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What is “Operations Management”? (and why should you care ?). Dr. Ron Lembke, Ph.D. University of Nevada, Reno. Reaching me. Email: ronlembke@unr.edu Phone: (775) 682-9164 WWW: http ://business.unr.edu/faculty/ronlembke Don’t call my house, and I won’t call yours.
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What is“Operations Management”?(and why should you care?) Dr. Ron Lembke, Ph.D. University of Nevada, Reno
Reaching me • Email: ronlembke@unr.edu • Phone: (775) 682-9164 • WWW: http://business.unr.edu/faculty/ronlembke • Don’t call my house, and I won’t call yours. When emailing, please include “352” in the subject line.
Who Are You? (This is Homework) In an email, please tell me the following: • Your name • Email address • Where From • Major • Interests / Hobbies • Musical interests • when you anticipate graduating • any experience you have had that might be relevant to this course
The Goal What is the goal of a company?
Efficent & Effective • Efficiency: Doing things with the least use of resources • Effectiveness: Doing the right thing at the right time. • Value = Quality / $
What is Operations Management? • Managing the systems or processes that create goods and/or provide services (p.4)
Goods vs. Services • Car • Coffee at Starbucks • Oil Change
Why OM is the most important area • Marketing gets people to buy our product • Finance makes sure we have the money to operate • Accounting keeps track of what we spend • Management keeps people on task • I/S makes sure systems work to support everyone else • Operations actually makes the thing we sell. Without operations, you can’t have a company.
Why Do You Care? • Satisfying Customers depends on Operations • You must understand and work in or with Operations: • Finance: Depr, Cash Flow, Make vs. Buy • Acctg: Cost estimates, Overhead, Inv valuation • Mktg: What can be done? • HR: job descr, standards, incentives • MIS: production, shipping, billing, receiving
Operations as Service Everybody’s in service Core services: done correctly, customized to their needs, delivered on time, priced competitively Value-added services: make life easier, help do jobs easier: Information on product – data, specs Problem solving – help internal, external customer Sales support – demo product trying to sell Field support – replace parts quickly
Decisions of OM 1. Quality: what do customers want? 2. Goods & Service Design: what to sell? 3. Process & Capacity Design: how to make it and how much capacity to have? When add more? Where? How? 4. Location Selection: where to build? 5. Layout Design: how to design facilities?
Decisions of OM 6. Human Resource & Job Design: what skills and how many people needed? 7. Supply chain management: vendor management, who use as suppliers? 8. Inventory: how much and where? 9. Scheduling: HR, facility needs, when? 10. Maintenance: how much, when?
Current OM Issues Flexible supply chains for mass customization of products and services Global supplier, production, and distribution networks Commoditization of suppliers – “plug compatibility” Enhancing value-added services Maximizing use of internet to share information, coordinate production
Continuous Improvement IGNORE YOUR TEETH, AND THEY’LL GO AWAY • It used to be you had to be “good enough” • Now, you must be looking for ways to make your customer happy, and meet their future needs • If you aren’t someone else is, and is going to take your business
Sustainability • Minimizing the company’s environmental impact • Minimize the impact of operations • It’s the carbon, stupid • Pollution is bad, too • 97% of climate scientists • As for the 3 percent of scientists who remain unconvinced, their average expertise is far below that of their colleagues, as measured by publication and citation rates