Operations and Supply Management 4.0: Industry Insights, Case Studies and Best Practices (Future of Business and Finance)

Operations and Supply Management 4.0
	Abbreviations
	Contents
	About the Authors
	1: Introduction: The Value Chain
		1.1	 Challenges and Trends in the Value Chain
		1.2	 Input-Transformation-Output
		1.3	 The Value Chain and Value-Added
		1.4	 Operations Management 4.0
		1.5	 Supply Management 4.0
		1.6	 Focus on Value-Added Processes
			1.6.1	 Waste from Transportation
			1.6.2	 Waste from Inventory
			1.6.3	 Waste from Motion
			1.6.4	 Waste from Waiting
			1.6.5	 Waste from Overproduction
			1.6.6	 Waste from Overprocessing
			1.6.7	 Waste from Defects
		1.7	 Case Study: Supply Networks at BMW Group
		References
	2: Operations Management 4.0
		2.1	 Introduction to Operations Management 4.0
		2.2	 History of Operations Management 4.0
		2.3	 Elements of Operations Management 4.0
			2.3.1	 Virtual Factory
			2.3.2	 Digital Value Chain Integration
			2.3.3	 Lean Simulations
			2.3.4	 System Integration
			2.3.5	 Internet of Things
			2.3.6	 Cybersecurity
			2.3.7	 Cloud Computing
			2.3.8	 Additive Manufacturing
			2.3.9	 Augmented Reality
			2.3.10	 Big Data
		2.4	 Principles of Operations Management 4.0
			2.4.1	 Digital Synchronization of Networks
			2.4.2	 7R Principle
			2.4.3	 Gemba, Gembutsu und Genchi: Right Place of Happening
			2.4.4	 Muda, Muri, Mura
			2.4.5	 Heijunka
			2.4.6	 Poka Yoke
			2.4.7	 Jidoka
			2.4.8	 Chaku Chaku Line
		2.5	 Case Study: Mazda Operations Management Strategy
		References
	3: Supply Management 4.0
		3.1	 Supply Side
		3.2	 History of Supply Management 4.0 (Fig. 3.4)
		3.3	 Supply Management Objectives
		3.4	 Supply Management Process
			3.4.1	 Six Phases in Supply Management 4.0
			3.4.2	 Supplier Strategy
				3.4.2.1	 Supplier Segmentation
				3.4.2.2	 Commodity Strategies
				3.4.2.3	 Make-or-Buy Strategies
				3.4.2.4	 ABC-XYZ Analysis
				3.4.2.5	 Internationalization Strategies
				3.4.2.6	 Sustainability and CSR Strategies
				3.4.2.7	 Digitization Strategies
			3.4.3	 Supplier Selection
				3.4.3.1	 Supplier Selection Criteria
				3.4.3.2	 Supplier Risk Management
			3.4.4	 Supplier Evaluation
				3.4.4.1	 Appropriate Selection of Evaluation Criteria
				3.4.4.2	 Supplier Evaluation as Predictive and Preventive Tool
				3.4.4.3	 Supplier Evaluation as Management Tool
			3.4.5	 Supplier Development
				3.4.5.1	 Strategic Supplier Development
				3.4.5.2	 Preventive Supplier Development
				3.4.5.3	 Reactive Supplier Development
			3.4.6	 Supplier Integration
				3.4.6.1	 Supplier Coaching
				3.4.6.2	 International Purchasing Offices
			3.4.7	 Supplier Controlling
		3.5	 Control Via Digital Supplier Dashboards and Cockpits
		3.6	 Case Study: Apple’s Outsourcing Strategy
		References
	4: Lean Principles in Operations and Supply
		4.1	 5S Concept in Operations and Supply
			4.1.1	 Elements of Lean Principles
			4.1.2	 Zero-Defect Principle
			4.1.3	 Pull Principle
			4.1.4	 Flow Principle
			4.1.5	 Tact Principle
		4.2	 Andon
		4.3	 Poka Yoke
		4.4	 Gemba and Shop floor
		4.5	 Shadow Boards
		4.6	 Health and Safety
		4.7	 Overall Equipment Effectiveness (OEE)
		4.8	 Kanban
		4.9	 Supermarkets
		4.10	 Case Study: Porsche Production System
		References
	5: Industry 4.0 and Artificial Intelligence (AI)
		5.1	 Industry 4.0
		5.2	 Elements of Industry 4.0
		5.3	 Artificial Intelligence (AI)
		5.4	 Case Study: Google’s Self-Driving Cars
		References
	6: Operations and Supply as Integral Part of the Corporate Strategy
		6.1	 Definition of Strategic Management
		6.2	 Strategic Triangle
		6.3	 Strategic Analysis
		6.4	 Strategic Choice
		6.5	 Strategic Implementation
			6.5.1	 Assessment of Suitability, Acceptability, and Feasibility
			6.5.2	 Suitability
			6.5.3	 Acceptability
			6.5.4	 Feasibility
		6.6	 Strategic Pyramid
			6.6.1	 Lean Mission and Vision
			6.6.2	 Qualitative and Quantitative Lean Goals and Objectives
			6.6.3	 Core Competencies
			6.6.4	 Strategies
			6.6.5	 Strategic Architecture
			6.6.6	 Control and Execution
		6.7	 Strategies Must Focus on Value-Creation
		6.8	 Case Study: Siemens Strategy
		References
	7: The Cultural Change Towards Operations and Supply Excellence
		7.1	 Lean Management as Part of the Organizational Culture
			7.1.1	 Stories and Myths
			7.1.2	 Rituals and Routines
			7.1.3	 Symbols
			7.1.4	 Control Systems
			7.1.5	 Organizational Structures
			7.1.6	 Power Structures
			7.1.7	 Cultural Web to Change
		7.2	 Need for Change of Organizational Culture
		7.3	 Creating a Logical and Open Mind
		7.4	 Leadership Development and Culture
		7.5	 Emotional and Physical Strength
		7.6	 Case Study: Toyota
		References
	8: Global Supply Chain and Logistics
		8.1	 Globalization and Global Supply Networks
		8.2	 Supply Risk Prevention and Mitigation
		8.3	 Method of Global Risk Evaluation
		8.4	 Fair Trade
		8.5	 Glocal Supply Chains
		8.6	 Case Study: Lidl’s Glocal Supply Strategy
			8.6.1	 Grocer with Regional and Global Supply Chains
		References
	9: New Competencies and Skills in Operations and Supply
		9.1	 Operations Managers as the Coordinator of Value-Adding Activities
			9.1.1	 Overseeing Processes
			9.1.2	 Minimizing Operational Costs
			9.1.3	 Developing Strategies
			9.1.4	 Product Design
		9.2	 Competency Shift to the Innovative Supply Manager
			9.2.1	 Supply Managers as Project Manager and Interface to Suppliers
			9.2.2	 Supply Managers as Single Point of Contact
			9.2.3	 International and Intercultural Competencies
			9.2.4	 Life-Long Learning and Training
		9.3	 Case Study: Risk-Oriented Supply Management at Papenburg Shipyard
		References
	10: Change Management as Driver Towards Operations and Supply Management 4.0
		10.1	 Definition of Change Management
		10.2	 External and Internal Reasons for Change
		10.3	 Change Management Concepts
			10.3.1	 Change Management Concept of Kurt Lewin
			10.3.2	 Change Management Curve of Elisabeth Kübler-Ross
				10.3.2.1	 Step 1: Denial and Shock
				10.3.2.2	 Step 2: Anger
					Open Resistance
					Hidden Resistance
					Handling Resistance
				10.3.2.3	 Step 3: Confusion and Frustration
				10.3.2.4	 Step 4: Crisis—Valley of the Tears
				10.3.2.5	 Step 5: Acceptance and Try-it-Out
				10.3.2.6	 Step 6: Reorientation
				10.3.2.7	 Step 7: Integration
			10.3.3	 Change Management Phase Model of Kotter
			10.3.4	 ADKAR Change Management Model
			10.3.5	 McKinsey 7S Model
		10.4	 Case Study: Change Management in Nissan
		References
	11: Lean Product Development
		11.1	 Design for Lean Manufacturing
		11.2	 Lean Management Concepts in Product Development
			11.2.1	 Case Study: Apple’s Design Strategy
		Reference
	12: Performance Management Cycle, KPI, and OKR
		12.1	 The Performance Management Cycle
		12.2	 Performance Excellence in Operations and Supply
		12.3	 Key Performance Indicators (KPI)
		12.4	 Objective Key Results (OKR)
		12.5	 Case Study: Microsoft’s Strategy and Objectives
			12.5.1	 Applications and Infrastructure
			12.5.2	 Data and AI
			12.5.3	 Business Applications
			12.5.4	 Modern Workplace
			12.5.5	 Gaming
			12.5.6	 CSR
		References
	13: Sustainability Management and Social Responsibility
		13.1	 CSR and Lean Management
		13.2	 CSR Maturity Levels
		13.3	 Global Compact Principles
		13.4	 Case Study: Volkswagen’s Lean and Green Award
		Reference
	14: Audits and Quality Management Systems (QMS)
		14.1	 Lean Audits
			14.1.1	 Audit Types
			14.1.2	 Quality Management Systems (QMS)
		14.2	 Case Study: 5S Audits in Berliner Kindl Schultheiss Brewery
		Reference
	15: Outlook of Operations and Supply Management 5.0
		15.1	 Trends and Impacts on Operations and Supply Management
			15.1.1	 Flexible Sensors and Software
			15.1.2	 Predictive Algorithms and Virtual Maintenance
			15.1.3	 Digital Quality Systems and Poka Yoke
			15.1.4	 Digital Human Resources and Automated Training
			15.1.5	 Digital Resource Planning and Sustainability
		15.2	 Lean Management Integration
			15.2.1	 Case Study: Lean Supply in Airbus Through AirSupply
		References
	Glossary of Lean Management Terms