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Om Overview

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OM: Full Notes
Lecture 1: Chapter 1

What is OM?
Operations Management is the set of activities that creates goods and services by transforming inputs into outputs.
Why is OM important? Text book lists four reasons: * To see how people organize themselves for productive enterprise * To understand how goods and services are provided * To understand what operations managers do * Because it is such a costly part of an organization
Productivity Measurement:
Outputs Produced
Inputs Used Single Factor: One good over one input; ie Output/ Labour Multifactor: Output/(Labour +Material +Energy +Capital +Misc.) The controlled variables that go into productivity are: * Labour * Capital * Management
Note: Quality Changes, External Elements, and a lack of Precise Units of Measure may also change productivity without managerial changes.

Lecture 2: Hand Puppet Exercise

Task Time: * time it takes to complete a given task Cycle Time: * time from the completion of one unit until the completion of the next unit
Throughput Time: * time from the start of work at task one, until the completion of work at the final task.
Realise that: A. The cycle time is a function of the bottleneck time, and therefore should be very similar in value B. Throughput time will include any wait times that occur for the product at the bottleneck C. Human nature will change the times and data D. It is the manager’s role to reduce bottlenecks and distribute tasks effectively to improve efficiency and speed.

Lecture 3: Chapter 2

What is Operations Strategy? * Setting broad policies and plans to achieve a firms long term missions and goals

Competing On: Differentiation: * Being different than competitors by doing things that the customer will perceive as having added value * Experience Differentiation: is

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