MBA 6233
Operations Management
Fall 2015
(Tuesday 6 – 9:15 PM)
I. Instructor
Dr. Aravind Chandrasekaran – Associate Professor in Management Sciences
Dr. James Hill – Associate Professor in Management Sciences
Office
Telephone
Fax
Email
Office Hours
I.
Fisher 650 & Fisher 620
(614) 292-4223, (614) 292 1272
(614) 292-1272
chandrasekaran.24@osu.edu, hill.249@osu.edu
By Appointment
Course Overview
Operations Management (MBA 6233) is designed to provide a solid foundation and deeper
understanding of how the operations function contributes to ensuring effective and efficient flow
of materials and information within and outside the organization. We will take a broad
managerial perspective emphasizing the strategic impact of the operations decisions and the
interfaces between operations and the other functional areas of the organization. We will look at
the operations function in both service and manufacturing context and investigate how it
provides sustainable competitive advantage along the dimensions of cost, quality, delivery,
flexibility and innovation.
The course will introduce you to several decision making areas in operations, including
operations and supply chain strategy, process design, innovation, quality management, inventory
management and project management. We will mainly rely on cases to learn these concepts and
you will have an opportunity to debate how these might be applied within your organization.
The course will be co-taught by both the instructors who will lead the discussions based on their
areas of expertise. We have “one voice” so please include both the instructors in all the emails
and other discussions.
II. Course Materials
A. Course Packet (CP), available at the OSU bookstore (ISBN: 9781308608662). The
packet contains Harvard Cases and Chapters from Operations and Supply Chain
Management – The Core (Jacobs and Chase). This packet is an essential aid for the
lectures. Make sure you have the right course packet (Check instructor’s name)
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For those who are interested in an eBook, there is an electronic copy of this book
available at McGraw-Hill bookstore (https://create.mcgraw-hill.com/shop/#). Search for
the ISBN: 9781308608679
B. Supplemental Reading (SR): Getting the Right Things Done: A Leader’s guide to
planning and execution. By Pascal Dennis. Lean Enterprise Institute (ISBN: 0-97631526-2) (This is a good reference book for your group projects. It involves casual reading
and I encourage the students to read this book over the holidays)
III. Grading
A. Distribution
B.
30%
Final Exam
25%
Midterm Exam
35%
Group Projects
10%
Class Participation, Simulation and In Class Experiments
Final & Midterm Examinations
Both Midterm and Final Examinations will be a combination of case analysis, essay questions
and problem sets. These exams will be in-class, closed book and closed notes. The material for
these exams can be based on anything covered in the lecture, text, other assigned readings and
videos and guest presentations. You are not required to memorize any formulae (will be given to
you) or concepts but are required to understand and apply these concepts to a given scenario or a
problem.
No make-up, late or early exams will be given, except in the case of medical emergency.
Business related absences are not excused. Students should make arrangements now to avoid
time conflicts.
C.
Cases and Exercises
A combination of Harvard Business School Cases and mini-cases will be used in this course.
You are expected to read these cases before class. Most of your learning will occur in preparing
and discussing these cases.
D.
Group Projects
The purpose of the group project is to allow you to apply (and expand on) the ideas you have
learned in an area that is of special interest to you. We will guide you through these group
projects but we highly recommend 100% involvement among all the group members. Groups are
to consist of up to 6 students only. Any exceptions must be approved in advance. We strongly
suggest you begin working on this project from the first week and delegate tasks amongst your
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group members in an efficient manner. You are also encouraged to continuously check with us
regarding the project scope and deliverables.
There are three updates (A3s) that are due at various points in this course (Refer syllabus for the
due dates and the nature of these updates). There will also final presentation at the end of the
course which accounts for 20% of your project grades. We may have other faculty and industry
representatives evaluating your presentation (other than student and my evaluations).
Each group is required to turn in your fully developed A3 at the end of the quarter. You can
always include additional documents, analyses as appendix. We will give you more information
regarding the nature of the reports during the course. The grade break down for your project will
be as follows:
Final A3:
Three Project Updates:
Final Group Presentation:
50%
30% (10% each)
20%
Each group member will be asked to turn in a confidential assessment of their own contribution
as well as the contributions of each of their other group members. These assessments will be
used to modify the individual member grades where obvious differences in effort and
participation amongst group members exist.
The topic for your project can be based on the following two options:
Option 1: Operational Diagnosis and Problem – Solving
This type of project involves a specific application of methodology from the class to
solve a specific operational issue within your company. Examples of projects in this option
would be to value stream map your company’s specific process (current and future state),
applying PDCA/ DMAIC to a particular operational issue within your company, Evaluating
inventory/ capacity decisions/ service levels for a particular product/ services rendered by your
company etc.
Successful projects in this category would involve detailed diagnosis and plans for
recommendation. Examples from previous year topics include: Huntington Bank Post Approval
Loan Closing Process, Improving patient intake process at OSU College of Dentistry, Reducing
lead time on the fashion inspired Body Lotion etc
Option 2: New Service/ Manufacturing Business Operations Plan
For the entrepreneurial students in the class, this is your opportunity to lay out an
operations strategy and operating plan with supporting analyses for a new service/ manufacturing
business. Examples of projects in this category include: Opening a new organic restaurant, New
Service Introduction for Bariatric Surgery Patients, New Ashville Financial Advising Company.
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E. Class Participation, Simulation and In Class Experiments
Your class participation grade will primarily depend on the quality of comments made during
class, particularly during case discussions. Quality of participation, i.e. insightful comments or
questions, is much more important than quantity. Also, a consistent level of participation
throughout the quarter will receive a much higher score than a high level of participation for just
a few classes. You are encouraged to check with me periodically to find about your participation
grade. The following class participation rubric has been developed to evaluate the class
participation. Participation is graded on a scale from 0 (lowest) through 4 (highest), using the
criteria below. The criteria focus on what you demonstrate in class.
Grade
Criteria
0
•
•
Absent
Checking emails or texting during class
1
•
•
•
Present, not disruptive.
Tries to respond when called on but does not offer much.
Demonstrates very infrequent involvement in discussion.
•
Demonstrates adequate preparation: knows basic case or reading facts, but does not show evidence
of trying to interpret or analyze them.
Offers straightforward information (e.g., straight from the case or reading), without elaboration or
very infrequently (perhaps once a class).
Does not offer to contribute to discussion, but contributes to a moderate degree when called on.
2
•
•
•
3
•
•
•
•
•
4
•
•
Demonstrates good preparation: knows case or reading facts well, has thought through implications
of facts.
Offers interpretations and analysis of case material (more than just facts) to class.
Contributes well to discussion in an ongoing way: responds to other students' points, thinks through
own points, questions others in a constructive way, offers and supports suggestions that may be
counter to the majority opinion.
Demonstrates consistent ongoing involvement.
Demonstrates excellent preparation: has analyzed case exceptionally well, relating it to readings
and other material (e.g., readings, course material, discussions, experiences, etc.).
Offers analysis, synthesis, and evaluation of case material, e.g., puts together pieces of the
discussion to develop new approaches that take the class further.
Contributes in a very significant way to ongoing discussion: keeps analysis focused, responds very
thoughtfully to other students' comments, contributes to the cooperative argument-building,
suggests alternative ways of approaching material and helps class analyze which approaches are
appropriate, etc.
Demonstrates ongoing very active involvement.
IV.
Honor Code
Any use of case analyses or any other material in any format from other sections of this course or
any course taught at any time in the past or present will be considered a violation of the honor
code. The Ohio State University and the Committee on Academic Misconduct (COAM) expect
that all students have read and understand the University’s Code of Student Conduct, and that all
students will complete all academic and scholarly assignments with fairness and honesty.
Students must recognize that failure to follow the rules and guidelines established in the
University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.”
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V.
Disability Accommodation
If you need an accommodation based on the impact of a disability, please arrange an
appointment with us as soon as possible. We need to discuss the course format and explore
potential accommodations. We rely on the Office for Disability Services (150 Pomerene Hall)
for assistance in verifying need and developing accommodation strategies. You should start the
verification process as soon as possible.
VIII. Suggestions for surviving and thriving in this course
A.
Ask good (hard) questions and be intellectually involved with the class discussion. Ask
the "next" question. Develop a skeptical approach to the so-called theories and highly touted
"best practices."
B.
Be flexible -- we will try very hard to follow the syllabus exactly -- but we may have to
make a few mid-course corrections.
C.
Come prepared for class -- You should plan on spending approximately seven to ten
hours outside of class for each week (some sessions require more work than others). Outside
class preparation includes reading textbook chapters, reading articles, case preparations, Internet
assignments, group meetings, and homework problems.
D.
Try to keep track of the main ideas discussed in the course and the readings. We will
highlight these as we go through the course and then summarize them at the end.
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MBA 6233 Operations Management
(Refer detailed syllabus for class structure)
Class
Date
Topic
Readings
Part I – Strategy and Process Choice
1
8/25
Introduction and Operations Strategy
(AC & James)
•
Chapters 1 & 2 - Jacobs &
Chase (CP)
Chapters 1,2 & 3 from
Dennis (SR)
•
2
9/1
3
9/8
Competing through Operations & Process Selection
(AC & James)
Due: Project Group Names (Not Graded)
Process Selection Decisions & Mass Customization
(James)
Due: Project Update #1
•
Case: McDonalds
Corporation (CP)
Linking manufacturing
process & product life
cycles (Carmen)
•
•
•
Case: Eastern Gear (CP)
Case: mi Adidas (CP)
•
Decoding the DNA of
Toyota (Carmen) &
Checklist Manifesto
(Carmen)
Chapters 4, 5 & 6 from
Dennis (SR)
Case: Burton Group
(Carmen)
Part II – Lean Thinking & Quality Management
4
9/15
Lean Principles & Introduction to VSM (Current State)
(AC)
•
•
5
6
9/22
9/29
Value Stream Mapping (Future State) & Quality Tools
(AC)
Assign Problem Sets after class
•
Service Quality & Introduction to Six Sigma (AC)
Due: Project Update #2
•
•
•
7
10/6
Managing New Product Development (AC)
•
•
6
Chapters 7, 8 & 9 from
Dennis (SR)
Chapter 10- Jacobs & Chase
(CP)
Case: Northwest Airlines
(CP) & American Airlines
(Carmen)
Case: Six Sigma at 3M
(CP) & Business Week
article (Carmen)
Stages in Product
Development (Carmen)
BMW: The 7-Series Project
(CP)
8
10/20
MIDTERM EXAM (2 hour exam)
Part III – Project Management & Service Design
9
10/27
Project Management & Global Product Development
(AC & James)
•
•
10
11/3
•
Managing Services (James)
Assign Problem Sets after class
•
•
Chapter 5– Jacobs & Chase
(CP)
How to Succeed in
Distributed Product
Development (Carmen)
Notes on the Management
of Queues (Carmen)
Designing Waits That Work
(CP)
Ritz Carlton (CP)
Part IV– Inventory & Supply Chain Management
11
11/10
Inventory Management & Supply Chain Management
(James)
Assign Problem Sets after class
Due: Project Update #3
•
Chapter 11 - Jacobs &
Chase (CP)
12
11/17
Supply Chain Mgmt (James)
•
What is the right supply
chain for your product
(Carmen)
Case: Zara: Fast Fashion
(CP)
•
11/24
Thanksgiving Session – Working on Final A3s
13
12/1
Beer Game Simulation & Barilla
(AC & James)
14
12/8
Student Project Presentations + Course Wrap-up (James
& AC) Due: Final Project A3s
15
FINAL EXAM
7
•
Bring your laptops to class
TBD
MBA 6233 Operations Management
– Detailed Course Outline
Part I – Strategy and Process Choice
August 25
1. Introduction & Operations Strategy
Facilitators: AC & James
Session 1 & 2 – Introduction and Operations Strategy
Readings:
Chapters 1 & 2 Jacobs and Chase (CP)
Supplemental Reading: Chapters 1, 2 & 3 from Dennis (SR)
Class Topics & Key Learning Concepts:
•
•
•
•
•
Welcome and introduction to operations, class structure, procedures and assignments
Role of operations and its relationship to other functional areas
Discuss operations and supply chain strategy and their components
Order Winner and Order Qualifiers
Project Descriptions & Introduction to A3 thinking
→ Due:
None
September 1
2. Competing through Operations & Process Selection
Session 1 – Competing through Operations
Facilitator: AC
Readings:
Case: McDonald’s Corporation (CP). Please read through the case and answer the questions
below before coming to class.
Case Discussion Questions:
1. What characteristics of McDonald’s production system have been most important in building
its record of success and growth in the industry?
2. What are the key types of flexibility that McDonald’s operations strategy needs to support?
Which does it support and how? Which does it not support well and why?
3. How should McDonald’s respond to changing market conditions?
Session 2 – Process Selection
Facilitator: James
Readings:
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Article: Link Manufacturing Process and Product Life Cycles – By Robert Hayes and Steven
Wheelwright (Harvard Business Review) - See Carmen
Key Learning Concepts:
• Explore in detail how a highly successful company has effectively linked its operations to
its competitive strategy
• Explore the power of operations and how companies defend their industry positions
through operations
• Understand how processes need to be designed to match the volume and variety
characteristics of the products that a company must produce
→ Due:
Project Group Teams (Names, Email addresses) – Not Graded
September 8
3. Process Selection Decisions & Mass Customization
Facilitator: James
Session 1 – Process Selection Decisions
Readings:
Case: Eastern Gear (CP)
Case Discussion Questions:
1. What are the major problems faced by Eastern Gear?
2. What action should Rhodes take to solve his problems?
Session 2 – Mass Customization
Facilitator: James
Readings:
Case: The mi adidas Mass Customization Initiative (CP)
Case Discussion Questions:
1. Has the “mi adidas” mass customization initiative been successful to date? Why and Why
not?
2. What potential problems and opportunities does the current initiative present?
3. Which of the three alternatives do you recommend and why?
Key Learning Concepts:
• How to manage volume and variety
• Extending Product Process Matrix to Service Operations
• Understand the economies of scale and scope
• Advantages and Disadvantages of mass customization
• Design for mass customization
• Extending customization to service
→ Due: Project Update #1: Fill in your A3 template with the following details
•
•
•
Title
Problem Definition (Background) & Current state (if ready)
What are the expected deliverables at the end of your project? (Goals)
9
Part II – Lean Thinking and Quality Management
September 15
4. Lean Principles & Introduction to VSM
Session 1 – Lean Principles
Facilitator: AC
Readings:
Articles: (1) Decoding the DNA of Toyota – By Steven Spear and Kent Bowen (Harvard
Business Review) - See Carmen
(2) Checklist Manifesto – The New Yorker (Carmen)
Supplemental Reading (SR): Read chapters 4, 5 & 6 from Dennis
Session 2 – Introduction to VSM (Current State)
Facilitator: AC
Readings:
Case: The Burton Group (Carmen)
Key Learning Concepts:
• Understand Toyota Production System concepts
• Understand how to accomplish lean operations
• Be familiar with examples of lean concepts applied to service systems
• Understand and develop the current state of a process
• Compute processing time, lead time and utilization for a given process
→ Due: Come prepared to the class reading with pencil and A3 paper. We will develop the
current state map for Burton Group in Class.
September 22
5. Value Stream Mapping & Quality Tools
Session 1- Value Stream Mapping
Facilitator: AC
Readings:
Case: Burton Group Case (Contd.)
Supplemental Reading (SR): Chapters 7, 8 & 9 from Dennis
The Future State Map (Not Graded). Students will develop and present their future state map
for the Burton Group in class. Make sure to include the following information on the Future
State Map.
o
o
o
o
Information & Patient Flows
Processes
a timeline on the bottom showing wait time and value added time
process boxes that show key metrics of the process (i.e., cycle time, change over,
utilization, # of people, # if full time equivalents)
10
Session 2 – Introduction to Quality Tools
Facilitator: AC
Readings:
Chapter 10 from Jacobs & Chase (CP)
Key Learning Concepts:
• Identifying wasteful activities
• Comparing the current state and future state maps and evaluating the benefits
• Common Cause versus Special Cause of Variation
• Control Charts
• Process Capability (Cpk) and their application
→ Due: None. Practice problems posted after class.
September 29
6. Service Quality & Introduction to Six Sigma
Session 1 – Service Quality
Facilitator: AC
Readings:
Case: (1) Northwest Airlines and the Detroit Snow Storm (CP)
(2) American Airlines Fiasco, The New York Times (See Carmen)
Case Discussion Questions:
1. Why all this fuss? How bad was this situation?
2. Exactly what occurred? Did this have to happen?
3. What could NWA have done differently?
4. What should NWA do about this situation?
5. American Airlines – Thunderstorm, Did learning ever occur?
Session 2 – Introduction to Six Sigma
Facilitator: AC
Readings:
Case: Six Sigma at 3M
Supplementary Reading: At 3M, A Struggle between Efficiency and Creativity (See Carmen)
Case Discussion Questions:
1. How should functional areas in the organization be included in the Six Sigma initiative
2. What role should Six Sigma play in corporate strategy
3. How will Six Sigma affect the innovative culture at 3M?
4. Is Six Sigma a threat to innovation? Comment?
Key Learning Concepts:
• Dimensions of Service Quality
• Developing contingency plans
• Six Sigma/ DFSS
• Productivity Dilemma
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→ Due: Project Update #2: A3 Template.
•
•
•
•
October 6
Update on your problem definition and measures
What type of data/ information did you collect? (Current State)
What are the analyses undertaken? Are your analyses/ results robust? (Analyses)
Update on your Goals
7. Managing New Product Development
Session 1 – Innovation & Product development
Facilitator: AC
Readings: Stages in New Product Development (See class website)
Session 2 – Design for Manufacturing
Facilitator: AC
Readings: BMW- The 7 Series Project (CP)
Case Discussion Questions:
1. What are the causes and consequences of BMW’s quality problems with newly launched
products? What should be done to improve “launch quality”?
2. What changes would you recommend in the way BMW develops new models? What
attributes of newly launched products would you expect to improve as a result of these
recommendations? Which attributes might deteriorate?
3. What recommendations would you make to Chairman von Kuenheim regarding BMW’s
strategy to compete against new Japanese entrants into the luxury car market?
Key Learning Concepts:
• Types of Innovation
• Stage Gate Methodology
• Design for Manufacturing
→ Due:
October 20
None. Prepare for your midterm exam.
8. MIDTERM - Timing & Topics for the exam will be
announced in class
Part III – Project Management & Service Design
October 27
9.
Project Management & Global Product Development
Session 1– Project Management
Facilitator: James
Readings:
Chapter 5 from Jacobs & Chase (CP)
12
Session 2 – Global Product Development
Facilitator: AC
Readings:
Article: Putting it together: How to Succeed in Distributed Product Development (Carmen)
Key Learning Concepts:
• Critical Path Method
• Understand how to do project crashing.
• Challenges in managing operations across geographic boundaries
• Coordination mechanisms to counter language and geographic barriers
• Regulations and Other Issues
→ Due: None. Please make sure you read all the articles and be prepared for class
discussion. Practice project management problems (will be posted after class)
November 3
10. Managing Services
Session 1 – Managing Waiting in Services
Facilitator: James
Readings:
Articles (1) Designing Wait That Works (CP)
(2) Notes on the Management of Queues (Harvard Business Review) - See Carmen
Session 2– Strategic Services
Facilitator: James
Readings:
Case: Ritz-Carlton Company (CP)
Case Discussion Questions:
1. “Service” can be an elusive concept. What is the essence of The Ritz-Carlton experience?
What is Ritz-Carlton selling?
2. How does The Ritz-Carlton create “Ladies and Gentleman” in only 7-days?
3. In what may be a first for hospitality industry, Brian Collins, hotel owner, has asked
James McBride, Ritz-Carlton general manager, to lengthen the amount of time spent
training hotel employees before opening. Should McBride lengthen the 7-day
countdown?
4. Or is it the time that McBride should consider a total overhaul of the hotel opening
process? If yes, what should he change and how should he go about doing it? What’s
different about experimenting in a service business?
Key Learning Concepts:
• Process flow measures
• Psychology behind waiting
• Service – Profit Chain
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•
Productivity Dilemma in Service
→ Due: None. Practice problems (will be posted after class)
Part IV – Inventory & Supply Chain Management
November 10
11. Inventory & Supply Chain Management
Session – 1 & 2 Managing Inventory & Introduction to Supply Chain Management
Facilitator: James
Readings:
Chapter 11 from Jacobs and Chase (CP)
Key Learning Concepts:
• EOQ Models
• P Systems and Q Systems and their Application
• ABC Inventory Management
• Independent vs. Dependent Inventory
• Supply Chain Dynamics
→ Due:
Project Update #3: A3 Template
•
•
•
Complete Analyses based on your data (Analyses)
Countermeasures (Improvement)
Preliminary insights on your implementation (Implementation plan)
November 17
12. Supply Chain Management
Session 1 – Matching Supply & Demand
Facilitator: James
Readings:
Article: (1) What is the Right Supply Chain for your product? (Carmen)
Session 2 – Managing Supply Chain Relations
Facilitator: James
Readings:
Case: Zara: Fast Fashion (CP)
Case Discussion Questions:
1. How specifically do the distinctive features of Zara’s business model affect its operating
economics? Specifically, compare Zara with an average retailer with similar posted
prices.
2. Can you graph the linkages among Zara’s choices about how to compete, particularly
ones connected to its quick-response capability, and the ways in which they create
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competitive advantage? What does the exercise suggest about such capabilities as bases
for competitive advantage?
3. Why might Zara fail? How sustainable would you calibrate its competitive advantage as
being relative to the kinds of advantages typically pursued by other apparel retailers?
Key Learning Concepts:
• Discuss the goal of a supply chain and explain the impact of supply chain decisions on
the success of a firm
• Key issues in Supply Chain Management
• Relationship between supply chain metrics & competitive advantage
→ Due: None. Please make sure you read all the articles and be prepared for class
discussion.
December 1
13. Root Beer Game Simulation & Barilla
Session – 1
Facilitator: AC & James
Root Beer Game Simulation. Come Prepared with your laptops to class. Pre-registration required
for the simulation.
Root Beer Game Simulation
This online simulation illustrates how oscillations arise in a simple supply chain and how
variability increases with each link in the supply chain, a dynamic referred to as the "bullwhip
effect." Based on the classic Beer Game developed by Jay Forrester at MIT in the 1960s, this
team based simulation portrays a typical supply chain with each chain (team) consisting of four
players: retailer, wholesaler, distributor and factory. All players have a common goal: To
minimize costs tied up in carrying unnecessary inventory – which could put one out of business –
yet avoiding the cost of inventory shortages.
Harvard charges a minimum fee of $12.50 per student that must be paid online. I will give you a
special registration URL. When you register the simulation will automatically associate you with
the correct school/faculty/course and then require you to purchase your “seat” in the simulation.
Each student must be present for the simulation. During the simulation, I ask that no one
leaves the room.
Session 2 – Barilla (James)
Case Discussion Questions:
1. Diagnose the underlying causes of the difficulties that the JITD program was created to
solve.
2. What conflicts or barriers internal to Barilla does the JITD program create? What causes
these conflicts? As Giorgio Maggiali, how would you deal with these?
3. As one of Barilla’s customers, what would your response to JITD be? Why?
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4. In the environment in which Barilla operated in 1990, do you believe JITD (or a similar
kind of program) would be feasible? Effective? If so, which customers would you
target next? How would you convince them that the JITD program was worth trying? If
not, what alternatives would you suggest to combat some of the difficulties that Barilla’s
operating system faces?
Key Learning Concepts:
• Understanding Bullwhip
• Managing Bullwhip
• Supply Chain Dynamics
December 8
14. Student Presentations
Student Presentations –Day 1
Facilitator: AC & James
Come with your fully developed A3s. We will spend about 10 minutes per group on their A3s
→ Due: Be prepared to turn in your A3.
Session 2 – Course Wrap-up
Key Learning Concepts:
•
•
•
TBD
Operations, Its Everywhere!
Connecting the dots in Operations
Follow up courses in Operations
15. FINAL EXAM
16
Peer Evaluation – Group Projects
(Due before Student Presentations via Email)
Peer evaluations will be a part of your group projects. When you are evaluating the efforts of
yourself and your peers you should take the following actions into account; quality of effort,
quantity of effort, working relationship with group members, and completion of assignments in
a timely fashion.
Evaluations are due before the student presentations. DO NOT hand in the peer
evaluations with your projects. Please complete these evaluations and EMAIL them to the
instructor.
If you believe that everyone contributed equally, you could send the instructor with an
email stating this fact.
Your Name:______________________________
Team Name _____
Group Members (including yourself):
Weight
(out of 100%)
Name: _________________________________
________
Name: _________________________________
________
Name: _________________________________
________
Name: _________________________________
________
Name: _________________________________
________
TOTAL
COMMENTS:
17
100%__