CHAPTER 1 INTRODUCTION TO THE FIELD
Review and Discussion Questions 1.
What is the the diff differenc erencee between between OM and and OR/MS OR/MS?? Between Between OM OM and IE?
Operations Management (OM is a s!nthesis of concepts and techni"#es that re$ate direct$! to prod#ction s!stems s!stems and enhance enhance their management management.. Operatio Operations ns Management Management has a distinct distinct manageme management nt ro$e that differentiates differentiates it from OR and IE. Operations Managers Managers #se the too$s of OR in decision ma%ing and are are concerned concerned with man! of the same iss#es iss#es as Ind#stri Ind#stria$ a$ Engineers. Engineers. Operatio Operations ns Research Research/Man /Manageme agement nt Science (OR/MS is a branch of app$ied mathematics& whi$e Ind#stria$ Engineering (IE is an engineering discip$ine. '.
ow wo#$d wo#$d !o# !o# distin disting#i g#ish sh OM from managem management ent and orga organi) ni)ati ationa ona$$ beha*i beha*ior or as ta#ght ta#ght at !o#r !o#r #ni*ersit!?
Management and organi)ationa$ beha*ior is concerned with the form#$ation of corporate strategic po$ic!. Operations Management is concerned with the operations strateg!& which specifies how the firm wi$$ emp$o! its prod#ction capabi$ities to s#pport its corporate strateg!. +.
,a%e ,a%e a $oo% at the want ads in ,he ,he Wa$$ Wa$$ Street Street -o#rna$ -o#rna$ and e*a$#ate e*a$#ate the opport#n opport#nitie itiess for an OM maor with se*era$ !ears of eperience.
,he fo$$owing are some eamp$es of obs a*ai$ab$e to OM grad#ates with se*era$ !ears of eperience from the Wa$$ Street -o#rna$& -an#ar! 10& '.
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2hapter 1
Some additiona$ ad*ertisements.
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What factors acco#nt for the res#rgence of interest in OM toda!?
With the epanding obecti*es of prod#cti*e s!stems combined with increased app$ications to ser*ices and increased efficienc! of -apanese prod#cers& there is increased interest in n#ts and bo$ts iss#es. 4. 5sing Ehibit 1.' as a mode$& describe the inp#t6transformation6o#tp#t re$ationships fo#nd in the fo$$owing s!stems7 a. 8n air$ine Inp#ts7 passengers 2omponents7 p$anes& crews& e"#ipment& termina$s 9rimar! f#nctions7 transportation O#tp#t7 satisfied& safe c#stomers b.
8 state penitentiar! Inp#ts7 crimina$s 2omponents7 $ega$ s!stem& ph!sica$ p$ant (prison& g#ards and s#pport staff 9rimar! f#nctions7 segregation of prisoners from societ!& p#nishment& rehabi$itation O#tp#t7 reformed societ! members
c.
8 branch office of a ban% Inp#ts7 c#stomers 2omponents7 te$$ers& ban% officers& te$$er windows& s!stems 9rimar! f#nctions7 deposit and withdrawa$ hand$ing& $oan initiation& storing mone! and *a$#ab$es O#tp#t7 satisfied c#stomers& positi*e ret#rn on $oan ratios
d.
,he home office of a maor ban%ing firm Inp#ts7 paperwor% from c#stomers and other instit#tions 2omponents7 $oan #nderwriters& c$er%s& comp#ter s!stems 9rimar! f#nction7 record6%eeping& $oan processing& coordinating cash f$ows O#tp#t7 satisfied c#stomers& so#nd in*estment portfo$ios
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Introd#ction to the :ie$d
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S%etch the prod#ction6de$i*er! s!stem #sed b! 2M8<.com So$emates& Inc. in pro*iding the c#stom tennis shoes. 2o#$d this approach be app$ied to other cons#mer goods? =i*e eamp$es.
Customer visits Website
Consumer orders for custom shoes
Promotional Footwear Orders (>30 pairs)
Manufacturin of shoes in China
Manufacturin of shoes in China
!P" #eliver$ %&' wees eadtime
!P" #eliver$ *&+ wees eadtime
,his charts the f$ow of the 2M8<.com So$emates& Inc.>s prod#ction s!stem. ,he prod#ction process combines mass prod#ction capabi$it! with high c#stomi)ation. ,his is possib$e in part d#e to the #se of f$eib$e man#fact#ring. ,he needs and wants of the c#stomer are considered at e*er! step of the process. ,his approach can be app$ied in a $arge n#mber of ind#stries. owe*er& the approach seems most appropriate in recreationa$ cons#mer goods and prod#cts re"#iring high c#stomi)ation. Man! prod#ction companies ha*e high *o$#me and $ow *o$#me $ines. Man! $ow *o$#me prod#ction faci$ities co#$d $earn from the 2M8<.com So$emates& Inc..
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S#ppose that Ro$$ing Stone presented the fo$$owing head$ines re$ating to OM. historica$ e*ents or indi*id#a$s wo#$d the! be referring to?
What partic#$ar
O@ER 4 B8AIIOC SOD ,O D8,E66Refers to McDona$ds and their #ni"#e approach to "#a$it! and prod#cti*it! that stands as a reference point for de$i*ering high6*o$#me standardi)ed ser*ices. BE8C,OWC B6S2OO DIS2O@ERS FO5 28C, 8@E I, 8666Refers to ar*ard professors Wi$$iam 8bernath!& Gim 2$ar%& Robert a!s& and Ste*en Whee$wright and the emphasis on a man#fact#ring strateg! based on tradeoffs among performance meas#res. IC@EC,ORFHO COH,aichi Ohno>s s#ccessf#$ imp$ementation of the -#st6In6,ime phi$osoph! at ,o!ota Motors in the ear$! 1J0s& dramatica$$! decreased in*entor! $e*e$s. B5SICESSES 5SE 8 BI= 8MMER ,O :OR2E 28C=E66Michae$ ammer p#shed companies to become $ean b! see%ing inno*ations in processes b! which the! r#n their operations. ,his approach became %now as b#siness process reengineering (B9R. :8S, ECRF BE2OMES M8R@E O: MO,OWC66,his refers to enr! :ord as the first to de*e$op a high$! integrated& efficient prod#ction s!stem. ES RE2I9E :OR BI= K S,EWHRefers to "#a$it! g#r#s s#ch as W. E. Deming& -oseph -#ran& 8rmand :eigenba#m and 9hi$ip 2rosb!.
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2hapter 1
1 BIIOC :8< M82ICES D5M9ED IC ,E O2E8C66Refers to the obso$escence of the fa machine with the widespread adoption of the Wor$d Wide Web (WWW and the Internet in genera$ for b#siness comm#nications. L,E 28IC =8C=L MO@ES ,O ,O9 O: ,E 28R,S66S#pp$! chain management has emerged an important aspect of b#siness.
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