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Management 12e richard draft END

Appendix
Managing the Value Chain, Web 2.0, and E-Business

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


The Organization as a Value Chain


The technical core is the heart of the organization: production of
product/service




The organization is a value chain



Operations Management – use of tools and techniques to ensure that
goods and services are delivered successfully to customers


Operations management pertains to the daily management of the
technical core

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.1 - The Organization as a Value Chain

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.2 - Differences between Manufacturing and Service
Organizations

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Supply Chain Management

Managing the sequence of suppliers and purchasers, covering all stages
of processing from obtaining raw materials to distributing finished
goods

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.3 - An Integrated Supply Chain

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.4 - Basic Production Layout

All the equipment and materials that relate to a specific function are grouped

together
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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.4 - Basic Production Layout

Machines and tasks are arranged according to the progressive steps in
producing a single product

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.4 - Basic Production Layout

People and equipment are grouped into cells that perform all the tasks needed to
serve a particular client

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.4 - Basic Production Layout

The product remains in one location, and employees and equipment are brought to it

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Technology Automation


Radio-Frequency Identification (RFID) – identification tags that emit
radio signals to track inventory



Digital Manufacturing Systems – the use of technology to adapt
production processes



Lean Thinking – combining advanced technology and effective
management to solve problems and cut waste

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Inventory Management


Inventory is the goods that an organization keeps on hand for the
production process; types of inventory:

Finished-goods inventory
Work-in-process inventory
Raw materials inventory



Inventory management is vital to an organization because it costs
money

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.5 - Large Inventories Hide Operations
Management Problems

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Just-in-Time Inventory


Designed to reduce inventory and associated costs



The aim is to push the time that inventory sits on shelves to zero



Also called stockless systems, zero inventory systems, or kanban
systems



Can aid in creating organizational flexibility

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Information Technology has Transformed
Management


Information technology consists of:

Hardware
Software
Telecommunications
Database management
Other data storage devices

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Information Technology has Transformed
Management


Information technology has positive implications for the practice of
management

Can connect people from around the world: Boundaries Dissolve and
Collaboration Reigns

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Knowledge Management and Web 2.0


Knowledge management includes systems to gather and organize
knowledge to foster a culture of learning and knowledge sharing

Business intelligence software
Expert-locator systems
Groupware (collaborative work systems)

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Knowledge Management and Web 2.0


Web 2.0 includes blogs, wikis, and social networks



Web 2.0 easily supports knowledge sharing

A blog includes individual posts, opinions, and ideas
Blogs are simple and informal
Large organizations use the micro-blogging service Twitter
A wiki uses software to create, share, and edit content

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Enterprise Resource Planning (ERP)


ERP integrates and optimizes all the various business processes



Provides information to entire enterprise



Links all areas of activities



Customers and suppliers are linked into the exchange as well



ERP can cut costs, shorten cycle time, enhance productivity, and improve
relationships with customers and suppliers

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.6 - Example of an ERP Network

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


The Internet and E-Business

E-business is any business
that takes place digitally over a
computer network

Intranet is an internal
communication system

E-commerce is electronic
business exchanges and
transactions

Extranet is an external
communications system to share
with other organizations

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.8 - The Key Components of E-Business for two Traditional
organizations

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


E-Business Strategy: Market Expansion


Internet provides a direct link to customers around the clock all over the
world



Corporations are using Facebook fan pages and applications to engage
customers



Web sites can help drive more traffic into the stores and expand to new
markets

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


A.9 - Strategies for Engaging Clicks with Bricks

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


E-Business Strategy: Increasing Efficiency


E-business strategies can increase productivity and cut costs



Companies are using Twitter to forecast sales



E-business can prompt significant productivity gains



Service organizations are using the Internet to negotiate and save money

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


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