Introduction ToOperations Management POM 370 Dr. Drew Rosen
Business Environment • Improvement of organizational activities to ensure quality, customer satisfaction , and loyalty • Investments • Capital • Stock Market • Nceufhkurreffg • Org. Behavior • Policy • Strategy • Sit on their ass • Sales • Promotion • Research Behavior • Fairy land • The application of people, technologies, and procedures to solve business problems • Bookkeeping • Pensions • Audits • The study of how the forces of supply and demand allocate scarce resources
Operations Management • Designing Products and Sevices
Operations Management • Facility Location and Layout
Operations Management • Project Management
Operations Management • Scheduling Operations
Operations Management • Inventory Control
Operations Management • Quality Management
Operations Management Quality Management
Operations Management • Operations Management is: The management of systems or processes that create goods and/or provide services • Operations Management affects: • Companies’ ability to compete • Nation’s ability to compete internationally
OM Decisions Where to locate your business?
OM Decisions What type of process to use?
OM Decisions Number of workers to employ? Number of workers scheduled at each station?
More than just McDonalds… Forecasting park demands Reducing wait times Managing projects
Operations is AboutMaking Business Run Better • More Efficiently • More Abundantly • With Higher Customer Satisfaction
The Goal of Operationsand business! Loyalty Loyalty Customer Satisfaction Quality
Satisfaction and Loyalty apostle zone of affection 100% 80% zone of indifference 60% Loyalty (Retention) 40% zone of defection 20% terrorist 1 2 3 4 5 Dissatisfied Satisfied Very satisfied Neutral Very dissatisfied Satisfaction
Goods Vs ServicesKey Differences: 1. Inseparability 2. Intangibility 3. Perishability 4. Heterogeneity 5. Site Location 6. Labor Intensity 7. Difficulty of Measuring Quality of Output Production of goods – tangible output Delivery of services – an act
Big Picture: OM Transformation Process Transformations Physical: manufacturing Locational: transportation Exchange: retailing Storage: warehousing Physiological: health care Informational: telecommunications OUTPUTS INPUTS
Three Basic Ways to Arrange the Transformation Process • Job Shop • Variety of outputs in small batches • Customized output • General purpose machinery • Highly skilled workers • Flow Shop • High Volume • Standardized output • Special purpose equipment • Lower skilled workers
Profits are the result of attention to quality and customer satisfaction, while the reverse is rarely true. Edwards Deming