OPERATIONS MANAGEMENT for MBAs Fourth Edition

1. OPERATIONS MANAGEMENTfor MBAs Fourth Edition Meredith and Shafer John Wiley and Sons, Inc. Topic 1: Operations Strategy Chapter 1: Operations Strategy

2. Outline Course Coverage Introduction to Operations Management Start Capacity Planning

3. Coverage Selected topics in Chapters; 1, 8, 8S, 7, 7A, 7B, 3, 4, 5 Other OM Topics Cases - HP DeskJet, Hayworth, FoxMeyer Homework - Excel Tools, Solver, Simulator Simulations Exams

4. Wal-mart vs. Kmart Revenue / Sales Stores 2002 bankruptcy and merger with Sears Chapter 1: Operations Strategy

5. Operations • Heart of every organization • Operations are the tasks that create value Chapter 1: Operations Strategy

6. Operations Pricing, Availability Demand Borrowing Adds Value Defects Satisfied Call Order errors Utilization Variability Wait time Change suppliers Add capacity Chapter 1: Operations Strategy

7. Service/product design Process design Continuous improvement Employee involvement Customer satisfaction Problem-solving tools Purchasing Benchmarking Quality Chapter 1: Operations Strategy

8. Innovation, Operations, & IT Chapter 1: Operations Strategy

9. Innovation, Operations, & IT Chapter 1: Operations Strategy

10. Creativity Exercises 5 + 5 + 1 = 5 4 6

11. Diversity and Importanceof Operations • Improvements in operations can simultaneously lower costs and improve customer satisfaction. • Improving operations often dependent on advances in technology. • Can obtain competitive advantage by improving operations. • Diversity of Operations Chapter 1: Operations Strategy

12. Emerging Issues and Trends in OM • Productivity improvement • Supply chain management • New technologies • Global competition • Ethical, workforce, and environmental issues • Lean Chapter 1: Operations Strategy

13. Country Productivity Chapter 1: Operations Strategy

14. Chapter 1: Operations Strategy

15. Chapter 1: Operations Strategy

16. Our Philosophy PFSweb is an outsourcing solutions design firm with an extensive offering of world-class logistics, fulfillment, customer care and technology infrastructure that can be leveraged to create unique, client-specific business solutions. Our philosophy is not to fit your business model into our pre-existing infrastructure, but rather to develop our infrastructure around your unique needs. We are flexible, scalable, and adaptable so we can keep pace with your ever-changing needs, whether you are adding new sales channels, marketing initiatives, vendor managed inventory (VMI) programs or special projects. We realize that no two clients face the exact same challenges, and for that reason, we are always extending our technology and operations capabilities based directly on client needs. Our philosophy is that there is absolutely no favorable argument for you to consider outsourcing with PFSweb unless we can execute at a greater performance level than what you could achieve in-house or through an alternative partner. Chapter 1: Operations Strategy

17. Chapter 1: Operations Strategy

18. The Supply Chain View • Core processes are sets of activities that deliver value to external customers • Supplier relationship process • New service/product development process • Order fulfillment process • Customer relationship process • Support processes provide vital resources and inputs to the core processes Chapter 1: Operations Strategy

19. Operations Activities • Strategy • Output Planning • Capacity Planning • Facility Location • Facility Layout • Aggregate Planning • Inventory Management • Materials Requirements Planning • Scheduling • Quality Control Chapter 1: Operations Strategy

20. OM Career Opportunities • Operations Analyst • Inventory Management • Forecasting • Purchasing • Quality • Industrial Engineering • Logistics • Distribution • Project Management Chapter 1: Operations Strategy

21. Defining and Measuring Quality • Conformance to specifications • Performance • Quick response • Quick-change expertise • Features • Reliability • Durability • Serviceability • Aesthetics • Perceived quality • Humanity • Value Chapter 1: Operations Strategy

22. Core Competencies • Collective knowledge and skills an organization has that distinguish it from the competition. • Typically center on an organization’s ability to integrate a variety of specific technologies and skills in the development of new products and services. • Building blocks of core capabilities. Chapter 1: Operations Strategy

23. Core Competencies continue • Are basis on which new outputs are developed. • Better to think of organization in terms of its portfolio of core competencies than as a portfolio of products. • Identifying and developing core competencies is one of top management’s most important roles. • Organization practices and business processes Chapter 1: Operations Strategy

24. Examples of Core Competencies Chapter 1: Operations Strategy

25. FedEx – Value Chain Chapter 1: Operations Strategy

26. Where should OM initiatives be focused first?

27. Vision and Mission Statements • Vision statements used to express organization’s values and aspirations. • Mission statements express organization’s purpose or reason for existence. Chapter 1: Operations Strategy

28. Order Qualifiers and Winners • Order qualifiers are characteristics that are the ante to enter the market • Order winners are characteristics that win the customer’s purchase Chapter 1: Operations Strategy

29. Examples Chapter 1: Operations Strategy