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A2 Resource Profit Model

This document provides an overview of the chapters in a resource/profit model textbook. Chapter 2 focuses on profitability as the primary business objective. Chapters 3 examines how strategy and value creation can lead to profitability. Chapter 4 looks at how effective processes organize resources to create value for customers. The following chapters discuss additional topics that impact customer value and business performance, including quality, timeliness, supply chain management, demand forecasting, inventory, logistics, lean systems, capacity, constraint management, facilities decisions, and workforce.

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Ivy Baay
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237 views2 pages

A2 Resource Profit Model

This document provides an overview of the chapters in a resource/profit model textbook. Chapter 2 focuses on profitability as the primary business objective. Chapters 3 examines how strategy and value creation can lead to profitability. Chapter 4 looks at how effective processes organize resources to create value for customers. The following chapters discuss additional topics that impact customer value and business performance, including quality, timeliness, supply chain management, demand forecasting, inventory, logistics, lean systems, capacity, constraint management, facilities decisions, and workforce.

Uploaded by

Ivy Baay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Resource/Profit Model - serves as an organizational model to put operations in a business context

Chapter 2 is devoted to Profitability

• It is the primary business objective


• It measures the long-run productivity of the business
• It is the outcome of effective strategy and value creation

Chapter 3 focuses on Strategy and Value

• Strategy consists of decisions about the way the firm will try to add value. How will the firm’s
resources be aligned?
• Who are the customers? What do they want? How will value be delivered?
• Value is determined by the customer
• Value created must exceed the cost of creating it, or there will be no profitability.
• Value is the basis upon which customers decide to purchase and the basis on which a business
competes.

Chapter 4 examines Processes

• Processes are used to organize resources so that they create value


• Effective Processes give rise to capabilities, which are valued by customers

Chapter 5 examines Cost

• Cost is the amount of scarce resources (usually money) consumed to achieve an objective
• Cost has a huge impact on the customer’s perception of value.
Chapters 6 and 7 are focused on Quality

• Examines quality and its impact on value, while Chapter 7 presents the commonly-used tools
associated with quality improvement.
• The customer determines is a product or service is high quality.

Chapter 8 looks at Timeliness

• Timeliness includes when and/or how fast something happens


• Scheduling a project management are key topics
• Timeliness has an impact on financial performance
• Timeliness is also a part of value for customers

Supply Chain Management is the topic of Chapter 9

• SCM recognizes that decisions within one business affect suppliers and customers

Chapter 10 examines Demand Forecasting

• A projection of future demand is necessary to determine resource requirements and obtain


them in the correct quantities, at the correct time, and at the lowest cost.

Chapter 11 covers Inventory

• Materials used to produce goods and services


• Raw, WIP, Finished Goods, MRO and Supplies

Logistics is the topic of Chapter 12

• Logistics is the movement and storage of goods in a supply chain.

Chapter 13 is devoted to Lean Systems

• A productive system that functions with little waste or excess, usually with low

Chapter 14 is devoted to Capacity

• Capacity is the level of productive output in a specified period of time

Chapter 15 focuses on Constraint Management

• Constraint Management is a framework for managing the constraints of a system in a way that
maximizes the system’s accomplishment of its goals.

Chapter 16 is devoted to Facilities decisions.

• Facilities are the land and buildings that house a business


• The decisions include location and layout decisions

The topic of Chapter 17 is Workforce

• The employees are a critical resource contributing to value creation

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