Lecture plan: MBAFT FT-6206/Production and Operations Management (2018-19)

MBA 1st year

Instructor: Prof. Debadyuti Das

Course objectives:
This course is designed to help the students understand the role of operations in improving the
efficiency of an organization including both manufacturing and service one and also help them
appreciate the linkage of operations with corporate strategy and other functional domains
including marketing and finance. It would help them understand the business problems relating
to operations and equip them with the application of appropriate tools and techniques for
addressing the same.

The course is highly intensive which places great demand on students. A major portion of the
sessions would be covered through case discussions for which the cases and or relevant reading
material would be sent/distributed to the students in advance. The students are required to go
through the cases/reading material thoroughly before coming to the class. This is a minimum
pre-requisite for a healthy case discussion. Students with no prior preparation should not attend
the session in order to avoid embarrassment in the class. They would be continuously evaluated
on case discussions and case exercises. Thus a substantial portion of internal assessment is
devoted towards their active involvement in case discussions/case exercises. Those abstaining
from a particular session would lose marks on both case discussion component and also on the
component of attendance.

Contents
 Introduction to Operations Management
 Operations Strategy
 Facilities location
 Strategic capacity planning
 Process and capacity analysis
 Process selection
 Layout strategy
 Inventory management (Deterministic & Probabilistic models)
 Aggregate Production Planning
 Quality Management
 Statistical process control (SPC) and Six Sigma
 Theory of constraints (TOC)
 Just-in-time & Lean manufacturing

Internal assessment scheme

 Components of Evaluation Max marks
Participation in case discussion/exercises 10

Submission of case write-up in group* 10

Quiz 10

Mid-term test 20

Total 50

*Two case write-ups are to be submitted by all groups in hard copy before case discussion of
those cases actually happens in the class. Submission of case write-up after case discussion
would not be considered for evaluation purposes. The deadline for submission of case write-up
for Sec A would be 9.00 am on the day the case discussion takes place and 12 noon for both Sec
B and C. The announcement in respect of case write-up to be submitted by the groups would be
made well in advance. There are approx. 80 students each in all three sections. Each Group
would consist of 5 members in most of the cases. Groups should ideally be constituted from the
ascending order beginning with roll no., e.g. roll no. 1 – 5 should be known as group 1, 6 – 10
group 2 and so on. Thus each class would have approx. 16 groups. The CRs of respective
sections are advised to constitute the groups and communicate to me at the earliest.

Session-wise schedule:
Day 1: Course overview & Key issues of POM
Session 1 & 2: Brief introduction about the structure of the course, tentative coverage, session
plan and the teaching pedagogy involved. Overview on Production and Operations Management.
Background Reading: Ch.1: OM by Stevenson

Day 2
Session 3: Operations Strategy
Case: Cambridge Cooling Systems: Global Operations Strategy (Richard Ivey Case)
Background Reading: Ch. 2 by Mahadevan
Session 4: Operations Strategy: Linking practice with theory
Background Reading: Ch. 2 by Mahadevan
Ch. 2 by Stevenson

Day 3
Session 5: Facilities Location
Case: Electrosteel Castings Ltd. (Richard Ivey Case)
Background Reading: Ch. 8 by Stevenson
Session 6: Facilities location: Relevant tools & exercises
Background Reading: Ch. 8 by Stevenson

Day 4
Session 7: Strategic Capacity Planning
Case: Designing optimal capacity planning strategies (Richard Ivey Case)
Background Reading: Ch. 5 by Stevenson
Session 8: Strategic Capacity Planning: Concepts and tools
Background Reading: Ch. 5 by Stevenson

Day 5
Session 9: Process and Capacity analysis
Background Reading: Ch. 2 & Ch. 3 by Cachon & Terwiesch
Ch. 8 by Mahadevan
Session 10: Relevant Numerical Exercises
Background Reading: Ch. 2 & Ch. 3 by Cachon & Terwiesch
Ch. 8 by Mahadevan

Day 6
Session 11: Selection of production processes
Brief case: 1. Process strategy at Wheeled Coach
2. Rochester Manufacturing Corporation
Background Reading: Ch. 6 by Stevenson
Ch. 7 by Heizer and Render
Session 12: Layout Strategy
Brief case: Facility layout at Wheeled Coach
Background Reading: Ch. 6 by Stevenson
Ch. 8 by Heizer & Render

Day 7
Session 13:
Numerical exercises on assembly line balancing & load-distance formulation
Background Reading: Ch. 6 by Stevenson
Ch. 8 by Heizer & Render
Session 14: Quiz

Day 8
Session 15: Inventory Management: Deterministic Models
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.
Session 16: Inventory Management: Probabilistic Models (Multi-period)
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.
Day 9
Session 17: Brief cases on Inventory Management
(1) Zhou Bicycle Company
(2) Sturdivant Sound Systems
(3) Inventory control at Wheeled Coach
Session 18: Selective Inventory Models
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.

Day 10
Session 19: Inventory Management: Probabilistic Model (Single-period)
Background and Concepts
Background Reading: Ch. 11 by Cachon & Terwiesch
Session 20: Inventory Management: Single-period Inventory Model
Numerical exercises
Background Reading: Ch. 11 by Cachon & Terwiesch

Day 11
Session 21: Mid-term test
Session 22: Aggregate Production Planning (APP)
Case: Macpherson Refrigeration Ltd. (Richard Ivey case)
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.
Day 12
Session 23: Aggregate Production Planning (APP): Theoretical Background
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.
Session 24: Numerical exercises on APP
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.
Day 13
Session 25: Quality Management
Brief cases: (1) Southwestern University: (C)* or
(2) The culture of quality at Arnold Palmer Hospital
Background Reading: Ch. 9 by Stevenson
Session 26: Statistical Process Control (SPC)
Tools, techniques and exercises
Background Reading: Ch. 10 by Stevenson

Day 14
Session 27: Process capability and Six Sigma
Background Reading: Ch. 10 by Stevenson
Ch. 12 by Chase et al.
Session 28: Theory of constraints (TOC): Concepts & exercises
Background Reading: Ch. 23 by Chase et al.

Day 15
Session 29: Just-in-time & Lean manufacturing
Background Reading: Ch. 14 by Stevenson
Session 30: Revision & recapitulation of the course

Text book:
1. Stevenson, W.J., ‘Operations Management’, McGraw Hill, 12th ed., New Delhi, 2018.
Supplemental Readings:
2. Cachon, G. and Terwiesch, ‘Matching supply with demand’, McGraw Hill, 2nd ed., New
Delhi, 2013.
3. Chase, Richard B., Shankar, R. and Jacobs Robert F., ‘Operations and Supply Chain
Management’, McGraw Hill, 15th ed., New Delhi, 2018.
4. Heizer, J, Render, B. and Rajashekhar J, ‘Operations Management’, Pearson Education,
11th ed., New Delhi, 2014.
5. Mahadevan, B.,‘Operations Management’, Pearson Education, 3rd edition, New Delhi,
2015.
6. Russell, R.S. and Taylor (III), B.W., ‘Operations and Supply Chain Management’, Wiley,
8th edition, Delhi, 2014.