1. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-1 BA 301 Fall 2003  Good Morning!  Welcome to Operations Management  MWF mornings  10:20-11:10 AM & 11:30-12:20 PM  Jon Ozmun  BS Chemical Engineering University of Oklahoma  Design Engineer, Sales & Service, General Manager  PhD Economics, University of Oklahoma  Teaching Economics, OM, & Business Strategy

2. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-2 BA 301 – Operations Management Syllabus Items  Text – Heizer & Render 7 th Edition  Grading – 60% of evaluation is Exam based  Exams – Two during the semester and Final  Quizzes – pre-announced and “pop”  Graded Projects (Primarily covering SAP)  Contacting Jon Ozmun Office: BA 256Phone: 523-7380 email: jon.ozmun@nau.edu

3. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-3 What Is Operations Management?  Operations management is the set of activities that creates goods and services by transforming inputs into outputs  Production is the creation of goods and services

4. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-4 What will be the schedule for this course?  Decision Tools (QMA)  Project Management (Chapter 3)  Supply Chain Management  Managing from the raw materials to creating the final product  Integrating the topic from the OM text with and Enterprise Resource Software system  Our ERP system is SAP R30  Additional Topics as time permits

5. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-5 Why Study OM?  OM is one of three major functions ( marketing, finance, and operations ) of any organization  To understand some basic tools for the management of materials and processes  To understand what happens in the operations management function  OM is often the most costly part of an organization  There are lots of jobs in OM  You never know where your career will take you  You have to pass the OM course to graduate

6. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-6 Organizational Functions  Marketing  Gets customers  Operations  creates product or service  Finance/Accounting  Obtains funds  Tracks money © 1995 Corel Corp.

7. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-7 Functions - Airline Operations Finance/ Accounting Marketing Ground Support Flight Operations Facility Maintenance Catering Airline © 1984-1994 T/Maker Co.

8. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-8 Functions - Manufacturer Operations Finance/ Accounting Marketing Production Control Manufacturing Quality Control Purchasing Manufacturing

9. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-9 Characteristics of Goods  Tangible product  Consistent product definition  Production usually separate from consumption  Can be inventoried  Low customer interaction © 1995 Corel Corp.

10. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-10 Characteristics of Service  Intangible product  Produced & consumed at same time  Often unique  High customer interaction  Inconsistent product definition  Often knowledge-based  Frequently dispersed © 1995 Corel Corp.

11. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-11 Goods Contain Services & Services Contain Goods 0 2550 75 100 2550 75 100 Automobile Computer Installed Carpeting Fast-food Meal Restaurant Meal Auto Repair Hospital Care Advertising Agency Investment Management Consulting Service Counseling Percent of Product that is a Good Percent of Product that is a Service

12. PowerPoint Presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 1-12 BA 301 Next Class Meeting  Quantitative Module A – Decision-Making Tools  Quiz 1 at the beginning of class Decision Making Under Uncertainty Decision Making Under Risk Expected Monetary Value Decision Making Under Certainty Expected Value of Perfect Information Be familiar with the “Goetz Products Company” problem. What is the advantage of a “Decision Tree” over a “Decision Table”?