The Importance of Operations Management
ISQS 3344 Test 1 review
Chapter 1
What employers want
The ability to think cross functionally
Working in teams and collaborative learning
Increase productivity and knowledge by 50%
Operations management- the science and art of ensuring that goods and services are created and delivered successfully to customers.
Planning
Directing
Controlling
Organizing
Government regulations- California 2006
Increase mpg standard for all vehicles or pay fine
Lots of hybrids sold but companies that didn’t have hybrids couldn’t sell
(gm, ford, Chrysler)
Why is operations management important
Heart of organization
Operations are task that create value
Why is there an advantage to having a weak dollar?
Our stuff is more attractive because its less expensive
When we export oil- its better for oil companies worse for us consumers
Farmer and rancher story- Getting goods the U.S. cheaper forcing others to drop and train for something else
Had one month to interview and lay off 800 workers in a small textile plant
How does productivity increase in a recession
Less man hours to do job
Fewer people do the same job
Keeps inflation from going up
Industrial production has gone up and employees have gone down
Productivity= outputs/ inputs
Productivity index
Growth rate= p2-p1/p1
Worked for health tex (kids close) one worker operates 12 sewing machine by using one computer to operate them all
5 people did the same thing at once and this increased productivity by 40% working in teams increases productivity
People are the biggest part of operation
Hydrill story- hydrill companies get rid of machine workers to train cheap labor workers to push buttons on computerized machines.
40% of jobs are operations management
Story – lived in ransom canyon bought sprinkler system 30 seconds of sprinkler system adjustment cost 75 dollars.
Manager needs to train employees when a moment of truth is and how to react to fix it
New trends in OM
Chapter 1
What employers want
The ability to think cross functionally
Working in teams and collaborative learning
Increase productivity and knowledge by 50%
Operations management- the science and art of ensuring that goods and services are created and delivered successfully to customers.
Planning
Directing
Controlling
Organizing
Government regulations- California 2006
Increase mpg standard for all vehicles or pay fine
Lots of hybrids sold but companies that didn’t have hybrids couldn’t sell
(gm, ford, Chrysler)
Why is operations management important
Heart of organization
Operations are task that create value
Why is there an advantage to having a weak dollar?
Our stuff is more attractive because its less expensive
When we export oil- its better for oil companies worse for us consumers
Farmer and rancher story- Getting goods the U.S. cheaper forcing others to drop and train for something else
Had one month to interview and lay off 800 workers in a small textile plant
How does productivity increase in a recession
Less man hours to do job
Fewer people do the same job
Keeps inflation from going up
Industrial production has gone up and employees have gone down
Productivity= outputs/ inputs
Productivity index
Growth rate= p2-p1/p1
Worked for health tex (kids close) one worker operates 12 sewing machine by using one computer to operate them all
5 people did the same thing at once and this increased productivity by 40% working in teams increases productivity
People are the biggest part of operation
Hydrill story- hydrill companies get rid of machine workers to train cheap labor workers to push buttons on computerized machines.
40% of jobs are operations management
Story – lived in ransom canyon bought sprinkler system 30 seconds of sprinkler system adjustment cost 75 dollars.
Manager needs to train employees when a moment of truth is and how to react to fix it
New trends in OM