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:
When ing, please include “701” and something like “MBA” in the subject line.
Don’t call my cell, and I won’t call yours. Deal?

3. Who Are You? (This is Homework)
In Canvas, please tell me the following:
Your name,
Where From
Undergrad major, where
Work experience
Interests / Fun

4. The Goal
What is the goal of a company? The goal is to make money by providing goods or services. To do that, we need to be effective and efficient. What is the difference?

5. Efficient & Effective
Efficiency: Doing things with the least use of resources
Effectiveness: Doing the right thing at the right time.
Value = Quality / $

6. What is Operations Management?
“The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.” p. 6.
Operations research / management science
Applying quantitative methods to decision making
Industrial Engineering
Engineering discipline, includes human factors and ergonomics.
OM is a field of management that may use some tools from OR/MS and IE.

7. Why OM is the most important area
Marketing
Sales
Finance
Accounting
Management
I/S
Operations
tells the world about our products gets people to buy our product makes sure we have the money to operate keeps track of where money comes from and goes keeps people on task, sets strategy and vision makes sure everyone has the information they need to do their jobs. actually makes the thing we sell. Without operations, you can’t have a company.

8. 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/Sales: What can be done?
HR: job descr, standards, incentives
IS: production, shipping, billing, receiving
Goizueta at Coke: What do you do to sell more Coca-Cola?
How do you support the mission?

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

10. Course Outline: Test 1 – Strategy and Analytics
1. What is Operations Management? 2. Strategic Role of Operations and Sustainability 3. Forecasting: How much stuff do we need? 4. Capacity Management: how to make it and how much capacity to have? When add more?

11. Test 2-Manufacturing and Service Processes
5. Project Management: Getting it done on time
6. Designing a production process
7. Services: randomly arriving customers
Queueing Theory
9. Material Requirements Planning - scheduling production and getting enough parts
Linear Programming: Mathematically optimal decisions

12. Test 3: Supply Chain Processes and Analytics
10. Quality Management and Six Sigma
11.  Inventory management: how much stuff, and where?
12. Lean production, aka Just In Time
13. Global sourcing and procurement
14. Location Selection: where to build?
This is NOT a comprehensive final!
Only over section 3.

13. Test Preparations Tests are roughly 75% mathematical
Some questions where I might ask you to explain where you have seen an idea being used, or where it might work well.
In that case, what do you think? Or have you seen?
Practice problems are supposed to be good preparation
I suggest you do them, and then look at the solutions I’ve given you.

14. Webcampus Not a major source of your grade
Somewhat detailed, relatively recent example of our concepts at work
Read or watch the material, and offer you’re your responses

15. Case Study
Tell me about a way you think a company could improve its operations (either its effectiveness or efficiency).
This must be based on a real company
It could be one you work at, your spouse, your friend, your parent, your child, or just one you’ve observed as a customer
It does not have to have data, but if you can ballpark things as best as possible, that is better than nothing
Done in groups, due at the end of the semester
Presentations videotaped and put online for you to watch

16. Benihana Case Study Read the HBSP case.
Tell me how Benihana’s operational decisions contributed, both positively and negatively, to their success
How long? Let say 3-4 pages-ish.

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