How is supply chain management different than the manufacturing process quizlet?

An operations and supply chain management view of capacity emphasizes the time dimension of capacity.

Three time horizons are generally used: long range (greater than a year), intermediate range (6 to 18 months), and short range (less than a month).

To distinguish between the absolute maximize capacity of the system (the highest output rate attainable) and the rate that is sustainable by the system (that it can be run at efficiently and for a long period of time), the term best operating level is used. The utilization of the system is a measure of how close the system is operating relative to the best level.

When a producing resource, such as a manufacturing plant, gets larger and volume increases while the average cost per unit of output simultaneously drops, then the resource is exhibiting economies of scale.

At some point, the resource may be too large and the average cost will start to rise. This is when diseconomies of scale are a problem.

Focused manufacturing plants are designed to produce multiple products using a concept called plant within a plant to improve economies of scale even though multiple products are produced in the same facility. This type of facility demonstrates the concept of economies of scope.

Having capacity flexibility is often important to meeting the needs of a firms customers.

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External 1) Relationship Integration
-ability of two or more companies to develop social connections that serve to guide their interactions when working together

2) Measurement Integration
-reflects the idea that performance assessments should be transparent and measurable across borders of different firms and assesses the performance of supply chain as a whole while holding each individual firm or business unit accountable for meeting its own goals

3) Technology and Planning Integration
-creation & maintenance of info tech systems that connects managers across supply chain firms, requires info hardware and software systems that can exchange info

4) Material and Service Supplier Integration
-requires firms to link seamlessly to those outsiders that provide goods and services to them so they can streamline work processes and provide smooth, high quality customer experiences. Both sides need to have common vision of total value creation process and be wiling to share the responsibility for satisfying customer requirements to make supplier integration successful

5) Customer Integration
-enables firms to offer long lasting, distinctive, value added offerings to those customers who represent the greatest value to the firm of supply chains

HIGHLY ORGANIZED CHAINS DO BETTER

Some MRO items are consumed during the process of converting raw materials into finished goods, e.g., oil for the manufacturing equipment.
Other MRO items are used to facilitate the manufacturing operation, e.g., cleaning supplies, spare parts, etc.
While still other MRO items may be used to facilitate the company's administrative activities, e.g., office supplies, coffee for the break room, etc.
MRO inventory is separate from production inventory, but it is just as important.
Frequently these items are expensed at the time they are purchased, and there may be a separate function, group, or individual who plans and orders these MRO items, from those who plan and order production items.

How is supply chain management different than the manufacturing process?

How is supply chain management different than operations management quizlet?

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