Operations and Supply Chain Management Chapter 1

Production Management 212: Tutorial 1

Petrea Butler

20023782

A: Operations and supply chain management is the design, operation, and improvement of the systems that create and deliver the firm’s products or services.

B: Operations process refers to the manufacturing and service processes that are used to transform inputs into outputs. A supply chain refers to processes that move materials and information to and from these manufacturing and service processes.

Discussion questions:

1. Supporting facility: The campus grounds, the lecture halls, lubritorium’s and the student centre. Computer labs (Narga, Farga etc.) and the Danie Craven sports grounds.

Facilitating goods:  The class notes on SunLearn, the computers in the computer lab. The books in the library.

Explicit services: Highly qualified and trained lecturers. The cleaning and working staff at the buildings and in the residences.

Implicit services: Stellenbosch university is seen as a highly-qualified university. The layout of the university does cater for large amounts of students. The staff at the university are friendly and approachable.

The strongest aspect at Stellenbosch University would be the Supporting facility. The grounds and buildings at the University are of a high quality and are maintained regularly. The weakest element would be Facilitating goods as some of the computers or books are outdated.

1. The retail service industry, not just has Walmart changed the way of shopping with having cashier less cash registers, but Amazon recently launched the innovative new technology grocery store in Seattle called Amazon Go. Snapscan and QR codes have also changed the way people shop and spend money.
2. Product service bundling is adding services to the product the company creates. These services will add value to the product and make it more attractive. The benefits are thus a higher quality products as these services enhance the products performance.
3. A service is a process that cannot be measured. A service is an interaction with clients where their needs are satisfied. A good is a tangible product than can be measured. A good is a physical output of a process.

1. Globalization is one of the most important factors to consider when looking at the increase of OSCM today. It involves the growth in different dimensions such as economic, social and political. Companies also realise because of the competitive retail sector the company’s OSCM has to stay updated in order for the company to be innovative and to survive. Through the years, the need of the customers might also change and the companies have to stay updated in order to meet these needs.
2. Effective means doing the rights things, while efficient means doing the right thing. In order for a firm to succeed both of these aspects have to be considered, however they are not necessarily linked as a firm can be efficient but not effective. When a firm produces a product very fast and very cheap, but this product is not wanted by the clients the firm is then efficient but not effective. It works the other way around as well, when the firm produces a product the client needs it is effective, but when the company takes too long to produce this product or it is too expensive, then the firm is not efficient.

1. Receivable Turnover = Annual Credit Sales/ Average Account Receivable =   32,937,000/5,020,000= 6.56
2. Inventory Turnover = Cost of Goods Sold/Average Inventory Value = 31,840,000/8,704,000= 3.66
3. Asset Turnover = Revenue / Total assets = 61,465,000/15,368,000= 3.9995

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