Course SCM 2160 Supply Chain and Operations Management

Fall Term 2013

Section A03 Tu/Th at 11:30 a.m. in Room 115 Drake Centre
Section A04 Tu/Th at 1:00 p.m. in Room 117 Drake Centre
Glenn Ismond
Office Hours: 8:00 a.m. to 11:00 a.m. on Tu/Th
Office: TBA Drake Centre
E-mail Address:
glenn.ismond@ad.umanitoba.ca
Telephone: 474 - TBA
INTRODUCTION
Operations Management concerns the management of the value-added tasks that transform inputs
into outputs. An Operations Manager is principally concerned with the design, planning,
direction, and control of facilities, processes, and activities required to transform material, labour,
capital, energy, and skills into goods and services, henceforth called products.
COURSE OBJECTIVES
The major objective of this course is to introduce you to the fundamental concepts of Operations
Management from a general management perspective.
Our discussions will include references to some broader issues facing businesses in the
st
21 Century, namely ethics and corporate social responsibility. You will have opportunities to
enhance your skills in critical thinking, quantitative analysis, communication (written and
spoken), teamwork and leadership.
At the conclusion of this course, you should appreciate that Operations Management is
primarily a management discipline that is strategically important for survival in todays very
competitive environment.
COURSE MATERIAL
1. Jacobs, F. Robert, Chase, Richard B., Balakrishnan, Jaydeep, and Snider, Brent. (2013).
Operations and Supply Chain Management: The Core, Second Canadian Edition, Toronto, McGrawHill Ryerson.
2. Package of Cases and readings, mainly from the Harvard Business School or the Richard Ivey
School of Business in the Bookstore. Be sure to purchase the Ismond A03/A04 package.
3. Class Hand-outs
4. Access Code for Littlefield Technology Game available from the BookStore.
METHODS OF INSTRUCTION
Case Studies The primary method of instruction will be the analysis and discussion of case
studies. This requires active student participation.
Each of the teaching case studies for this course represents an Operations Management
situation in which a decision must be made in light of a number of tradeoffs and alternatives.
Class time on Case Days will be devoted to discussing the situation, the managerial and
technical implications of various options, and the action to be taken to implement the preferred
options. There is no one right answer to a case, but there are definitely approaches that address
the issues and recognize the tradeoffs involved. Thus, the lack of a single correct answer does not
imply that all suggestions are equally valid.
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Other Methods While discussing cases will be the most common method of instruction, other
activities will be employed from time to time. Examples include but are not limited to: the
discussion of textbook material, hand-out articles, exercises, and student presentations.
PERFORMANCE EVALUATION
Class Participation ..........................
Mini-Tests (two at 10 marks each) ......
Littlefield Technology Simulation ....
Formal Group Presentation...............
Final Examination ............................
Total.................

30%
20%
15%
10%
25%
100%

Participation Participation is very important. I expect you to be prepared for each and every
class discussion, so that you can be an active participant in advancing the learning of the class.
Participation means making a useful contribution in a fair number of classes during the term. On
any given day, I may call upon you without any notice, AND you can indicate your willingness to
join the discussion by raising your hand. On those certain rare occasions when you may not be
prepared to participate in the discussion PLEASE let me know by voice-mail or E-mail, so that
neither you nor I are embarrassed in class. I will simply expect you to make your contribution in
other discussion sessions.
I define a useful contribution as any contribution that pushes the understanding of the
class forward. You could argue your point of view during a case discussion, ask a relevant
question, suggest an alternative viewpoint, and/or redirect our attention to another topic which
had not been adequately covered.
You do not have to be a top participant in every class, nor do you have to have the right
answer when you do participate. Do not be afraid to speak up simply because you think your
ideas might be challenged; this is the place for such challenges so long as they are made politely.
Please focus on what was said, and do not attack the speaker. The Participation Grade is meant to
be a stimulant to discussion, not a deterrent.
I judge Participation for each session on a scale of 0 to 4. A 0 indicates no contribution,
and you can earn a 0 by being silent or absent (more information on this topic later). I expect
you to attend every class, but being here is not the same thing as Participation. If your
contribution only consists of introducing case facts, it is probably worth a 1. When you
combine miscellaneous case facts into new data or you begin to make inferences, you will
probably earn a 2or a 3. A 4 is an outstanding contribution, recognized by everyone
present.
Negative assessments of Participation will be made in the following instances (but are not
restricted to): repeatedly arriving late to class, poor attendance, failure to notify your instructor of
your absence and disruptive activities (associated with the use of electronic devices) during class.
At the end of the course, I will determine overall Participation by assigning grades to the best and
the least good participants, and scaling others accordingly. Note: This makes it possible for
everyone to do well in Participation.

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Mini-tests. Mini-tests are multiple-choice tests, based on assigned textbook material. Each mini-test
will be administered twice, first individually and then as a group exercise. It is important to master the
course content as soon as possible but scarce class time is best spent on other activities. Mini-tests are
used to help you "get ahead" with the course content so you will be able to make more informed
contributions in other class activities. The mini-test procedure is a good, well-developed and welltested method for doing this. The approach serves two purposes. First, it encourages you to be
prepared to do your fair share in upcoming sessions. Second, it should raise your group's level of
understanding of the assigned textbook material beyond the level of any individual group member.
More detail about the mini-test requirements and procedures will be specified in a separate document.

Littlefield Technology Simulation: This is a web-based game played by unique teams, as

opposed to your Study Group. YOU WILL PLAY TWO GAMES the first to become
acquainted with the game and what actions you are able to control, and your performance within
the second game will earn team members with 15% of your final grade in the course.
Each game will be made available to you in suspended mode prior to your team
assuming control of the simulation. Your team should use this time to become familiar with the
game format, to determine your strategy, and to prepare to play the game as soon as it available.
The game takes place outside of class time, and each game will last for approximately a week,
plus the time to write a team report of your actions.
You will need to be in regular contact with your team members during the game. You
have to decide as a team when to act and what actions you need to take at that point in the game.
A set of hand-outs will provide more details prior to the start of each game.
Final Examination. The Final Examination will be designed to test your knowledge of the assigned
readings, cases, and text material. It will consist of various types of questions (e.g., case scenario /
vignette, essay style, short answer, multiple-choice, problems). The nature of the exam will be
discussed in class, as we approach exam time. The only electronic device allowed will be a basic
(non-text- capable) calculator and the only other material allowed will be a hard-copy Englishlanguage dictionary. Any other items require your instructor's permission well before the exam.
This course is not quantitatively oriented. Thus, the Final Examination will not emphasize
problem sets, mathematics, or quantitative techniques. Nevertheless, you will be responsible for
mastering a limited set of quantitative approaches. In particular, examination topics may include
quantitative problems associated with (1) process analysis, capacity, and bottlenecks, (2) Statistical
Process Control, (3) Material Requirements Planning, and (4) Project Management / Critical Path
Analysis.
Also, please note the following statement from the University of Manitoba, Undergraduate Calendar,
Academic Schedule, Section 6:
December 6 18, 2013 is the Final Examination Period for most faculties and schools.
Students must remain available until all examination obligations have been fulfilled.

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Other Information and Requirements:

Attendance We start on time and I expect you to attend each and every session. If you cannot
attend, please phone me or E-mail me in advance. My phone has Voice Mail, so please use it.
You do not need to tell me why you are not attending; I will simply expect your contribution on
other days. An Attendance - Participation Register will be maintained by the class.

Class Seating and Name Cards

Please choose a permanent seat at the beginning of next
class. I will also expect you to bring your name cards to each session. I need to learn your names
quickly, and these arrangements help me to do so.
Study Groups
Today, you shall form a Study Group of six persons (maximum). Please
submit a clearly printed copy of the names to me. Please indicate where and when you propose to
meet. This will facilitate the topping up of Study Groups next class.
Anyone not in a Study Group by next class shall be assigned arbitrarily to a Study Group.
The purpose of these groups is to help you learn, by discussing each case with others.
Operations Visits
For your Class Presentation at the end of the Term, your study group will
be expected to visit an operation in the Winnipeg area. Your Study Group will make all
arrangements (including choosing the company and lining up contacts). At the conclusion of the
semester, your Study Group will make a formal presentation to the class. (10%)
Once the Registration Revision Period (September 5 18) has ended, I will ask you to
sign a Release and Indemnification Form concerning these site visits. If you choose not to sign
the Release and Indemnification Form you will be assigned an individual campus-based Library
Research Project instead. You will make a formal presentation to the class concerning your
Research Project in order to earn the ten marks set aside for the Formal Class Presentations.
Please note that attending a tour is not a valid excuse for missing activities in/for other
courses.
Additional Operations and Supply Chain Management information: The student CD-ROM
that accompanies the textbook contains numerous links and other sources of information. I will
be assigning very little if anything from the CD-ROM, but please explore it.

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Schedule - Fall Term 2013 Classes on Monday and Wednesday

Introduction
5 September
Introduction to Course - Administrivia
10 September
Discussion: How to Prepare for a Case Discussion
12 September
Discussion: What is Operations and Supply Chain Management?
Capacity and Process Flow
17 September
Case: Process Fundamentals & Case: Capacity Analysis: Sample Problem
18 September
Registration Revision Period Ends
19 September Discussion: Synchronous Operations
24 September Case: National Cranberry Cooperative (Abridged)
26 September Case: National Cranberry Cooperative (Abridged)
Quality Management
1 October
Mini-Test One
3 October
Exercise: Quality Tools
8 October
Case: Deutsche Allgemeinversicherung
10 October
Case: Cranston Nissan
Planning and Control
15 October
Case: MacPherson Refrigeration Limited
17 October
Case: Illustrious Corporation
22 October
Discussion: Toyota Production System / Lean (JIT) Operations
24 October
Case: McLeod Motors
29 October
Mini-Test Two
Supply Chain Management
31 October
Case: The ITC e-Choupal Initiative
5 November Case: Zara: IT for Fast Fashion
Project Management
7 November Exercise: Project Management
12 November Case: IDEO Product Development
13 November Voluntary Withdrawal Deadline for Term One Courses
Operations Strategy
14 November Case: Chaircraft Corporation
19 November Case: Microlite S.A.: The Pan-Orient Decision
21 November Debriefing: Littlefield Game with the Course Evaluation (during last 20 minutes)
Group Presentations of your Second Site Visit
26 November Formal Study Group Presentations
28 November Formal Study Group Presentations
3December Formal Study Group Presentations
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DAILY ASSIGNMENTS For each class discussion, you have been assigned some Questions
for Consideration found on Pages Six to Eleven. These questions are for guidance only, to help
you focus on certain aspects of a particular case/reading. As a minimum, you should be prepared
to address each question in class.
Each Case Discussion will normally follow a sequence of:
1. Situation Analysis/Issues
2. Criteria
3. Alternatives (note the s)
4. Mathematical Analysis (number crunching) 5. Discussion (argument) 6. Decision
7. Plan of Action (include Immediate, Short-term, and Long-term Plans)
8. Executive Summary (Decision, Costs, Benefits, and Implementation Hurdles/Concerns)
Suggestion: Put yourself in the position of the Decision-Maker. The real issue is what
should be done to resolve the current situation? Your decision should be the logical product of a
thorough Analysis and a logical Discussion.
In Chronological Order, the cases/readings to be discussed this term are:
How to Prepare for a Case Discussion
Reading: None.
Questions for Consideration:
1. What is the total annual cost for each supplier?
2. What additional criteria should be considered before a decision can be made?
3. As the decision-maker, what do you propose to do? Why is it the best course of action?
What is Operations and Supply Chain Management (OSPM)?
Reading: Jacobs et al., Chapter One pages 2 23, and Chapter Seven pages 165 - 181.
Questions for Consideration:
1. What is OSCMt? How does it differ from the other functional areas (Marketing, Finance)?
How does it apply in the Service Sector?
2. What are the differences between Manufacturing and Service Organizations?
3. What types of decisions must be made by Operations Managers?
4. What are some of the historical developments and recent changes / challenges in OSCM?
5. What might we expect to see in the future?
6. What messages are inherent in the Service-System Design Matrix?
7. What messages are inherent in the Product-Process Matrix?
Process Fundamentals and Capacity Analysis: Sample Questions
Reading: Jacobs et al., Chapter Six pages 140 164.
Questions for Consideration:
1. Study the case materials thoroughly and make certain that you understand the concepts,
examples, and terminology.
2. Be prepared to explain the concepts to the class, or apply the concepts to similar material given
to you in class, i.e., an in-class exercise.
National Cranberry Cooperative (Abridged) Parts A and B
Reading: Jacobs et al., Chapter Six pages 140 - 164.
Questions for Consideration:
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Part A: 1. Prepare a detailed flow diagram showing how "process fruit" is processed at RP1. Be sure
to distinguish between wet and dry berries.
2. Identify the capacities at each stage of the process. Please do your analysis in barrels and barrels per
hour. (Note: bbls. = barrels)
3. What are the current bottlenecks and how might they change?
Part B: 1. As Mel O'Brien, what facility changes, if any, would you propose for RP1 for the 1981
season? What criteria did you employ to make your decision?
2. How would you implement your plan?

Synchronous Operations
Reading: Chapters 13, 14, and 15 of Goldratt, E. M. & Cox, J. 1992. The Goal: A Process of
Ongoing Improvement, 2nd Revised Edition. Great Barrington, MA: North River Press.
Questions for Consideration:
1. What are the analogies between the Boy Scout Hike and a typical manufacturing plant?
2. What does Alex realize about statistical fluctuations and dependent events? How does this
assist him to better understand his plant?
3. What does Alex learn about a balanced plant? How does this help him at work?
4. What other lessons did Alex learn while on the hike? How will these lessons help him to
become a better manager?
5. What performance measures are appropriate at the operational level? Explain.
6. Explain the drum, buffer, rope method of control.
Note: In the Goldratt material, throughput refers to throughput rate (which we have been calling
capacity or output rate), NOT throughput time (which we have been calling manufacturing lead
time).
What do the Quality Tools do?
Reading: Jacobs et al., Chapter Eight pages 204 - 228.
Questions for Consideration:
1. Who are recognized as Quality Gurus? What did each guru contribute to our understanding
of Quality?
2. How is Quality defined in terms of - goods? - services?
3. What are the four categories that comprise the cost of quality?
4. What is Total Quality Management? What are the major elements of such a program?
5. What does ISO Certification entail? What is the rationale behind such a program?
6. What are the basic quality control tools? What purpose does each tool perform?
Instructions: Be prepared to do an in-class exercise based on the assigned reading.

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Deutsche Allgemeinversicherung
Additional Reading: Study Jacobs et al., Chapter Eight pages 229 - 255.
Questions for Consideration:
1. Why is DAV using Statistical Process Control (SPC)? What are the primary challenges in
applying SPC to a service industry compared with manufacturing?
2. If you were to explain (in about thirty minutes) the concept of a p-chart to, say, a group of bank
tellers who have little background in SPC, how would you do it?
3. How large should each sample be for the experiment described by Schoss and Kluck?
4. The first twelve weeks of the data in Exhibit 4 represent the diagnostic period for the Policy
Extension Group. What are the 3-sigma control limits for the process? In which of the
subsequent weeks is the process out of control (if any)?
5. As Annette Kluck, what are your specific implementation plans? How do you intend to begin
improving the performance of the operation?
Cranston Nissan
Additional Reading: Study Jacobs et al., Chapter Eight pages 204 - 255.
Questions for Consideration:
Answer the following questions from the perspective of TQM.
1. Categorize the quality problems in this case.
2. What are the probable causes of so many mishaps?
3. Prepare a cause-and-effect chart for "failure to remedy repair problem to customer satisfaction.'
4. a) What specific actions should Jackson take immediately?
b) What should some of his longer-term goals be?
MacPherson Refrigeration Limited
Additional Reading: Study Jacobs et al., Chapter Nine pages 258 - 287.
Questions for Consideration:
1. What are the relevant tradeoffs at MacPherson?
2. Construct an aggregate plan better than the ones shown in the case.
3. What criteria and assumptions did you use?
4. How flexible is your plan?
5. How would your plan change if MacPherson produced-to-order rather than produced-to-stock?
6. What effect does the timing of peaks have?
Note: Before constructing your aggregate plan, please ensure that you adjust the data in the case
according to any instructions handed out for your section. For your convenience, a spreadsheet will
be made available to help with your trial-and-error aggregate planning attempts. You are not
required to use the spreadsheet. It just makes life easier.

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Illustrious Corporation
Reading: Jacobs et al, Chapter Eleven pages 332 - 357.
Questions for Consideration:
1. What is the difference between dependent demand and independent demand?
2. As Nancy Barfield, prepare the operating plan for the next ten weeks. Fill in the forms
provided in the Reserve materials, and use the lot-for-lot ordering rule.
3. What problems did you discover? What course of action do you recommend? Why?
4. What is closed-loop MRP? What is required to close the loop?
5. Could MRP have been useful in any of the companies that we have discussed?
Toyota Production System / Lean (JIT) Operations
Reading: Jacobs et al., Chapter Twelve pages 358 388.
Questions for Consideration:
1. Prepare for a discussion about the Toyota Production System (often called just-in-time production,
lean operations, etc).
2. Which aspects of this system are "Japanese" and which could be applied in other industrial settings?
That is, what is so Japanese about Japanese approaches to manufacturing?
3. What explains the success the Japanese have had with their approaches to production?
4. How is the notion of waste used in the Toyota Production System?
McLeod Motors Ltd.
Reading: Jacobs et al., Chapter Twelve pages 358 388.
Questions for Consideration:
1. What are some examples of specific form/function inventory combinations at McLeod
Motors?
2. Prepare a process flow of the BN-88-55 production process. Identify where Work-in-Process
(WIP) inventory exists in the system.
3. Why might the WIP inventory level at McLeod Motors have increased? What was the
previous level of WIP inventory? What is the lowest possible level of WIP inventory?
4. As Sue Reynolds, what action would you recommend to John Ingram?
The ITC e-Choupal Initiative
Additional Reading: Study Jacobs et al., Chapter Two pages 24 - 42. If you have time, you
might check the ITC website [www.itcibd.com].
Questions for Consideration:
1. What was ITC's motivation for creating the e-Choupal?
2. What were the old and new physical flows and information flows in the channel?
3. What principles did ITC employ as it built the newly-fashioned supply chain?
4. What barriers did ITC face in embarking on this project?
5. As Mr. Sivakumar, how do you plan to proceed to develop this platform for the future?

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Zara: IT for Fast Fashion

Additional Reading: Read Jacobs et al., Chapter Two pages 24 - 42. If you have time, you
might check the Zara website [www.zara.com].
Questions for Consideration:
1. As Mr. Salgado, what will you do concerning the issue of upgrading the POS terminals? Will
you upgrade to a modern operating system? Should the POS applications be rewritten to
include any additional functionality? If so, what functionality?
2. In your opinion, what are the most important aspects of Zara's approach to information
technology? Are these approaches applicable and appropriate anywhere? If not, where would
they not work well?
3. What benefits does Inditex/Zara get from its IT infrastructure? How difficult would it be for a
competitor to acquire these same benefits?
4. What current or potential weaknesses do you see in Zara's IT infrastructure and IT strategy?
Project Management and an Exercise
Additional Reading: Study Jacobs et al., Chapter Five pages 95 - 138.
Questions for Consideration:
1. Be prepared to discuss the Critical Path Method (C.P.M.) and the Program Review and
Evaluation Technique (P.E.R.T.).
2. Be ready to complete an in-class exercise based on these topics.
IDEO Product Development
Additional Reading: Study Jacobs et al., Chapter Five pages 95 - 138. Also, and read Thomke,
Enlightened Experimentation: The New Imperative for Innovation (case package). If you have
time, you might check the IDEO website [www.ideo.com].
Questions for Consideration:
1. How would you characterize IDEO's process, organization, culture, and management?
2. As Dennis Boyle, what advice would you give to David Kelley and why? That is, should IDEO
accept the Visor project as is (on a dramatically reduced schedule)? Should they try to persuade
Handspring's management to change its aggressive launch schedule? Or, should they simply
decline the project? Please consider both the IDEO and Handspring perspectives.
What is Operations and Supply Chain Strategy?
Reading: Jacobs et al., Chapter Two pp. 24-41.
Questions for Consideration:
1. What is Operations Strategy?
2. What are the competitive priorities? Why are trade-offs considered?
3. What are the differences between order-qualifiers and - winners? How has time changed this?

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Chaircraft Corporation
Reading: Jacobs et al., Chapter Two pp. 24-41.
Questions for Consideration:
1. Identify the flows of material through the organization.
2. What are the companys current inventory policies?
3. Identify the flows of information through the organization.
4. What are the major issues facing Chaircraft Corporation?
5. As Mr. Johnson, what are your plans to overcome the major operations problems? Be specific
with respect to actions to be taken, the timing of these actions, the people involved in performing
these actions. What difficulties do you anticipate?
Microlite S.A.: The Pan-Orient Decision
Reading: Jacobs et al., Chapter Two pp. 24-41.
Questions for Consideration:
1. As Luis Pinto, what is your analysis of the capacity situation?
2. What concerns do you have about the competitive environment?
3. What alternatives are available to you? What are the financial implications of each
alternative?
4. As Luis Pinto, what do you plan to do? Why is this course of action the most appropriate?
5. What is your Plan of Action for adding capacity at the Jaboata Plant? Be specific with respect
to actions to be taken, the timing of these actions, the specific people involved, and so on.
What difficulties do you anticipate? What would you do about them? What overall results do
you expect?
Note: We will NOT be discussing how to finance projects in light of Brazilian debt, inflation, etc.
Use American dollars for all cost calculations, and assume that if an alternative makes sense,
the financing will be obtained to implement it.

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Academic Integrity
It is critical to the reputation of the Faculty of Management and of our degrees that everyone
associated with our faculty behaves with the highest academic integrity. As the faculty that
helps create business and government leaders, we have a special obligation to ensure that our
ethical standards are beyond reproach. Any dishonesty in our academic transactions violates
this trust. Specifically, acts of academic dishonesty include, but are not limited to:
- using the exact words of a published or unpublished author without quotation marks and
without referencing the source of these words
- duplicating a table, graph or diagram, in whole or in part, without referencing the source
- paraphrasing the conceptual framework, research design, interpretation, or any other ideas of
another person, whether written or verbal (e.g., personal communications, ideas from a verbal
presentation) without referencing the source
- copying the answers of another student in any test, examination, or take-home assignment
- providing answers to another student in any test, examination, or take-home assignment
- taking any unauthorized materials into an examination or term test (crib notes)
- impersonating another student or allowing another person to impersonate oneself for the
purpose of submitting academic work or writing any test or examination
- stealing or mutilating library materials
- accessing test prior to the time and date of the scheduled sitting
- changing name or answer(s) on a test after that test has been graded and returned
- submitting the same paper or portions thereof for more than one assignment, without
discussions with the instructors involved

Group Projects and Group Work

Many courses in the Faculty of Management require group projects. Students should be aware
that group projects are subject to the same rules regarding academic dishonesty. Because of
the unique nature of group projects, all group members should exercise special care to ensure
that the group project does not violate the policy on Academic Integrity. Should a violation
occur, group members are jointly accountable unless the violation can be attributed to a
specific individual or individuals.
Some courses, while not requiring group projects, encourage students to work together in
groups (or at least do not prohibit it) before submitting individual assignments. Students are
encouraged to discuss this issue as it relates to academic integrity with their instructor to avoid
violating this policy.
In the Faculty of Management, all suspected cases of academic dishonesty are passed to the
Deans Office, in order to ensure consistency of treatment.

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