Introduction To Operations Management POM 370 Dr. Drew Rosen

Business Environment 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

Operations Management Designing Products and Sevices Designing Products and Sevices

Operations Management Facility Location and Layout Facility Location and Layout

Operations Management Project Management Project Management

Operations Management Scheduling Operations Scheduling Operations

Operations Management Inventory Control Inventory Control

Operations Management Quality Management Quality Management

Operations Management Quality Management Quality Management

Operations Management is: Operations Management is: The management of systems or processes that create goods and/or provide services Operations Management affects: Operations Management affects: –Companies ability to compete –Nations ability to compete internationally Operations Management

Where to locate your business? OM Decisions

What type of process to use? OM Decisions

Number of workers to employ? OM Decisions Number of workers scheduled at each station?

Forecasting park demands Reducing wait times Managing projects More than just McDonalds…

Operations is About Making Business Run Better More Efficiently –More Abundantly With Higher Customer Satisfaction

The Goal of Operations and business! Quality Customer Satisfaction Loyalty

% 40% 60% 80% 100% Very dissatisfied Dissatisfied Neutral SatisfiedVery satisfied Loyalty (Retention) Satisfaction zone of defection zone of indifference zone of affection Satisfaction and Loyalty terrorist apostle

1. Inseparability 2. Intangibility 3. Perishability 4. Heterogeneity 5. Site Location 6. Labor Intensity 7. Difficulty of Measuring Quality of Output Goods Vs Services Key Differences : Production of goods – tangible output Delivery of services – an act

Transformations Physical: manufacturing Locational: transportation Exchange:retailing Storage:warehousing Storage:warehousing Physiological: health care Physiological: health care Informational:telecommunications Big Picture: OM Transformation Process INPUTS OUTPUTS

Three Basic Ways to Arrange the Transformation Process Job Shop Job Shop –Variety of outputs in small batches –Customized output –General purpose machinery –Highly skilled workers Flow Shop Flow Shop –High Volume –Standardized output –Special purpose equipment –Lower skilled workers

Profits are the result of attention to quality and customer satisfaction, while the reverse is rarely true. Edwards Deming