Executive MBA
Summer 2007
OPIM 953
OPERATIONS SIMULATION / BUSINESS PROCESS MODELING
Instructor:
Office:
Phone:
Fax:
E-mail:
Web:
Dave Goldsman
FMAN 1161
(216) 483-9683 (Office)
(216) 483-9841 (Home)
(216) 483-9699
sman@gatech.edu
http://webct.sabanciuniv.edu/ and www.isye.gatech.edu/~sman/courses
Class Times:
Saturday, June 9
Weds., June 13
Saturday, June 16
Saturday, June 23
Friday, June 29
Saturday, June 30
Friday, July 6
12:30 p.m. – 7:00 p.m.
6:00 p.m. – 10:00 p.m.
12:30 p.m. – 3:30 p.m.
4:00 p.m. – 7:00 p.m.
6:00 p.m. – 9:00 p.m.
9:00 a.m. – 12:00 p.m.
6:00 p.m. – 9:00 p.m.
Office Hours:
by appointment
Course Objectives:
This course presents the concepts and tools required for modeling business processes via
computer simulation methods. First the conceptual framework for business process
design is introduced, followed by methods that can be used to decompose and analyze a
business process as well as performance measures for evaluating efficiency of process
models. Students get to use computer-based tools to design, re-design and edit business
process models. The last part of the course covers event-based simulation concepts and
tools for analyzing new business processes. Particular emphasis is granted to discreteevent simulation as it represents one of the most flexible and powerful tools available for
modeling business processes.
Learning Outcomes:
The main objective of this course is to provide a comprehensive understanding of a
number of tools — especially computer simulation — that can be used to understand,
analyze, model and (re-)design business processes.
This course will help you to
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Understand business processes and their design, and moreover their importance in
overall business performance and a firm’s strategic positioning.
Learn fundamental principles for successful process management.
Use a simulation-based methodology for business design projects from initialization
to implementation.
Exploit graphical tools for charting and describing business processes, which are
extremely useful in analyzing existing processes.
Understand fundamental design process design principles and associated analysis
methods.
Manage process flows with regard to performance measures.
Explore a simulation software tool (Arena) to model business processes, where issues
such as collecting data and using built-in tools for statistical analysis are also
managed.
Deal with statistical analysis such as input data analysis, which is used in determining
input data distributions, and output data analysis, which is of particular importance in
comparing the performance of alternative process designs.
Course Materials:
 I’ll provide all reading materials and notes.
 I’ll also provide everyone with a student version of the Arena simulation software.
(When installing, you will be asked to supply a password, which happens to be
“student”.) The student version of Arena is limited, but sufficient for realistic
examples and in-class exercises. Bring your notebook computer to class.
 Other software will be handed out as needed.
 Optional Text: Laguna, M. and Marklund, J., Business Process Modeling,
Simulation and Design, 1st Edition, Prentice Hall, 2004.
Instructional Design:
I will teach the course in traditional lecture style, but I’ll also assign numerous in-class
exercises to complement the lectures.
Grading:
Grades will be based on in-class participation, in-class and homework exercises, a takehome exam, and a project. If you need to miss a class, please let me know, so we can
deal with it.
Participation
In-class and HW exercises
Exam
Project
: 25%
: 25%
: 25%
: 25%
Academic Honesty:
Learning is enhanced through cooperation and as such you are encouraged to work in
groups, ask for and give help freely in all appropriate settings. At the same time, as a
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matter of personal integrity, you should only represent your own work as yours. Any
work that is submitted to be evaluated in this class should be an original piece of writing,
presenting your ideas in your own words. Everything you borrow from books, articles, or
web sites (including those in the syllabus) should be properly cited. Although you are
encouraged to discuss your ideas with others (including your friends in the class), it is
important that you do not share your writing (slides, MS Excel files, reports, etc.) with
anyone. Using ideas, text and other intellectual property developed by someone else
while claiming it is your original work is plagiarism. Copying from others or providing
answers or information, written or oral, to others is cheating. Unauthorized help from
another person or having someone else write one’s paper or assignment is collusion.
Cheating, plagiarism and collusion are serious offenses that could result in an F grade and
disciplinary action. Please pay utmost attention to avoid such accusations.
Course Schedule:
Module
Module 1
Module 2
Module 3
Module 4
Module 5
Module 6
Module 7
Module 8
Module 9
Module 10
Module 11
Module 12
Module 13
Module 14
Module 15
Module 16
Module 17
Module 18
Module 19
Module 20
Topics
Whirlwind Tour of Simulation
Motivational Hand Simulation Exercise – Single-Server Queue
Introduction to Business Process Design (Ch. 1, L&M)
Motivational Hand Simulation Exercise – Multiple-Server Queue
Process Management & Process-Oriented Improvement (Ch. 2, L&M)
Introduction to Arena (Kim/Nelson notes)
Simulation Framework for Business Processes Design (Ch. 3, L&M)
Simple Queues in Arena (Example 3-1)
Managing Process Flows (Ch. 5, L&M)
Multiple Queues in Arena (Example 4-1)
Motivational Hand Simulation Exercise – Inventory System
Motivational Arena Exercise – Inventory System
Call Centers in Arena (Example 5-1)
Introduction to Queuing Theory (Ch. 6, L&M)
Modeling & Simulating Business Processes (Ch. 8, L&M)
Input Data Analysis (Ch. 9, L&M)
Motivational Case Study – Hospital Patient Flow
Output Data Analysis (Ch. 9, L&M)
Motivational Case Study – Call Center
Discussion of Potential Projects
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