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APICS Operations Management Body of Knowledge Framework PDF

84 Pages·2008·2.02 MB·English
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APICS oPerAtIonS mAnAgement body of knowledge framework APICS Operations Management Body of Knowledge Framework First Edition APICS Operations Management Body of Knowledge Framework Publication History First Edition: 2008 Stock No. 01107 Copyright 2008 by APICS The Association for Operations Management International Standard Book Number: 1-55822-200-6 All rights reserved. No part of this publication covered by the copyright herein may be reproduced or copied in any form or by any means—graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems—without written permission of the publisher. APICS The Association for Operations Management 8430 West Bryn Mawr Avenue, Suite 1000 Chicago, IL 60631-3439 (800) 444-2742 (773) 867-1777 apics.org ©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition Table of Contents Preface and Acknowledgments Chapter 1 Introduction......................................................................................................................................1 1.1 Purpose of the Operations Management Body of Knowledge (OMBOK) .............................................................................1 1.2 Operations Management Framework ..................................................................1 1.3 Overview of APICS Certification..........................................................................2 1.4 Relevance of Operations Management................................................................4 Chapter 2 Strategy....................................................................................................................................7 2.1 Operations Strategy..............................................................................................7 2.2 Supply Chain Strategy........................................................................................10 2.3 Operations Management Links to Other Functional Areas..............................13 2.4 Product/Service Design ......................................................................................17 2.5 Strategic Capacity...............................................................................................19 2.6 Project Management (Strategic Uses of Project Management) .........................20 Chapter 3 Supply Chain.........................................................................................................................21 3.1 Responsiveness, Agility, and Efficiency.............................................................21 3.2 Supply Chain Visibility, Synchronization, and Bullwhip Minimization ...............................................................................21 3.3 Risk Management ..............................................................................................21 3.4 Locating Facilities ..............................................................................................22 3.5 Distribution .......................................................................................................22 3.6 Warehousing.......................................................................................................23 3.7 Logistics .............................................................................................................24 3.8 International Regulations .................................................................................26 3.9 Strategic Sourcing ..............................................................................................27 3.10 Customer Relationship Management (CRM) ...................................................29 3.11 Lean Management .............................................................................................30 Chapter 4 Processes...............................................................................................................................33 4.1 Process Mapping ...............................................................................................33 4.2 Manufacturing Process Environments .............................................................33 4.3 Service Processes ...............................................................................................36 4.4 Quality ................................................................................................................38 Chapter 5 Planning and Control............................................................................................................43 5.1 Enterprise Resources Planning (ERP)...............................................................44 5.2 Inventory: Dependent and Independent Demand ...........................................44 ©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition iii 5.3 Master Planning.................................................................................................46 5.4 Demand Management and Forecasting.............................................................46 5.5 Sales and Operations Planning (S&OP) ............................................................49 5.6 Material Requirements Planning (MRP) ..........................................................52 5.7 Distribution Requirements Planning (DRP) ....................................................54 5.8 Inventory Management (Cycle Stock and Safety Stock) ...................................54 5.9 Inventory Models ...............................................................................................55 5.10 Vendor-Managed Inventory (VMI) ...................................................................57 5.11 Collaborative Planning, Forecasting, and Replenishment (CPFR) ..............................................................................58 Chapter 6 Scheduling.............................................................................................................................59 6.1 Routing ..............................................................................................................59 6.2 Standards (Time Measurement) .......................................................................59 6.3 Scheduling Techniques ......................................................................................59 6.4 Master Production Schedule (MPS) and Final Assembly Schedule (FAS) .................................................................59 6.5 Dispatching ........................................................................................................60 6.6 Queuing and Simulation....................................................................................60 6.7 Theory of Constraints (TOC) .............................................................................60 6.8 Service Scheduling (Days On/Days Off) ...........................................................61 6.9 Advanced Planning Systems (APS) ...................................................................61 6.10 Production Activity Control (PAC) ....................................................................61 6.11 Manufacturing Execution Systems Management .............................................61 Chapter 7 Project Management.............................................................................................................63 7.1 Project Organization and Leadership ...............................................................63 7.2 Planning Processes ............................................................................................63 7.3 Project Metrics....................................................................................................64 Chapter 8 Advanced Manufacturing and Service Technology..............................................................67 8.1 Information Technology.....................................................................................67 8.2 Automated Manufacturing.................................................................................68 8.3 Advanced Service Systems.................................................................................69 Chapter 9 Emerging Operations Technologies ......................................................................................71 9.1 Web Collaboration/E-Business...........................................................................71 9.2 Warehouse Management Systems (WMS) ........................................................71 9.3 Virtual Team Collaboration ...............................................................................72 9.4 Rapid Prototyping .............................................................................................72 i v ©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition Preface As a member of APICS since 1980, I’ve used APICS resources to drive supply chain improvement. We ensured all planners at our company earned APICS certification, and we distributed hundreds of copies of the APICS Dictionary to establish a common vocabulary across our worldwide manufacturing plants. A few years ago, I was asked to lead the program to drive improvement across Hewlett- Packard’s operations. Upper management wanted us to provide tools for assessing our effectiveness and improving all aspects of our organization. Further, they asked us to provide a source for best practices in operations management. For this last request, I immediately thought of APICS The Association for Operations Management. Our company needed a way to find skilled practitioners, focused education, and relevant best practices across the field of Operations Management. This need led to my involvement with the APICS Body of Knowledge Professional Development Committee, first as an industry advisor to the committee, then as a leader in the APICS Operations Management Body of Knowledge (OMBOK) Framework project and chair of the committee. The OMBOK framework promises to be the enabler for the answers being called for by industry, academia, and our members. It is the Rosetta stone that will enable us to translate the functional needs of the organization into the skills required by our members. It will link members to the development sources—books and classes—that will help them develop those specific skills. It will link to APICS’ current and future certification products that provide evidence of our members’ skills. Our vision for the OMBOK is to be an evolving entity. While the framework is presented here in a particular hierarchy, we expect the material to be reorganized easily to meet different needs. We expect it to take advantage of evolving information technology in the way the information is created, maintained, presented, and used. This first edition of the OMBOK framework is a milestone in the execution of this vision. The creation of this framework involved hard work from dozens of APICS subject matter experts. In addition, many APICS professional staff members contributed their valuable talents in a variety of ways. I am grateful to these individuals at APICS; our combined efforts enabled this idea to come to successful fruition.We present the OMBOK to others and look forward to their contributions. Daniel Castle, CFPIM, CIRM, CSCP Chair, 2008 APICS Body of Knowledge Professional Development Committee ©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition v Preface The APICS Operations Management Body of Knowledge (OMBOK) Framework project is an excellent example of successful collaboration. The project began with the APICS Body of Knowledge Professional Development Committee and expanded to include additional practitioners and academicians. There were more than 450 topics in the original outline. The committee and the editors collaborated to refine and edit the topics. We solved consistency challenges to ensure the document’s usefulness for both the profession and the academic community. In July 2007, the editors and the committee met to answer a simple question, “What should be included in the OMBOK?” APICS excels in the area of planning and control, but strategy, logistics, and distribution also needed to be incorporated. We gathered information for each of the outline topics. We conducted a Delphi study, with more than 40 individuals completing the surveys. Domain experts were identified and asked to write brief descriptions of the major items in the framework. The APICS Certified in Production and Inventory Management and Certified Supply Chain Professional exam committees reviewed the document for scope and to ensure it was consistent with the content of the certification programs. The OMBOK framework is an accessible and organized master document for APICS. It completes the circle that already includes APICS core products—certifications, education, industry content, and the APICS Dictionary—while also encompassing all of them. This document is dynamic. It will take into account emerging practices, changing technologies, and feedback from industry and academia. APICS’ position as the organization that holds the intellectual leadership for the field of operations management is cemented by the publication of the APICS Operations Management Body of Knowledge Framework. I am proud to be a participant in this process. F. Robert Jacobs, Ph.D. Chase Faculty Fellow and Professor of Operations Management Kelley School of Business Indiana University Bloomington, Indiana vi Acknowledgments 2007 APICS Body of Knowledge Peter W. Stonebraker, Ph.D., CFPIM Professor of Operations Management Professional Development Northeastern Illinois University Committee Chicago, Illinois Mary Moravec, CPIM, Chair; Daniel Castle, CFPIM, CIRM, CSCP; Alan Section Authors Dunn, CPIM; Karen Eboch, CSCP; Jim Preston Blevins, CFPIM, CIRM, CSCP Greathouse, CPIM; Gary Langenwalter, CFPIM, CIRM; Peter W. Stonebraker, Bob Collins, CFPIM, CIRM, CSCP Ph.D., CFPIM Brian Dreckshage, CFPIM Howard Forman, CIRM, CSCP 2008 APICS Body of Richard Graff, CFPIM Knowledge Professional Anne Haberkorn, CFPIM, CIRM, CSCP Development Committee Rick Leach, CPIM, CSCP Daniel Castle, CFPIM, CIRM, CSCP, William R. Leedale, CFPIM, CIRM, CSCP Chair; Alan Dunn, CPIM; Karen Eboch, CSCP; Jim Greathouse, CPIM; F. Robert Daniel S. Marrone, Ph.D., CFPIM, CIRM Jacobs, Ph.D.; Erik Larson, Ph.D.; Ted Susan A. Neff, CPIM, CIRM, CSCP Lloyd, CPIM; Sibyl Melin, CPIM, CIRM, CSCP; Peter W. Stonebraker, Ph.D., John S. Newlyn, CFPIM, CIRM, CSCP CFPIM; Chad Stricklin; Jack Swaim Fran Scher, Ph.D. Joseph Schriever, CIRM, CSCP OMBOK Subcommittee Donald Sheldon, CFPIM, CIRM, CSCP Daniel Castle, CFPIM, CIRM, CSCP Stephen Shiffer Chair, Body of Knowledge Professional Joseph Walden, CFPIM Development Committee Process Excellence Program Manager Timothy Wilson, CFPIM, CIRM, CSCP Imaging & Printing Group Editors Hewlett-Packard Palo Alto, California Daniel Castle, CFPIM, CIRM, CSCP; F. Robert Jacobs, Ph.D. Karen Eboch, CSCP Reviewers APICS BGSU Chapter Faculty Advisor Department of Management Karen Eboch, CSCP; Fran Scher, Ph.D.; Bowling Green State University Peter W. Stonebraker, Ph.D., CFPIM; Bowling Green, Ohio Roly White, CFPIM, CIRM, CSCP F. Robert Jacobs, Ph.D. Chase Faculty Fellow Professor of Operations Management Kelley School of Business Indiana University Bloomington, Indiana vii CHAPTER 1 Introduction 1.1 Purpose of the Operations Management Body of Knowledge (OMBOK) The Operations Management Body of Knowledge outlines the areas of knowledge required to successfully manage the processes for producing and delivering products and services. The descriptions give an overview of each area and, when taken together, define a generally accepted view of the scope of Operations Management as a field of study. As Operations Management is a dynamic field, the OMBOK describes the cur- rent common perceptions surrounding it and will evolve over time to reflect changing perceptions and incorporate new approaches as their usage becomes prevalent. 1.1.1 Scope of Operations Management Operations Management focuses on the systematic direction of the processes involved in the sourcing, production, and delivery of products and services. It calls for a holis- tic or systems view of the processes that have a major impact on the costs required to operate a business. It assumes that many technical aspects of operation, particularly details related to engineering, may be handled by specialists. The concepts apply to the complete chain of activities in the production and delivery of products and ser- vices, including those that cross commercial and geographical boundaries. These con- cepts are applicable to nonoperations fields such as marketing, finance, and informa- tion technology—although this is not the primary focus of this document. 1.1.2 Taxonomy of Major Proven Concepts and Tools The OMBOK includes only the basic concepts and tools that are in common use. Con- cepts and tools that are starting to enter common usage may be listed as Emerging Operations Technologies in the framework. (See Section 9.) Additionally, there are many other significant concepts, tools, and techniques used in specific areas or indus- tries that may only be noted tangentially. 1.1.3 A Systems View of the Components of Operations Management Producing products and delivering services both involve a complex series of transfor- mational processes. Operations Management coordinates these individual processes. Management decisions generally consist of long-range strategic, intermediate-term tactical, and short-term operational and control decisions. The long-range strategic decisions are typically the focus of upper-level operations executives, while the inter- mediate- and short-term operations decisions relate to mid- and entry-level line and staff functions within the firm. 1.2 Operations Management Framework The OMBOK is organized according to a high-level framework that represents the areas of concern for the typical operations executive. This framework offers a conve- nient way to view the scope of the area; it is not intended to be used as an outline for APICS OMBOK Framework, First Edition 1

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