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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

Complete Outside of Class


Watch the introductory video posted in Blackboard Learn Review vocabulary terms for Module 1
Whats OM? (14 min) mms://video.dis.purdue.edu/bns/management/MGMT460_WhatIsOM_080819.wmv

Mgmt 361

Introduction to OM Mod 1

Today
Presentation of course syllabus Brief Introduction to Blackboard Learn Discussion of general course information Introduction to Operations Management (OM)

Mgmt 361

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.
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Mgmt 361

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 PDFs of Note taking versions of PowerPoints Syllabus Announcements Quizzes Homework submissions tool

Facebook Can use as a secondary resource


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Mgmt 361

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

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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.
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Thoughts? Questions? Concerns?


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What will be covered in Mgmt 361?


Based on selected chapters from books by Stevenson and Chase, Jacobs, Aquilano. 1 2 3 4 5 6 7 8 Introduction Process Analysis Process Selection & Facilities Design Aggregate Planning Quality Management Inventory Management And Six-Sigma MRP
Part II Ch. 5, 6
Part I Chapters 1, 2, 3, & 4

Learning Modules

Lean Production & Supply Chains

Part III Ch. 7, 8


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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 _______________.
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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
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What does (good) OM do in Simplest Terms?


Lowers ____________
Raises ______________ Improves __________________ Enhances productivity
Notice that these concepts do not just pertain to manufacturing
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Business Organizations have 3 basic functions:


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.
Organization

Finance

Operations

Marketing

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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 Mgmt 361
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Overlap between OM & other functions


Inventory Management, Capacity utilization, Labor standards Make or Buy, Relocation and Plant Expansion Customer Due Date, New Product Introduction, Product Customization Standards and Incentive Plans, Job Design

Accounting

Finance

Marketing

Human Resources

M.I.S.
Mgmt 361

Operations Information System


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Specific Examples
Inputs Processing Output

Frito-Lay

St. E Hospital

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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

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Goods-service Continuum

Goods

Service
Surgery, teaching Song writing, software development Computer repair, restaurant meal Automobile Repair, fast food

Home remodeling, retail sales


Automobile assembly, steel making

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Key differences: goods vs. service


No. 1 2 3 4 5 6 7 8 9 Characteristic Customer contact Uniformity of input Labor content of jobs Uniformity of output Measurement of productivity Production and delivery Quality assurance Amount of inventory Evaluation of work Goods Low High Low High Tangible Easy High Much Easier Service High Low High Low Intangible Difficult Low Little Difficult

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Ability to patent design

Usually

Not usual

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Iconic 1976 poster of Farrah Fawcett

Decision making levels


Time Horizon OM functions Level of detail

Process design
Strategic > 2 yrs Capacity planning Aggregate planning Tactical 1 2 yrs Master production schedule Material Requirement Planning Operational <1 yr
Mgmt 361

Order scheduling
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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 lowskilled workers use specialized machinery to produce high volumes of standardized goods.
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More Business Trends and Issues

Internet
E-commerce & e-business Management of technology

Globalization Environmental Concerns


Sustainability Pollution Regulation

Agility (its not the BIG that eat the SMALL its the FAST that eat the SLOW)
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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?
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Systems Thinking

Business Trends and Issues

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

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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

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