Mgmt 361 - Intro-1 -Spring 13 - Student Version

1

MGMT 361

Operations Management

(OM)

Introduction to Operations Management (correlates with Ch1 in Operations Management Book)

Prof. Julia A. Kalish

With a special thanks to Dr. Panwalkar for his work on class organization and Power Points

What’s OM? (14 min) mms://video.dis.purdue.edu/bns/management/MGMT460_WhatIsOM_080819.wmv

Complete Outside of Class

• Watch the introductory video posted in Blackboard Learn

• Review vocabulary terms for Module 1

Mgmt 361 2 Introduction to OM – Mod 1

mms://video.dis.purdue.edu/bns/management/MGMT460_WhatIsOM_080819.wmv

Today

• Presentation of course syllabus

• Brief Introduction to Blackboard Learn

• Discussion of general course information

• Introduction to Operations Management (OM)

Mgmt 361 3 Introduction to OM – Mod 1

Course Information & Expectations (syllabus highlights)

Bring syllabus to every MGMT 361 class

• Be in your seat when class begins each day

• You might be stopped at the door to answer a question if you are late to class

• Turn off and put away cell phones , laptops, i-pads, etc.

• Cell phone should NOT be visible during class – ever

• If I see your cell phone, you may be asked to leave

• Use same seat from next class on.

• Pictures will be taken next class.

Mgmt 361 Introduction to OM – Mod 1 4

Course Information & Expectations cont.

• Bring and display name tents every class • Correct your name tent and return to me if there is a problem or if

you would prefer to use a nickname

• By next week Form HW groups of three or be prepared to be placed in a group.

• Blackboard Learn – Check often • Answers to homework

• PDF’s of Note taking versions of PowerPoints

• Syllabus

• Announcements

• Quizzes

• Homework submissions tool

• Facebook – Can use as a secondary resource


6

Course Information & Expectations cont.

Attendance is required on the game days.

Information contained in the syllabus is fair game to be on

a quiz

You will need to bring a calculator everyday


Academic dishonesty

• Read the University Position concerning Academic dishonesty

• Sign and Submit the form indicating you understand expectations

• Any student caught cheating (in any of its many forms) will be subject to the most serious repercussions allowed by the university.


•Thoughts?

•Questions?

•Concerns?


1 Introduction

2 Process Analysis

3 Process Selection &

Facilities Design

4 Aggregate Planning

5 Quality Management

6 Inventory Management

And Six-Sigma

7 MRP

8 Lean Production &

Supply Chains 10

What will be covered in Mgmt 361? Based on selected chapters

from books by Stevenson and

Chase, Jacobs, Aquilano.

Part I

Chapters 1,

2, 3, & 4

Part II

Ch. 5, 6

Part III

Ch. 7, 8

Learning Modules

What is Operations Management?

• _______________________is an area of management concerned with overseeing, designing, and redesigning business operations in the production of goods and services.

• It involves the responsibility of ensuring that business operations are efficient in terms of using as little resources as needed, and effective in terms of meeting customer _______________.


Why is OM Important?

• Make or save _________ for the organization

• Helps to capture more _______________

• Make life better for _______________

• Consumers get the “stuff” they want when they want it

• Help the ____________________

• Make the world a better place


What does (good) OM do in Simplest Terms?

Lowers ____________

Raises ______________

Improves __________________

Enhances productivity


Notice that these concepts do not just pertain to manufacturing

Business Organizations have 3 basic functions:

Organization

Finance Operations Marketing

– Finance – responsible for securing financial resources at favorable prices and allocating these resources

– Operations - responsible for producing the goods or providing the services offered by the organization

– Marketing – responsible for assessing consumer wants and needs, and selling and promoting the organization goods or services.


Introduction to Operations Management

• Creation of goods or services involves transforming or converting inputs into outputs

• What are some Inputs? Transformations? Outputs?


Inputs •Land •Labor •Capital •Information

Transformation

•Cutting •Mixing •Debugging

Outputs

•Goods •Bread

•Services •healthcare

Control QC

Inventory Control


Overlap between OM & other functions

Accounting Inventory Management, Capacity utilization, Labor standards

Finance Make or Buy, Relocation and Plant Expansion

Marketing Customer Due Date, New Product Introduction, Product Customization

Human Resources Standards and Incentive Plans, Job Design

M.I.S. Operations Information System


Frito-Lay

Inputs Processing Output

St. E Hospital

Specific Examples

• The essence of the operations function is to add value during the transformation process

• ______________ “term used to describe the difference between the cost of inputs and the value or price of outputs”

• ________________ processes also called operations

• Good businesses let the customer decide what is value and what is not



Goods-service Continuum

Automobile assembly, steel making

Home remodeling, retail sales

Automobile Repair, fast food

Computer repair, restaurant meal

Song writing, software development

Goods Service

Surgery, teaching


Key differences: goods vs. service

Not usual Usually Ability to patent design 10

Difficult Easier Evaluation of work 9

Little Much Amount of inventory 8

Low High Quality assurance 7

Difficult Easy Production and delivery 6

Intangible Tangible Measurement of productivity 5

Low High Uniformity of output 4

High Low Labor content of jobs 3

Low High Uniformity of input 2

High Low Customer contact 1

Service Goods Characteristic No.

Iconic 1976 poster of Farrah Fawcett


Level of detail

Process design

Capacity planning

Aggregate planning

Master production schedule

Material Requirement Planning

Order scheduling

OM functions Time Horizon

Strategic

> 2 yrs

Tactical

1 – 2 yrs

Operational

<1 yr

Decision making levels

Introduction to Operations Management

• _______________ a production system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods. – Pros?

– Cons?

• Replaced by mass production in most situations

• _______________ a system in which low-skilled workers use specialized machinery to produce high volumes of standardized goods.


More Business Trends and Issues

• Internet • E-commerce & e-business

• Management of technology

• Globalization

• Environmental Concerns • Sustainability

• Pollution

• Regulation

• Agility (it’s not the BIG that eat the SMALL… it’s the FAST that eat the SLOW)


Business Trends and Issues Cont.

• __________________ • Lean • Supply Chain Management A supply chain is a

system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer (Wikipedia)

• ______________________ – “Managers must consider how their decisions will

affect shareholders, management, employees, customers, the community, and the environment”

– Is this true?


• Systems Thinking – A systems viewpoint is almost always beneficial in

decision making

– _______ a set of interrelated parts that must work together • Examples?

– The systems approach emphasizes interrelationships among subsystems

– Main theme is that the _____ is greater than the sum of its individual ___________

– Systems approach is essential whenever something is being designed, redesigned, implemented, improved, or changed (always?)


Business Trends and Issues

Give me your corrected name tags only if there needs to be a change, otherwise keep them for next class


• to make your homework teams

• that we will be taking pictures

• to bring your signed academic honesty form next class

• that we will begin “Process Analysis” (Mod 2)

• to review notes and watch videos


Documents

Mgmt 361 - Intro-1 -Spring 13 - Student Version