MBAA 607- Operations Analysis & Decision Support Systems Spring 2011 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

U. S Productivity Increases productivity increased at average rate of 2.5% 1970s to mid-1980s productivity increased at only 1% to 1.5% per year (quality problems) Mid-1980s to 1995, the manufacturing sector increased its productivity rate by 2.5+% per year while the service sector lagged at % per year 1995 to 2005 productivity rate increased by 5.6% per year

Variables that Create Productivity Increases Labor Capital Management

Management Science A quantitative approach to decision making based on the scientific method of problem solving. Synonymous with operations research. Early roots in World War II; now flourishing in business and industry with the aid of computers.

Course Objectives To learn how to model operations management and decision-making problems using quantitative management science techniques To present various operations management and decision-making problems encountered in today’s business world

Quantitative Techniques Linear Programming Simulation Forecasting Decision Trees Project Management: PERT/ Critical Path Method (CPM)

Examples of Operation Management Applications Resource Allocation Scheduling Demand Forecasting Revenue (Yield) Management Planning Models Supply Chain Management Inventory Management Facility Location Analysis Transportation & Distribution Waiting Line Analysis Product Design & Development

Increasing Expected Productivity Assessing & Managing Operational Risk Forecasting & Planning Models Operations Analysis & DSS Tools Math Programming Simulation Models Decision Trees for Evaluating Alternatives Project Management

Course Objectives - Continued To develop analytical & computer modeling skills necessary to implement and analyze decision problems To learn how to integrate information provided by the use of quantitative techniques and computer models into the decision-making process and be aware of the limitations of the quantitative technique used