Right think Think right Do Right things Do Things right Supply management Driving Forces’ Nano Bio Neuro IT Demand management New Market /Product New Business Model Climate change Food sufficiency, Safety, Standard Product technology Process technology Business Concept Business Model Product / Market Matrix CustomerProduct /Service Value propositionCustomer value Product /Service Value Leadership/ Differentiate Value chain Business Strategy Business Process Product / Cost Supply chain Demand chain Capacity planning & Forecasting Primary & Supporting activities Procurement & Distribution Inventory and Supply chain management Sale planning and overall operation Operation process Input Transformation output Competitive environment Productivities =Output/Input Process design Operative system design Business system design Productivities improvement technic MRP

New Economy Sense & Response Market driven Demand pull Demand chain Customer value Attribute & Expectation Acquisition cost Security Convenience Performance Economy Aesthetic Reliability Product driven Technology push Core capability Make & Sell Strategic manufacturing Agility manufacturing Mass customization Flexibility specialization Lean production Demand Supply Competitive goal Speed Flexibility Integration Innovation Quality Value chain Product technology Process technology Product design Process design Product strategy Process strategy Process Value Identify value Design value Develop valueDeliver value Capacity Capability Transformation Input Output Product Value Demand chain Quantity Lead time Product varieties Channel Innovation Service level Managing technology Capacity Location Process Quality Human resource Integration Supply chain

Historical Development of OM 1-3

3 Transformation processes

Types of Operations Operations Examples Goods ProducingFarming, mining, construction, manufacturing, power generation Storage/TransportationWarehousing, trucking, mail service, moving, taxis, buses, hotels, airlines ExchangeRetailing, wholesaling, banking, renting, leasing, library, loans EntertainmentFilms, radio and television, concerts, recording CommunicationNewspapers, radio and television newscasts, telephone, satellites

The impact of the product life cycle

The effects of the product/service life cycle on the organization Sales volume Introduction Growth MaturityDecline Product/service first introduced to market Slow growth in sales Innovators Few/none Possible high customization or frequent design changes Product/service characteristics, performance or novelty Quality Range Flexible Quality Volume Customers Competitors Variety of product/ Service design Likely order winners Likely qualifiers Dominant operations performance objectives Product/service gains market acceptance Rapid growth in sales volumes Early adopters Increasing numbers Increasingly standardized Availability of quality products/services Price Range Speed Dependability Quality Market needs start to be fulfilled Sales slow down and level off Bulk of market Stable number Emerging dominant types Low price Dependable supply Quality Range Cost Dependability Market needs largely met Sales decline Laggards Declining numbers Possible move to commodity standardization Low price Dependable supply Cost

Business concept Information Flows DemandSupply Satisfied Customer Service Order Fulfillment Procurement Customer Needs JMaximize value added for each link (activity or organization) JMaximize value of aggregate performance JEvery supply chain will have a unique solution for maximum overall value Supply chain

ความสอดคล้องของกลยุทธ์ ความต้องการของตลาด เข้าใจ ตลาด ทรัพยากรการผลิต เข้าใจใน ทรัพยากรที่ มีและ กระบวนการ ผลิต กำลังผลิต เครือข่ายซัพ พลาย เทคโนโลยี กระบวนการ องค์กรการผลิต ถูก เร็ว ดี หลากหลาย กระบวนการ ผลิต ปัจจัยการผลิต ความสามารถ ในการผลิต ตำแหน่ง ในตลาด ส่วนของ ตลาด กิจกรรม คู่แข่ง การ ตัดสินใจ เชิงกล ยุทธ์ การ ตัดสินใ จกล ยุทธ์การ ผลิต ผล ดำเนินงาน ที่ต้องการ วัตถุประ สงค์การ ดำเนินงา น ความสอดคล้องของกลยุทธ์การผลิต

© 2007 Pearson Education Links of Competitive Priorities with Manufacturing Strategy

Competitive priorities The most common competitive priorities used: cost (make it cheap) quality (make it good) variety (customize it to my needs) delivery speed (make it fast) delivery reliability (deliver it when promised) volume flexibility (adapt to the volume we want) product introduction speed (change it quick) during- and after-sale support (support it)

Multiple dimensions of value Internally, we want mutual advantage from the value dimensions whilst externally creating differentiation for customer segments Cost Flexibility Dependability Speed Quality The business environment On-specification products/services Wide product/service range Frequent new products/services Volume and delivery adjustments Dependable delivery Short delivery lead-times Low cost - high margin High total productivity Error-free processes Internal effects of the five dimensions of value Adaptability Reliable operation Fast throughput

Inputs Transformation Process Outputs Consumer Research Input Transformation Process (Value Adding) Output Operation System Sell Make Respond Sense ผลิตสินค้าให้ขายได้เลย Sense and Response Less for More โลกใบใหม่

สินค้าที่มีอยู่แล้วสินค้าใหม่ ตลาดที่มีอยู่แล้ว เจาะตลาด พัฒนาสินค้า ตลาดใหม่ ขยายตลาดสินค้าใหม่ ระบุโอกาสสำหรับธุรกิจที่เติบโต

Operations strategy is the strategic reconciliation of market requirements with operations resources Performance Objectives Market Positioning Customer Needs Competitors’ Actions Required performance Understanding markets Operations Strategy Decision Areas Tangible and Intangible Resources Operations Capabilities Operations Processes Understanding resources and processes Strategic decisions

The Supply Chain Framework Model Interfunctional supply chain Network supply chain Purchasing Material Control ProductionSalesDistribution Supplier Customer Needs Procurement การวิจัยตลาด ชีวภาพ สายพันธ์ การเพาะปลูก การ เตรียม เยื่อ การพัฒนา ผลิตภัณฑ์ การ ผลิต การ ออกแบ บ การวางตำแหน่ง ตัวสินค้า ช่องทางจำหน่าย ส่งเสริมการตลาด การกระจายสินค้า Demand Management Supply Management

Types of product design Custom products Standard products - design according to individual needs - small batches - flexibility - on-time delivery - few product models - continuously or large batches - fast delivery - low production cost

Process Choice HighLow Volume Process design choices  Less vertical integration  More resource flexibility  More customer involvement  Less capital intensity  More vertical integration  Less resource flexibility  Less customer involvement  More capital intensity Low Volume High Volume Flexible flows Intermediate flows Line flows Project process Job process Line process Continuous process Batch process Figure 3.4

Total and Immediate Supply Networks “Second tier” Suppliers “First tier” Suppliers “Second tier” Customers “First tier” Customers The Operation Supply side of the network Demand side of the network The Immediate Supply Network The Total Supply Network Internal Supply Networks

Supply Chain Facilities, functions, activities for producing & delivering product or service from supplier to customer Planning, managing, acquiring, producing, warehousing, distribution, delivery

Supply Chain Facilities, functions, activities for producing & delivering product or service from supplier to customer Planning, managing, acquiring, producing, warehousing, distribution, delivery

Supply - chain SupplierProcurement Manufacture Distribution Transport Storage Customer Efficient Customer Response ( ECR ) เป็น Strategic Alliance Strategic Partnership เพื่อสร้าง Competitive Advantage LocationGeographical factor

The location of operations Operation Supply-side factors Demand-side factors Labour costs Land costs Energy costs Transportation costs Community factors Labour skills Suitability of site Image Convenience for customers

Supply Chain Design Strategic issue Apply quality management principles Benchmark to learn what is possible Work with suppliers & customers to achieve goals Control inventory