INTRODUCTION TO OPERATIONS MANAGEMENT
Improving Competitiveness in Organizations
Business Management 630D
Winter 2005, Regional Campuses
Faculty:
Steven Dickstein
Office Phone:
292-4600
Office:
Room 618 Fisher Hall
Email:
[email protected]
Office Hours:
8:30 – 10::00 a.m. Tuesday, Thursday, Friday
Regional
Course
Facilitator:
Educational
Technology:
Texts:
Bill Nelson, 614.688.8468, [email protected]
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Operations Management: Strategy and Analysis, (6th e), Krajewski &
Ritzman, Prentice Hall, 2002.- Custom Text ISBN #
(Referred to as K &R)
NOTE: In 2005 a 7th edition will be available; this course will continue to
use the 6th edition
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Supplementary Course Packet, available at regional campus bookstores
(Referred to as SP)
Course URL:
http://class.osu.edu
Course
Access:
WebCT will ask for a username and password.
For username, enter your OSU e-mail address
(just the portion before the @osu.edu); for example:
smith.123
For password, enter your OSU email password
Activate
Email:
Visit http://www.oit.ohio-state.edu/userpass.html
[click on How to ACTIVATE] or Call 688-HELP
COURSE OBJECTIVES
Over the past fifteen years U.S. firms have learned the painful lesson that neglect of the
operations function can be extremely hazardous to the health of the organization. Foreign firms
have demonstrated that operations can be an effective competitive weapon and, in conjunction
with well-conceived marketing and financial plans, these firms have made major penetrations
into markets worldwide. This course is designed to address the key operations and logistical
issues in service and manufacturing organizations that have strategic as well as tactical
implications. The specific objectives include:
1. To understand the role of operations management in the overall business strategy of
the firm.
2. To understand the interdependence of the operating systems with other key functional
areas of the firm.
3. To identify and evaluate the key factors and the dependence of these factors in the
design of effective operating systems.
4. To identify and evaluate a range of tools appropriate for analysis of operating
activities of the firm.
5. To identify and evaluate comparative approaches to operations management in an
international context.
6. To understand the application of operations management strategies and techniques to
service sector as well as manufacturing firms.
EVALUATION
Your course grade will be determined in the following way:
Mid-term Exam
Team Case Reports (2 at 15% each)
Final Exam
Total
35%
30%
35%
100%
EXAMINATIONS
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The examinations are closed book, closed notes.
Formula sheets (included in the Supplementary Packet) are provided on the exams.
Each exam will be a combination of conceptual questions and problem solving. Application
problems and multiple-choice questions will be similar to those in the homework and will
cover material from the text, lectures, and cases. The material could be based on anything
covered in the text, assigned readings, videos, cases, or problems.
Each student must bring their own calculator and writing instruments. Sharing of materials is
prohibited. No cell phones are permitted to be used as calculators.
NO MAKE-UP, LATE OR EARLY EXAMS WILL BE GIVEN, except in case of
medical emergency. Business related absences are not excused. Students should make
arrangement at the start of the course to avoid time conflicts.
The exams are 100 minutes in length. They are not comprehensive.
The exams are to represent only the work of the individual student. No outside assistance
(discussion with peers, cheat sheets, etc.) is permitted (see Academic Misconduct below).
ACADEMIC MISCONDUCT
Any material submitted for course credit, except the Team Case report, must be your own
work. Students are encouraged to discuss/read/etc. the work/thoughts/ideas regarding the case
analyses with other students within their team. If outside references are used, they must be
properly referenced. Also, with the team case work, it is recommended that you take action to
protect your work, such as collecting your materials from the lab printers and disposing of rough
drafts at home.
Academic misconduct is a serious threat to the integrity and value of your degree.
Procedures:
1. Suspected cases of academic misconduct will be reported to the University
Academic Misconduct Committee.
2. Typical penalties include an E in the course and disciplinary probation for a
first offense and dismissal from the University for a second offense.
COURSE PROCEDURES
1. Case and Video assignment questions for each topical session are also provided on the
web site.
2. Graded Examinations and Team Reports will be retained by the instructors.
3. A topical review sheet for the mid-term and final exams will be available through the
course web page.
4. All team case reports are due as email attachments to TA at or before the beginning of
the recitation session on the date assigned in the course schedule. The graded cases will
be available ONLY for review in each campus coordinator’s office 1 week after they are
submitted. For the Team Case Reports, please put together a 3 or 4 person team at
the first recitation session in week 1. In choosing your team members, it is important
that one member of the team is familiar with the use of Excel spreadsheets.
5. Each team must complete two Cases during the term, choosing one from either Case 1 or
Case 2 and one from either Case 3 or Case 4. Combinations of 1 and 2 or 3 and 4 are not
permitted. There will be no extra credit for extra submissions.
6. If you have questions, please check the Frequently Asked Questions (FAQ) discussion
board on WebCT.
7. If your question is not answered on the FAQ discussion board and the question is a
specific question requiring a short answer, you may email your question to the instructor
or the TA. However, if your question is a general question, for example, dealing with the
clarification of a case assignment or a concept or technique discussed in the reading or a
lecture video, please bring your question to the recitation session. Email does not provide
a practical way of responding to such questions that are general in nature.
8. Each of the Team Cases has the case data provided on an Excel spreadsheet to facilitate
your analysis.
COURSE SCHEDULE
Week/Date
Week 1
January 3
Topics
Competitive Enterprises
Readings
1. Role of Operations Management in a
Business
Lecture 1a: Video Module 1a
Video 1: Au Bon Pain
Lecture 1b: Video Module 1b
K & R Chapter 1
2. The Role of the Operations Manager
Case: Too Short The Day
Hill, Chapter 1, SP
Processes
Week 2
January 10
3. Operations Strategy: Process Choice
Process Trade-offs
Hill, Chapter 2 and 4, SP
Lecture 2a: Video Module 2a
Lecture 2b: Video Module 2b
Video 2: King Soopers Bakery
4. Continuous Improvement: Lean Systems
Week 3
January 17
K & R Chapter 3 and
Chapter 16
Homework: Problems 2,5
Homework: Problems 2,3
Lecture 3: Video Module 3
Video 3: Hewlett Packard
Video Review 3: Hewlett Packard
K & R Chapter 3, pp 132133
K & R Chapter 16, pp 820821
5. Determining Capacity Requirements
Homework: Problems 2,5,9
Lecture 4: Video Module 4
K & R Chapter 8, pp 323342
K & R p 351-353
6. Capacity Management
Team Case Assignment #1 due 1/18:
Buckeye Resort
Case Excel Data File 1: Buckeye
SP
Quality Management
Week 4
January 24
Week 5
January 31
7. Total Quality Management
Homework: Problems 5, 9, 13
Case: Cranston Nissan
Lecture 5: Video Module 5
Video 4: TQM at Christchurch ParkRoyal
K & R Chapter 6
K & R p 273-276
K & R pp 276-278
8. Process Control
Homework: Problems, 4,5,7,8,15,16,
and 13 (sigma = .0669)
Lecture 6: Video Module 6
Lecture 6a: Video Module 6a
K & R Chapter 7
K & R pp 313-316
9. Quality Analysis
Team Case Assignment #2 due 2/1
American Seal
Case Excel Data File: Seal
SP
Supply Chain Management
Week 6
February 7
10. Supply Chain Exercise
Gaming Company Case
Case Data File: Gaming
SP
11. MIDTERM EXAM Feb 8
(Covers topics 1-10)
Scheduled in same room
location and time as
Recitation Session
Supply Chain Management
Week 7
February
14
Review Exam
Basic Concepts in Supply Chain
Management
Homework: Problems 1,2,3,4,5,8
Lecture 7: Video Module 7
K & R Chapter 11
K & R pp 531-533
12. Inventory Systems
Video 5: Inventory and Textbooks
Video Review 5: Inventory and Textbooks
Week 8
February
21
13. EOQ Basics/ABC Analysis
Homework: Problems 1,2,6,7
Lecture 8: Video Module 8
K & R Chapter 13, pp 595607
K & R pp 627-628
Week 9
February
28
14. Continuous Review Systems
Homework: Problems 9, 10, 12
Lecture 9: Video Module 9
K & R Chapter 13, pp 608614
K & R pp 628-629
15. Periodic Review Systems
Homework: Problems 19,22,24,25
K & R Chapter 13, 615622
K & R pp 630-631
16. Inventory Management
Team Case Assignment #3 Due 3/1:
Columbus Spirits Case
Case Excel Data File: Spirits
SP
Manufacturing Planning and Control Systems
Week 10
March 7
17. Material Requirements Planning (MRPII)
Homework: Problems: 1,3,7
Lecture 10: Video Module 10
K & R Chapter 15, pp 732746
K & R pp 767-769
18. Material Requirements Planning Systems
(MRP)
Homework: Problems 10,11,12,13, 17
Lecture 11: Video Module 11
K & R Chapter 15, pp 746754
K & R pp 770-774
19. MRPII Systems: Implementation
Team Case Assignment #4 due 3/8:
Flashy Flashers, Inc.
Case Excel Data File: Flashy Flashers
K & R Chapter 15, pp 754764
K & R pp 777-780
Mandatory PEER EVALUATIONS
due to the instructor by March 9
Finals
Week
March 14
20. FINAL EXAM Mar 15
(Covers topics 12-19)
Scheduled in same room
location and time as
Recitation Session
CASE AND VIDEO DISCUSSION QUESTIONS
Videos:
Au Bon Pain:
1. What competitive advantage is the company attempting to exploit in the market
place?
2. What is the operations strategy?
3. How is the company performance measured?
4. What problems are of concern to top management?
5. Will the new partner/manager program help the company achieve its objective?
King Soopers Bakery:
1. What process choice was made for each of the three processes shown in the
video: the bread product line, the pastry product line, and the cake product line?
2. What are the key market and manufacturing characteristics of each process
choice?
3. Please develop a process flow diagram for each of the three processes.
Hewlett Packard:
1.What factory performance measures were affected by the change in process
from a six-unit batch push system to a one-unit kanban pull system?
2. What change occurred in each of the five performance measures? Why did
these changes occur?
TQM at Christchurch ParkRoyal:
1. How is quality defined at ParkRoyal?
2. How is quality provided at ParkRoyal?
3. What are the major elements of their Total Quality Management System?
Please provide examples of each element in their quality wheel framework.
4. What do they do to find out what their customers expect?
5. How do they maintain a high level of quality?
6. How do they consistently provide; that level of quality?
7. What do they do to continually improve quality?
Inventory and Textbooks:
1. What type of demand is place on: the bookstore, the Addison Wesley
warehouse, and the Addison Wesley plant?
2. What types of inventory are carried at: the bookstore, the Addison Wesley
warehouse, and the Addison Wesley plant?
3. Why are these types of inventory held at each facility?
Cases:
Too Short The Day:
1. Take the point of view of Giles Chamberlain explaining his job to a new theater
director.
2. Explain his typical day and characterize the tasks that he accomplished and
those that he did not accomplish.
3. Identify any problems with the way his work is currently organized and
propose solutions.
Buckeye Resort Corporation:
1. Estimate the demand for tennis court hours for July, August, and September of
the current year.
2. Will there be a capacity shortage this year, given the present capacity of the
tennis courts? How much, if any?
3. What are the costs associated with expanding capacity to meet expected
demand?
4. In preparing your analysis, you may use the Buckeye Resort Excel data file.
Cranston Nissan (ignore assignment questions in textbook):
1. Categorize the quality problems into the major probable causes.
2. Prepare a fishbone chart for “Failure to remedy repair problem to customer
satisfaction.”
3. What are the specific actions Jackson should take immediately? What should
some of his longer-term goals be?
American Seal:
1.What are the problems that American Seal Faces?
2. What insights can you gain from the sample data in Exhibit 12? (The data
represent 20 samples of 5 observations each. For example, numbers 1-5
correspond to sample 1, numbers 6-10 correspond to sample 2, and so forth.) In
preparing your analysis, please prepare a SPC Variable Control Chart analysis on
the Excel spreadsheet prepared for the case.
3. What recommendations do you have for the company?
Gaming Company:
This case is used as a computer based exercise. Please access the Excel
spreadsheet containing the Gaming Company data on your computer. Also, please
access the simulation exercise instructions so that we can begin the Gaming
Company exercise. In preparation for the session, plan to do the following:
Read the Gaming Company Case
Answer the following questions:
1. What should the quantity of cases be whenever Mr. Heller places an order?
How often should he place orders?
2. We will simulate several weeks of demand for The Big Game during the
simulation exercise online. Be prepared to place orders for The Big Game during
this exercise.
At the end of the simulation exercise, please print out a copy of your Excel spread
sheet and turn it in to the recitation session facilitator.
Columbus Spirits:
1. Perform an ABC inventory analysis for the products in Exhibit 2. Discuss
results.
2. Design a Continuous Review System using the products in Exhibit 3 as
examples.
3. Discuss the advantages and disadvantages of using a Continuous Review
System at Columbus Spirits.
4. In preparing your analysis, you may use the Columbus Spirits Excel data file.
Flashy Flashers, Inc. (ignore assignment questions in textbook):
1. Using the master production schedule given in Table 15.10 in the case and the
MRP template provided in the Flashy Flasher Excel Data File, determine the
feasibility of the resulting materials plan covering all product items. What parts
should be ordered each week? What changes, if any, would you make to the plan,
and Why?
2. Please modify the master production schedule and the material plan to take into
account the availability of material and lead times in the company. What
conclusions can be drawn from this information?
3. Evaluate the effectiveness of the MRP system at Flashy Flashers. What changes
would you make in implementing and using this system?
4. What should Jack Jacobs do in order to meet the inventory and service goals
stated by management?
GUIDELINES FOR THE CASE ANALYSES
The purpose of the case assignments is to provide the student with an opportunity to
communicate their analysis of a situation in a clear and professional manner. There are 4 possible
written Team Case analyses, as noted in the course outline. Each team is responsible for
submitting for course credit 2 of these cases. The questions to be addressed are noted in the
syllabus above. NO LATE REPORTS WILL BE ACCEPTED. They are due on the date
assigned in the syllabus.
Strategic Guidelines for the content of the paper:
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Assume that readers know the basic facts of the case. They do not need to be repeated.
Apply what you have learned in this course. Consider ideas from the lectures, textbook,
and case packet.
Address each question in the text of the paper. Take no more than one page per question.
Suggestions on how to address each question:
o Understand the problem
o Brainstorm for alternatives
o Analyze the alternatives from both a quantitative and an qualitative point of view
o Develop recommendations and support them
o You may also want to discuss the alternatives that you did not choose and why
Exhibits are strongly encouraged. Be creative. The benefits are:
o They help students organize their thoughts
o They permit students to apply what they have learned in the course
o They quickly provide the instructor with an overview of the students’ level of
understanding.
o They permit the students to concisely provide details of their analysis without
detracting from the main message of their report.
Technical Guidelines:
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Papers are to be concise, grammatically correct and free of spelling errors.
Papers should be composed on word processing software and printed in hard copy and an
easily read form.
Each report should be a MAXIMUM OF 3 PAGES, double spaced, 12-point font with
normal margins. A maximum of 5 exhibits may be appended and should be referred to
within the text.
Exhibits based on mathematical calculation should include a footnote with the formula(s).
Discussion of assignments with any student not in your team constitutes two types of
academic misconduct: (1) unauthorized collaboration; (2) giving and/or receiving aid in
an unauthorized manner. See section on Academic Misconduct for further discussion.
Memos or Cover Pages should include the following:
o Date: Due Date
o From: Name of Student and Branch Campus
o To: Instructor’s name
o Subject: Case Title, e.g., Too Short The Day
PEER EVALUATION - GROUP PROJECTS
Your group has been given $12,000 for each case as a consulting fee. Divide the money
among your group based on the quality and effort of each team member’s contribution.
This evaluation is due to the instructor by March 9, and may be used to adjust case
grades. Please justify your response only if an unequal valuation is assigned.
Case 1
Case 2
Your name:
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Team members:
______________________________
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$12,000
$12,000
Discussion: