What is “Operations Management”? (and why should you care?)

1. What is“Operations Management”?(and why should you care?) Dr. Ron Lembke, Ph.D. University of Nevada, Reno

2. Reaching me • Email: ronlembke@unr.edu • Phone: (775) 682-9164 • WWW: http://business.unr.edu/faculty/ronlembke When emailing, please include “701” and something like “eMBA” in the subject line. Don’t call my house, and I won’t call yours. Deal?

3. Who Are You? (This is Homework) In an email, please tell me the following: • Your name Where From • Major Interests / Hobbies • phone #’s to reach you at Musical interests • email address • when you anticipate graduating • any experience you have had that might be relevant to this course

4. Efficient & Effective • Efficiency: Doing things with the least use of resources • Effectiveness: Doing the right thing at the right time. • Value = Quality / $

5. What is Operations Management? • “The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.” p. 6. • Operations research / management science • Applying quantitative methods to decision making • Industrial Engineering • Engineering discipline, includes human factors and ergonomics. • OM is a field of management that may use some tools from OR/MS and IE.

6. Why OM is the most important area • Marketing tells the world about our products • Sales gets people to buy our product • Finance makes sure we have the money to operate • Accounting keeps track of where money comes from and goes • Management keeps people on task, sets strategy and vision • I/S makes sure everyone has the information they need to do their jobs. • Operations actually makes the thing we sell. Without operations, you can’t have a company.

7. 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/Sales: What can be done? • HR: job descr, standards, incentives • IS: production, shipping, billing, receiving • Goizueta at Coke: What do you do to sell more Coca-Cola? • How do you support the mission?

8. Operations as Service Everybody’s in service Core services: done correctly, customized to their needs, delivered on time, priced competitively Value-added services: make customers’ jobs or lives Information on product – data, specs Sales support – demo product trying to sell Problem solving – help internal, external customer Field support – replace parts quickly

9. Course Outline:Test 1 – Strategy and Analytics 1. What is Operations Management? 2. Strategic Role of Operations and Sustainability 3. Forecasting: How much stuff do we need? 4. Capacity Management: how to make it and how much capacity to have? When add more? 5. Project Management: Getting it done on time

10. Test 2-Manufacturing and Service Processes 6. Designing a production process 7. Services: randomly arriving customers Queueing Theory 9. Material Requirements Planning - scheduling production and getting enough parts • Linear Programming: Mathematically optimal decisions 10. Quality Management and Six Sigma

11. Test 3: Supply Chain Processes and Analytics 11.  Inventory management: how much stuff, and where? 12. Lean production, aka Just In Time 13. Global sourcing and procurement 14. Location Selection: where to build? This is NOT a comprehensive final! Only over section 3.

12. Test Preparations • Tests are roughly 75% mathematical • Some questions where I might ask you to explain where you have seen an idea being used, or where it might work well. • In that case, what do you think? Or have you seen? • Practice problems are supposed to be good preparation • I suggest you do them, and then look at the solutions I’ve given you.

13. “Case Studies” • Not a major source of your grade • Somewhat detailed, relatively recent example of our concepts at work • Read or watch the material, and offer you’re your responses

14. Lectures • It’s my personal opinion that if I’m going to teach you, I have to explain it in my own words, verbally. • PC/Mac:You can watch the ppt with audio shows like this one, and use the Flash viewer • iPhone/iPad: download the mp3 files and listen to them, and look along at the PDF files of the lectures • You can read transcripts of the lectures • You can ignore the PPTs altogether • But not everything in the lectures is in the book • So you might want to at least look through them

15. Case Study • Tell me about a way you think a company could improve its operations (either its effectiveness or efficiency). • This must be based on a real company • It could be one you work at, your spouse, your friend, your parent, your child, or just one you’ve observed as a customer • It does not haveto have data, but if you can ballpark things as best as possible, that is better than nothing • Done in groups, due at the end of the semester • You will need to make a PPT with audio presentation

16. Benihana Case Study • Read the HBSP case. • Tell me how Benihana’s operational decisions contributed, both positively and negatively, to their success • How long? Let say 3-4 pages-ish.

17. 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