Last Modified: 2011-07-01
a company building service activities into its product offerings for its current users
examples: maintenance, spare part provisioning, training
just in time
high volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed
total quality control
seeks to eliminate causes of production defects
business process reengineering
eliminate non-value-add steps
coordinating the relationships between mutually supportive but seperate organizations
optimizing the local supplier, production, and distribution networks
managing customer touch points
raising senior management awareness of OSCM as competative weapon
built on three pillars: process modeling, performance measurement, best practices
occurs when a company seeks to match the benefits of a successful position while maintaining its existing postition
adds features, services, or technologies onto the activities it already performs
a criterion that differentiates the prodcuts or services of one firm from those of another
may be the cost of the product, product quality and reliability, delivery speed, delivery reliability, support
D=average number of units depanded per period
L=lead time to replenish an order
S=safety stock expressed as a percentage of demand during the lead time
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