1/Operations management (OM) is:

• The design, operation, and improvement of the systems that create and deliver the firm’s
primary products and services

• These systems are called Production Systems

2/Order Qualifiers I MUST have them in order to compete

Order Winners IF I have them, I will probably win the competition

3/Job shop or “Jumbled Flow” Copy center, Machining shop, Car repair facility

Batch shop or “Batch Process” Similar to Job Shop BUT making a batch of the same product before
switching to some other product Cooking, Dyes and pigments, Shampoo

Assembly Line Automobiles, Electronics

Continuous Flow Oil refinery

4/ A production system transforms resources into outputs, adding value along the way.

In general, the main resource processed by the system is called input, and the final product is called
output

5/ Total productivity

Output / Total resources

Partial measures of productivity Output or Output or Output or Output

Labor Capital Materials Energy

Multifactor productivityOutput or Output

Labor + Capital Materials + Energy

The Naïve approach f= a(t-1)

i=t−1
i=t−1
Moving Averages Weighted Moving Average ∑ wi F i
∑ Fi
Ft = i=t−n
Ft = i=t−n i=t−1
n ∑ wi
i=t−n
Considers the new forecast is a combination of part of the last actual demand and the last forecast

Ft =αA( t−1)+(1−α ) F( t−1) T t =β( F t −F t−1 )+(1−β)T t−1

Factor Rating: Assign values to possible locations for the new facility in terms of several important factors, add up those values
for each location and pick the location with highest score. Takes distance as only one of several important factorsThe “Centre of
Gravity” or “Centroid” method: Locates the new facility at the center of gravity of the combined weights of the existing.
facilities. Assumes the minimization of the sum of squared distances between the new and other facilities. Normally uses
Euclidean (straight-line) distances