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# Week 1: Process Management & Flow/Delivery ## Introduction **Operations Management** This week's main topic is process management, focusing on how businesses manage production processes. The material draws from the book by Cachon & Terwiesch and the course syllabus. **Matching Supply and Dema...

# Week 1: Process Management & Flow/Delivery ## Introduction **Operations Management** This week's main topic is process management, focusing on how businesses manage production processes. The material draws from the book by Cachon & Terwiesch and the course syllabus. **Matching Supply and Demand** A key concept is matching supply and demand. Effective matching is crucial for competitive advantage. However, matching is challenging due to fluctuating demand and often inflexible supply mechanisms (personnel, materials, equipment). Moving resources to meet fluctuating demand can be costly and time-consuming. **Operational Management** Operational management aims to efficiently align supply and demand. ## Quantitative and Qualitative Instruments **Operational Management Instruments** Operational management uses various instruments broadly categorized into **quantitative models** (mathematical procedures based on input/output data) and **qualitative strategies** (suggestions/insights based on analysis). Instructional objectives include understanding how and when to apply these instruments. **Applications of Instruments** These instruments can be used to: * **Optimize Resource Allocation:** Ensure resources are used most effectively. * **Balance Competing Goals:** Find good balances between conflicting goals (e.g., quality and flexibility). * **Improve Operations:** Improve operational efficiency through redesign and restructuring. Quantitative and qualitative instruments are seen as complementary. **Performance Graphs** Graphs illustrate the performance of different businesses. The frontier represents potential optimal mixtures of cost and flexibility. Companies aim to operate along this frontier for efficient management of resources and trade-offs. A shift in the frontier suggests improvement by innovations. The examples provided highlight how different strategies can lead to different levels of cost, quality and flexibility.