Question

Discuss the role of production operations in the supply chain. Provide examples of how effective/ineffective production operations impact supply chain performance.

Answer 1

A supply chain may be a collection of suppliers required to make one specific product for an organisation . The chain is formed from nodes or “links,” which may include multiple manufacturers for parts, then the finished product, then the warehouse where it's stored, then its distribution centres, and eventually , the shop where a consumer can buy it. The concept of the chain is vital , because each link is connected during a specific direction and order, and therefore the next link can't be reached without browsing the previous one. Each link adds time and costs, and may involve labour, parts, and transportation. Every product an organisation carries may have its own supply chain, though they'll use certain suppliers for multiple products.

Supply chain is sourcing and moving each the raw materials and the finished product. Operations management is the part in the middle where the product is created from the raw materials. Supply chain is how you get it and get it to consumers. Production operations is how you create it.

Production operations encompass the activities involved in changing the consumption of a goods or services. it's through with the first purpose of enhancing the utility of the merchandise for the user. It consists of process like assembly and quality enhancement. They enhance the standard of the availability chain by making the products and services better customised because the customer needs it. Production operations involve production management that encompasses forecasting, sales and operations planning demand management, and order and production planning. Production operations supports supply chain management and enables better supply chain planning and scheduling.

The roles of the availability chain include measuring, planning, and managing the links within the production chain. The supply chain is therefore an in depth process of all the activities involved within the production levels. The operations management is on the opposite hand the management of the processes within the production levels. The supply chain looks into the links between the chain levels while the operations management looks into the processes at each level of production. it's however clear that both the supply chain and therefore the operations management deals with the activities at the varied levels of production.

Supply chain provides direction on when raw materials are to be acquired by an organisation and the outsourcing criteria, the operations management restricts its mandate to the planning of the utilisation of the raw materials in the production process and therefore the supervision of the human resource within the particular an organisation. Again, the supply chain provides a directive that is then implemented by the operations management. The operational decision makings of the supply chain as well fits into the observed trend of dependence.

The supply chain conduct analysis which are then used to forecast on processes and also carries out monitoring of the undertaken measures while the operations management uses the forecasts from the supply chain to plan and oversee the operation processes which are then monitored by the supply chain.

Organisation want to integrate Production operations and Supply Chain Strategy with the operations capabilities of a firm, must make decisions about the design of the process and infrastructure needed to support these processes.

· Process design is selecting the right technology, arranging the process over time, determining the role of inventory in the process and determining the location of the process.

· Infrastructure decisions involve the logic associated with the planning and control systems, quality assurance and control approaches, work payment structure and organisation of the operations and supply functions.

· Operations capabilities is a portfolio best suited to adapting to the changing product and/or service needs of a firm’s customers.

An example would be a organisation that employs good production operations could synchronise the production with the forecasted demand. This is able to make sure that the inventory isn't empty or over stocked. This may also make sure that the organisation utilises its inventory space and lower costs on storage and transportation. A sound production operation also ensures that the customer gets the product with none delays.

Some positive features

· Automation

· Inventory management

· Timely deliver

· Improved safety

· Reduce operational costs

· Better customer service

Some negative features

· Skill gaps

· Needs control

· It’s difficult to spot a mistake

· Security issues

The supply chain is liable for outlining the activities at each level of the supply in terms of time and capacity while the production operations management is liable for the implementation of the choice made by the supply chain. The supply chain therefore determines the activities of the operations management or in other words, the supply chain affects the activities of the operations management.