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Chapter 1 Overview: Introduction to the Field

Chapter 1 Overview: Introduction to the Field. Operations Management Why Study Operations Management? Production System Defined Types of Transformations Objectives of Operations Management Goods Versus Services Plan of the Course OSCM Jobs OSCM Placement and Salary Statistics.

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Chapter 1 Overview: Introduction to the Field

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  1. Chapter 1Overview: Introduction to the Field • Operations Management • Why Study Operations Management? • Production System Defined • Types of Transformations • Objectives of Operations Management • Goods Versus Services • Plan of the Course • OSCM Jobs • OSCM Placement and Salary Statistics

  2. What is Operations Management?Formal Definition Operations management (OM):

  3. OM involves management of the entire system that produces a good or service

  4. Why Study Operations Management? Operations Management

  5. What is a Production System?Defined Aproduction systemuses resources to transform inputs into some desired outputs.

  6. Types of Transformations • Physical-- • Locational-- • Exchange— • Storage— • Physiological-- • Informational--

  7. The 4 Objectives of Operations Management Core services: basic things that customers want from products they purchase.

  8. Goods Versus Services GoodsService • Tangible product • Consistent product definition • Production usually separate from consumption • Can be inventoried • Can be resold • Some aspects of quality measurable

  9. Goods Versus Services – cont’d GoodsService • Low customer interaction • Product is transportable • Site of facility important for cost • Often easy to automate

  10. 75 25 50 100 75 0 100 50 25 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

  11. Plan of This Course 1. Gaining a competitive advantage - strategy, project management 2. Product Design and Process Selection - goods, services, quality, analysis 3. Supply Chain design - JIT, ERP, electronic commerce, supply chain strategy, capacity management 4. Planning and controlling the supply chain - forecasting, aggregate planning, MRP, inventory management, TOC

  12. Where Are the OSCM Jobs? • Technology/methods • Facilities/space utilization • Strategic issues • Response time • People/team development • Customer service • Quality • Cost reduction • Inventory reduction • Productivity improvement • Supply chain analyst/management

  13. OM Salaries http://www.bus.iastate.edu/Careers/Salary/salary_summary.asp http://www.bus.iastate.edu/Careers/Annual_Report/Documents/06-07_Annual_Report.pdf#page=18

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