OPMT 303: REVIEW.Ch.1. Introduction to Operations Management.Ch.2. Competitiveness, Strategy, and Productivity.Ch.4. Product and Service Design.Ch.6. Process Selection and Facility Layout.Ch.5. Capacity Planning.Ch.11. Aggregate Planning.Ch.12 Material Requirements Planning and ERP.Ch.14. Just-in-Time Systems.Ch.13. Inventory Management.Ch.16. Scheduling.Ch.9. Management of Quality.Ch.10. Quality Control.Ch.18. Management of Waiting Lines.OPMT 303: REVIEW.Ch.1. Introduction to Operations Management.1. Definition of Operations Management including all elements of input and manager’s responsibilities. The informal definition for operations management: the objective of business is to make a product (service) that costs a dime, sells for a dollar, and is habit forming. The official definition of operations management: activities, whereby resources, flowing within a defined system, are combined and transformed in a controlled manner to add value in accordance with policies communicated by management. There are 4 elements of a production system: - input (raw materials, facility labor, money, equipment, knowledge, information)- transformation (technological processes)- output (goods and services)- Management (feedback)A manager has four responsibilities:- Planning – all future managerial activities to meet the objectives of the organization; usually done through forecasting to learn about odds- Organizing – bringing together the resources (inputs)- Directing – turning plans into realities (which cannot be taught)- Controlling – evaluating the performance; if necessary – corrective actions 2. Characteristics of goods versus services. Goods ServicesPhysical, durable products Intangible, perishableOutput can be inventoried Output cannot be stored, use or loseLow customer contact High Customer contact, tailored to customer needsLong response time Short response time to meet daily variable demandRegional to international markets Local markets to meet local demandLarge facilities (Economies of Scale) Small facilities to address individual needsPhysical, durable, products Intangible, perishableOutput can be inventoried Output cannot be stored, “use or lose”Low customer contact High customer contact, tailored to needsCapital intensive Labor intensiveQuality easily measured Quality not easily measured, depends on perception 3. Definition of Supply Chain.A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.Comparison of societies: pre-industrial, industrial, and post-industrial.4. Definition of technology – the know-how (knowledge), physical things (equipment and tools) and procedures (to operate equipment and performing the work) used to produce products and services. Society Game Pre-dominantactivityUse ofHumanLaborStandard oflivingStructure TechnologyPre-IndustrialAgainst natureAgricultureMiningRaw Muscle powerSubsistence Authoritative Simple handtoolsIndustrial Against fabricatednatureGoods productionMachine tendingQuantity of goodsBureaucratic HierarchicalMachinesPost-IndustrialAmong personsServices Artistic creative intellectualQuality of life, health, education, entertainment,recreationInterdependentglobalInformationSociety Game Pre-dominantactivityUse ofHumanLaborStandard oflivingStructure TechnologyPre-IndustrialAgainst natureAgricultureMiningRaw Muscle powerSubsistence Authoritative Simple handtoolsIndustrial Against fabricatednatureGoods productionMachine tendingQuantity of goodsBureaucratic HierarchicalMachinesPost-IndustrialAmong personsServices Artistic creative intellectualQuality of life, health, education, entertainment,InterdependentglobalInformationrecreationNotes: 3 primitive sources of power during the pre-industrial society were muscles, wind, and gravity. Steam engines started the industrial society and the vast majority of nations live in this stage. 70% or more of GDP comes from services qualifies a country as post-industrial. 5. Three primary areas of technology: product, process, and information.o Product technology – new products and services designed by engineerso Process technology – new methods to accomplish taskso Information technology – ways to acquire, process and transmit information. This was introduced about 30 years ago. Computers double capacity every 18 months, according to Morse Law. 6. General ethical principles in choosing a new technology:  The Golden Rule – do unto others as you would have done unto you – fairness Immanuel Kant’s Categorical Imperative – if action is not right for everyone to take then it is not right for anyone. If everyone did this, would we survive? Descartes’ Rule of Change – if an action cannot be taken repeatedly then it is not right totake at all (the slippery slope rule) – “I think therefore I am” ex: addition Utilitarian Principle – take action that achieves the highest or greatest value  Risk Aversion Principle – take action that produces least potential cost or harm Ex: Hypocrates oath made by doctors to do no harm  “No Free Lunch” Rule – all tangible and intangible objects are owned by someone else and owner may want compensationCh.2. Competitiveness, Strategy, and Productivity.1. Factors affecting competitiveness: time is the most important resource- product and service design- cost- location: be close to customers- quality: perception - quick response- differentiation- flexibility in volume and variety: demand is variable - inventory- supply chain management: customer, producer, supplier- service- managers and workers2 Definitions and calculations of productivity.Productivity – to track performance over time (output/input)Partial productivity – output (labor, machine, capital, or energy)/inputMultifactor – output/combination of input 3. Ways to improve productivity: measures, bottlenecks, improvements, goals, incentives, publication, efficiency.4. Introduction to MRPII – eight elements described by objectives, inputs, characteristics, output, and who is responsible. Strategic plan – to determine the mission like business, (what kind), customers (who),objective (profit, growth). o Every organization has a mission statement. o Input: changes in environment – competition, economic trends, technological, social, and political changes, availability of resources o Distinctive competencies (SWOT)o Characteristics: long