Hello everyone!!!

Note Takers: Catherine and Thomas

Three HWs - No Deadline YET because he wants to know how everyone operates

1.     Easy HW: Find median, mode, standard deviation, etc.

• Question: Do you know why rabbit runs faster than dogs? Dog Runs for someone and rabbit runs for itself. --> Run for yourself, you do better.

Why is OM important?

• Fischer technology that must double it's contribution to fix profit to be profitable enough -- update their equipment
• Management has failed - loan can't be purchased
• In order to survive --> Double it's contribution
• Firm can't purchase equipment? Won't survive
  • Limitation of all will force Fischer
• Who is Fischer? Name of the company
• Fredrick Taylor is the guy who contributed to Operation Management --> Lisa and Nicole
• Limitation of all equipment - Put employer out of work and discontinue producing goods and service for his customers.
• 1 Example of goods and Service
  • Good - Papaya

Fischer How they did

Sales $100,000 - sold (current situation)

Cost of goods - $80,000

• +1 Steve & Scott - positive

gross margin $20,000 --> Robert, Ijaz  +1

finance cost -$6,000

Subtotal $14,000 --> Mehmet

Taxes 25%    -$3500

Total  $10,500

Story of Fischer

Marketing guy, don't worry Mr. Fisher increase profit by increasing production --> Nicole +1

Sell 50% more.

Mr. Fischer was putting pressure after being stressed.

He smiles.

$120,000

Gross margin $30,000 - 1 pt Lisa

Finance cost $6,000

1+ Lance - It depends on situation - Steve gets +1

Taxes $6,000

Contribution $18,000 --> Thomas +1

Where are we going to cut the cost?

+1 Julee

Finance cost -- go for lowering rate -- 50%

Now 3,000

Subtotal 17,000 -->

Taxes $42.50

Net contribution $12750 --> John + 3

Finance accounting option is $12750 contribution. Guy likes it.

Who comes next? Operation Manager - Mehmet +1

Where does the operation Manager reduce? The cost of goods - Nicole +2, Steve +1

Guy doesn't have to carry banana because he automated/did something

Cost of good 80% - Saeed see at end of class

Cost will now be ___ - Lisa +2

Subtotal $30,000

Tax 7500 - Lance +1

Tamara see after class

So far 2200

3 options

• Marketing option - increasing contribution
• Finance Accounting option
• OM Option (22,500)

Contribution for Finance - 21% increase

Contribution for Marketing - 71%

Employee thinks of the customer --> be part to sell

    Ex: Car sold - Grand M - How can car be sold?

    People build the skill by learning others, educate themselves & apply it.

Tutorial - Find for Excel

We compared three options of marketing throughout the whole night. And we worked on Excel

Formula Example: = c5 - c6

Simplified version of Spreadsheet