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What is “Operations Management”? (and why should you care ?)

What is “Operations Management”? (and why should you care ?). Dr. Ron Lembke, Ph.D. University of Nevada, Reno. Reaching me. Email: ronlembke@unr.edu Phone: (775) 682-9164 WWW: http ://business.unr.edu/faculty/ronlembke Don’t call my house, and I won’t call yours.

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What is “Operations Management”? (and why should you care ?)

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  1. What is“Operations Management”?(and why should you care?) Dr. Ron Lembke, Ph.D. University of Nevada, Reno

  2. Reaching me • Email: ronlembke@unr.edu • Phone: (775) 682-9164 • WWW: http://business.unr.edu/faculty/ronlembke • Don’t call my house, and I won’t call yours. When emailing, please include “352” in the subject line.

  3. Who Are You? (This is Homework) In an email, please tell me the following: • Your name • Email address • Where From • Major • Interests / Hobbies • Musical interests • when you anticipate graduating • any experience you have had that might be relevant to this course

  4. The Goal What is the goal of a company?

  5. Efficent & Effective • Efficiency: Doing things with the least use of resources • Effectiveness: Doing the right thing at the right time. • Value = Quality / $

  6. What is Operations Management? • Managing the systems or processes that create goods and/or provide services (p.4)

  7. Goods vs. Services • Car • Coffee at Starbucks • Oil Change

  8. Growth of Service Economy

  9. Why OM is the most important area • Marketing gets people to buy our product • Finance makes sure we have the money to operate • Accounting keeps track of what we spend • Management keeps people on task • I/S makes sure systems work to support everyone else • Operations actually makes the thing we sell. Without operations, you can’t have a company.

  10. Why Do You Care? • Satisfying Customers depends on Operations • You must understand and work in or with Operations: • Finance: Depr, Cash Flow, Make vs. Buy • Acctg: Cost estimates, Overhead, Inv valuation • Mktg: What can be done? • HR: job descr, standards, incentives • MIS: production, shipping, billing, receiving

  11. Operations as Service Everybody’s in service Core services: done correctly, customized to their needs, delivered on time, priced competitively Value-added services: make life easier, help do jobs easier: Information on product – data, specs Problem solving – help internal, external customer Sales support – demo product trying to sell Field support – replace parts quickly

  12. Decisions of OM 1. Quality: what do customers want? 2. Goods & Service Design: what to sell? 3. Process & Capacity Design: how to make it and how much capacity to have? When add more? Where? How? 4. Location Selection: where to build? 5. Layout Design: how to design facilities?

  13. Decisions of OM 6. Human Resource & Job Design: what skills and how many people needed? 7. Supply chain management: vendor management, who use as suppliers? 8. Inventory: how much and where? 9. Scheduling: HR, facility needs, when? 10. Maintenance: how much, when?

  14. Current OM Issues Flexible supply chains for mass customization of products and services Global supplier, production, and distribution networks Commoditization of suppliers – “plug compatibility” Enhancing value-added services Maximizing use of internet to share information, coordinate production

  15. Continuous Improvement IGNORE YOUR TEETH, AND THEY’LL GO AWAY • It used to be you had to be “good enough” • Now, you must be looking for ways to make your customer happy, and meet their future needs • If you aren’t someone else is, and is going to take your business

  16. Sustainability • Minimizing the company’s environmental impact • Minimize the impact of operations • It’s the carbon, stupid • Pollution is bad, too • 97% of climate scientists • As for the 3 percent of scientists who remain unconvinced, their average expertise is far below that of their colleagues, as measured by publication and citation rates

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