BU395 Study Guide - Fall 2018, Comprehensive Midterm Notes - Time, Free State Bottleneck, Supply Chain
BU395
MIDTERM EXAM
STUDY GUIDE
Fall 2018
BU225- WEEK 1, LECTURE 1
What is Operations Management? (OM)- management (design, operation, and
improvement) of the transformation that creates value
• Example: Aircraft turnaround at airports
o Disembark → Unload luggage → Load data → Clean aircraft →
o Unload luggage and freight
o Load data
o Clean aircraft
o Typically, the turnaround time is ~45 minutes
• Passengers boarding an airplane
o In the mid-60s, 20 passengers/plane could be boarded
▪ Today, that number is about 9
o Better way of boarding?
▪ Air Canada → Back to front
▪ United Airline → Windows first
▪ America West → Reverse pyramid
▪ WestJet → Rado…Zoes?
• Transforming inputs into outputs
o Inputs → Buy/Make
▪ Capital
▪ Materials
▪ Equipment
▪ Facilities
▪ Labour
▪ Knowledge
▪ Time
o Transformation
▪ Buy
▪ Make/create
▪ Sell
▪ Move
o Outputs → Sell
▪ Products
▪ Services
find more resources at oneclass.com
find more resources at oneclass.com
• Functions within the organization
o Marketing provides demand to operations, who then provides funding needs
to Finance
o Finance then provides actual funding to operations, who then provides
finished products to Marketing
Service system
Intangible, perishable output
Output cannot be inventoried
Short response time
High customer contact
Small facilities
Labour intensive
Quality is not easily measured
Local markets
Manufacturing System
Physical, durable output
Output can be inventoried
Low customer contact
Long response time
Large facilities
Capital intensive
Quality easily measured
Regional, national, or international
markets
• Transformation Processes examples
• Transformation Processes:
o Buying → Procurement, Financing, Hiring
o Making → Design, Manufacturing, Production, Service
o Selling → Distribution, Marketing, Revenue Management
o Moving → Logistics, Transportation, Warehousing
o All of the above → Supply Chain Management
• What defines a good process?
o Strategic View: Business Strategy → Desired Capabilities → Process
o What were we trying to do? And have we actually accomplished it?
o A lot of it has to be tweaked
find more resources at oneclass.com
find more resources at oneclass.com
