MGTA 341 Managerial and Manufacturing Decisions Updated April 3, 2006 Instructor: Mr. Dale Manke Office Phone 865-2815 ext. 8123 Home Phone 725-5744 E-mail manked@evangel.edu Course Description: Students will apply quantitative techniques, using mathematical models, to assist in the decision-making function of management. Course Objectives: At the completion of this course the student will: Prior to and during session one 1. Develop an understanding of the strategic importance of operations and how operations can provide a competitive advantage in the marketplace. 2. Recognize the relationship between operations and other business functions, such as Marketing, Finance, and Human Resources 3. Identify the product design process and the concept of a product’s life cycle. 4. Schedule services and projects with CPM/PERT 5. Identify the various ways in which technology can be used in a manufacturing company and service operations. Prior to and during session two 1. Define quality from the customer’s perspective. 2. Identify the various elements that comprise TQM. 3. Describe different ways to measure capacity. 4. Organize quantitative models for operations and capacity planning 5. Identify various factors, in waiting lines, that can affect customer satisfaction 6. Analyze the factors affecting location and layout choices including the Transportation Model, Factor Rating and Center of Gravity. Prior to and during session three 1. Identify the requirements for the establishment of a successful supply chain. 2. Forecast demand and measure forecast accuracy 3. Recognize key characteristics of materials management including independent demand items and calculate EOQ. Prior to and during session four 1. Demonstrate how aggregate planning links long-term strategic planning and short-term scheduling. 2. Identify key characteristics of materials management including dependant demand items. 3. Justify just-in-time manufacturing 4. Calculate optimal points using Linear Programming and Decision Making models (supplements A and I) Prior to and during session five 1. Complete a case study analysis. 2. Discuss the principles learned in operations management. 3. Summarize ways to make application in your workplace. Required Materials: Text: Foundations of Operations Management Ritzman, Larry P. & Krajewski Lee J. First edition 2003, New York: Prentice Hall. Calculator: Texas Instruments BA-II Plus (Not required for this class, but you will need this calculator for Finance Fundamentals). Grade Determination Grades will be assigned according to the new scale found on page 38 in the 2004-2006 catalogs. Grades will be determined according to the following point distribution Chapter problems 280 Attendance/Participation 100 (20 per night must be present) Case Analysis 80 Course Exams 400 Total 860 Please use the grid provided to track your grade Points Points Assignment Week Possible Earned Chapter problems 1 40 Participation 1 20 Chapter problems 2 40 Participation 2 20 Course Exam 2 100 Chapter problems 3 80 Participation 3 20 Course Exam 3 100 Chapter problems 4 60 Participation 4 20 Course Exam 4 100 Chapter problems 5 60 Case Analysis 5 80 Participation 5 20 Course Exam 5 100 Total Points 860 Assignments The assignments for this module are designed to enable you to apply text theory to your current work position and continue you personal professional development. The practical nature of the Evangel University degree completion program is designed for learners to apply text theory to real-live situations. Accordingly, please be prepared to share assignments with your colleagues during class time. During the next five weeks you will be doing work-related operations. All written homework should be presented in a professional manner. Please use the following format guidelines: 12-point font with 1” margins single-sided and single-spaced. Always include appropriate headings to your papers, no cover page, and include your name and school number. Finish each assignment separately for easier grading. All written assignments are to be one page in length unless otherwise stated. In-class activities may be handwritten and informal. Please be prepared to discuss the objectives contained in the assigned readings. You may call or e-mail me with any questions you may have while completing the assignments. Homework will be collected each week. There will be an exam at the end of the class session beginning on the second night of class. Week 1 To be completed prior to and submitted on the first night of class. Read – Ritzman and Krajewski, Chapter 1, Competing with Operations Demonstrate that operations management addresses issues in both manufacturing and service organizations. Introduce the application of Operation management as it relates to other functional areas within an organization. Show the impact of a changing and increasingly complex environment on business decision-making. Demonstrate that operations management takes a broader global perspective as companies increase their international activities. Present a historical view of operations management and how it has evolved to its current role in an organization. Define operations strategy and the need for alliance with other functional strategies. Identify the different ways in which the operations strategy can provide an organization with a competitive advantage. Realize the need for a firm to prioritize its operations strategies. Write Analyze your place of work from an operational perspective, and list some strategies your company is currently following. 20 points (must be one full page in length) Read – Ritzman and Krajewski, Chapter 2, Process Management Describe the main process decisions and how they must relate to volume. Explain when less vertical integration and more outsourcing are appropriate. Describe how resource flexibility supports competitive priorities. Identify the different ways that customer contact can affect a process. Explain the meaning of automation and economies of scope. Describe the key elements of process reengineering and analyze a process for improvement. PROBLEM pp 56 #2, 20 points, (processes have ranged from washing your hair, to baking cookies, to changing a tire, to checking out a book from the library). Read – Ritzman and Krajewski, Chapter 3, Managing Project Processes Recognize that project management involves both people skills and technical skills. Explain the role of the project manager in organizing and coordinating all activities performed in a project. Introduce critical path scheduling as a tool for identifying activities that require attention. Identify the time-cost trade-offs involved in expediting the completion of a project. Read – Ritzman and Krajewski, Chapter 4, Managing Technology Identify the three primary areas of technology. Describe enterprise resource planning systems and how they impact an organization. Demonstrate the different ways in which technology can be integrated into service operations. Present a framework for defining the different types of e-services that are currently being offered. Week 2 To be completed prior to and submitted on the second night of class. PROBLEMS from the first night discussion. Chapter 3, Managing Project Processes PROBLEMS pp 82 #1 & 2, 20 points & Chapter 4, Managing Technology PROBLEMS pp 106 #2, 20 points. Read – Ritzman and Krajewski, Chapter 5, Quality Present a framework for the development of TQM within an organization. Define the various elements that comprise the cost of quality. Identify the various tools that can be used to assess and improve the quality process Introduce the Malcolm Baldrige National Quality Award and its criteria for evaluating companies. Introduce the ISO 9000 standards. Read – Ritzman and Krajewski, Chapter 6, Capacity. Present alternative strategies for increasing the capacity within an organization. Discuss long and short-term strategies to ease bottlenecks. Explain the reasons for economies and diseconomies of scale. Describe ways to measure capacity. Calculate capacity utilization. Read – Ritzman and Krajewski, Chapter 6s, Waiting Lines Introduce the major characteristics that exist in waiting lines. Describe how waiting lines can impact a customer’s waiting time. Identify the various constraints which waiting line theory requires for the results to be valid. Organize waiting line theory in the form of a set of equations that represent various types of waiting line configurations, which can be encountered. Read – Ritzman and Krajewski, Chapter 7, Location and Layout Identify the various factors that should be taken into consideration when selecting a location. Introduce a framework for evaluating alternative site locations Identify the different types of facility layouts. Define the various steps and elements that are involved in balancing an assembly line. Discuss the current trends in facility layouts given today’s shorter product life cycles and the customer’s increasing desire for customized products. Week 3 To be completed prior to and submitted on the third night of class. PROBLEMS from the second night discussion. Chapter 5, Quality PROBLEMS pp 149 #1, 20 points; Chapter 6, Capacity. PROBLEMS pp 177 #3 & 4, 20 points Chapter 6s, Waiting Lines. PROBLEMS pp 200 #1a&c, 20 points Chapter 7, Location and Layout PROBLEMS pp 246 #2, pp 248 #9c, & 10, and pp 251 #19, 20 points Read – Ritzman and Krajewski, Chapter 8, Supply-Chain Management Introduce the concept of supply chain management for both manufacturers and service providers. Present the different factors that have had an impact on the supply chain in recent years. Identify the requirements for the establishment of a successful supply chain. Define in-transit inventory costs and show their impact on the purchasing decision. Read – Ritzman and Krajewski, Chapter 9, Forecasting Identify the five basic demand patterns that combine to produce a demand time series. Introduce the basic concepts of forecasting and its importance within an organization Identify several of the more common forecasting methods. Provide a framework for understanding how forecasts are developed. Demonstrate that errors exist in all forecasts and show how to measure these errors. Read – Ritzman and Krajewski, Chapter 10, Inventory Management Introduce the different types of inventories that can exist in an organization. Identify the various costs associated with carrying and maintaining inventories. Show how the economic order quantity is calculated for each of the different inventory models. Introduce the single-period inventory model and the concept of yield management. Present some of the current inventory management trends and issues that exist in companies today. Week 4 To be completed prior to and submitted on the fourth night of class. PROBLEMS from the third night discussion. Chapter 8, Supply-Chain Management PROBLEMS pp 285 #4, 20 points. Chapter 9, Forecasting PROBLEMS pp 318 #1a.b.c. & 3a.b.c. 20 points Chapter 10, Inventory Management PROBLEMS pp 355 #3 & 4, 20 points Read – Ritzman and Krajewski, Chapter 11, Aggregate Planning and Scheduling Demonstrate how aggregate planning links long-term strategic planning and short-term scheduling. Present alternate strategies for matching supply and demand. Introduce strategies for developing aggregate plans and ways to identify their strengths and weaknesses. Evaluate level, chase and mixed strategies. Identify the major elements of scheduling workers in a service organization. Illustrate how technology can facilitate the scheduling of workers. Read – Ritzman and Krajewski, Chapter 12 Resource Planning Distinguish between independent and dependent demand. Define the various elements that comprise a materials requirements planning (MRP) system. Introduce the fundamental concepts and calculations that drive an MRP system. Identify some of the more common problems that confront managers when installing an MRP system. Describe how MRP related systems are used in service operations. Read – Ritzman and Krajewski, Chapter 13 Lean Systems Introduce the underlying concepts of Just-In-Time (JIT). Identify the differences between Japanese companies and U.S. firms. Identify the various elements that need to be included to successfully implement JIT. Illustrate how many JIT concepts have been implemented in services. Week 5 To be completed prior to and submitted on the fifth night of class. PROBLEMS from the fourth night discussion. Chapter 11, Aggregate Planning and Scheduling PROBLEMS pp 394 #1, 20 points; Chapter 12 Resource Planning PROBLEMS pp 429 #1 & 2, 20 points Chapter 13 Lean Systems PROBLEMS pp 455 #1a. & b., 20 points Read – Case Study This case will be a handout on the first night of class. Answer the questions and come prepared for discussion.