WHAT IS“OPERATIONS MANAGEMENT”?(AND WHY SHOULD YOU CARE?)

Dr. Ron Lembke, Ph.D.

University of Nevada, Reno

REACHING ME

Email: ronlembke@unr.edu Phone: (775) 682-9164 WWW: http://business.unr.edu/faculty/ronlembke

When emailing, please include “701” and something like “eMBA” in the subject line.

Don’t call my cell, and I won’t call yours. Deal?

WHO ARE YOU? (THIS IS HOMEWORK)In an email, please tell me the following:Your name, emailWhere FromUndergrad major, whereWork experience Interests / Fun

EFFICIENT & EFFECTIVE

Efficiency: Doing things with the least use of resources

Effectiveness: Doing the right thing at the right time.

Value = Quality / $

WHAT IS OPERATIONS MANAGEMENT?“The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.” p. 6. Operations research / management science

Applying quantitative methods to decision making Industrial Engineering

Engineering discipline, includes human factors and ergonomics.

OM is a field of management that may use some tools from OR/MS and IE.

WHY OM IS THE MOST IMPORTANT AREA

Marketing Sales Finance

Accounting

Management

I/S

Operations

tells the world about our products

gets people to buy our product

makes sure we have the money to operate

keeps track of where money comes from and goes

keeps people on task, sets strategy and vision

makes sure everyone has the information they need to do their jobs.

actually makes the thing we sell. Without operations, you can’t have a company.

WHY DO YOU CARE?Satisfying Customers depends on OperationsYou must understand and work in or with

Operations:Finance: Depr, Cash Flow, Make vs. BuyAcctg: Cost estimates, Overhead, Inv valuationMktg/Sales: What can be done?HR: job descr, standards, incentivesIS: production, shipping, billing, receiving

Goizueta at Coke: What do you do to sell more Coca-Cola?How do you support the mission?

OPERATIONS AS SERVICE

Everybody’s in serviceCore services: done correctly, customized to their needs, delivered on time, priced competitively

Value-added services: make customers’ jobs or livesInformation on product – data, specsSales support – demo product trying to sellProblem solving – help internal, external customerField support – replace parts quickly

COURSE OUTLINE:TEST 1 – STRATEGY AND ANALYTICS1. What is Operations Management?

2. Strategic Role of Operations and Sustainability

3. Forecasting: How much stuff do we need?

4. Capacity Management: how to make it and how much capacity to have? When add more?

TEST 2-MANUFACTURING AND SERVICE PROCESSES

5. Project Management: Getting it done on time

6. Designing a production process

7. Services: randomly arriving customers

Queueing Theory

9. Material Requirements Planning - scheduling production and getting enough parts

A. Linear Programming: Mathematically optimal decisions

TEST 3: SUPPLY CHAIN PROCESSES AND ANALYTICS

10. Quality Management and Six Sigma

11.  Inventory management: how much stuff, and where?

12. Lean production, aka Just In Time

13. Global sourcing and procurement

14. Location Selection: where to build?

This is NOT a comprehensive final!

Only over section 3.

TEST PREPARATIONS

Tests are roughly 75% mathematical Some questions where I might ask you to explain where you have seen an idea being used, or where it might work well.

In that case, what do you think? Or have you seen?

Practice problems are supposed to be good preparation I suggest you do them, and then look at the solutions I’ve given you.

WEBCAMPUS

Not a major source of your gradeSomewhat detailed, relatively recent example of our concepts at work

Read or watch the material, and offer you’re your responses

CASE STUDY

Tell me about a way you think a company could improve its operations (either its effectiveness or efficiency). This must be based on a real company It could be one you work at, your spouse, your friend,

your parent, your child, or just one you’ve observed as a customer

It does not have to have data, but if you can ballpark things as best as possible, that is better than nothing

Done in groups, due at the end of the semester Presentations videotaped and put online for you to

watch

BENIHANA CASE STUDY

Read the HBSP case. Tell me how Benihana’s operational decisions contributed, both positively and negatively, to their success

How long? Let say 3-4 pages-ish.

CONTINUOUS IMPROVEMENT

It used to be you had to be “good enough” Now, you must be looking for ways to make your customer happy, and meet their future needs

If you aren’t someone else is, and is going to take your business

IGNORE YOUR TEETH, AND THEY’LL

GO AWAY