Course notes Operations management

A lot of things we do, activities such as analyzing, does not add value. Inventory Is a big non-value added activity, If you have two Items (toasters) where one has been there for long and the other Is fairly new. As a customer you want the new one. As a manager for the store, the old one costs more because you have to store it. Exercise: What is the input, what is the transformation and finally the output? Accountants: the transformation Is they are doing audits, financial statements etc.The Input Is raw data and the output is audited financial statements. Telecommunication companies: the transformation Is transmission of data, the Input is data and the output is data as well. System example: Restaurant Objectives: make money essentially, fast food or exclusive? Elements: tables, servers, waiters, wine experts, chefs etc. Input: customers Transformation: you feed the customers In an environment they find agreeable. Output: satisfied customers Feedback: Are we making money? They also use Customer satisfaction services.Restaurant Political, Legal: permits, alcohol permits, hourly wages, is tips Included? Economical: Price of food, price of dollar. Social: what type of food people eat. Technological: systems to communicate with the kitchen, ordering or reservations through internet. Ecological: recycling. Example: Strategic, tactical and operational decisions. Strategic: what type of cuisine? The limit, how many tables for which demand? Tactical decision: what type of employees should I recruit? Operational decisions: