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Operations Management (Fach) / Definitions (Lektion)

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• Supply network the network of supplier and customer operations that have relationships with an operations, creating cross-dependencies.
• Push Control indicates that work is being sent forward to workstations as soon as it is finished on the previous workstation
• Pull control indicates that a workstation requests work from the previous station only when it is required
• reverse logistics the process from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
• vertical integration the extent to which an operation chooses to own the network of processes that produce a product or service
• horizontal integration the degree to which operations decide to merge in order to change business scope or product scope
• agility using market knowledge and a virtual corporation to exploit (respond quickly and at low cost) profitable opportunities in a volatile marketplace
• leanness developing a value stream to eliminate all waste, including time, and to ensure a level schedule
• decoupling point where orders and forecasts meet, usually a warehouse of some sort.
• Make (supplier relationship) integrate your supply chain vertically, moving up-or downstream for a strategic reason
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• collaboration (supplier relationship) significant integration of the two organisations (planning, systems, technology, sometimes culture and goals), significant commitment (financial and length of time), risk and benefit sharing, blurs the boundaries between the two firms, should work as if done almost by a single entity
• coordination (supplier relationship) (a) linking systems together to freely exchange information (JIT etc), (b) refocuses on the whole supply chain, instead of two focus points on the parts, (c) omits management processes, focusing entirely on production issues
• cooperation (supplier relationship) (a) fewer potential suppliers, longer term contracts, (b) a trust relationship, which means more communication, (c) goal is efficiency in production
• buy (supplier relationship) based on price, turns relationship adversarial (haggling, playing competitors off each other, lining up multiple suppliers, changing them based on price, means spending time/ money on performing quality inspections on incoming goods
• 5 key factors for power (a) possession of specialist knowledge and key technologies, (b) abundance of alternatives, (c) high percentage share of sales to one customer, (d) brand value attached to doing business with certain large, high profile organisations, (e) smaller organisations can be overpowered by lock-in investment from wealthier organisations
• Forrester Effect / Bullwhip Effect the tendency of supply chains to amplify relatively small changes at the demand side of a suplly chain such that the disruption at the supply end of the chain is much greater. volatility and inaccuracy, combined with a few bad decisions and poor communication can lead to wildly changing production schedules and the apparent need for large inventory up the supply chain
• demand side the chains of customers, customers' customers etc that receive the products and services produced by an operation
• supply side the chains of suppliers, suppliers' suppliers etc that provide parts, informatino or services to an operation
• immediate supply network the suppliers and customers that have direct contact with an operation
• total supply network all the suppliers and customers who are involved in supply chains that pass through an operation
• economy of scale the manner in which the costs of running an operation decrease as it gets larger
• diseconomies of scale a term describing the extra costs that are incurred in running an operation as it gets larger

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