Week 1 Presentation

Welcome

Course Structure

Strategy

Welcome

• Operations Management (OM) – The management of the processes that produce goods and services.

• OM is an important tool for competitive advantage

• A key management skill

Course Structure

• 15 weeks• Weekly assignments and discussion board• Weekly online work, 4 on campus meetings,

weekly team collaboration• Class team project• Grading

Discussion Boards 30%Weekly Assignments 20%Class project 40%Participation 10%

Strategy

• Corporate – What business are we in• Business - How do we compete• Functional - Functional strategies used to meet

business strategy

OM – functional strategy that manages the processes that transform inputs (raw materials) into outputs (goods and services)

OM Strategy Example 1

• Business Strategy – We in tend to create and sell the best Pizza in our part of the state

• Functional StrategyWe buy the best ingredientsWe install a coal or wood ovenWe use a secret family recipeWe use only experienced pizza chefs and take the

time needed to create a quality product

OM Strategy Example 2

• Business strategy- We will create and sell inexpensive pizza and deliver it 7 X 24We buy inexpensive ingredients

We automate the pizza creation process so that we can use inexperienced chefs

We install an automated cooking system to minimize cooking time

We deliver 7 X 24

Organizational Success

• Objectives are achieved when –– Are realistic– Functional strategies support objectives