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D. Anthony Chevers
SBCO 6240 - Production and Operations Management
 Contact information - instructor
 Class times and locations
 Course objectives and scope
 Schedule topics
 Course materials & Assignments
 Grading scheme & Note
 Lecture #1 – Overview of POM
Contact Information -
 Instructor: D. Anthony Chevers
 Room: 28 Department of
Management Studies (DOMS)
 Email:
 Tele: 977-3775/3808, Ext 272
 Office hours: Tue. 5:00pm – 7:00pm

Class Times &
 SB624 – Western Campus
 Sat/Sun 7:30 am – 10:40 am
10:50 am – 2:00 pm
2:50 pm – 6:00 pm
Room: Lecture Theatre
Start – Jan. 17, 2010

Course Objectives & Scope
 To introduce students to the strategic and operational
issues and decisions involved in managing the operating
division of a firm.
 The operations function in the firm is concerned with
managing the processes by which basic resource inputs
(raw materials, labor, energy, etc.) are transformed into
goods and services.
 The efficiency with which this transformation occurs is
influenced by the choice of technologies, the design of the
facilities, processes and jobs, and the effectiveness of the
production plans.
 Firms have only 2 means to carry out their business
mission. The business processes (repetitive elements) &
the projects commissioned to satisfy specific purpose.
 By examining cases in a spectrum of industry settings,
students are exposed to a wide diversity of the decisions
faced by the operating manager.

Operations Road Map
(Ritzman et al., 2010) – Prescribed Text

Scheduled Topics [Western

 Session #1 - Operations Management & Strategy (Chap. 1&2) [Jan. 17-7:30]

 Session #2 - Quality Management & Control (Chap. 5) [23/1-7:30]
 Session #3 - Process Analysis & Productivity (Chap. 4 & 1) [31/1-7:30]
 Session #4 - Forecasting (Chap. 13) [6/2-10:50]
 Session #5 - Inventory Management (Chap. 15) [6/2-2:50]
 Session #6 - Supply Chain Management (Chap. 10 & 12) [14/2-7:30]
 Session #7 - Individual – Mid Semester Exam[20/2-7:30]
 Session #8 - Facility Location (Chap. 10) [20/2-10:50]
 Session #9 - Project Management (Chap. 8) [28/2-7:30]
 Session #10 - Group assignment submission & presentation [28/2-10:50]
 Session #11 - Revision [6/3-7:30]
 Session #12 - Revision [6/3-10:50]
 Final Exam - March 20, 2010 [20/3]

 Students are expected to read the assigned
chapters in the text and supplemental
 Carefully analyzed the relevant
cases/caselets discussion questions and/or
exercises prior to class.
 Essential to take an active role in class
 Students are encouraged to work in groups,
but are expected to present their own
analysis and perspectives in class.

Assignments & Exam

 #1 – Individual – Mid Semester Exam [20%]

 20 Theory and Calculation questions covering Lectures 1 to 5
 Mid semester date = 20/2/2010 @ 7:30am
 #2 – Case Study Analysis [20%]
 Form groups in the range of 4–6 students. Each group will be
given a POM case in the areas covered. The group will be
required to do a thorough analysis of the assigned case in six
(6) pages. The analysis and reports should meet the stated
guidelines given in the course outline.
 Oral Presentation on 28/2/2010 = 5%; Written Paper = 15%
 Written paper due on 28/2/2010. PowerPoint can be sent by
 Final Exam [60%]
 Comprehensive (covers all areas) 9
Course Materials
 Prescribed text:
 Operations Management – Processes and Value Chains,
9th Edition by Lee Krajewski, Larry Ritzman & Manoj
Malhotra, Pearson Prentice Hall, 2010.
 Slides that will be used in class are available on the UWI website, as
well as on CDs
 Students are expected to copy or download the materials for their
use in class.
 To download slides and exercises:
 Website:
 Students; Select MBA (Part Time); Click SB624; Download; Select topic
 Other reference text:
 Operations and Process Management – Principles and Practice for
Strategic Impact, Nigel Slack, Stuart Chambers, et al. Prentice Hall, 2006
 Operations Management, 4th Edition by Roberta S. Russell and Bernard W.
 Operations Management, Seventh Edition, Jay Heizer and Barry Render,
Pearson Prentice Hall, 2004
 Introduction to Operations and Supply Chain Management, Cecil Bozarth &
Robert Handfield, Pearson Prentice Hall, 2006
Grading Scheme &
 Individual & Group Assignments =
 Final Comprehensive Examination =
Total = 100%
------- 0 ---------- 0 ------------ 0 -------------
 Please be responsible with the use of

cell phones

Lecture #1a – Overview of
 Definitions
 Operations Management; Supply
 Purpose of POM
 Purpose of Supply Chain
 Operations & Supply Chain
 Developments in POM
 Exercises/Case Analysis

Operations Management
 It is through Production and Operations
Management (POM) that we come to have our
food, shelter, durable and non durable goods,
health care, education and general standard of
living. The quality of our productive systems is a
main difference between highly industrialized
countries and underdeveloped countries.
 POM – The planning, scheduling and control of the
activities that transforms inputs into finished
goods and services (Bozarth, 2005). The primary
concern is QUALITY and EFFICIENCY.

Diagram of the
Productive System
F in a n c e M oney
M a n a g m t. Labor P ro d u c ts

S o c ie ty A c c o u n tgIn
. p u t s M a te ria lT r a n s fo r m a tio n O u tp u ts S o c ie ty
M k tg . M a c h in e S e rv ic e s
E n g in e e g . M e th o d

C o n tro l
In te rn a l Feedback

Q u a lity G o o d s
E ffic ie n t S e r v ic e s
E x te rn a l F e e d b a c k
Heizer and Render (2004)

The Operations Function
Bozarth, 2005
 Operations function is the collection of people,
technology and systems within an organization that
has primary responsibility for providing the
organization’s products or service.
 E.g. – Manufacturer of wooden chairs – Raw lumber arrive as
an input to the plant by truck or train car; Wood is unloaded
and moved onto the plant floor; Planing machines cut the
lumber to the right thickness; Lathes shape pieces of wood
into legs and back spindles for the chairs; Other machines
fabricate wood blanks, shaping them into seats and boring
holes for the legs and back spindles; People who run and
load the machines; Conveyors and forklifts that move
materials around the plant; Other employees who assemble
the chairs; Other employees who pack and move completed
chairs into a finished goods warehouse or onto trucks to be
delivered to customers; Supervisors and managers use
information to plan what activities will take place next.
 o

Supply Chain & Mang.
(Bozarth, 2005)
 A supply chain is a network of
manufacturers and service providers that
work together to convert and move goods
from the raw materials stage through to the
end user.
 Upstream – Activities of firms that are positioned
earlier in the supply chain relative to some other
activity or firm of interest (Bozarth, 2005). E.g.
-Alcoa to Anheuser-Busch; Local E.g.?
 Downstream – Activities or firms that are
positioned later in the supply chain relative to
some other activity or firm of interest (Bozarth,
2005) E.g. –M&M to Anheuser-Busch; Local E.g.?
 o
Anheuser-Busch’s Supply
Chain (Bozarth, 2005)
Alcoa =Mining; Ball =Al cans; M&M =Wholesaler; Meijer

Supply Chain & Mang.
(Bozarth, 2005)
 Supply Chain Management
 The active management of supply chain activities and
relationships in order to maximize customer value and
achieve a sustainable competitive advantage (Bozarth,
 Earlier links were disjointed and operations inefficient
 Pioneer – Wal-Mart (1980’s) – Individual stores sent
daily sales info. to Wal-Mart suppliers via satellite, who
plan production and ship orders to Wal-Mart’s
warehouse. From W/H to stores in less than 48 hours

Organizing for Goods
and Services (Heizer, 2004)
 To create goods and services, all organizations
perform 3 basic functions:
 Marketing – generates the demand & takes the order [E.g.
-Bumper sticker, I go to church ‘xx xxx xxxx’, etc.]
 Production/Operations – creates the product or service
 Finance/Accounting – tracks how well the organization
is doing, pays the bills & collects the money
 Universities, churches, boy scouts, fast food outlets,
car manufacturing and other businesses all perform
these functions

Three Functions
Required of All

Fast food
Why Study POM & Supply
Chain Management? (Bozarth,

 Every organization must make a product or

provide a service that someone value
 Manufacturers produce physical goods that are
used directly by consumers or other businesses;
Transportation companies provide valuable
services by moving and storing these goods;
Design firms use their expertise to create
products or even corporate images for
customers; Others?
 Most organizations function as part of larger
supply chains
Why Study POM & Supply
Chain Management? (Bozarth,

 Organizations must carefully manage their

operations and supply chain in order to
prosper, keep the firm alive and survive
 How many shoes should we make and in what
styles and sizes? What kind of people skills and
equipment do we need? Should we locate our
plants to take advantage of low-cost labor or to
minimize shipping costs of finished goods? Others?


Corporate Mission

Assessment of Distinctive
Global Business Business Strategy Competencies or
Conditions Weaknesses

Product/Service Plans

Competitive Priorities
Cost, Time, Quality &

Operational Strategies
Positioning the Production System
Focus of Production
Product/Service Designs and Plans
Production Process and Technology Plans
Allocation of Resources to Strategic Alternatives
Facility Plans: Capacity, Location, and Layout
Best Operating Level with
Economies & Diseconomies of


Industrial Revolution

Continuum of
More like a More like
manufacturing a service
organization organization

• Physical, durable product • Intangible, perishable

• Output that can be product
inventoried • Output that cannot be
• Low customer contact inventoried
• Long response time • High customer contact
• Regional, national, or • Short response time
international markets • Local markets
• Large facilities • Small facilities
• Capital intensive • Labor intensive
• Quality easily measured • Quality not easily measured
Operations Strategy

D. Anthony Chevers
DOMS, Room #28

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