NYU Stern School of Business
Undergraduate College
OPMG-UB.0001.04: Operations Management
Fall 2013
INSTRUCTOR
JOSH REED
E-mail: jreed@stern.nyu.edu
Office Hours: Mon 10-12 and Wed 12-2
Office Location: 8-79 KMC
TEACHING FELLOW
JONATHAN LEE
E-mail: jl5067@stern.nyu.edu
Office Hours: Tues 12:30-2
Office Location: 8-172 KMC
COURSE MEETINGS
Meeting Times: TR, 2:00pm to 3:15pm
Location: Tisch 200
Final Exam: The final exam is on Tuesday, December 17th from 2:00pm to 3:50pm
Schedule exceptions
Class will not meet on: Tuesday, October 15th and Thursday, November 28th
Class will meet on: All other Tuesdays and Thursdays
COURSE DESCRIPTION AND LEARNING GOALS
This course is designed to give students a better understanding of how firms can gain competitive advantage from their operations function. Typically this requires the firm to achieve, at a
minimum cost, quality, and ecological parity; responsiveness and adaptability to customer needs
and desires; rapid time to market; process technology leadership; and sufficient and responsive ca1
pacity. A problem-solving framework is developed that enables students to undertake managerial
and technical analysis that should result in the desired comparative advantage. Both service and
manufacturing case examples are utilized.
HOMEWORK
You will be assigned homework on a class by class basis for each topic. The homework assignments are due on the dates (sessions) indiciated. Assignments are to be handed-in at the beginning
of class. Keep a copy of all homework submitted for reference during class.
Homeworks will be graded on a scale out of 10 and will not be accepted late. They must be
prepared individually in order to receive credit. Please write clearly or word process your homework.
HOW TO PREPARE FOR CLASS DISCUSSIONS
Please read the cases carefully. Use the study questions supplied in the syllabus as a guide. Be
prepared to be called-upon to present the facts of a case, or carryout the analysis indicated by the
study questions.
COURSE PRE-REQUISITES
Either STAT-UB 103 or both STAT-UB 1 and STAT-UB 3.
COURSE OUTLINE
This syllabus is tentative and subject to change.
MODULE 1: Introduction to Operating Systems: Process Design and Analysis
Sept 3 SESSION 1: INTRODUCTION TO OPERATIONS AS A SOURCE OF COMPETITIVE ADVANTAGE
1. Background material : The Goal by E.M. Goldratt
2. Background material: Chapter 1 in Heizer and Render (H&R) (p. 1- 19)
3. Introduction to Operations Management: Course Introduction and Overview
Sept 5 SESSION 2: PROCESS ANALYSIS AND DESIGN
1. Background material: Analysis of an Operations File and Terms Used in Operations Management File
2. Homework #1: Pick up a copy of Homework #1 which is due on September 24.
Sep 10 SESSION 3: THE PANAMA CANAL
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1. Read, analyze and be prepared to discuss the Panama Canal case which is available in the
course packet.
Sep 12 SESSION 4: MORE PROCESS ANALYSIS
1. Background material: Chapter 7 in Heizer and Render (H&R) (p. 249-259)
2. Homework #2: Draw a process flow diagram for the National Cranberry case, due September
17.
Sep 17 SESSION 5: NATIONAL CRANBERRY
1. Read, analyze and be prepared to discuss the National Cranberry case which is available in
the course packet.
2. Homework #2 is due.
MODULE 2: Optimal Resource Allocation
Sep 19 SESSION 6: THE BASIC LINEAR PROGRAMMING (LP) PROBLEM
1. Background material: Quantitative Module B: Linear Programming in H&R (p. 689-692)
2. Be sure you get the handout with the four LP problems.
Sep 24 SESSION 7: SOLUTION TECHNIQUES: GRAPHICAL METHOD AND
ENUMERATING THE CORNER POINTS
1. Background material: Quantitative Module B: Linear Programming in H&R (p. 692-697)
2. Homework #3: Pick up a copy of Homework #3 which is due on October 1.
3. Homework #1 is due.
Sep 26 SESSION 8: LP SOLUTION (SENSITIVITY ANALYSIS AND EXCEL INTERPRETATION)
1. Background material: Quantitative Module B: Linear Programming in H&R (p. 697-699)
2. Bring laptops to class.
3. Solve problems 1-4 on the LP formulation hand-out sheet using EXCEL.
4. Interpretation of the results.
Oct 1 SESSION 9: USING THE LP MODEL AND MIDTERM REVIEW
1. Read, analyze, and be prepared to discuss the Otto Development Corporation case which will
be posted on NYU Classes and handed out in class.
2. Bring questions about the midterm to class.
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3. Review material before the midterm.
4. Homework #3 is due.
Oct 3 SESSION 10: Midterm I
MODULE 3: Time Based Competition
Oct 8 SESSION 11: THE CRITICAL PATH METHOD
1. Background material: Chapter 3 in H&R (p. 55-79)
2. Homework #4: Pick up a copy of Homework #4, which is due on October 17.
Oct 10 SESSION 12: PROJECT CRASHING
1. Background material: Chapter 3 in H&R (p. 79-81)
2. Linear programming and project crashing.
MODULE 4: Managing Quality as a Strategic Issue
Oct 17 SESSION 13: QUALITY ITS DEFINITION AND BASIS FOR COMPETITION
1. Preview of the next half of the course.
2. Background material: Chapter 6 in H&R (p. 187-209)
3. Homework #4 is due.
Oct 22 SESSION 14: QUALITY ANALYSIS, MEASUREMENT AND IMPROVEMENT
1. Read the Ford-Firestone case provided on NYU Classes and be prepared to discuss.
2. Homework #5: Prepare and submit a Fishbone Diagram of the tread-separation / SUV
rollover. Due at the beginning of class today.
Oct 24 SESSION 15: STATISTICAL PROCESS CONTROL
1. Background material: Supplement to Chapter 6 in H&R (p. 217-236).
2. Homework #6: Pick up a copy of Homework #6, it is due on October 31.
Oct 29 SESSION 16: PROCESS YIELD
1. Read, analyze and be prepared to discuss the quality control issues in the South Tree Electronics case available on NYU Classes.
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Oct 31 SESSION 17: MIDTERM REVIEW
1. Homework #6 is due.
2. Bring questions about the midterm to class.
3. Review material before the midterm.
Nov 5 SESSION 18: Midterm II
MODULE 5: Inventory Concepts and Models
Nov 7 SESSION 19: INTRODUCTION TO INVENTORY
1. Background material: Chapter 12 in H&R (p. 465-473)
2. Homework #7: Pick up a copy of Homework #7, it is due on November 21.
Nov 12 SESSION 20: THE EOQ MODEL
1. Background material: Chapter 12 in H&R (p. 474-494).
Nov 14 SESSION 21: THE NEWSVENDOR PROBLEM
1. Read, analyze and be prepared to discuss the L.L. Bean Inc. case which is available in the
course packet.
Nov 19 SESSION 22: INVENTORY IN ACTION: THE BEER GAME ROOM: KMC
11-75 Cantor Boardroom
1. Beer Game.
Nov 21 SESSION 23: SUPPLY CHAIN MANAGEMENT
1. Debrief of the Beer Game
2. Background material: Chapter 11 and the Supplement to Chapter 11 in H&R (p. 417-459)
3. Background material: Chapter 16 in H&R (p. 619-639)
4. Homework #7 is due.
Nov 26 SESSION 24: REVENUE MANAGEMENT
1. Revenue Management
MODULE 6: Time-to-Market & Responsiveness
Dec 3 SESSION 25: THE EFFECTS OF UNCERTAINTY - WAITING LINES
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1. Background material: Quantitative Module D in H&R on Waiting-Lines Models (p. 739-749).
2. Homework #8: Pick up a copy of Homework #8, it is due on December 12.
Dec 5 SESSION 26: QUEUING THEORY IN ACTION
1. Background material: Quantitative Module D in H&R on Waiting-Lines Models (p. 749-753).
2. Read, analyze, and be prepared to discuss the First City National Bank case available on
NYU Classes. The following study questions will help:
(a) Considering the data supplied for arrival and service times, how would you calculate an
average arrival rate and service rate?
(b) As Mr. Craig, what characteristics of this queuing system would you be most interested
in observing?
(c) What is the best number of tellers to use?
(d) Calculate the waiting time for a customer (time spent in the queue before service) and
determine which of the two line configurations you would recommend? Support your
result with the appropriate quantitative queuing analysis.
Dec 10 SESSION 27: SIMULATION
1. Bring laptops to class.
2. Background material: Quantitative Module F in H&R on simulation (p. 785-796)
3. Consider the First City National Bank case again. What are the advantages of using simulation to study this operation? What are the limitations?
4. Which alternative arrangement of teller lines should Mr. Craig select based on the simulations?
Dec 12 SESSION 28: REVIEW OF COURSE MATERIAL
1. Bring questions about the final exam to class.
2. Review material before the final exam.
3. Homework #8 is due.
Dec 17 FINAL EXAM - 2:00-3:50 P.M.
OPTIONAL COURSE MATERIALS
CUSTOM TEXT: COMPETITIVE ADVANTAGE FROM OPERATIONS, SEVENTH
EDITION, Pearson Custom Publishing (available at the NYU Bookstore)
REQUIRED COURSE MATERIALS
COMPUTER SOFTWARE: EXCEL
ELECTRONIC COURSEPACK CASES (available at the NYU Bookstore):
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• PANAMA CANAL
• NATIONAL CRANBERRY
• L.L. BEAN, INC.
OTHER MATERIAL (available on NYU Classes):
• TERMS USED IN OPERATIONS MANAGEMENT
• ANALYSIS OF OPERATIONS DOCUMENT
• FORD-FIRESTONE CASE
• FIRST CITY NATIONAL BANK
• SOUTH TREE ELECTRONICS
RECOMMENDED READING
THE GOAL, Eliyahu M. Goldratt and Jeff Cox, North River Press, Inc. 2004.
GRADING
Class Participation, Attendance, Quizzes 10%
Homework 15%
Mid-Term Examination I 25%
Mid-Term Examination II 25%
Mid-Term Examination III 25%
A note about grading:
At NYU Stern, we strive to create courses that challenge students intellectually and that meet
the Stern standards of academic excellence. To ensure fairness and clarity of grading, the Stern
faculty have adopted a grading guideline for core courses with enrollments of more than 25 students
in which approximately 35% of students will receive an A or A- grade.
Please see http://www.stern.nyu.edu/portal-partners/current-students/undergraduate/resourcespolicies/academic-policies/index.htm for more information.
RE-GRADING
The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged
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from pursuing arbitrary challenges to it.
If you believe an inadvertent error has been made in the grading of an individual assignment
or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted.
You must submit such requests in writing to me within 7 days of receiving the grade, including a
brief written statement of why you believe that an error in grading has been made.
PROFESSIONAL RESPONSIBILITIES FOR THIS COURSE
Attendance
Class attendance is essential to your success in this course and is part of your grade. An excused absence can only be granted in cases of serious illness, grave family emergencies, or religious
observance and must be documented. Job interviews and incompatible travel plans are considered
unexcused absences. Where possible, please notify me in advance of an excused absence.
Participation
In-class contribution is a significant part of your grade and an important part of our shared learning
experience. Your active participation helps me to evaluate your overall performance. You can excel
in this area if you come to class on time and contribute to the course by:
• Providing strong evidence of having thought through the material.
• Advancing the discussion by contributing insightful comments and questions.
• Listening attentively in class.
• Demonstrating interest in your peers’ comments, questions, and presentations.
• Giving constructive feedback to your peers when appropriate.
Assignments
Late assignments will either not be accepted or will incur a grade penalty unless due to documented
serious illness or family emergency. Exceptions to this policy for reasons of religious observance or
civic obligation will only be made available when the assignment cannot reasonably be completed
prior to the due date and you make arrangements for late submission in advance.
Classroom Norms
Arrive to class on time and stay to the end of the class period. Chronically arriving late or
leaving class early is unprofessional and disruptive to the entire class. Repeated tardiness will have
an impact on your grade.
Turn off all electronic devices prior to the start of class. Laptops, cell phones and other electronic devices are a distraction to everyone.
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STERN POLICIES
General Behavior
The School expects that students will conduct themselves with respect and professionalism toward
faculty, students, and others present in class and will follow the rules laid down by the instructor
for classroom behavior. Students who fail to do so may be asked to leave the classroom.
Course Evaluations
Course evaluations are important to us and to students who come after you. Please complete
them thoughtfully.
ACADEMIC INTEGRITY
Integrity is critical to the learning process and to all that we do here at NYU Stern. As members
of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which
includes a commitment to:
• Exercise integrity in all aspects of one’s academic work including, but not limited to, the
preparation and completion of exams, papers and all other course requirements by not engaging in any method or means that provides an unfair advantage.
• Clearly acknowledge the work and efforts of others when submitting written work as ones
own. Ideas, data, direct quotations (which should be designated with quotation marks),
paraphrasing, creative expression, or any other incorporation of the work of others should be
fully referenced.
• Refrain from behaving in ways that knowingly support, assist, or in any way attempt to enable
another person to engage in any violation of the Code of Conduct. Our support also includes
reporting any observed violations of this Code of Conduct or other School and University
policies that are deemed to adversely affect the NYU Stern community.
The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can
be found here:
Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
To help ensure the integrity of our learning community, prose assignments you submit to NYU
Classes will be submitted to Turnitin. Turnitin will compare your submission to a database of
prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications. Additionally, your document will become part of the Turnitin database.
RECORDING OF CLASSES
Your class may be recorded for educational purposes
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STUDENTS WITH DISABILITIES
If you have a qualified disability and will require academic accommodation of any kind during
this course, you must notify me at the beginning of the course and provide a letter from the Moses
Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend. If you will need to take an exam at the
CSD, you must submit a completed Exam Accommodations Form to them at least one week prior
to the scheduled exam time to be guaranteed accommodation.
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