UGBA 10

1. Spring 2023 - UGBA 10
Principles of Business
Module 4 - Week 1
Operations & Sustainability

2. Today’s Agenda
General updates 5 Mins
Operations Management 15 Mins
• Role of Operations
• Types of Processes
Case Study: Denim Industry 25 Mins
Quiz 5 Mins

3. 3
Feedback overview and next steps
• Varying appetites for pace of section
• Continuing with the same pace with
option to go back to previous slides
• Some concerns about grades
• Desire for more classmate/group
engagement
Some emerging themes Proposed solution/action item
Section norms to continue
• Providing examples of content applications in real world scenarios
• Summarizing key content and topics of section
• Responding to email in a timely manner
What
to
keep
Key
considerations
• Additional/ ad hoc office hours
• Work with professor to have designated
group/pair discussion exercise per
section

4. Tips for the Operations &
Sustainability module!
• Start preparing earlier: a lot of material to cover, do
the readings in advance
• Review the Summary Notes after each lecture
(posted 24-48h after lecture)
• Review the Study Guide: will be posted at the end of
Week 2
• Review past exam questions

5. Today’s Agenda
General updates 5 Mins
Operations Management 15 Mins
• Role of Operations
• Types of Processes
Case Study: Denim Industry 25 Mins
Quiz 5 Mins

6. Introduction to Operations
6
What is Operations Management (OM)?
OM is in charge of supplying products
and services in the right amount, at the
right place, at the right time and at the
right quality

7. Operations makes decisions about processes and supply
chain, which need to be in line with corporate strategy
Operations
Strategy
Supply Chain
Management
● Inventory
Placement
● Mass
Customization
● Outsourcing
● …
Corporate Strategy
Finance
Strategy
Marketing
Strategy
…
Process
Strategy
1. Process Structure
2. Customer
Involvement
3. Resource
Flexibility
4. Capital Intensity

8. In Operations, we think of
business as a series of
processes.
Operations is in charge of
designing and executing
processes that transform
inputs into outputs for internal
and external customers, to
fulfill the organization's strategy
Operations transforms inputs into outputs for customers
8

9. What does this look like for Tesla?
● What are its sales revenue?
● What are its material & service
inputs?
● What are its product &
service outputs?
9
Finance
To fulfill the organization’s strategy, Operations has to work
with other business functions like Finance and Marketing

10. 10
Two types of processes: Supply Chain/Value Chain View
Core Processes

11. Manufacturing vs Service

12. • Quality easily
measured
• Output can be
inventoried
• Physical,
durable output
Differences between Manufacturing vs Service
Remember: A process transforms Inputs into Outputs. Outputs are products or services. There
are some differences between products and services.
How are they different?
• Low customer
contact
• Long response
time
• Capital intensive
• Intangible,
perishable output
• Output cannot
be inventoried
• High customer
contact
• Short response
time
• Labor intensive
• Quality not easily
measured

17. Today’s Agenda
General updates 5 Mins
Operations Management 15 Mins
• Role of Operations
• Types of Processes
Case Study: Denim Industry 25 Mins
Quiz 5 Mins

18. What are the:
– main processes?
– main inputs going into those processes?
– main outputs coming out of those processes?
– customers of each process?
– suppliers of each process?
What are some social and environmental
challenges in the supply chain process?
While you watch the video, try to answer these questions

19. Case Study: Denim Industry

20. Discuss in groups
What are the:
– main processes?
– main inputs going into those processes?
– main outputs coming out of those processes?
– customers of each process?
– suppliers of each process?

21. 21
Source: http://sarahjanemaki.com/portfolio/jeans-infographic/
Inputs
Outputs
Process
Customers
Suppliers

22. Jeanologia

23. Discuss in groups of 4:
Social and environmental challenges
Social challenges Environmental challenges

24. Huge challenge: not having supply chain visibility across all suppliers!
How can we know they are doing the right thing?
Social challenges
● Human Rights violations
○ Fair wages
○ Employee health & safety (eg. back
problems due to repetitive work)
○ Child labor
○ …
● Unintended consequences of automation:
job losses / insecurity
Social and environmental challenges
Environmental challenges
● Waste in landfills
● Water scarcity / contamination
● GHG emissions / energy consumption
● …
→ Circular business models
- Rent vs. buy (Rent the Runway)
- Recycling programs (Nike)
- …

25. Today’s Agenda
General updates 5 Mins
Operations Management 15 Mins
• Role of Operations
• Types of Processes
Case Study: Denim Industry 25 Mins
Quiz 5 Mins

27. • Go to Quizzes section in bCourses
• Select Assignment Quizz M4W1
• Time: 6min
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