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Introduction to Operations
Management
Dr. Stuart X. Zhu
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Outline
Course introduction
Why study OM
Definition of operations management (OM)
OM in business organization
A supply chain view of OM
Readings: Chapter 1
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Course Introduction
Course objective
A broad, but not comprehensive introduction to
the problems, ideas, methodologies, and
applications of OM
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Course Syllabus
Instructors and TA
Textbook and reference
Assessment
Topics
Course homepage
http://teaching.ust.hk/~ismt162
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Instructors and TA
Instructors: Dr. Weixin Shang and Dr. Stuart X.
Zhu
Phone: 2358-7744
Office: Room 4369 (lift 13-15).
E-mail: shangwx@ust.hk, zhuxiang@ust.hk
Office hours: Tuesday, Thursday, 2pm-5pm or by
appointment
Teaching assistant: Mr. Peter Wong
Phone: 2358-8746
Office: Room 4351 (lift 13-15)
E-mail: impeter@ust.hk
Office hours: 2pm-5pm, Wed, or by appointment
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Textbook and Reference
Textbook
Stevenson : Operations Management , 9th edition,
McGraw-Hill.
References
Nahmias: Production and operation analysis,
McGraw-Hill.
Chase, J acobs, Aquilano: Operations
Management for Competitive Advantage,
McGraw-Hill
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Teaching
Mainly lecture with PowerPoint
Lecture notes can be downloaded from course
website before class
Real world examples from a variety of industries
will be used
Interactive
Early feedback
Your options court!
It is important we get your feedback as early as
possible
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Classroom Operations
Attendance important
Be on time
Come to class prepared to participate
Ask questions
Answer questions
Bring your examples or insights
Make your mistakes in class, not when your
decisions could cost you in exams or real life
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Learning
Text
Theories
Cases
Problems
Discussion
With the instructors, TA
With your classmates, friends, family
Relate what we learn in class to what you see,
hear or experience in real life
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Grading
2 quizzes (q1, q2): 40 percents
Every student is required to attend all the quizzes
In class, close book with a cheat sheet
50 minutes
Final Exam (f): 60 percents
Final grade = max {
0.2 q1 + 0.2 q2 + 0.6 f,
0.2 q1 + 0.8 f,
0.2 q2 + 0.8 f }
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Why Study Operations Management?
Business Education
Systematic Approach
to Org. Processes
Career Opportunities
Cross-Functional
Applications
Operations
Management
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Definition of OM
Operations Management (OM):
The design, operation, and improvement of the
systems that create and deliver the firms primary
products and services.
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Comparison
OM: a field of management
Operations Research (OR): the application of
quantitative methods to decision making in all
fields
Industrial Engineering (IE): an engineering
discipline
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Operations
Finance
Marketing
Business Organization
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Value
Value
-
-
Added Process
Added Process
Inputs
Land
Labor
Capital
Transformation/
Conversion
process
Outputs
Goods
Services
Control
Feedback
Feedback Feedback
Value added
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Different Types of Transformation
Manufacturing Physical
Transportation Location
Retailing Exchange
Warehousing Storage
Health care Physiological
Telecommunication - Information
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Examples
Identify inputs, outputs, resources and
transformation functions in the following
systems
Automobile factory
Restaurant
Hospital
HKUST
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long
term
med
-ium
term
short
term
Demand
fulfillment
Purchasing
MRP (14)
J IT (15)
Aggregate planning (13)
Capacity planning (5)
Demand
forecasting (3)
Inventory (12)
management
Scheduling
(16)
Management
Of waiting
lines
(18)
Fulfillment
implementation
Distribution network design
Product
development
Distribution
Process
Selection
and facility
layout (6)
Manufacturing
Supply net-
work design
Partner
selection
Project
Management
(17)
Derivative
product
development
Adaptions
Current
product
support
Materials
ordering
Supply
contract design
Quality Control (9, 10)
A Supply Chain View of OM