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OM2: OSCM and Value Creation - Coggle Diagram
OM2: OSCM and Value Creation
How Does Operations and Supply Chain create value?
Value Propositions: product/services that are ATTRACTIVE to customers and DIFFERENT from competitors offering
Value Propositions must be:
Can be delivered
Profitable
Differentiated
Attractive to customer
Meets core value
PRODUCT
related competitive priorities
Timeliness: on-time deliver, fast lead time, time to market
Cost: purchase/acquisition cost, operating/maintenance cost, disposal cost
Quality: performance, features, conformance, reliability, durability, aesthetics, service/support, perceived quality
PROCESS-RELATED
competitive priorities
Flexibility
Risk Management (resilience)
Innovation
Sustainability
Capabilities: UNIQUE and SUPERIOR operational abilities that stem from the routines, skills, and processes that the firm develops and uses
Must be supported by operational
CAPABILITIES
embedded in...
Performance measures
Technology
Planning
People and culture
Processes - routines, skills, systems
Supply chain relationships
STRATEGIC DECISIONS of OSCM
Structural Decisions
Planning and control
Product and process innovation
Workforce
Organization and management
Infrastructural Decisions
Facilities
Technology
Capacity
Supply Chain Network
Key Customers: a customer that the firm targets and sees as important
Becomes a
Key
customer when:
The ones with the highest prestige
Account for largest sales
Types of orders:
Order Qualifiers (minimum standards to be met)
Order Losers (Why customers avoid your firm)
Order Winners (why customers choose your firm)
Operations and Supply Chain vs Tactics: these work together to be successful
Strategy: set the direction
Tactics: Operationalize the strategy