Operations Management

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Operations Management

• Moutaz Khouja
• Business Information Systems and Operations
  Management Department
• The Belk College of Business Administration
• The University of North Carolina at Charlotte
• Charlotte, NC 28223
• Ph [phone], Fax [phone]
• mjkhouja_at_uncc.edu
• http//www.belkcollege.uncc.edu/mjkhouja/

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Outline

• Introductions
• Name cards
• Brief bios
• Suggested info (optional)
• University history
• Job history
• Family and/or friends
• Hobbies

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Brief bio

• BSME, MBA, PhD Operations Management
• Married to Lisa Smith for 18 years, three cats.
• Teaching
• Operations Management, MBA, Undergraduate (UG)
• Topics in Management Information Systems (PhD)
• Quantitative Analysis and Business Statistics,
  MBA
• Service Operations Management, UG
• Production Planning and Control, UG
• Research and Consulting
• Inventory Management
• Supply Chain Management
• Pricing
• Applications of Artificial Intelligence to
  Operations Management
• Cooking, reading
• Very happy to be in Monterrey.

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What is operations management?

• Operations management (OM) is defined as the
  design, operation, and improvement of the systems
  that create and deliver the firms primary
  products and services.
• OM is management of processes that produce and
  distribute products and/or services to customers.
  
• OM objective is make sure that the processes work
  effectively and efficiently.
• What is the difference between effectiveness and
  efficiency?
• Efficiency producing something at the lowest
  possible cost
• Effectiveness doing the right things to create
  the most value for the firm
• What is value?
• quality divided by price

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Typical Operations Decisions and Their Hierarchy
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Transformations

• Physical--manufacturing
• Locational--transportation
• Exchange--retailing
• Storage--warehousing
• Physiological--health care
• Informational--telecommunications

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Transformation Processes

• Inputs ?Use resources ? Outputs

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What is a Service and What is a Good?

• Classic view
• Physical output (tangible) of process ? Good
• If you drop it on your foot, it may hurt you
• Intangible process ? Service
• If you drop it on your foot, it wont hurt you
• McDonalds is in Service or Manufacturing sector?
• Every organization is in the service business, T
  or F?

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OM in the Organization Chart
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Core Services

• Core services are the basic things that customers
  (internal or external) want from products they
  purchase (quality, on time delivery, price
  (cost), etc.)
• Somewhat easier to emulate or copy

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Value Added Services

• Value-added services differentiate the
  organization from competitors and build
  relationships that bind customers to the firm in
  a positive way (sales and field support, problem
  solving, etc.)
• Significantly more difficult to copy and implement

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Case Fast-Food Feast, p. 21

• Please read this very short case and visit
  McDonalds and one more fast-food restaurant.
• You do not have to eat there but make sure to
  observe as much as possible how they prepare
  their meals using the seven questions listed on
  page 21.
• Also, please read the article McDonald's focus
  flips back to fast
• Discuss case

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Case Questions

• What do these different fast food restaurants
  sell?
• Does each of them sell something different?
• What is different about the operations of these
  restaurants?
• Processes, Technology, Service Speed, Capacity,
  Flexibility
• How do these stores make hamburgers?
• Did you notice any differences?
• What are sources of variability that these stores
  must deal with?
• How do these businesses ensure quality?