1. Operations and Supply Chain Management CHAPTER 1

2. What is OM? Why Study OM? Decision Space of OM Transformation Processes Defined Differences between Services and Goods Historical Development of OM OBJECTIVES 1-2

3. Operations and Supply Management (OM) is defined as the design, operation, and improvement of the systems (processes) that create and deliver the firm’s primary products and services 1-3 What is Operations Management (OM)?

4. Why Study Operations Management? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management 1-4

5. Decision Making Techniques Environmental Knowledge/ Skills Type of Industry Manufacturing Project Job shop/Batch Assembly line Continuous flow Service Public/private Government Profit/nonProfit Human Relations Job knowledge Quantitative skills Critical Thinking skills “Being Green” Economics Materials Technology Competitors Capacity Planning Learning Curves Process Analysis SPC’ Project Management Demand Management Inventory Control Logistics Strategy

6. A transformation process is defined as a user of resources to transform inputs into some desired outputs 1-6 Transformation Process defined -

7. Operations and Supply Management Supply Chain Processes Sourcing Processes Manufacturing Processes Service Processes Distribution Processes Logistics Processes Logistics Processes 1-7

8. What is a Service and What is a Good? “If you drop it on your foot, it won’t hurt you.” (Good or service?) “Services never include goods and goods never include services.” (True or false?) 1-8

9. The Goods-Services Continuum 1-9

10. Historical Development of OM Inventory Control Assembly line Quality Management Decision making techniques Project Management 1-10

11. Current Issues in OM Coordinate relationships between mutually supportive but separate organizations. Optimizing global supplier, production, and distribution networks. Increased co-production of goods and services Managing the customers experience Raising awareness of operations as a significant competitive weapon 1-11

12. End of Chapter 1 Any Questions?