Introduction to Operations Management - University of Texas at Dallas
Introduction to
Operations Management
Chapter 1
These slides are based in part on slides that come with Cachon & Terwiesch
book Matching Supply with Demand . If you
want to use these in your course, you may have to adopt the book as a textbook
or obtain permission from the authors Cachon & Terwiesch.
utdallas.edu/~metin
1
Learning Objectives
? Operations
Management Introduction.
? Manufacturing and Service Operations.
? How can Operations Management help?
utdallas.edu/~metin
2
OM = Operations Management
?
Management of ANY activities/process that create goods and
provide services
? Exemplary Activities:
?
?
?
?
Forecasting
Scheduling,
Quality management
Why to study OM
? Cost and profit breakdown
at a typical manufacturing company
? How to make more profit?
?
?
OM Cost 20%
Marketing
Cost 25%
Cost cutting.
Which costs affect the revenue?
? Management of operations is
critical to create and maintain
competitive advantages
utdallas.edu/~metin
Profit 10%
Manufacturing
Cost 45%
3
Operations Management
?
?
Operations management: The management of the efficient
transformation of inputs into outputs to effectively satisfy
customers.
The active role of operations:
¨C Inputs become Outputs after some Transformation (Process or Operation)
¨C Food processing example:
Inputs
Transformation
Outputs
Energy, Raw vegetables
Cleaning
Clean vegetables
Energy, Metal sheets
Cutting/Rolling/Welding
Cans
Energy, Vegetables
Cutting/Chopping
Cut vegetables
Energy, Water, Vegetables
Cooking
Boiled vegetables
Energy, Cans, Boiled vegetables
Placing
Can food
utdallas.edu/~metin
4
Operations in services:
Health care
Inputs
Processes
Outputs
Doctors, nurses
Examination
Hospital
Surgery
Healthy
patients
Medical Supplies
Monitoring
Equipment
Medication
Laboratories
Therapy
SOM offers medical management MBA and Master of Science
See .
Question: What are Inputs, Processes and Outputs in education?
Who is the customer?
utdallas.edu/~metin
5
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