commerce and operations

Supply chain management and operation management are terms used in trade to describe the management of finished goods, work-in-process inventory, raw material transportation and storage, and the flow of goods and services from the point of production to the point of use (Camerinelli & UniCredit Group, 2016). Whereas operation management is more concerned with the management of the operations that produce the firm’s recurring value, supply chain management is concerned with managing costs and achieving performance in all processes, from raw materials and products to production and eventually distribution to customers (Bowersox, Closs & Cooper, 2013). Importance of Operations and Supply Chain Management to a Company’s Strategy

The practice of this discipline is vital to a company’s strategy; it has a massive impact on the bottom line of a firm. It improves the efficiency of transportation vehicles, warehouses, and plants and thereby streamlining the production, distribution, inventory, and operations of both large and small corporations (Camerinelli & UniCredit Group, 2016). Consequently, this maximizes the customer value besides achieving a sustainable competitive advantage and this plays a major role in the profitability of the company for the reasons that it enables the organization to function at optimal capacity in provision and distribution of various materials and products (Camerinelli & UniCredit Group, 2016). In summary, the operations and supply chain management boosts customer service, reduces the operating costs through lessening the production, purchasing, and total supply chain costs, improves the financial position of an enterprise by growing the cash flow, and profit leverage, and decreasing fixed assets.

Dimensions of quality

There are eight defined dimensions of the product quality in operations and supply chain management. First is the performance which entails the primary operating characteristics of a product, particularly the measurable attributes. The second dimension is the feature which refers added characteristics of a service or product which enhances their appeal to the user. Thirdly is reliability which is determined by the probability that the commodity will not fall within a defined time period. Conformance is the fourth dimension; it denotes the precision with which a service or product meets the standards as specified. The fourth dimension of quality is durability which is a measure of the length of the life of a product. In other words, it is the time that an item can be used up to a time when operating it becomes no longer economical. The sixth dimension is serviceability and this is the speed with which the commodity can be brought back into service once it has broken down. Serviceability also takes into account the behavior and competence of the individual offering the service or rather the serviceperson. The second last dimension of quality in operation and supply chain management is aesthetics. It refers to the subjective dimension which indicates the kind of response that product user has towards it. Otherwise stated, aesthetics represents the personal preference of an individual to a particular commodity. Perceived quality marks the last dimension of quality in operation and supply chain management. It denotes the quality attributed to a service or good on the basis of indirect measures. The primary stuff, with regard to perceived quality, is reputation (Bowersox, Closs & Cooper, 2013).

Key Factors That Have Contributed to The Evolution of Operations and Supply Chain Management.

Benefits and Costs of Good Quality, and The Costs of Poor Quality.

Quality Tools and the DMAIC Methodology in Problem-Solving.

References

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply chain logistics management. New York, N.Y: McGraw-Hill.

Camerinelli, E., & UniCredit Group. (2016). Measuring the value of the supply chain: Linking financial performance and supply chain decisions. London: Routledge.