Supply Chain Management – MECH2281
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Course Objective
1. To Introduce Operations Management, role and
responsibility of Operations Manager
2. To Explain the importance of logistics and supply chain
management and the relevant drivers and metrics
3. To demonstrate the techniques of forecasting to reduce
uncertainty by identifying the risks in a global Supply
chain setting
4. To import knowledge of collaborative planning,
forecasting and replenishment
5. To summarise the importance of technology in
operations, logistics and supply chain management
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Course Outcomes
1. Understand the operations management.
2. Know the different manufacturing systems and roles of
operations manager.
3. Understand the logistics and supply chain.
4. Analyze the risk in supply chain management.
5. Manage the uncertainties in inventory.
6. Understand the impact of replenishment policies in
inventory.
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Syllabus
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Module I: Introduction to Operations Management
History of operations management, types of manufacturing
systems, roles and responsibilities of operations manager,
Product operations and service operations, Current Trends in
Operations Management
Module II: Understanding the Logistics and Supply Chain
Introduction to supply chain, supply chain links, role of logistics
in supply chain, drivers and metrics in supply chain, designing
the supply chain network, online sales and distribution network,
factors influencing the network design.
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Module III: Impact of Uncertainty in Network
Globalization and supply chain, risk management in global supply
chain, demand forecasting in supply chain role of information
technology in forecasting.
Module IV: Coordination in Supply Chain
Collaborative planning and replenishment strategies, CPFR, managing
uncertainties in inventory.
Module V: Impact of Replenishment Policies in Safety Inventory
Role of information technology in inventory management,
transportation in supply chain.
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Text Books(s)
1. Sunil Chopra, Supply Chain Management,
Pearson Publications, 2012.
Reference Book(s)
1. Sridhara Bhatt, Logistics and Supply Chain
Management, Himalaya Publishers, 2011
2. D.K Agarwal, Logistics and Supply Chain
Management, Macmillan Publishers, 2013.
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Module I
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Module I
• Introduction to Operations Management
• History of operations management
• Role and responsibilities of operations
manager
• Types of manufacturing systems
• Services operations.
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Operations management is a systematic
approach to addressing issues in the
transformation process that converts inputs
into useful, revenue-generating outputs
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What are Operations ?
✓ The aspect if a business organisation that is responsible for
producing goods or services
✓ A function or system that transforms inputs into outputs of
greater value
Deals with the Design and Management of
✓ Products
✓ Processes
✓ Services
✓ Supply Chain
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• What is a Transformation Process
– a series of activities along a value chain extending
supplier to customer
– activities that do not add value are superfluous and
should be eliminated
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Objectives of OM
• Right Quality
• Right Quantity
• Predetermined time
• Pre established cost (manufacturing cost)
• Right place
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Vice president - VP
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History of Operations
Management
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Role of the Operations Manager
The Operations Function consists of all activities
directly related to producing goods or providing
services.
A primary function of the operations manager is to
guide the system by decision making.
– System Design Decisions
– System Operation Decisions
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System Design Decisions
• System Design
– Capacity
– Facility location
– Facility layout
– Product and service planning
– Acquisition and placement of equipment
• These are typically strategic decisions that
• usually require long-term commitment of resources
• determine parameters of system operation
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System Operation Decisions
• System Operation
• These are generally tactical and operational decisions
– Management of personnel
– Inventory management and control
– Scheduling
– Project management
– Quality assurance
• Operations managers spend more time on system operation
decision than any other decision area
• They still have a vital stake in system design
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1. Take part in strategic decision making of the
company
2. Take part in implementation and use of ERP in the
company.
3. Automate processes as per the requirements of the
company.
4. Enhance the research and development effort in
developing self – relevant new technologies.
5. Reduce lag in implementation of projects [new
products/services launching; expansion of facility]
due to increased competition.
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6. Protect the environment by implementing environment
and pollution norms established by the government from
time to time.
7. Act as a member of the concurrent engineering teams in
new product design and old product development.
8. Develop long term strategic relationship with supplies by
acting as supply chain managers.
9. Give more attention to technology management, in view
of joint ventures of multinational companies with
domestic companies.
10. Be an internal quality auditor in quality certification
programming such as ISO 9000, ISO 14000 series.
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Responsibilities of Operations
Managers
• Planning : Capacity, location, products and services,
make or buy, layouts, projects and scheduling.
• Organizing : Degree of centralization,
subcontracting.
• Staffing : Hiring/laying off of employees.
• Directing : Incentive plans, issue of work orders, job
assignments.
• Controlling : Inventory control, Quality control, Cost
control.
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Responsibilities of Operations
Managers
• Meeting requirements of quality demanded by
customers.
• Establishing realistic delivery or completion dates.
• Producing the required volume of products to meet
the demand.
• Selection and application of most economic methods
or processes.
• Controlling the cost of inputs and conversion process
and thereby keeping the cost of outputs within the
desired limits.
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Types of manufacturing
systems
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Types of manufacturing
systems
variety
volume
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Machine A Machine B Machine C Machine D Machine E
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Mass Production Process System
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Text Books
• Operations and supply chain management –
Russell & Taylor, WILEY publisher.
• Operations Management – B. Mahadevan,
Pearson publisher.
• Production and Operations Management – K
Aswathappa and K. Shridhara Bhat, Himalaya
publisher.
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