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Introduction Prof. Christian Terwiesch Operations in a Restaurant - PowerPoint PPT Presentation

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Introduction Prof. Christian Terwiesch Operations in a Restaurant Prof. Christian Terwiesch Operations in an Emergency Room Prof. Christian Terwiesch Operations from the Perspective of the Customer Prof. Christian Terwiesch Four Dimensions

  1. Introduction Prof. Christian Terwiesch

  2. Operations in a Restaurant Prof. Christian Terwiesch

  3. Operations in an Emergency Room Prof. Christian Terwiesch

  4. Operations from the Perspective of the Customer Prof. Christian Terwiesch

  5. Four Dimensions of Performance Quality Cost ▪ Product quality (how good?) ▪ Efficiency ▪ Process quality (as good ▪ Process quality (as good as promised?) Time Variety ▪ Responsiveness to ▪ Customer heterogeneity demand Important for - Performance measurement - Defining a business strategy Prof. Christian Terwiesch

  6. Four Dimensions of Performance: Measurements for a Sandwich Store Quality Cost ▪ Product quality (how good?) ▪ Efficiency ▪ Process quality (as good as promised?) p ) Variety Time ▪ Customer heterogeneity ▪ Customer heterogeneity ▪ Responsiveness to demand ▪ Responsiveness to demand Prof. Christian Terwiesch

  7. Introduction Efficient Frontier Prof. Christian Terwiesch

  8. Four Dimensions of Performance: Trade-offs Quality Cost ▪ Product quality (how good?) ▪ Efficiency => Price ▪ Measured by: ▪ Process quality (as good ▪ Process quality (as good - cost per unit as promised?) - utilization => Defect rate Time Variety ▪ Responsiveness to ▪ Customer heterogeneity p Customer heterogeneity demand ▪ Measured by: ▪ Measured by: - number of options - customer lead time - flexibility / set-ups - flow time - flow time - make-to-order make to order Prof. Christian Terwiesch

  9. What Can Ops Management (This Course) Do to Help? Step 1: Help Making Operational Trade-Offs Responsiveness High Very short waiting times, Comes at the expense of Frequent operator idle time Trade- off Long waiting times, yet operators are almost fully utilized y Low Low labor High labor Labor Productivity productivity productivity (e.g. $/call) Example: Call center of a large retail bank Example: Call center of a large retail bank - objective: 80% of incoming calls wait less than 20 seconds - starting point: 30% of incoming calls wait less than 20 seconds - Problem: staffing levels of call centers / impact on efficiency OM helps: Provides tools to support strategic trade-offs Prof. Christian Terwiesch

  10. What Can Ops Management (This Course) Do to Help? Step 2: Overcome Inefficiencies Responsiveness High Current frontier In the industry Competitor A Eliminate inefficiencies Competitor C Low Competitor B Competitor B Low labor High labor Labor Productivity productivity productivity (e.g. $/call) Example: • Benchmarking shows the pattern above • Don’t just manage the current system… Change it! Provides tools to identify and eliminate inefficiencies => Define Efficient Frontier Types of inefficiencies: -Poor process design - Inconsistencies in activity network Prof. Christian Terwiesch

  11. What Can Ops Management (This Course) Do to Help? Step 3: Evaluate Proposed Redesigns/New Technologies Responsiveness High High Redesign process New frontier Current frontier In the industry Low Low labor High labor Labor Productivity productivity productivity ( (e.g. $/call) $/ ) Example: • What will happen if we develop / purchase technology X? • Better technologies are always (?) nice to have, but will they pay? Better technologies are al a s (?) nice to ha e b t ill the pa ? OM helps: Evaluates system designs before they occur Prof. Christian Terwiesch

  12. Example: The US Airline Industry Prof. Christian Terwiesch

  13. Example: The US Airline Industry Prof. Christian Terwiesch

  14. Introduction Format of the course Prof. Christian Terwiesch

  15. Course Outline / Grading / Homework Objective of the course: Understanding and improving business processes Performance measures How-to Mix of industries: healthcare restaurants automotive computers call centers banking etc Mix of industries: healthcare, restaurants, automotive, computers, call centers, banking, etc Course Outline Introduction (0.5 weeks) 1. Process analysis (1.5 weeks) 2. Productivity 3. Product variety 4. Responsiveness 5. Quality Requirements / Prerequisites : There are no prerequisites for the course Some modules require statistical knowledge (standard deviation, normal distribution) Homework assignments One large assignment after each module (five assignments); 10% each Final exam with questions from all modules; 50% q ; Prof. Christian Terwiesch

  16. Text Book Course book Cachon, Gerard, Christian Terwiesch, Matching Supply with Demand: An Introduction to Operations Management , 3rd edition, Irwin - McGraw Hill, 2012 (ISBN 978-0073525204, 507 pages) Prof. Christian Terwiesch

  17. Personal Introduction MBA core course: Operations Management: Quality and Productivity Taught ~ 60 times ~ 4000 MBA students McKinsey Ops Practice ~ 500 new associates Research: Operations Management, focus on Healthcare Management Innovation tournaments and contests Christian Terwiesch terwiesch@wharton.upenn.edu Andrew M. Heller Professor at the Wharton School Senior Fellow Leonard Davis Institute for Health Economics 573 Jon M. Huntsman Hall Philadelphia, PA 19104.6366 Prof. Christian Terwiesch

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