BA 561- Supply Chain Management

1. BA 561- Supply Chain Management Day 1 Introduction to Class

2. Agenda • Who am I • Syllabus • Who are you • Team building exercise / introduction to topic • Getting started for real?

3. Who am I? • Note- all slides are on the business school’s server and I will make sure that slides for future classes are available before class on Wednesday (usually by 5pm Tuesday). • Mark Pagell, Ph.D. • Informal / Professional - Mark is fine • Teaching background / qualifications • 3rd time teaching this course at OSU • Work background / qualifications • Research • Other things – ISM – next meeting on campus in February

4. Syllabus • Key points: • Where and when to find Mark • Book – coursepac in library – • Cases - Order directly from Harvard Business School Online and the ECCH online • Expectations • Performance appraisal • Note that this class is about 50% cases • this requires you to be an active and prepared member of the class • Individual and group based • Grades • Schedule- subject to change

5. How did I design the class? • Based on similar classes at top 25 business schools • Based on reality of 10 week term • Incorporated lots of feedback from the last two year’s students on the program and this specific course • More emphasis on theory and fewer cases • Less group work – more individual work • More structure for case presentations • Link to other classes- specifically LP and simulation projects

6. Class design - continued • In Reading 1 see the article entitled “Tomorrow’s Supply Manager” • Customer orientation • Interface across firm / chain – “relationships become key” • Communication – “create enthusiasm”, “demonstrating value” of ideas, “influence” • Comfort in unstructured settings • Win Win in micro and macro settings

7. Cases • How do I expect this to work? • I am assuming all students will all be prepared for all case discussions. • The group presenting is in charge of the class while they present – they do this as they see fit. • Other members of the class will not be passive during these presentations – if a case takes 3 hours because everyone is thinking and discussing I will not mind at all – if it takes 28 minutes because the class sat silently I will.

8. Cases continued • What are the main goals? • Apply information we have discussed • Introduce new topics in a realistic setting • Link topics together- which leads to • Case based classes are usually not linear • Sometimes you will have to use information from other classes • Sometimes the case is going to be “ahead” of the lecture • Sometimes we are going to go off on seeming tangents

9. Participation • One of the most important things a manager can know / remember / apply is that employees and chain members do what they are rewarded for • Assuming they understand the measurement and reward system • Like any measurement and reward system this one could have unintended consequences • Dogs and Skunks • I want you to participate in class – so 20% of your grade comes from participation • So what should you do if you are a typical grade obsessed graduate student?

10. So lets define participation • Does participation equal attendance? • No – attendance is an “order qualifier” • Obviously you must be in class to participate (3 strike rule) • So what is participation? • Asking and answering questions • Sharing “war stories” • Engaging in class conversations – and being able to support your proclamations • Engaging in group activities that occur in class • Is talking always better than staying silent • No!!!

11. Some final points on syllabus • I am running this class the way I would run it at any top 25 school • You are graduate students – I expect you to be self motivated and willing / able to work hard • This is an evolving class • We will do continuous improvement over the course of the term • We / I will be flexible • I expect to spend a lot of time on this class- and to enjoy it.

12. Philosophy • As just noted this is a graduate class • I am not going to spend time on material you should have had as prerequisites – if you don’t know it go find out. I will gladly take time outside of class to point you toward the information you are lacking – I won’t take time in class • The difference between MBA and undergraduate studies in business is application- the theory is about the same – hence the cases • This is a safe place to take a risk – and maybe even be wrong

13. Who are you? • Name- official as well as how you wished to be addressed • Where are you from? • Why are you at OSU? • Not just what you are studying, but why you chose this place to study it • Work experience • Managerial and McJobs • Anything else that the class or the professor should know?

14. Negotiation exercise • As a group: • First obviously do introductions phone numbers, e-mail and so on. • Second – we are going to do a fairly short (half hour) negotiation exercise to: • Give you a chance to get to know your team a bit • Introduce the subject

15. The exercise • This is pretty self explanatory – your job is to negotiate the best deal –for you • As part of the measurement and reward system theme: • I will buy dinner for the group that gets the highest score in the class • There is no second place

16. Some background for discussion • The supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information flows. Material and information flow both up and down the supply chain. • Supply Chain Management is the integration of these activities through improved supply chain relationships, to achieve a sustainable competitive advantage. (Handfield and Nichols)

17. This means what? • In general many organizations are needed to create value for a customer • In almost all of these organizations many functions create value for the customer • Reading one gives examples of these activities • Managing each function within each organization separately is not likely to optimize the value of the good or service the customer receives. • Bullwhips • HR at Boeing Wichita

18. The negotiation exercise • Consider the stance we take in a negotiation – level of “animosity” • Some behaviors observed in the class • “Creating” new categories – extreme initial offers • Pretending that concessions were important when they were not – or when you were actually moving in the direction you wanted to • Exaggerating positions • Getting information first • Bribery / payoffs • How much of this behavior would be accepted / expected in the “real” world? • New Yorker article

19. What happens when we overlap these behaviors with our SCM definition? • You have just shown that “typical” behaviors between business entities are: antagonistic, win/lose and probably done with no trust • I just defined SCM as managing all the processes needed to create value for the customer – simultaneously. • Hopefully you see the contradiction • The key point is that this is a new / novel / and difficult way to achieve competitive advantage.

20. Next class • Introduction to class- read reading 1 • Discuss case presentations • This will be one of the few pure lecture classes • Hopefully for most of you this will be review