California State University, Northridge College of Business and Economics Department of Systems and Operations Management SOM 306 Operations Management, Fall 2013 Ticket # 12780; M-W 12:30-1:45, Noski Auditorium Dr. Ardavan Asef-Vaziri aa2035@csun.edu Office: JH 4129, Tel: 818-677-3637 Office hours: MW 2:00-6:00, and by appointment Count what is countable. Measure what is measurable. What is not measurable, make it measurable. Galileo Galilei, 1564 -1642. Prerequisites. To enroll in SOM 306, the student must has passed SOM 120 (or an equivalent statistics course at another institution) with a grade of “C” or higher. Alternatively, the student must has passed both Math 140 and Math 103. Students who fail to provide proper proof of prerequisites are required to drop the course, or risk receiving an F as their final grade. It is your responsibility to make sure that you have passed the necessary prerequisites. Operations Management. Operations, Marketing, and Finance are the three primary functions of business organizations. Operations management focuses on how managers can design and operate processes in business settings with discrete flow units. Examples include the flow of cars in a GM assembly plant, flow of customers in a Wells Fargo branch, flow of patients at the UCLA Medical Center, flow of cash in Fidelity Investments, and flow of students during their two-to-five year program at CSUN. In all these systems, flow units (natural resources, semifinished goods, products, customers, patients, students, and cash) flow through a set of processes (formed by a network of activities and buffers) using Human resources and Capital resources (such as equipment, buildings, tools) to become a desired output. The reason for the being of operations management is structuring (designing), managing, and improving processes to achieve the desired output as defined in a four-dimensional space of quality, cost, time, and variety. We will learn to implement the process view as the unifying paradigm to study the core concepts in operations of these settings. We employ a structured, data-driven approach to discuss the core operations management concepts in three steps. (i) Model and understand a business process and its flows. (ii) Study causal relationships between the process structure and operational and financial performance metrics. (iii) Formulate implications for managerial actions by filtering out managerial levers (process drivers) and their impact on operational and financial measures of process performance. The objective is to show how Operations Management, Asef-Vaziri, Fall 2013 Page 1 managers can structure and manage processes and process drivers to improve the performance of any business process with discrete flow units. Making a factory [or the service system] operate for the company just like the human body operates for the individual. The autonomic nervous system responds even when we are asleep. The human body functions in good health when it is properly cared for, fed and watered correctly, exercised frequently, and treated with respect. Taiichi Ohno, Toyota Production System. SOM 306 is an introductory course into operations management. The goal is to acquaint students in Business Administration and Economics with the scope of this field. In this course, students are introduced to classic and contemporary terminology, concepts, ideas, models, techniques and tools in design and operations of manufacturing and service enterprises. Operations management techniques, such as short term and long term forecasting, process flow analysis, waiting line analysis, capacity planning, inventory management, linear programming, aggregate planning, quality management, and lean operations are introduced. These techniques are integrated on the basis of analysis, design, and management of process flows in environments such as production and assembly plants, supply chains, healthcare systems, educational institutes, and financial enterprises. Students will be able to perform both quantitative and qualitative analysis of basic operational situations and decisions. Students will also improve their ability to effectively communicate to management the results of their operational analysis problems. Specific Features of the Course. One of the most binding constraints of business school students – from when they are admitted to college as raw material from high school to when they graduate and leave college as the final product – is their low quantitative and analytical skills. According to the CEO of American Express in his 2011 interview with Fareed Zakaria on CNN, the low level of quantitative capabilities of our graduates has kept us from excelling beyond the graduates of rising countries such as China and India. Organization for Economic Cooperation and Development (OECD) Skills Outlook (2013) compares the literacy, mathematics and computer skills of U.S. residents with other OECD countries. In mathematics, U.S. trailed 18 countries and beat Italy and Spain. Believing that managers cannot go far if their quantitative and analytical capabilities are below a threshold, we have tried to improve these qualifications through our Operations Management (OM) classroom. In a typical traditional OM class, about 2/3 of the class time is spent on delivering the content. The rest is mainly spent on problem solving and also on case studies, term projects, and simulation games. We have tried to improve these capabilities through flipping Operations Management, Asef-Vaziri, Fall 2013 Page 2 our Operations Management classroom. By delivering the lectures using screen capture technology, the students can learn the material at a time and location of their choice, when they are in control to pause, rewind, and fast forward the professor. The class time is no longer spent on teaching basic concepts, but rather on more value-added activities such as problem solving, answering questions, creative-thinking, systems-thinking, as well as real world applications and discussions, potential collaborative exercises such as case studies, and virtual world applications such as web-based simulation games. A flipped classroom is an online course because its online components must compete with the best of the online courses. A flipped classroom is also a traditional course because not even a single class session is cancelled while all the lectures are delivered online. This core concept is reinforced by a network of resources and learning processes, ensuring a smooth, lean, and synchronized course delivery system. The specific features of the course and their relative importance are depicted below. Quantitative and Analytical Interdisciplinary Team Work Systems Thinking Information Visualization Information Technology Quantitative and Analytical. We use Operations Management as a tool to improve the quantitative and analytical capabilities of our students. The students will learn to develop a structured, data-driven, analytical, and quantitative approach to discuss the core Operations Management concepts. Systems Thinking. We try to improve systems thinking capabilities of our students by teaching the basic concepts of operations management not as isolated islands, but as a total system designed towards improving process flow. The students will learn to implement the process view as the unifying paradigm to study the core concepts in the operations management (extracted from Anupindi, et al., 2012). Operations Management, Asef-Vaziri, Fall 2013 Page 3 Visualization of Data and Information. Besides quantitative representation (translating long writings into mathematical relationships), the students practice tabular representation (translating long writings into tables) and schematic representation (translating several pages of writing and tables into a graph, flow chart, or picture). The students also exercise how to deal with large, unorganized, or erroneous big data sets. Information Technology. We try to enhance the knowledge of the students in spreadsheet modeling. We have learned that understanding the knowledge behind these models and developing small pilot spreadsheets leads to a better understanding of the course material. Through case studies, as well as web-based games, the stage is set to motivate the students to develop spreadsheet-based models. Teamwork. We encourage collaborative learning and creative thinking. The first day of class is not spent on the syllabus, but rather on the importance of teamwork. The students are encouraged to have weekly team meetings to go over the already solved assignments, and gain new insights in the web-based games and case studies. Academic integrity and ethics are also implicitly addressed in the course. Interdisciplinary. We address interfaces of Operations Management with Accounting, Finance, Economics, and Management concepts through case studies. Learning Goals. There will be two games and several learning goal specific problems in the exams to enable the college to assess your knowledge in the following areas: (a) To provide definitions or short explanations of concepts and issues related to the area of operations management. (b) To be familiar with a basic set of standard operation problems. (c) To interpret quantitative analysis of various operational problems and present the results to management. Text Book and Reference Books. Text Book Managing Business Process Flows, 3rd Ed. 2012. Anupindi, Chopra, Deshmukh, Van Mieghem, and Zemel. Pearson Prentice Hall, 2012. ISBN: 978-0-13-6036371. Matador prices New $130.25 Used $97.75 New Rental $84.66 Operations Management, Asef-Vaziri, Fall 2013 Used Rental $62.52 Digital $62.25 Page 4 References Building Lean Supply Chains with the Theory of Constraints. 2012. Srinivasan. McGraw-Hill. ISBN: 978-0-07-177121-4. This book also has a Kindle edition available on the Amazon web site. Supply Chain management: Strategy, Planning, and Operation. 5th edition, 2010. Chopra and Meindl. PEARSON Prentice Hall. Print ISBN: 978-0-13-274395-2 eText ISBN: Introduction to Management Science. 5th edition, 2014. Hillier and Hillier. Mc Graw-Hill ISBN: 0078024064. eBook is available through CourseSmart (www.coursesmart.com). The eBook ISBN is 978-0-07-749893-1. The books do not replace the teaching material covered during the semester. Nothing will replace (i) Listening to the recordings and reading the lectures, and printing the PowerPoint lectures before coming to class. (ii) Completing the assignments before coming to class. (iii) Coming to class and being on time, not leaving the class early, remaining focused in class, and writing the required notes. Composition of marks Class Participation............... …..10% Games...........................................12.5% Report and Peer Evaluation……5% Quizzes .......................................22.5% Mid-term Exam ..........................20% Final .............................................30% Class Participation. Please post your photo on Moodle by the end of the first week (if you have concerns regarding posting your photo, that is fine). Only the students who profoundly help Dr. Asef in creating a learning environment will get full marks for class participation. What do we partially mean by creating a learning environment? During the last two semesters, I have had innumerous complaints from the students regarding continuous whispering of other students at their side. When you talk during my lectures (a) you cannot follow the material, (b) Dr. Asef loses his concentration, and more importantly, (c) you do not allow your classmates to understand the material. In order to get 100% of the class participation mark, please do not disturb the learning environment by creating background noise. Sending text messages and surfing unrelated sites are also instances of disturbing the learning environment. All students are expected to turn off their cell phones during class sessions – except due to unexpected emergencies when they will need to inform Dr. Asef in advance. Students are expected to use their laptops and tablets strictly for presentation slides or Operations Management, Asef-Vaziri, Fall 2013 Page 5 computations. Thank you for helping us to create an efficient learning environment. Please come to class, be on time, do not leave the class early, and remain focused in class. Being focused in class, reading the PowerPoint slides, and solving the assignments play the most important role in your success in SOM 306. If you intend to leave the class early, you need to leave a note at the beginning of class and explain the reason. Otherwise, if a student leave the class after she/he has been marked present for that session, her/his overall class participation grade and peer evaluation grade will be set to 0. We expect all students to go into State 0 at least one minute before the class starts. State 0 means absolute meditation mode. Born in Moscow in 1863, Constantin Sergeyevich Stanislavsky had a more profound effect on the process of acting than anyone else in the twentieth century. It was his assertion that if the theater was going to be meaningful it needed to move beyond the external representation that acting had primarily been. Over forty years he created an approach that fore fronted the psychological and emotional aspects of acting. The Stanislavsky System, or "the method," as it has become known, held that an actor’s main responsibility was to be believed (rather than recognized or understand). Today in the United States, Stanislavsky’s theories are the primary source of study for many actors. Among the many great actors and teachers to use his work are Marlon Brando and Gregory Peck. Many artists have continued experimentation with Stanislavsky’s ideas. Among the best known of these proponents is the Actors Studio, an organization that has been home to some of the most talented and successful actors of our time. Stanislavsky saw that the difference between the good actor and the great actor was the ability to be relaxed, and to be private in public. We learn from Stanislavsky: As the students relax before the lecture starts; they clean the slate, going to a zero state, being ready for the best performance in the learning process. Quizzes. Our flipped classroom needs to be (1) smooth (the work-load is uniformly spread over the semester due to well-paced lecture captures), (2) lean (the students do not have the opportunity to postpone watching the lectures due to after-lecture-before-class quizzes ), and (3) synchronized (online resources facilitate learning processes and live face-to-face in-class problem solving and troubleshooting reinforce the online material). Dr. Asef has prepared screen captures of the lectures using software such as Camtacia Studio. Each student can learn the basic concepts at flexible times fitting his/her schedule. If students do not know the basics concepts – streamlined through screen captures – there will be no basis for active problem solving, trouble shooting, creative-thinking thinking, and real world applications in our face-to-face class times. The students will learn the basic concept via screen captures at a time that best fits their schedule, and when they are focused. They will then take a simple online quiz (on Moodle) to assess if they have listened to the lectures. Then, they will start solving Operations Management, Asef-Vaziri, Fall 2013 Page 6 the assigned problems. When they come to class, the students will be in an excellent position to overcome their weaknesses throughout the class discussion. In a quantitative and analytical course, it is the problem solving and profound face-to-face discussions, rather than delivering the basic concepts, which requires presence of the teacher. After class discussions, the students will take another online quiz on Moodle - but this time more advanced. Comparing the performance of the students on simple quizzes after listening to lectures with that of the more advanced quizzes after class discussion provides basis for assessment. Students are encouraged to have group discussions on the lecture material, as well as on the solved assignments. Nevertheless, quizzes are individual tasks and any type of collaboration on the quizzes is prohibited. Usually, you have 20-50 minutes to take the quizzes. Time window for some quizzes on Mondays is from 11:30 am to 11:30 pm Tuesday, and on Fridays from 11:30 am to 11:30 pm on Sunday. Students who share their information on quiz to the other students who have not taken the quiz yet, or provide them with supporting material may get a grade of zero for one quiz or for all quizzes. Games. Two web-based games will be played. Game 2 starts from scratch, not from the point you have finished Game 1. Each game takes one week. During these games, the student will examine the capabilities of the quantitative and analytical tools that they have learned in the course. In the first game they exercise their knowledge on Forecasting Models, Process Flow Analysis, and Waiting Line Models. In the second game, in addition to these techniques, they also exercise their knowledge on Inventory Models and Revenue Management models. The student’s grade in the computer games will be determined by the financial position of their company at the end of each game. Game 2 starts new and not from where Game 1 ended. The team in the best cash/Asset position gets 100 and the last team gets 60. If a team’s financial position is exactly the same as the do-nothing team, their grade is set to 0. We have experienced that the students, after playing the first game, realize that knowing the course material plays a profound role in their standing, and therefore, they allocate more time to learn the course material related to the second game. Each team is composed of four students. Teams of less than or greater than 4 are not allowed. Students should register their teams within the first two weeks of the course. Each team will write a two-page single space report at the end of Game 2 covering both Game 1 and Game 2. In the report, the team will explain how they played the two games, what operations management techniques they used, what were the good and bad decisions they made, what they learned, and what are their suggestions regarding implementation of these types of games. If you decide to drop a member from your team, you need to email him/her and state your reasons in advance, e.g. when Game 1 starts or after the end of Game 1 or Game 2. Operations Management, Asef-Vaziri, Fall 2013 Page 7 Please read the following documents to become familiar with the nature of the games. Overview of the Games Game 1 Game 2 To Purchase. Students can purchase an individual code from the bookstore or online at http://mgr.responsive.net/Manager/ShowClient . Our institution name is "Cal State Univ. Northridge". The product is titled "Littlefield Code for SOM 306". The online price will be $18, payable by MasterCard, Visa, Discover or American Express cards’ To Register. Students can register their teams at http://sim.responsive.net/lt/csun/start.html. To register, they need BOTH the individual code they purchase and the course code which is 'california' (without ' '). The most common problem is entering the code you have bought at the bookstore when you are supposed to be using registration code. On the page you get after entering your registration code, make up a team name and a password and enter both. This is for the first student (the second, third and forth student must follow the team name and password initiated by the first person). On the page after that, you enter your names and individual access codes. Please have your last name first, then a space, then your first name, exactly the same as your last and first name on Portal/DPR. Thanks. To Play. Once the simulator has started, students can access their teams from http://sim.responsive.net/lt/csun/entry.html Exams. There will be a midterm exam, and an “almost” cumulative final exam. Exams are closed book and closed notes, and are a combination of problems and short questions. Please carefully check the dates and times of the midterms and the final exams. No make-up exam is allowed except for medical reasons, and very unexpected situations. Such circumstances must be supported by written evidence. During the exam you may be asked to change your seat. This by no means indicates that you have conducted any act of academic dishonesty. Nevertheless, you must comply immediately. Please note that you cannot have your cell phone at your approach during the exam. An ”on” and approachable cell phone, can make you unqualified of finishing your exam. Thanks for your cooperation. Grading (A) (A-) (B+) 93-100 88-92 86-87 Operations Management, Asef-Vaziri, Fall 2013 Page 8 (B) (B-) (C) (D) (F) 83-85 80-82 70-79 60-69 0-59 Academic integrity. Academic integrity is a core value at CSUN. As such, students are expected to perform their own work (except when collaboration is expressly permitted by the professor). When practiced, academic integrity ensures that all students are fairly graded. Academic dishonesty, however, undermines the educational process and must not be tolerated. Simply stated, academic dishonesty is the intentional use or attempted use of unauthorized material, information, or study aids on academic exercises. Academic dishonesty demonstrates a lack of respect for oneself, fellow students, and the professor. It can ruin the university’s reputation and the value of the degree it offers. We all share the obligation to maintain an environment which practices academic honesty. All students need to sign and date the last page of this syllabus and submit it to Dr. Asef in the first week of classes. SOM Tutoring Room JH 4120 Schedule. SOM Tutoring services is available at the following days and hours in JH4120. MW 9-6:30 T 9-12 and 1-3 Th 9-12 and 1-6:30 F 9:30 - 1:30 The TA who has more knowledge on my course is John Khamneipur , john.khamneipur.777@my.csun.edu, his office hours are Monday 9am - 1pm Monday 4:30pm - 6:30pm Wednesday 9am - 1pm For topics such as Process Flow and Waiting Line, John is the best one to meet with. For other topics all TAs are good. Honor Students tutoring Honors students provide free tutoring to students enrolled in COBAE lower division and upper division required classes. Tutoring will be offered Fall 2013 from Monday September ?? to Friday, November ?? at Juniper Hall room ??? Appointments can be made anywhere from 2 to 14 days in advance beginning September 8. Tutors may be available Monday-Thursday 8 a.m. to 7 p.m. and Friday 9 a.m. to 5:30 p.m. Specific times may differ by course since the Business Operations Management, Asef-Vaziri, Fall 2013 Page 9 Honors student tutors volunteer their time based on their own school and work schedules. Please go to the business honors association website at http://www.csun.edu/bha. Click on the “book now” icon on the right side of the webpage and follow the instructions. Your confirmation email provides you with the link you need to cancel your appointment. Cancellations are made online. If you cancel, you must cancel 10 hours in advance of your appointment. Please cancel as soon as possible so another student can benefit from that time slot and your tutor can plan accordingly. Schedule of Classes Disclaimer: This syllabus is an invitation for students to engage in an exciting and interactive study of operations management. The intention of the SOM 306 course is to provide you with information, offer practice with skill sets, and enhance your capacity to use fundamental concepts of operations management. To that end, modifications to subjects and dates of this syllabus, except for exam dates, might be warranted as determined by the professor as he assess the learning needs of this particular class of students. Due to modifications in this schedule the students are responsible to check Moodle one hour after each class session. Statement of Reading and Understanding Syllabus SOM 306 Asef-Vaziri Last Name First Name I acknowledge that I have read and understood the syllabus of the course SOM 306, taught by Dr. Asef, very carefully. I, hereby, commit myself to follow it in its entirety. I restate the followings: 1. I will not use my cell phone in the classroom, except in the case of emergency. In addition, I will not use my laptop or tablet during lectures except for viewing the SOM 306 lecture and assignment slides provided by Dr. Asef and their related computations. 2. I commit myself not to create background noise or disturb the learning environment during the lectures. 3. I understand coming to class just to be marked as present and leaving the class before the lecture ends is a case of academic dishonesty. If I need to leave the Operations Management, Asef-Vaziri, Fall 2013 Page 10 classroom before the lecture ends (except in case of emergency), I will inform Dr. Asef at the beginning of the lecture in a written note. 4. I have been informed that Dr. Asef encourages teamwork, especially on solving the assignments and preparation for quizzes. However, I have been also informed if I share any information on a quiz to a fellow student who has not taken the quiz yet, or if provide such a student with a tool that I have realized its value after taking the quiz, my grade and the other student(s) grade could be set to zero for one quiz or for all quizzes. 5. I have read and understood the CSUN Student Conduct Code, printed in the schedule of classes and the CSUN policy on Academic Dishonesty (2010-2013 Catalog, Appendix E, Student Conduct). I verify that all of the work I submit in the quizzes and exams will be my own. I understand the Student Core Values are: Respect, Honesty, Integrity, Commitment, and Responsibility. ____________________________________________________ Signature Operations Management, Asef-Vaziri, Fall 2013 __________________ Date Page 11 W 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 D M W M W M W M W M W M W M W M W M W M W M W M W M W M W M W M Date 8/26 8/28 9/2 9/4 9/9 9/11 9/16 9/18 9/23 9/25 9/30 10/2 10/7 10/9 10/14 10/16 10/21 10/23 10/28 10/30 11/4 11/6 11/11 11/13 11/18 11/20 11/25 11/27 12/2 12/4 12/9 Final Exam In Class Introduction Process and Strategy Labor Day Job Shop and Flow Shop Moving Average Exponential Smoothing Regression Process Flow Analysis Process Flow Analysis Waiting Line- Process Waiting Line Analysis- Buffer Waiting Line Analysis- Buffer Waiting Line Analysis- Buffer Waiting Line Analysis Mid Term Solution to Mid Term Inventory Models Basics Inventory Discount Model Re-Order Point ROP (Game 1 Starts) The Newsboy Problem Theory of Constraints Veteran's Day Theory of Constraints Linear Programming No Class- Thanksgiving Sensitivity Analysis (Game 2 Starts) LP and SA Aggregate Planning Globalization Course Wrap-up 12/16/2013, Monday 12:45 pm - 2:45 pm In God we trust; all others must bring data. W. Edwards Deming 1900-1993. Operations Management, Asef-Vaziri, Fall 2013 Page 12