Professional Documents
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Outline
1. 2. 3. 4. Define operations management. Three major functional areas of organization. Service vs. manufacturing operations. Decision making in operations management (OM).
The Organization
The Three Basic Functions
Organization
Finance
Manage cash flows, assets and capital investments
Operations
Manage people, equipment, material, technology, information. Produce goods and
services.
Marketing
Mange customer demand. Generate sales for goods/services
Value added
Inputs
Labor Facilities Equipment Material Capital Technology
Control
2. To improve efficiency
Efficiency means performing activities well for least possible cost.
DS 412 will cover several methods and approaches to achieve these goals.
Uniformity of output
Customer contact Time lag
High
Low High
Low
High Short
Labor content
Measuring productivity Quality assurance
Low
Easier Easier
High
Harder Harder
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
Decisions in OM
All organizations make decisions and follow a similar path First decisions Strategic decisions set the direction for the entire company; broad in scope and long-term in nature. Second decisions Tactical decisions focus on specific day-to-day issues like resource needs, schedules, & quantities to produce
Caution:
Numerical results may be over-emphasized over qualitative information. Models may be poorly designed.
Tradeoffs
Model Example
Abstract Real Life Problem Make Assumpitions Model
To answer these questions , tradeoffs must be made on Cost? Quality? Time? Flexibility? All of the above? Some?
Tactical
We will omit shaded chapters. The chapters we cover are shown in red: 1,5,6,8,9,12,16