Learn to manage complex systems with an operations management major

Description of the video:

WEBVTT 1 00:00:00.000 --> 00:00:05.210 2 00:00:05.210 --> 00:00:08.060 I'm Kyle Cattani, a professor of supply chain 3 00:00:08.060 --> 00:00:10.410 management at the Kelley School of Business. 4 00:00:10.410 --> 00:00:13.260 And in this and two other short videos, 5 00:00:13.260 --> 00:00:15.950 I hope to pique your interest in the operations 6 00:00:15.950 --> 00:00:19.310 or supply chain management majors at Kelley. 7 00:00:19.310 --> 00:00:22.800 In this video, I will define supply chain management, 8 00:00:22.800 --> 00:00:25.670 discuss the personality and skill sets of our supply chain 9 00:00:25.670 --> 00:00:28.490 students, and present details about our operations 10 00:00:28.490 --> 00:00:31.610 major and our supply chain management major. 11 00:00:31.610 --> 00:00:34.070 A supply chain is comprised of all the companies 12 00:00:34.070 --> 00:00:37.020 that work together to get the product to the customer. 13 00:00:37.020 --> 00:00:39.830 I like the description by an executive in the toilet paper 14 00:00:39.830 --> 00:00:42.140 industry, who described his company's supply 15 00:00:42.140 --> 00:00:45.800 chain as from stump to rump. 16 00:00:45.800 --> 00:00:47.750 I apologize for that image, but I 17 00:00:47.750 --> 00:00:50.840 think it conveys the notion of the length and involvement 18 00:00:50.840 --> 00:00:53.150 of supply chains that begin with things 19 00:00:53.150 --> 00:00:56.690 taken right from the Earth and end with the customer. 20 00:00:56.690 --> 00:01:00.320 Supply chain management is about how we manage and control 21 00:01:00.320 --> 00:01:02.510 the flow of material, information, 22 00:01:02.510 --> 00:01:05.710 and money through this network of players who are getting 23 00:01:05.710 --> 00:01:08.140 the product to the customer. 24 00:01:08.140 --> 00:01:10.810 Every company has to figure out how to provide products 25 00:01:10.810 --> 00:01:14.230 to customers, and so there are a lot of career possibilities 26 00:01:14.230 --> 00:01:17.230 from the private to the public sector; from manufacturers 27 00:01:17.230 --> 00:01:19.930 to nongovernmental organizations, a.k.a. 28 00:01:19.930 --> 00:01:25.000 NGOs; from analyst positions to shop floor control. 29 00:01:25.000 --> 00:01:27.740 What kind of people choose supply chain management? 30 00:01:27.740 --> 00:01:29.630 Here are some of the attributes. 31 00:01:29.630 --> 00:01:32.590 People who like the tangible nature of getting products 32 00:01:32.590 --> 00:01:36.890 to customers, have common sense, can communicate, 33 00:01:36.890 --> 00:01:40.300 have an awareness of the world, are analytic, 34 00:01:40.300 --> 00:01:42.550 and are spreadsheet gurus. 35 00:01:42.550 --> 00:01:45.680 We have two related majors at the Kelley School of Business. 36 00:01:45.680 --> 00:01:48.800 Supply chain management and operations management, 37 00:01:48.800 --> 00:01:51.850 which is a subset of the supply chain management major. 38 00:01:51.850 --> 00:01:55.160 The supply chain major requires 21 credits. 39 00:01:55.160 --> 00:01:57.970 That's seven 3 credit courses with five 40 00:01:57.970 --> 00:02:00.850 of the seven required and two elective. 41 00:02:00.850 --> 00:02:04.190 The operations management major requires 15 credits. 42 00:02:04.190 --> 00:02:07.750 That's five 3 credit courses with three required and two 43 00:02:07.750 --> 00:02:08.800 electives. 44 00:02:08.800 --> 00:02:11.440 Let me show you the details. 45 00:02:11.440 --> 00:02:14.810 The supply chain major requires 21 credits as I said. 46 00:02:14.810 --> 00:02:16.420 Seven courses of three credits each 47 00:02:16.420 --> 00:02:19.460 with five required and at least two electives. 48 00:02:19.460 --> 00:02:22.520 The first required course, P 319, 49 00:02:22.520 --> 00:02:25.760 looks at how all the players in a supply chain plan, 50 00:02:25.760 --> 00:02:28.700 implement, and control the flow of information, materials, 51 00:02:28.700 --> 00:02:32.440 and services through all the players in the supply chain. 52 00:02:32.440 --> 00:02:35.440 The next three required courses focus on the supply chain 53 00:02:35.440 --> 00:02:38.260 from the perspective of a manufacturer looking upstream 54 00:02:38.260 --> 00:02:40.690 to suppliers and downstream to customers 55 00:02:40.690 --> 00:02:42.740 via logistics and distribution. 56 00:02:42.740 --> 00:02:46.120 P 429 looks at the processes in an operation 57 00:02:46.120 --> 00:02:48.650 such as a manufacturer or service provider, 58 00:02:48.650 --> 00:02:52.220 while P 320 looks upstream at sourcing from suppliers, 59 00:02:52.220 --> 00:02:55.660 and P 431 looks downstream at logistics and distribution 60 00:02:55.660 --> 00:02:56.480 functions. 61 00:02:56.480 --> 00:02:59.510 The final required course, P 481, 62 00:02:59.510 --> 00:03:02.290 is at the intersection of supply chain management and data 63 00:03:02.290 --> 00:03:05.500 analytics, and showcases a quantitative approach 64 00:03:05.500 --> 00:03:08.380 to modeling managerial trade-offs in the supply chain 65 00:03:08.380 --> 00:03:12.040 and selecting among data-driven alternatives. 66 00:03:12.040 --> 00:03:14.320 Then there are a number of elective courses 67 00:03:14.320 --> 00:03:17.950 to choose from, allowing you to focus on particular supply chain 68 00:03:17.950 --> 00:03:20.650 management topics of interest to you. 69 00:03:20.650 --> 00:03:24.130 The operations management major is a subset of the supply chain 70 00:03:24.130 --> 00:03:26.350 management major, with three of the five required 71 00:03:26.350 --> 00:03:28.330 courses from the supply chain management major 72 00:03:28.330 --> 00:03:31.690 and then two electives from the same list. 73 00:03:31.690 --> 00:03:34.730 Supply chain management has been around for millennia, 74 00:03:34.730 --> 00:03:37.150 but has dramatically increased in importance 75 00:03:37.150 --> 00:03:38.800 over the last few decades. 76 00:03:38.800 --> 00:03:41.720 With exciting new trends and opportunities, 77 00:03:41.720 --> 00:03:45.010 supply chain management looks to continue to grow. 78 00:03:45.010 --> 00:03:46.870 It is future-proof. 79 00:03:46.870 --> 00:03:49.240 One of the earliest supply chain examples 80 00:03:49.240 --> 00:03:51.700 is of the Nile River that transported materials 81 00:03:51.700 --> 00:03:54.230 from south to north using river current, 82 00:03:54.230 --> 00:03:57.770 and transported material from north to south using the wind. 83 00:03:57.770 --> 00:04:00.160 It is interesting that this is an early example 84 00:04:00.160 --> 00:04:03.490 of a sustainable supply chain, a topic of great interest to us 85 00:04:03.490 --> 00:04:05.170 in the 21st century. 86 00:04:05.170 --> 00:04:07.300 There are many exciting supply chain management 87 00:04:07.300 --> 00:04:08.950 topics on the docket. 88 00:04:08.950 --> 00:04:12.070 Artificial intelligence, or AI, shows tremendous promise 89 00:04:12.070 --> 00:04:15.280 in allowing supply chains to capitalize on the reams of data 90 00:04:15.280 --> 00:04:16.529 being collected. 91 00:04:16.529 --> 00:04:18.480 Robotics and self-driving vehicles 92 00:04:18.480 --> 00:04:20.459 can increase productivity and quality 93 00:04:20.459 --> 00:04:22.390 at ever decreasing costs. 94 00:04:22.390 --> 00:04:25.410 This is especially critical given shortages 95 00:04:25.410 --> 00:04:27.150 of truck drivers. 96 00:04:27.150 --> 00:04:30.450 The Internet of Things with all kinds of devices and machines 97 00:04:30.450 --> 00:04:33.550 and vehicles connected online and with supply chains, 98 00:04:33.550 --> 00:04:36.540 provide opportunities not available to the Egyptians 99 00:04:36.540 --> 00:04:40.140 or even supply chains from a couple of decades ago. 100 00:04:40.140 --> 00:04:43.840 Possible disruption to supply chains, as we saw with COVID-19, 101 00:04:43.840 --> 00:04:45.690 presents us opportunities to figure out 102 00:04:45.690 --> 00:04:49.090 how to make our supply chains more resilient and robust, 103 00:04:49.090 --> 00:04:52.000 in addition to trying to make them more sustainable. 104 00:04:52.000 --> 00:04:54.720 Sustainable goals often align with business goals 105 00:04:54.720 --> 00:04:58.330 to create efficiencies and reduce waste, such as packaging. 106 00:04:58.330 --> 00:05:00.930 The supply chain management and operations management majors 107 00:05:00.930 --> 00:05:03.130 are exciting and I hope you agree with me. 108 00:05:03.130 --> 00:05:04.780 They are future-proof. 109 00:05:04.780 --> 00:05:07.170 Please reach out to me, my department 110 00:05:07.170 --> 00:05:10.660 and/or your academic advisor with questions about the majors. 111 00:05:10.660 --> 00:05:12.870 I hope to see you in our supply chain and operations 112 00:05:12.870 --> 00:05:14.910 courses and majors. 113 00:05:14.910 --> 00:05:16.730 Thank you. 114 00:05:16.730 --> 00:05:22.000

Description of the video:

WEBVTT 1 00:00:00.000 --> 00:00:05.150 2 00:00:05.150 --> 00:00:07.970 Only a select few will make it all the way 3 00:00:07.970 --> 00:00:10.970 up the corporate ladder to become CEO. 4 00:00:10.970 --> 00:00:13.010 It is interesting to learn about these men 5 00:00:13.010 --> 00:00:14.660 and women and the paths they took 6 00:00:14.660 --> 00:00:17.810 to arrive at this rarefied air. 7 00:00:17.810 --> 00:00:21.080 Consider Tim Cook, the CEO of Apple. 8 00:00:21.080 --> 00:00:25.430 As may be typical of CEOs, Cook took a somewhat circuitous path 9 00:00:25.430 --> 00:00:26.460 to the top. 10 00:00:26.460 --> 00:00:29.030 He earned a bachelor's degree in industrial engineering 11 00:00:29.030 --> 00:00:32.670 from Auburn University, an MBA from Duke University. 12 00:00:32.670 --> 00:00:36.650 He worked for IBM, Intelligent Electronics, and Compaq 13 00:00:36.650 --> 00:00:40.340 before joining Apple in 1998 as a senior vice president 14 00:00:40.340 --> 00:00:42.330 for worldwide operations. 15 00:00:42.330 --> 00:00:44.600 He later became chief operating officer 16 00:00:44.600 --> 00:00:48.050 before becoming CEO in 2011. 17 00:00:48.050 --> 00:00:51.780 Is Tim Cook unique as a CEO that came up through operations? 18 00:00:51.780 --> 00:00:55.220 It turns out that operations is the most common path, 19 00:00:55.220 --> 00:00:59.160 more than the other business functions of finance at 21, 20 00:00:59.160 --> 00:01:02.510 marketing at 13, accounting at 11, management 21 00:01:02.510 --> 00:01:04.400 or consulting each at 3. 22 00:01:04.400 --> 00:01:06.830 Operations has the highest number 23 00:01:06.830 --> 00:01:11.150 of CEOs in the Fortune 100 at 25. 24 00:01:11.150 --> 00:01:13.940 Why does operations or the closely related supply 25 00:01:13.940 --> 00:01:17.930 chain management function make sense as a career path? 26 00:01:17.930 --> 00:01:21.240 Operations management focuses on planning, organizing, 27 00:01:21.240 --> 00:01:23.780 and managing the assets and resources of the organization 28 00:01:23.780 --> 00:01:26.120 that are used to provide the product 29 00:01:26.120 --> 00:01:28.430 the organization delivers. 30 00:01:28.430 --> 00:01:30.510 Every company provides a product. 31 00:01:30.510 --> 00:01:33.660 Finance makes sure the company has the money it needs. 32 00:01:33.660 --> 00:01:37.230 Marketing strives to convince customers to buy the product. 33 00:01:37.230 --> 00:01:39.350 But operations is the function that 34 00:01:39.350 --> 00:01:42.300 makes sure the product is available to the customer. 35 00:01:42.300 --> 00:01:45.650 It is perhaps the most practical of the business functions as it 36 00:01:45.650 --> 00:01:49.400 deals with the reality that a business cannot exist if it 37 00:01:49.400 --> 00:01:51.210 can't provide a product. 38 00:01:51.210 --> 00:01:54.230 When you go to a store and see the myriad products 39 00:01:54.230 --> 00:01:56.222 available to purchase, you may not 40 00:01:56.222 --> 00:01:57.680 think about the amount of effort it 41 00:01:57.680 --> 00:02:00.590 took to ensure that the right amount of the right products 42 00:02:00.590 --> 00:02:02.520 are ready for your selection. 43 00:02:02.520 --> 00:02:05.810 It is the operations function that operates behind the scenes 44 00:02:05.810 --> 00:02:07.170 to make it happen. 45 00:02:07.170 --> 00:02:10.400 And the skills that make one successful in this discipline 46 00:02:10.400 --> 00:02:13.820 are valued by companies from top to bottom. 47 00:02:13.820 --> 00:02:16.670 I'm Kyle Cattani, a professor of supply chain 48 00:02:16.670 --> 00:02:18.690 management at the Kelley School of Business. 49 00:02:18.690 --> 00:02:21.390 And in this and two other short videos, 50 00:02:21.390 --> 00:02:23.660 I hope to pique your interest in the operations 51 00:02:23.660 --> 00:02:26.930 or supply chain management majors at Kelley. 52 00:02:26.930 --> 00:02:28.610 In the next couple of slides, I'll 53 00:02:28.610 --> 00:02:30.440 discuss some of the job opportunities 54 00:02:30.440 --> 00:02:32.670 available to students in our two majors. 55 00:02:32.670 --> 00:02:35.540 I encourage you also to watch a video on the history of supply 56 00:02:35.540 --> 00:02:37.130 chain management and another video 57 00:02:37.130 --> 00:02:39.210 about the specifics of the majors. 58 00:02:39.210 --> 00:02:42.260 I hope you'll agree that majoring in either operations 59 00:02:42.260 --> 00:02:45.920 or in supply chain management is future-proof, even if you don't 60 00:02:45.920 --> 00:02:48.650 make it all the way to CEO. 61 00:02:48.650 --> 00:02:50.270 Here is a list of the top employers 62 00:02:50.270 --> 00:02:53.600 for graduates of the supply chain or operations management 63 00:02:53.600 --> 00:02:55.470 majors at the Kelley School of Business. 64 00:02:55.470 --> 00:02:58.670 You can see that many of the top employers are consulting firms, 65 00:02:58.670 --> 00:03:03.950 such as Ernst & Young, Grant Thornton, KPMG, PWC, BCG, 66 00:03:03.950 --> 00:03:07.490 or McKinsey, but also include other companies known 67 00:03:07.490 --> 00:03:09.600 for their expertise in supply chain management, 68 00:03:09.600 --> 00:03:13.460 such as Grainger whose mission statement is "We keep the world 69 00:03:13.460 --> 00:03:16.520 working," which they do by offering very quick delivery 70 00:03:16.520 --> 00:03:19.580 of approximately two million different maintenance, repair, 71 00:03:19.580 --> 00:03:23.280 and operating products and services to other companies. 72 00:03:23.280 --> 00:03:26.145 You may be aware of Target Corporation, who 73 00:03:26.145 --> 00:03:29.070 uses their expertise in supply chain management 74 00:03:29.070 --> 00:03:32.020 to achieve their motto of "Expect more. 75 00:03:32.020 --> 00:03:32.980 Pay less." 76 00:03:32.980 --> 00:03:35.010 Brand promise. 77 00:03:35.010 --> 00:03:38.460 Note that every company delivers products, either goods 78 00:03:38.460 --> 00:03:41.200 or services, or a combination of goods and services, 79 00:03:41.200 --> 00:03:43.890 and every company has and needs employees 80 00:03:43.890 --> 00:03:45.540 to run their operations. 81 00:03:45.540 --> 00:03:48.220 While all companies hire operations students, 82 00:03:48.220 --> 00:03:50.340 this list shows the 20 companies that 83 00:03:50.340 --> 00:03:52.750 hired the most from the Kelley School of Business. 84 00:03:52.750 --> 00:03:55.800 Some of the job opportunities available to our graduates 85 00:03:55.800 --> 00:03:57.660 of operations or supply chain management 86 00:03:57.660 --> 00:04:00.600 include positions in logistics, which 87 00:04:00.600 --> 00:04:03.300 is the task of getting products to their final destinations, 88 00:04:03.300 --> 00:04:06.990 available to customers; purchasing and sourcing, which 89 00:04:06.990 --> 00:04:08.880 looks upstream in the supply chain 90 00:04:08.880 --> 00:04:11.460 and refers to the process of selecting and managing 91 00:04:11.460 --> 00:04:12.990 the vendors who provide materials 92 00:04:12.990 --> 00:04:17.430 or services to an organization; supply chain managers, which 93 00:04:17.430 --> 00:04:19.680 is a more general name for many roles involved 94 00:04:19.680 --> 00:04:22.980 in the management of the flow of goods and services in the firm; 95 00:04:22.980 --> 00:04:26.610 consultants, who can specialize in advising clients about how 96 00:04:26.610 --> 00:04:29.360 to improve their supply chains; analysts, 97 00:04:29.360 --> 00:04:31.970 who analyze data and methods to predict and improve 98 00:04:31.970 --> 00:04:35.570 a company's delivery of products and services to its customers; 99 00:04:35.570 --> 00:04:38.960 project managers, who coordinate and oversee the entire process 100 00:04:38.960 --> 00:04:41.180 of a project from start to finish; 101 00:04:41.180 --> 00:04:45.200 and Lean and Six Sigma, which is a set of methodologies and tools 102 00:04:45.200 --> 00:04:48.480 to improve business processes by reducing defects and errors, 103 00:04:48.480 --> 00:04:50.540 minimizing variation, and increasing 104 00:04:50.540 --> 00:04:52.760 quality and efficiency. 105 00:04:52.760 --> 00:04:56.480 In general, these and other operations or supply chain jobs 106 00:04:56.480 --> 00:05:00.320 are about helping firms use their resources most effectively 107 00:05:00.320 --> 00:05:03.320 to get products to customers. 108 00:05:03.320 --> 00:05:05.930 I hope that you consider the operations or supply chain 109 00:05:05.930 --> 00:05:07.230 majors at Kelley. 110 00:05:07.230 --> 00:05:09.390 You may or may not make it to CEO. 111 00:05:09.390 --> 00:05:11.240 I certainly hope that you do. 112 00:05:11.240 --> 00:05:15.030 And I hope that you remember the Kelley School when it happens. 113 00:05:15.030 --> 00:05:17.220 But even if you don't, more importantly, 114 00:05:17.220 --> 00:05:20.870 I hope that you set yourself up for a rewarding and fruitful 115 00:05:20.870 --> 00:05:21.870 career. 116 00:05:21.870 --> 00:05:24.180 Please reach out to me, my department, 117 00:05:24.180 --> 00:05:27.630 and/or your academic advisor with questions about the majors. 118 00:05:27.630 --> 00:05:29.620 Thank you. 119 00:05:29.620 --> 00:05:34.000