Introduction to Operations Management

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Presentation transcript:

Introduction to Operations Management 1 Introduction to Operations Management Instructor: David Weltman Website: http://www.uta.edu/faculty/weltman/ E-mail: dweltman@uta.edu Office: 502

Operations Management 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

Scope of Operations Management Operations Management includes: Forecasting Capacity planning Scheduling Managing inventories Assuring quality Process selection Facility layout Supply chain management And more . . .

Supply Chain Management Inbound Production Outbound Sales and Customer logistics processes logistics marketing service Operations Management & Information Technology Upstream Downstream Upstream Downstream

Supply Chain Management Important Processes in SCM Order placement Order fulfillment Purchasing Downstream

Career Opportunities Operations Analyst Inventory Management Forecasting Purchasing Quality Industrial Engineering Logistics Distribution Project Management

The operations function involves the conversion of inputs into outputs Value-Added Process Figure 1.2 The operations function involves the conversion of inputs into outputs Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Value added

Decision Making What When Where How

Quantitative Approaches Linear programming Queuing Techniques Inventory models Project models Statistical models

How do we identify the vital few? Pareto Phenomenon A few factors account for a high percentage of the occurrence of some event(s). 80/20 Rule - 80% of problems are caused by 20% of the activities. How do we identify the vital few?

Historical Evolution of Operations Management Table 1.7 Industrial revolution (1770’s) Scientific management (1911) Mass production Interchangeable parts Division of labor Human relations movement (1920-60) Decision models (1915, 1960-70’s) Influence of Japanese manufacturers

Simple Product Supply Chain Figure 1.7 Suppliers’ Suppliers Direct Suppliers Producer Distributor Final Consumer Supply Chain: A sequence of activities And organizations involved in producing And delivering a good or service

Simple Product Supply Chain Inbound logistics Production processes Outbound Sales and marketing Customer service Operations Management (information technology) Upstream Downstream

Federal Express Human Resources Build and Improve Distribution Centers Support Aircraft and Trucks Order Supplies Service Customers Bill & Collect Collect Packages Sort Packages Ship Packages Customers Customers

TTI