MBAA 607- Operations Analysis & Decision Support Systems Spring 2015 Monday 4:25-7:05 Dr. Linda Leon

What Is Operations Management? Operations management is the set of activities that creates goods and services by transforming inputs into outputs Production is the creation of goods and services

Options for Increasing Contribution

Productivity = Output/Input where inputs include  labor  capital  materials  time  information  energy And output measures output produced, not necessarily sold

Occur when output increases more than input or when input decreases more than output. Measure process improvement and are correlated with improved standard of living Since 1869, U.S. productivity increased at an average rate of 2.5% per year. In 21 st century, U.S. productivity has been slightly lower than 2.5 % per year on average Productivity Increases

Variables that Create Productivity Increases Labor (10%) Capital (38%) Management (52%)

Learning Outcomes To model various operations management and decision-making problems using quantitative techniques To analyze various operations management and decision-making problems encountered in today’s business world, including process analysis, quality management, demand forecasting, inventory management, resource management, and supply chain management.

New Challenges in OM Local or national focus Batch shipments Low bid purchasing Lengthy product development Standard products Short-term low costs Global focus Just-in-time Supply chain partnering Rapid product development, alliances Mass customization Sustainability FromTo From To

Learning Outcomes To integrate information provided by use of computer models into the decision-making process and be aware of the limitations of the underlying quantitative technique and assumptions.