1. OPERATIONS MANAGEMENT for MBAs Fourth Edition
Meredith and Shafer
John Wiley and Sons, Inc.
Topic 1: Operations Strategy
Chapter 1: Operations Strategy

2. Outline Course Coverage Introduction to Operations Management
Start Capacity Planning

3. Coverage Selected topics in Chapters; 1, 8, 8S, 7, 7A, 7B, 3, 4, 5
Other OM Topics
Cases
- HP DeskJet, Hayworth, FoxMeyer
Homework
- Excel Tools, Solver, Simulator
Simulations
Exams

4. Wal-mart vs. Kmart Revenue / Sales Stores
2002 bankruptcy and merger with Sears
Chapter 1: Operations Strategy

5. Operations Heart of every organization
Operations are the tasks that create value
Chapter 1: Operations Strategy

6. Operations Adds Value Pricing, Availability Demand Borrowing Defects
Satisfied Call
Order errors
Utilization
Variability
Wait time
Change suppliers
Add capacity
Chapter 1: Operations Strategy

7. Quality Service/product design Process design Continuous improvement
Purchasing
Service/product design
Problem-solving tools
Benchmarking
Employee involvement
Continuous improvement
Customer satisfaction
Chapter 1: Operations Strategy

8. Innovation, Operations, & IT
Chapter 1: Operations Strategy

9. Innovation, Operations, & IT
Chapter 1: Operations Strategy

10. Creativity Exercises
= 5 4 6

11. Diversity and Importance of Operations
Improvements in operations can simultaneously lower costs and improve customer satisfaction.
Improving operations often dependent on advances in technology.
Can obtain competitive advantage by improving operations.
Diversity of Operations
Chapter 1: Operations Strategy

12. Emerging Issues and Trends in OM
Productivity improvement
Supply chain management
New technologies
Global competition
Ethical, workforce, and environmental issues
Lean
Chapter 1: Operations Strategy

13. Country Productivity
Chapter 1: Operations Strategy

14. Chapter 1: Operations Strategy

15. Chapter 1: Operations Strategy

16. Our Philosophy
PFSweb is an outsourcing solutions design firm with an extensive offering of world-class logistics, fulfillment, customer care and technology infrastructure that can be leveraged to create unique, client-specific business solutions. Our philosophy is not to fit your business model into our pre-existing infrastructure, but rather to develop our infrastructure around your unique needs. We are flexible, scalable, and adaptable so we can keep pace with your ever-changing needs, whether you are adding new sales channels, marketing initiatives, vendor managed inventory (VMI) programs or special projects. We realize that no two clients face the exact same challenges, and for that reason, we are always extending our technology and operations capabilities based directly on client needs. Our philosophy is that there is absolutely no favorable argument for you to consider outsourcing with PFSweb unless we can execute at a greater performance level than what you could achieve in-house or through an alternative partner.
Chapter 1: Operations Strategy

17. Chapter 1: Operations Strategy

18. The Supply Chain View
Core processes are sets of activities that deliver value to external customers
Supplier relationship process
New service/product development process
Order fulfillment process
Customer relationship process
Support processes provide vital resources and inputs to the core processes
Chapter 1: Operations Strategy

19. Operations Activities
Strategy
Output Planning
Capacity Planning
Facility Location
Facility Layout
Aggregate Planning
Inventory Management
Materials Requirements Planning
Scheduling
Quality Control
Chapter 1: Operations Strategy

20. OM Career Opportunities
Operations Analyst
Inventory Management
Forecasting
Purchasing
Quality
Industrial Engineering
Logistics
Distribution
Project Management
Chapter 1: Operations Strategy

21. Defining and Measuring Quality
Conformance to specifications
Performance
Quick response
Quick-change expertise
Features
Reliability
Durability
Serviceability
Aesthetics
Perceived quality
Humanity
Value
Chapter 1: Operations Strategy

22. Core Competencies
Collective knowledge and skills an organization has that distinguish it from the competition.
Typically center on an organization’s ability to integrate a variety of specific technologies and skills in the development of new products and services.
Building blocks of core capabilities.
Chapter 1: Operations Strategy

23. Core Competencies continue
Are basis on which new outputs are developed.
Better to think of organization in terms of its portfolio of core competencies than as a portfolio of products.
Identifying and developing core competencies is one of top management’s most important roles.
Organization practices and business processes
Chapter 1: Operations Strategy

24. Examples of Core Competencies
Chapter 1: Operations Strategy

25. FedEx – Value Chain
Chapter 1: Operations Strategy

26. Where should OM initiatives be focused first?

27. Vision and Mission Statements
Vision statements used to express organization’s values and aspirations.
Mission statements express organization’s purpose or reason for existence.
Chapter 1: Operations Strategy

28. Order Qualifiers and Winners
Order qualifiers are characteristics that are the ante to enter the market
Order winners are characteristics that win the customer’s purchase
Chapter 1: Operations Strategy

29. Examples
Chapter 1: Operations Strategy