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BMA 353 Operations Management

BMA 353 Operations Management. Dr. Ross L. Fink. What is operations management?. I consider operations management part of operations research. Operations research is defined as a scientific approach to problem-solving for executive management--Harvey M. Wagner. Scientific Approach (Method).

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BMA 353 Operations Management

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  1. BMA 353Operations Management Dr. Ross L. Fink

  2. What is operations management? • I consider operations management part of operations research. • Operations research is defined as a scientific approach to problem-solving for executive management--Harvey M. Wagner

  3. Scientific Approach (Method) • Define problem • Develop hypothesis • Test hypothesis • Analyze results • Implement conclusions

  4. What do we test?

  5. Benefits of Models • Compress time • Quantify data • Experiment without danger • Strip away unimportant detail • Provide insight

  6. Risks of Models • Does not accurately portray real-life • Important aspects left out • Nonquantitative information left out • Forcing a model to fit

  7. Operations Management • Operations management may be defined as managing the resources required to produce the products or services provided by an organization.--Chase and Aquilano.

  8. Evolution of Operations Management

  9. Aspects of Operations Management Have Existed for Centuries • Ancient Time • Plato--specialization of labor • Greece--stone mason did not sharpen their tools, a specialist did it

  10. Industrial Revolution • I--substitution of human power with mechanical power • II--standardization and mass production • III--mass customization

  11. Mass Production • Why? • High quality • Low cost • Principles that drive mass production • Standardization (interchangeable parts) • Specialization of labor

  12. Henry Ford • First moving assembly line -- 1913 • “any color you want, so longs as its black”

  13. Scientific Management • Fredrick W. Taylor--father of scientific management • Principles • One best way • Incentive pay systems

  14. Hawthorne Studies • 1930s • Western Electric plant • Studying the impact of lighting on productivity • Resulted in new ways of motivating workers, and the development of the field of Human Resource Management

  15. World War II • Emergence of Operations Research • British • Defense of England from aerial bombardment from Nazi Germany • Very successful, adopted by US as they entered WWII • Applied to corporations following WWII

  16. WWII--continued • Emergence of Quality Control • adopted Statistical Quality Control as a requirement of producing war goods in US • Concept of mass production heavily utilized • US Sherman tank made on assembly line • Nazi Tiger tank made with project approach

  17. 1970s • Just-In-Time systems • Renewed emphasis on quality

  18. Trends Today • Flexibility of production--mass customization • Emphasis on quality • Empowered work force • Partnerships in the distribution channel (Supply Chain Management)--The Internet, and ERP

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