COURSE DESCRIPTION:

 

BAD 64041 OPERATIONS MANAGEMENT (3) Develops a framework for analysis of operating problems. Uses computer, quantitative, and behavioral models to develop operating plans consistent with organizations' competitive (or service) strategy.

Prerequisite: BAD 64005.

Beginning June 4 and ending July 7, 2012

I. TO THE STUDENT:

 

The main objective of this course plan, the syllabus, is to assist you, the student, in preparing yourself before coming to a class presentation, in being able to follow a lecture and participate in class, and in doing the adequate work after class. You are going to participate in informal, un-graded assignments in and out of the classroom that allow you to understand the basic theory behind operations management and the quantitative skill used to make decisions in operations. These assignments will prepare for formal, graded assignments where students are evaluated on their mastery of these skills.

 

That is the reason, that your instructor has prepared this syllabus with as much detail as possible. It is actually a tool that will enable you to get the most out of this course.

 
II. RATIONALE:

 

As we approach the new millennium, the need for organizations to improve all levels of their operations has never been more important. The effective use of their production resources, the focus in continuous quality improvement, and decision-making could be vital for the success of any organization. The operations function is at the core of a business, because here lays responsibility for most of the labor, materials, equipment, information, energy, and capital used to produce goods and services.

 

Knowledge of operations management prepares managers to face the competitive challenge of effectively managing organizational resources. Operations management merges topics from accounting, marketing, industrial engineering, human factors, management science, and statistics into a blend of analytical tools and strategic issues.

 

The main objective of this course is to enable students to become better managers, particularly if they find themselves working in operations management. A sizable part of the U.S. and international work force is employed in operations related jobs. These jobs are important and challenging and they can lead to rewarding and successful careers. To achieve this objective, several goals were established and are presented in part III.

 
III. GOALS:

Upon successful completion of the course, the student should be able to:

 

Cognitive Domain:

 

1. Understand what operations managers do in a manufacturing and service firms, and become familiar with the tools and techniques that operations managers use in making operating decisions.

 

2. Identify weaknesses and strengths of the operation function within a firm and be able to communicate at different levels of the organization with the objective of optimizing results of the operations function.

 

3. Apply theoretical concepts and analytical techniques learned in this course for the effective operation of manufacturing and service systems.

 

4. Compare different quality measures and costs, and show how they can be used to translate quality issues into the language of management--money.

 

5. Propose the importance of participate problem-solving approaches and the application of analytical techniques for the evaluation of production processes.

 

Affective Domain:

 

6. Evaluate the numerous managerial factors that contribute to the successful implementations of operations management concepts.

 

IV. DETAILED COURSE SYLLABUS:

 

A.    COURSE/INSTRUCTOR/TEXT INFORMATION:

 

Course Title: Operations Management

Instructor:  Alan D. Smith, Ph.D., University Professor of Operations Management

Office: Graduate Office, MIS, 434A, Kent State University

Office Hours: hours by appointment

Telephone: 330-206-3557 (cell)

E-mail: smitha@rmu.edu and adsmith3.kent.edu
Meeting times and place: Online.

NO CLASS JULY 4 FOR HOLIDAY.

 

TEXTBOOK:

 

Heizer, J. and Render, B. (2008). Principles of Operations Management, 7th edition.  McGraw-Hill: New York. (Please note, I am using an older version of the textbook in order to save students considerable sums of money, you should be able to purchase the text online for less than $20)

           

Software: OMExcel3 and/or POM windows (in student DVD ROM bundled with the textbook)

 

 B. DETAILED COURSE DESCRIPTION:

 

Operations Management provides the conceptual and analytical frameworks for managerial decision-making in terms of process design, quality, capacity, project scheduling, and inventory and their implementation in the major functional areas of the business disciplines. Concepts and issues in TQM and SPC are emphasized, including a general framework for quality in the product design and production process using Crosby, Deming, Juran, and other theory and design techniques in measuring quality by statistical processes, reliability and sampling techniques. The course should allow the students develop an expertise in analyzing and improving process flows, including flows of customers in service operations, material flows, and information flows in order to improve overall efficiency and effectiveness of operations in general. Lecture, class discussion, problem-solving with aid of appropriate software applications, case studies, and literature reviews will be stressed.

Prerequisite: Statistics for Management (BAD 64001)

 

C. PREREQUISITES:

 

It is assumed that all students have successfully passed a course on fundamentals of business statistics.  Students who have not successfully completed the course prerequisite must withdraw from this class. You risk deregistration if you have not completed the course prerequisite.  I do not assume you have a total knowledge of the statistics course, but you should know concepts of sampling distributions, z and t-test statistics, and some competency with interpreting the results of hypothesis-testing procedures.

 

C. COURSE-SPECIFIC OBJECTIVES:

 

The primary goal of BAD 64041 OPERATIONS MANAGEMENT is to provide graduates of MBA/MS programs at Kent State University with a thorough and carefully planned learning experience in the operations function in making accurate managerial decisions within environmental and information constraints that comply with AACSB standards for graduate education.

 

In general, managerial decision-making tools and skills are much in demand and highly integrated in the various departments, including computer and information systems, finance, economics, statistics, accounting, management, and marketing. This course in operations management would provide students in the traditional and nontraditional MBA programs (i.e., health care services, quality assurance) a focus point for the theoretical and practical knowledge of the quantitative tools and skills acquired in the Quantitative Skills Interactive course (pre-MBA program). This introductory course in Operations Management will develop these applications, as well as enhance the MBA with topics in statistical quality control (SQC), total quality management (TQM), self-directed work teams, inventory management, capacity planning, and other applied production planning and control topics.

 

Specifically, student completing BAD 64041 OPERATIONS MANAGEMENT will be able to:  

 

1.      Differentiate and assess the operations decision-making framework in terms of process design, quality, capacity and scheduling, and inventory, and their implementations in the major functional areas of the business disciplines.

 

2.      Assess an operation strategy to a firm's multiple objectives, focus, and response to external as well as international factors.

 

3.      Recognize and translate product modular design and the interaction of product-processes in both service and industrial settings.

 

4.      Develop a general framework for quality using Crosby, Deming, and others' theory and design techniques in measuring quality by statistical processes, maintainability, reliability, sampling techniques, Pareto charts, cause-and-effect diagrams in a variety of settings (i.e., purchasing, data entry, repetitive manufacturing).

 

5.      Familiarize the student with production and its relationship to achieving an organization's primary objective of efficiency in dollars or resource utilization.

 

6.      Present and interpret production as a common-sense area of business operation, complicated and refined only through the use of more sophisticated quantitative methods.

 

7.      Discuss and demonstrate the major types of process strategies in terms of flow of products, dimensional analysis, and product-process matrices through linking process selection to corporate and vertical integration strategies.

 

8.      Develop strategies to deal with management issues in attempting to rationalize, standardize, and control the design and delivery of services, and integrating the role of technology in the design and delivery of these services.

 

9.      Apply the basic quantitative management skills in business decision-making, such as linear programming and corresponding sensitivity analysis, transportation and transshipment methods, network models including PERT/CPM, queuing, decision analysis, multi criteria decision techniques, forecasting, Markov processes, and calculus-based solution procedures.

 

10.  Familiarize the student with techniques and applications of current management sciences/operations management practices through library assignments, literature reviews, case study analysis, and term projects.

 

11.  Analyze and improve process flows, including flows of customers in service operations, material flows, and information flows in order to improve overall efficiency and effectiveness of operations in general.  

 

12.  Access inventory systems, such as EOQ, MRP, JIT, and their impact on costs, technology, lot sizing, project planning and scheduling in optimizing the firm's goals. Software developments and their applications in this area are especially emphasized.

 

13.  Apply and interpret statistical methods and hypothesis-testing procedures in the various functional areas of the operations manager, including forecasting and time-series, multivariate and analysis techniques, simulation model effectiveness, and program evaluation.

 

14.  Analyze decision problems in operations and the relationship of operations decisions to other business decisions.

 

15.  Present the concepts of operations planning and control including and forecasting, capacity, scheduling, inventory, MRP and JIT, and TQM.

 

16.  Familiarize the student with operations process management including quality, productivity and process design.

 

17.  Present the logistic/transportation function and its interface with operations.

 

18.  Evaluate performance measurement and improvement strategies by quantitative and qualitative means in order to measure and obtain feedback on operations performance measurement, including cost, quality, delivery, flexibility, and innovation.  This leads to an appreciation into benchmarking of performance and processes, with the goal of increased efficiency and effectiveness of the firm.

 

19.  Developing aggregate production-planning strategies to handle cases dealing with production planning models, dynamic programming production models with or without changing work- levels, machine workloads balancing, backlogging and desegregations.

 

20.  Performance measurement and improvement strategies by quantitative and qualitative means in order to measure and obtain feedback on operations performance measurement, including cost, quality, delivery, and flexibility. This leads to an appreciation into benchmarking of performance and processes, with the goal of the firm's increased efficiency and effectiveness.

 

21.  Develop an expertise of applied mathematics in problem solving in operations and control situations.
 

D. COURSE CONTENT:

 

 

 WEEKLY DATES        OPERATIONS MANAGEMENT TOPICS                          

  

 

PART I. INTRODUCTION

 

1. The Operations Function

 

 1.1 Definition of Operations Management

1.2 Operations Decisions - A Framework

1.3 Cross-Functional Decision Making

1.4 Operations as a System

1.5 New Operations Themes  

2. Operations Strategy

2.1 Operations Strategy Model

2.2 Emphasis on Operations Objectives

2.3 The Goal of Operations

2.4 Linking Strategies

2.5 New Strategies in Operations

2.6 Focused Operations

2.7 Global Scope of Operations

3. Product Design  

3.1 Strategies of New-Product Development

3.2 New-Product Development

3.3 Cross-Functional Product Design

3.4 Quality Function Deployment

3.5 Value Analysis

3.6 Modular Design

 

PART II: PROCESS DESIGN

 

4. Process Selection  

4.1 Production-Flow Characteristics

4.2 Classification by Type of Customer Order

4.3. Process Selection Decisions

4.4 Products-Process Strategy

4.5 Cross-Functional Decision Making  

5. Service Process Design  

5.1 Defining Service

5.2 The Service-Product Bundle

5.3 Service Guaranties

5.4 Cycle of Service

5.5 Customer Contact

5.6 Service Matrix

5.7 Employees and Service

6. Choices of Technology  

6.1 Technologies and the Manager

6.2 Computer Integrated Manufacturing

6.3 Future Office and Services

6.4 Enterprise Resource Planning Services

6.5 Technology Choice

7. Process-Flow Analysis 

7.1 Systems Thinking

7.2 The Process View of Business

7.3 Flowchart Analysis

7.4 Materials-Flow Analysis

7.5 Information-Flow Analysis

7.6 Using Process-Flow Analysis

7.7 Business Process Reengineering

 

Part III: QUALITY MANAGEMENT

 

8. Managing Quality  

8.1 Quality Definitions

8.2 Quality Planning, Control and Improvement

8.3 The Quality Gurus: Deming, Juran, and Crosby

8.4 ISO 9000 Standards

8.5 Malcolm Baldridge Award

8.6 Quality and Financial Performance

8.7 Why Some Quality Efforts Fail?  

9. Quality Control and Improvement  

9.1 Design of Quality Control Systems

9.2 Process Quality Control

9.3 Attributes Control

9.4 Variables Control

9.5 Using Control Charts

9.6 Continuous Improvement

9.7 Quality Control in Industry  

 

PART IV: CAPACITY AND SCHEDULING

 

10. Supply Chain Management  

10.1 Definitions and Terminology

10.2 Systems Interactions

10.3 Coordination in the Supply Chain

10.4 Measuring the Supply Chain Performance

10.5 Structural Improvements

10.6 Virtual Supply Chains

10.7 Virtual Supply Chains

11. Forecasting 

11.1 A Forecasting Framework

11.2 Qualitative Forecasting Methods

11.3 Time-Series Forecasting

11.4 Moving Average

11.5 Exponential Smoothing

11.6 Forecast Errors

11.7 Advanced Time-Series Forecasting

11.8 Causal Forecasting Methods

11.9 Selecting a Forecasting Method

12. Facilities and Aggregate Planning 

12.1 Facility Decisions

12.2 Facility Strategy

12.3 Aggregate Planning Definition

12.4 Planning Options

12.5 Basic Strategies

12.6 Aggregate Planning Costs

12.7 Example of Costing

13. Scheduling Operations 

13.1 Batch Scheduling

13.2 Gantt Charting

13.3 Finite Capacity Scheduling

13.4 Dispatching Rules

13.5 Infinite Capacity Loading

13.6 Planning and Control Systems  

14. Project Scheduling 

14.1 Objectives and Tradeoffs

14.2 Planning and Control in Projects

14.3 Scheduling Methods

14.4 Constant-Time Networks

14.5 Precedence Diagram Methods

14.6 PERT and CPM Methods

14.7 Use of Project Management Concepts 

 

PART V. INVENTORY  

 

15. Independent-Demand Inventories

15.1 Purpose of Inventories

15.2 Inventory Cost Structure

15.3 Independent versus Dependent Demand

15.4 Economic Order Quantity

15.5 Continuous Review System

15.6 Periodic Review System

15.7 Using P and Q Systems in Practice

15.8 ABC Inventory Management

16. Materials Requirement Planning 

16.1 Definition of MRP Systems

16.2 MRP versus Order-Point Systems

16.3 MRP Example

16.4 MRP Elements

16.5 Operating an MRP System

16.6 The Successful MRP System

17. Just-in-Time Systems 

17.1 Philosophy of JIT

17.2 Elements of JIT System

17.3 Stabilizing the Master Schedule

17.4 The Kanban System

17.5 Reducing Setup Times and Lot Sizes

17.6 Layout and Equipment

17.7 Effect on Workers

17.8 Suppliers

17.9 Implementation of JIT

17.10 Comparison of MRP and JIT

17.11 Beyond JIT to Time-Based Competition

 

E. EVALUATION CRITERIA AND MEANS:

 

The course, BAD 64041 OPERATIONS MANAGEMENT, is an integral part of the MBA program, and a very important integrative course of other managerial business disciplines. Therefore, the instructor expects from the students to demonstrate a professional attitude.  The student's performance in the course will be evaluated in both course theoretical concepts and analytical techniques by means of two exams, one written examination given during the last week of classes, the other a take-home exam that is primarily problems that can be solved via appropriate software..  These exams will consist primarily of general operations management theory and principles, or problems formulated to be solved, analyzed and interpreted using various analytical techniques discussed in the course. They typically include questions requiring definitions, short essay responses, and/or problem-solving analytical questions.  The students must demonstrate their practical understanding of theory, mathematical algorithms and other concepts related to the course. In addition to in class tests, instructors may incorporate other criteria to evaluate students.  Periodically unannounced quizzes may be given at the beginning of a class or selected homework assignments may be collected.  Four literature reviews are required to acquaint students to referred articles in their discipline that uses OM techniques.  Each review must be typed and have an electronic photocopy of the original article attached to your final report, which will consist of the following major headings: 

 

a. Citation

 

b. Research classification

 

c. Statement of problem

 

d. Types of operations management/decision science techniques

 

e. Evaluation of the usefulness of the above operations management/decision science techniques

 

f. Personal evaluation.

 

Also, computer assignments on each major analytical technique and/or quantitative topic are suggested to achieve the outcomes of the course. Computer assignments must have written evaluations along with attached computer printouts. Suggested software packages include, but not limited to, OMExcel3 and/or POM windows.

 

The following is the weighing scheme for the above-mentioned activities:
 

           

Numeric Grade Letter Grade Numeric Grade Letter Grade

 

 

Please note that student’s your overall score (OS) for the course is determined by the following equation:

OS = 0.10 (average of homework/computer/video case assignments) + 0.25 (Final Exam score) + 0.10 (Take-home Exam score) + 0.30 (Group Research Paper) + 0.20 (average of four literature reviews) + 0.05 (group presentation of operations management case from textbook).

 

Please note that timely submission of work is required.  With the exception of emergency situations, which will need to be verified, homework assignments, research projects or presentations must be done by the assigned date.

 

D. SPECIFIC CLASS POLICIES: 

 

1. Homework. There will be a number of homework assignments assigned and graded, including Excel-based quantitative assignments, given throughout the semester.  The problems and their due dates are given in class.  In general, no late homework will be accepted.  The homework will be worth 10% of your final grade for the course (2 points each).

 

2. Solutions. Solutions to problems appeared in the text book are given in the lecture notes.

 

3. Tests. There will be one closed-book test, with the final exam comprehensive in nature as well as a required take-home exam that is primarily analytical problem-solving.  During all examinations, you are allowed an 8.5” by 11” sheet (front and back) containing information of your choice.  In general, there is no make up for missing tests.  In the extreme case that a documented reason is allowed for a make-up, you must take the exam within one week of the original test date, still resulting in a 5% reduction in the total possible score.  If you reschedule the exam before the established date for the in-class exam, there will be no 5% reduction in the total possible score.

 

4. Make-ups and extra credit.  Note that there is NO extra credit for this class; so please do not ask – I have heard of every possible reason for such as policy! There are no makeup exams in this class for any reason. In emergency situations, which needs to be properly documented (i.e. doctor or employer's excuse-note); you must the exam within one week of the original test date, still resulting in a 5% reduction in the total possible score.  If you reschedule the exam before the established date for the in-class exam, there will be no 5% reduction in the total possible score.  There will be no exceptions to this policy; so please do not ask.

 

5. Withdrawal dates. In terms of course withdrawal dates, the following dates apply for Summer Semester 2012:

 

Intersession 2012 course withdrawal deadline is Friday, May 25, 2012.

Summer I 2012 course withdrawal deadline is Sunday, June 24, 2012.

Summer II 2012 course withdrawal deadline is Sunday, July 8, 2012.

Summer III 2012 course withdrawal deadline is Sunday, July 29, 2012.

 

6. Class Absences.  There are no excused absences, late arrivals, or early departures, but I appreciate notice if you know you will be missing class, arriving late or departing early (assuming that you are enrolled in the KSU main campus).

 

7. Cheating. Cheating in any form will result in an automatic grade of F for the course. Talking to neighbor in class will result in student being assigned a permanent seat away from a neighbor.

 

8. Enrollment.  Students have responsibility to ensure they are properly enrolled in classes.  Should you find an error in your class schedule, you need to correct the error with your advising office no later than Tuesday, May 15, 2012 for Intersession 2012 – Thursday, June 7 for Summer I – Sunday, June 10 for Summer II - and Thursday, July 12 for Summer III.  If registration errors are not corrected by these dates and you continue to attend and participate in classes for which you are not officially enrolled, you are advised now that you will not receive a grade at the conclusion of the semester for any class in which you are not properly registered.

 

9. Exam times.  During all examinations, you are allowed an 8.5” by 11” sheet (front and back) containing information of your choice.  The tests will consist of definitions, essays, and problems.  Examination will typically last 75 minutes.

 

10. Calculator access.  Students will need a calculator for all examinations. Your calculator should have a statistics mode to allow for the quick calculation of means, standard deviations and variances.

 

11. Final project.  The final individual project is a major undertaking and representative of a major portion of this course.  This assignment qualifies Quality Assurance as a writing intensive course.  Within the term project on some aspect of TQM, you must have a minimum of 10 sources, with no more than half of which are Internet-only sources.  The length of the paper is highly variable and dependent on the topic coverage and related factors.  In general, it is expected to be a minimum of 20 typed pages (double-spaced, 12 point).  This does not include the cover page, any appendices and the reference section.  General guidelines for the paper are provided after the class schedule.  Some examples of “average” and “below average” papers will be made available.

 

D. GENERAL UNIVERSITY POLICIES: 

 

Academic Integrity:

 

We will follow the University Policy on Academic Integrity.  Academic honesty: Cheating means to misrepresent the source, nature, or other conditions of your academic work (e.g., tests, papers, projects, assignments) so as to get undeserved credit.   In addition, it is considered to be cheating when one cooperates with another in any such misrepresentation.  The use of the intellectual property of others without giving them appropriate credit is a serious academic offense.  It is the University's policy that cheating or plagiarism result in receiving a failing grade for the work or course.  Repeat offenses may result in dismissal from the University.

 

Course Withdrawal:

 

For the Summer I Semester 2012, the course withdrawal deadline is Sunday, June 24, 2012.  Withdrawal before the deadline results in a “W” on the official transcript; after the deadline a grade must be calculated and reported.

 

Students with disabilities:

 

University policy 3342-3-01.3 requires that students with disabilities be provided reasonable accommodations to ensure their equal access to course content. If you have a documented disability and require accommodations, please contact the instructor at the beginning of the semester to make arrangements for necessary classroom adjustments. Please note, you must first verify your eligibility for these through Student Accessibility Services (contact 330-672-3391 or visit http://www.registrars.kent.edu/disability/ for more information on registration procedures).

 

Enrollment/official registration:

 

Students have responsibility to ensure they are properly enrolled in classes.  Should you find an error in your class schedule, you need to correct the error with your advising office no later than Tuesday, May 15, 2012 for Intersession 2012 – Thursday, June 7 for Summer I – Sunday, June 10 for Summer II - and Thursday, July 12 for Summer III.  If registration errors are not corrected by these dates and you continue to attend and participate in classes for which you are not officially enrolled, you are advised now that you will not receive a grade at the conclusion of the semester for any class in which you are not properly registered.

 

Graduation Information for Seniors:

 

It is your responsibility to apply for graduation before the set deadline. If you apply after the deadline you will be assessed a $200 late fee. Please see your academic advisor as soon as possible if you are uncertain as to your progress toward graduation.  The graduation application deadlines are follows:

 

May Graduation: Apply before September 15^th

August Graduation: Apply before December 15^th

December Graduation: Apply before March 15^th

 

To apply for graduation complete the following steps:

Log onto your Flashline account

1.      Click on the Student Tools tab

2.      Look in the Graduation Planning Tool Box

3.      Click on Application for Graduation

**If an error message appears, you must contact your advisor.

 

F. TEXT, READINGS AND COMPUTER SOFTWARE:

 

Textbooks:

 

Heizer, J. and Render, B. (2008/9). Principles of Operations Management, 7/8th edition.  McGraw-Hill: New York.

           

Software: Excel-Template (in student DVD ROM bundled with the textbook)

 

Suggested supplemental journals:

 

Harvard Business Review

Industrial Management

International Journal of Operations and Production Management

Journal of Quality and Technology

Journal of Operations Management

 

Suggested Software:

 

MS Word for written assignments, PowerPoint for presentations, and MS-Excel, QM for Windows, Management Scientist or any other recommended by the instructor for quantitative assignments.