Discussion 3

Hello Class, We have reached Module #3 of the semester which focuses on Chapter 5: Manufacturing and Chapter 6: Integrated Operations Management. Chapter 5 goes in-depth on manufacturing for businesses and the quality imperative that is associated with it. Any time we purchase a product it has already been evaluated in areas that have explored their dimensions of quality, total quality management and tested against quality standards set forth by the company (and regulators). Major names in the business world (for example, Nike) implore manufacturing perspectives such as brand power, volume, variety, constraints and lead time. As mentioned in previous discussion boards, a strategy of manufacturing must be broached which could include the following: basic manufacturing processes, matching (strategy to requirements), alternative manufacturing strategies and evaluating the total cost of manufacturing. As manufacturing has evolved over the years businesses have become more proficient in areas such as mass customization, lean systems, flexible manufacturing, six sigma, requirements planning, design for manufacture and logistics. Chapter 6 discusses the importance of integrations operations planning. Supply chain planning must have visibility, simultaneous resource consideration and resource utilization. Applications of supply chain planning are many, but this chapter focuses on demand planning, production planning, logistics planning and inventory deployment. The S&OP (sales and operations planning) process is discussed in detail thus focusing on the process itself and how to go about making it work to a company’s benefit. The APS (advanced planning and scheduling) overview breaks down the various components of APS, as well as, exploring the supply chain planning benefits, the supply chain planning considerations and integrated business planning. Lastly, the all important topic of forecasting comes to light. There are 5 important aspects of forecasting: requirements, components, process, techniques and the all important accuracy of the practice. Once again, think of the pandemic and how forecasting could make or break a business. After you read chapters 5 & 6 in the textbook, please answer the following questions: Why would a company’s cost of manufacturing and procurement tend to increase as the firm changes from MTP to an MTO strategy? Why would inventory costs tend to decrease? (Page 115, Study Question #3) Describe the S&OP process. What are the major trade-offs that must be considered? (Page 145, Study Question #2)