Introduction to Operations Management
Syllabus for MAN 6501(CRN 10165)
Lutgert College of Business
Florida Gulf Coast University
Professor David A. Collier
SPRING SEMESTER 2010
Office/Phone: Lutgert Hall, Room 3332, Phone 590-7348, e-mail: dcollier@fgcu.edu
Class time/Room: Thursday, 6:30 pm--9:15 pm, Lutgert Hall, Room 2202
Course Materials
OM2, by David A. Collier and James R. Evans, Publisher is South-Western, a
Required:
division of Cengage Learning, 2nd Edition, ISBN-13: #978-0-538-74556-7 and
ISBN-10: #0-538-74556-8 . OM2 means this book.
Course Content
We are in the Service and Information Age where information-, entertainment-, and servicecontent are increasingly dominating or complementing goods-content. Service industries account for
82% of the jobs in the U.S. economy. Goods-producing industries (all of manufacturing,
construction, fishing, forestry, mining, and agriculture) account for the remaining 18% but 50% of
those jobs are also in service processes. Therefore, 91% of the jobs in the U.S. economy involve
designing and managing service-, information-, or entertainment-intensive processes. Therefore, the
emphasis in operations management is on value chains and associated processes in a wide variety of
industries with special emphasis on services.
The unifying theme of operations management is that value chains and associated processes
create and deliver value to customers by transforming a set of inputs via a process into outputs. All
functional areas create outputs and outcomes through processes. Outputs/outcomes can be in the
form of a manufactured good, information, service, and entertainment. In general, processes can be
categorized into (1) primary processes such as the production process to build cell phones or the
reservation process for a hotel room and (2) supporting processes such as an organization’s human
resource management hiring process or accounting and billing process. All functional areas such as
engineering, accounting, information systems, marketing and finance use operations skills to design
and manage their processes. We also use business cases and team based assignments to help you
understand the interdisciplinary nature of operations management and mimic real world team
situations.
Objectives of the Course
1. Develop a broad understanding of value chains and operations management applicable to both
goods-producing and service-providing organizations.
2. To understand the interdependence of the operating system with other key functional areas of the
firm.
3. To learn the terminology, concepts, and methods of operations management.
4. To become adept at structuring and analyzing practical problems, identifying information needs
and sources, defining objectives and strategies, identifying key qualitative and quantitative
decision criteria, arriving at a decision, and selling your final recommendations to your boss,
client, or peers via the analysis of business case studies.
5. To practice and improve your written and verbal communication skills, and therefore, enhance
your ability to communicate in business situations, and create an environment where you learn to
work in teams.
MAN 6501
Spring 2010
D.A. Collier
Exams
• The exams are closed book, closed notes.
• Formula sheets are provided for the exams.
• The exam could be based on anything covered in the lecture, text, case discussions, homework,
other assigned readings, videos, or guest presentations. Taking good class notes are a key to
doing well on the exams.
• Each student must bring their own calculator and writing instruments. Sharing of materials
including calculators and other electronic devices are prohibited. Electronic devices of any kind
must be turned off during the exam.
• No make-up, late or early exams are given. A comprehensive make-up exam is given at the end of
the semester for any exam(s) you miss. Business related absences are not excused. Students
should make arrangements now to avoid time conflicts.
Class Participation, Attendance & Attentiveness
Good managers can communicate their ideas and analysis in a management meeting and to
their peer group. Think of coming to our class meetings as coming to a management meeting and
"practice" your communication skills. Relax and tell us what you think! Let's learn from each other!
Consistent, aggressive, and quality class participation is expected. All points of view should enter the
class discussion. After most classes, I review our class discussion and assign "each of you" a score of
+5 (you present a sound, insightful, and articulate analysis of the case and we all can go home early!)
to -5 (you were unprepared and wasted everyone's valuable time!). At times I will call on you directly
to discuss or explain a topic to the class. If you miss any class due to illness, interviews, etc., please
write a one to two page analysis of the case/class/homework (follow detailed text and syllabus
assignment questions) you missed and hand in to me at our next class. A poor attendance record will
reduce your final course grade by as much as one full letter grade, so please communicate with me on
attendance policy. I occasionally pass around a class attendance sign up sheet so please attend class.
Major Team Case Management Report (read this carefully)
A team of no more than five people must analyze and write one major management report for
either the Gambo, DSS or Hilton case studies. The case management report must be handed-in on the
date the case is discussed in class. After your team has done a preliminary analysis of the case, I
would encourage your team to meet with me, and let's make sure you are headed in the right
direction.
The major team case write-up should be in the form of a management or consultant report. It
should be typed, single or double spaced, and should not exceed fifteen pages including all exhibits,
computer printouts, Excel worksheets, flowcharts, tables, etc are considered part of the exhibits. You
must decide the exact content, analysis, and presentation format. An "A" report would be of
sufficient high quality to use as an outside consultant's report or as a top-level management's internal
document. You will be writing such reports in your new job and this component of the course is
intended to give you some practice at problem analysis and report writing. Plan ahead and get an
early start! Just like in the real world, no late case management reports will be accepted. A team
management report grading sheet is attached to this syllabus so review the criteria before you begin to
write. You will also be making a short presentation of your report to the class but the presentation
will not be graded.
Organize your analysis so you clearly define the issues and problem(s) to solve in the case,
make sure you have a section in the report "base lining" current process design and performance, and
then other sections documenting you analysis. A good management report usually includes an
executive summary, a logical sequence of topics with ample use of headings and subheadings to
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D.A. Collier
"guide the reader" through the analysis, easy to follow exhibits with "example computations", all
assumptions clearly stated, a final/summary set of recommendations with summary numerical support
if appropriate, and so on. Poor report organization and/or writing can defeat a good analysis, so
spend some time on this part of the assignment. The reader (your boss or client someday) should be
able to smoothly move through the report without being confused.
Mini-case write-ups and hand-ins do not need to follow the major consultant management
report format describe above. Your team can simply answer the mini-case questions in a Q and A
format.
Grading and Course Performance
You grade is determined with 55% weight on individual performance and 45% on team assignment
performance as follows:
Individual Class Participation, Attendance & Attentiveness
Individual Performance on Two Exams @ 22.5 % each
Team Hand-in Assignments (50 homework problems and 6 mini-cases)
Major Team Case Mgt Report on Sof-Optics or UHS: Walk-in-Clinic
-
10 %
45 %
30 %
15 %
Your “team” is responsible for helping “all team members” understand the concepts and methods of
the course—teach and help one another! Given our limited time and class format we will not discuss
every chapter concept and method in class. However, we will go over all hand-in material during
class. The homework is graded for completeness and effort (50 problems @ 2 points each) and the
six mini-cases are worth 15 points each for a total of 190 points for team hand-in assignments.
Disability Accommodation
If you need an accommodation based on the impact of a disability, please arrange an
appointment with me as soon as possible and contact the FGCU Office of Adaptive Services in
Howard Hall 137. Their telephone number is 590-7956.
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 or similar to on-line materials may initiate serious
disciplinary action, so please do your own work as an individual or, when required, as a team.
Suspected cases of academic misconduct will be reported to the appropriate university departments.
Typical penalties include an E in the course, disciplinary probation and/or possible dismissal from the
university. Academic misconduct is a serious threat to the integrity and value of your degree and all
that we do. Employers expect you to know the body of knowledge that is documented in your
academic transcripts. The FGCU Student Code of Conduct documents the policies related to
academic misconduct and honesty so please read these materials.
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MAN 6501
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D.A. Collier
General Topic/Assignment
(See Detailed Assignment Questions Attached)
Class No./Date/Day
I.
1
Thur/Jan 7
Introduction & Value Chains
- Read: Chapters 1 & 2 (OM2)
- Read: Zappos Case (OM2, p. 18) In class discussion of case, nothing to
hand-in.
II.
2
Thur/Jan 14
III.
3
Thur/Jan 21
- Read: Chapter 3 (OM2)
- Team Hand-in Homework Assignment: Chapter 1, Problems #5 (p. 17);
Chapter 2, Problems #6, #7, #8 (p. 37); Chapter 3, Problems #2, #7,
#8 (p. 57); and– a total of 7 problems to hand-in. Clearly identify
each chapter and problem number.
- Team Mini-Case Hand-in: TuneMan Case, (Chapter 2, p. 38), Max of
five page write-up by simply answering the four case questions in a
Q and A format.
Operations Strategy & Goods and Service Design
- Read: Chapters 4 and 6 (OM2)
- Team Hand-in Homework Assignment: Chapter 4, #1, #3, and #10 (p.
75) Chapter 6, Problems #1, #2, #4, and #9 (p. 112).
- Team Mini-Case Hand-in: Lawn Care Case, Chapter 2, (p. 76), Max of
five page write-up by simply answering the six case questions in a Q
and A format.
IV.
4
Thur/Jan 28
Performance Measurement
Process Design and Management
- Read: Chapter 7 (OM2)
- Team Hand-in Homework Assignment: Chapter 7 (OM2),
Problems #1, #2, #4, #5, #8, #9 and #10, (pp. 131-132).
- Begin Chapter 10 discussion (OM2)
V.
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Thur/Feb 4
Capacity Management
- Read: Chapter 10 (OM2)
- Team Hand-in Homework Assignment: Chapter 10,
Problems # 1, #2, #5, and #7, (pp. 188-189)
- Class Exercise: Paper Puppet Process Design In-Class Exercise.
We will set up during class—What are the process design lessons
we discovered? No prior preparation required. Take good notes
since there will be Exam #2 questions! Debrief next class.
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MAN 6501
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D.A. Collier
General Topic/Assignment
(See Detailed Assignment Questions Attached)
Class No./Date/Day
VI.
6
Process and Capacity Design & Analysis
Thur/Feb. 11 - Continue Debrief of Paper Puppet In-Class Exercise.
- Exam # 1 over classes 1, 2, 3, 4, 5 and 6 materials at the end of class.
VII. How to Organize Work? (Assembly Line Balancing)
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Thur/Feb 18
- Read: Chapter 8 (OM2).
- Class Exercise: How to Best Organize Work? (a handout I’ll give you inclass)
- Team Hand-in Homework Assignment: Chapter 8, Problems #6, #7, #8
and #10, (pp. 150-151).
- Hand back exam and go over
- Begin discussion of Chapter 9 using power points.
VIII. Supply Chain and Inventory Management
8
Thur/Feb 25
- Read: Chapters 9 and 12 (OM2)
- Team Mini-Case Hand-in: BankUSA: Nike’s Supply Chain Case (p.
172), Max of five page write-up by simply answering the four case
questions in a Q and A format.
- Team Hand-in Homework Assignment: Chapter 9, Problems #4, #7 and
#9 (pp. 170-171); Chapter 12, (OM2), Problems # 4, #5, #6, #7, #8,
(pp. 233-34) – a total of eight problems.
Spring Break
IX.
Quality Management
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Thur/Mar 11 - Read: Chapter 15 (OM2)
- Team Hand-in Homework Assignment: Chapter 15, Problems #3, #4, #7
and #9 (p. 296).
- Team Mini-Case Hand-in: Sunshine Enterprises Case (p. 297-298), Max
of five page write-up by simply answering the four case questions in
a Q and A format.
10
Thur/Mar 18 - Read: Chapter 16
- Team Hand-in Homework Assignment: Chapter 16,
Problems # 4, #6, #7, #8, #9, and #10 (pp. 316-17)
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MAN 6501
Spring 2010
D.A. Collier
General Topic/Assignment
(See Detailed Assignment Questions Attached)
Class No./Date/Day
X.
Lean Operating Systems
11
Thur/Mar 25 - Read: Chapter 17 (OM2)
- Team Mini-Case Hand-in: Community Medical Associates Case (pp.
334-335), Max of five page write-up by simply answering the four
case questions in a Q and A format.
- Exam # 2 over classes 7, 8, 9, 10 and 11 materials at the end of class.
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Thur/April 1
XI.
X.
13
Thur/April 8
Project Management
- Read: Chapter 18 (OM2)
- Team Hand-in Homework Problems #6, #7, and #9 (pp. 356-57)
- Team Mini-Case Hand-in: University Medical Center Case (pp. 358),
Max of five page write-up by simply answering the three case
questions in a Q and A format.
- Hand back exam and go over
Major Team Case Report & Presentations
- Prepare: New Orleans Hilton & Hilton Towers Case (ICP)
1) Define your strategy and booking procedure (i.e., steps 1, 2, etc.) for booking hotel capacity
(rooms) and the economics of booking hotel groups. Is booking hotel capacity a marketing or
operations function? Define the servicescape for this hotel site.
2) Develop a feasible bookings (capacity) plan for weeks 32 and 33 for Hilton Hotels. Use Case
Exhibits C.5.7 and C.5.8 to work out your plan. What groups in Case Exhibit C.5.14 will
you offer a "special deal" to first, second, third, and last? Why? Is your booking policy and
rules clear enough to place them in a hotel training manual?
- Prepare: William T. Gambo, DDS (ICP)
1) Using the data in the case exhibits, calculate Dr. Gambo’s revenue for the week. If Dr.
Gambo works a maximum schedule, what is his revenue capacity? If Dr. Gambo works a
realistic schedule, what is his revenue capacity? Can he attain his revenue goals? (You must
define maximum and realistic work schedules).
2) What actions can Dr. Gambo take to improve his revenue? How do these actions fit with the
nature of his practice (i.e., flowshop, jobshop, standardized or customized services, pricing
strategy, etc.).
3) How would you measure quality in a professional dental practice?
4) What are your final recommendations?
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Thur/April 15 - Finish up team case management reports and presentations; compare
Professional Service Organizations (PSOs) to Routine Service Organizations
(RSOs).
- Summary Thoughts on OM
THE END! ENJOY YOUR SUMMER!
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MAN 6501
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D.A. Collier
Team Management Report & Case Grading Sheet – Professor Collier
Team Number: ________
Case Title:__________________________________________
Team Member Names:__________________________________________________________
Team Member Names: __________________________________________________________
Poor
Good
Excellent
Clarity: Does the management report present
the facts, data analysis, decision(s) to be made,
options, assumptions, computations, etc. in a
clear and concise way?
1 2 3
4 5 6
7 8 9
Writing Style: Is the management report well-written
or is it distracting, confusing, grammar problems, and
so on?
1 2 3
4 5 6
7 8 9
Report Organization: Is the report well organized, easy
1 2 3
to follow, uses subheadings, and readable? Executive summary
and body of report. (read syllabus w/r to management reports)
4 5 6
7 8 9
Clarity, Writing Style & Report Organization
An excellent management report would be one that your boss or client reads and he or she clearly
understands everything you wrote and has no questions about the assumptions, numbers, text, tables,
figures, computations, content and recommendations because it is so well written, clear, and
beautifully organized! In other words, they will give you a big salary increase, promote you and/or
pay the consulting bill!
Content & Analysis
Core Issues Identified & Analyzed: Does the management
report clearly identify the key problems/issues or are some
problems/issues missing or vaguely identified and analyzed.
1 2 3
4 5 6
7 8 9
Analysis: Quantitative and qualitative analyses are well
1 2 3
done and insightful or vague, incomplete or of limited
value? The focus is on content and your depth of understanding.
4 5 6
7 8 9
Clarity, Writing Style & Organization Grade: ____________
Content & Analysis Grade: ___________
Final Management Report Team Grade: _____________
OPTIONAL PEER TEAM EVALUATION
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MAN 6501
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D.A. Collier
TEAM MANAGEMENT CASE REPORTS & HOMEWORK ASSIGNMENTS
Your team has been given $100 to allocate to team members as a bonus consulting fee.
Divide the money among your team based on the quality and effort of each team member’s
contribution. The objective of this information is to document individual team members
who are outliners (high or low percentage of total management report effort). If, in your
opinion, everyone contributed to the management reports in different ways "roughly"
equally, there is no need to hand in this optional evaluation. It is assumed, unless the
instructor is told otherwise by handing in this form, that all members of the team
participated and contributed about equally to the development and preparation of the
homework and mini- and major team case management reports. Please explain your
response in a professional manner. This evaluation is due to the instructor by the last
regular class and is optional.
Team Name &
Number
You estimate of percent
(%) of work by each
team member
(1) Your name:
(2) Other names:
(3)
(4)
(5)
(6)
(7)
$100 or 100%
Discussion/Comments:
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