Introduction to Operations Management MBA 570

slide1. Introduction to Operations Management MBA 570Summer 2011<br>
slide2. Business Environment<br>
slide3. Accounting
Bookkeeping
Pensions
Audits
Tax Business Environment<br>
slide4. Business Environment<br>
slide5. Business Environment Finance
Investments
Capital
Stock Market<br>
slide6. Business Environment<br>
slide7. Business Environment Economics
Nceufhkurreffg
(the study of how the forces of supply and demand allocate scarce resources*)<br>
slide8. Business Environment<br>
slide9. Business Environment Management
Organization Behavior
Policy
Strategy<br>
slide10. Business Environment<br>
slide11. Business Environment Marketing
Sales,
Promotion
Market Research
Consumer Behavior<br>
slide12. Business Environment<br>
slide13. Business Environment Information Systems
The application of people, technologies, and procedures to solve business problems**<br>
slide14. Business Environment<br>
slide15. Business Environment Operations
The efficient and effective ,
Design, control,
Maintenance, and improvement of processes to produce and distribute products and services***<br>
slide16. Operations Management Designing Products and Services<br>
slide17. Operations Management Designing Products and Services<br>
slide18. Operations Management Designing Products and Services<br>
slide19. Operations Management Facility Location and Layout<br>
slide20. Operations Management Scheduling Operations<br>
slide21. Operations Management Scheduling Operations<br>
slide22. Operations Management Inventory Control<br>
slide23. Operations Management Quality Management<br>
slide24. What Is Operations Management? Production is the creation of goods and services
Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs
Operations management affects:
- Companies’ ability to compete
- Nation’s ability to compete internationally<br>
slide25. The Operations function Consists of all activities directly related to producing goods or providing services<br>
slide26. Value-Added The difference between the cost of inputs and the value or price of outputs.<br>
slide27. Types of Transformations Physical Manufacturing

Locational Transportation

Exchange Retailing

Storage Warehousing

Physiological Health Care

Informational Telecommunications<br>
slide28. Food Processor Inputs Processing Outputs<br>
slide29. Hospital Process Inputs Processing Outputs<br>
slide30. Where to locate your business? OM Decisions<br>
slide31. What type of process to use? OM Decisions<br>
slide32. Number of workers to employ? OM Decisions Number of workers scheduled at each station?<br>
slide33. Forecasting park demands Reducing wait times Managing projects More than just McDonalds…<br>
slide34. Operations is About Making Business Run Better More Efficiently

More Abundantly

With Higher Customer Satisfaction<br>
slide35. The Goal of Operationsand business! Quality Customer Satisfaction Loyalty Loyalty<br>
slide36. 1 2 3 4 5 20% 40% 60% 80% 100% Very
dissatisfied Dissatisfied Neutral Satisfied Very
satisfied Loyalty (Retention) Satisfaction zone of defection zone of indifference zone of affection The Goal of Operations
and business terrorist apostle<br>
slide37. Measure of process improvement
Represents output relative to input
Only through productivity increases can our standard of living improve Productivity<br>
slide38. Multi-Product Productivity Productivity =

Output
Labor + material + energy + capital + miscellaneous<br>
slide39. Options for Increasing Contribution<br>
slide40. Measurement Problems Quality may change while the quantity of inputs and outputs remains constant
External elements may cause an increase or decrease in productivity
Precise units of measure may be lacking<br>
slide41. Steel productionAutomobile fabrication Home remodelingRetail sales Auto Repair
Appliance repair Maid Service
Manual car wash Teaching
Lawn mowing High percentage goods
Low percentage service Goods-service Continuum Low percentage goods
High percentage service<br>
slide42. Goods Contain Services / Services Contain Goods Automobile Computer Installed Carpeting Fast-food Meal Restaurant Meal Auto Repair Hospital Care Advertising Agency Investment Management Consulting Service Counseling Percent of Product that is a Good Percent of Product that is a Service<br>
slide43. Manufacturing or Service?<br>
slide44. What Makes Services Unique Inseparability
Intangibility
Perishability
Heterogeneity
Site Location
Labor Intensity
Difficulty In Measuring Quality of Output<br>
slide45. Manufacturing vs Service Characteristic Manufacturing Service<br>
slide46. Operations Management includes:
Forecasting
Capacity planning
Scheduling
Managing inventories
Assuring quality
Motivating employees
Deciding where to locate facilities
And more . . . Scope of Operations Management<br>
slide47. Key Decisions of Operations Managers What
What resources/what amounts
When
Needed/scheduled/ordered
Where
Work to be done
How
Designed
Who
To do the work<br>
slide48. Decision Making<br>
slide49. Decision Making<br>
slide50. Trends in Operations Management Ethical behavior
Operations strategy
Working with fewer resources
Cost control and productivity
Quality and process improvement
Increased regulation and product liability
Lean production<br>
slide51. New Challenges in OM Local or national focus

Batch shipments

Low bid purchasing

Lengthy product
development

Standard products

Job specialization Global focus

Just-in-time

Supply chain partnering

Rapid product development, alliances

Mass customization

Empowered employees, teams<br>
slide52. Profits are the result of attention to quality
and customer satisfaction, while the reverse
is rarely true.

Edwards Deming<br>