1. 1 Slides used in class may be different from slides in student pack Chapter 1 Overview: Introduction to the Field  Operations Management  Why Study Operations Management?  Production System Defined  Types of Transformations  Objectives of Operations Management  Goods Versus Services  Plan of the Course  OSCM Jobs  OSCM Placement and Salary Statistics

2. 2 Slides used in class may be different from slides in student pack What is Operations Management? Formal Definition Operations management (OM):

3. 3 Slides used in class may be different from slides in student pack OM involves management of the entire system that produces a good or service

4. 4 Slides used in class may be different from slides in student pack Why Study Operations Management? Operations Management

5. 5 Slides used in class may be different from slides in student pack What is a Production System? Defined A production system uses resources to transform inputs into some desired outputs.

6. 6 Slides used in class may be different from slides in student pack Types of Transformations  Physical--  Locational--  Exchange--  Storage--  Physiological--  Informational--

7. 7 Slides used in class may be different from slides in student pack Core services: basic things that customers want from products they purchase. The 4 Objectives of Operations Management 1. 2. 3. 4.

8. 8 Slides used in class may be different from slides in student pack Goods Versus Services - Continued  Tangible product  Consistent product definition  Production usually separate from consumption  Can be inventoried  Can be resold  Some aspects of quality measurable       GoodsService Goods Service

9. 9 Slides used in class may be different from slides in student pack Goods Versus Services  Low customer interaction  Product is transportable  Site of facility important for cost  Often easy to automate     GoodsService Goods Service

10. 10 Slides used in class may be different from slides in student pack 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

11. 11 Slides used in class may be different from slides in student pack Plan of This Course 1. Gaining a competitive advantage - strategy, project management 2. Product Design and Process Selection - goods, services, quality, analysis 3. Supply Chain design - JIT, ERP, electronic commerce, supply chain strategy, capacity management 4. Planning and controlling the supply chain - forecasting, aggregate planning, MRP, inventory management, TOC

12. 12 Slides used in class may be different from slides in student pack Where Are the OM Jobs?  Technology/methods  Facilities/space utilization  Strategic issues  Response time  People/team development  Customer service  Quality  Cost reduction  Inventory reduction  Productivity improvement  Supply chain analyst/management