Företagsekonomiska institutionen
Stockholm Business School
Study Guide
Course
Operations strategy
Semester
Autumn semester 2023
Course Director
Course Coordinator
Mandar Dabhilkar
mandar.dabhilkar@sbs.su.se
Victoria Bergman
Victoria.Bergman@sbs.su.se
(questions regarding Athena, TimeEdit,
seminar group registration, schedule,
grade reporting, registration, exemplary
earlier exams etc.)
Content
1.
Course Content
1
2.
Intended Learning Outcomes
1
3.
Education
2
4.
Forms of Examination
2
5.
Literature
7
6. Cheating and Plagiarism
7
7.
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Additional Information
1. Course Content
back to Content
This course takes a strategic perspective on the management of operations. Managing
operations is a central task in future careers of business students in public and private
sectors, in services and manufacturing, in Sweden and around the world. It is especially
central in organisations where operations is seen as a core value creating function or
source of competitive advantage. The course focuses on both content and process of
formulating operations strategies. Content refers to decisions regarding capacity, supply
network design, process technology and development and organisation. Process refers
to how a strategy is formulated, implemented, monitored and controlled. Other topics
that are touched upon include project management, sustainability, supply chain
management, lean, value-based healthcare, outsourcing, quality management and
continuous improvement.
2. Intended Learning Outcomes
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The course gives a comprehensive understanding and knowledge on the strategic
management of operations in different types of sectors such as health care, government
authorities, retailing, banking and manufacturing. Student will be able to analyse
operations systems as well as participate in, improve and lead change efforts. Upon
completion of the course, students should be able to:
Knowledge and understanding
1. Describe why and how operations can be used to enhance the competitiveness
or value offer in organisations.
2. Explain and problematize basic and advanced concepts in the field of
operations strategy.
3. Demonstrate knowledge of some of the subject area’s scientific basis and
research methodology
Skills and abilities
4. Personally use methods, models and theoretical perspectives in real life
situations to analyse and improve operational performance.
5. Orally and in writing, present and discuss course content.
Judgement and approach
6. Evaluate organisational situations in relation to the external environment and
make appropriate operational decisions.
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3. Education
back to Content
The course workload is 200 hours equivalent to 7,5 ECTS (40 hours per week equivalent
to 1,5 ECTS).
Link to schedule can be found on Athena.
Activity
Content
Readings
Lecture 1
Course information
Course syllabus
Study guide
Introduction to operations strategy
Operations performance
#1 (chapter 1)
#1 (chapter 2)
Lecture 2
Improvement strategy
#1 (chapter 7)
Seminar 1
Focused factory in healthcare
#2 #3
Lecture 3
Socially responsible operations
Purchasing and supply strategy
#1 (chapter 3)
#1 (chapter 5)
Seminar 2
Operational transformation and
improvement
#4 #5
Lecture 4
Capacity strategy
Process technology
#1 (chapter 4)
#1 (chapter 6)
Seminar 3
Sustainable supply management
#6 #7 #8
Lecture 5
Formulation and implementation
Monitoring and control
#1 (chapter 9)
#1 (chapter 10)
Seminar 4
Outsourcing, make-buy decisions
#9 #10 #11 #12
Final
examination
4. Forms of Examination
back to Content
Assessment
Assessment for the course is continuous and is carried throughout the different course
activities. Each assessment task is weighted in relation to its importance in the overall
assessment of the course. The student’s results from the different assessment tasks are
added up to a total course score that translates into the final grade for the course.
The course contains the following weighted assessment tasks:
1.
Individual final examination: assesses intended learning outcomes number 1,
number 2, number 3; constitutes 60% of total course points.
2. Seminar assignment 1: assesses intended learning outcomes number 4, number 5,
number 6; constitutes 10% of total course points.
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3. Seminar assignment 2: assesses intended learning outcomes number 4, number 5,
number 6; constitutes 10% of total course points.
4. Seminar assignment 3: assesses intended learning outcomes number 4, number 5,
number 6; constitutes 10% of total course points.
5. Seminar assignment 4: assesses intended learning outcomes number 4, number 5,
number 6; constitutes 10% of total course points.
Individual final examination
Assesses chapters in Slack and Lewis that are marked as “readings” for each lecture.
Seminar 1 – Focused factory in healthcare
Prior to the seminar / Entry ticket
Read the case:
#2 Managing orthopaedics at Rittenhouse Medical Center. HBS case: 9-607-152.
Read the article:
#3 Dabhilkar M. and Svarts, A. (2019). From general to specialty hospitals:
operationalising focus in healthcare operations, Operations Management
Research, vol 12, issue 1-2, pp 94-111.
Answer the following questions using PowerPoint:
1. Please compare and describe the 3B orthopaedics model and the typical
procedures performed by the faculty practice surgeons with reference to the
following terms that you find in your textbook, lecture notes and the above
mentioned articles: 4Vs, performance objectives, Hayes and Wheelwright’s four
stage model, product/process matrix, order-winning and qualifying factors,
product/service life cycle effects, trade-offs, the efficient frontier, types of focus,
process types, layout.
2. Which is better of the two models? What are the key criteria for your
assessment?
3. Do you find the “operation-within-an-operation” concept relevant to the case?
4. Do you find Dabhilkar and Svarts’ dimensions of focus relevant to the case?
5. How is Stockholm County Council (SLL/Region Stockholm) trying to implement
the concept of focus in healthcare (see eg Dabhilkar and Svarts, 2019)?
Use the illustrations in the book, articles and lecture slides. Copy them or take a
picture with your phone.
Upload your answers in PowerPoint (pdf) on Athena before the seminar begins.
At the seminar
Compare your ideas with findings of other students in small group discussions.
Possibly revise and improve your work. Orally present revised answers to the above
questions in class (you are encouraged to use PowerPoint). Upload a revised version
of your answers on Athena.
Seminar 2 – Operational transformation and improvement
Prior to the seminar / Entry ticket
Read the case:
#9 Brigham and Women’s Hospital: Shapiro Cardivascular Center. HBS case 9-608175
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Read the article:
#5 Porter M. and Lee T. (2013) The strategy that will fix health care, Harvard
Business Review, vol 91, issue 10, pp 50-70
Answer the following questions in PowerPoint:
1. Why is BWH developing the Shapiro Center?
2. How does integrating care create value for patients? For providers?
3. What is the difference between the current model of delivering cardiovascular
care at BWH and the Shapiro Center? Please sketch the patient flows for the
different models. Try to estimate how much time the patient spend at each
process step as well as between each step.
4. Why has integration of cardiovascular care been so difficult for BWH?
5. What would you recommend to Dr Gottlieb and the Cardiovascular Council about
next steps in developing the center and specifically, about the issues raised at the
end of the case?
6. What changes would you recommend in the areas of (1) the organization and
incentive structure within hospitals and (2) public policy to facilitate the
development of more integrated models of care delivery across the broader
provider community?
7.
How are the six components of Porter and Lee’s value agenda related to the case?
Illustrate the components in view of the case description when applicable.
8. What are the differences and similarities between value-based healthcare and
other operational approaches to operations improvement such as lean, TQM, BPR
and six sigma?
Upload your answers (PowerPoint, pdf) on Athena before to the seminar begins.
At the seminar
Compare your ideas with findings of other students in small group discussions.
Possibly revise and improve your work. Orally present revised answers to the above
questions in class (you are encouraged to use PowerPoint).
Upload a revised version of your answers on Athena.
Seminar 3 – Sustainable supply management
Prior to the seminar / Entry ticket
Read the two IKEA cases:
#6 IKEA’s Global sourcing challenge: Indian rugs and child labor (A). HBS case:
906-414.
#7 IKEA’s Global sourcing challenge: Indian rugs and child labor (B). HBS case:
906-415.
Read the article:
#8 Dabhilkar, M., Bengtsson, L. & Lakemond, N. (2016) Sustainable supply
management as a purchasing capability: a power and dependence perspective,
International Journal of Operations & Production Management, Vol 36, Issue 1,
pp 1-22.
Complete the questions below for the “A” case before reading the “B” case
After reading the ”A” case answer the following questions:
1.
In which quadrant of the Kraljic matrix would you place the purchasing category
(carpets)? While answering all questions below, take into consideration which
purchasing category it is and what implications that may have. Use the findings in
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Dabhilkar et al (2016) to understand implications of various purchasing
categories.
2. How should Marianne Barner respond to the invitation for IKEA to have a
representative appear on the upcoming broadcast of the German video program?
3. What actions should she take regarding the IKEA supply contract with Rangan
Exports?
4. What long-term strategy would you suggest she take regarding IKEA’s continued
operations in India? Should the company stay or should it exit? What would the
impact of such decision be and how would you manage it?
After reading the ”B” case answer the following questions:
1.
2.
3.
4.
5.
6.
How appropriate were the various actions that IKEA management took in
response to the crisis of 1995 as described in the (A) case?
What is your evaluation of the IWAY policies and practices that have redefined
IKEA’s relationship with its suppliers? What benefits do you see? What concerns
do you have?
What does the recent audit of Venkat Industries tell us about the effectiveness of
IKEA’s overall approach to dealing with the problem of child labor in its supply
chain?
What should Marianne Barner recommend to Kaisa Mattson in dealing with
Venkat Industries’ recent audit result?
What long-term changes in IKEA’s philosophy, policies, and practices should she
recommend to Anders Dahlvig?
Use relative power and total interdependence as theoretical lens to explain some
aspects in the case that you find particularly relevant or interesting.
Upload your answers on Athena before to the seminar begins.
At the seminar
Compare your ideas with findings of other students in small group discussions.
Possibly revise and improve your work. Orally present revised answers to the above
questions in class (you are encouraged to use PowerPoint).
Upload a revised version of your answers on Athena.
Seminar 4 – Outsourcing, make-buy decisions
Prior to the seminar / Entry ticket
Read the case:
#9 Scotts Miracle-Gro: The spreader sourcing decision. Ivey School of Bus/UWO.
HBS case: 908M78.
Read the articles:
#10 McIvor, R. (2008) What is the right outsourcing strategy for your process?
European Management Journal, vol. 26, pp 24-34.
#11 Platts, KW, & Song, N. (2010). Overseas sourcing decisions–the total cost of
sourcing from China. Supply Chain Management: An International Journal,
15(4), 320-331.
#12 Dabhilkar, Mandar. (2011). Trade-offs in make-buy decisions. Journal of
Purchasing and Supply Management, 17(3), 158-166.
Answer the following questions:
1. What is the manufacturing process that is considered for outsourcing to China?
Does it have high or low asset specificity?
2. What are the strategic risks and benefits of outsourcing production of the
Temecula plant to a contract manufacturer(s) in China?
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3. Use McIvor’s framework and select a sourcing strategy for the production of the
Temecula plant.
4. Initiate a total cost of ownership analysis of staying in Temecula and outsourcing
to China. Calculations does not have to be very exhausting. It is more important
to try to understand factors that should be included in the analysis. Platts and
Song’s article may help as inspiration. Also list important factors that cannot be
included in the financial analysis. Provide a brief assessment of the offshoring
option as well. (If you know how to – please make a NPV analysis and include a
summary in your PowerPoint. Details can be uploaded in a separate excel file.)
5. What are the potential trade-offs in performance objectives if outsourcing
Temacula operations to China? That is, what are the possible competitive
priorities for Scotts-Miracle Gro and what are the stated goals with outsourcing?
Are these likely to be achieved for Scotts-Miracle Gro given the findings in
Dabhilkar’s (2011) article? (Guide: consider if Scott’s product is Functional or
Innovative according to Fisher’s matrix)
6. What should Scotts do? Defend your answer.
Upload your answers on Athena before to the seminar begins.
At the seminar
Compare your ideas with findings of other students in small group discussions.
Possibly revise and improve your work. Orally present revised answers to the above
questions in class (you are encouraged to use PowerPoint).
Upload a revised version of your answers on Athena.
Grading
Grades are based on two parts:
1. Literature examination. The exam can give up to maximum 100 points.
Constitutes 60% of total examination.
2. Continuous assessments, 100 points each, constitutes 40% of total examination.
Active participation in seminars according to specified requirements for each
seminar. There are four seminars. These seminars can only be performed during the
course. Seminars are only valid for the present semester.
Grade
≥ points
A
90
B
80
C
70
D
60
E
50
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5. Literature
back to Content
1. Slack and Lewis (Latest edition) Operations strategy, Pearson
education Limited, Harlow, England.
2. Managing orthopaedics at Rittenhouse Medical Center. HBS case: 9607-152.
3. Dabhilkar M. and Svarts, A. (2019). From general to specialty hospitals:
operationalising focus in healthcare operations, Operations
Management Research, vol 12, issue 1-2, pp 94-111.
4. Brigham and Women’s Hospital: Shapiro Cardivascular Center. HBS
case 9-608-175
5. Porter M. and Lee T. (2013) The strategy that will fix health care,
Harvard Business Review, vol 91, issue 10, pp 50-70
6. IKEA’s Global sourcing challenge: Indian rugs and child labor (A). HBS
case: 906-414.
7. IKEA’s Global sourcing challenge: Indian rugs and child labor (B). HBS
case: 906-415.
8. Dabhilkar, M., Bengtsson, L. & Lakemond, N. (2016) Sustainable supply
management as a purchasing capability: a power and dependence
perspective, International Journal of Operations & Production
Management, Vol 36, Issue 1, pp 1-22.
9. Scotts Miracle-Gro: The spreader sourcing decision. Ivey School of
Bus/UWO. HBS case: 908M78.
10. McIvor, R. (2008) What is the right outsourcing strategy for your process?
European Management Journal, vol. 26, pp 24-34.
11. Platts, KW, & Song, N. (2010). Overseas sourcing decisions–the total
cost of sourcing from China. Supply Chain Management: An
International Journal, 15(4), 320-331.
12. Dabhilkar, Mandar. (2011). Trade-offs in make-buy decisions. Journal of
Purchasing and Supply Management, 17(3), 158-166.
Link to buy HBS case material:
https://hbsp.harvard.edu/import/1082395
6. Cheating and Plagiarism
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Cheating and plagiarism is a very serious offense at Stockholm Business School. All staff
are obliged by law to report all suspicions of cheating to the Vice Chancellor at Stockholm
University, as a matter for the Disciplinary Committee at Stockholm University.
According to the Higher Education Ordinance (chapter 10, section 1), disciplinary action
may be invoked against students who “by the use of prohibited aids or other means
attempt to deceive during examinations or other forms of assessment of student
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performance”.
E.g. Cell phones during “sit in” exams (written examination) are strictly forbidden, as
well as notes, dictionaries and other prohibited aids. Read the cover of your “sit in” exam
carefully to find out what aids are prohibited during your exam.
Plagiarism is a form of cheating or deceit. The ordinance covers all types of graded work,
such as written examinations, take-home examinations, quizzes and written
assignments, as well as unauthorized collaboration in connection with such work.
Plagiarism refers to the deliberate use of someone else’s work, regardless of whether this
work has been published, and passing it off as your own without marking quotations or
indicating the source. Self-plagiarism refers to the deliberate use of self-written text for
another course without marking quotations or indicating the source.
Plagiarism involves:
•
•
•
•
•
•
paraphrasing (a restatement of the meaning of a text or passage using other
words) someone else’s text without referencing the original
paraphrasing or rewriting someone else’s text and referencing the original, but
where the rewrite is non-existent or too close to the original
reusing other students’ work, e.g. seminar assignments, take-home
examinations, essays or papers without referencing the original
reusing self-written text, so called “self-plagiarism”, without referencing the
original
using text from articles, books, websites or other types of documents available
on the Internet without referencing the original
translating a text from one language to another without referencing the original.
Stockholm Business School uses the text comparison tool Urkund to verify the originality
of graded texts. Because of this, students should regularly and according to academic
practice carefully reference their use of their own and other people’s sources. All
assignments submitted via Athena forums are checked for originality through Urkund.
7. Additional Information
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Exemption from an assessment task is granted if the student presents a valid reason and
a written certification (illness and a medical certificate), whereupon the student may resit the assessment task at a later date while maintaining previously acquired course
points.
Application for exemption should be submitted to the Director of Studies immediately
after or during planned absences, well before the date when the assessment task is
carried out. A granted exemption expires at the end of the immediately following
semester.
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