What is Operations Management? (and why should you care?) Dr. Ron Lembke, Ph.D. University of Nevada, Reno Reaching me Email: [email protected] Phone: (775) 682-9164
WWW: http://coba.unr.edu/faculty/ronlembke When emailing, please include 701 in the subject line. Dont call my house, and I wont call yours. Deal? Who Are You? (This is Homework) In an email, please tell me the following: Your name Where
From Major Interests / Hobbies phone #s to reach you at Musical interests email address when you anticipate graduating any experience you have had that might be
relevant to this course The Goal What is the goal of a company? Efficent & 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 firms primary products and services. p. 6. Operations research / management science Applying quantitative methods to decision making
Industrial Engineering Engineering discipline OM is a field of management that may use some tools from OR/MS and IE. What is OM? Manage entire system for delivering service
or product for OEM Original Equipment Manufacturer Brand name on the product. Probably doesnt produce Suppliers, vendors, Third party logistics providers (3PLs) Contract manufacturers Solectron, Flextronics Why OM is the most important area
Marketing gets people to buy our product Finance makes sure we have the money to operate Accounting keeps track of what we spend Management keeps people on task I/S makes sure systems work to support everyone else Operations actually makes the thing we sell. Without operations, you cant have a company.
Why Do You Care? Satisfying Customers depends on Operations You must understand and work in or with Operations: Finance: Depr, Cash Flow, Make vs. Buy Acctg: Cost estimates, Overhead, Inv valuation Mktg: What can be done? HR: job descr, standards, incentives MIS: production, shipping, billing, receiving
Operations as Service Everybodys in service Core services: done correctly, customized to their needs, delivered on time, priced competitively Value-added services: make life easier, help do jobs easier: Information on product data, specs Problem solving help internal, external customer Sales support demo product trying to sell
Field support replace parts quickly Decisions of OM 1. Quality: what do customers want? 2. Goods & Service Design: what to sell? 3. Process & Capacity Design: how to make it and how much capacity to have? When add more? Where? How? 4. Location Selection: where to build? 5. Layout Design: how to design facilities?
Decisions of OM 6. Human Resource & Job Design: what skills and how many people needed? 7. Supply chain management: vendor management, who use as suppliers? 8. Inventory: how much and where? 9. Scheduling: HR, facility needs, when? 10. Maintenance: how much, when? Current OM Issues Flexible supply chains for mass customization
of products and services Global supplier, production, and distribution networks Commoditization of suppliers plug compatibility Enhancing value-added services Maximizing use of internet to share information, coordinate production Continuous Process 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 arent someone else is, and is going to take your business What is strategy? How a firm intends to create and sustain
value for its shareholders (p. 24) Major components: Operations effectiveness Customer management Product innovation Competitiveness: A firms relative position in comparison to other firms in the marketplace Satisfying the Customer
Mission: the organizations purpose, what it hopes to achieve; rationale for its existence. To provide society with superior products and services--innovations and solutions that improve the quality of life and satisfy customer needs--to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return.
(Merck mission statement) Mission Statement Without a clear mission, an organization is unlikely to achieve its true potential, because there is little direction for formulating strategies. Wouldnt the same be true about people?
My Favorite Guru When you think of something, put it on a list. Check your lists regularly. Dont get sucked into email
distractions. Get rid of the clutter you dont need. Strategy Strategy: a plan for achieving the mission Each functional area (accounting, finance, marketing) determines its supporting mission Tactics: the methods to be used to achieve
the strategic goals. Must support mission, corporate values Michael Porter Three ways to achieve corporate mission: 1. Differentiation: Make your product different and / or better 2. Cost Leadership (lower prices): Wal- Mart, Southwest Airlines 3. Quick Response: Pizza Hut, FedEx
Purchasing Triangle Quality Price Speed Dont be sad; two out of three aint bad -- Meatloaf Competitive Dimensions
Cost -- make it cheap Quality and Reliability -- make it good Speed -- make it fast Reliability -- deliver when promised Cope with Change -- change volume New product speed Customer support Focus What is Mercks strategy? To provide society with superior products and services-innovations and solutions that improve the quality of life
and satisfy customer needs--to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return. Impact of Life Cycle iTunes CDs DVD Audio
Introduction Cassettes Growth Maturity Decline Records
MiniDisc DAT 8-Tracks Impact of Life Cycle Records DAT Introduction Growth
Maturity Decline Impact of Life Cycle Introduction: develop product, small-scale production Growth: ramp up production, marketing Maturity: standardized, volume production,
optimization Decline: cost minimization, eliminate unprofitable products Competitiveness Order qualifiers: screening criterion that allows your products to be considered deliver on-time, reliability, general quality
Order Winners: criterion that differentiates your service/product above the competition price, quality, reliability Balanced Scorecard track performance from following perspectives: Financial: revenue or productivity growth Customer: Product leadership, customer intimacy, operational excellence
Internal: innovation, customer management, operational excellence, corporate citizenship Learning and Growth: strategic competencies and technologies, climate for action Kaplan and Martin, 1992, The Balanced Scorecard: Measures that Drive Performance Harvard Business Review Operations Strategy
Core capabilities: the skills that differentiate the firm from its competitors. What is the thing you do better than everyone else, that you could never dare trust to anyone else? Soft drinks: the secret sauce Automobiles: designing engines Productivity Productivity = Outputs / Inputs
Partial: Output/Labor or Output/Capital Multifactor: Output / (Labor + Capital + Energy ) Total Measure: Output / Inputs Productivity Services have always been a large portion of U.S. economy
Services share continues to grow U.S. has higher service % than others U.S. productivity growth has lagged other countries in past. What explains this phenomena? Improving Productivity Develop productivity measurements you cant improve what you cant measure Identify and Improve bottleneck operations
first Establish goals, document and publicize improvements
ICRF-DC was successfully started without major fault due to the appropriate protection system. Line density was affected by the shot to shot discharge cleaning. Exact assessment of residual gas variation due to DC was difficult due to background signals from...
5 COMPONENTS OF HEALTH-RELATED FITNESS 1. Muscle strength 2. Muscle endurance 3. Cardiovascular endurance 4. Flexibility 5. Body composition * * * * MUSCLE STRENGTH The ability of a muscle or muscle group to exert a maximum force against a...
He painted the female figure in a very crude manner in a reaction to the way women were portrayed in the media. (ex. Marilyn Monroe) Woman, 1944 (detail) Woman, 1944 Willem de Kooning Abstract Expressionism Woman IV, 1952 He is...
Quantifying uncertainties of OMI NO 2 data Implications for air quality applications. Bryan Duncan,Yasuko Yoshida, Lok Lamsal, NASA OMI Retrieval Team NASA Goddard Space Flight Center, Greenbelt, MD. AQAST STM, Rice U., Houston, TX, January 15-17, 2014
Why is mica important to India and the world? South Asia Physical Features Chapter 24 section 1 Subcontinent Referred as the Indian Subcontinent 1/5 of world's pop ½ size of USA Himalayas Himalayas Highest mountain chain in the world Formed...
* * This is a slide taken ftom the rextbook on sleep medicine. I omitted the data point taken from the Anesthesia study. This slide will introduce the concept of the MSLT as an "objective measure" * Gravenstein JS, Cooper...
Ridgeology: The study of the uniqueness of friction ridge structures and their use for personal identification.. The koala is one of the few mammals (other than primates) that has fingerprints. In fact, koala fingerprints are remarkably similar to human fingerprints;...
Ready to download the document? Go ahead and hit continue!