Page 314 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes Supply chain performance improves if all stages of the chain take actions that together
increase total supply chain profits. A lack of co-ordination can impact the performance.
Supply Chain Optimization is the application of processes and tools to ensure the optimal
operation of a manufacturing and distribution supply chain.
JIT is a management philosophy that strives to eliminate sources of manufacturing waste
by producing the right part in the right place at the right time. Waste results from any
activity that adds cost without adding value such as moving and storage.
A Kanban system is a pull system, in which the Kanban is used to pull parts to the next
production stage when they are needed; an MRP system (or any schedule based system) is
a push system, in which a detailed production schedule for each part is used to push parts
to the next production stage when scheduled.
In spite of the natural differences manufacturing and service, there are possible applications
and benefits of JIT techniques in service industries.

13.12 Keywords

E-banking: banking transaction carried out on the internet
E-commerce: defined as the conduct of business online, via the Internet

EDI: Electronic exchange of business information
EDIFACT: Electronic Data Interchange for Administration Commerce and Transport
External Supply Chain: It includes the key suppliers and customers, portion outside firm
FTP: File Transfer Protocol
Internal Supply Chain: The portion of a given supply chain that occurs within an individual
organization
JIT: It strives to eliminate sources of manufacturing waste by producing the right part in the
right place at the right time
Kanban: It is a visual aid to convey the message that action is required
Logistics: It focuses on the physical movement and storage of goods and materials
Pull View: It processes that are initiated by a customer order

Push View: It processes that are initiated and performed in anticipation of customer orders.
SCOR Model: It is based on a benchmarking process and used to measure the performance of an
existing supply chain and its related processes

Supply Chain: This includes all the elements right from procurement of materials till end
customer
Supply Chain Management: The active management of supply chain activities to maximize
customer value and achieve a sustainable competitive advantage
VAN: Value Added Network

308 LOVELY PROFESSIONAL UNIVERSITY