INTRODUCTION

Lecturer: Nguyen Van Dung Ph.D.

Slides are based on slides accompanied the book “OPERATIONS AND
SUPPLY CHAIN MANAGEMENT”, with improvement from the lecturer

Chapter One
McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
 LO1-1: Identify the elements of operations and
supply chain management.
 LO1-2: Know the potential career opportunities in
operations and supply chain management.
 LO1-3: Recognize the major concepts that define
the operations and supply chain management field.
 LO1-4: Evaluate the efficiency of a firm.

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What Is Operations and Supply Chain
Management?
 Operations and supply chain management (OSCM)
is: The design, operation, and improvement of the
systems that create and delivery the firm’s
primary products and services
 Operations and supply chain management (OSCM)
is
A functional field of business
 Concerned with the management of the entire
production/delivery system

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Strategy, Processes, and Analytics
 Operations and supply chain management involves
 Product design
 Purchasing
 Manufacturing
 Service operations
 Logistics
 Distribution
 Success depends upon
 Strategy
 Processes to deliver products and services
 Analytics to support the decisions needed to manage the firm

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Operations and Supply Chain
Processes

Operations Supply
Chain
Manufacturing and Processes that move
service processes information and
used to transform material to and
resources into from the firm
products

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 Operations
 For example, a manufacturing process would produce some
type of physical product, such as an automobile or a
computer.

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 Operations
 A service process would produce an intangible product, such
as a call center that provides information to customers stranded
(bị kẹt) on the highway or a hospital that treats accident
victims in an emergency room.

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 Operations
 Planning the use of these processes involves analyzing capacity,
labor, and material needs over time.
 Ensuring quality and making ongoing improvements to these
processes are needed to manage these processes.

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 Supply chain
 These include the logistics processes that physically move
product and the warehousing and storage processes that
position products for quick delivery to the customer.
 Supply chain in this context refers to providing products and
service to plants and warehouses at the input end and also
the supply of products and service to the customer on the
output end of the supply chain

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Chuỗi cung ứng (Supply Chain) vs Chuỗi
vận chuyển (Logistics)
 Logistics: là việc cung cấp, lên kế hoạch và quản trị
các phương tiện, nhân lực và vật tư để hỗ trợ hoặc đảm
bảo cho việc tác nghiệp dịch vụ hoặc kinh doanh.
 Supply Chain: làm nhiệm vụ lập kế hoạch, điều phối
sao cho dòng chảy của sản phẩm/vật tư, dịch vụ, thông
tin và tài chính từ nhà sản xuất qua nhiều tổ chức, công
ty trung gian cho đến tận tay người tiêu dùng một cách
hiệu quả và hợp lý nhất.
 Logistics là một bộ phận cấu thành nên Supply Chain
và đây là sự khác biệt giữa hai ngành này:
 Về tầm ảnh hưởng: Logistics có tầm ảnh hưởng ngắn
hoặc trung hạn, còn Supply Chain có tầm ảnh hưởng dài
hạn. 1-10
 Chuỗi cung ứng (Supply Chain) vs Chuỗi
vận chuyển (Logistics)
 Về mục tiêu: Logistics mong muốn đạt được giảm chi phí
vận chuyển nhưng tăng được chất lượng dịch vụ; còn
Supply Chain lại đặt mục tiêu giảm được chi phí trên toàn
chiến dịch phân phối dựa trên việc tăng cường khả năng
cộng tác và phối hợp, do đó tăng hiệu quả trên toàn bộ
hoạt động Logistics.
 Về công việc: Logistics quản trị các hoạt động bao gồm
vận tải, kho bãi, dự báo, đơn hàng, giao nhận, dịch vụ
khách hàng...còn Supply Chain bao gồm tất cả các hoạt
động của Logistcs và quản trị nguồn cung cấp, sản xuất,
hợp tác và phối hợp của các đối tác, khách hàng...

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 Chuỗi cung ứng (Supply Chain) vs Chuỗi
vận chuyển (Logistics)
 Về phạm vi hoạt động: Logistics chủ yếu quản lý bên
trong doanh nghiệp; Supply Chain quản lý cả bên trong
lẫn bên ngoài, đối nội lẫn đối ngoại để mang lại hiệu quả
tối ưu nhất cho doanh nghiệp.
 Nguồn: https://www.cfvg.org/cong-dong/blog/show/chui-cung-
ng-supply-chain-vs-chui-vn-chuyn-logistics

Nguồn: https://www.michiganstateuniversityonline.com/resources/supply-
chain/is-logistics-the-same-as-supply-chain-management/ 1-12
Process Steps for Men’s Nylon Supplex
Parkas

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1-14
Activity 1.1

 Draw the operation process of

1 manufacturing firm
 1 service firm

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1-16
Activity 1.2

 Draw the supply chain of

1 manufacturing firm
 1 service firm

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1-18
Supply chain of Vinamilk
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Each Section of OSCM: What Is
Accomplished?

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1-21
Process Activities
 Planning (hoạch định) – processes needed to operate an
existing supply chain
 Sourcing (tìm nguồn cung) – selection of suppliers that will
deliver the goods and services needed to create the firm’s
product
 Making (làm ra) – producing the major product or service
 Delivering (phân phối) – logistics processes such as selecting
carriers, coordinating the movement of goods and information,
and collecting payments from customers
 Returning (nhận hàng trả lại) – receiving worn-out (hao mòn),
excess (dư thừa), and/or defective (có khuyết điểm) products
back from customers

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Process Activities

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 Goods versus Services

Goods Services

Pure (thuần túy) Goods Core (cốt lõi) Goods Core Services Pure Services

Intangible
Tangible
Interaction with customer required
Less interaction with customers
Inherently heterogeneous
Often homogeneous
Perishable (không tồn trữ được)/time dependent
Not perishable – can be inventoried
Defined and evaluated as a package of features

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The Goods–Services Continuum

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The Goods–Services Continuum (liên tục)

 Almost any product offering is a combination of goods

and services.
 The continuum captures the main focus of the business
and spans from firms that just produce products to those
that only provide services.
 Pure goods industries have become low-margin
commodity businesses, and in order to differentiate,
they are often adding some services.
 Some examples are providing help with logistical
aspects of stocking items, maintaining extensive
information databases, and providing consulting advice

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The Goods–Services Continuum

 Core goods providers already provide a significant

service component as part of their businesses. For
example, automobile manufacturers provide
extensive spare parts distribution services to
support repair centers at dealers.

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Product–service bundling
 Product–service bundling (gói tích hợp):
When a firm builds service activities into its
product offerings to create additional value
for the customer
 Such services include maintenance, spare part
provisioning, training, and, in some cases, total
systems design and R&D.
 A well-known pioneer in this area is IBM, which
treats its business as a service business and
views physical goods as a small part of the
“business solutions” it provides its customers.

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Bài đọc: Dịch vụ đám mây của IBM dành
riêng cho ngành tài chính
 https://congthuong.vn/dich-vu-dam-may-cua-ibm-
danh-rieng-cho-nganh-tai-chinh-154986.html

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Careers in Operations and Supply
Chain Management

Plant manager Hospital Branch Department

administrator manager store manager

Call center Supply chain Purchasing Quality control

manager manager manager manager

Business process Lean Project Production

improvement improvement manager control analyst
analyst manager

Facilities Chief
manager operating
officer

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Định hướng nghề nghiệp trong quản trị vận
hành và chuỗi cung ứng

Giám đốc nhà Quản trị bệnh Giám đốc chi Giám đốc
máy viện nhánh thương xá

Giám đốc Call Giám đốc chuỗi Giám đốc thu Giám đốc kiểm
Center cung ứng mua soát chất lượng

Phân tích viên

Giám đốc cải Giám đốc dự
cải tiến qui trình Giám sát SX
tiến tinh gọn án
kinh doanh

Giám đốc phân

COO
xưởng

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Historical Development of Operations and Supply
Chain Management

Manufacturing strategy developed

Late 1970s
Just-in-time (JIT) production
Early 1980s pioneered by the Japanese
Mid 1980s Service quality and productivity
Total quality management Early 1990s
(TQM) and Quality certification Six-sigma quality
programs Mid 1990s Supply chain
Business process management (SCM)
Late 1990s
reengineering (BPR)
Electronic commerce
Early 2000s Service science

Mid 2010s
Business analytics

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Lịch sử phát triển của Quản trị vận hành và chuỗi
cung ứng

Cuối 1970s Chiến lược SX được phát triển

Hình thức SX đúng thời hạn do

Đầu 1980s người Nhật khởi xướng
Giữa 1980s Chất lượng DV và năng suất
Quản trị chất lượng toàn Đầu 1990s
diện (TQM) và chương trình Chất lượng 6 sigma
chứng nhận chất lượng Giữa 1990s Quản trị chuỗi cung
Tái cấu trúc qui trình
Cuối 1990s ứng
kinh doanh
Thương mại điện tử
Đầu 2000s Khoa học Dvụ

Giữa 2010s
Phân luận Kinh
doanh
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 Manufacturing Strategy Paradigm (mô hình,
mẫu hình)
 The late 1970s and early 1980s saw the development of the
manufacturing strategy paradigm, which emphasized how
manufacturing executives could use their factories’ capabilities
as strategic competitive weapons.
 Central to this thinking was the notion of manufacturing trade-
offs among such performance measures as low cost, high
quality, and high flexibility
 Manufacturing strategy: Emphasizes how a factory’s capabilities
could be used strategically to gain advantage over a competing
company

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 Just-in-time (JIT)
 JIT: An integrated set of activities designed to achieve high-
volume production using minimal inventories of parts that arrive
exactly when they are needed.
 JIT production was the major breakthrough in manufacturing
philosophy, pioneered by the Japanese.
 Reading: https://logistics4vn.com/just-in-time-la-gi-jit-la-gi

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 Just In Time là gì?

 Just In Time (JIT) là một khái niệm trong sản xuất hiện đại. Tóm lược ngắn gọn
nhất của JIT là: “Đúng sản phẩm – với đúng số lượng – tại đúng nơi – vào đúng
thời điểm cần thiết”.
 Trong JIT, các quy trình không tạo ra giá trị gia tăng trong quá trình sản xuất hay
cung ứng dịch vụ phải bị bãi bỏ. Và như vậy, hệ thống chỉ sản xuất ra những cái
mà khách hàng muốn.
 Nói cách khác, JIT là hệ thống điều hành sản xuất trong đó các luồng nguyên
nhiên vật liệu, hàng hóa và sản phẩm lưu hành trong quá trình sản xuất và phân
phối được lập kế hoạch chi tiết nhất trong từng bước, sao cho quy trình tiếp theo
có thể thực hiện ngay khi quy trình hiện thời chấm dứt. Qua đó, không có hạng
mục nào trong quá trình sản xuất rơi vào tình trạng để không, chờ xử lý, không có
nhân công hay thiết bị nào phải đợi để có đầu vào vận hành.
 JIT còn được áp dụng trong cả suốt quy trình cho đến bán hàng. Số lượng hàng
bán và luồng hàng điều động sẽ gần khớp với số lượng hàng sản xuất ra, tránh
tồn đọng vốn và tồn kho hàng không cần thiết. Có những công ty đã có lượng
hàng tồn gần như bằng không.
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 Just in Time by Toyota: The Smartest Production
System in The World
 https://www.youtube.com/watch?v=cAUXHJBB5CM

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 Total quality control (TQC)
 Total quality control (TQC): Aggressively seeks to
eliminate causes of production defects

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 Lean Manufacturing
 To achieve high customer service with minimum levels of
inventory Investment
 Reading: https://www.itgvietnam.com/lean-manufacturing-la-
gi-san-xuat-tinh-gon-la-gi/

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 Service Quality and Productivity
 The unique approach to quality and productivity pioneered
by McDonald’s has been so successful that it stands as a
reference point in thinking about how to deliver high-volume
standardized services

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 Total Quality Management and
Quality Certification
 Total quality management (TQM): Managing the entire
organization so it excels in all dimensions of products and
services important to the customer
 The ISO 9000 certification standards, created by the
International Organization for Standardization, now play a
major role in setting quality standards for global
manufacturers.
 Many companies require that their vendors meet these
standards as a condition for obtaining contracts

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 Business process reengineering
 Business process reengineering (BPR) (Tái cấu trúc qui trình
kinh doanh): An approach to improving business processes
that seeks to make revolutionary changes as opposed to
evolutionary (small) changes.
 The need to become lean to remain competitive in the global
economic recession in the 1990s pushed companies to seek
innovations in the processes by which they run their
operations.
 It does this by taking a fresh look at what the organization is
trying to do in all its business processes, and then eliminating
non-value-added steps and computerizing the remaining ones
to achieve the desired outcome
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 Six Sigma
 Six Sigma: A statistical term to describe the quality goal of
no more than 3.4 defects out of every million units. Also
refers to a quality improvement philosophy and program
 Originally developed in the 1980s as part of total quality
management, Six Sigma in the 1990s saw a dramatic
expansion as an extensive set of diagnostic tools was
developed.
 The tools are now applied not only to manufacturing
applications, but also to nonmanufacturing processes such as
accounts receivable (khoản phải thu), sales, and research and
development.

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 Six Sigma
 Six Sigma has been applied to environmental, health, and
safety services at companies and is now being utilized in
research and development, finance, information systems,
legal, marketing, public affairs, and human resource
processes
 Reading: https://resources.base.vn/productivity/six-sigma-la-
gi-cam-nang-6-sigma-danh-cho-nguoi-moi-tim-hieu-428

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 Supply chain management
 Supply chain management: apply a total system approach
to managing the flow of information, materials, and services
from raw material suppliers through factories and warehouses
to the end customer.
 Trends such as outsourcing and mass customization are
forcing companies to find flexible ways to meet customer
demand. The focus is on optimizing core activities to maximize
the speed of response to changes in customer expectations
 Mass customization (Tùy biến đại chúng): The ability to
produce a unique product exactly to a particular customer’s
requirements
 https://crmviet.vn/customization-la-gi/
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 Ví dụ về Mass customization
 Dell là một trong thương hiệu thành công với Mass
customization. Thay vì tập trung vào sản xuất hàng
loạt sản xuất, khách hàng sẽ là người trực tiếp
tham gia vào quá trình sản xuất. Khách hàng có thể
lựa chọn các thành phần, thiết bị đi kèm với máy
tính. Doanh thu mà Dell đạt được gấp 3,4 lần so với
chiến lược trước.

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 Electronic commerce
 The quick adoption of the Internet and the World Wide Web
during the late 1990s was remarkable.
 Electronic commerce: the use of the Internet as an essential
element of business activity
 The use of Web pages, forms, and interactive search engines
has changed the way people collect information, shop, and
communicate.
 It has changed the way operations managers coordinate and
execute production and distribution functions.

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 Lịch Sử Thương Mại Điện Tử - Kỉ Nguyên Mua
Sắm Mới Của Nhân Loại
 https://www.youtube.com/watch?v=JB-
zROqGoBU

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 Sustainability and the triple bottom
line
 Sustainability: the ability to maintain balance in a system
 Triple bottom line: a business strategy that includes social,
economic, and environmental criteria

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 Business analytics
 Business analytics: the use of current business data to solve
business problems using mathematical analysis

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Current Issues in OSCM
 Coordinating relationships between members of SC
 Optimizing global network of suppliers, producers,
and distributors
 Managing customer touch points
 Raising awareness of OSCM as a competitive
weapon
 Sustainability and triple bottom line

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 Coordinating relationships between
members of SC
 Coordinating the relationships between mutually supportive but
separate organizations.
 Recently, there has been a dramatic surge in the outsourcing of
parts and services as companies seek to minimize costs.
 Many companies now even outsource major corporate functions,
such as information systems, product development and design,
engineering services, and distribution.
 The ability to coordinate these activities is a significant challenge
for today’s operations and supply chain manager

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 Bài đọc: Outsourcing – Xu hướng
“Thuê ngoài” của doanh nghiệp
 Từ những năm của thế kỷ XX, Mỹ đã thuê ngoài mảng phần mềm cho các
công ty ở Ấn Độ và Trung Quốc.
 Được biết tới là nhà sản xuất điện thoại di động lớn nhất thế giới,
Samsung Electronics có truyền thống outsource sản xuất hầu hết
sản phẩm của mình tại các quốc gia khác trên thế giới. Mấy năm
gần đây, Samsung đã chuyển phần lớn hoạt động sản xuất sang
Việt Nam, đồng thời giảm bớt quy mô ở Hàn Quốc và Trung Quốc
để hạ giá thành sản phẩm. Bán hàng cũng là một mảng quan trọng
nhưng Samsung cũng không tập trung làm phần này nữa. Hãy
tưởng tượng khi “thuê ngoài” mảng này, bộ máy nặng nề của
Samsung Electronic đã trống một mảng to như Thế giới di động!
 Source: https://ooc.vn/outsourcing-xu-huong-thue-ngoai-cua-doanh-nghiep/

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 Optimizing global network of suppliers,
producers, and distributors
 The implementation of global enterprise resource planning
systems, now common in large companies, has challenged
managers to use all of this information.
 Operations and supply chain analytics involves leveraging this
information for making decisions related to resources such as
inventory, transportation, and production.

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 Managing customer touch points (điểm tiếp
xúc khách hàng)
 As companies strive to cut costs, they often scrimp on (cắt giảm) the
customer support personnel (and training) required to effectively
staff service departments, help lines, and checkout counters.
 This leads to the frustrations such as being placed in call center
limbo (sự quên lãng) seemingly for hours, getting bad advice when
finally interacting with a company rep, and so on.
 The issue here is to recognize that making resource utilization
decisions must capture the implicit costs of lost customers as well as
the direct costs of staffing.

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 Raising senior management awareness of OSCM as a
significant competitive weapon

 Many senior executives entered the organization through finance,

strategy, or marketing, built their reputations on work in these
areas, and as a result often take OSCM for granted.
 This can be a critical mistake when we realize how profitable
companies such as Amazon, Apple, and Southwest Airlines are.
These are companies where executives have creatively used OSCM
for competitive advantage.

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Efficiency, Effectiveness, and Value

Efficiency (hiệu năng)

• Doing something at the lowest possible cost

Effectiveness (hiệu quả)

• Doing the right things to create the most value for your
customer

Value

• The attractiveness of a product relative to its cost

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Efficiency (hiệu năng)
 The goal of an efficient process is to produce a
good or provide a service by using the smallest
input of resources.
 In general, these resources are the material, labor,
equipment, and facilities used in the OSCM
processes.

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 Effectiveness (hiệu quả)
 For example, to be effective at a grocery store it is
important to have plenty of operating check-out
lines even though they may often stand idle.

This is a recognition
that the customer’s
time is valuable and
that they do not like
waiting to be served in
the check-out line

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Efficiency vs. Effectiveness
 Often, maximizing effectiveness and efficiency at
the same time creates conflict between the two
goals.
 We see this trade-off every day in our lives. At the
check-out lines, being efficient means using the
fewest people possible to ring up customers. Being
effective, though, means minimizing the amount of
time customers need to wait in line.

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Value
 Defined as quality divided by
price ❑ Smart management
can achieve high
levels of value
 Quality is the attractiveness of
the product, considering its
features and durability (độ
bền).
 If you can provide the customer with a better
car without changing price, value has gone up.
 If you can give the customer a better car at a
lower price, value goes way up
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 Efficiency and Wall Street
 Comparing firms from an operations and supply chain view is
important to investors because the relative cost of providing a
good or service is essential to high earnings growth.
 Earnings growth is a function of the firm’s profitability, and
profit can be increased through higher sales and/or reduced
cost.
 Highly efficient firms usually shine when demand drops during
recession periods because they often can continue to make a
profit due to their low-cost structure.

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  An interesting relationship between the costs related
to OSCM functions and profit is the
direct impact of a reduction of cost in one of these
functions on the profit margin of the firm

An interesting relationship between the costs related to OSCM functions and profit is the
direct impact of a reduction of cost in one of these functions on the profit margin of the
firm.
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Efficiency and Wall Street

1-64
 Receivables turnover ratio
 Receivables turnover ratio (Hệ số quay vòng khoản phải thu): the
number of times receivables are collected, on average, during the
fiscal year

 Credit sales: Bán chịu

 The receivables turnover ratio measures a company’s efficiency in
collecting its sales on credit.
 Accounts receivable (khoản phải thu) represent the indirect interest-
free loans that the company is providing to its clients.
 A higher receivables ratio implies either that the company operates
on a cash basis or that its extension of credit and collection methods
1-65
are efficient.
 Receivables turnover ratio
 A high ratio reflects a short lapse of time between sales and the
collection of cash, while a low number means collection takes
longer.
 The lower the ratio, the longer receivables are being held and
the higher the risk of them not being collected.
 A ratio that is low by industry standards will generally indicate
that the business needs to improve its credit policies and
collection procedures.

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 Inventory turnover
 Inventory turnover (hệ số quay vòng hàng tồn kho): the average
number of times inventory is sold and replaced during the fiscal
year

 This ratio measures the company’s efficiency in turning its

inventory into sales.
 Its purpose is to measure the liquidity or speed of inventory
usage. This ratio is generally compared against industry
averages. A low inventory turnover ratio is a signal of
inefficiency, because inventory ties up capital that could be used
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 Inventory turnover
 A low inventory turnover ratio might imply either poor sales or
excess inventory relative to sales.
 A low turnover ratio can indicate poor liquidity, possible
overstocking, and obsolescence (quá đát), but it may also
reflect a planned inventory buildup in the case of material
shortages or in anticipation of rapidly rising prices.
 A high inventory turnover ratio implies either strong sales or
ineffective buying (the firm may be buying too often and in
small quantities, driving up the buying price).

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 Inventory turnover
 A high inventory turnover ratio can indicate better liquidity, but
it can also indicate shortages or inadequate inventory levels,
which may lead to a loss in business.
 Generally, a high inventory turnover ratio when compared to
competitors’ is good.

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 Asset turnover

 The amount of sales generated for every dollar’s worth

of assets

 Asset turnover (Hệ số quay vòng tổng tài sản) measures

a firm’s efficiency at using its assets in generating sales
revenue-the higher the number, the better.
 This ratio varies significantly by industry, so comparisons
between unrelated businesses are not useful.

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Asset turnover
 Asset turnover is more general and includes the
plants, warehouses, equipment, and other assets
owned by the firm.
 Since many of these facilities are needed to support
the operations and supply chain activities, the ratio
can be significantly impacted by, for example,
investments in technology and outsourcing.

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