Spring 2015, Jan. 12 – Mar. 1
T 6:00 – 9:50 PM, Lin 214
OM7011-002:
Management of Operations
Instructor: Uday Rao
E-Mail: uday.rao@uc.edu (ID raous@ucmail)
Phone: 513 556 7138, text to 513 254 8663
Office: Lin 528
Office Hours: TBD (T 4:00-5:30 PM?)
or by appointment
Overview
Materials
Operations management (OM) can be defined as “organizing and
controlling the fundamental business activity of providing goods and
services to customers.” This course is organized around the theme of
controlling activities to best match supply and demand for a firm’s
goods and services.
Course materials include:
• Required Text: Cachon and Terwiesch,
Matching Supply with Demand, 3rd
Edition, 2012. [2nd edition will be OK with
some adjustment to account for new data /
information.] A few copies are on 2-hour
reserve at Langsam library.
• Recommended Book: The Goal by E.
Goldratt (and Jeff Cox), North River
Press, 3rd Edition, 2004. Get the 2nd
Revised Edition or later (no “special
edition” needed; paperback /pdf is OK).
• Required Course Pack: available through
Harvard Business School
Goals
The course seeks to provide you with tools, concepts, and insights for
managing operations in manufacturing and service systems:
1.
2.
3.
4.
Introduction to operations language, issues, trade-offs, practices,
approaches, and innovations in operations management;
Managerial perspective of process & variability management;
Basic quantitative models & analyses for implementation & control.
Miscellaneous general goals include improving:
• Critical Thinking (Quantitative Problem Solving)
• Effective Communication (Class Discussion)
• Information Literacy & Knowledge Integration (OM Basics,
Intuition, Synthesis, Applications)
https://cb.hbsp.harvard.edu/cbmp/access/32643326
- Includes two HBS cases and their
supplementary Excel spreadsheets, plus
access to HBS Beer Distribution Game.
• Canopy Blackboard website – access via:
https://canopy.uc.edu
Requirements
No pre-requisites. Exposure to BANA 7011 useful. Students should:
1.
2.
3.
4.
5.
Get access to the course materials listed alongside.
Keep abreast with material at the Blackboard course website.
Prepare for, attend, and participate in class. Work regularly.
Submit own work done for OM7011; follow code of conduct,
http://www.uc.edu/conduct/Code_of_Conduct.html.
Help improve the structure, content, & execution of OM7011.
Evaluation
36% Two Case Write-ups (18% each)
24% Two quizzes (12% each)
30% Final Exam (mostly quantitative)
Milestones – see schedule
Jan. 27, Feb. 10
Cranberry and Manzana cases
Feb. 17
Beer Distribution Game Play – bring laptop
Feb. 3, 17 (Quizzes), Feb. 24 (The Goal)
Quiz 1, Quiz 2,
Optional: The Goal – questions (Feb. 24)
Feb. ~21 thru’ 28
Take-home exam.
10% Class Participation
Management of Operations
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Tentative OM 7011-001 Course Schedule (including class date, topic, readings, and assignments / submissions):
Class
Date
Topic
Text Reading,
3rd Edition
1.a
1/13
OM Intro, Process View
Chapters 1, 2
1.b
1/13
Process Capacity Analysis
Chapters 3
The Goal**
2.a
1/20
Labor Costs*; Process
Interruptions: Setup / Batching
Buffer or Suffer
Chapter 4*
Chapter 7
HBS: National
Cranberry Case
Prep.
2.b
1/20
Batching - EOQ
Chapter 7
3.a
1/27
HBS: National Cranberry Case
3.b
1/27
Variability and Waiting Times
Chapters 8, 9*
4.a
2/3
More Variability (Throughput
Losses?*)
Chapters 8, 9*,
4.b
2/3
Newsvendor Model
Chapter 12
5.a
2/10
HBS: Manzana Case
5.b
2/10
Newsvendor Performance
Metrics
Chapter 12
WSJ: GMCadillac?*
6.a
2/17
Revenue Management
Chapters 16
The Goal**
Take-home Online
Quiz 2 (Ch. 8, 12, 16)
6.b
2/17
Beer Distribution (Supply
Chain) Game
Access HBS
Root Beer Game
Bring Laptop; prepare
for Root Beer game
7.a
2/24
Quality & Lean Operations
7.b
2/24
Chapter 10, 11
Case Study/
Readings
Due
Student Info Sheet
Team Configuration
HBS: National
Cranberry Case
Case Write-Up
HBS: Manzana
Case Prep.
Take-home Online
Quiz 1 (Ch. 1, 2, 3, 7)
HBS: Manzana
Case
Case Write-Up
Fast Company:
Toyota; HBR:
Fixing Healthcare
Course Wrap-up; OM Electives & Op.Ex.; Exam Review
Take-home final exam available 2/21 and due 2/28
Optional The Goal Book Report due by 2/24
Notes: It is advisable to skim the readings (including lecture notes) before class and again more carefully after class. It is recommended
that you work on the cases when we are learning the corresponding course materials – FYI, Nat’l Cranberry is on Process Analysis (does
not cover setups / batching); Manzana relates to Variability & Waiting Lines (does not require Newsvendor). The case report &
discussion dates have been delayed to make the process easier for students, based on student feedback.
* Grey font text indicates topics that may not be covered if time is limited (likely, given course content and meeting format).
** Follow your own schedule for reading The Goal – A Goal book report is an alternative to one of the quizzes, this book report will
answer 5 of the bold questions on chapters 1-20 and 5 of the bold questions on chapter 21-40 (see Blackboard for questions).
FYI, Other Interesting Readings related to OM Topics:
Machine that Changed the World, J. Womack et al., 1991.
Critical Chain, Eliyahu Goldratt, 1997.
The Toyota Way, Jeffrey K. Liker, 2004.
The World is Flat, Thomas Friedman, 2005.
The Wal-Mart Effect, Charles Fishman, 2006.
Management of Operations
Reengineering the Corporation, M. Hammer & J. Champy, 1993
Clockspeed, Charles H. Fine, 1998.
The Lean Six Sigma Pocket Toolbook, Michael L. George et al., 2004.
The Resilient Enterprise, Yossi Sheffi, 2005.
The Economic Naturalist, Robert H. Frank, 2007.
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Nudge, Richard H. Thaler and Cass R. Sunstein, 2009. How to Measure Anything, Douglas Hubbard, 2010.
Lean Hospitals: Improving Quality, … M. Graban, 2011. Thinking Fast and Slow, Daniel Kahneman, 2011.
Outliers, Malcolm Gladwell, 2011 (if interested, also check out Tipping Point, M. Gladwell, 2000)
Judgment Calls: Twelve Stories …, T. Davenport, 2012.
Great Work: How to Make a Difference …, David Sturt, 2013.
For 2013 biographies, read Steve Jobs, by Walter Isaacson and Everything Store: Jeff Bezos and the Age of Amazon, Brad Stone 2013
Some Miscellaneous Items:
Course Webpage: The course will utilize the Blackboard Web Page system, which can be accessed via https://canopy.uc.edu.
Email and Blackboard Announcements will be the primary means of my contacting you outside of class. Please make sure
that Blackboard contains your current email address and that you check your email and Announcements periodically.
Blackboard will be a repository for class materials and for posting homework assignments. Check the Blackboard web site regularly.
Course Pack: Available from Harvard Business School Publishing at https://cb.hbsp.harvard.edu/cbmp/access/32643326
(you will need an HBS account) and should cost about 23$ for two HBS cases and one online simulation game.
Course Method: This class will be a mix of lectures, case discussions, and hands-on (or experiential) exercises. Case studies
/ readings will be heavily emphasized and active discussion is expected. Come to class fully prepared and willing to
participate in class discussions. Prepared means that you have read the assignments, familiarized yourself with the presented
theory from the previous class, given thought to the problems presented in the readings, considered how these problems could
be addressed using applications of the theory presented in this class, and completed any assigned write-ups or problems.
Your willingness and ability to contribute to class discussion and ask meaningful questions will be included in your class
participation grade.
Cases: Case write-ups in this course generally include the opportunity, and expectation, for quantitative analysis and a
problem solving methodology. Your case write-ups should be carefully thought out and your recommendations/ conclusions
should be supported by analysis. Additionally, you will be graded on the clarity of your writing and overall presentation.
Cases may be completed in groups of no more than 4 students. There are two cases – National Cranberry, and Manzana
Insurance, and each counts 18% towards your course grade. Questions to guide your analysis are available on Blackboard.
You should be able to complete your write-ups in four pages or less (minimum 11 point font, 1.5 line spacing, 1 inch
margins), but you can also include a technical appendix that contains calculations, additional figures, etc. Note: The cases in
this class are somewhat challenging and you should set aside sufficient time to fully analyze these cases. Your report should be written for an
executive at the company (no need to repeat case facts except to support your recommendations / analysis).
Practice Problems: In addition to case write-ups, I have assigned quantitative practice problems. The problems will not be
graded, but you are strongly encouraged to work on these problems, as they will help you prepare for classes, cases, quizzes
and the exam. You can work on these practice problems in groups, I will post solutions and sometimes go over solutions in
class. You will do much better in this class if you complete the practice problems! Failure to complete practice problems is a good
method for ensuring a poor course grade.
Quizzes: In Spring 2014, as a means to emphasize the need for working regularly on practice problems, there will be two inclass quizzes (with questions similar to practice problems), each accounting for 12% of the course grade.
Goal Study Questions: Study questions designed to help your reading and comprehension of the optional, but recommended
book, The Goal are posted on Blackboard. There are two sets of these questions (chapters 1-20 and 21-40). Students may
choose to replace one quiz score with a Goal report consisting of answers to 10 bolded questions (5 from the Chap. 1-20 and 5
from 21-40). Due-date for the Goal report is Feb. 24 (the agenda for this class is TBD). Note: Even if you do not turn in
written answers to the questions, I recommend that you at least speed read The Goal.
Experiential Learning Game: On Feb. 17, we will play the Beer Distribution Game using Harvard’s Root Beer Game (part of
course packet from HBS). Each student will need to bring to class a laptop with internet connectivity; teams of four students
will form each supply chain and play the role of retailer, wholesaler, distributor, and manufacturer. An alternative
experiential game I have used before is the Littlefield Game by Responsive Learning Tech., http://responsive.net/littlefield.html;
another option is the HBS Benihana game (please check these games out and tell me if they look more interesting).
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Exams: There will be one exam at the end of the course; this exam may be done in groups of at most two students (with each
group submitting one solution). Final exam will mostly be quantitative, based on the text chapters and assignment questions.
Class Time: I understand that a ~four-hour-long, technically oriented, evening class can be difficult for working students. But
“no-pain, no-gain” theory and uniformity with full-time sections urge us to work hard during class time. Comments?
Class Participation: Class participation includes being present, fully prepared and participating in class discussions. In
particular, I expect active discussions during our case analysis classes, but I will also occasionally ask questions and expect
feedback throughout this course (including completion of end-of-semester online course evaluations). A portion of class
participation could be based on group evaluation (for team-based work). Criteria for effective class participation include: Is
the participant a good listener? Are the points made relevant to the discussion and linked to the comments of others? Do the
comments show evidence of analysis of the problem or case? Is there a willingness to participate? Do the comments clarify,
highlight, and synthesize important aspects of earlier comments and lead to a clearer statement of the concepts being covered
or to new knowledge/ insights? Do the comments identify overlooked points and points that turn out to be influential in
further discussion? Are comments well thought out rather than just thrown out?
Academic Dishonesty: Cases of academic dishonesty are taken very seriously and may result in a failing grade as well as
being reported to the college. A discussion of what constitutes academic dishonesty at the University of Cincinnati is
available at http://www.uc.edu/ucinfo/conduct.html. Be especially aware that plagiarism and the use of past case write-ups
constitute academic dishonesty.
Special Needs Policy: If you have any special needs related to your participation in this course, including identified visual
impairment, hearing impairment, physical impairment, communication disorder, and/or specific learning disability that may
influence your performance in this course, you should meet with the instructor to arrange for reasonable provisions to ensure
an equitable opportunity to meet all the requirements of this course. At the discretion of the instructor, some
accommodations may require prior approval by Disability Services.
Computer Usage: The use of computer programs, specifically Microsoft Office and internet access, will be required for this
course. You must make sure that you have access to these, either through the university or your own computer, and to
familiarize yourself with the basics of Excel. Use of computing and communication devices in class should be restricted to class work.
Cell Phones: Out of respect for your fellow classmates, please turn off (or put on vibrate) all cell phones while you are in class.
“The Three Sons” Puzzle: To experience critical thinking (and fill some of the remaining space on this page)….
Sandy Miller had just finished the job interview for an operations analytics position and was standing in front of the
company's office with the interviewer. This part of the visit seemed easy: this was the casual part of the conversation.
Sandy: I understand you have three sons. How old are they?
Interviewer: I will give you a hint. The product of their ages is 36.
Suddenly, Sandy realized that the conversation wasn't just casual. Maybe this was part of the interview—a test of quantitative
thinking, perhaps.
Sandy: I need more information.
Interviewer: The sum of their ages is the same number as the number of windows in the building behind you.
Sandy: I still need more information.
Interviewer: My oldest son has blue eyes.
At this point, Sandy confidently gave the ages of the three sons. What were their ages?
Management of Operations
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