MGMT250 Notes August 31, 20041. Initial Stuff1. Is Book In?2. Any Questions on Syllabus? Go over quickly?3. Can Email me homework.4. We shall begin and finish Intro to Operations Management Discussion.5. We Shall try to begin productivity.1. P/OM Intro.A. Beyond the Classroom:For those students interested in getting your organizations involved at all levels, professional organizations exist. There is APICS, ASQC, INFORMS, SEE and SME as professional organizations with some practical focus.B. Definition and Summary Model of Operations Management Field. What is Operations Management?"Operations Management is the design, operation and improvement of the production systems that create the firms primary products and services" or "Operations Management deals with the design, planning, organizing, and controlling of resources, to provide goods and services so as to meet customer wants and organizational goals"Video - SERVICE OPERATIONS AND VARIOUS TOPICS - OVERVIEW OF TOPICS.Operations Management’s role in the strategic hierarchy of organizations -Operations within an Organization:What are decision making levels?C. Systems Approach to OperationsWhat are the elements of a typical, generic system and what is meant by “Value Added”? (Slide) Inputs include resources.Transformation types include?Outputs Include Products and Services. What are may be example inputs, transformations, outputs, feedbacks, controls for university?What are some differences in products and services?Question: Dentist Puts Fillings in Teeth, Product or Service?Answer? Any physical entity accompanying a transformation that adds value is a “facilitating” good.When no facilitating good exists, it is a “pure” service. Services are bundles of benefits, some of which may be tangible, while others are intangible, they may be accompaniedby a good or facilitating good.Brief History of Operations:Adam SmithEli WhitneyFredrick Winslow TaylorHenry FordOR-MathStrategic Operations -TQM - CIME-CommerceSupply Chain Management3. Productivity A. Let us talk about a quantitative model that will look at how well organizations perform - Productivity.What is Productivity? and some examples (see table 2.4 -2.5) .Productivity = Outputs/InputsWhat is a partial productivity measure?What is a multifactor measure?What is the total measure?Consider this problem:A furniture manufacturer has provided the following data. Compare labor, raw materials and supplies, and total productivity of 2000 and 2001.2000 2001OUTPUT: Sales Value of Production $22,000 $35,000INPUT: Labor 10,000 15,000Raw Materials and Supplies 8,000 12,500Capital Equipment Depreciation 700 1,200Other 2,200 4,800What is going on here? (i.e what is your analysis?)What if units were mixed (e.g. Labor is in people, materials in square feet)?Uses of Productivity? Performance measurement for improvement, benchmarking, etc. Productivity in U.S. has been good or bad...problem is how do you measure