Introduction To
Operations Management
POM 370
Dr. Drew Rosen
Business Environment
Operations
Finance
Accounting
Information
Systems
•Improvement
•Nceufhkurreffg
•Investments
•Org.
•Sales
•The
•Bookkeeping
application
Behavior of
organizational
•Capital
•Policy
•Promotion
of
•Pensions
people,
•The
study of how
activities
to
the
forces
of supply
•Stock
•Strategy
•Research
technologies,
•Audits
Market
and
ensure
quality,
and
•Sit demand
Behavior
procedures
on their
to
ass
allocate
scarce
customer
•Fairy business
solve
land
resources
satisfaction
problems , and
loyalty
Marketing
Management
Economics
Operations Management

Designing Products and Sevices
Operations Management

Facility Location and Layout
Operations Management

Project Management
Operations Management

Scheduling Operations
Operations Management

Inventory Control
Operations Management

Quality Management
Operations Management

Quality Management
Operations Management

Operations Management is:
The management of systems or processes
that create goods and/or provide services

Operations Management affects:
– Companies’ ability to compete
– Nation’s ability to compete internationally
OM Decisions
Where to locate your business?
OM Decisions
What type of process to use?
OM Decisions
Number of workers to employ?
Number of workers scheduled at each station?
More than just McDonalds…
Forecasting park demands
Reducing wait times
Managing projects
Operations is About
Making Business Run Better
• More Efficiently
– More Abundantly
• With Higher Customer Satisfaction
The Goal of Operations
and business!
Loyalty
Loyalty
Customer
Satisfaction
Quality
Satisfaction and Loyalty
zone of affection
Loyalty (Retention)
100%
apostle
80%
zone of indifference
60%
40%
zone of defection
20%
terrorist
1
2
3
Dissatisfied Neutral
Very
dissatisfied
Satisfaction
4
Satisfied
5
Very
satisfied
Goods Vs Services
Key Differences:
Production of goods – tangible output
Delivery of services – an act
1.
2.
3.
4.
5.
6.
7.
Inseparability
Intangibility
Perishability
Heterogeneity
Site Location
Labor Intensity
Difficulty of Measuring Quality of Output
Big Picture: OM
INPUTS
Transformation
Process
OUTPUTS
Transformations
Physical:
Locational:
Exchange:
Storage:
Physiological:
Informational:
manufacturing
transportation
retailing
warehousing
health care
telecommunications
Three Basic Ways to Arrange
the Transformation Process

Job Shop
–
–
–
–

Variety of outputs in small batches
Customized output
General purpose machinery
Highly skilled workers
Flow Shop
–
–
–
–
High Volume
Standardized output
Special purpose equipment
Lower skilled workers
Profits are the result
of attention to
quality
and customer
satisfaction, while
the reverse
is rarely true.
Edwards Deming