introduction to operations management pom 370 dr. drew rosen
TRANSCRIPT
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Introduction ToOperations Management
POM 370Dr. Drew Rosen
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Business Environment
Operations Financ
e
Economics
Management
Marketing
Information Systems
Accounting
• Improvement of organizational activities to ensure quality, customer satisfaction , and loyalty
•Investments•Capital•Stock Market
•Nceufhkurreffg •Org. Behavior•Policy•Strategy•Sit on their ass
•Sales•Promotion•Research Behavior•Fairy land
• The application of people, technologies, and procedures to solve business problems
•Bookkeeping•Pensions•Audits•The study of how the forces of supply and demand allocate scarce resources
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Operations Management Designing Products and Sevices
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Operations Management Facility Location and Layout
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Operations Management Project Management
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Operations Management Scheduling Operations
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Operations Management Inventory Control
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Operations Management Quality Management
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Operations Management Quality Management
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Operations Management is:The management of systems or processes
that create goods and/or provide services
Operations Management affects:– Companies’ ability to compete– Nation’s ability to compete internationally
Operations Management
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Where to locate your business?
OM Decisions
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What type of process to use?
OM Decisions
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Number of workers to employ?
OM Decisions
Number of workers scheduled at each station?
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Forecasting park demands
Reducing wait times
Managing projects
More than just McDonalds…
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Operations is AboutMaking Business Run Better
• More Efficiently
– More Abundantly
• With Higher Customer Satisfaction
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The Goal of Operationsand business!
Quality
Customer Satisfaction
LoyaltyLoyalty
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1 2 3 4 5
20%
40%
60%
80%
100%
Verydissatisfied
Dissatisfied Neutral Satisfied Very satisfied
Loyalt
y (
Rete
nti
on
)
Satisfaction
zone of defection
zone of indifference
zone of affection
Satisfaction and Loyalty
terrorist
apostle
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1. Inseparability2. Intangibility3. Perishability4. Heterogeneity5. Site Location6. Labor Intensity7. Difficulty of Measuring Quality of Output
Goods Vs ServicesKey Differences:
Production of goods – tangible outputDelivery of services – an act
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Transformations
Physical: manufacturingLocational: transportationExchange: retailing
Storage: warehousing Physiological: health care
Informational: telecommunications
Big Picture: OM
TransformationProcessINPUTS OUTPUTS
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Three Basic Ways to Arrange the Transformation Process Job Shop
– Variety of outputs in small batches– Customized output– General purpose machinery– Highly skilled workers
Flow Shop– High Volume– Standardized output– Special purpose equipment– Lower skilled workers
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Profits are the result of attention to quality and customer satisfaction, while the reverse is rarely true.
Edwards Deming