OM 300 1stt Edition Exam m 1 Study Guide Lectu ures 1 9 Lecture 1 January 10 ng the goods and servicces Producttion creatin OM thee set of activvities that ccreate valuee in the form m of G S byy transforming inputs in nto outputss o Plan nning coord dinating and d controllingg the resourrces needed d to producee a com mpany s prod ducts and seervices Essential E Fu unctions Pro oducing G S use theese for Organizational C Charts o Marrketing geneerates Demaand o Prod duction opeerations creeates the pro oduct o Finance Accoun nting trackss money Supply S Chaiin obal networrk of organizations and d activities that supply a firm with goods g o A glo and services mbers of thee supply chaain collaborrate to achieeve high levvels of custo omer o Mem satissfaction effficiency and competitivve advantage Why W study OM O o OM is one of 3 major functtions of any org we waant to study how people orgaanize themsselves for prroductive en nterprise o We w want to kno ow how G S are produ uced o We w want to und derstand wh hat operatio ons mgt doees o OM is such a co ostly part of an org What do o OM manaagers do Planningg Organizin ng Staffing Leading Co ontrolling The Straategic Decissions Design o of G S o D Defies whatt is required d of operatio ons o P Product dessign determines qualityy sustainability and hum man resourrces Managin ng Quality o D Determine ccustomer s needs and meet m them Process and Capacity Design o H How Is a good or servicce produced d o C Commits mggt to specifiic technologgy quality etc e Location n Strategy o N Nearness to o customerss suppliers and a talent Layout SStrategy o IIntegrate caapacity need ds personnel levels Human resources aand job design Recruit motivate and rretain o R Supply cchain mgt o IIntegrate su upply chain into firm s sstrategy Inventory mgt o IInventory ordering and d holding deecisions Scheduling Mainten nance onomic Systeem The Eco Inputs Transform mation Ou utputs o FFeedback th hen adjust Servvices are beccoming mucch higher th han manufacturing in all developed d countries except China Producttivity units produced Inp put used Measuree of processs improvem ment Represeents output relative to input i Only thrrough produ uctivity increases can our o standard d of living im mprove Multi faactor Producctivity Outtput Labor Material EEnergy Capital Also kno own as multti factor pro oductivity Output and inputs aare often exxpressed in dollars Lecture 2 January 13 1 Global G Strattegies a Bo oeing sales and supply chain are w worldwide i get theirr materials ffrom differeent parts off the world b Beenetton mo oves invento ory to stores around th he world faster than its com mpetition by building fleexibility into o design pro oduction an nd distribution c So ony purchasses compon nents from ssuppliers in Thailand Malaysia M an nd around the w world Reasonss to Globalizze 1 Reduce R costts labor taxes tarrifs etc 2 Improve I sup pply chain 3 Provide P bettter goods and services 4 Understand U d markets 5 Learn L to improve operaations 6 Attract A and retain global talent Reducin ng Costs Foreign locations w with lower wage w rates ccan lower diirect and ind direct costs 1 Maquilador M ras 2 World W Tradee Organizattion WTO 3 North N Amerrican Free Trade T Agreement NAFTTA 4 APEC A SEATO MERCOSSUR CAFTA European Union EU Improvee the Supplyy Chain 1 Locating L faccilities closeer to unique resources a Auto o design to C California b Athletic shoe prroduction to o China c Perffume manuffacturing in France Provide Better Goods and Servvices O Objective an nd subjectivve characteristics of G S a On ttime deliverries b Cultural variables omer servicee c Imprroved custo Understtand Markets with foreign Interacting I n customerss and suppliiers can lead d to new op pportunitiess RODUCT LIFEE CYCLE o EXTEEND THE PR Remain open to thee free flow o of ideas a General G mo otors partneered with a JJapanese au uto manufaccturer to leaarn new app proaches t productio to on Attract and Retain Global Taleent O betterr employmeent opportu unities 1 Offer a Bettter growth opportunitie o es and insulation against unemployment b Relo ocate unneeeded person nnel to moree prosperou us locations Mission 1 Mission wh M ere are you u going a Orgaanization s p purpose forr being b Answ wers what do we provvide society c Provvides bound daries and fo ocus 2 Strategy S tells the organ nization how w to get theere Factors Afffecting Mission Strategyy 1 Action A plan to achieve mission 2 Functional F aareas have sstrategies 3 Strategies S eexploit oppo ortunities an nd strengthss neutralizee threats an nd avoid weeaknesses Strategies for Comp petitive Advvantage DC CR D tion better or at least different 1 Differentiat a Com mpeting on Differentiati D ion i Uniquen ness can go beyond botth the physiical characteeristics and service attributees to encom mpass everyything that impacts custtomer s perrception of value oves leadin ng edge products 1 SSafeskin glo 2 W Walt Disneyy Magic Kinggdom experrience differrentiation 3 H Hard Rock C Cafe diningg experience 2 Cost C leadersship cheap per a Provvide the maximum valu ue as perceivved by custo omer Doess not imply low quallity i Southweest Airlines iii Wal Mart 3 Response R rrapid respon nse a Flexibility is matching markket changess in design in nnovation aand volumess i Hewlettt Packard b Reliaability is meeeting sched dules i German n machine in ndustry c Timeeliness is qu uickness in d design prod duction and delivery Johnson n electric Pizza Hut Mo otorola Lecture 3 January 15 udy Productt Life Cycle Figure 2 5 iin book Lookk up and stu Strategyy Developm ment Processs Figure 2 6 6 1 Analyze A thee environmeent a SWO OT analysis b Understand thee environmeent customers industrry and comp petitors 2 Determine D t Corporaate Mission the a State reason for existence identify the t value it w wishes to crreate 3 Form F a Strategy a Build d a competiitive advanttage Strategyy Developm ment and Implementatio on 1 Identify I keyy success facctors 2 Build B and sttaff the orgaanization 3 Integrate I OM with otheer activitiess The operations manager s job is to imp plement an OM strateg gy provide competitivee advanta age and inccrease produ uctivity CHAPTEER 5 Design n of Goods aand Servicess The firstt rule of Bussiness YOU U HAVE TO HAVE PROD DUCTS THATT SELL Product P Dessign is a bussiness issue Productt Design The objective of the prod duct decision is to develop and imp plement a p product strategyy that meetss the