ISOM-319 notes
Monday/Wednesday 1:00-2:15
Lecture #1: 9/9:
● Operations management defined: How the stuff gets done
○ Getting the raw resources
○ Supply chain management - getting material to factory
○ Managing inventory and day-to-day
○ Getting inventory to where it's going to be sold/to stores where it's going to be
sold
● Layout is a part of operations management
● Human resources -skill/human capital/operations
● ISOM-319 is not going to be math heavy, it is going to be more experiential learning
● Read Chapter 1 for next class!!!
Chapter 1 textbook notes Operations and Productivity:
● Operations management is a discipline that applies to a number of different industries
● Production is the creation of goods and services
● Operations management: is the set of activities that creates value in the form of
goods and services by transforming inputs into outputs
● The supply chain: Through 3 functions; marketing, operations, and finance - value or
a customer is created
● All organizations market (sell), finance (account), and produce (operate), and it is
important to know how the OM activities function
● A lot of OM stems from various other disciplines as well
● Inputs, go through a transformation via the U.S. economic system, and then turn into
outputs
● Productivity = units produced / input used
● There are a couple of multifactor productivity elements. They are:
○ Quality may change while the inputs and outputs remain consistent
○ External elements may cause an increase or decrease in productivity
○ Precise units of measure may be lacking
● Improvement in the amount of labor productivity is a healthy thing to have
● Capital: Humans are tool using animals, and human capital is a very important
resource to a business
● Measuring productivity in the service sector is much more difficult, because there are
no physical goods that are being produced
● There are a number of challenges that are present in operations management,
especially in a global environment. These challenges include:
○ Global focus
○ Supply-chain partnering
○ Sustainability
, ○ Rapid-product development
○ Mass customization
○ Just-in-time performance
Empowered employees
● There are always some sort of dilemmas that managers are faced with in business, and
often they pertain to the ethical compliance of policies/some aspects of their business
Lecture #2: 9/14:
● Operations and Productivity
● Operations Management has a few essential functions, in order to produce goods and
services
● The functions are:
○ Marketing - generates demand
○ Production/operations - creates the product
○ Finance/accounting - tracks how well the organization is doing, pays bills, and
collects the money
● Operations always play a very large role in each organization
● What is Operations Management?
● Production is the creation of goods and services
● Operations management is a set of activities that create value in the form of goods and
services by transitioning raw materials into goods and services by transitioning raw
materials into goods
● Members of supply chain collaborate to achieve high levels of customer satisfaction
● Process and capacity design: How is the product being made?
● Location: Where is the location? - Is it the best for the company?
● Layout: Is the store laid out in a way that makes sense
● Inventory and supply chain management:
○ Supply chain gets integrated into firms strategy
● Inventory Management
○ Inventory ordering
○ Scheduling/maintenance are also important
● OM relies on a number of different things:
○ Industrial engineering
○ Economics
○ Statistics
○ Education
● For our class it includes:
○ Using the internet
○ Layouts of presentations
○ Aspects of statistics and economics
● Services are intangible, there are only a few pure services
,● Distinguishing between characteristics of goods, and those of services is very
important
● Productivity: is the ratio of outputs (goods and services), divided by the inputs
(resources, such as labor and capital)
● The objective is to improve productivity
● Productivity = units produced / units used
● Multifactor productivity = output / Labor + material +energy + capital +
miscellaneous
● Measurement problems: There may be problems with different variables changing ,
and not being consistent
● Current challenges in OM:
○ Ethical challenges, and ensuring that production is maximizing shareholder
value
○ Looking at shareholders, is more important that looking at stakeholders
Lecture #3: 9/16:
● Reasons to globalize:
○ Improve supply chain
○ Reduce cost and exchange rate risks
● Trade agreements can lower tariffs
● This helps you understand and expand your markets as well
● Figuring out strategy, and mission, are very important
● The mission statement influences and provides motives for different aspects of
companies
● Strategy for competitive advantage:
○ Differentiation
○ Cost (cheaper)
○ Response time
● Factor rating method:
○ A company selects a number of factors that will impact decisions, and give
each factor a weight, to compare and contrast, using cost/benefit, for the
different options
Chapter 2 textbook notes: Operations strategy in a global environment
● Boeing has a very technologically savvy design, which the partnerships they have
with General Electric and Rolls-Royce definitely help this
● Doing this reduced emissions by 20%, and advanced engine technology by 8%
● State of the art technologies, and very strong supply chains massively help a business
● Having a global viewpoint of strategy helps operations managers a lot
● Globalization means customers, talent, and suppliers are worldwide
, ● There are generally 6 reasons that businesses decide to change their operations to
global:
○ Improve the supply chain
○ Reduce costs (labor, taxes, tariffs)
○ Improve operations
○ Understand markets
○ Improve products
○ Attract and retain global talent
● The supply chain can often be improved by locating facilities in countries, where
there are unique resources. Whether these are human capital, low cost labor, or raw
materials, these resources can definitely help a business improve
● Reduce costs: Going global, a company often seeks to reduce a lot of its operating
costs, as the country that a company may enter, might have cheaper costs for
producing and running the business there
● Improve operations: a company is able to learn how they can handle operations better
in a different country, and often are able to gain an understanding of consumer
behavior/manufacturing as well
● Understand markets: International operations require companies to understand foreign
trade, foreign investors, as well as foreign business regulations
● Improve products: Learning does not happen in isolation. Being able to learn about a
foreign culture and gain info from them is very important in global operations
● Being able to focus and hone in on your mission, in order to satisfy customers wants
and needs is very important in global operations
● With your mission established, implementing and utilizing your strategy in the foreign
market is a very important thing to do as well’
● Achieving competitive advantage through operations happens through either:
differentiation, cost or response
● Making sure your OM strategy is fully integrated with all other parts of your company
in a global environment is very important
Chapter 3 textbook notes
● Scheduling projects can be a difficult thing for managers to do
● Ensuring a project is planned and organized is extremely important as well. With this,
making sure programs are running smoothly, is also vital
● The project organization may be most helpful when:
○ Work tasks can be defined with a specific goal and deadline
○ The job is unique or somewhat unfamiliar to the organization
○ The work is complex, and completing interrelated tasks requires specialized
skills
● The work breakdown structure of a project is usually: project, major tasks in the
project, subtasks in the major tasks, activities to be completed
● Project scheduling involves allocating time and resources to individual projects
Monday/Wednesday 1:00-2:15
Lecture #1: 9/9:
● Operations management defined: How the stuff gets done
○ Getting the raw resources
○ Supply chain management - getting material to factory
○ Managing inventory and day-to-day
○ Getting inventory to where it's going to be sold/to stores where it's going to be
sold
● Layout is a part of operations management
● Human resources -skill/human capital/operations
● ISOM-319 is not going to be math heavy, it is going to be more experiential learning
● Read Chapter 1 for next class!!!
Chapter 1 textbook notes Operations and Productivity:
● Operations management is a discipline that applies to a number of different industries
● Production is the creation of goods and services
● Operations management: is the set of activities that creates value in the form of
goods and services by transforming inputs into outputs
● The supply chain: Through 3 functions; marketing, operations, and finance - value or
a customer is created
● All organizations market (sell), finance (account), and produce (operate), and it is
important to know how the OM activities function
● A lot of OM stems from various other disciplines as well
● Inputs, go through a transformation via the U.S. economic system, and then turn into
outputs
● Productivity = units produced / input used
● There are a couple of multifactor productivity elements. They are:
○ Quality may change while the inputs and outputs remain consistent
○ External elements may cause an increase or decrease in productivity
○ Precise units of measure may be lacking
● Improvement in the amount of labor productivity is a healthy thing to have
● Capital: Humans are tool using animals, and human capital is a very important
resource to a business
● Measuring productivity in the service sector is much more difficult, because there are
no physical goods that are being produced
● There are a number of challenges that are present in operations management,
especially in a global environment. These challenges include:
○ Global focus
○ Supply-chain partnering
○ Sustainability
, ○ Rapid-product development
○ Mass customization
○ Just-in-time performance
Empowered employees
● There are always some sort of dilemmas that managers are faced with in business, and
often they pertain to the ethical compliance of policies/some aspects of their business
Lecture #2: 9/14:
● Operations and Productivity
● Operations Management has a few essential functions, in order to produce goods and
services
● The functions are:
○ Marketing - generates demand
○ Production/operations - creates the product
○ Finance/accounting - tracks how well the organization is doing, pays bills, and
collects the money
● Operations always play a very large role in each organization
● What is Operations Management?
● Production is the creation of goods and services
● Operations management is a set of activities that create value in the form of goods and
services by transitioning raw materials into goods and services by transitioning raw
materials into goods
● Members of supply chain collaborate to achieve high levels of customer satisfaction
● Process and capacity design: How is the product being made?
● Location: Where is the location? - Is it the best for the company?
● Layout: Is the store laid out in a way that makes sense
● Inventory and supply chain management:
○ Supply chain gets integrated into firms strategy
● Inventory Management
○ Inventory ordering
○ Scheduling/maintenance are also important
● OM relies on a number of different things:
○ Industrial engineering
○ Economics
○ Statistics
○ Education
● For our class it includes:
○ Using the internet
○ Layouts of presentations
○ Aspects of statistics and economics
● Services are intangible, there are only a few pure services
,● Distinguishing between characteristics of goods, and those of services is very
important
● Productivity: is the ratio of outputs (goods and services), divided by the inputs
(resources, such as labor and capital)
● The objective is to improve productivity
● Productivity = units produced / units used
● Multifactor productivity = output / Labor + material +energy + capital +
miscellaneous
● Measurement problems: There may be problems with different variables changing ,
and not being consistent
● Current challenges in OM:
○ Ethical challenges, and ensuring that production is maximizing shareholder
value
○ Looking at shareholders, is more important that looking at stakeholders
Lecture #3: 9/16:
● Reasons to globalize:
○ Improve supply chain
○ Reduce cost and exchange rate risks
● Trade agreements can lower tariffs
● This helps you understand and expand your markets as well
● Figuring out strategy, and mission, are very important
● The mission statement influences and provides motives for different aspects of
companies
● Strategy for competitive advantage:
○ Differentiation
○ Cost (cheaper)
○ Response time
● Factor rating method:
○ A company selects a number of factors that will impact decisions, and give
each factor a weight, to compare and contrast, using cost/benefit, for the
different options
Chapter 2 textbook notes: Operations strategy in a global environment
● Boeing has a very technologically savvy design, which the partnerships they have
with General Electric and Rolls-Royce definitely help this
● Doing this reduced emissions by 20%, and advanced engine technology by 8%
● State of the art technologies, and very strong supply chains massively help a business
● Having a global viewpoint of strategy helps operations managers a lot
● Globalization means customers, talent, and suppliers are worldwide
, ● There are generally 6 reasons that businesses decide to change their operations to
global:
○ Improve the supply chain
○ Reduce costs (labor, taxes, tariffs)
○ Improve operations
○ Understand markets
○ Improve products
○ Attract and retain global talent
● The supply chain can often be improved by locating facilities in countries, where
there are unique resources. Whether these are human capital, low cost labor, or raw
materials, these resources can definitely help a business improve
● Reduce costs: Going global, a company often seeks to reduce a lot of its operating
costs, as the country that a company may enter, might have cheaper costs for
producing and running the business there
● Improve operations: a company is able to learn how they can handle operations better
in a different country, and often are able to gain an understanding of consumer
behavior/manufacturing as well
● Understand markets: International operations require companies to understand foreign
trade, foreign investors, as well as foreign business regulations
● Improve products: Learning does not happen in isolation. Being able to learn about a
foreign culture and gain info from them is very important in global operations
● Being able to focus and hone in on your mission, in order to satisfy customers wants
and needs is very important in global operations
● With your mission established, implementing and utilizing your strategy in the foreign
market is a very important thing to do as well’
● Achieving competitive advantage through operations happens through either:
differentiation, cost or response
● Making sure your OM strategy is fully integrated with all other parts of your company
in a global environment is very important
Chapter 3 textbook notes
● Scheduling projects can be a difficult thing for managers to do
● Ensuring a project is planned and organized is extremely important as well. With this,
making sure programs are running smoothly, is also vital
● The project organization may be most helpful when:
○ Work tasks can be defined with a specific goal and deadline
○ The job is unique or somewhat unfamiliar to the organization
○ The work is complex, and completing interrelated tasks requires specialized
skills
● The work breakdown structure of a project is usually: project, major tasks in the
project, subtasks in the major tasks, activities to be completed
● Project scheduling involves allocating time and resources to individual projects
