Unit 4 IP OS
SteelTiger4
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Welcome
Inventory abuse
Raw Material
Work-in-Process
Finished Goods
1. Each ties up
organizational capital
2. Each leads to waste
Inventory Management
- Inventory (shared risk) –
- Is the flex in the production or service cycle, but also a weight in terms of investment and quality
- ABC
- Consignment
- Reduced safety stocks
- Managed of item attributes (lead time, order policies, quality) TOC
- Periodic inventory management
- Quantitative analysis
The job of every organization is to _________________
and if you do this well you will make a ___________.
Customer Needs
FIVE CRITERIA
- (WHAT) THE PRODUCT OR SERVICE THEY DESIRE
- (TIME) WHEN THEY ARE IN NEED OF THE PRODUCT OR SERVICE
- (COST) AT A PRICE THAT ALLOWS FOR THEIR CONTINUED SUCCESS
- (QUALITY) AT A STANDARD THAT MEETS THEIR USAGE NEEDS
- (RELATIONSHIP) THE CONNECTEDNESS OF CUSTOMER TO SUPPLIER
*
Purpose of Outsourcing
Rationale
- (WHAT) Core competencies vs. support functions
if a business activity…
Challenges
- Control
when you outsource how do you maintain ….
Outsourcing
Rationale
- (WHAT) Core competencies vs. support functions
- building or doing (i.e. manufacturing or service)
Offshoring
Rationale (same as Outsourcing)
- (WHAT) Will be one of your core competencies (why?)
- if a business activity…
- can be performed more efficiently by someone/somewhere else,
- Improves the five criteria to your customer,
- or reduces the cost of doing business …
- Ship it off
Outsourcing
Challenges
- Control
- when you outsource how do you maintain ….
- continuity,
- responsibility,
- accountability,
- quality,
- keeping all stakeholders satisfied
Off-shoring
Challenges
- Control
- when you outsource how do you maintain …. Differences from outsourcing(?)
- continuity,
- responsibility,
- accountability,
- quality,
- keeping all stakeholders satisfied
Off-shoring
- Why
- to utilize resource advantages to expand core capacities or add new core capacities
- Considerations
- Culture
- Cost
- Distance
- Core strength of existing business
- Ethical/values alignment
- Stability
