Faculty
Objectives
Operations Management is the systematic direction and control of the processes that transform inputs into finished goods or services. Operations is one of the primary functions of a firm. While marketing induces the demand for products and finance provides the capital, operations produces and delivers the product (goods and services).
This course provides an introduction to the concepts and analytic methods that are useful in understanding the management of a firm's operations. Our aim is to (1) familiarize you with the problems and issues confronting operations managers, and (2) provide you with language, concepts, insights and tools to deal with these issues in order to gain competitive advantage through operations. Because the course deals with the management of "processes," it applies to both for-profit and non-profit organizations, to both service and manufacturing organizations, and to virtually any functional area or industry.
Requirements
Time and Place
Refer to the first year Spring Term 2009 schedule for time, date and location of classes.
Preparation, Participation, and Attendance
Everyone is expected to attend and to prepare fully for each day. Failure to attend class can adversely affect your grade. If you must plan on missing a class, let your instructor know in advance in writing. If you miss class, you must hand in a one-page memo on the key lessons of the day. This allows your instructor to verify that you have captured the important issues from that session. The memo is due one week after the class you missed.
At the beginning of the term, find someone who will pick up materials for you in case you do miss class.
If you are unprepared for class, let the instructor know before class begins.
Use of a laptop computer for anything unrelated to the course during class time will adversely affect the "class contribution" portion of your final grade.
Assignments
Assignments involving case studies, readings, and problems are described in the next section - Daily Plan and Preparation Guidelines.
For written assignments, state your assumptions clearly. If you need to make an assumption regarding something central to the problem at hand, justify it. For numerical problems, show your work. Your "answer" alone is not sufficient; your supporting argument should be concise and convincing.
All assignments, except the Littlefield Technologies Simulation, should be done in groups of no more than two. Littlefield should be done by groups of four people. Turn in only one write-up for each assignment. Written assignments should be turned in to your instructor at the beginning of class on assigned due dates. Late homework will not be accepted.
For some classes spreadsheet modeling and analysis may be a significant part of your assignments. Your group should be ready to illustrate the design of your spreadsheet, defend your assumptions and explain the findings.
Please check your email regularly. We will use this medium to communicate important late-breaking course news.
Materials
There is no required textbook. All the required readings are in the course pack or will be handed out in class. Reading assignments are noted in this syllabus by class session. Some optional readings and texts are on reserve in Feldberg.
Supplemental Optional Readings are primarily taken from the following books that are on reserve in Feldberg.
KR = Krajewski, L., & Ritzman, L. (2004). Operations Management: Processes and Value Chains. (Seventh ed.). New York: Addison-Wesley.
Schmenner, R. W. (1998). Plant and Service Tours in Operations Management. (Fifth ed.). Upper Saddle River, New Jersey: Prentice-Hall.
SPP = Silver, E. A., Pyke, D. F., & Peterson, R. (1998). Inventory Management and Production Planning and Scheduling. (3 ed.). New York: John Wiley & Sons.
HS = Hopp, W. J., & Spearman, M. L. (1995). Factory Physics: Foundations of Manufacturing Management. Burridge, IL: Irwin Professional Publishing.
Honor Code
Only those who contribute approximately equally to the preparation of a group homework assignment may take full credit for it. This does not mean that everyone's ideas must be included. It means that everyone should contribute about equally to the overall process.
In preparing for class or exams you may not use notes from any previous offering of this, or a similar, course or discuss the material with students who have already taken the course. This restriction extends to case-related information obtained from other sources.
If you wish to use them during the exams, keep a copy of all group assignments. Sharing of such material during the exams is not permitted.
Grading
Class Contribution 15%
Written Assignments 15%
Littlefield Simulation 10%
Mid-term Examination 30%
Final Examination 30%
We will judge class contribution on the extent to which you appear prepared, the relevance and depth of your comments, and the degree to which you listen carefully and respond to your peers.
Exams are open-book and open-note, and may require the use of spreadsheets and associated tools.
Schedule
CLASS 1 March 24
INTRODUCTION AND OPERATIONS STRATEGY
Preparation
Prepare the case Food Fight: The Day McDonald’s Blinked for discussion.
1. What are the major operational differences between McDonald's and Burger King? Focus on the traditional McDonald’s approach, rather than on the Made for You system.
2. How do these differences relate to each company's method of competing in the marketplace?
3. What implications do these differences have for the management of the operations and for the future of these organizations?
After Class
Read the notes titled A Framework for Operations Strategy and Process Mapping.
CLASS 2 March 25
PROCESS FLOW ANALYSIS
Preparation
Prepare the Kristen’s Cookie Company (A) case for discussion.
1. Draw a process flow diagram for Kristen’s Cookies. Do this at an “intermediate level of detail” as in Figure 4 of the Process Mapping note.
2. How quickly can you fill a rush order?
3. How many orders can you fill in a night, assuming you are open four hours each night?
4. How much of your own and your roommate’s valuable time will it take to fill each order?
5. Because your baking trays can hold exactly one dozen cookies, you will produce and sell cookies by the dozen. Should you give any discount for people who order two-dozen cookies, three-dozen cookies, or more?
6. Are there any changes you can make in your production plans that will allow you to make better cookies or more cookies in less time or at lower cost?
Turn in Before Class
Your answer to Questions 1 – 3.
After Class
Read Kristen’s Cookie Company (A2).
CLASS 3 March 30
UNDERSTANDING DIFFERENT PRODUCTION PROCESSES
Preparation
Prepare Wriston Manufacturing Company for a case discussion. Richard Sullivan is considering three options for the Detroit plant:
1. Close the plant as soon as possible and transfer its products to other plants.
2. Invest in plant tooling in an attempt to develop a viable operation for the next 5-10 years.
3. Build a new plant.
Based on your analysis of the case, choose one of these three options and be prepared to defend it. We do not expect in-depth numerical analysis of the accounting data in the exhibits.
CLASS 4 March 31
FACTORY PHYSICS
Preparation
There is no preparation for this class. We will discuss a number of fundamental concepts governing manufacturing operations.
Turn In Before Class
Turn in Concept Check #1.
After Class
Read the note titled Factory Physics.
CLASS 5 April 6
QUALITY MANAGEMENT
Preparation
Prepare Steinway & Sons for case discussion.
1. Consider the data in Exhibit 7 (it is also provided as an Excel file in the course folder). Is the new process an improvement? Is the machine capable of producing high quality parts?
2. What accounts for Steinway's reputation as a manufacturer of high-quality pianos? What tactical differences do you see between Steinway and Yamaha in their pursuit of high quality? Evaluate each.
3. How does Steinway's strategy compare with that of its major competitors?
4. Is the adoption of automated technology, like the new CNC shaping equipment, consistent with Steinway’s quality strategy?
After Class
Read Hall, J. M. and Johnson, M. E. (2009). When Should a Process Be Art, Not Science? Harvard Business Review (March).
CLASS 6 April 7
SERVICE PHYSICS
Preparation
In this class we will discuss tools, techniques and insights that apply to services. There is no preparation required.
Turn in Before Class
Turn in Concept Check #2.
After Class
Read the note titled Queueing
CLASS 7 April 13
TOYOTA PRODUCTION SYSTEM
Preparation
Prepare Toyota Manufacturing for case discussion.
1. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts?
2. What is the cause of the seat problem?
3. Where, if at all, does the current routine for handling defective seats deviate from the principles of the Toyota Production System?
4. What is the real problem facing Doug Friesen?
CLASS 8 April 14
PLANNING AND CONTROL
There is nothing to prepare for this session.
Turn In Before Class
Turn in Concept Check #3.
After Class
Read the note titled An Introduction to MRP.
CLASS 9 April 20
MASTER SCHEDULING SIMULATION
Preparation
Prepare B’s Wax Candle Co. Instructions are in the case.
Turn In Before Class
Turn in Concept Check #4.
CLASS 10 April 21
MANUFACTURING TURNAROUND AND MIDTERM REVIEW
Prepare for discussion K.T. Industries: Leveraging Operations in an LBO.
This case describes a real situation in which an entrepreneur is considering investing a significant amount of his own money in several manufacturing companies. Many of you will have similar opportunities in the future. For the discussion apply the tools and concepts from the course to Andrews’ situation. What changes in the production process, inventory control, or operations strategy would you implement if you were to buy these operations?
April 21, 4:30-6:00
Optional Mid Term Exam Q&A Session
April 23
MIDTERM EXAMINATION: Take Home
Exam
Handed out on Thursday, April 23 at noon;
Due Friday, April 24 at 5:00
CLASS 11 April 27
EXPERIENTIAL SUPPLY CHAIN EXERCISE
There is no preparation for this class. You should come to class and sit in a group of four.
CLASS 12 April 28
SUPPLY CHAIN COLLABORATION
Preparation
There is nothing to prepare for this class.
After Class
Read Lee, H., Padmanabhan, P., & Whang, S. (1997). The Bullwhip Effect in Supply Chains. Sloan Management Review, 38(3), 93-102.
CLASS 13 May 4
GUEST SPEAKER
Our guest speaker today will be HJ Markley, President, Agriculture Division, John Deere. Preparation for this class session will likely be a case reading that will be handed out several days prior to class.
CLASS 14 May 5
INVENTORY MANAGEMENT
There is no preparation for this class.
Turn in Before Class
Turn in Concept Check #5.
After Class
Read the note titled Inventory Management.
May 5 5:00 PM
LITTLEFIELD SIMULATION BEGINS
CLASS 15 May 11
SUPPLY CHAINS FOR SHORT LIFE CYCLE PRODUCTS
Preparation
Prepare Sport Obermeyer for case discussion.
Questions
1. Production planning decision: using the data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. Assume that all ten styles in the sample problem are made in Hong Kong. Assume, for simplicity, that all styles have the same wholesale selling price, say $100. For this analysis, forget that there will be another opportunity to produce.
a. First, assume that there are no constraints on the total production commitment or on any individual style. How many units should Wally order during the initial production phase?
b. Now assume that Obermeyer’s initial production commitment cannot exceed 10,000 units. How many units should Wally order during the initial production phase
c. Now in addition assume that the minimum order quantity for any style is 600. How many units should Wally order during the initial production phase?
2. How should Wally plan the initial phase of production if a second production run is feasible later?
3. What operational changes would you recommend to Wally to improve performance?
After Class
Read Fisher, M. L. (1997). What is the Right Supply Chain for Your Product? Harvard Business Review (Mar/Apr).
May 11 5:00 PM
LITTLEFIELD SIMULATION ENDS
CLASS 16 May 12
LITTLEFIELD SIMULATION DEBRIEF
In this class we will discuss key learnings from the Littlefield simulation. Note that Littlefield write-ups are due on May 18.
Turn in Before Class
Turn in Concept Check #6.
CLASS 17 May 18
PROJECT MANAGEMENT
Preparation
Read the note titled Project Management.
Turn in Before Class
Turn in Littlefield Simulation Write-Up. Details on the write-up are provided in the handout on the Littlefield simulation.
CLASS 18 May 19
BUILDING A SERVICE STRATEGY
M. Eric Johnson, Joseph M. Hall, "Enhancing Service at Southwest".
Prepare the following questions:
How does Southwest’s operations support its strategy?
Discuss how competitors with a hub-and-spoke system could benefit/not benefit from copying Southwest’s approach. Which is cheaper to run, a hub-and-spoke system or a point-to-point system?
What are the benefits of quick airplane turnaround? What is the financial impact?
Jump on the Southwest web site (www.iflyswa.com). How is the site organization and ticket buying process consistent with the operations strategy?
Consider the questions facing Kelly (WiFi, premium beverages, international partners). Are these service enhancements consistent with Southwest operations strategy?
After class: Tim Laseter, M. Eric Johnson, "Reframing Your Business Equation", strategy+business, issue 55, Summer 2009.
May 20, 4:30-6:00
Optional Final Exam Q&A Session
Optional Final Exam Q&A Session - 4:30-6:00 - Cook Auditorium
May 20 at Noon
Concept Check #7 Due
Concept Check #7 Due
May 20 at Noon, drop off in boxes outside of Chase 210.
May 21 Noon
FINAL EXAMINATION: Take Home
Exam
Handed out on Thursday, May 21 at noon;
Due Friday, May 22 at noon
