The paper "Operation and Supply Chain Management" Is a great example of a Management Case Study. Supply chain management, fundamentally, is the oversight and/or the management of the distribution and production of goods. It also involves the movement, as well as storage of raw materials, finished goods, and work-in-progress inventory. Essentially, the three departments that play a major role in ensuring that the production and distribution processes have been carried out effectively are the production operations, the supply chain, and the business process management department. The production operations department is basically involved in the conversion company’ s capital resources into final goods.
This is one of the most important processes in an organization, considering that it is the origin of all the company’ s products. The capital resources in the organization are all the resources that facilitate the production process. They include physical capital, human resource, raw materials, and technology. The effectiveness of any department in the organization is dependent on the quality of the management team. The ability to put together all the important variables in the production process, as well as make informed decisions in a timely manner is key to enhancing the production process. The chain supply management, on the other hand, is charged with the responsibility of ensuring that the company’ s products reach the final consumer.
This can be achieved through various intermediaries including middlemen, wholesalers, and sometimes retailers. The bottom line is that the supply chain management ensures that the produced goods are moved out of the company to various destinations, where they would be needed by different types of customers (Tenant, 200, p. 56). To do this, this department needs to ensure that proper supply designs have been developed, which would be as a result of proper planning.
Proper planning and appropriate supply design would put the organization in a superior position to execute their supply strategies. The business process department ensures that the various processes involved in the production and supply of the products have been carried out in an effective manner, and ample time is given to every process. This can be achieved by aligning the position of the company with the current activities and the resources, which would ensure that the organization works within the constraints of time and resources.
As the company and other different organizations focus on the core competencies, as well as becoming more flexible, they end up reducing their ownership of raw materials sources and/or the distributional channels. Summary Report from Mike Kamarck to Wendy Kouba on the Objectives Background information Wyeth Pharmaceuticals, just like many other organizations in the pharmaceutical industry, faced enormous challenges in terms of operating costs in the third quarter of the financial year 2007. The increase of operation costs, consequently, resulted in low-profit margins, rampant consolidations, the need for more investment in the industry, dry up of product pipelines, among many other challenges.
The objective of every organization include Wyeth, is to optimize production by maximizing revenues and profits, while at the same time minimizing costs. This has barely been the case in the pharmaceutical industry, and particularly Wyeth. The ultimate consequence is that the industry lost its protection because of not meeting the expected rate of profitability (Beede, 2009).
Beede, P., 2009, Wyeth Pharmaceuticals in 2009: Operational Transformation, pp. 1-22.
Tenant, G., 2001, Six Sigma: SPC and TQM in Manufacturing and Services, Farnham: Gower Publishing Ltd.
Lubar, S., 2012, Supply Chain and Operations Management, Retrieved on 15th May, 2014 from https://www4.uwm.edu/business/programs/bba/major/bbascom.cfm
Blanchard, D., 2010, Supply Chain Management Best Practices, John Wiley &Sons, New Jersey.