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Operations Management

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Aramark serving 100,000 meals/day for athletes, staff and media at Beijing Games ... American Production and Inventory Control Society (www.APICS.org) ... – PowerPoint PPT presentation

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Title: Operations Management


1
Operations Management
  • OM302

Jim Hamerly, Ph.D. jhamerly_at_csusm.edu
2
OM302
  • Course Structure
  • Lectures
  • Limited class discussions exercises
  • Textbook and online reading
  • Homework assignments
  • Almost-weekly quizzes and a comprehensive final
    exam
  • No group project
  • Breaks?

3
Required Materials
  • Operations Management 7th edition, by Russell
    and Taylor available in the bookstore and
    elsewhere
  • Also required PRS clicker

4
Grade Components
  • Weekly quizzes 66.67
  • closed book, closed notes
  • drop your lowest quiz score
  • makes ups permitted if requested in advance of
    missed class
  • Final exam (comprehensive) 33.33

5
OM302
  • This is not a difficult class and you will do
    well
  • if and only if you
  • complete the homework
  • take quizzes
  • take the final exam

6
Grading Scale
  • A 90-100 B 80-89
  • C 70-79
  • D 60-69
  • F 0-59
  • Please note that there are no /- grades.

7
Informal feedback
  • At the end of the class, write a 2 minute
  • anonymous journal to be handed in immediately.
  • The journal should briefly summarize
  • Major points learned
  • Areas not understood or requiring clarification

8
Assignments
  • I will not collect homework assignments, but will
    be glad to review them in class, as needed, as
    well as to meet with you out of class
  • Doing the assignments is the key to learning the
    materials, you will not pass this class if you do
    not do the assignments

9
What I think you expect of me
  • Respond promptly to e-mail messages
  • Make a productive use of 2 hours of class time
  • Grade and test fairly
  • This is a 2 unit class, make it 2 units of work
  • Have fun while learning

10
Course Materials
  • http//courses.csusm.edu/om302jh/
  • Posted weekly presentation materials prior to
    class
  • Emailed weekly to you Reading and homework
    assignments
  • I must have a valid email address for you, please
    ensure that your email is working properly.

11
Operations Management
  • ... concerned with the design, planning,
    operation, and control of systems for the
    creation of goods and services.
  • This course treats operations management as a
    functional area of an organization and examines
    its interactions with other functional areas.

12
Operations Management
  • Besides using real-world business applications,
    we will also apply learned techniques to areas of
    your own life, for example
  • Should I finish college?
  • Go to grad school?
  • Will a new car save me money over a used car?
  • How much should I expect to gain from the
    lottery?
  • How many canned goods should I store at home?
  • At a grocery store, which is better, two checkout
    lanes or one checker one bagger?

13
Operations Management
  • A greatly simplified example
  • ... the design, planning, operation, and creation
    of a spaghetti dinner a good or service at the
    Hamerlys home

14
Ops Mgmt at the Hamerlys planning, operation,
and control for the creation of dinner
saute onions
saute garlic
Tim
cook
serve
tomato sauce
spices
Kim
Sue
table ware
glasses
ready?
boil water
add pasta
drain
Greg
serve
ready?
serve
dough
warm
bake
cut
Jim
open wine
serve
breathe
wash lettuce
tear
drain
Peg
mix
serve
onions garlic
oil vinegar
tomatoes
15
Ops Mgmt at the Hamerlys planning, operation,
and control for the creation of dinner
saute onions
saute garlic
Tim
cook
serve
tomato sauce
spices
Kim
Sue
table ware
glasses
ready?
boil water
add pasta
drain
Greg
serve
ready?
serve
dough
warm
bake
cut
Jim
open wine
serve
breathe
wash lettuce
tear
drain
Peg
mix
serve
onions garlic
oil vinegar
tomatoes
16
Ops Mgmt at the Hamerlys planning, operation,
and control for the creation of dinner
saute onions
saute garlic
Tim
cook
serve
tomato sauce
spices
Kim
Sue
table ware
glasses
ready?
crush tomatoes
boil water
add pasta
drain
Greg
serve
ready?
tomato puree
serve
dough
warm
bake
cut
tomato paste
Jim
tomato sauce
open wine
serve
breathe
olive oil
wash lettuce
tear
drain
fresh basil
Peg
mix
serve
onions garlic
oil vinegar
tomatoes
fresh parsley
17
Ops Mgmt at the Hamerlys
  • Medium complexity Planning building of a
    home
  • 2 years clearing land, 1 year of design work
  • Approximately 250,000 construction steps
  • Coordination of approximately 25 subcontractors

18
Another medium complexity example
  • One mornings breakfast makings at Anaheims
    Intl House of Pancakes

19
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20
One mornings breakfast
  • 7,000 pancakes
  • 5,500 eggs
  • 1,000 pounds pork
  • 600 glasses orange juice
  • 1,000 pots of coffee
  • 10 cooks
  • 18 waiters

Life April 20, 2007
21
Another medium complexity example
  • One days food on a modern cruise ship

22
(No Transcript)
23
Cruise ship line Production per day
  • 12,000 meals
  • 20,000 pounds of vegetables
  • 3,000 pounds of meats and seafood
  • 4,000 dinner rolls
  • 3,000 eggs
  • 3,500 packages of sugar
  • 50 gallons of ice cream

24
High complexity examples
  • McDonald's supplying 30,000 restaurants in 121
    countries
  • Aramark serving 100,000 meals/day for athletes,
    staff and media at Beijing Games
  • Bank of America operating 16,000 ATMs and 5,700
    branch banks in the United States
  • Federal Express operating over one million
    drop-off mailboxes in 215 countries
  • Building a new subway for Athens, Greece (2.6
    billion)

25
Operations Management
  • Many seemingly simple everyday tasks are very
    complex in nature, but repetitiveness and
    familiarity hide their complexity
  • Making dinner, tying your shoes, driving to LA
  • Helping your parents setup a facebook page
  • Most real world problems demand sophisticated
    methods at first exposure, but their complexity
    is hidden as they become familiar

26
Professional Societies
  • Production and Operations Management Society
    (www.POMS.org)
  • American Production and Inventory Control Society
    (www.APICS.org)
  • American Society for Quality (www.ASQ.org).

27
Approximate Course Sequence
  • Introduction to Operations
  • Decision-making
  • Quality Management
  • Product Design
  • Service Design
  • Processes and Technology
  • Project Management
  • Forecasting
  • Inventory Management
  • Chapter 1
  • Chapter 1 supplement 1
  • Chapter 2
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 9
  • Chapter 12
  • Chapter 13

28
Approximate Course Sequence
  • The sequence is approximate because I pace the
    class to your learning and interests
  • End of class feedback is very important!

29
Operations as a Transformation Process
The transformation process should add value such
that the output has financial value greater than
the sum of the inputs


30
Operations as a Transformation Process
The transformation process should add value such
that the output has financial value greater than
the sum of the inputs


31
Cooking as a Transformation Process
Note that if the cook is any good, the OUTPUT
will be more highly valued than the sum of the
INPUTS.
Ready?
Feedback
32
Transformation Processes
Transformation Industry Physical manufacturing Loc
ational transport/warehouse Exchange retail Physio
logical health care Psychological entertainment In
formational communications
33
Historical OM Example
  • ECommerce

34
1994 OM questions that led to ECommerce
  • In the purchase of a product or service, how can
    we
  • Permit buyers to more easily find sellers?
  • Increase the product selection choice (10X,
    100X)?
  • Provide detailed information about the product?
  • Find out what previous buyers thought?
  • Make the transaction much more convenient?
  • Reduce the delivery time? Track its delivery?
  • All while reducing the overall cost?

35
A New Value Chain
(a) Traditional Value Chain
(b) Intermediaries Eliminated (Disintermediation)
(b) New Intermediaries Introduced
(Reintermediation)
36
Value Chain Feedback
(a) Traditional Value Chain
37
The Growth of E-Commerce
1000B 800B 600B 400B 200B
B2B B2C
2000 2001 2002 2003 2004
Year
still only about 2 of retail sales
38
E-Commerce Promotes
  • Lower cost of materials
  • More efficient processes
  • Faster, better decision making
  • Expanded supply chains
  • Better supplier-customer relations
  • New forms of organizations
  • New ways of doing business
  • Globalization

39
E-Commerce
  • is a direct result of applying operations
  • management principles to the delivery of
  • goods and services to customers

40
Sample Operational Issues
  • Forecasting Demand for products? Sales
    patterns?
  • Finance How much capital do we need?
  • HR How many employees do we need? What skills?
  • Location, Distribution and Transportation Where
    is the best location for an operation? How big
    should facilities be?
  • Inventory How much stock should we hold? When do
    we order more? How much should we order?
  • Queuing How long are our waiting lines? How many
    servers should we use? What service level are we
    giving?
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