Sie sind auf Seite 1von 12


Spring, 2014


Guanyi Lu


309 Bexell Hall





BA 551, BA 561, & BA 552 (may be completed concurrently)

Class sections

Section 001, 06:00 08:50 pm, Wed, Bexell 321

Office hours

12:15 13:45 am TR & by appointment. other times.

Students are welcome to visit

Reading packet

Required Harvard Business Cases are listed below. The cases are copyrighted material and each student must purchase individual copies of the reading.

Text books (all are optional)

Managing Business Process Flows. By Anapindi, Shopra, Deshmukh, Mieghem, and Zemel. 3rd edition, Prentice-Hall: Upper Saddle River, NJ (2011). ISBN-13: 978-


Factory Physics. By Hopp and Spearman. 3rd edition, Irwin: Chicago (2011). ISBN-13:


Dynamic Manufacturing. By Hayes, Wheelwrigth, and Clark. Free Press, New York (1988). ISBN-13: 978-0029142110

Class format

A mixture of lecture and the case method

Course Objectives

There are four basic objectives for this course: Aligning operations with corporate strategy, analyzing and improving processes, and managing supply chains.

Analyzing & Improving Processes. Operations often is associated with a particular functional area of a firm. Academically, operations management includes the study of managing processes. Whether a process is completing a securities transaction, performing the month-end accounting function, or scheduling an advertising campaign, the activities required form a process that can be analyzed by the tools explored in this course.

Operations Strategy. Building on earlier courses, a major component of this course will be strategic alignment. Operational decisions are not neutral with respect to strategy. Specific operational configurations benefit some strategic goals while harming others.

Managing Supply Chains. Supply chain management represents the conscious effort by firms to develop and run supply chains, rather than individual firms, in the most effective and efficient way possible. Supply chains include physical activities (such as receiving goods, production, and transportation) and informational activities (such as product design, purchasing, and planning). The term “chain” is used because these activities typically link the efforts of many different companies and functional areas. The benefits of cooperation between supply chain partners are quantified and


several methods of achieving cooperation are studied. Supply chains also frequently cross international borders. Specific problems relating to international supply chains will be discussed.

Requirements and Evaluation Criteria

Class Contribution


BP case Presentation (wk10, in class)


Final Exam (BP case report)



100 points

Grades will be assigned based on the following scale:


> 92


73 - 78



91 - 92

C minus

71 - 72



89 - 90

D plus

69 - 70


83 - 88


63 - 68



81 - 82

D minus

61 - 62



79 - 80


<= 60

Class Contribution

Most of your learning will occur in preparation for and participating in the case discussions. To enhance your preparation and learning, I strongly encourage you to use study groups to discuss the cases prior to class (each group should consist of no more than three students). To guide you in your preparation, this syllabus includes preparation questions for each case.

As noted earlier, the complexity of the case-discussion classes relies heavily on discussion learning. This process allows the cumulative insights of your colleagues to contribute to the evolution of the class’s learning. Thus, the entire class learning experience relies on each of you taking responsibility for contributing to the discussion. In order to do so, it is imperative that each of you is present and fully prepared each day.

In order to emphasize the necessity to be prepared for and to contribute to each class, class contribution will comprise a significant portion of your grade. As is the case with real world work environments, you are judged not by what you know but by what you contribute. Note that this is distinct from merely participating in the discussions. Even if you feel that you know the material, unless you share your insights with the class, I cannot adequately evaluate your preparedness and contribution. Students are never penalized for making comments which don’t appear to be the “right answer.” It is only through consideration of many diverse opinions and viewpoints that we will move toward a greater shared understanding of the multi-dimensional material which this course entails.

Each day (of our case-discussion class), I will ask one or more individuals to “open” the case with a summary of the key issues along with his or her analysis of those issues. It is important that each of you be prepared to respond to the invitation to open the discussion. In the unlikely event that you are not prepared for class, then please let me know beforehand so that I might spare both of us the


embarrassment of my calling on you. You should be able to identify the key issues, problems and opportunities facing the central case protagonists, to articulate and evaluate alternative approaches to problems, and to describe the course of action that you recommend and the reasons for yours recommendations. I may begin the discussion with one of the questions in the syllabus or with another question.

It is important to appreciate that every student is an important cog in the class discussion, and that it is equally important that each of us listen carefully to one another and attempt to build on or constructively critique prior comments. Please resist the temptation to jump to topics that are not specifically open for discussion. Some of the specific things that will have an impact on effective class contribution and on which you will be evaluated include:

Is there a willingness to take intellectual risks and test new ideas or are all comments “safe”? (For example, repetition of case facts without analysis or conclusions or repeating comments already been made by someone else do not represent intellectual risk-taking nor do they earn credit towards your class contribution evaluation.)

Is the contributor a good listener?

Are the points made relevant to the discussion? Are they linked to the comments of others and to the themes that the class is exploring together?

Do the comments add to our understanding of the situation? Are they incisive? Do they cut to the core of the problem?

Is there a willingness to challenge the ideas that are being expressed by discussants or the professor?

Does the contributor integrate material from past classes or the readings where appropriate? Do the comments reflect cumulative learning over the strategy course and the MBA curriculum or does the contributor merely consider each case in isolation?

Finally, I understand that participating in class can be an intimidating experience initially, and I will try to help you in any way that I can. I will evaluate each person’s contribution for each and every discussion class and keep a running score on class contribution. With that in mind, your commitment to contributing to this environment not only determines the success of the class, but also helps to define your grade in the course. Consequently, your attendance is vital and will affect your contribution score. While it is your business whether you want to attend class and contribute, your classmates also bear the cost when you fail to do so. Thus, in an effort to internalize the externality arising from absences from class, you will bear the cost to your contribution score when you choose to miss a class.

As required by school policy, grading will be based on relative rather than absolute standards.


BP case Presentation (MBA exit presentation)

Students need to present their study of the BP case twice in groups. Group assignments are listed in the syllabus. They first present in week eight as part of the MBA exit examination. Feedback will be provided by the faculty advisory team for further improvement. They will then present the same case again in class in week 10. The credit the students earned in week 10 presentation will be used

to calculate their final grade of this course (i.e., BA 554).

Final Exam (BP case report)

The final exam will be given during the university’s scheduled exam period. Each group will turn in

a 40-page written report at the end of the term (including tables, figures, appendixes, etc.).

Specifically, there will be two deliverables due in week 3 and week 6 respectively. Faculty advisory committee will review these deliverables and provide comments/suggestions. Students must incorporate the feedback into their final 40-page report before final submission. I reserve the right to add additional written assignments during the term, particularly if I feel that the class is failing to prepare adequately for case discussions.

Academic Integrity

Upon accepting admission to Oregon State University, a student immediately assumes a commitment to accept responsibility for learning and to follow the philosophy and rules of the Honor System at OSU. Failure to abide by the university’s rules on academic honesty will result in failing the class. Students should be aware of what constitutes cheating as well as plagiarism. See details at:

Students with Disabilities

The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities.

Accommodations are collaborative efforts between students, faculty and Disability Access Services (DAS). Students with accommodations approved through DAS are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through DAS should contact DAS immediately at 737-4098.


Course Schedule (subject to change)




Apr-02 (wk1)

Course Overview, Brief of Syllabus Lecture: Process Analysis-1


Apr-09 (wk2)

Lecture: Process Analysis-2


Apr-16 (wk3)

Process Analysis. Discussion Case:


Donner Company

BP case deliverable 1 due

Apr-23 (wk4)

Lecture: Quality Management and SPC


Apr-30 (wk5)

Process Improvement. Discussion Case:


Process control at Polaroid (A)

May-07 (wk6)

Lecture: Managing Uncertainty

BP case deliverable 2 due


Operations Strategy. Discussion Case:


May-14 (wk7)

Display Technologies, Inc. (Abridged)

May-21 (wk8)

Lecture: Forecasting, Planning, and Matching of Demand with Supply

MBA exit examination


Supply Chain Management. Discussion Case:


May-28 (wk9)

Leitax (A)

Jun-04 (wk10)

Final presentation of BP case


Time and Place TBD

Final Exam

BP case final report due


Assigned Student Groups (BP case)


Student Names

Faulty Advisory Committee

Group 1

De Oliveira, Rodolfo Henriques Zhang, Pei Shen, Yiwen Zhang, Ling

Zhaohui Wu (Chair) Keith Leavitt Peter Frischmann

Group 2

Narendra, Vivek

Ma, Zhiyao

Li, Xiaocheng

Group 3

Ahishalioglu, Ahmet Berk Gao, Yang He, Letian Li, Ang

Yusoon Kim (Chair) Jim Moran Erik Larson

Group 4

Hemmatian, Iman

Kong, Lingbo

Xie, Danli

Group 5

Chandler, Kaitlyn

Guanyi Lu (Chair) Ping Hsieh Marina Puzakova

Yang, Luyang

Xiao, Xiong

Shi, Xiaole


Group 6

Hudson, Alicia N Kasama, Ryota Xu, Ying Wu, Dan

Group 7

Koch, Defne Cakin Yuan, Yuxi Liang, Zifeng Hai, Sang

Randal Smith (Chair) Nancy King Richard Martell

Group 8

Smith, Rachel Michelle Ye, Chujun Ma, Yifu




Process Analysis


Donner Company (HBS 9-689-030)

Optional Reading:

Process Fundamentals (HBS 696023)

Preparation Questions:

1. What is the normal process flow of the production system at Donner? Draw a process flow


2. What is Donner's "information system"? How does information from the customer get to the right


3. What orders would you schedule on the Micronic Jr. CNC drill? On the CNC router?

4. Assume a normal process flow. What is the standard production time required to produce an

order of 8 circuit boards (one panel)? Of 40 circuit boards? Of 200 circuit boards? Of 800 circuit


5. What is the capacity of the electroplate operation?

6. During September 1987, what was the capacity utilization (capacity actually used divided by the

total capacity available) of operations such as soldermask, electroplate, metallize, and drill?

7. What are the discernible problems facing Donner?

8. What specific action(s) should Mr. Plummer take to solve these problems? Make explicit recommendations and, if possible, justify the required investment.



Process Improvements


Process control at Polaroid (A) (HBS 9-693-047)

Optional Reading:

Constructing and Using Process Control Charts (HBS 686118) Process capability by DRM Associates

Preparation Questions:

While the elaboration of the statistical process control charts is intricate and satisfying, make sure that you don’t spend all your energy developing the charts. This is the first case outside the process analysis module and it begins to broaden our focus. Please consider in your analysis the strategic and long term implications of SPC for Polaroid.

In the mid 1980s, one of Polaroid's instant film plants is reassessing its traditional approach to quality and is trying to move itself onto a new improvement path. Management must decide what recently gathered data reveal about process control and what actions are appropriate. The reading provides an introduction to Statistical Process Control (SPC). (Note: polaroid.xls contains data in case exhibits 1, 3, 5 and 6.)

1. What is the magnitude of the cost of the quality problem at the R2 plant? How effective were its

past procedures for quality management?

2. What are the goals of the Greenlight project? How are these goals to be attained?

3. Using the data in the exhibits and the note on process control charts, construct and analyze the

appropriate SPC charts. What conclusions should Rolfs draw?

4. What recommendations would you make to Rolfs in order to address both near- and longer-term


Process capability by DRM Associates :



Operations Strategy


Display Technologies, Inc. (Abridged) (HBS 9-699-006)

Preparation Questions:

1. What are DTI’s strengths and weaknesses? What does it deliver to its customers that Sharp and other competitors do not?

2. What must DTI do to be successful? Would these be different if DTI were not a joint venture of

the two giants, IBM and Toshiba? What does it take to be outstanding in the flat panel display


3. What principles and concepts does one apply to improving a complex production system such as

flat panel process technology?

4. What should Shima-san do? How will his previous experience shape his decision?



Supply Chain Management


Leitax (A) (HBS 9-606-002)

Preparation Questions:

1. Based on the description of planning system before the Redesign Project which function or

individuals should be held responsible for the planning problems in FY 2002? In FY 2004?

2. What is your assessment of the consensus forecasting process?

3. Based on the description in the text and the evidence in Exhibits 6 and 9, what went wrong with

the SF6000 forecast?

4. What are the core elements that Fowler and McMillan should strive to maintain?

5. How would you recommend the process be improved if at all?


Appendix: A brief of the Case Method: Why we rely on discussion learning 1

A significant amount of our class time will be spent discussing business cases. Why do we rely on

the case method so extensively and how do these discussions enhance our learning? The case-study method brings a “real world” approach to business education in at least three important ways. First, case discussions generate a dynamic process of vigorous questioning and responding, examination and debate among students and discussion leader. Because strategy issues are often characterized by ambiguity, complexity or uncertainty, this course is more about asking the right questions than it is about knowing the right answers. Rather than simply lecture about the current state of “best practices,” we recognize that theories change over time but reasoning skills survive. So the case method helps students to refine their skills as insightful questioners, rather than just good answer- finders. In this model of learning, it is the journey more than the destination that matters. In addition, discussion learning requires all students to participate actively in the learning experience. The MBA degree is about more than just acquiring a tool box of analytical skills. It is also about

developing the ability to contribute to the group so that we expand the boundaries of everyone’s

learning. Just as in management, there is no formula that you can follow for every case. Nevertheless, over the course of the academic quarter, students gradually build on a combination of theory and analysis as well as judgment and experience to acquire important skills that the general manager needs. The case method requires a high level of student commitment where students personally engage the problem and “own” the solution. Consequently, the case method is inherently

a student-oriented process. Walter Wriston has said, “Good judgment comes from experience.

Experience comes from bad judgment.” As in the “real world,” the case method replicates the trial- and-error experience of seasoned managers, thereby deepening judgment. It also does so in the low risk environment of the classroom where career casualties are not at stake.

Second, the case method trains students to think as administrators (rather than as scholars), so that they: (1) see a problem looking for solutions rather than a concept looking for applications, (2) focus on defining and prioritizing a maize of tangled problems and determining which one(s) to attack with the limited time and resources available, (3) appreciate differing agendas and points of view, and (4) take action, not just report findings.

Third, by linking analysis with individual action, the case method encourages moral awareness by requiring students to take a stand. The give-and-take of case discussion often brings to the surface subtle ethical dilemmas that might otherwise be missed. The case method helps students learn to assess and embrace the tradeoffs among different stakeholders’ interests. The case method requires students to use all of their knowledge, skills and experience to respond in real time to the questions raised in class and to effectively communicate their ideas to classmates to create a greater shared understanding of the problem at hand. Thus, students also become the teachers as well as learners.

In sum, we teach with case studies because the method embodies important values of professional

education. The case method is not simply a technique; it is a rich philosophy about judgment, analysis, action and learning. (The preceding was adapted from an article by Robert F. Bruner)

While our applications will emphasize exercise of judgment, by no means is this course “theory free.” We will learn to break down complex problems into manageable analytical issues where we can then apply a rigorous set of theoretical tools. The analytical approaches in our “strategy tool kit”

1 This section and class contribution were mainly adapted from Robert F. Bruner and Jay Dial.


will be covered in the required readings and lectures prior to each case. These readings have been carefully selected to convey often complex topics in a concise, understandable manner. In general, I have assigned managerially-oriented readings and spared you the pain of reading pointy-headed, scholarly-type articles. Since these readings articulate much of the theoretical content of the course, they will be crucial to your comprehension of our course concepts. It is extremely important that you read, study and discuss the articles with each other when assigned so that you will be able to apply the concepts to our case discussions.

The key requirement of this course is that you THINK. This course requires that you synthesize material that you have learned in prior classes in your business education in conjunction with new concepts we will introduce. I will ask that you add a dose of common sense and filter these ideas through your own experiences and “world view.” We will reach consensus on some issues, yet many among you will have differing interpretations as we proceed through the course. This is the nature of strategy and policy issues. You may find yourself occasionally frustrated by the ambiguity and the difficulty of assimilating conflicting points of view. Welcome to real life!

Our challenge in this course will be to integrate your learning from other courses in a synthesis with new material introduced here to see how operations managers develop functional strategies into overall business and corporate strategies and to see how their chosen strategies are implemented. While this may not happen overnight, over the course of the quarter, you can expect to begin to see how the “pieces fit together.” You will be better prepared to enhance your careers with a more comprehensive vision of the firm as a whole and your role in it, hopefully.