Class 1 OM 235

Intro to Operations Management

Operations Management

Systematic Design, Operation, Control, and Improvement of processes to create and deliver goods | services to a customer

Objective: Maximize economic value responsibly

Effectiveness: Delivering goods& Services the customer wants

Efficiency: In the most profitable way

Deliver & Create Value

What does OM Impact?

• Cost (Cheaper)

• Timing (Faster)

• Quality (Better)

Primary Challenge for OM?

Balancing Supply and Demand

Supply Chain Operations: “SCOR Model”

1. Plan

2. Source

3. Make

4. Deliver

5. Customer Management

6. Support

7. New Product Development

What’s in it for me?

Process Impact:

• Whether customers get what they need | want

• Customer Experience along the way

Applicability in all aspects of business:

• Processes and standard operating procedures exist in all business disciplines

• Understanding how to map processes, analyze and modify them is key to adding value in any business career path

A process

is something that is repeated many times

• The fundamental lever to making your business model more effective is by focusing on its business processes

• Making processes more effective (time, cost, quality)

• Coordinating processes throughout the supply chain

• Make supply chains and their processes resilient to risk

Throughput ( aka Flowrate)

How much usable output, whether people, dozens of cookies, cars, etc., is actually produced in a specified period of time. it will have units of jobs/time unit

Flowtime

the time it takes a unit of output (widget, ton of steel, dozen cookies, etc.) to get completely through a process, from beginning to end, it will be in units of time