OPERATIONS MANAGEMENT

OTM 765 Fall 2017

Professor Greg DeCroix

Office 5293 Grainger
e-mail greg.decroix@wisc.edu
Phone 265-6083
Office Hours TBD

Operations management involves planning and controlling the processes used to produce the
goods and services provided by an organization. In essence, it is the management of all activities
related to doing the actual work of the organization. Managing these processes can be quite
challenging they are often very complex, and can involve large numbers of people and
facilities, huge volumes of materials and great distances.

Managed well, an organizations operations can be a key source of competitive advantage. They
can play a critical role in facilitating an organizations marketing strategy, and they can enable an
organization to deliver its products or services with high quality at low cost. Managed poorly,
operations can be a significant contributor to disappointing results. As a result, a fundamental
understanding of operations management is important for all managers within an organization.

Specific objectives of the course are to:

Introduce you to the functional area of operations and to increase your awareness of how
a firms operations interface with the other functional areas of the organization.

Familiarize you with the various issues and problems that traditionally arise in the
management of operations within both manufacturing and service organizations.

Acquaint you with some of the terminology, modeling, and methodologies that often
arise in the handling and resolution of these issues and problems.
ASSIGNMENTS AND GRADING
Evaluations will be based upon the following components weighted by the given percentages.

Class Participation 15%

Written Assignments 45%

Executive Shirt case (team) 15%

Inventory homework assignment (individual) 15%

Littlefield Technologies II (team) 15%

Queuing Quiz 5%

Final Exam 35%

Class Participation
In order for the class to get the most out of our time together, it is important for everyone to
actively engage with the material. The ideal level of participation involves preparation of the
assigned readings or cases, attendance at all class sessions, voluntary (useful) contributions to the
discussion of the material and/or raising of interesting and relevant questions, sharing of relevant
stories from previous work experience, and sharing (via email, discussion forum or in-class
comments) of current articles from the business press that are relevant to the material. Students
who engage in these activities consistently throughout the course (without dominating the
conversation we need to give everyone a chance to contribute) will receive maximum credit for
participation. Students who are almost always present, but only contribute occasionally will
receive a lower participation score, while those who miss several classes and/or make few if any
contributions will receive relatively low participation scores.

The course packet contains preparation guides with discussion questions for each of the cases,
and also for some sessions in which there is not a case (just readings). Students can use these to
guide their preparation of the material.

Written Assignments
Students will be required to turn in two written team assignments each team will turn in a
single write-up for each. The first assignment will be an analysis and write-up of the Executive
Shirt case, and it will be due at the beginning of Class 6 (November 9). The second assignment
will be a write-up of the decisions your team makes during the second phase of the Littlefield
Technologies simulation that we will play during the term. The write-up is due at the beginning
of Class 19 (December 13). In addition, students will turn in one written individual assignment
a homework assignment covering inventory management, which is due at the beginning of
Class 15 (December 5).
The course packet also contains a large number of practice problems. These are NOT to be
written up and turned in they are provided simply to give you a chance to practice the
quantitative tools presented in the teaching notes. In fact, solutions to the problems are provided
in the course packet as well. Occasionally I may ask you to work on a specific practice problem
prior to coming to class (some of these are in the syllabus) this will help you get a good sense
of the material required to solve the problems, as well as a sense of where you may be having
difficulty with that material. On those class days, we will spend some time in class going over
the problems and answering questions that came up while you were working on them. You can
then work on the remaining problems to reinforce the material and prepare for the exams.

Queuing Quiz
There will be one short online quiz (no more than 30 minutes to complete) covering queuing
theory. You will need to complete it no later than midnight on November 21. This quiz counts
for only a small percentage of your overall grade (5%) it is intended to provide you with quick
feedback regarding your understanding of that topic before the midterm.

Exam
The final exam is cumulative, and will be held on Tuesday, December 19. The time and
location of the final will be announced prior to the exam.
All students are expected to take the exam at the scheduled times. In some rare instances, it may
be impossible for you to take the exam at that time. If that is the case, you should send me an
email as soon as possible indicating the reason that you need an alternative exam time.
The exam will be closed book. However, a sheet of queuing formulas and a sheet of inventory
formulas will be attached to the exam. (These formula sheets are identical to the appendices of
the queuing and inventory teaching notes, respectively.) In addition, each student will be allowed
to bring one 8 x 11 sheet of notes (both sides), prepared by the person who will use it. (I.e.,
students are not allowed to use notes prepared by others.)
The exam will feature a mix of quantitative and qualitative questions. The qualitative questions
will generally require only a short answer.

Academic Integrity
Academic integrity is an important element of this and all classes at the University of Wisconsin-
Madison. A copy of the Honor Code has been appended to this document for your review. To
emphasize the importance of academic integrity, on each individual submitted assignment you
will be required to include the following statement, followed by your signature:
On my honor, I have neither given nor received unauthorized aid in completing this
academic work.
By submitting your team assignments, you are implicitly making the same statement. However,
since it is sometimes complicated to get all team members signatures on team assignments (due
to travel, etc.), I do not require you to explicitly include the statement and signature on those
assignments.
For the two team written assignments, all work is to be done by individual teams team
members may not discuss or exchange information regarding the analysis with members of other
teams. To help teams avoid potential free-riding situations, at the end of the semester I will ask
each student to complete a brief team-member effort report. Essentially, I will just ask each
student to report the relative effort each team member contributed to the team assignments
throughout the semester. These assessments will be a factor in the determination of final grades.
For the inventory management assignment, the quiz, and the exam, all work is to be done on an
individual basis. You may not discuss or exchange information regarding that assignment, the
quiz or exam questions or answers with others either inside or outside of this class. Asking
anyone other than the professor to interpret a question on the inventory assignment, the quiz, or
the exam is a violation of the Honor Code.
You may not reference notes from, or exchange information with, students from previous years.
This includes copies of exams, handouts, lecture notes, notes taken in class, or study guides of
any type.
If there is any question as to whether an activity is or is not permissible (in this class), consult me
prior to undertaking the activity.

ATTENDANCE
Attendance at each class session is expected. If at some point during the term you find that you
cannot attend a particular session, you are responsible for obtaining any handouts or notes,
submitting any assignments, and mastering the material for that session. Missing a session
necessarily impacts your class participation grade. Please email me (in advance, if possible) to let
me know if you are going to miss a class. If you need to miss a class session and would like to sit
in on the other section of the class, you may do so on a space-available basis. Please email me in
advance to let me know, and give students in that section priority for seating.

REQUIRED MATERIALS
Students are required to purchase the course packet from the copy center. The course packet
price includes fees for three online simulations that we will use during the course, so it is
important that every student purchase a copy of the packet. All readings or cases listed in the
course outline are included in the course packet.

COURSE WEB PAGE

The course web page serves as an electronic repository for materials related to the course. I will
post the syllabus, assignments, class Powerpoint slides, practice exams, and spreadsheets related
to the queuing and inventory material on the web page. The page will also include brief
descriptions of the topic for each class session, and in some cases will provide links to relevant
website or supplemental readings. To access the course web page, go to
http://courses.bus.wisc.edu, and log in using your NetID. Then select this course from the My
Courses directory.
LAPTOP POLICY
In recent years, I have found that the use of laptops in class has become a major source of
distraction, not only for the students using the laptops, but also for students sitting nearby. You
are allowed to make use of a laptop to take notes, or to reference information (e.g., from a case
analysis) that you would like to use in class discussion. You should not use a laptop for purposes
not directly related to the current class session (e.g., email, web browsing).
COURSE OUTLINE

CLASS DATE TOPIC, CASES, READINGS AND ASSIGNMENTS

1 Oct. 31 Course Introduction and Overview

2 Nov. 1
Operations Management and Corporate Strategy
Case: Wal-Mart Stores in 2003 (Abridged)
(See preparation guide in course packet)
Required Readings:
Amazons Grocery Project Moves Ahead, WSJ, December 6,
2016.
Wal-Mart, Target Invest in Store Pickup for Holidays, WSJ,
October 27, 2016.
Wal-Mart Takes Aim at Amazon, WSJ, May 12, 2016.
3 Nov. 2 Introduction to Process Analysis
Required Readings:
An Introduction to Process Analysis Teaching Note.
Practice Problem: Gilmore Framing (p. 14 of teaching note)
4 Nov. 7 Process Analysis
Practice Problems: In the Mix, Worker Rotation (p. 15 of the
Process Analysis teaching note)
5 Nov. 8 Types of Processes & Mass Customization
Required Readings:
The Four Faces of Mass Customization, HBR, Jan-Feb 1997
The Limits of Mass Customization, Sloan Management Review,
Spring 2001.
(See preparation guide in course packet)
6 Nov. 9 Process Analysis
Case: Executive Shirt

*** TURN IN: Write-up of Executive Shirt Case ***

CLASS DATE TOPIC, CASES, READINGS AND ASSIGNMENTS
7 Nov. 14 Processes with Uncertainty: Queuing
Required Readings:
An Introduction to Queuing Theory Teaching Note.

8 Nov. 15 Queuing Analysis

Required Readings:
Where Did the Register Go? WSJ, March 9, 2016.

9 Nov. 16 Queuing Application

Case: Global Financial Corporation
(See preparation guide in course packet)

10 Nov. 21 Service Operations

Psychology of Waiting
Required Readings:
Manufacturing and Services: Differences and Similarities, from
Chapter 1 in Operations Management: Strategy and Analysis.
(Krajewski & Ritzman, Sixth Edition).
The Psychology of Waiting Lines, The Service Encounter
Brazils Seniors Are Fine When They Cut the Line, WSJ,
February 24, 2016.
(See preparation guide in course packet)

** Complete Online Queuing Quiz by midnight **

11 Nov. 22 Littlefield Technologies Part I

Activity: In-class discussion of simulation
CLASS DATE TOPIC, CASES, READINGS AND ASSIGNMENTS
12 Nov. 28 Introduction to Inventory Management, EOQ model
Required Readings:
A Note on Inventory Management Teaching Note, pages 1-5.

13 Nov. 29 Inventory Management: Newsvendor Model

Required Readings:
A Note on Inventory Management Teaching Note, pages 5-9.
Retailers Discounts Run Deeper This Year, WSJ, Dec. 14,
2016.

14 Nov. 30 Inventory Management: Base Stock & (r,Q) Models

Required Readings:
A Note on Inventory Management Teaching Note, pages 9-16.
Zara Owner Inditex Posts Higher Profit, WSJ, Dec. 14, 2016.
A Model for Fast Fashion, WSJ, Dec. 7, 2016.

15 Dec. 5 Inventory Management Insights

Introduction to Lean Production
Required Readings:
Decoding the DNA of the Toyota Production System, HBR,
Sept-Oct 1999.
How a Move to Lean Manufacturing Improved Labor
Standards, Stanford Business, Autumn 2016.

** TURN IN: Inventory management HW assignment **

16 Dec. 6 Lean Production

Case: Toyota Motor Manufacturing, USA
(See preparation guide in course packet)

17 Dec. 7 Quality Simulation Part 1

18 Dec. 12 Quality Simulation Part 2

CLASS DATE TOPIC, CASES, READINGS AND ASSIGNMENTS
19 Dec. 13 Littlefield Technologies Part 2

** TURN IN: Littlefield Technologies Assignment Write-up **

20 Dec. 14 Course Wrap-Up

Dec. 19 FINAL EXAM

(Time and location TBD)
 Wisconsin School of Business
MBA Academic Integrity Policy
Honor Code

Discrimination
I understand that it is the policy of the University of Wisconsin-Madison to not discriminate on
any grounds, and especially not on the basis of gender, race, color, religion, national or ethnic
origin, disability, or sexual orientation. I support this policy and will not tolerate any deviations
from it in the classroom. If I feel that some form of discrimination has been directed toward me or
another during class time, it is my right to contact the Honor Board (or Dean) immediately.

Plagiarism
I understand that plagiarism is a major offense at this University and that it is my duty to
understand what plagiarism is and actively seek out advice when I have a question about my
work. Plagiarism is defined by this University as:

Plagiarism means presenting the words or ideas of others without giving credit.
I should know the principles of plagiarism and the correct rules for citing
sources. In general, if my [work] implies that I am the originator of words or
ideas, they must in fact be my own.

[Specifically], if I use someone elses exact words, they should be enclosed in

quotation marks with the exact source listed. I may put someone elses idea in
my own words as long as I indicate whose idea it is.

If I am unsure about the proper ways to give credit to sources, I may ask my
instructor or consult the Writing Center at 6171 Helen C. White Hall (phone:
608/263-1992, e-mail: writing@wisc.edu) for a copy of their handout Quoting,
Paraphrasing and Acknowledging Sources. Excerpt taken from
http://www.wisc.edu/students/conduct/uws14.htm.

Exams
I understand that all exams whether in-class or take-home are strictly individual efforts. I will not
communicate with any student regarding any aspect of the exam such as, content, coverage, etc.,
until all students have taken the exam. Moreover, I will be certain that anyone with whom I
discuss the examination has previously handed in their examination.
 Individual Homework
I understand that homework that is not handed in for a grade may be discussed with the professor
and other students; indeed, I am encouraged to do so. However, individual homework
assignments that are to be handed in for a grade may not be discussed with students or others
outside the class, such as other faculty members, alumni, etc., unless specified by the instructor.
Note that similar or identical homework may have been assigned in previous semesters; I may
NOT access solutions from any source for those previous semesters. Difficulties with, or
questions regarding, graded and ungraded work may always be directed to the instructor of the
class.

Group Work
Basic Rules: I understand that group work must be done solely within the group and when
required I must hand in a single set of answers for my group. I must contribute equitably in the
assignments/case preparation if I am to take full credit for it. This does not mean that my ideas
must be included. It means that I should make a significant contribution to the overall process. If
that did not happen for some individual, I can include in my report an estimate of that persons
contribution relative to others in my group.

On Consulting with Others: I may not discuss the group work with anyone outside my group,
with the exception of my professor or TA. That necessarily means that I will have no discussions
with other groups, with those in other cohorts, or with anyone who may have previously studied
the case. The only exception may be if my professor allows cross-group discussion as part of an
assignment. Even in this case, however, I am obligated to be sure my work is not too similar to
another groups work in its completed version.

Using Sources: The set of materials to be used in completing the group work will be clearly
defined by the professor; under no circumstances am I to use sources outside the allowed set. This
may include company or knowledgeable sources , interviews or library/online searches. All
sources, whether written, oral or online, must be cited properly.

Note on the Internet: I understand that unless explicitly instructed, the use of any internet
materials to complete an exam, homework, or group work, not explicitly assigned to the class are
strictly prohibited.

Cases and Case Discussions

I understand that case write-ups are to be done individually, or within your assigned group, as
your professor/instructor designates. In addition, case discussions conducted in class are to be
done within my section or cohort, unaided by alumni, 2nd year students or students in other
sections/cohorts who have already reviewed the case. Discussing the analyses, arguments, logic,
etc. that go into the case compromises the equitable distribution of class participation and more
importantly, undermines the learning process. Thus, since the path taken to arrive at an answer is
as important as the answer itself, it is critical that case discussions are a product of my own
thinking.
 If you are unsure about a rule or policy:
Finally, and very importantly, I recognize that the principle ingredient in the successful
operations of the honor code is good faith among all parties. From time to time, situations will
arise in which the application of the honor code is unclear. In such cases, it is important that I
contact my Professor/instructor immediately for clarification.