BA 230 Operations Management Cattani and Gilland, 2004
2004 Syllabus
INSTRUCTORS Kyle Cattani Office: McColl 4705 Phone: 962-3273 Office hours: Tuesdays 4-5 and by appointment Wendell Gilland Office: McColl 4605 Phone: 962-8465 Office hours: Wednesdays 3:30 – 4:30 and by appointment Required Texts: Textbook and novel (both are available from Student stores and in Ram Book and Supply): Operations and Technology Management BA230, Materials coordinated by Kyle Cattani and Wendell Gilland (ISBN: 0-256-59529-1). The Goal: A Process of Ongoing Improvement, Goldratt, E.M., and J. Cox, (1992), 2nd Revision Edition, North River Press, Croton-on-Hudson, NY. (3rd Revision ok as well.) Operations management is defined (by our textbook) as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. This class provides an understanding of the operations management function and its relationship to other functional areas within the firm. In this class, we will develop frameworks to analyze the strengths and weakness of a firm's operations and to develop viable alternatives in pursuing its goals and objectives. We will examine the tradeoffs that managers face in emphasizing one goal (such as high capacity utilization) as compared to another goal (such as minimum throughout time). We will compare and contrast the strengths and weaknesses of different strategies and techniques, as determined by industry and global operating environments. Ultimately, we hope to stimulate your interest in operations management. Whether you end up in finance, marketing, operations, accounting, or any other field, you will have opportunities to consider and systematically improve the way you do things. Operations management provides tools, techniques, and strategies for making organizations work more effectively and efficiently, and can make you a better manager.
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004 COURSE OBJECTIVES 1) 2) Provide an understanding of the operations management function, and its relationship to other functional areas within the firm. Develop a framework whereby the strengths and weaknesses of a firm’s operations can be analyzed, and whereby the firm can develop viable alternatives in pursuing its goals and objectives. Examine the tradeoffs that managers face in emphasizing one goal (such as high capacity utilization) as compared to another goal (such as minimum throughput time). Develop competence with specific tools and techniques used by practicing operations management personnel. Compare and contrast the strengths and weaknesses of different strategies and techniques, as determined by industry and global operating environment. Familiarize the student with the business vocabulary used within the operations management field. Prepare students for summer internships. Stimulate interest in operations management.
3) 4) 5) 6) 7) 8)
The approach we will take in introducing the areas of Operations Management is twofold. First, we will cover some basic theory in the areas. Second, we will look at a variety of domestic and international cases that show applications (good and bad) of the theory. We won’t go into a lot of detail (or depth) in theory, so some of you may want to explore more on your own. We will do some problems to cement your understanding of the theory and there will be homework assignments on some of the theoretical material. The cases will be like those you have had and will have in other MBA courses. There will be a variety of settings and problems to resolve. In some of the cases, there will be a need to implement some changes and we hope we have time to work on implementation plans for those cases.
GRADES The final grades will be determined as follows: Homework 20% Littlefield 10% Participation 20% Final 50%
Course Details –
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004
Session 1: Benihana (Operations in Service Industries)
Although originally written in 1972, the Benihana case remains one of the most popular in the Harvard Business School collection. Benihana provides a striking example of the importance of Operations to the overall success of a business.
Session 2: Operations Strategy – Process Choice
An initial assessment of an operation should include the determination of the appropriateness of the chosen processes for the company's products. In this session we will review various dimensions along which operations are viewed and in particular, we will look at the product / process matrix. We will identify four basic process types: continuous flow, line flow, batch flow, and job shop.
Session 3: Executive Shirt (Mass Customization)
Executive Shirt provides an example of a batch flow production process. Like many other companies, ESC is attempting to take advantage of marketplace demand for greater customization and quicker response. We will begin to explore the implications of these trends on a firm's operations and discuss several options for achieving improved performance.
Session 4: Process Analysis
Any operation can be described as a collection of one or more processes. Therefore, process analysis is one of the core building blocks of operations management. In this session, we will discuss the performance of a single step in a processing system, as well as the interactions between multiple steps that are combined to form a more complicated process.
Session 5: National Cranberry (Process Improvement)
National Cranberry Cooperative (NCC) is a grower-owned agricultural cooperative that processes and markets cranberries. We will use this case as an example of a continuous flow operation and develop our analytic skills necessary to make operations decisions.
Session 6: Strategic Uses of Inventory
We discuss various definitions of inventory and introduce a couple of basic inventory models.
Session 7: Global Financial (Impact of Process Design on Customer Service)
The financial subsidiary of Global Equipment Corporation is struggling to help the parent company successfully compete in the heavy equipment industry. In the case, Nancy Rodriquez, the manager of GFC's Bakersfield office, must decide how to respond to a competitor's promise of a ten-day turnaround time for loan applications, or face the likelihood of losing additional business. We will explore the power of analyzing processes in service industries.
Session 8: Inventory Management Under Uncertainty
In this session we continue the discussion on basic inventory models. We focus our attention
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004 on models used to determine inventory when demand is uncertain, including the newsvendor problem and the Q,R order policy.
Session 9: Charles River Jazz (Simulation for Operations Decision Making)
Simulation, in general, refers to any artificial process that is used to represent a real activity. There are many different types of simulations, including several that are frequently used in operations management. In this class session we will discuss how Monte Carlo simulation can be combined with other forms of operations analysis to help guide operations decisions.
Session 10: Statistical Process Control
In this session we discuss quality, focusing especially on the traditional methods of statistical process control and the determination of process capability.
Session 11: Toyota Motor Manufacturing (Lean Operations)
We use the Toyota case in part as a "plant tour" to illustrate the Toyota Production System (TPS). We also discuss a specific problem at the Georgetown, Kentucky plant. This session serves to link the material on process analysis with the material on process improvement.
Session 12: Six Sigma / Project Management
In many companies, the "six sigma" philosophy has become an important component of not only the quality management area, but also the management of the company, much more broadly defined. We will discuss some of the important components of six sigma. Most six sigma programs involve the completion of a process improvement project, so we will also touch upon some of the key aspects of project management.
Session 13: Littlefield Debrief
In this session we discuss the Littlefield simulation that you have just completed. This exercise has given us the opportunity to handle many facets of operations management, including process analysis, response time management, and inventory management.
Session 14: The Beer Game (Supply Chain Simulation)
We will play the Beer Game, a game introduced years ago at MIT by John Sterman. The Beer Game was not developed with Supply Chain Management in mind but turns out to be an outstanding vehicle to introduce many relevant issues of the topic.
Session 15: Introduction to Supply Chain Management
When playing the Beer Game on Friday, you were participating in a Supply Chain. In today's class session, we will formally introduce the notion of a supply chain. Demand information in a supply chain is often distorted from one part of the chain to the other. Such distortions, known as the bullwhip effect, lead to tremendous inefficiencies of a supply chain: excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, ineffective transportation and production schedules, and so on. Our goal is to understand some of the fundamental causes, and determine what companies can do to mitigate the effect.
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004
Session 16: The Goal (Theory of Constraints)
In this session we will discuss the issues that arise in The Goal as a way of summarizing many of the lessons we have learned about managing a single facility.
Session 17: Barilla (Vendor Managed Inventory)
Barilla SpA provides an example of the bullwhip effect and looks at implementation of a continuous replenishment program which they call Just-in-Time Distribution (JITD).
Session 18: HP Deskjet (Product/Process Design in Supply Chain)
We will use the HP Deskjet case as a vehicle to discuss an "inventory/service crisis" and introduce the important supply chain management concepts of pooling and postponement.
Session 19: Dell (Supply Chain Velocity)
Michael Dell started Dell in 1983 and it grew rapidly and became incredibly successful by any metric. Dell began to sell computers over the Internet in 1996 and once again experienced success almost overnight. Dell, as part of the tech economy, faced softening demand for PCs in the early 2000’s but has recently rebounded. We will explore Dell's strengths in supply chain management and e-commerce and muse about their position in facing a changing PC market.
Session 20: Sport Obermeyer (Accurate Response in Global Markets)
In this session we discuss the Sport Obermeyer Case and analyze the forecasting, planning, and production processes of a global skiwear supply channel. The discussion for this case will necessarily extend beyond traditional forecasting models and introduce some creative approaches to operating under uncertainty.
Final Exam
Homework/Littlefield: Homework assignments will be submitted by groups of two or three students that you will be asked to form during the first couple weeks of class. The final solution turned in must reflect work done by the persons whose names are on the submission. We encourage you to do the work individually and then work with your group members to perfect the work. All assignments are due at the start of class on the date given. 0) Student profile (done individually) (5 points) 1) Process Analysis. (35 points) 2) Inventory (40 points) 3) Littlefield (100 points) 4) Quality (40 points) 5) Book report on The Goal (done individually) (40 points) 6) Supply Chain Optimization (40 points) Total: (300 points, representing 30% of your grade)
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004 Class Participation: Students are expected to come to class having completed the readings and having prepared the case. On many days (especially case days) there will be a required question for each student to answer on the course web page. Typically, we will select three or four answers from students who will be expected to explain or elaborate on their analysis. As a group, we will try to build a complete analysis of the situation and address the problems and issues it presents. We also will talk about the implementation of those recommendations and the complexities of effecting change in firms with a strong operations component. One portion of the class participation score will be based on your answers to the web questions related to the cases. Answers must be submitted at least 2 hours before class to receive credit. You should consider the classroom as an opportunity to develop verbal skills. You should work on your ability to convince your peers of the correctness of your approach to complex problems and of your ability to achieve the desired results through the use of that approach. Some criteria for assessing effective class participation are: Is the participant a good listener? Are points that are made relevant to the discussion and linked to the comments of others? Do the comments show evidence of analysis of the case? Is there a willingness to participate? Is there a willingness to test new ideas, or are all comments “safe?” (for example, repetition of case facts without analysis and conclusions) 6. Do comments clarify and highlight the important aspects of earlier comments and lead to a clearer statement of the concepts being covered? You may be asked to assist in the assessment of the class participation grade for your colleagues. The above criteria should be used as the basis of your assessment. Additionally, your participation score will suffer if you miss class. We recognize that (very occasionally) you will have priorities that may take precedence over this class. You do not need to let us know the details of why you are absent on a particular day. Help Sessions: There will be help sessions every Tuesday from 12:30 – 2:00 in McColl 2250. Final: A final examination will be given Monday, December 13, 2004 from 9:00-12:00. Timeliness: Homework will not be accepted late. Please plan to take the exam at the scheduled time. Makeup tests will not be offered (only extraordinary circumstances will justify an exception, and any non-emergency exception must be pre-approved through the MBA office). Technology: 1. 2. 3. 4. 5.
01/25/05 MBA 230 - Operations (2004)
BA 230 Operations Management Cattani and Gilland, 2004 The use of laptop computers is not permitted during class, except when specifically authorized by the instructors. Many students and visitors find the use of laptops distracting; the best place for taking notes will be on the lecture notes that we distribute at the beginning of each class session. Also, please remember to ensure that your cell phone does not ring during class. Updates: The professors reserve the right to update or modify this syllabus during the course of the semester. The specific readings and study questions for each class session should be obtained from the course web page. Honor Code: All students must abide by the Honor Code. No discussion, sharing of materials, or consultation of any form is allowed between students on the exams. The exams must be turned in promptly at the end of the designated time. This syllabus cannot identify all possible situations which represent honor code violations, and is not meant to be comprehensive in that regard. Students are expected to abide by the intent and letter of the honor code, and are expected to report any honor code violations that are observed.
01/25/05 MBA 230 - Operations (2004)