Management 12e richard draft END

AppendixManaging the Value Chain, Web 2.0, and E-Business... The Organization as a Value Chain The technical core is the heart of the organization: production of product/service  The

AppendixManaging the Value Chain, Web 2.0, and E-Business

The Organization as a Value Chain

 The technical core is the heart of the organization: production of

product/service

 The organization is a value chain

 Operations management pertains to the daily management of the

technical core

 Operations Management – use of tools and techniques to ensure that

goods and services are delivered successfully to customers

A.1 - The Organization as a Value Chain

A.2 - Differences between Manufacturing and Service

Organizations

Supply Chain Management

Managing the sequence of suppliers and purchasers, covering all stages

of processing from obtaining raw materials to distributing finished

goods

A.3 - An Integrated Supply Chain

A.4 - Basic Production Layout

All the equipment and materials that relate to a specific function are grouped

together

A.4 - Basic Production Layout

Machines and tasks are arranged according to the progressive steps in

producing a single product

A.4 - Basic Production Layout

People and equipment are grouped into cells that perform all the tasks needed to

serve a particular client

A.4 - Basic Production Layout

The product remains in one location, and employees and equipment are brought to it

Technology Automation

 Radio-Frequency Identification (RFID) – identification tags that emit

radio signals to track inventory

 Digital Manufacturing Systems – the use of technology to adapt

production processes

 Lean Thinking – combining advanced technology and effective

management to solve problems and cut waste

Inventory Management

 Inventory is the goods that an organization keeps on hand for the

production process; types of inventory:

 Finished-goods inventory

 Work-in-process inventory

 Raw materials inventory

 Inventory management is vital to an organization because it costs

money

A.5 - Large Inventories Hide Operations

Management Problems

Just-in-Time Inventory

 Designed to reduce inventory and associated costs

 The aim is to push the time that inventory sits on shelves to zero

 Also called stockless systems, zero inventory systems, or kanban

systems

 Can aid in creating organizational flexibility

Information Technology has Transformed

Information Technology has Transformed

Knowledge Management and Web 2.0

 Knowledge management includes systems to gather and organize

knowledge to foster a culture of learning and knowledge sharing

 Business intelligence software

 Expert-locator systems

 Groupware (collaborative work systems)

Knowledge Management and Web 2.0

 Web 2.0 includes blogs, wikis, and social networks

 A blog includes individual posts, opinions, and ideas

 Blogs are simple and informal

 Large organizations use the micro-blogging service Twitter

 A wiki uses software to create, share, and edit content

 Web 2.0 easily supports knowledge sharing

Enterprise Resource Planning (ERP)

 ERP integrates and optimizes all the various business processes

 Provides information to entire enterprise

 Links all areas of activities

 Customers and suppliers are linked into the exchange as well

 ERP can cut costs, shorten cycle time, enhance productivity, and improve

relationships with customers and suppliers

A.6 - Example of an ERP Network

The Internet and E-Business

E-business is any business

that takes place digitally over a

A.8 - The Key Components of E-Business for two Traditional

organizations

E-Business Strategy: Market Expansion

 Internet provides a direct link to customers around the clock all over the

A.9 - Strategies for Engaging Clicks with Bricks

E-Business Strategy: Increasing Efficiency

 E-business strategies can increase productivity and cut costs

 Companies are using Twitter to forecast sales

 E-business can prompt significant productivity gains

 Service organizations are using the Internet to negotiate and save money