Introduction to Operations Management MBA 570

Transcript:Introduction to Operations Management MBA 570:
Introduction to Operations Management MBA 570 Summer 2011 Business Environment Accounting Bookkeeping Pensions Audits Tax Business Environment Business Environment Business Environment Finance Investments Capital Stock Market Business Environment Business Environment Economics Nceufhkurreffg (the study of how the forces of supply and demand allocate scarce resources*) Business Environment Business Environment Management Organization Behavior Policy Strategy Business Environment Business Environment Marketing Sales, Promotion Market Research Consumer Behavior Business Environment Business Environment Information Systems The application of people, technologies, and procedures to solve business problems** Business Environment Business Environment Operations The efficient and effective , Design, control, Maintenance, and improvement of processes to produce and distribute products and services*** Operations Management Designing Products and Services Operations Management Designing Products and Services Operations Management Designing Products and Services Operations Management Facility Location and Layout Operations Management Scheduling Operations Operations Management Scheduling Operations Operations Management Inventory Control Operations Management Quality Management 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 The Operations function Consists of all activities directly related to producing goods or providing services Value-Added The difference between the cost of inputs and the value or price of outputs. Types of Transformations Physical Manufacturing Locational Transportation Exchange Retailing Storage Warehousing Physiological Health Care Informational Telecommunications Food Processor Inputs Processing Outputs Hospital Process Inputs Processing Outputs Where to locate your business? OM Decisions What type of process to use? OM Decisions Number of workers to employ? OM Decisions Number of workers scheduled at each station? Forecasting park demands Reducing wait times Managing projects More than just McDonalds… Operations is About Making Business Run Better More Efficiently More Abundantly With Higher Customer Satisfaction The Goal of Operations and business! Quality Customer Satisfaction Loyalty Loyalty 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 Measure of process improvement Represents output relative to input Only through productivity increases can our standard of living improve Productivity Multi-Product Productivity Productivity = Output Labor + material + energy + capital + miscellaneous Options for Increasing Contribution Measurement Problems Quality may change while the quantity