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Operations Management

Course Plan SLOP 501

Operations Management
Class of 2014/Section-E

Instructor: J. PRINCE VIJAI


COURSE DESCRIPTION This course helps students understand, appreciate, and apply concepts and contemporary practices of managing operations in manufacturing as well as service sectors. Students will learn several analytical techniques and frameworks used to overcome the challenges faced in integration of numerous activities and processes to manufacture products and deliver services competitively. Operations Management is a Theory of Action. Many a plan runs aground due to poor execution. Thus, Strategy, Processes Design & Selection, Planning & Control, and Scheduling topics help managers to improve competitive edge by an effective way of designing & managing manufacturing/service operations.

TEXT BOOK Operations & Supply Management, by Richard B. Chase, Ravi Shankar, F. Roberts Jacobs, and Nicholas J. Aquilano. Tata McGraw-Hill Education, New Delhi. 2010. 12th Edition (Special Indian Edition). REFERENCE BOOKS 1. Operations management - Theory and Practice, B. Mahadevan, Pearson Education. New Delhi. 2010. 2nd Edition. 2. Quantitative Analysis for Management, Barry Render, Ralph M. Stair, and Michael E. Hanna. Prentice Hall Publication, New Delhi. 2008. 9th Edition. (For Linear Programming and Transportation Problems) 3. Production and Operations Management, Everette E. Adam and Ronald J. Ebert. Prentice Hall of India. New Delhi. 2004. 5th Edition. 4. Operations Management Strategy & Analysis, Lee J. Krajweski and Larry P. Ritzman. Person Education. New Delhi. 2002. 6th Edition. 5. Operations Management An Integrated Goods and Services Approach, James R. Evans and David A. Collier, Thomson Publication, 2007. 6. Operations Management, Norman Gaither and Greg Frazier, Cengage Learning Publications, 2004, 9th Edition. 7. Operations Management William J. Stevenson, Tata McGraw-Hill Education, New Delhi. 2009, 9th Edition (Special Indian Edition).
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EVALUATION The students will be evaluated continuously on the basis of the following components across all the sessions. Sl. No. 1 2 3 4 5 6 Components Class Participation - 1 Class Participation - 2 Class Participation - 3 Non-Class Participation Mid-Term Exam End-Term Exam Weightage 5% 10% 10% 15% 20% 40% Due 11th Session 22nd Session 33rd Session 4th/28th Session 17th Session

1. CLASS PARTICIPATION: Your contributions are necessary to create and enhance a positive learning environment for this course. To create this environment, i-pad/laptop should only be used in class for referring prescribed cases or exercises because other use only creates distraction. Grading will be based on the quality and impact of your contributions, not on quantity (although a minimum amount of the latter is necessary to deliver on the former.) VOLUNTARY: In-class contribution will consist of voluntary contributions and regular cold calls. Please leave your name-card up for the entire duration of each session and keep the same seat for the duration of the semester. We encourage you to be better prepared for class and as a result improve the overall class discussion. A thorough preparation of the assigned reading materials (includes text book chapter and prescribed case for that session) is all that is necessary for such leadoff questions. If you feel uncomfortable with being called on in class please let me know in advance. ATTENDANCE AND CLASSROOM ETIQUETTE: While I hope you will find it valuable to attend class and will decide to do so, maintaining the required percent of attendance for each class participation components is mandatory. There is no penalty for missing classes, except that it will of course reduce your opportunities for earning class participation points. When you attend, you will be expected to fully follow the principles of the IBS code
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of classroom etiquette. In addition, to maintain a positive learning environment, the use of your i-pad/laptop in the classroom is for only referring prescribed cases or exercises.

2. NON-CLASS PARTICIPATION: A group should identify a topic from the course syllabus in order to visit any Industry/Warehouse/Service/Retail Facility as well as prepare & present a report about it. The potential topic has to be finalized by the end of 4th session. Before the end of 28th session each group should submit its own report about the focused visit and further appear for micro-presentation/viva-voce. GROUPS should have five students, each of them bringing different strengths to the table. To increase the learning from the skills and knowledge that each person brings to the group, groups must be balanced. For example, groups must balance in experience as well as geographical origins to benefit from cross-learning and multi-disciplinary experiences. You will have an opportunity to form your own groups during the first class. GUIDELINES FOR THE REPORT SUBMISSION/MICRO-PRESENTATION will be informed to you in due course of time. If any individual has not contributed for a particular visit/report, she/he should not append her/his name to the report. It is the groups responsibility to ensure that this happens.

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Session # Text Book1 Chapter Reading


Detailed Syllabus


PART I: UNDERSTANDING OPEERATIONS MANAGEMENT The Field of Operations Management, Supply Chain transformation Processes, Differences between Services and Goods, Historical Development of Operations and Supply Management, Current Issues in Operations Management Supply Chain Strategy, Measuring Supply Chain Performance, Supply Chain Design Strategy, Service Supply Chains, Outsourcing, Design for Logistics, Value Density, Global Sourcing, Sourcing/Purchasing-System Design Matrix, Mass Customization Operations Strategy, Strategic Fit: Fitting Operational Activities to Strategy, A Framework for Operations and Supply Strategy, Productivity Measurement

Operations Management

Chapter 1

Supply Chain Strategy

ZARAs Supply Chain Management Practices

Chapter 10

Operations Strategy

Operations Management at Southwest Airlines

Chapter 2

PART II: PROCESSES SELECTION & DESIGN Process Analysis, Process Flowcharting, Types of Processes, Measuring Process Performance, Process Analysis Examples, Process Throughput Time Reduction Crunching Munch Time a Little. Takira Motors: Creating Assembly and Process Chart

Process Analysis


Chapter 6

Operations & Supply Management, by Richard B. Chase, Ravi Shankar, F. Roberts Jacobs, and Nicholas J. Aquilano. Tata McGraw-Hill Education, New Delhi. 2010. 12th Edition (Special Indian Edition). Students may follow chapter titles as per the syllabus.

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Manufacturing Processes

How Production Processes are Organized, Break-even Analysis, Manufacturing Process Flow Diagram

Made in India Travelsafe Manufacturing Company (TMC) Load Matrix (Unraveling Jumbled Flows with Relative Station Proximity)

Chapter 7

Facility Layout


Basic Production Layout Formats, Workcenters, Assembly Lines, Cells, Project Layouts, Retail Service Layout, Office Layout The Nature of Services, An Operational Classification of Services, Designing Service Organizations, Structuring the Service Encounter: Service-System Design Matrix, Service Blueprinting and Fail-Safing, Three Contrasting Service Designs, Managing Customer-introduced Variability, Applying Behavioral Science to Service Encounters, Service Guarantees as Design Drivers

Chapter 7A

Service Processes

9 & 10

Spice Jet: Dedicated to Serve Customers with Excellence

Chapter 8

Waiting Line Analysis


Economics of the Waiting Line Problem, The Queuing System, Waiting Line Model (M/M/1 Model)

Harish Automobile Repair Shop: A Case of Queuing Theory

Chapter 8A & Chapter 14 of Quantitative Analysis for Mgt. by Render & Stair

Product & Service Design

12 & 13

The Product Design Process, The Product Development Process, Designing for Customer Quality Function Deployment, Value Analysis, Value Engineering, Designing Products for Manufacture and Assembly, Designing Service Products, Measuring Product Development Performance

Ford Motor Company in India: Developing Ford Figo The Tata Nano Project - Making of the World's Cheapest Car

Chapter 4

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PART III: PLANNING & CONTROLING OF OPERATIONS Logistics & Facility Location Logistics, Decisions related to Logistics, Issues in Facility Location, Plant Location Methods - Factor Rating Systems, Centroid Method, Locating Service Facilities Transportation Methods North-West Corner Method, Least Cost Method, Vogels Approximation Method, Stepping Stone Method Formulation solution through Linear Programming using Excel Mid-Term Exam Capacity Management in Operations, Capacity Planning Concepts, Capacity Planning, Planning Service Capacity Introduction, Overview of Sales and Operations Planning Activities, The Aggregate Operations Plan, Aggregate Planning Techniques Definition of Inventory, Purposes of Inventory, Inventory Costs, Independent versus Dependent Demand, Inventory Systems, Fixed order Quantity Models, Fixed-time Period Models, Selective Control Systems including ABC Inventory Planning, Optional Replenishment System, Two-Bin System, One-Bin System Capacity Planning at General Motors India Locating and Laying Out the Fast Food Business (McDonalds Case Study) Utilization of Transportation Method in Sandino Furniture


Chapter 11

Transportation Problem


Chapter 10 of Quantitative Analysis for Mgt. by Render & Stair Chapter 2A

Product Mix Problem


Alexander Machine Company

Mid-Term Exam


Capacity Planning


Chapter 5

Aggregate Sales & Operations Planning


Bake a Cake

Chapter 16

Inventory Control

20, 21 & 22

Inventory Management through ABC Analysis - A Case Study for Super Sounds Inc.

Chapter 17

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Material Requirements Planning

23 & 24

Master Production Scheduling, Where MRP Can Be Used, Material Requirements Planning System Structure, MRP Examples Manufacturing Execution Systems, Nature and Importance of Work Centres, Priority Rules and Techniques, Shop-floor Control, Personnel Scheduling in Services

Material Requirements at Kings Furniture

Chapter 18


25 & 26

Keep Patients Waiting? Not in My Office (Text Book Case)

Chapter 19

PART IV: PUTTING-IT-ALL-TOGETHER Total Quality Management, Quality Specification and Quality Costs, Six-Sigma Quality, The Shingo System: Fail-Safe Design, ISO 9000 and ISO 14000, External Benchmarking for Quality Improvement Toyota Motor Company: Losing its Quality Edge? Six Sigma at GE Cost of Quality - The Case of Suzlons Blade Recall Toyotas JIT Revolution Lean Manufacturing Initiatives at Boeing Harley-Davidson's Just-in-Time (JIT) Journey ISRO: Managing Programs and Projects Sakhalin-1 Project: Delivering Excellence in Project Execution Menlo Innovations: A New Approach to Workplace & Project Management

Quality Management

27, 28 & 29

Chapter 9

JIT & Lean Operations

30 & 31

Lean Logic, The Toyota Production System, Lean Implementation Requirements, Lean in Services

Chapter 12

Project Management

32 & 33

Introduction, Structuring Projects, Work Breakdown Structure, Project Control Charts, Network Planning Models, Managing Resources

Chapter 3

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