- A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective -Operations management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services. -In the transformation process of a hospital, a patient is considered a primary input. A primary transformation function of the same system is holistic framework process of health care delivery. Healthy individuals are the major outputs. -The following are general category for categorizing transformation processes: Exchange, as in retailing; Physical, as in manufacturing; Location, as in transportation; Physiological, as in health care; Informational, as in telecommunications -Field support is a value added service and Price is a core service attribute -Supply chain management is a total systems approach to managing the flow of information, materials and services from raw material suppliers to the end customer -Business Process Reengineering (BPR) - analysis and design of workflows and processes within an organization-The six categories of transformation processes are: Physical; Location; Exchange; Storage; Physiological; Informational -An order winner is a set of criteria that differentiates the products or services of one firm from another. --An order qualifier is a set of screening criteria that permits a firm’s products to be considered as possible candidates for purchase -Activity-system maps show how a company’s strategy is delivered through a set of tailored activities. Activity-system maps are useful in understanding how well a system of activities fits the overall company’s strategy. -An operations strategy involves decisions that relate to the design of a process and the infrastructure needed to support the process. -company’s competitive position: price; speed; Delivery reliability; Coping with changes in demand -Straddling is a process when a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services. -Process-based capabilities are: Capabilities of a service organization that are derived from activities that transform material or information and tend to provide low cost and high quality advantages are classified -Project Management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project -A GANT Chart shows in a graphic manner the amount of time involved and the sequence in which activities can be performed. It is an example of a project control chart.

Golden City manufactures steel storage sheds for commercial use. Ruth, president of Golden City, is contemplating producing sheds for home use. The activities necessary to build an experimental model and related data are given in the accompanying table.

a) Draw the network diagram.b) Find the project completion time and the normal cost c) Crash the project to the minimum completion time with the least cost d) What is the total cost of the project after crashing?

b. Find the project completion time and the normal cost Path Duration Time ADG 3 + 7 + 4 = 14 Critical Path. BEG 4 + 5 + 4 = 13 BEF 4 + 5 + 4 = 13 CF 3 + 4 = 7 The project completion time is 14 weeks.The normal cost = 1600 + 2700 + 200 + 5300 + 11000 + 4000 + 20 = $24,820

A new minor league baseball team is coming to town and the owners have decided to build a new stadium, either small or large. The success of the team with regard to ticket sales will be either high or low with probabilities of 0.75 and 0.25, respectively. If demand for tickets is high, the large stadium would provide a payoff of approximately $20 million. If ticket sales are low, the loss on the large stadium would be $5 million. If a small stadium is constructed, and ticket sales are low, the payoff is $500,000 after deducting the cost of construction. If ticket sales are high, the team can choose to build an upper deck, or to maintain the existing facility. Expanding the stadium in this scenario has a payoff of $10 million, whereas maintaining the same number of seats has a payoff of only $3 million. a) Draw a decision tree for this problem. b) What should management do to achieve the highest expected payoff ? select large based on expected valueSmall Stadium: 0.25($500,000) + 0.75($10,000,000) = $7,625,000 Large Stadium: 0.25 (-$5,000,000) + 0.75($20,000,000) = $13,750,000

Capacity planning – comparing 2 machines example.

(1 - .decimal)M = number of machines required,D = number of units forecast per yearp = processing time (in hours per unit)N = total number of hours per year (daysXweeks)C = desired capacity cushionQ = number of units in each batchs = setup time

Naïve approach = assume data is the same as most recent periodMoving average method =

MAn

n Demand in Previous Periods

Weighted moving average = (biggestWeightx)(most recent year) X …

Exponential soothing model = Ft+1 = Ft + ∞(Dt - Ft)Ft+1 = forecasted number for the upcoming timeFt = forecasted value for current time periodDt = actual occurrence in current time period

∞ = soothing constantForecast error = actual demand (At) – forecast value (Ft)MAD = ∑l actual – forecast l / n(each period take A-F = absolute deviation and ADD/#periods)MSE = ∑ (forecasting errors)2 / nMAPE = ∑ l actual – forecast l / actual /n

Linear Programing – 1)decision variables2 )objective function3)writing constraints4)writing non neg. restrictions

-Pure Project is a structure for organizing a project where a self contained team works full time on the project. -A Functional project is a structure where team members are assigned from the functional units of the organ. -A Matrix Project is a structure that blends the pure and functional project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use. -Upper level management must decide between pure, functional, and matrix structures as ways to organize projects. One of the advantages of a functional project organizational structure is that a team member can work on several projects. A matrix project attempts to blend properties of functional and pure project structures