Information Management and Operations Overview

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Information Management and Operations Overview
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For Next Week

• No Class on Monday MLK Holiday
• For Wednesday, 1/23
• Read
• Pages 1-27 of Business Intelligence Making
  Better Decisions
• Pages 43-52 of Casino Operations Management
• Pages 1-14 of Harrahs Entertainment Inc.
  Available on CULearn in the Additional Readings
  Folder
• First CULearn On-Line Quiz will cover these
  readings Open 730 1130 AM

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Operations
Operations is all about adding value, and
creating wealth.
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Information
In order to know how much wealth you are
creating (or losing), you must collect and
organize relevant information about your
operations.
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Operations 80-90 Hidden
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Transformation Definition
Data
Usable Information
Feedback
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Transformation Definition

• Managers transform inputs into outputs
• Example Accounting Manager
• Inputs data, materials, labor
• Transformation application of accounting
  principles and knowledge
• Outputs accounting reports, knowledge of
  performance, ...
• All managers have an operation to run
• Therefore
• All managers are Operations Managers!

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Continuum of Characteristics
Regardless of orientation, information is
required to understand the operations
performance.
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Economic Definition
Operations is responsible for improving
the production function of the
firm. Information is required to understand how
well the organization is performing.
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Bicycle Manufacturing
Huffy
Capital Used (equipment) per unit produced
Serotta
Trek
Labor Used per unit produced
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Bicycle Manufacturing
Desirable
Undesirable!
Capital Used (equipment) per unit produced
Efficient Frontier
Desirable
Desirable
Labor Used per unit produced
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Added-Value Definition
BusinessEnvironment
The Firm
Value Chain
Suppliers
Customers
Competitors
adapted from Porter, Competitive Advantage, Free
Press, 1985
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Added-Value Definition

• Inputs
• Materials
• Labor
• Demand
• Competition
• Ideas
• Technology

• Outputs
• Goods Services
• Products

How?
Marketing and Operations touch the product
Marketing
Operations
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Added-Value Definition
Operations is the fundamental means by which
firmsAdd Value
Information is the way to measure this value.
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How do Firms Add Value?

• Greater Flexibility
• Greater variety
• Customization for customer needs / desires
• Useful Innovation
• Features, technology
• Better performance
• New capabilities
• Often unrecognized

• Greater Productivity
• Lower costs and expenses
• Lower prices for the customer
• Higher Quality
• Better performance
• Greater durability, reliability, aesthetics, ...
• Better Timeliness
• Faster response and turnaround
• On-time delivery, meet promises

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Key Points
Operations is all about adding value for
customers. Without value, there is no business.
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Key Points
Usable information must be captured and organized
in a way that managers can understand how much
value has been added.
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Key Points
Every manager is an operations manager --
responsible for a transformation process
measured in operating terms (productivity,
quality, )