Introduction to Operations and Supply Chain Management

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Unit 1
Introduction to Operation &
Supply Chain Management
Dr. Prashant B. Kalaskar

Syllabus
• Introduction to Operations & SCM: Definitions, concepts,
significance & functions of Operations & SCM. Evolution
from Manufacturing to Operations Management,
Physical distributions to Logistics to SCM, Physical goods
& Service perspectives.
• Quality: Definition from Customer & Manufacturer’s
view, Concept of internal customers, Overview of TQM &
Lean Management, Impact of Global Competition,
Technological change, Ethical & Environmental issues on
Operations & Supply Chain Functions.
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Operations Management
• Operations: Design & Transformation process of
Materials
• Operations Management: Management of Design &
Transformation Process to convert Raw materials into
Required finished products.
• Operation is Value Creation Process
• Operation Process allows to develop competitive
Advantage to the Organization
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Supply Chain Management (SCM)
• It is the Management of Flow of Goods
• It comprise of;
1) Sourcing of Materials
2) Movement & Storage of Raw Materials
3) Work in Process & Finished Products Inventory
4) Movement of Finished Products to Point of Consumption
• SCM includes Design, Planning, Execution, Control &
Monitoring of Supply Chain activities to create value &
fulfill demands of the customers
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Importance of Operations Management
• Examining the process of Creation of Goods &
Services using available knowledge & Techniques to
resolve the problems
• Modifying the operation process to match with the
market conditions
• Value Creation in the market to win over competition
• Growth & Profitability of the Organization
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• Operation Management focus on Structural Components;
- Product Design
- Process & Process Design
- Capacity of Production &
- Location
• Operation Management focus on Infrastructural
Components;
- Quality Manufacturing
- Outsourcing
- Planning of Transformation Process
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• Definition: by Joseph Monks
“ The process whereby resources, flowing within a
system are combined and transformed by a
controlled manner to add value in accordance with
policies (SOP) communicated by Management”
Companies are either manufacturing Goods or Services to
earn profits
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Concept of Operations Management
• Important concept of Operations Management is how
well the Products & Services are produced to:
- Compete with the competitors,
- Effective & Efficient Manufacturing in terms of cost &
Quality
- How does the process is allowing to generate profits for
the Organization
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Functions of Operations Management
• Planning: What to be manufactured & Why?
• Organizing: What is involved (Required [5M’s]) & Why?
• Motivating: What will bring the best performance from
the people?
• Directing: Who will decide what & when?
• Controlling: Who will judge results & with which
standards?
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Functions of SCM
• Sourcing of Materials
• Procurement
• Make or Buy decision
• Materials Planning
• Inventory Management
• Receiving & Dispatch
• Stores & Warehousing
• Materials Handling
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Evolution of Manufacturing to Operations
Industrial Revolution
• Began in the 1770’s in England and spread to the rest of
Europe and to the United States during the 19th
century.
• Substituted human power by machine power.
• Most significant machine was steam engine.
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What did take place
• Production became fast and low costly one
• Economies of scale
• Development of standard gauging system
• Factories grew rapidly
• Provided countless jobs
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Scientific Management
• Widely changed the management of factories.
• Developed by Frederick Winslow Taylor, the father of
Scientific Management.
• Scientific Management was based on observation,
measurement, analysis and improvement of work
methods and economic incentives.
• Studied to identify the best method for doing each job.
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• Elements of Scientific Management
1) Separation of Planning & Doing
2) Functional Foremanship: (Supervisors are the functional
foreman like Route clerk, Time & Cost Clerk, Speed Boss,
Gang Boss, inspector etc.)
3) Job Analysis: to find out best way of doing a job
- Time Study
- Motion Study
- Fatigue Study
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• Elements of Scientific Management
4) Standardization: Standards should be kept in work period,
instruments, tools, working conditions etc.
5) Selection & Training of Employees: Tasks assigned to the
workers should be suitable
6) Financial Incentives:
7) Economy: Economy can be achieved through making
resources more productive
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• 1776 -Specialization of labor in manufacturing -Adam
Smith
• 1799 -Interchangeable parts, cost accounting -Eli
Viihitney and others
• 1832 -Division of labor by skill; assignment of jobs by skill;
basics of time study -Charles Babbage
• 1900- Scientific management time study and work study
developed; dividing planning and doing of work -
Frederick W. Taylor
• 1900- Motion study of jobs -Frank B. Gilbreth
(Consideration of limitation of mental & physical capacity of
workers & good physical environment for motivation)
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• The concept of “Interchangeable Parts” was applied by
Eli Whitney, an American inventor.
• The basis for interchangeable parts was to standardize
parts.
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• Any part in a batch of parts would
fit any automobile coming down the
assembly line.
• Result was a high decrease in
assembly time and cost.

• Henry Gantt - recognized the value of nonmonetary
rewards to motivate workers, and developed a widely
used system for scheduling, called Gantt charts.
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• WW-II to 1960’s-Operation Research:
- After WW-II, the focus was shifted from Micro
environment to Macro environment
- Operation Research, a Multidisciplinary approach was
evolved for problem solving
- A quantitative approach for identification & allocation of
resources
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• 70’s & 80’s: The Japanese Challenge:
- Japanese system didn’t apply Operation Research, but
was able to deliver high quality cars at lower cost to
European markets.
- Major focus was on Toyota Production System (TPS)
developed by Taiichi Ohno which is usually categorized
under Lean Production or World Class Manufacturing
Program.
- Taiichi Ohno identified 7 types of wastes (Muda) to form
a basis for process improvements
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• 7 wastes (Muda) for Process Improvement in TPS:
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• Other concepts evolved as cross disciplinary function
under Toyota Production System were;
- Material Requirement Planning (MRP)
- Just in Time (JIT)
- Total Quality Management (TQM)
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Cost & Efficiency
Defect Reduction &
Product Quality Customer Driven Design
Production Flexibility
Fast Responses &
Exceptional Service
1970’s & Later 1980’s 1990’s 2000’s & Beyond
Cost Value
Mass
Production
Lean
Manufacturing
Agile Manufacturing
Service Excellence
Functional
Specialization
Gross Functional
Coordination
High Performance
Work Systems

• Physical Distribution: It is the process of physical
movement of goods to the ultimate customer at right
time & right place
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Physical Distribution to Logistics to SCM
Customer Order
Receipt
Order Transmission Order Processing
Order Deliver to
Customer
Order
Transportation
Order Mfg.

Physical Distribution
• Physical Distribution largely determines the customer
service including transportation (may include 3PL) &
warehousing of finished products, including marketing ,
until the product is being consumed
• Improper physical distribution may result in loss of sales
• Physical distribution depends on accurate accumulation
of orders from Market.
• Right forecasting of demand, right physical distribution
(Outbound Logistics)
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Key Elements of Physical Distribution
1) Identification of Segments by Service Requirement:
2) Communications & Order Processing:
3) Production & Warehouse Location:
4) Inventory Management:
5) Transportation:
6) Materials handling:
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Key Elements of Physical Distribution
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Availability
Speed
Communications & Order Processing
Production
Warehouse
Location
Inventory Management
TransportationMaterials Handling
Service Requirement

Physical Distribution to Logistics Mgmnt.
• Physical distribution is related to outbound logistics
• Logistics Management includes Inbound & Outbound
Logistics
• Logistics Management is related to efficient & effective
forward & reverse, inbound & outbound transport of
goods, services & information between the point of
origin to point of consumption.
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• Supply Chain Management (SCM) allows Organization to
perform better through inter-firm linkages.
• SCM allows sharing of inter-firm benefits & risks
• SCM includes sourcing, procurement, conversion &
logistics management activities including collaboration
with channel partners, 3rd party service providers &
customers.
• SCM integrates supply & demand management within
and across the company
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Inbound Logistics Operations Outbound Logistics Sales & Mktg. After Sales Services
Supplier of Raw Materials
Product/Services
Information
Finance

Physical Goods & Services Perspective
• Physical Goods are those tangible products can be
consumed by the customer.
• Some goods are perishable to be consumed at Once:
Food Products & the are required to be replaced
• Some goods are consumed for some long time with part
consumption & once finished are required to be replaced
ex: Toothpaste
• Some goods are durable goods are replaced after longs
time use for some specific reasons: TV, Garments, car
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Physical Goods & Services Perspective
• Services are the Intangible products consumed/utilized
by the customers
• Ex: Food is physical good & restaurant ambience is the
service
• Telephone/Mobile is physical good calling is the services
• TV is the Physical goods, Television program are the
services
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Examples of Physical Goods & Services
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Goods are physical items that include raw materials, parts,
subassemblies, and final products.
•Automobile
•Computer
•Oven
•Shampoo
Services are activities that provide some combination of
time, location, form or psychological value.
•Air travel
•Education
•Haircut
•Legal counsel

Difference between Goods & Services
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Services Products
1 Intangible Tangible
2 Requires face to face interaction with
Customers
Products are produced at one place &
marketed at other place
3 Heterogeneous Products changes time
to time
Variation in product is planned as per market
requirement
4 Perishable & Time Dependent Goods can be stored back
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Services may accompany with Goods are accompanied with communication
& Marketing Inputs
Supporting Facilities: Decoration
Facilitating Goods: Food Items along
with serving
Explicit Services: Training of Service
personnel
Implicit Services: Attitude of Service
Personnel, Security

Quality
• What is Quality..?
• Why Quality is important to
customer as well manufacturer..?
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Quality
• Think about your past experiences staying at various
hotels.
• Did you stay at a “quality” hotel?
• What about the experience made it a “quality”
experience for you?
• Think about a product you bought. How can you define
its “quality”?
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Quality in different areas of society
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Area Examples
Airlines On-time, comfortable, low-cost service
Health Care
Correct diagnosis, minimum wait time, lower cost,
security
Food Services Good product, fast delivery, good environment
Postal Services Fast delivery, correct delivery, cost containment
Academia
Proper preparation for future, on-time knowledge
delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Military Rapid deployment, decreased wages, no graft
Automotive Defect-free, Mileage, Spare Parts availability, fast service
Communications Clearer, faster, cheaper service

Quality
• What is quality?
• “meeting/exceeding the customer requirements”
• What is reliability?
• “It is the ability of product and service to continue to
meet the customer requirements”
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Definition of Quality
• Quality is also defined as “excellence in the product or
service that fulfills or exceeds the expectations of the
customer”
• Though quality is an abstract perception, it has a
quantitative measure- Q= (P / E )
where Q=quality, P= performance (as measured/mentioned)
by the Mfgr.), and E = expectations (of the customer).
• There are 8 dimensions of quality that may be found in
products that produce customer satisfaction.
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8 Dimensions of Quality
Garvin (1987)
1) Performance:
- Will the product/service do the intended job?
2) Reliability:
- How often does the product/service fail?
3) Durability:
- How long does the product/service last?
4) Serviceability:
- How easy to repair the product / to solve the problems in
service?
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Dimensions of Quality
Garvin (1987)
5) Aesthetics:
- What does the product/service look/smell/sound/feel like?
6) Features:
- What does the product do/ service give? (Speed/ Mielage)
7) Perceived Quality:
- What is the reputation of the company or its products/
services?
8) Conformance to Standards:
- Is the product/service made exactly as the
designer/standard intended?
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Definitions of Quality
• Philips B Crosby- “Quality is Conformance to
requirements”
• W. Edwards Deming- “A predictable degree of uniformity
and dependability at low cost and suited to market”
• Bill Conway- “Development, manufacture, administration
and distribution of consistently low cost and products
and services that customers need and want”
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Approaches to define Quality
• Transcendent (Inspiring) Approach
- Quality is absolute and universally recognizable.
- It is common notion used (known) by laymen
- There is no subjective judgment and is estimated by
using/looking at the product
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• Product Based Approach
- Attributes of a particular product in a specific category
- These attributes are accepted as benchmark of quality
by the industry
- Others in the same industry try to produce close to this
quality
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• User Based Approach
- Defined as “Fitness for use”
- Viewed from user’s perspective and is dependent on
how well does the product meet needs of the
consumer.
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• Production Based Approach
- An outcome of engineering or operational excellence
and is measured in terms of quality of conformance
- The producer produces the product as per the
specifications
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• Value Based Approach
- Quality is viewed in context of price
- Quality is satisfactory, if it provides desired
performance at an acceptable price
- Customer looks at the total value proposition and not
the price alone
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ice
Benefits
Value
Pr
=

Manufacturer’s view on Quality
• Different Views of Quality that can Exist in the Same Firm
• Customer’s View: Rightful level of expectations to buy a
product at lowest possible cost to get high degree of
Satisfaction
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Engineering Marketing Accounting
A product
engineer might
associate quality
with product
design
A marketing
executive might
associate quality
with quick
Customer
acceptance
An accountant
might associate
quality with low
product cost

Total Quality Management (TQM)
• In late 1980’s a concept of TQM evolved..
• Not only the manufacturing unit but the entire
organization is considered as one unit responsible for
maintaining the quality.
• TQM can be defined as, “Managing the entire
Organization in such a way that, it excels in all
dimensions of Products and Services that are important
to the customers”
• TQM is the process approach and not Product/Service
Approach
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“Quality is everyone’s responsibility”
-Edward Deming
• The integration of all processes and functions of the firm
in the task of ensuring a product’s quality throughout its
life cycle (mfg. & usage) .
• Measurement of Success:
– 100% Customer Satisfaction
• Method of Achievement:
– Continuous Improvement
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• TQM comprise of three basic areas;
1) Product Quality
2) Process Quality &
3) Human Quality
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• 1. The customer makes the ultimate determination of
quality.
• 2. Top management must provide leadership and
support for all quality initiatives.
• 3. Preventing variability is the key of producing high
quality.
• 4. Quality goals are a moving target, thereby requiring
a commitment toward continuous improvement.
• 5. Improving quality requires the establishment of
effective metrics. We must speak with data and facts
not just opinions.
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TQM Six Basic Concepts
1. A committed and involved management to provide
long-term-top-to-bottom organizational support.
2. An unwavering (constant) focus on the customer, both
internally and externally.
3. Effective evaluation of the business and production
process.
4. Continuous improvement of the business and
production process.
5. Treating suppliers as partners.
6. Establish performance measures for the process.
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5 Main Advantages of TQM
1. Encourages a strategic approach to management at the
operational level through involving multiple departments in
cross-functional improvements and systemic innovation
processes;
2. Provides high ROI through improved efficiency;
3. Works equally well for service and manufacturing sectors;
4. Allows organizations to take advantage of developments for
improving operations as cross-functional processes; and
5. Fits an orientation toward inter-organizational collaboration
and strategic alliances by establishing a culture of
collaboration among different departments within
organization.
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Lean Management (LM)
• Lean Management is derived from Toyota Production
Systems
• In TPS it started with,
- Reducing the time to change the dies for stamping press
- This moved in to reduction in inventory,
- Which resulted in JIT inventory Management
• This allowed to reduce overall need for less space for
warehouse, less requirement of forklifts, cost etc.
• Lean is simply “doing more with Less”
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• Lean Management is achievable by,
“identifying & eliminating non value added processes & by
providing a skillful training to the employees to do so”
“Any fluctuation in performance increases waste”
Lean Management eliminates wastes, so as to increase,
- Product’s Quality
- Profitability
- Productivity
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TPS
Goal: Highest Quality, Lowest Cost, Short Lead Time
Just in Time Jidoka
Continuous
Flow,
Takt Time,
Pull System
Stop & Notify
Abnormalities,
Separate
Man’s &
Machine’s
Work
Heijunka Standardized Work Kaizen
Stability
Toyota
Production
System (TPS)
Toyota Production
System (TPS) is
mainly based on 2
pillars of Just in Time
& Jidoka

Lean Management
• Cycle time is the time from when the Operation begins to the
point-of-time at which the operation ends.
• Simply the time required at which the product begins to
manufacture and the point at which the finished product is
ready. It depends upon Process
• Lead Time: It is the time period between placing an order
(Product/Material) and actual receiving of the order
• Takt Time: Beat time, Rhythm like Heart Beat.
• Takt time is the maximum amount of time in which a product
needs to be produced in order to satisfy customer demand
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Lean Management
• Continuous Flow: Uninterrupted production process without
stoppage even for maintenance.
• Pull System: Replenishing only those resources which are
consumed or producing what is demanded by the customers
and not based on forecasting
• Autonomation: A feature of machine, “automation with a
human touch” in Jidoka
• (Autonomation aims to prevent the production of defective products,
eliminate overproduction and focus attention on understanding the
problems and ensuring that they do not reoccur.)
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Lean Management
• The main objective of every company is to earn
maximum Profit
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(`)Profit Maximization
Satisfy Customer &
their Demands
Best Prices Supply in Time
Lowest Cost
Shortest Lead
Time
Best Quality

Lean Management
• Basic Elements of Lean Management
1) Muda: 7 Types of Wastes
2) Kaizen: Continuous Improvement (CIP)
3) Standards
4) Visual management
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Lean Management
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• 7 wastes (Muda) for Process Improvement in TPS:

7 wastes (Muda)
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1) Motion: Excessive motion on floor shop, will reduce efficiency and
increases chances of errors
2) High Inventory: Higher inventory (RM/Finished Pdts) may result in
mishandling, theft, damage, increase in cost of production
3) Transport: Excessive Transportation will increase the time and
cost of transportation, loss to company
4) Scrap in Rework: Any rework in finishing of final product, will
increase scrap, which is wastage
5) Waiting: Waiting by workers for the next task, is wastage of time
and efficiency
6) Over Processing: Over processing of finished product will increase
the cost of production
7) Over Production: blockage of capital and space of storage

Lean Management
• Kaizen: Continuous Improvement
• Without Standards, there can not be Improvement
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Lean Management
• Standards should be used everywhere in work environment
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Lean Management
• Visual Management: It is an important method for a
shop floor manager to manage to the daily business
easily
• Visual management shows any difference between
normal and abnormal production processes
• Examples: (Floor Marking)
• Red: Defects, scrap, rework and red tag areas
• Green: Finished goods
• Orange: Materials or product held for inspection
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Lean Management
• Jidoka: Automation with a human touch (Autonomation)
• Practice of stopping a manual line or process when
something goes amiss (wrong)
• Jidoka helps to detect a problem earlier
• Jidoka avoids the spread of bad practices
• A level of human intelligence is transferred into
automated machinery
• Result: No defects in products & improved productivity
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Automation is focused on labor reduction.
Autonomation (Jidoka) is focused on quality improvement, and the independence of
the man from the process
At Toyota, all machines are set up with automatic stop machines.

Lean Management
• Heijunka: Level out the Load
• Reduce Muri – the overburden of people and equipment
that results in problems of safety, quality, and
performance (vs. sustainable pace)
• Reduce Mura – (unevenness). If the workload or the type
of work fluctuates wildly from one moment to the other,
people (and machines) never "get into the rhythm" back
and waste time switching between tasks.
• The production stalls and restarts all the time.
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Lean Management
• Heijunka: Minimizing Waste – Plant Loading
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Not uniform Jan. Units Feb. Units Mar. Units Total
1,200 3,500 4,300 9,000
Uniform Jan. Units Feb. Units Mar. Units Total
3,000 3,000 3,000 9,000
Suppose we operate a production plant that produces a single
product (XYZ).
The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.

Lean Management
• Kanban: Meaning Signboard or Billboard (Visual Cards)
• Visual & physical signaling system that ties together the
whole Lean Production system.
• Kanban systems combined with unique scheduling tools,
dramatically reduces inventory levels.
• Enhances supplier/customer relationships and improves
the accuracy of manufacturing schedules.
• A signal is sent to produce and deliver a new shipment
when material is consumed.
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Lean Management
• Kanban: The core of Kanban means:
• Visualize the workflow
- Split the work into pieces, write each item on a card and
put on the wall.
- Use named columns to illustrate where each item is in
the workflow.
• Limit WIP (work in progress) – assign clear limits to how
many items may be in progress at each workflow state.
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Lean Management
• Kanban: The core of Kanban means:
• Measure the lead time (average time to complete one
item, called as “cycle time”), optimize the process to
make lead time as small and predictable as possible.
• This is a direct implementation of a lean pull scheduling
system.
Kanban and JIT Video
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Kanban in Lean Management
• Six Rule of Kanban (signboards) at Toyota
1) Later process picks up the number of items as indicated by
the Kanban at the earlier process.
2) Earlier process produces items in the quantity and sequence
as indicated by the Kanban.
3) No items are made or transported without a Kanban.
4) Always attach a Kanban to the goods.
5) Defective products are not sent on to the subsequent
process. The result is 100% defect-free goods.
6) Kanban increases the sensitivity.
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Kanban-Conceptual Diagram
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Impact of Global Competition on OSCM
Globalization: Social and economic integration through
open trade
Reasons of Globalization:
1) Access to Cheaper Labour and Manufacturing cost
2) To access to the knowledge and skills of people
3) To access to resources
4) Access to new markets
5) To access Location to reduce logistics and distribution
cost.
6) To take advantage of tax and financial incentives
7) market requirements, global rivalry, and development in
international freight transport system
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Globalization: Social and economic integration through
open trade
• Drivers of Supply Chain Management
There are 5 different drivers of SCM
1) Production (Dell, McDonald)
2) Inventory (HP)
3) Location (Toyota)
4) Transportation (FedEx)
5) Information (P&G)
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1) Production (Dell, McDonald): McDonald Changed their
product content to match customer requirement, Dell by mfg.
product as per customer orders
2) Inventory (HP): Hewlett & Packard, used less than 50%
inventory to unknown or low demand products and a buffer
inventory to high demand products using multi-echelon
Inventory optimization tool
3) Location (Toyota): Toyota have 51 mfg. units in 26 regions in
global market, with objective to access cheaper labours, skills,
technology, distribution cost and wider distribution network,
lower taxes, etc.
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4) Transportation (FedEx): It is the most outsourced component
of supply chain management. Receiving orders through
telephone/internet, allowing customers to view, change order
status, use of multiple transportation systems (Flights, Trains,
Road, etc.), Hub & Spoke system, for effective delivery to customer
5) Information (P&G): It helps companies to take correct
decisions in business to by solving the issues with retailers and
distributors. Information sharing system helped to Procter &
Gamble to gain a competitive advantage on competitors, and to
make future planning for manufacturing, and distributing of
Pamper disposable diapers.
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• Globalization has increased the cross border
competition
• A company need to consider not only domestic, but
also a global competition.
• Global Competition forced companies;
- To increase quality of products (Operations) and
- Increase speed of delivery of products (SCM), to remain
in competition as well to earn maximum customer
satisfaction
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• Geographical Integration:
- Developing worldwide facilities of operations & SCM to
achieve regional economic integration by selling products
in multiple markets
- Global integration is also a result of development of ICT
& Transport System
- Examples: Express delivery by FedEx, DHL through their
planes, hubs systems, tracking systems, faster delivery
resulted in improved services and customer satisfaction
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• Functional Integration:
- Not only operations & material management
department but,
- Marketing
- Finance
- HRD
- MIS…etc
Are the various departments are now required to be
integrated to have a better coordination
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• Sectorial Integration:
- Not only Retail or wholesale or just the Transport
sector are integrated for optimization of OSCM but
there is a perceived need of integration of other
sectors .
- Examples: a Banking sector integration with a
Automobile sector or electronic sector or retail sector
- Objective: Risk Sharing & Expansion of Business
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Ethical Issues in Operation Management
The rules or standards governing the conduct of a
person or members of a profession.
“The discipline dealing with what is good and bad and
with moral duty and obligation.”
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Ethical Issues in SCM
• Supply Chain is the network of retailers, distributors,
transporters, storage facilities and suppliers that
participate in the sale, delivery and production of a
particular product.
• In the simplest terms, Supply Chain Management
(SCM) lets an organization get the Right Products and
services to the Right place they're needed at the Right
time, in the Right quantity and at an acceptable cost
(Right price) (5R’s).
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Ethics in Supply Chain Management
• Efficiently managing this process involves overseeing
relationships with suppliers and customers,
controlling inventory, forecasting demand and
getting constant feedback on what's happening at
every link in the chain.
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Ethical & Environmental Issues in OSCM
• Roots of Ethics
• Professional ethics is about managing relations which is
a crucial part in SCM.
• Successful companies use supply chains not only to
reduce cost and complement the product but also to
nurture long-term value added relationships.
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• Why society is concerned about ethics within SCM?
Environmental Effects
• Treatment plants for water, treatment of solid waste, gases
Health and Safety
• In Food Industry- uses of pesticides, hormone-treatment
of animals
Consumer Rights
• Legislations about right to safety, right to choose, right to
be heard.
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• Ethical Model/Process
• Economic responsibilities: Supply Products and
Services.
• Legal Responsibilities: Obey Laws.
• Ethical Responsibilities: Conduct business in a way that
is morally consistent with the beliefs of society
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• Reasons for Increasing Concern about Ethics
The pressure is coming from various sources. A wide
range of stakeholders are interested in the social,
ethical and environmental performance of the retail
industry’s supply chain.
Different Stakeholders will have different expectations
from the companies
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• Stakeholders Concern about Ethics
1) General Public: Companies should follow
Responsibilities
2) Investors: Assumes Managing issues, is Managing a
Company and SCM and investments
3) Media: Media is powerful to expose and explore
Company
4) Consumers: More educated and sensitive consumers
5) Government and NGO’s: Strong and Legal Bindings
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• Various Ethical Issues in SCM:
1) Child Labour Issues
2) Labour wage issues and Labour Supply Issues
3) Environmental issues
4) Quality Products and Cost to Consumers Issues & Safety
5) Suppliers Management Issues
6) Ethical Behavior will all Supply Chain Partners
7) Workers Safety, Working Conditions and Workers Rights
8) Consumer Protection etc.
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• Example:
• Nike
- Code of Conduct- Improve working conditions in factories:
Forced labor, Child Labor, Compensation, Benefits, Hours of
work, Safety and health, Documentations and inspection.
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For Any Query……
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+919975770407
Email: pbkalaskar@sinhgad.edu
prashantkalaskar007@gmail.com

Introduction to Operations and Supply Chain Management

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Introduction to Operations and Supply Chain Management