BA 357 Operations Management Mark Pagell, Ph.D. Day 1 agenda Who Am I ? Syllabus Who are you What is OM- introduction to topic

3 years at OSU – 13th year teaching this material Who Am I? 3 years at OSU – 13th year teaching this material Why Am I teaching this class? Work experience Research interests and methods Philosophy – You are not OM majors- but you should be- in the sense that without a product or service a company is not going to exist Based in practice – like any course there is lots of theory underpinning what we talk about but one of my core strengths is the ability to bring current practice into the class.

Really like my job – like you I am here by choice Other information Really like my job – like you I am here by choice Live in Eugene – not going to be on campus every day – will be available almost every day via phone and e-mail As long as you are professional this class can be very casual Note cell phone issue Have lived all over the place Grew up in Philadelphia Anything else?

Syllabus highlights Get the Book – new edition caveat Come to class- If you don’t come don’t expect to do well Participation can help your grade Quizzes – more to help you keep up – small percentage of grade All subject to change – although I am 99% certain you will have 2 tests and I am 95% certain you will have 7 quizzes.

This section is special One of my jobs is to coordinate the teaching of all sections of BA357. Because of that we often do experiments in my classes. This is then an innovative / entrepreneurial section What are the operational implications of this?

Who are you? Name and major Work experience I know it is early for some of you but… What do you want to be doing once you graduate? Note I am doing this to get a feel for your backgrounds and interests – will make me a better teacher

First part of class- mostly defining terms and creating a common dictionary

What is operations management (OM) ? The set of activities that create goods or services through the transformation of inputs to outputs. The management of processes The part of the company (or supply chain) where the good / service is produced - where the work that directly matters to the customer gets done.

Where does OM add value in a company or supply chain Traditional Model Inputs Transformation processes: operations Outputs

A supply chain Supply Chain Model Information Information Suppliers Operations Customers Logistics Logistics

Why study OM This is where the good or service comes into being- if you do not understand this part of the company you are not being the best accountant, marketer, or whatever, you could be. This is where companies focus a great deal of energy - because this is where (most) companies incur the majority of their costs. Therefore this is an area where you can have a major impact on a firm’s competitiveness. Everyone is managing processes

Some cross functional linkages Accounting: inventory management / JIT / work standards / cost verses price Finance: make verses buy / quantifying quality / cost verses price Marketing: can we make what we wish to sell / what products cost the most to make / customer expectations Human resources: what skills do our employees need / who to hire / type of compensation to match strategy Information Systems: what information is needed and by whom / flow of goods / linkages to rest of supply chain

Why study OM 2: follow the cash

Terminology: Goods verses services

There are no pure goods- just a range of services What is McDonalds selling? How about General Motors Automobile Credit (GMAC) ? Can anyone name a company that sells a pure good ? What does this mean from a competitive standpoint ? From a learning standpoint ? This is a key point for the term even if many of my examples are manufacturing (goods) based.

Conclusions OM is the management of the processes that add value directly to our good or service. All managers manage processes and can learn from this class There is lots of money in improving operations Goods and services are part of the same continuum Quiz 1 next class – covers today's class and chapters 2- 3