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Operations Management. Moutaz Khouja Business Information Systems and Operations Management Department The Belk College of Business Administration The University of North Carolina at Charlotte Charlotte, NC 28223 Ph: (704) 687-3242, Fax: (704) 687-6330 mjkhouja@uncc.edu
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Operations Management Moutaz Khouja Business Information Systems and Operations Management Department The Belk College of Business Administration The University of North Carolina at Charlotte Charlotte, NC 28223 Ph: (704) 687-3242, Fax: (704) 687-6330 mjkhouja@uncc.edu http://www.belkcollege.uncc.edu/mjkhouja/
Outline • Introductions • Name cards • Brief bios • Suggested info (optional) • University history • Job history • Family and/or friends • Hobbies
Brief bio • BSME, MBA, PhD Operations Management • Married to Lisa Smith for 18 years, three cats. • Teaching • Operations Management, MBA, Undergraduate (UG) • Quantitative Analysis and Business Statistics, MBA • Service Operations Management, UG • Production Planning and Control, UG • Research and Consulting • Inventory Management • Supply Chain Management • Pricing • Applications of Artificial Intelligence to Operations Management • Cooking, reading • Very happy to be in Taipei. • Intro to Operations Management - Chap 1
What is operations management? • Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services. • OM is management of processes that produce and distribute products and/or services to customers. • OM objective is make sure that the processes work effectively and efficiently. • What is the difference between effectiveness and efficiency? • Efficiency: producing something at the lowest possible cost • Effectiveness: doing the right things to create the most value for the firm • What is value? • quality divided by price
Strategic level Broad scope, long term Tactical level Moderate scope, medium term Operational level Narrow scope, short term Typical Operations Decisions and Their Hierarchy
Transformations • Physical--manufacturing • Locational--transportation • Exchange--retailing • Storage--warehousing • Physiological--health care • Informational--telecommunications
Transformation Processes • Inputs Use resources Outputs
What is a Service and What is a Good? • Classic view: • Physical output (tangible) of process Good • If you drop it on your foot, it may hurt you • Intangible process Service • If you drop it on your foot, it won’t hurt you • McDonald’s is in Service or Manufacturing sector? • Every organization is in the service business, T or F?
Quality Performance Objectives Operations Management Speed Flexibility Price (or cost Reduction) Core Services • Core services are the basic things that customers (internal or external) want from products they purchase (quality, on time delivery, price (cost), etc.) • Somewhat easier to emulate or copy
Problem Solving Operations Management Sales Support Information Value-Added Service Categories Field Support Value Added Services • Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way (sales and field support, problem solving, etc.) • Significantly more difficult to copy and implement
Case: Fast-Food Feast, p. 21 • Please read this very short case and visit McDonald’s and one more fast-food restaurant. • You do not have to eat there but make sure to observe as much as possible how they prepare their meals using the seven questions listed on page 21. • Also, please read the article “McDonald's focus flips back to fast” • Discuss case
Case Questions • What do these different fast food restaurants sell? • Does each of them sell something different? • What is different about the operations of these restaurants? • Processes, Technology, Service Speed, Capacity, Flexibility • How do these stores make hamburgers? • Did you notice any differences? • What are sources of variability that these stores must deal with? • How do these businesses ensure quality?