Production & Operations Management

Course Outline - Fall 2011

Instructor: M. Kamran Mumtaz

Office:
Telephone:
Email: mmumtaz@iba.edu.pk
Office Hours: To be decided

Course Objective:
Operations Management involves the systematic planning, design, operation, control and
improvement of business processes. Managing operations is critical to every type of organization,
for it is only through effective and efficient utilization of resources that an organization can be
successful in the long run. This is especially true today, when we see that significant competitive
advantage accrues to firms which manage their operations effectively.

Our objective is to introduce concepts and techniques related to the planning, design, control, and
improvement of both manufacturing and service operations.
The course aims at developing a focus and critical thinking which is extremely important to solve
problems in operations. The students will be required to understand and apply the tools of
operations learned in the course to practical situations. Some topics covered include operations
analysis, forecasting, production planning and control, capacity analysis, project management,
procurement, inventory management, quality and maintenance.

Course Learning Objectives

The primary objectives of this course are:
1. To develop an understanding of the role Operations Management plays in a business
organization.
2. Develop understanding of the fundamental concepts, analytical techniques and
implementation issues involved in Operations Management.
3. With a general management perspective develop the significance of linkages between the
production/operations and other functional areas like marketing, finance and organizational
behavior.
4. To develop an understanding of how:
a. As a production manager:
i. One can analyze and improve a given production/operation process to satisfy
the requirements of business strategy of other functional areas.
ii. Design an Operations Management set-up given a set of business objectives.
b. As a manager in other functional areas:
i. Identify the manner in which Operations can play a major role in influencing
the functional area strategy.
ii. Determine the ways in which Operations can support area’s functions and
contribute to that department’s better efficiency.
To achieve these objectives, teaching focus will be on conveying the specific concepts and
develops analysis capabilities without losing the general management perspective.

Course Outcomes
 Understand the operations process, be able to analyze and solve problems pertaining to
operations e.g. forecasting, production planning, inventory control
 Construct mathematical models of manufacturing and service operations
 Create spreadsheet implementation of the above models to create solutions
 Appraise how other functional areas of business are integrated with Operations
Management
Text Book
Operations Management, 7th Edition by Jay Heizer & Barry Render

Additional Reading
Operations Management for Competitive Advantage, 10th Edition by Chase, R. B, Aquilano, N.
J., and Jacobs, F. R.

Operations Management, by William J. Stevenson, 8th edition, McGraw-Hill 2005

Operations Strategy: Competing in the 21st Century, Sara Beckman & Donald Rosenfield,
International Edition, McGraw-Hill 2008

Matching Supply with Demand: An Introduction to Operations Management, by Gerard Cachon

& Christian Terwiesch, 2nd edition, McGraw-Hill 2009

Toyota Production System: An Integrated approach to Just-In-Time, by Yasuhiro Monden, 3rd

edition, Engineering & Management Press

Good to Great by Jim Collins

Articles relating to latest trends in Operations Management such as Lean Manufacturing, Six
Sigma and 5S

Methodology
The course relies on a combination of lectures, readings, assignments, case discussions and a term
project. This will be an interactive session whereby students are expected to participate in class
discussions and come up with useful analysis and solutions to problems in operations.

An Operations Manager from the industry will be invited somewhere in the mid of the semester
to speak on the topic. He/She will discuss the application of principles of operations management
at his/her firm. The speaker will further detail the problems faced and improvement efforts made
at his/her facility.

The students will do the course project in groups of 5. This condition may be relaxed upon the
discretion of the teacher. A final presentation of 10 minutes per group will be due at the end of
the project.

Project details will be announced later.

Assignments

The case study questions need to be attempted and handed at the beginning of each case class.
Assignments otherwise mentioned in the outline need to be completed as well.

Details will be announced in class.

Quizzes
Quizzes will be unannounced. A quiz may have questions from the discussion of the session in
which the quiz is being held or the session immediately preceding it.

The exams will be closed book. A one page (hand written, A-4 size) formula sheet may be
allowed. First term exam will cover the material from sessions 1 to 10. Second term exam will
comprise of material from sessions 11 to 21. Final exam will be comprehensive.
Student / Faculty Contract
Building a productive, challenging and enjoyable learning environment requires the special effort
of students and professors alike. Please consider the following expectations:
Student's Obligations
1. Be fully prepared for each class.
2. Attend class consistently throughout the term.
3. Participate regularly in class discussions.
4. Listen attentively to other students' comments.
5. Have name card consistently and clearly displayed.
6. Arrive promptly before each class session begins. Late arrivals distract other students and
are disconcerting to guest speakers.
7. Hand in assignments on the due date.
8. Show highest code of conduct, integrity and honesty

 Talking in the class, wandering, dozing off will result in disciplinary action
 Students should abide by all IBA rules and regulations, not otherwise explicitly stated

Instructor's Obligations
1. Clearly communicate expectations about student performance.
2. Be prepared for class.
3. Be accessible to students.
4. Orchestrate class discussion in a way that maximizes learning by all.
5. Finish class on time.
6. Provide prompt feedback to the class as a whole, and to individual students, whenever
necessary.

Grading and Policy

2 Term Exams 30 Marks
Quizzes, Assignments & Class Discussion 20 Marks
Project 10 Marks
Final 40 Marks
DETAILED COURSE OUTLINE:

INTRODUCTION

Session 1:
Introduction to Operations Management Course

 Chapter: “Introduction to the Field”, OM for Competitive Advantage by Chase pp. 4-

21
 “Note on How To Approach POM Cases”, HBS

Session 2:
Operation Strategy

 Chapter: “Operations Strategy and Competitiveness”, OM for Competitive

Advantage by Chase pp.22-39

PROCESS ANALYSIS

Session 3:
Performance Measurement

 Chapter: “Productivity”, OM by Stevenson pp.47-52

 “Glossary of TOM terms”, HBS

Session 3:
Process Analysis: Process Flowcharting

 “Note on Process Analysis”, HBS

Session 5:
Process Analysis: Process Flowcharting

 “Capacity Analysis: Sample Problems”, HBS

Session 6:
Process Analysis: Process Flowcharting-Bottlenecks

CASE: “Kristen’s Cookie Company (A)”, HBS

CASE QUESTIONS:
Answer all questions given at the end of the case. Additionally draw a process flow diagram for
cookie production.

You may want to look up http://www.cookiedelivery.com for a real-life version of Kristen’s

Cookie.
SUPPLY AND DEMAND MANAGEMENT

Session 7 - 8:
Demand Forecasting

 Chapter: “Forecasting”, OM for Competitive Advantage, Chase, pp. 512-527

 “Making supply meet demand in an uncertain world”, HBR

Session 9:
Production Planning

CASE: “MACPHERSON REFRIGERATION LTD.”, HBS

CASE QUESTIONS:
1. Evaluate the plan presented in the case.
2. Can you come up with a better plan? If yes, how your plan is better than the one presented in
the case?

 Chapter: “Aggregate Planning”, OM for Competitive Advantage, Chase, pp. 560-575

(skim)

Session 10:
Production Planning

 Chapter: “Material Requirements Planning”, OM for Competitive Advantage, Chase,

pp. 583-617

Session 11:
Inventory Management- EOQ Model

 Chapter: “Batching and other flow interruptions: Setup times and the Economic
Order Quantity Model”, Matching Supply with Demand, Cachon & Terwiesch, pp.
97-118

FIRST TERM EXAM (Sessions 1 – 10)

Session 12:
Inventory Management (Cont)

CASE: “Quantico Computerware Ltd.”, IVEY

CASE QUESTIONS:
1. As John Markham, how many diskettes of each model would you plan to make during a run
under each of the three demand forecast scenarios?
2. From those numbers, derive suitable production plans?
Session 13:
Production Planning (TBD)

 Chapter: “Scheduling”, OM, Russell & Taylor, pp. 675-700

Session 14:
Toyota Production System

 Chapter: “Just-in-Time & Lean Systems”, OM for Competitive Advantage, Chase,

pp. 425-449
 “Getting Control of Just-in-Time”, HBR

SYSTEM DESIGN

Session 15:
Capacity Management: Capacity Decision Making

 Chapter: “Strategic Capacity Management”, OM for Competitive Advantage, Chase,

pp. 387-405

Session 16:
Capacity Management: Facility Location

 Chapter: “Facility Location”, OM for Competitive Advantage, Chase, pp. 406-423

Lean Assignment:
“Lean Methodology: Selecting and Executing a Personal 5S Project”, Darden Business
Publishing

Session 17:
Capacity Management: Case

CASE: “Alden Products, Inc. – European Manufacturing”, HBS

CASE QUESTIONS:
1. Do you agree with the argument/logic that led API in 1962 to consolidate its European
(continental) production into a single facility?
2. What is your evaluation of the Uniplant’s performance during the 1980s?
3. What recommendations would you make to Mr. Genet, API-Europe’s Executive VP, as
regards the operations strategy his organization should follow in the future? Specifically, how
much additional production capacity should be provided, where should it be located, and how
should it be managed?

Session 18:
Facility Layout

 Chapter: “Facility Layout”, OM for Competitive Advantage, Chase, pp. 186-217

Session 19 - 20:
Product/ Process Design (TBD)

 Chapter: “Product & Service Design”, OM by Stevenson, pp. 121-142

 Chapter: “Robust Process Design”, OM by Stevenson, pp. 192-200
 Chapter: “Process Technology”, Operations Strategy by Beckman & Rosenfield, pp.
68-116 (skim)

SYSTEM IMPROVEMENT

Session 21 - 22:
Lean Methodology

 “Wausau Equipment Company: A Lean Journey (A)”, Darden Business Publishing

 “Lean Methodology: Selecting and Executing a Personal 5S Project”, Darden Business
Publishing (be prepared to submit and discuss your analysis)

SECOND TERM EXAM (Sessions 11 – 21)

Session 23 - 24:
Product/Process Quality

 Chapter “TQM: Focus on Six Sigma” OM for Competitive Advantage, Chase, pp. 273-
298
 Chapter “Process Capability and SQC” OM for Competitive Advantage, Chase, pp. 299-
321 (skim)

Session 25:
Latest Works in Supply Chain/ Operations Theory and Application

 To be decided in class

SPECIAL TOPICS IN OM

Session 26:
Supply Chain Management

 Chapter: “Supply Chain Management”, OM by Stevenson, pp. 693-719

 Chapter “Supply Chain Strategy” OM for Competitive Advantage by Chase pp. 363-
385

Session 27:
Process Improvement: Project Management

 Chapter: “Project Management”, OM for Competitive Advantage, Chase, pp. 56-87

 Levy, Ferdinand K., Gerald L. Thompson and Jerome D. Wiest. The ABC's of the
Critical Path Method. Harvard Business Review, Boston, 1963
Session 28:
Course Review