INTERFUNCTIONAL INTERORGANIZATION KEY KEY ATING VALUE THROUGH OPERATIONS AND SUPPLY CHAINS PARTICIPANTS Customers Suppliers Customers E 1.2 OPERATIONS AND and SUPPLY CHAIN PARTICIPANTS vities ACTIVITY PURPOSE Process Design and implement the Engineering Marketing selection transformation processes that Finance best meet the needs of the Human resources customer and the firm IT Forecasting Develop the planning Marketing numbers needed for effective Finance decision making Accounting Establish strategic capacity Finance planning levels ("bricks and mortar") Accounting and tactical capacity levels Marketing (workforce, inventory). Manage the amount and IT management placement of inventory within the company and the supply chain. Suppliers Customers Capacity Human resources Suppliers Customers Inventory Finance Marketing IT Suppliers Customers Planning and control Schedule and manage the flow of work through an organization and the supply chain; match customer demand to supply chain activities Identify and qualify suppliers of goods and services; manage the ongoing buyer- supplier relationships. Manage the movement of Purchasing Suppliers Engineering Finance Marketing Logistics physical goods throughout the supply chain. Marketing Engineering Suppliers Customers 1. Consider the simplified Anheuser-Busch supply chain shown in Figure 1.2. Is Alcoa really the first entity in the supply chain? What other suppliers would Anheuser- Busch have? What information should be shared among companies in the supply chain? Distributor Retailer Second-Tier Supplier First-Tier Supplier FIGURE 1.2 A Simplified View of Anheuser-Busch's Supply Chain Final Customers M&M Meijer Anheuser-Busch Alcoa Ball Corporation Downstream Upstream tions management anning, scheduling, and of the activities that m inputs into finished and services." Operations management, then, is "the planning, scheduling, and control of the acti- that transform inputs into finished goods and services." Operations management decision range from long-term, fundamental decisions about what products or services will be and what the transformation process will look like to more immediate issues, such as de ing the best way to fill a current customer request. Through sound operations mana 6 PART CREATING VALUE THROUGH OPERATIONS AND SUPPLY CHAINS