Intro and Operations Strategy - compeleted-1

Intro and Operations Strategy - compeleted-1 - DSC 335...

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1 DSC 335 DSC 335 Operations Management Instructor: Zhibin Yang Assistant Professor Decision Sciences Department
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2 DSC 335 Southwest Airlines q One of the most profitable Airlines q Lowest customer complaints (delay, lost luggage, etc.) q Turnaround time = 25 minutes, compared to 30 minutes of its competitors.
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3 DSC 335 (cont’d) Southwest Airlines q Why does Southwest Airlines care about turnaround time? q 1-minute fleet-wide saving on turnaround time = adding 5 airplanes, q Five airplanes create 5x$25M = $125 M in revenue q A solution: to cut boarding time by using smart boarding strategies
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4 DSC 335 Flight Boarding Strategies q New boarding procedure at Southwest Airlines q Southwest new boarding procedure q Three boarding groups q Open-seating policy q What airplane boarding strategies have you seen? q Random: customers seat themselves q By seat row: back to front q By block (a cluster of rows) q By seat column: window to aisle q By class: First-class first
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5 DSC 335 Exercise – Boarding a Mini-airplane q Operations strategy - boarding exercise.pptx Statistics q Random: q Row first: q Column: 2A 1A 2B 1B 2C 1C 2D 1D
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6 DSC 335 Can you think of anything better?
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7 DSC 335 Reverse Pyramid Boarding Strategy Plane Geometry: Scientists Help Speed Boarding of Aircraft (WSJ Nov 2, 2005) q In September 2003, America West Airlines (now part of US Airways) introduced an innovative boarding strategy “Reverse Pyramid Boarding Strategy”, q Saved boarding time by over 2 minutes (about 20%)
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8 DSC 335 (cont’d) q A combination of Back-to-Front and Window-to-Aisle q “… results obtained show … a significant improvement in terms of boarding time over traditional pure back-to-front , outside-inside boarding strategies.” Board first Board last
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9 DSC 335 Boarding a Mini-airplane – reverse pyramid q Who goes first? q Who goes last? 2A 1A 2B 1B 2C 1C 2D 1D
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10 DSC 335 Operations management in action q In the above example, we achieve cost saving q With redesigning the process q Without additional investment on airplanes, constructions, hiring crews q Operations management is about saving costs and efficient use of resources by “smart thinking” and “calculated actions”
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11 DSC 335 Examples of operations (beyond airlines) q Production (manufacturing, assembly) q Inventory management q Distribution and logistics q Customer service (call centers)
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12 DSC 335 Strategic Role of Operations in Organizations Capital Markets FINANCE Labor Markets HUMAN RESOURCES Input Product Markets P U R C H A S I N G Output Product Markets M A R K E T I N G What is missing? Functions in a typical firm
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13 DSC 335 Input Product Markets Output Product Markets Labor Markets Capital Markets Operations (cont’d) FINANCE HUMAN RESOURCES P U R C H A S I N G M A R K E T I N G Operation is the core function of the organization
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14 DSC 335 How about getting a job?
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15 DSC 335 Job opportunities in operations management q Manufacturing : Nike, Dell, HP, etc. q
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This note was uploaded on 04/05/2012 for the course DSC 335 taught by Professor Tolgaaydinliyim during the Fall '10 term at University of Oregon.

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Intro and Operations Strategy - compeleted-1 - DSC 335...

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