1. What is “Operations Management”? (and why should you care?)
Dr. Ron Lembke, Ph.D.
University of Nevada, Reno

2. Reaching me
Phone: (775)
WWW:
Don’t call my house, and I won’t call yours.
When ing, please include “352” in the subject line.
Or send a message via WebCampus

3. Who Are You? (This is Homework)
In WebCampus, please tell me the following:
Your name
Where From
Major
Interests / Hobbies
Work experience

4. The Goal
What is the goal of a company?

5. Efficent & Effective Efficiency: Effectiveness:
Doing things with the least use of resources
Effectiveness:
Doing the right thing at the right time.
Satisfying the customer
Which is more important?
Value = Quality / $

6. What is Operations Management?
Managing the systems or processes that create goods and/or provide services (p.4)

7. Goods vs. Services Car? iPad? Coffee at Starbucks Oil Change iPhone?
Tangible – solid, can be touched
Storable
Degree of customer input and specification

8. Why OM is the most important area
Marketing gets people to buy our product
Finance makes sure we have the money to operate
Accounting keeps track of what we spend
Management keeps people on task
I/S makes sure systems work to support everyone else
Operations actually makes the thing we sell. Without operations, you can’t have a company.

9. Why Do You Care? Satisfying Customers depends on Operations
You must understand and work in or with Operations:
Finance: Depr, Cash Flow, Make vs. Buy
Acctg: Cost estimates, Overhead, Inv valuation
Mktg: What can be done?
HR: job descr, standards, incentives
MIS: production, shipping, billing, receiving

10. Operations as Service Everybody’s in service
Core services: done correctly, customized to their needs, delivered on time, priced competitively
Value-added services: make life easier, help do jobs easier:
Information on product – data, specs
Problem solving – help internal, external customer
Sales support – demo product trying to sell
Field support – replace parts quickly

11. Bill of Materials
1605
Snow Shovel
048
Scoop-shaft
connector
13122
Top Handle
Assy
118 Shaft
(wood)
14127
Rivet (4)
314 scoop assembly
082 Nail
(4)
Firm buys inputs from suppliers, produces some parts in-house
BoM lists all inputs

12. Supply Chains

13. Current OM Issues
Flexible supply chains for mass customization of products and services Global supplier, production, and distribution networks Commoditization of suppliers – “plug compatibility” Enhancing value-added services Maximizing use of internet to share information, coordinate production

14. Operational Decision-making
Org. goals > 1 year
Prod design, capacity, location
Tactical: <1 year, optimal
Inventory, lines
Right people, right place
Reactive

15. Book Organization
Essentials: 1. What is OM? 2. Operations strategy 3. Choosing and improving products and services 4. What is going to happen in the future? Planning Operations 5. Capacity Planning and Waiting 6. Process and facility selection 7. Project Management 8. Location Planning and Logistics 16. Optimization
TEST 1
Managing Operations 9. SCM – materials from suppliers 10. Inventory – how much? 11. Planning production 12. Lean Action and Adaption 13. Quality control 14. Scheduling
TEST 3
TEST 2

16. Continuous Process Improvement
“Ascending and Descending,” M.C. Escher, 1960

17. Nokia
November, 2007
Hmm, I wonder?
June 29, 2007

18. Does anyone remember Nokia?

19. Or Blackberry?

20. Smartphone sales by OS
With 17.2% of units sold, Apple had 91% of the profits

21. Continuous Improvement
IGNORE YOUR TEETH, AND THEY’LL GO AWAY
It used to be you had to be “good enough”
Now, you must be looking for ways to make your customer happy, and meet their future needs
If you aren’t someone else is, and is going to take your business