Introduction to business: operations management

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Operations management cc licensed ( BY NC ND ) flickr photo by Michael Holden: http://flic.kr/p/dwpLTP

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Quiz • Closed book/closed notes • You may collaborate with your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team • Put phones away

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Operations management • Operations:  production of goods & services  value-added activities to convert inputs into outputs  management of resources  distribution of goods & services

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creative commons licensed (BY-SA) flickr photo by r3v || cls http://flickr.com/photos/xt0ph3r/3591236086 Operations management is a system

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creative commons licensed (BY-NC) flickr photo by Jukie Bot: https://flic.kr/p/69a35f

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• efficiency • low cost • "doing the thing right" • effectiveness • quality • "doing the right thing"

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inputs->outputs

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inputs?

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Capital photo: Library of Congress

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creative commons licensed (BY-NC-ND) flickr photo by jcolman: https://flic.kr/p/6rxrjx Human resources

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Natural resources flickr photo by matt.hintsa https://flic.kr/p/5tGgz8 shared under a Creative Commons (BY-NC-ND) license

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Information flickr photo by BobMical https://flic.kr/p/nK7kRW shared under a Creative Commons (BY) license

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Raw materials photo: Library of Congress

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Customers flickr photo by eliduke https://flic.kr/p/21VsRf sh under a Creative Commons (BY-SA) license

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outputs?

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Goods flickr photo by https://flic.kr/p/6qHcTW shared under a Creative Commons (BY-NC-SA) license

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Services photo: Library of Congress

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creative commons licensed (BY) flickr photo by nateOne: https://flic.kr/p/6mZSmM

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Difference between goods & services • intangibility • customization • customers • perishability

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Servicescape flickr photo by gorriti https://flic.kr/p/d48rf shared under a Creative Commons (BY-SA) license

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Servicescape characteristics Ambience Functionality Signs/symbols/artifacts

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production methods?

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flickr photo by ZakVTA https://flic.kr/p/5FM2b6 shared under a Creative Commons (BY-NC-SA) license

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C.F. Martin & Co. Custom Shop photo ©www.martinguitar.com/

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Howard Klepper Guitars: Every guitar I build is a one-of- a-kind, custom instrument. I have no standard model names or numbers. I work slowly; my output is about 10 guitars each year. I work on my guitars one at a time, and do not have more than two under construction--in different stages--at any time. This allows me always to be attentive to an instrument's unique qualities. It also allows me to keep feeling that my work is fun. photo ©www.alliedlutherie.com

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capacity planning

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how much?

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forecast demand

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too little?

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too much?

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facility location?

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• Shipping/transportation • Employees • Low costs • Financial incentives • Energy • Standard of living • Land • Materials

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flickr photo by missha https://flic.kr/p/4ndKGt shared under a Creative Commons (BY-NC-SA) license

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flickr photo by BenFrantzDale https://flic.kr/p/5vbm6 shared under a Creative Commons (BY-NC-SA) license

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flickr photo by JeepersMedia https://flic.kr/p/nWV6oA shared under a Creative Commons (BY) license

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inventory

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what's wrong with inventory?

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JIT Just in Time

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what's wrong with JIT?

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flickr photo by DVIDSHUB https://flic.kr/p/9r3NuZ shared under a Creative Commons (BY) license

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effects?

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quality • quality control • inspection • quality assurance • process

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statistical process control • 6σ • Fewer than 3.4 defects per million • 99.99966% yield • define • measure • analyze • improve • control

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benchmarking

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certification • ISO: int'l org. for standards • ISO 9000: quality • ISO 14000: environmental