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Introduction to Operations Management

Ch 1. Introduction to Operations Management

Hansoo Kim (金翰秀), Ph.D

Dept. of Management Information Systems, YUST

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Announcement

Class Homepage

http://yustOM.wikispaces.com/

Good Material for studying OM,"The Encyclopedia of Operations Management Terms"

You can download it from the Class Homepage

About Textbook?

Please use “Useful websites” for studying OM

You can find some links from the Class Homepage

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What you should have done!

Read Chapter 1 and 2 (Text Book?)

Play with MS-Excel..

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2 Class rules you should keep! (2 가지 수업규칙)

Don’t do harmful actions to yourself(자싞을해치는 행위는 용납되지 않는다!)

Don’t Sleep!

Don’t do harmful actions to others(남을해치는 행동은 용납되지 않는다!)

Don’t let others be slept!

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OM Overview

Class Overview(Ch. 0)

ProjectManagement

(Ch. 17)

StrategicCapacity Planning

(Ch. 5, 5S)

Operations, Productivity,and Strategy

(Ch. 1, 2)

Mgmt of Quality/Six Sigma Quality

(Ch. 9, 10)

Supply ChainManagement(Ch 11)

Location Planningand Analysis(Ch. 8)

Demand MgmtForecasting

(Ch 3)

InventoryManagement

(Ch. 12)

AggregatedPlanning

(Ch. 13)

Queueing/Simulation(Ch. 18)

MRP & ERP(Ch 14)

JIT & Lean Mfg System

(Ch. 15)

Term Project

Process Selection/Facility

Layout; LP(Ch. 6, 6S)

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Today’s Outline

What is OM?

Types of OM Problem and Models

Why should study OM?

Three Major Functions of Organization

Value-added process

Goods vs. Service

Scope of Operations Management

History of Operations Management

Trends in Business

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Learning Objectives

1. Define the term operations management.2. Identify the three major functional areas of organizations

and describe how they interrelate.3. Compare and contrast service and manufacturing operations.4. Describe the operations function and the nature of the

operations manager’s job.5. Differentiate between design and operation of production

systems.6. Describe the key aspects of operations management decision

making.7. Briefly describe the historical evolution of operations

management.8. Identify current trends in business that impact operations

management.

Question?

Wal-Mart

In the late 1970s, Wal-Mart was a niche marketer, with about 200 stores, mostly in the South. At the time, Sears, JC Penney, and Kmart dominated the retail market. Over the years, Wal-Mart gained market share at the expense of the previous market leaders, and it has now become the largest and most profitable retailer in the world!

Boeing

In the 1990s, the Boeing Company ran into trouble when it could not meet production deadlines. As a result, Boeing lost some orders, which had a negative impact on earnings and its stock price.

Why do some companies thrive while others struggle or fail?

There are a variety of reasons, to be sure. However, an important key in a company’s success or failure is how well it manages its operations.

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Dell.com

Why??How??

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What is OM(运作管理)

Operations Management (OM): the set of activities(活动) that creates value(价值) in

the form of goods(商品) and services(服务) by transforming inputs into outputs

What activities (어떤 活动이있는가)?

How to evaluate (어떻게 评价핛것인가)?We need evaluation measures – Productivity!!(生产率)What are the better activities?(어떤활동을 어떻게 하면 생산성이 좋을까?)

Production(生产): Creating goods and services

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Organizational Functions(企业组织的职能)

Essential functions:

Marketing (营销)

Generates demands (需求)

Gets customers（顾客）

Production/Operations (生产/运作)

Creates product or service

Procurement (获取) of required material

Finance(财务)/Accounting(会计)

Obtains funds, pays bills, collects money

企业组织三个

基本职能营销 财务/会计

生产

Operations:Value-added Process, Transformation Process

The operations function involves the conversion of inputs into outputs

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Input-Transformation-Output Relationships for Typical Systems

SystemPrimary Inputs

ResourcesPrimary Transformation Functions

Typical DesiredOutput

Hospital Patients MDs, nurses, medical supplies, equipment

Health care Healthy individuals

Restaurant Hungry Customer

Food, chef, wait staff, environment

Well-prepared, well-served food; agreeable environment

Satisfied customers

Automobile factory

Sheet steel, engine parts

Tools, equipment, workers

Fabrication and assembly of cars

High-quality cars

Collage or university

High school graduates

Teachers, books, Classrooms

Teaching knowledge and skills

Educated individuals

Department store

Shoppers Displays, stocks of goods, sales clerks

Attract shoppers, promote products, fill orders

Sales to satisfied customers

Distribution Center

Stock keeping units (SKUs)

Storage bins, stock pickers

Storage and redistribution

Fast delivery, availability of SKUs

Operations are not only for manufacturing!!!

Goods vs. ServiceMajor Service JobsGovernment (federal, state, local).Wholesale/retail (clothing, food, appliances, stationery, toys, etc.).Financial services (banking, stock brokerages, insurance, etc.).Health care (doctors, dentists, hospitals, etc.).Personal services (laundry, dry cleaning, hair/beauty, gardening, etc.).Business services (data processing, e-business, delivery, employment agencies, etc.).Education (schools, colleges, etc.).

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READING!! (Text book)

Why manufacturing matters

The challenges of managing service

U.S. manufacturing versus service employment, 1940-2005

Why?

Productivity and Outsourcing

Decline in Manufacturing Jobs

Productivity

Increasing productivity allows companies to maintain or increase their output using fewer workers

Outsourcing

Some manufacturing work has been outsourced to more productive companies

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Why Manufacturing Matters

Over 18 million workers in manufacturing jobs

Accounts for over 70% of value of U.S. exports

Average full-time compensation about 20% higher than average of all workers

Manufacturing workers more likely to have benefits

Productivity growth in manufacturing in the last 5 years is more than double U.S. economy

Why Manufacturing Matters

More than half of the total R&D performed is in the manufacturing industries

Manufacturing workers in California earn an average of about $25,000 more a year than service workers

When a California manufacturing job is lost, an average of 2.5 service jobs are lost

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Challenges of Managing Services

Service jobs are often less structured than manufacturing jobs

Customer contact is higher

Worker skill levels are lower

Services hire many low-skill, entry-level workers

Employee turnover is higher

Input variability is higher

Service performance can be affected by worker’s

personal factors

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Why Should Study OM?

4 Reasons OM is one of three major functions of any organization,

and it is integrally related to all the other business functions

We want to know how goods(商品) and services（服务）are produced

We study OM to understand what operations（运作）managers do. By understanding, we can develop the skills necessary to become such a OM Expert

OM is such a costly part of an organization

About 40% of all jobs are in OM

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Scope of Operations Management

Class Overview(Ch. 0)

ProjectManagement

(Ch. 17)

StrategicCapacity Planning

(Ch. 5, 5S)

Operations, Productivity,and Strategy

(Ch. 1, 2)

Mgmt of Quality/Six Sigma Quality

(Ch. 9, 10)

Supply ChainManagement(Ch 11)

Location Planningand Analysis(Ch. 8)

Demand MgmtForecasting

(Ch 3)

InventoryManagement

(Ch. 12)

AggregatedPlanning

(Ch. 13)

Queueing/Simulation(Ch. 18)

MRP & ERP(Ch 14)

JIT & Lean Mfg System

(Ch. 15)

Term Project

Process Selection/Facility

Layout; LP(Ch. 6, 6S)

Model Based Decision-Making

Real WorldProblem ModelModeling

Solutionfor Model

Fin

dSolu

tion

Solutionfor RWProblem

Interpretation

Assumptions

Fe

ed

-ba

ck

Exact or

Heuristic method

Experiences/Intuition

?

Physical modelSchematic modelMathematical model

What is Trade-off (절충) ?What is System?What is Pareto-Phenomenon?

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Example: Product Mix(产品结构)(Product mix decision making)

Smart furniture company manufactures two products, Chair and Table.The profit of selling a Chair is $10.00 and that of Table is $20.00. To makea Chair, it requires 5 units of wood, 3 units of steel and 20 units of nails,and to make a Table, it requires 10 units of wood, 10 units of steel, and 10 units of nail. Suppose that the Smart furniture has 1000 units of wood, 300 units of steel, and 1000 units of nail, how many Chairs and Tables should be produced to make maximum profits?

$10.00 $20.00

Wood: 5 unitsSteel: 3 unitsNail: 20 units

Wood: 10 unitsSteel: 10 unitsNail: 10 units

Wood: 1000 units

Steel: 300 units

Nail: 1000 units

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Example: Forecasting（预测）

Past Demand for Chairs, Smart Furniture

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Week

Demand

Demand > Products --- Lost SalesDemand < Products --- Inventory cost

What is demand in 21st week?

Week Demand

1 800

2 1400

3 1000

4 1500

5 1500

6 1500

7 1300

8 1800

9 1700

10 1300

11 1700

12 1700

13 1500

14 2300

15 2300

16 2000

17 1700

18 1800

19 2200

20 1900

21 ???

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Example: Waiting Line (Queueing)（等候队列）

Which bank has better performance?

Average waiting time should be less than 25 minutes !!!

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Example: Inventory（库存）

Price Break Consider the following case, where D=10,000 units (annual demand)

S= $20 to place each order

i = 20% percent of cost (annual carrying cost, storage, interest, obsolescence, etc.)

C=Cost per unit (according to the order size; 0 ~ 499, $5.00 per unit

500~999, $4.50 per unit

1000, $3.9 per unit

Which quantity should be ordered?

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Operational Decisions

Project Management（项目管理） Process Analysis Product Design and Process Selection Facility Layout（设施布置） Waiting Line Management（等候队列） Quality Management and Control（质量管理和控制） Supply Chain Management（供应链管理） Just-In-Time（准是生产） and Lean Manufacturing（精生产益）

System Forecasting（预测） Aggregate Production Planning（综合计划） Inventory Control（库存控制） Material Requirements Planning (MRP) Enterprise Resource Planning (ERP) Operation Scheduling

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History of Operations Management

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Eli Whitney

Born 1765; died 1825

In 1798, received government contract to make 10,000 muskets

Showed that machine tools could make standardized parts(标准化零件) to exact specifications

Musket parts could be used in any musket

© 1995 Corel Corp.

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Frederick W. Taylor

Born 1856; died 1915

Known as ‘father of scientific management (科学管理)’

In 1881, as chief engineer for Midvale Steel, studied how tasks were done

Began first motion & time studies

Created efficiency principles

© 1995 Corel Corp.

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Taylor: Management Should Take More Responsibility for

Matching employees to right job

Providing the proper training

Providing proper work methods and tools

Establishing legitimate incentives for work to be accomplished

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Maslow’s Hierarchy of Needs

1. 자아실현 욕구최상의 욕구로서 앞 단계의 모든 욕구가 충족 될 때에 나타난다. 자신의재능, 능력, 잠재력 등을 충분히 발휘하기 위해 노력한다.

2. 자기 졲중 욕구능력, 신뢰감, 개인의 힘, 적합성, 성취, 독립, 자유, 명성, 인식, 수용, 주목, 지위, 평판

3. 애정 소속 욕구사랑하고, 사랑을 받고, 집단에 소속되어서 집단의 일원으로서 의미를찾으려 하는 욕구

4. 안전 욕구개인의 환경 내에서 확실성, 정돈, 조직, 예측성 등을 보장받고자 하는욕구

5. 생리 욕구인간의 가장 기본적 욕구로서 음식물, 물, 산소, 잠, 성, 추위나 더위로부터 보호 등

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X이론, Y이론 1960년대, D.맥그레거에의하면경영자나관리자는종업원을대하는관점이경험을

통하거나또는타성적인속단에서보통다음과같은인갂관을가짂다고하였다.

①인갂은선천적으로일을싫어하며, 가능핚핚 일을하지않고지냈으면핚다. ②기업내의목표달성을위해서는통제 ·명령 ·상벌이필요하다. ③ 종업원은대체로평범하며, 자발적으로책임을지기보다는명령받기를좋아하고안전제일주의의사고 ·행동을취핚다. 맥그레거는이 3가지를 X이론이라하고, 이는명령통제에관핚전통적견해이며낡은인갂관이라고비판하였다.

그는또이러핚인갂관에입각핚조직원칙 ·관리기법으로는새로운당면문제나목표달성을위해조직의총력을결집하는행동을바라기어렵다고하면서, X이론을대싞핛새로운인갂관으로서다음과같은 Y이론을제창하였다.

①오락이나휴식과마찬가지로일에심싞을바치는것은인갂의본성이다. ②상벌만이기업목표달성의수단은아니다. 조건에따라서인갂은스스로목표를향해전력을기울이려고핚다. ③ 책임의회피, 야심의결여, 안전제일주의는인갂의본성이아니다. ④새로운당면문제를잘처리하는능력은특정인에게만있는것은아니다. ⑤오히려현재기업내에서인갂의 지적 능력이제대로활용되지않고있을가능성이많다.

이와같은 Y이론은인갂의행동에관핚여러사회과학의성과를토대로핚 것인데, 이러핚사고방식을가짂다면, 종업원들은자발적으로일핛마음을가지게되고, 개개인의목표와기업목표의결합을꾀핛수 있으며, 능률을향상시킬수있다고보았다.

Naver 백과사전, http://100.naver.com/100.php?id=111325

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Frank & Lillian Gilbreth Frank (1868-1924); Lillian

(1878-1972)

Husband-and-wife engineering team (부부공학팀)

Further developed work

measurement (작업측정)methods

Applied efficiency methods to their home & 12 children!

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Fundamental motions of hands of a worker.

Motion Study

Pioneer of “Ergonomics”What is Ergonomics?

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THERBLIG Therbligs: The Keys to

Simplifying WorkTherbligs comprise a system for analyzing the motions involved in performing a task. The identification of individual motions, as well as moments of delay in the process, was designed to find unnecessary or inefficient motions and to utilize or eliminate even split-seconds of wasted time. Frank and Lillian Gilbreth invented and refined this system, roughly between 1908 - 1924.

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Henry Ford

Born 1863; died 1947

In 1903, created Ford Motor Company

In 1913, first used moving assembly line to make Model T

Unfinished product moved by conveyorpast work station

Paid workers very well for 1911 ($5/day!)

Fordism: ‚the mass production of standardized goods, using dedicated machines and moving assembly lines, employing unskilled and semi-skilled labor in fragmented jobs, with tight labor discipline, in large factories.”

‘Make them all alike!’

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W. Edwards Deming

Born 1900; died 1993

Engineer & physicist

Credited with teaching Japan quality control methods in post-WW2

Used statistics (统计学) to analyze process

His methods involve workers in decisions

Refer to http://www.lii.net/deming.html

Trends in Business

The Internet, e-commerce, and e-business

Management of technology

Globalization

Management of supply chains

Outsourcing

Agility

Ethical behavior (e.g. PL)

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Management of Technology

Technology: The application of scientific discoveries to the development and improvement of goods and services

Product and service technology

Process technology

Information technology

Management of Supply Chain

Supply Chain: A sequence of activities and organizations involved in producing and delivering a good or service

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Summary Operations management is responsible for producing goods and providing

services. As such, it is the core function of every business organization. Operations management plans and coordinates the use of the organization’s resources to convert inputs into outputs.

Operations decisions involve design decisions and operating decisions. Design decisions are strategic; they relate to capacity planning, product design, process design, layout of facilities, and selecting locations for facilities. Operating decisions relate to quality assurance, scheduling, inventory management, and project management.

In for-profit organizations, effective operations management can lead to higher productivity, lower costs, higher quality, and other competitive advantages, and increased shareholder wealth. In not-for-profit organizations, effective operations management can lead to lower costs, higher levels of customer service, and more efficient use of resources.

The chapter also presents a brief overview of the historical evolution of operations management and it ends with a list of strategic issues that are currently high priority for business organizations. At the top of that list are the Internet and e-business, outsourcing, supply chain management, management of technology, and agility.

Key Terms Agility（敏捷）: The ability of an organization to respond quickly to

demands or opportunities. Craft production（工艺生产）: System in which highly skilled

workers use simple, flexible tools to produce small quantities of customized goods.

Division of labor（劳动力分工）: The breaking up of a production process into small tasks, so that each worker performs a small portion of the overall job.

E-business（电子商务）: Use of the Internet to transact business. E-commerce: Consumer-to-business transactions. Interchangeable parts（通用件）: Parts of a product made to such

precision that they do not have to be custom fitted. Lead time（周期）: The time between ordering a good or service

and receiving it. Lean production（精益生产）: System that uses minimal amounts

of resources to produce a high volume of high-quality goods with some variety

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Key Terms Mass production（大量生产）: System in which low-skilled workers use

specialized machinery to produce high volumes of standardized goods. Model（模型）: An abstraction of reality; a simplified representation of

something. Operations management: The management of systems or processes that create

goods and/or provide services. Outsourcing: Obtaining a product or service from outside the organization. Pareto phenomenon（ 柏拉图 现象）: A few factors account for a high

percentage of the occurrence of some event(s). Six sigma: A process for reducing costs, improving quality, and increasing

customer satisfaction. Supply chain: A sequence of activities and organizations involved in producing

and delivering a good or service. System: A set of interrelated parts that must work together. Technology: The application of scientific discoveries to the development and

improvement of goods and services. Value-added（增值）: The difference between the cost of inputs and the value

or price of output

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Introduction to Operations Management

Ch. 2. Competitiveness, Strategy, and Productivity

Hansoo Kim (金翰秀), Ph.D

Dept. of Management Information Systems, YUST

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Learning Objectives1. List and briefly discuss the primary ways that business

organizations compete(竞争).2. List five reasons for the poor competitiveness of some

companies.3. Define the term strategy and explain why strategy is important

for competitiveness.4. Contrast strategy and tactics.5. Discuss and compare organization strategy and operations

strategy, and explain why it is important to link the two.6. Describe and give examples of time-based strategies.7. Define the term productivity and explain why it is important to

organizations and to countries.8. List some of the reasons for poor productivity and some ways of

improving it.

Competitiveness (경쟁력,竞争力)

How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services

핚기업이 유사 제품과 서비스를 제공하는 다른 기업에비해효과적으로 고객의 필요와 요구를 충족시켜 주는능력

An important factor in determining whether a company prospers, barely gets by, or fails.

핚기업이 성공핛 것인가? 현상을 유지핛 것인가? 혹은실패핛것인가를 결정짓는 중요핚 요인

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Mission/Strategy/Tactics

Mission(使命): Why we existThe purpose or rationale for an organization’s existence (조직의 존재 목적 혹은 근거)Mission Statement

Strategy(战略): How we want to get thereHow an organization expects to achieve its missions and goals

Tactics (策略)The methods and actions used to accomplish strategies

使命 / 战略 / 策略

Vision: What we want to be

Example

Rita is a high school student. She would like to have a career in business, have a good job, and earn enough income to live comfortably

Mission: Live a good life

Goal: Successful career, good income

Strategy: Obtain a college education

Tactics: Select a college and a major

Operations: Register, buy books, takecourses, study, graduate, get job

Example 1

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Achieving Competitive Advantage through Operations

Competitive Advantage (竞争优势): The creation of a unique advantage over competitors

Competing on Differentiation (差别化竞争) To distinguish the offerings of the organization in any

way that the customer perceives as adding value

Differentiation is concerned with providing uniqueness

Competing on Cost (价格竞争)

Competing on Response (时间竞争)

Better, Cheaper, Faster!!!

Value: What's important to us

Businesses Compete Using Marketing

Identifying consumer wants and needs

Pricing

Advertising and promotion

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Response(Faster)

Quality

Product

Process

Location

Layout

Human Resource

Supply Chain

Inventory

Scheduling

Maintenance

HP’s ability to follow the printer market

Differentiation

(Better)

Cost

leadership

(Cheaper)

Southwest Airlines No-frills service

Sony’s constant innovation of new products

Pizza Hut’s five-minute guarantee at lunchtime

Federal Express’s “absolutely, positively on time”

Motorola’s automotive products ignition systemsMotorola’s pagers

IBM’s after-sale service on mainframe computers

Fidelity Security’s broad line of mutual funds

FLEXIBILITY

Design

Volume

LOW COST

DELIVERY

Speed

Dependability

QUALITY

ConformancePerformance

AFTER-SALE SERVICE

BROAD PRODUCT LINE

Operations Decisions Examples Specific

Strategy UsedCompetitive Advantage

OM’s Contribution to Strategy

Strategy and Tactics

Distinctive CompetenciesThe special attributes or abilities that give an

organization a competitive edge.

Strategy Factors Price

Quality

Time

Flexibility

Service

Location

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Examples of Operations Strategies

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Evaluating Operational Decision Making Performance Measurement

Efficiency（效率） vs. Effectiveness（效力）

Efficiency: Doing something at the lowest possible cost

Effectiveness: Doing the right things to create the most value for the company

Productivity (生产率)

A measurement of how well resources are used

Example: if units produced = 1000 units and labor-hours used is 250, then 1000/250 = 4 units per labor hour

The key factor in Operational Decisions is

to improve productivity!!!

Productivity Units producedInput used=

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Problems for Measuring Productivity

Quality(质量): How to measure the improvement of quality?

동일입력 동일 출력, 그러나 다른 품질..

External elements may influence on the

productivity（生产率） 외부적요소에 쉽게 영향을 받는 경우

예) 석유값이 급등했을 경우...

Precise units of measure may be lacking

100만원짜리 자동차 핚대, 10만원 짜리 자동차 1대

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Productivity

Output

InputProductivity =

Profits

Costs=

How?

To Gain Competitive Advantage…

Partial Productivity: 1) Labor Productivity = Output/Labor2) Capital Productivity = Output/Capital3) Energy Productivity = Output/Energy

Multifactor productivity

* Competitive Advantage (경쟁우위) :경쟁자와비교하여 우월한성과를 갖도록 기업이 개발한 독특한 위치

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Partial Output Output Output Output

measures Labor Machine Capital Energy

Multifactor Output Output

measures Labor + Machine Labor + Capital + Energy

Total Goods or Services Produced

measure All inputs used to produce them

Measures of Productivity

Example 2 - Productivity

Determine the productivity for these cases:

Four workers installed 720 square yards of carpeting in eight hours.

A machine produced 68 usable pieces in two hours.

SOLUTION

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Example 3 –Multifactor Productivity

Determine the multifactor productivity for the combined input of labor and machine time using the following data:

Output: 7,040 units

Input:

Labor: $1,000, Materials: $520, Overhead: $2,000

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Quiz:

ABS Co. has 10 staffs, each working 8 hrs/day (Payroll cost: $100) and overhead cost $50 per day. This company makes 10 audio sets each day. This company trying to buy new machine that allow the processing of 15 audio sets per day. For using this machine, all things are same except for overhead expenses ($ 100/day)

Analyze the ABS co. in terms of productivity!

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Quiz: Calculate Productivity

# of staffs 10, each working 8hrs (for a payroll cost of $100/day) and overhead expenses of $50 per day. Output 10 units per day

New system: 15 units per day Overhead cost ->$100 per day

Analysis in terms of Productivity: Labor productivity w/ old system = 10 units per day/80 labor-hour per

day = 0.125 units per labor-hour Labor productivity w/ new system = 15/80 = 0.1875 units per labor-

hour Multifactor productivity w/ old system = 10 units per day/($100+50) =

0.067 units per dollar Multifactor productivity w/ new system = 15/($100 + 100) = 0.075

units per dollar Improvement: (0.1875-0.125)/0.125 = 0.5=> 50 % increased in

labor-productivity 0.075/0.0667 = 1.119=> 11.9% increased in multifactor productivity

Caution: unit

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Productivity Variables

Three critical factors to improved productivity Labor（劳动）, historically 10% improvement

Capital（资金）, about 38% improvement

Management(经营), about 52% improvement Knowledge has value to improve productivity =>

Money

TechnologyKnowledge Management (지식경영)

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Summary Competition is the driving force in many organizations. It may involve price, quality,

special features or services, time, or other factors. To develop effective strategies for business, it is essential for organizations to determine what combinations of factors are important to customers, which factors are order qualifiers, and which are order winners.

It is essential that goals and strategies be aligned with the organization’s mission. Strategies are plans for achieving organizational goals. They provide focus for decision making. Strategies must take into account present and future customer wants, as well as the organization’s strengths and weaknesses, threats and opportunities. These can run the gamut from what competitors are doing, or are likely to do, to technology, supply chain management, and e-business. Organizations generally have overall strategies that pertain to the entire organization and strategies that pertain to each of the functional areas. Functional strategies are narrower in scope and should be linked to overall strategies. Time-based strategies and quality-based strategies are among the most widely used strategies business organizations employ to serve their customers and to become more productive.

Productivity is a measure of the use of resources. There is considerable interest in productivity both from an organizational standpoint and from a national standpoint. Business organizations want higher productivity because it yields lower costs and helps them to become more competitive. Nations want higher productivity because it makes their goods and services more attractive, offsets inflationary pressures associated with higher wages, and results in a higher standard of living for their people.

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To be OM Expert !!!

Understanding

Problem

Developing

Proper Model

Finding Solution

Technique

Communicable

with other OM People

Domain Expert

(Studying general

Problems and Working

Experience)

Operations Research

(경영과학)

Mathematical Programming,

and Computational

Methodology

Existing Models:

LP Model,

Queueing Model,

Simulation Model,

PERT/CPM Model

Develop New Models

OM EXPERT!!

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What you should do by the next time!

HW #1 (Due Date: 2010/9/15)

Try all examples and Solved Problem

Solve the Problems on Chapter 2

Review Ch. 1 and 2 again

Important Concepts

Important People

Keywords

Read Ch. 17

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Good Bye!