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You order a computer from Dell. What are the different steps that Dell takes in fulfilling your request? You walk into a car dealership, and drive out with a new car. What steps had to be completed to get that car to you? You go into a restaurant for a fine meal. What steps did the restaurant have to go through to create a satisfactory experience for you?
Part 1 Process Analysis
7
8
What is Operations?
Execution: Transform Inputs Into Outputs
Inputs BUY
Inputs Capital Materials Equipment Facilities Labor Knowledge Time
5 6
Learning Objectives
• Exemplify a typical business process and how it can be analyzed • Compare different types of processes • Analyze manufacturing, service, and logistics processes to ensure the competitiveness of a firm • Understand Little’s Law
PURCHASING
MARKETING
Output Product Markets
Outputs can be products, services, or (more typically) a combination
HUMAN RESOURCES Labor Markets
11
12
Outputs are a combination of product and service
Due at the start of class on the due date Only hard copies will be accepted Each team should consist of 4 students
Course outline
Part 1 Process Analysis Part 2 Waiting Line Management Part 3 Inventory Management Part 4 Newsvendor Model & Revenue Management Part 5 Project Management Part 6 Supply Contracts Part 7 Demand Management & Forecasting Part 8 Scheduling Part 9 Quality Management (QM), Just-in-time (JIT), Material Requirements Planning (MRP), Enterprise Resource Planning (ERP)
17
Sales
R&D
Production
Finance
Processes
18
What is Operations Management (OM)?
Operations Management
Transformation Process
Which processes are we interested in?
The Process Perspective
A process is a collection of connected activities or tasks that transforms inputs into outputs
13
14
Examples of processes
Every organization has several processes
Delivering value by the proper execution of strategic goals Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan
– “When companies fail to deliver on their promise, the most frequent explanation is that the … strategy was wrong. But the strategy is … not often the cause. Strategies fail most often because they are not executed well.” – Three Key Points of Execution 1. Execution is a discipline, and integral to strategy 2. Execution is the major job of the business leader 3. Execution must be a core element of an organization’s culture
At a PC manufacturer … Assembly Process: Transforms circuit boards, a PC case, screws, wires, … and assemblers’ time into assembled PCs Order Fulfillment: Transforms customer orders into delivered orders Accounting Process: Transforms data into financial statements Strategic Planning Process: Transforms inputs including information (about competitors and the external environment) and planners’ time into a strategic plan
1
2
Course materials
Required:
Course syllabus and lecture notes F. Robert Jacobs and Richard B. Chase (2014) Operations and Supply Chain Management McGraw-Hill, 14th edition, ISBN: 978-0-07-802402-3
3
Final Exam
4
I want to emphasize
Class attendance and participation is required Please turn off your mobile phone or switch it to silent mode Keep your laptop usage to a minimum during the class Individual and team assignments
Who am I?
ITL322 Operations Management
Instructor: Yang, Hangjun
Yang, Hangjun (杨杭军) Ph.D. in Transport Economics & Operations Management Sauder School of Business, University of British Columbia, Canada Associate Professor in Transport Economics & Logistics, UIBE Email: hangjunyang@uibe.edu.cn Office: Boxue Building 1213 Office hours: Tuesdays 16:00–17:00, and by appointment Office phone: 6449-3638 Hobbies: Badminton, Table Tennis, etc.
Make/create
–
Inputs
Outputs
Sell
– –
Move
Operations Management is the management (design, operation, and improvement) of the transformation processes that create value.
Operations management studies the buy, make, sell, and move processes Buy
– Procurement/Financing/Hiring Design/Manufacturing/Production/Service Distribution/Marketing Logistics/Transportation/Warehousing
MAKE/ CREATE
Transformation • Buy • Make/ Create • Sell • Move
SELL
Outputs
• • • • • • •
9
Outputs • Prowenku.baidu.comucts • Services
10
Capital Markets
Some important observations
FINANCE
Business “operations” management has traditionally been associated with physical goods
– Manufacturing and logistics, etc.
Input Product Markets
Marketing
• The question to be analyzed determines the appropriate level of aggregation
– Long term planning: Requires highly aggregated models – Operational decision or IT system design: requires very detailed models
Processes can be viewed at many levels
Inputs BUY MAKE/ CREATE SELL Outputs
Processes are often “invisible”
CEO
A process can consist of several sub-processes
Grading
Class Participation Individual Assignments
2 Problem Sets: 10% Each
20% 20% 20% 40% 100%
Team Assignments
2 Case Studies: 10% Each
Recommended:
Recommended readings posted on TAS platform 任建标译F. Robert Jacobs and Richard B. Chase (2014)中文版第14版 ，《运营管理》，机械工业出版社，ISBN: 978-7-111-49299-3 William J. Stevenson (2012), Operations Management McGraw-Hill, 11th edition, ISBN: 978-0-07-110754-9 ISBN: 978-7-111-36895-3,《运营管理》，机械工业出版社
You order a computer from Dell. What are the different steps that Dell takes in fulfilling your request? You walk into a car dealership, and drive out with a new car. What steps had to be completed to get that car to you? You go into a restaurant for a fine meal. What steps did the restaurant have to go through to create a satisfactory experience for you?
Part 1 Process Analysis
7
8
What is Operations?
Execution: Transform Inputs Into Outputs
Inputs BUY
Inputs Capital Materials Equipment Facilities Labor Knowledge Time
5 6
Learning Objectives
• Exemplify a typical business process and how it can be analyzed • Compare different types of processes • Analyze manufacturing, service, and logistics processes to ensure the competitiveness of a firm • Understand Little’s Law
PURCHASING
MARKETING
Output Product Markets
Outputs can be products, services, or (more typically) a combination
HUMAN RESOURCES Labor Markets
11
12
Outputs are a combination of product and service
Due at the start of class on the due date Only hard copies will be accepted Each team should consist of 4 students
Course outline
Part 1 Process Analysis Part 2 Waiting Line Management Part 3 Inventory Management Part 4 Newsvendor Model & Revenue Management Part 5 Project Management Part 6 Supply Contracts Part 7 Demand Management & Forecasting Part 8 Scheduling Part 9 Quality Management (QM), Just-in-time (JIT), Material Requirements Planning (MRP), Enterprise Resource Planning (ERP)
17
Sales
R&D
Production
Finance
Processes
18
What is Operations Management (OM)?
Operations Management
Transformation Process
Which processes are we interested in?
The Process Perspective
A process is a collection of connected activities or tasks that transforms inputs into outputs
13
14
Examples of processes
Every organization has several processes
Delivering value by the proper execution of strategic goals Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan
– “When companies fail to deliver on their promise, the most frequent explanation is that the … strategy was wrong. But the strategy is … not often the cause. Strategies fail most often because they are not executed well.” – Three Key Points of Execution 1. Execution is a discipline, and integral to strategy 2. Execution is the major job of the business leader 3. Execution must be a core element of an organization’s culture
At a PC manufacturer … Assembly Process: Transforms circuit boards, a PC case, screws, wires, … and assemblers’ time into assembled PCs Order Fulfillment: Transforms customer orders into delivered orders Accounting Process: Transforms data into financial statements Strategic Planning Process: Transforms inputs including information (about competitors and the external environment) and planners’ time into a strategic plan
1
2
Course materials
Required:
Course syllabus and lecture notes F. Robert Jacobs and Richard B. Chase (2014) Operations and Supply Chain Management McGraw-Hill, 14th edition, ISBN: 978-0-07-802402-3
3
Final Exam
4
I want to emphasize
Class attendance and participation is required Please turn off your mobile phone or switch it to silent mode Keep your laptop usage to a minimum during the class Individual and team assignments
Who am I?
ITL322 Operations Management
Instructor: Yang, Hangjun
Yang, Hangjun (杨杭军) Ph.D. in Transport Economics & Operations Management Sauder School of Business, University of British Columbia, Canada Associate Professor in Transport Economics & Logistics, UIBE Email: hangjunyang@uibe.edu.cn Office: Boxue Building 1213 Office hours: Tuesdays 16:00–17:00, and by appointment Office phone: 6449-3638 Hobbies: Badminton, Table Tennis, etc.
Make/create
–
Inputs
Outputs
Sell
– –
Move
Operations Management is the management (design, operation, and improvement) of the transformation processes that create value.
Operations management studies the buy, make, sell, and move processes Buy
– Procurement/Financing/Hiring Design/Manufacturing/Production/Service Distribution/Marketing Logistics/Transportation/Warehousing
MAKE/ CREATE
Transformation • Buy • Make/ Create • Sell • Move
SELL
Outputs
• • • • • • •
9
Outputs • Prowenku.baidu.comucts • Services
10
Capital Markets
Some important observations
FINANCE
Business “operations” management has traditionally been associated with physical goods
– Manufacturing and logistics, etc.
Input Product Markets
Marketing
• The question to be analyzed determines the appropriate level of aggregation
– Long term planning: Requires highly aggregated models – Operational decision or IT system design: requires very detailed models
Processes can be viewed at many levels
Inputs BUY MAKE/ CREATE SELL Outputs
Processes are often “invisible”
CEO
A process can consist of several sub-processes
Grading
Class Participation Individual Assignments
2 Problem Sets: 10% Each
20% 20% 20% 40% 100%
Team Assignments
2 Case Studies: 10% Each
Recommended:
Recommended readings posted on TAS platform 任建标译F. Robert Jacobs and Richard B. Chase (2014)中文版第14版 ，《运营管理》，机械工业出版社，ISBN: 978-7-111-49299-3 William J. Stevenson (2012), Operations Management McGraw-Hill, 11th edition, ISBN: 978-0-07-110754-9 ISBN: 978-7-111-36895-3,《运营管理》，机械工业出版社