om1-4Metrics, Also referred to as KPI (Key Performance Indicators)•What is the MOST IMPORTANT measurement in Operations?–CUSTOMER SERVICE!•What is the second most important metric in Operations?–COST!
om1-5Conflicts in Operations Mgt.Copyright DHS & Assoc. LLC 2017•Most important metrics are –Customer Service–Cost•High inventory or very flexible capacity can often support high customer service•High inventory or very flexible capacity can often cause higher cost however!
om1-7Why Plan? •Customer demand variation•Competition and associated variation•Technology and associated variation•Manufacturing and service process variation•Other variation?•The main tools beyond market insight are flexibility and responsiveness (speed)–Buffer capacity for agility–Buffer inventory for responsiveness80% of Operations Management is PLANNING!There is an enormous amountof variation in Ops MgtStopped here