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

2. 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.

3. 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
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?

4. 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.

5. 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?

6. 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

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

8. 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.

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

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

11. 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

12. 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

13. Why study OM 2: follow the cash

14. Terminology: Goods verses services

15. 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.

16. 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