Essay About Capacity Capability Of Supply And Analysis Of Operation

Operation Management
GOP L2Sourcing strategiesOperational costsManagerial costs Strategic costsSourcing arrangementsSingle sourcing (one supplier supplying part)Advantages:Multiple sourcing (having more than one supplier providing same part)Advantages:Delegated sourcing strategy: having one supplier take responsibility for other related suppliersThe 75%-25% ruleRule: Supplier A gets 75% of the businessSupplier B 25% Advantages: obtain scale economies from supplier A                 Security by supplier BLarge company tend to use large supplier cuz more reliable and their capacity capability of supply can matchGeneral sourcing strategyToyata strategy: adjusting time-reduce number of warehouse               Toyata production system?Less suppliers—OC MC减少SC增加或减少-system providerCreate a long term contract with the company who can provide more tier of suppliersAnalyze supply chain analyze suppliersNestleL3- design and analysis of operation Sourcing strategiesKralijic’s positioning Matrix- widely used in industry and by consultancy firms-4 key purchasing strategies- maps types of products to sourcing strategies 2 variables: supply risk/ supply market complexity( external issues)impact on businessstrategy 1 suitable for purchasing routine itemslow value/costlow technical risk-no significantstrategy 2 bottlencksuitable for products that could seriously affect delivery to customer if delayedstrategy3 leverage: seek to get the best deal, even when the product is not of great valueS4 critical:when the part has a significant impact on the buyer’s business in terms of value or costRoutine: multiple suppliers Leverage: single /few suppliersBottleneck: high rick; transfer the risk to supplier, delegation of supplierCritical: long term supplier, single supplier, cooperationSourcing strategiesPareto analysis applied to purchasingPareto principle: “80-20” ruleFor many events, 80% of the effects come from 20% of the causesBecause you have limited resource to be used in your business, you need to focus on the 20% which is the most importantABC analysisA: 20% cost/sales represents 80% volumes of productsDis: fail to identify the low level itemsGlobal operation & Competitive advantage Operations are essential to strategyOperations are to find winning model, to preform competitive managementGlobal operations & sustainabilityAnalyze sustainability of your operation and supply chainInnovationDesign supply chain develop relationship with suppliers