INTRODUCTION TO OPERATIONS MANAGEMENT
Improving Competitiveness in Organizations
Business Management 630
Autumn Quarter 2001
INSTRUCTOR:
OFFICE ADDRESS:
OFFICE HOURS:
E-MAIL:
CLASS: Tues/Thur
5:30pm – 7:18pm
ROOM: SB 330
OFFICE PHONE: 247-6265
Michael Stodnick
251C Fisher Hall
Tues/Thur. 4:15pm-5:15pm and by Appointment
stodnick.1@osu.edu
TEXTS
Operations Management: Strategy and Analysis, Sixth Edition, Krajewski & Ritzman, Prentice-Hall, Inc. 2002
(ISBN # 0-13-061594-3).
Supplementary Packet, available at Copez (292-2219) at Tuttle Park Place (2055 Millikin Way) next to the new
Parking Garage and OSU bookstore. The packet contains class notes and exercises, solutions to the assigned
problems, and cases. Due to the high copyright cost of articles in Business Week, Wall Street Journal, etc. we no
longer use articles in the course note packet. This packet is an essential aid for the lectures and preparing for the
exams.
Course Web Address: http://www.cob.ohio-state.edu/~bm630/
Book Web Address: http://www.prenhall.com/krajewski
COURSE OBJECTIVES
Operations management is an effective competitive weapon that when used in conjunction with wellconceived marketing and financial plans creates value for customers. The core competency of many world-class
organizations such as Federal Express, General Electric, Ritz-Carlton, and Wal-Mart is superior operations and
logistics management. This course is designed to address the key operations and logistical issues in service and
manufacturing organizations that have strategic as well as tactical implications. The specific objectives include:
1. To understand the role of operations management in the overall business strategy of the firm.
2. To understand the interdependence of the operating system with other key functional areas of the firm.
3. To identify and evaluate the key factors and the interdependence of these factors in the design of
effective operating processes and systems.
4. To identify and evaluate a range of tools appropriate for analysis of operating systems of the firm.
5. To identify and evaluate comparative approaches to operations management in an international
context.
6. To understand the application of operations management policies and techniques to service sector as
well as manufacturing firms.
The sessions are designed to promote student participation through the discussion of current events in the
business world as they relate to operations management and in-class case analysis.
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EVALUATION
Your course grade will be determined in the following way:
Mid-term Exam
Case Reports (2 at 10% each)
Final Exam
Class Participation
Total
30%
20%
35%
15%
100%
An important part of the course is the effectiveness of your individual participation in the class discussions. While
we expect a minimum level of participation by every member of the class, we will place primary emphasis on the
quality of the classroom contributions. In grading class performance, we will give very little emphasis to
redundant or extraneous contributions. Contributions that add new insights into the case issues or class discussions,
or which build on the work of others in advancing the discussion, will be rewarded.
EXAMINATIONS
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The exams are closed book, closed notes.
Formula sheets (included in the student course packet) are given on the exams.
Each exam will be a combination of conceptual questions and problem solving. An example of typical
questions can be found on the web site. The material could be based on anything covered in the lecture, text,
other assigned readings, video, or guest presentations.
Each student must bring their own calculator and writing instruments. Sharing of materials is prohibited.
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.
Each exam is 90 minutes in length. Each exam covers about ten classes and the exams are NOT
comprehensive.
The exams are to represent only the work of the individual student. No outside assistance (discussion with
peers, cheat sheets, etc.) is permitted. See below for discussion on academic misconduct.
ACADEMIC MISCONDUCT
Any material submitted for course credit must be your own work if it is an individual-based assignment, or the
work of your team if it is a group-based assignment. Students are not permitted to discuss, read, etc. the work,
thoughts, and ideas regarding the case or exams with other students (or another team for case work). If outside
references are used, they must be properly referenced. Also, with the case work, it is recommended that you take
action to protect your work, such as collecting your materials from the lab printers and disposing of rough drafts at
home. Case write-ups that are similar to current or past case write-ups can get you and your teammates in serious
trouble, so please do your own work as an individual or when required as a team.
Academic misconduct is a serious threat to the integrity and value of your degree.
Procedures:
1. Suspected cases of academic misconduct will be reported to the University Academic Misconduct Committee.
2. Typical penalties include an E in the course and disciplinary probation for a first offense and dismissal from the
University for a second offense.
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COURSE OUTLINE
COMPETITIVE ENTERPRISES
9/20/01
Course Introduction & Overview of Operations Management
Video: Au Bon Pain
K&R Chp 1, pp. 1-27
Operations as a Competitive Weapon
9/25
Operations Strategy
Operations Strategy Framework
Case: "Too Short the Day"
K&R Chp 2, pp 29-43
Supplementary Packet (SP)
PROCESSES
9/27
10/2
10/4
Process Choice
Issues in Process Choice
Process Tradeoffs
Video: King Sooper's Bakery
K&R Chp 2, pp 43-60
K&R Chp 3, pp 91-102
Process Design
Breakeven Analysis/Decision Making
Process Reengineering
Case: Custom Molds, Inc.
Homework: Problems 1, 2, 5, 6, 7 (Chp 2, Supplement A)
K&R Chp 2, Suplmt. A, pp 67-72
K&R Chp 3, pp 102-135
K&R pp 135-137
K&R pp 85-87
Project Processes and Management
Projects (Do not cover cost-time tradeoffs and PERT)
Homework: Problems 1, 2, 5
K&R Chp 4, pp. 139-154
K&R pp 179-180
TOTAL QUALITY MANAGEMENT
10/9
Customer-Driven Manufacturing and Total Quality Management
Case: Waste Management Incorporated
(SP)
Additional Reading: “Customer-Driven Manufacturing”
(SP)
Video: TQM at the Ritz-Carlton
Total Quality Management
K&R Chp 6, pp 241-250
10/11
Implementing an Advertising Program
Be ready to discuss and/or present in class and hand in.
WRITTEN TEAM CASE DUE: Big-A-Cola Company.
Use the Activity-On-Node (AON) approach for case.
10/16
Quality Improvement
Evaluating Quality Performance
Homework: Problems 1, 2, 3, 4, 11, 12
Case: Cranston Nissan
SP
K&R Chp 6, pp 250-276
K&R pp 273-274
K&R pp 276-278
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TOTAL QUALITY MANAGEMENT
10/18
Quality Analysis
Statistical Process Control
Homework: Problems 4, 5, 7, 8, 13 (σ=.0669), 15, 16
K&R Chp 7 pp. 281-312
K&R pp 313-319
STRATEGIC ISSUES IN OPERATIONS
10/23
10/24
Capacity Management and Exam Review
Determining Capacity Requirements
Homework: Problems 2, 5, 6, 7
K&R Chp 8, pp 323-356
K&R pp 351-353
COMMON MIDTERM EXAM – October 24 is Wednesday! To cover material from
9/19/01 through 10/18/01. Location to be announced, Time: 5:30-7:18 pm.
10/25
No Class this Thursday due to mid-term exam.
10/30
Capacity Management & Global Operations
Global Operations
Case: Buckeye Resort Corporation
K&R Chp 9, pp 399-408
SP
MATERIALS MANAGEMENT IN OPERATIONS
11/1
11/6
11/8
11/13
Supply-Chain Management (I)
The Purchasing Function
Homework: Problem 1, 2, 3, 4, 5, 6, 8
Video: Regal Marine
K&R Chp 11, pp 497-533
K&R pp. 531-533
Supply-Chain Management (II)
Basic Concepts and Distribution /ABC Analysis
Homework: Problems 1, 2, 3, 4, 5, 6, 8 (continued)
K&R Chp 11, pp 497-533
K&R pp 531-533
Inventory Management
EOQ Basics /Continuous Review
Class Exercise: The Gaming Company
Homework: Problems 1, 2, 3, 6, 8, 10, 13, 20
Chapter 13, pp. 593-614
SP
K&R pp 627-632
Inventory Management (Continued)
Periodic Review Systems
Homework: Problems 21, 22, 23, 24
Chapter 13, pp 614-632
K&R pp 627-632
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MATERIALS MANAGEMENT IN OPERATIONS
11/15
11/20
Independent & Dependent Demand Inventory Systems
Video: Inventory and Textbooks
Introduction to Material Requirements Planning
Homework: Problems 1, 3, 7
K&R Chp 15, pp 731-737
K&R pp 767-777
Dependent Demand Inventory Systems
Material Requirements Planning (MRP)
Homework: Problems 10, 11, 12, 13
K&R Chp 15, pp 737-777
K&R pp 767-777
Thanksgiving Holiday – no classes Nov. 22 and 23
11/27
Just-in-Time Systems
Video: Hewlett Packard
Homework: Problems 2, 3
K&R Chp 16 pp. 797-823
K&R p 820-821
11/29
Review for Exam and Discuss Flashy Flashers, Inc. Case
WRITTEN TEAM CASE DUE: Flashy Flashers, Inc.
K&R pp 777-780
ALSO DUE: Peer Evaluation of your group (team) turned in to instructor.
12/5
COMMON FINAL EXAM:
December 5 is Wednesday! To cover material from 10/23/01
through 11/29/01. Location to be announced, Time: 5:30-7:18 pm.
That's It!
Enjoy Your Holidays!
Note:
K&R = Krajewski and Ritzman 6th Edition Textbook
SP = Supplementary Packet
All additional readings are found in the Supplementary Packet.
Syllabus subject to minor changes at the instructor’s discretion.
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GUIDELINES FOR THE CASE ANALYSES
The purpose of the case assignments is to provide the student with an opportunity 1) to communicate their analysis
of a situation in a clear and professional manner, 2) to learn effective team-working skills to analyze and solve a
business problem. There are 2 written group case analyses, as noted in the course outline. The questions to be
addressed are noted in the syllabus.
Strategic Guidelines for the content of the paper:
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Assume that the reader knows the basic facts of the case. They do not need to be repeated.
Apply what you have learned in this course. Consider ideas from the lectures, textbook, and student packet.
Address each question in the text of the paper. Take approximately one page per question. Suggestions on
how to address each question:
1) Understand the problem
2) Brainstorm for alternatives
3) Analyze the alternatives from both a quantitative and a qualitative point of view
4) Develop recommendation(s) and support it.
You may also want to discuss the alternatives you did not chose and why.
NOTE: There are many benefits to debating with your team regarding the various viewpoints of the case.
Work with the different viewpoints to develop a more comprehensive analysis.
Exhibits are strongly encouraged. Be creative. The benefits are:
1) They help students organize their thoughts,
2) They permit students to apply what they have learned in class,
3) They quickly provide the instructor with an overview of the students’ level of understanding, and
4) They permit the students to concisely provide details of their analysis without detracting from the main
message of their report.
Teamwork can be challenging. Recognize that each individual will bring different strengths to the team. Use
it to your advantage.
Technical Guidelines:
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Each group should consist of approximately 4 students.
NO LATE REPORTS WILL BE ACCEPTED. They are due at the beginning of the class.
Papers are to be concise, grammatically correct and free of spelling errors.
Papers should be composed on word processing software and printed in an easily readable form.
Each report should be a MAXIMUM OF 3 PAGES, double spaced, 12-point font with normal margins. A
maximum of 5 exhibits may be appended and should be referred to within the text.
Exhibits based on mathematical calculation should include a footnote with the formula(s).
Discussion of assignments with any student either in your class or not in your class, with the exception of
students in your case study group, constitutes two types of academic misconduct: (1) unauthorized
collaboration; (2) giving and/or receiving aid in an unauthorized manner. See section on Academic
Misconduct for further discussion.
Memos should begin with a heading similar to the following:
Date:
From:
To:
Subject:
Due date
Name of students in group/team (alphabetical order)
Instructor's name
Case title, e.g., XYZ, Inc.
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CASE ASSIGNMENT QUESTIONS
Too Short the Day (SP)
Take the point of view of Giles Chamberlain explaining his job to a new theatre director.
1. Explain your typical day and characterize the tasks that you accomplished and those that you did not
accomplish.
2. Identify any problems with the way your work is currently organized and propose solutions.
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Custom Molds (K&R) – See textbook for questions.
• Operations Strategy at Waste Management (SP)
1. Who are the customers and other stakeholders at WMI? What are the requirements for each customer group?
2. What are WMI’s competitive priorities? Evaluate WMI’s performance on the link between corporate strategy
and operations strategy (using the article, “Customer-Driven Manufacturing”).
3. What ethical issues does WMI face? How does their response to these issues impact their operations?
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Cranston Nissan (K&R)
Categorize the quality problems into the major probable causes.
Prepare a fishbone chart for "Failure to remedy repair problem to customer satisfaction."
What are the specific actions Jackson should take immediately? What should some of his longer-term goals
be?
• Big "A" Cola Company (SP)
1.
Draw an activity-on-node (AON) network for the project described in the case using the numbering
scheme described at the end of the case (i.e., A1 to A8, B1 to B17, etc.).
2.
How long will the project take to complete? What is the critical path? How much slack time is available
for each activity?
3.
What activities have the most slack time? If you worked on one of these activities, what does this high
slack number mean? Explain.
4.
If senior management asks you to complete the project four weeks earlier than your answer in (2),how
would you achieve this earlier project completion time? Briefly explain.
• Buckeye Resort Corporation (SP)
1. Estimate the demand for tennis court hours for July, August, and September of the current year.
2. Will there be a capacity shortage next year, given the present capacity of the tennis courts? How much, if any?
What about beyond next year?
2. What are the options to address the problem? What should Johnny Mac do for the coming season?
• The Gaming Company (SP)
1. What should the quantity of cases be whenever Mr. Heller places an order? How often should he place orders?
2. We will simulate several weeks of demand for The Big Game during the class period. Be prepared to place orders
for The Big Game.
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Flashy Flashers, Inc (K&R) – See textbook for questions.
K&R = Krajewski and Ritzman 5th Edition Textbook
SP = Supplementary Packet
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PEER EVALUATION - GROUP PROJECTS
Your group has been given $10,000 for each case paper as a consulting fee. Divide the money
among your group based on the quality and effort of each team member’s contribution. This
evaluation is due to the instructor by November 29th, and will be used to adjust case grades.
Please justify your response.
Case 1
Case 2
Big "A"
Flashy
Cola
Flashers
Your name:
______________________________
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Team members:
______________________________
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______________________________
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______________________________
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______________________________
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$10,000
$10,000
Discussion:
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AU BON PAIN VIDEO
ASSIGNMENT QUESTIONS
1.
What competitive advantage is the company attempting to exploit in the market place?
2.
What is the operations strategy?
3.
How is the company performance measured?
4.
What problems are of concern to top management?
5.
Will the new partner/manager program help the company achieve its objective?
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