Variations can be disruptive to operations and supply chain processes They may

Variations can be disruptive to operations and supply

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Variations can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems. LO 1.5 LO 1.5
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1-17 Scope of Operations Management The operations function includes many interrelated activities such as: Forecasting Capacity planning Facilities and layout Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities And more . . . The scope of operations management ranges across the organization. The scope of operations management ranges across the organization. LO 1.6 LO 1.6
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1-18 Role of the Operations Manager The Operations Function consists of all activities directly related to producing goods or providing services. A primary function of the operations manager is to guide the system by decision making. System Design Decisions System Operation Decisions LO 1.6 LO 1.6
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1-19 System Design Decisions System Design Capacity Facility location Facility layout Product and service planning Acquisition and placement of equipment These are typically strategic decisions that usually require long-term commitment of resources determine parameters of system operation LO 1.6 LO 1.6
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1-20 System Operation Decisions System Operation These are generally tactical and operational decisions Management of personnel Inventory management and control Scheduling Project management Quality assurance Operations managers spend more time on system operation decision than any other decision area They still have a vital stake in system design LO 1.6 LO 1.6
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1-21 OM Decision Making Most operations decisions involve many alternatives that can have quite different impacts on costs or profits Typical operations decisions include: What: What resources are needed, and in what amounts? When: When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? Where: Where will the work be done? How: How will he product or service be designed? How will the work be done? How will resources be allocated? Who: Who will do the work? LO 1.7 LO 1.7
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1-22 General Approach to Decision Making Modeling is a key tool used by all decision makers Model - an abstraction of reality; a simplification of something. Common features of models: They are simplifications of real-life phenomena They omit unimportant details of the real-life systems they mimic so that attention can be focused on the most important aspects of the real-life system LO 1.7 LO 1.7
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1-23 Understanding Models Keys to successfully using a model in decision making What is its purpose? How is it used to generate results? How are the results interpreted and used? What are the model’s assumptions and limitations? LO 1.7 LO 1.7
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1-24 Benefits of Models 1. Models are generally easier to use and less expensive than dealing with the real system 2. Require users to organize and sometimes quantify information 3. Increase understanding of the problem 4. Enable managers to analyze “What if?” questions 5. Serve as a consistent tool for evaluation and provide a standardized format for analyzing a problem 6. Enable users to bring the power of mathematics to bear on a problem.
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  • Fall '17
  • Emily Yoon

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