flexible on locations.
Easily linked with rail or air.
More expensive for heavy
and bulky freight than
other modes.
Rail
Relatively inexpensive for long
distances. Can be linked with truck or
ocean freight.
Relatively slow.
Water (inland)
Low cost for moving bulk commodities. Subject to proximity of
Effective when linked to multimode.
waterway locations.
Relatively slow.
Water (ocean)
Cost-effective way to ship freight in
containers over long distances.
Very slow.
Air
Fast way to move freight. Flexible
when linked to trucks.
Very expensive.
Pipeline
Can move bulk commodities (oil, gas,
and chemicals) for long distances.
Expensive to install.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-10
Distribution Centers and Warehousing ‫مراكز‬
‫التوزيع والتخزين‬
Consolidation‫توطيد‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-11
Distribution Centers and Warehousing ‫مراكز‬
‫التوزيع والتخزين‬
Break-bulk‫كسر السائبة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-12
Distribution Centers and Warehousing
Cross-docking‫عبر االلتحام‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-13
Other Purposes of
Distribution Centers and Warehousing
‫أغراض أخرى من‬
‫مراكز التوزيع والتخزين‬
➢ Managing seasonal demand‫إدارة الطلب الموسمي‬
➢ Supporting manufacturing ‫دعم التصنيع‬
Incoming raw materials ‫المواد الخام الواردة‬
Outgoing finished goods‫السلع المنتهية المنتهية واليته‬
➢ Providing value-added services‫تقديم خدمات ذات قيمة مضافة‬
➢ Handling reverse logistics‫معالجة الخدمات اللوجستية العكسية‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-14
Logistics Networks – Location factors
‫ عوامل‬- ‫الشبكات اللوجستية‬
‫الموقع‬
• Labor availability ‫توافر العمالة‬
• Government incentives‫الحوافز الحكومية‬
• Cost of labor‫تكلفة العمالة‬
• Government regulations ‫اللوائح الحكومية‬
• Cost of construction and
maintenance ‫تكلفة البناء والصيانة‬
• Delivery time to customer ‫وقت التسليم إلى‬
‫العميل‬
• Cost of transportation‫تكلفة النقل‬
• Proximity to suppliers‫القرب من الموردين‬
• Taxes‫ضرائب‬
• Highway and rail availability ‫توفر الطرق‬
‫السريعة والسكك الحديدية‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-15
Logistics Network
‫شبكة‬
‫اللوجستيات‬
(Figure 18.3)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-16
Center of Gravity Analytics
‫مركز تحليالت الجاذبية‬
▪ First approximation to locate warehouses based on transportation
costs and distances. ‫التقريب األول لتحديد موقع المستودعات على أساس تكاليف‬
.‫النقل والمسافات‬
▪ Model calculates the center-of-gravity based on the distances from
warehouses to customers. ‫يقوم النموذج بحساب مركز الجاذبية استنادا إلى‬
.‫المسافات من المستودعات إلى العمالء‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-17
Center of Gravity – Example
Customer
X coordinate
Y Coordinate
Demand (lbs)
A
10
10
5000
B
20
25
7500
C
25
35
6000
XCG = 10(5000) + 20(7500) + 25(6000) = 18.9
5000 + 7500 + 6000
YCG = 10(5000) + 25(7500) + 35(6000) = 24.2
5000 + 7500 + 6000
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-18
Center of Gravity – Example
40
35
C
30
The center of gravity is
a logical location for a
warehouse to serve
Customers A, B, and C.
Center of
gravity
25
B
20
15
10
A
5
0
0
5
10
15
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
20
25
30
19
Number of Warehouses (Figure 18.4)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-20
Global Logistics
‫الخدمات اللوجستية العالمية‬
▪ Complex transportation, usually
multimodal ‫ عادة متعدد‬،‫النقل المعقد‬
‫الوسائط‬
▪ Complex information transfer:
exporters, importers, freight
forwarders, clearing agents, ocean
shipping lines, freight companies,
intermodal operators, banks, and
insurance companies ‫نقل المعلومات‬
‫ المصدرون والمستوردون ووكالء‬:‫المعقدة‬
‫الشحن ووكالء المقاصة وخطوط الشحن‬
‫البحري وشركات الشحن ومشغلو النقل المتعدد‬
‫الوسائط والبنوك وشركات التأمين‬
ilfede/123RF
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
21
Global Logistics
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
22
Third-Party Logistics (3PL)
‫الخدمات اللوجستية لجهات‬
3( ‫خارجية‬PL)
• Transportation services‫خدمات النقل‬
• Warehousing services‫خدمات التخزين‬
• Inventory management services‫خدمات إدارة المخزون‬
• Reverse logistics services ‫الخدمات اللوجستية العكسية‬
• Access to logistics expertise ‫الحصول على الخبرات‬
‫اللوجستية‬
Ryder is a major player in 3PL to more
than 50,000 business customers, using
their 5900 technicians, 7700 drivers, and
800 facilities.
Ryder is a 3PL provider to Cisco, helping
them keep their warranty promise on 1.5
million parts every year.
• Enhanced flexibility to changing
markets/technology ‫مرونة معززة لتغيير‬
‫التكنولوجيا‬/‫األسواق‬
• Lower cost than insourcing‫تكلفة أقل من الموارد‬
• Humanitarian aid ‫المساعدات اإلنسانية‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
John Crowe/Alamy Stock Photo
18-23
Logistics Strategy
Determine objectives ‫تحديد األهداف‬
◦ Cost, delivery, service quality, flexibility ،‫ التوصيل‬،‫التكلفة‬
‫ المرونة‬،‫جودة الخدمة‬
Ownership vs. outsourcing logistics function ‫الملكية مقابل‬
‫االستعانة بمصادر خارجية وظيفة اللوجستية‬
Transportation modes ‫وسائط النقل‬
Warehousing network ‫شبكة التخزين‬
◦ Number and location of facilities‫عدد المرافق وموقعها‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-24
Chapter 18 Summary
▪ LO 18.1 Define the scope and purpose of logistics.
▪ LO 18.2 Explain transportation economics.
▪ LO 18.3 Compare the advantages and disadvantages of the five
modes of transportation.
▪ LO 18.4 Distinguish among the different functions of warehouses.
▪ LO 18.5 Describe how to determine the number and location of
warehouses.
▪ LO 18.6 Consider when a firm should use a third-party logistics
provider.
▪ LO 18.7 Define logistics strategy and explain why it is needed.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
18-25
Questions for Discussion
•Describe different types of logistics that you have personally
observed. Where did you see them? What were they doing?
•How does a firm choose its modes of transportation to move its
goods?
•When would a firm use these various types of warehouses:
consolidation, break-bulk, cross-docking?
•When is reverse logistics used? How does it work?
•In your own words, what is a logistics network?
•Beyond knowing the ‘center of gravity’ in a network, what other
factors should be considered when choosing a warehouse location?
•What types of services are carried out by third-party logistics (3PL)
providers?
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS
RESERVED.
26
Chapter 2:
Operations and Supply Chain
Strategy
McGraw-Hill Education
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
Chapter 2 Learning Objectives
▪LO 2.1 Define operations strategy.
▪LO 2.2 Describe the elements of operations strategy and alignment with business
and other functional strategies.
▪LO 2.3 Differentiate the ways to compete with operations objectives.
▪LO 2.4 Compare product imitator and innovator strategies.
▪LO 2.5 Explain the nature of global operations and supply chains.
▪LO 2.6 Analyze two types of supply chain strategies.
▪LO 2.7 Illustrate how operations and supply chain can become more sustainable.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-2
Operations Strategy
“A consistent pattern of business decisions for operations and the
associated supply chain … ‫”نمط ثابت من القرارات التجارية للعمليات وسلسلة‬
… ‫التوريد المرتبطة بها‬
… that are linked to the business strategy and other functional
strategies, leading to a competitive advantage for the firm.” …
‫ مما يؤدي إلى ميزة‬،‫ترتبط باستراتيجية األعمال واالستراتيجيات الوظيفية األخرى‬
.”‫تنافسية للشركة‬
The operations strategy at Southwest Airlines includes
using only one type of airplane. ‫تتضمن استراتيجية العمليات في‬
.‫شركة ساوث ويست إيرالينز استخدام نوع واحد فقط من الطائرات‬
This lowers staff training and maintenance costs, and
reduces on hand spare parts. ‫وهذا يخفض تكاليف تدريب الموظفين‬
.‫ ويقلل من قطع الغيار اليدوية‬،‫وصيانتها‬
Markus Mainka/123RF
These decisions support the business strategy of being a
low cost carrier. ‫وتدعم هذه القرارات استراتيجية األعمال التجارية المتمثلة‬
.‫في كونها ناقال منخفض التكلفة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-3
Operations
Strategy
Process (Figure 2.1)
Corporate strategy
Business strategy
Operations Strategy
Internal
analysis
Mission
Objectives: (cost, quality,
delivery, flexibility, sustainability)
External
analysis
Strategic Decisions: (process,
quality, capacity, inventory, supply chain)
Functional strategies in
marketing,
finance,
engineering,
human resources,
and
information systems
Distinctive
Competence
Consistent pattern of decisions
Results
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-4
Operations Strategic Objectives
Cost – resources used‫التكلفة – الموارد المستخدمة‬
Quality – conformance to customer expectations ‫الجودة – مطابقة‬
‫لتوقعات العمالء‬
Delivery – quickly and on time ‫التسليم – بسرعة وفي الوقت المحدد‬
Flexibility – ability to rapidly change operations ‫المرونة – القدرة على‬
‫تغيير العمليات بسرعة‬
Sustainability – environmental, social, economic ‫االستدامة – البيئية‬
‫واالجتماعية واالقتصادية‬
How do firms use
these objectives to
gain competitive
advantage?
What trade-offs
exist among the
objectives?
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-5
Examples of Important
Strategic Decisions in Operations (Table 2.2)
Strategic Decision
Decision Type
Span of process
Process
Automation
Process flow
Job specialization
Strategic Choice
Make or buy
Hand/machine–made
Project, batch, line or continuous
High or low specialization
Quality
Approach
Training
Suppliers
Prevention or inspection
Technical or managerial training
Selected on quality or cost
Capacity
Facility size
Location
Investment
One large or several small facilities
Near markets, low cost or foreign
Permanent or temporary
Inventory
Amount
Distribution
Control Systems
High or low levels of inventory
Centralized or decentralized warehouse
Control in greater or less detail
Supply Chain
Sourcing
Logistics
Insource or outsource products
National or global distribution
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-6
Distinctive Competence‫كفاءة مميزة‬
This operations capability is something an
organization does better than any competing
organization that adds value for the customer. ‫هذه‬
‫القدرة العمليات شيء مؤسسة يفعل أفضل من أي منظمة منافسة أن‬
.‫يضيف قيمة للعميل‬
Examples:
• patents, proprietary technology, operations
innovations ،‫ والتكنولوجيا الملكية‬،‫براءات االختراع‬
‫واالبتكارات العمليات‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-7
Linking Operations to Business Strategy ‫ربط‬
‫العمليات باستراتيجية األعمال‬
Business strategy alternatives ‫بدائل استراتيجية األعمال‬
◦ Product Imitator ‫مقلد المنتج‬
◦ Operations must focus on keeping costs low. .‫ويجب أن تركز العمليات على إبقاء التكاليف منخفضة‬
◦ Product Innovator ‫مبتكر المنتج‬
◦ Operations must maintain flexibility in processes, labor, and suppliers. ‫يجب أن تحافظ العمليات‬
.‫على المرونة في العمليات والعمالة والموردين‬
Customer perspective ‫منظور العميل‬
◦ Order Qualifier ‫ترتيب المؤهلين‬

Objective that must be delivered at an acceptable level for customer to consider
product/service. Can be an order loser if not met. ‫الهدف الذي يجب أن يتم تسليمه على مستوى مقبول‬
.‫ يمكن أن يكون خاسرا النظام إذا لم يتم الوفاء بها‬.‫ الخدمة‬/ ‫للعميل للنظر في المنتج‬
◦ Order Winner ‫الفائز باألمر‬

Objective that causes customer to choose a particular product/service. ‫الهدف الذي يؤدي إلى‬
.‫خدمة معينة‬/‫اختيار العميل لمنتج‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-8
Linking Operations to Business Strategy
◦ Product Imitator ‫مقلد المنتج‬
◦ Order Winner = price (low cost) )‫الفائز باألمر = السعر (تكلفة منخفضة‬
◦ Order Qualifiers = flexibility, quality, delivery ‫تصفيات الطلب = المرونة والجودة والتسليم مبتكر المنتج‬
◦ Product Innovator ‫مبتكر المنتج‬
◦ Order Winner = flexibility (rapid introduction of new products) ‫الفائز أمر = المرونة‬
)‫(إدخال سريع للمنتجات الجديدة‬
◦ Order Qualifiers = cost, delivery, quality ‫تصفيات الطلب = التكلفة والتسليم والجودة‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-9
Example:
McDonald’s Operations Strategy
Mission ‫مهمة‬
fast product/service, consistent quality, low cost, clean/friendly environment
‫ صديقة‬/ ‫ بيئة نظيفة‬، ‫ تكلفة منخفضة‬، ‫ جودة متسقة‬، ‫ خدمة‬/ ‫منتج سريع‬
Operations Objectives ‫أهداف العمليات‬
cost, quality, service ‫التكلفة والجودة والخدمة‬
Strategic Decisions ‫القرارات االستراتيجية‬
process, quality, capacity, inventory, supply chain ،‫ المخزون‬،‫ القدرة‬،‫ الجودة‬،‫العملية‬
‫سلسلة التوريد‬
Distinctive Competence ‫كفاءة مميزة‬
today: continuous improvement of the transformation system, and brand
(originally: unique service/supply chain) ‫ والعالمة‬، ‫ التحسين المستمر لنظام التحول‬: ‫اليوم‬
)‫ سلسلة التوريد‬/ ‫ خدمة فريدة من نوعها‬: ‫التجارية (في األصل‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-10
Characteristics of “Global Corporations” ‫خصائص‬
“‫”الشركات العالمية‬
✓ Facilities located worldwide, not country by country. ‫مرافق تقع في جميع أنحاء‬
.‫ وليس بلد بلد‬،‫العالم‬
✓ Products & services can be shifted among countries. ‫يمكن نقل المنتجات‬
.‫والخدمات بين البلدان‬
✓ Sourcing on a global basis. .‫المصادر على أساس عالمي‬
✓ Supply chain is global in nature. .‫سلسلة التوريد عالمية بطبيعتها‬
✓ Product design & process technology are global. ‫تصميم المنتجات وتكنولوجيا‬
.‫المعالجة عالمية‬
✓ Products/service fit global tastes. .‫ الخدمات تناسب األذواق العالمية‬/‫المنتجات‬
✓ Demand is considered on worldwide basis. .‫وينظر في الطلب على أساس عالمي‬
✓ Logistics & inventory control is on worldwide basis. ‫اللوجستية ومراقبة المخزون‬
.‫على أساس عالمي‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-11
Supply Chain Strategy‫استراتيجية سلسلة التوريد‬
To achieve competitive advantage for entire supply chain, rather
than individual entities. .‫ بدال من الكيانات الفردية‬،‫تحقيق ميزة تنافسية لسلسلة التوريد بأكملها‬
Two supply chain strategies: :‫استراتيجيتان لسلسلة التوريد‬
◦ Imitative Products (e.g. commodities) )‫المنتجات المقلدة (مثل السلع‬
◦ Predictable demand ‫الطلب المتوقع‬
◦ Efficient, low-cost supply chain ‫سلسلة توريد فعالة ومنخفضة التكلفة‬
◦ Innovative Products (e.g. new technologies) ‫المنتجات المبتكرة (مثل التقنيات‬
)‫الجديدة‬
◦ Unpredictable demand ‫طلب ال يمكن التنبؤ به‬
◦ Flexible, fast supply chain ‫سلسلة إمداد مرنة وسريعة‬
Firms design supply chain for each product/service or group of
products/services / ‫ خدمة أو مجموعة من المنتجات‬/ ‫الشركات تصميم سلسلة التوريد لكل منتج‬
‫الخدمات‬
◦ Avoid “one size fits all” strategy “‫تجنب إستراتيجية “مقاس واحد يناسب الجميع‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-12
Supply Chain Strategy (Table 2.4)
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-13
Sustainability is in Operations ‫االستدامة في العمليات‬
Operations Sustainability: :‫استدامة العمليات‬
* minimizing or eliminating environmental impact of operations ‫* تقليل أو القضاء على‬
‫األثر البيئي للعمليات‬
* social and financial viability of the firm for future generations ‫* الجدوى االجتماعية‬
‫والمالية للشركة لألجيال القادمة‬
Operations ‘greening’ may include: :”‫قد تتضمن عمليات “التخضير‬
◦ Curtailing air, water, landfill pollution ‫الحد من تلوث الهواء والماء ومدافن القمامة‬
◦ Reducing energy consumption ‫الحد من استهالك الطاقة‬
◦ Minimizing transportation and total carbon footprint ‫تقليل النقل وإجمالي البصمة‬
‫الكربونية‬
◦ Working with suppliers to use recyclable and biodegradable packaging ‫العمل مع‬
‫الموردين الستخدام التعبئة والتغليف القابلة إلعادة التدوير والتحلل الحيوي‬
◦ Incorporating product reuse, end-of-life return, recycling ،‫دمج إعادة استخدام المنتج‬
‫ إعادة التدوير‬،‫عودة نهاية العمر‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-14
TEA/123RF
British retailer Marks & Spencer has met goals to send zero waste to
landfills and is the first major retailer to be carbon neutral. ‫حققت متاجر التجزئة‬
‫البريطانية ماركس آند سبنسر أهدافا إلرسال صفر نفايات إلى مدافن القمامة وهي أول متاجر التجزئة‬
.‫الرئيسية التي تكون محايدة من حيث الكربون‬
Supply chain partners have been an important source of support for this
effort. .‫وكان شركاء سلسلة التوريد مصدرا هاما لدعم هذا الجهد‬
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
Chapter 2 Summary
▪LO 2.1 Define operations strategy.
▪LO 2.2 Describe the elements of operations strategy and alignment with business
and other functional strategies.
▪LO 2.3 Differentiate the ways to compete with operations objectives.
▪LO 2.4 Compare product imitator and innovator strategies.
▪LO 2.5 Explain the nature of global operations and supply chains.
▪LO 2.6 Analyze two types of supply chain strategies.
▪LO 2.7 Illustrate how operations and supply chain can become more sustainable.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-16
Questions for Discussion
•Describe operations strategy in your own words.
•What is the relationship between a firm’s business strategy and its
operations strategy?
•Think of examples of manufacturing and service firms that pursue the
operations objectives of cost, quality, delivery, flexibility, sustainability.
•How do Apple’s operations and supply chain characteristics support their
product innovator strategy?
•What are some operations or supply chain challenges facing global
corporations?
•Describe recent examples you have seen in person or in the media that
illustrate how operations is closely tied to environmental, social, and
financial sustainability.
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
2-17
Chapter 3:
Product Design
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
3-1
Chapter 3 Learning Objectives
▪LO 3.1 Compare the three strategies for new product introduction.
▪LO 3.2 Describe the three phases of new product development.
▪LO 3.3 Evaluate how concurrent engineering deals with misalignment.
▪LO 3.4 Describe the criteria for selecting suppliers for collaboration.
▪LO 3.5 Evaluate an example of Quality Function Deployment.
▪LO 3.6 Explain the benefits of modular design.
McGraw-Hill/Irwin
COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC.
ALL RIGHTS RESERVED.
3-2
Product Design:
Why Does Operations Care?:‫تصميم المنتج‬
‫لماذا تهتم العمليات؟‬
In the past: Throw product design “over the wall” ‫ رمي تصميم المنتج‬:‫في الماضي‬
“‫”على الجدار‬
Today:
◦ Must be able to produce the product (design the process) ‫يجب أن تكون قادرة على إنتاج‬
)‫المنتج (تصميم العملية‬
◦ technology ‫التقنية‬
◦ availability of resources ‫توافر الموارد‬
◦ Must have the right type and amount of capacity‫يجب أن يكون النوع