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MGT 174: Supply Chain and Operations Management
Undergraduate Course, Fall 2013
Classroom: Otterson Hall 1S113
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PROFESSOR: Delbert F. Foit, Jr.
EMAIL: dfoit@ucsd.edu
PHONE: 858-534-3738
OFFICE LOCATION: Otterson Hall, 3S148
OFFICE HOURS: Tuesdays and Thursdays from 4:00pm – 5:00pm
(Other times by appointment)
TEACHING ASSISTANT: Serkan Aksu
EMAIL: hamit.aksu@rady.ucsd.edu
Note: This syllabus may be updated and revised at a later date
Course Description
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Operations Management (OM) involves the systematic design, execution, and
improvement of business processes, projects, and partner relationships. Effective
management of operations is vital to every type of organization in today’s context, when
we see that significant competitive advantages accrue to those firms that can excel in
execution and achieve sustained and profitable growth. This course goes beyond cost
minimization, and is an introduction to the core set of issues that firms large and small
must confront and coordinate in their journey towards sustained scalability, growth and
profitability.
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Course Objectives
1. To conduct an exploration of one of the three major functions of an organization,
operations, during which we will learn how goods and services are actually
produced and discover the many problems firms face in a variety of settings.
2. To teach you how and when to apply the tools of operations management to
address these problems.
–You should leave this class armed with an understanding of both quantitative
models and qualitative strategies.
3. To develop an appreciation of how essential the development of operational
excellence and innovation is to the economic success of a firm in a competitive
landscape.
MGT 174: Supply Chain and Operations Management - Fall 2013
Delbert F. Foit, Jr.
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Required Course Materials/Readings
Course Reader
In this course, one vehicle for instruction is the case study. The set of case studies,
which will be covered in detail, is provided for you in the course reader.
MGT174 – Supply Chain & Operations Management – For instructions on how to
purchase the course reader from University Readers please see the course content tab
on TED.
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Littlefield Technologies Simulation
In this course a second vehicle for instruction is an “on-line” simulation. This simulation
will build your understanding of production and inventory control issues that Plant
Manager’s face when operating a factory. For instructions on how to purchase the
simulation from Responsive Learning Technologies please see the course content tab
on TED.
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Textbooks
Additionally, in order to obtain the appropriate background knowledge and necessary
tools to appropriately analyze the cases and run the Littlefield Technologies Simulation,
we will cover material from the textbook:
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Managing Business Process Flows: Principles of Operations Management by Anupindi
et al., 3rd Edition, 2011, Prentice Hall, ISBN-10: 0-13-603637-6.
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To purchase the ebook version of this text, go to www.coursesmart.com and in the
search box type: 0-13-603637-6
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Another required reading is a fictional novel which tells how the protagonist, Alex Rogo,
struggles to save his failing manufacturing plant. The didactic tale follows Rogo as he
learns important concepts of operations management and learns how to apply them to
his plant, all while desperately trying to balance a family life and save his marriage:
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The Goal: A Process of Ongoing Improvement by Eliyahu Goldratt, 2004, 3rd Edition,
North River Press, ISBN: 0884271781.
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Classroom Procedure
The course meets 20 times for 1 hour and 20 minutes each time. Class sessions will
begin and end on time. Please be punctual to minimize the disturbance to others and
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so that you do not miss the initial thrust of the session. If you need to miss a class,
please e-mail me in advance. Keep in mind that participation is part of your grade.
Lap Top Computers/Tablets
Use of Lap Top Computers and/or Tablets will not be permitted during class sessions.
To facilitate note taking, hard copy of class content will be provided at the beginning of
class.
Class Assignments
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For each class session, I will post a set of guiding questions, discussion points, and
goals for the lecture on WebCT. You are expected to prepare answers to these
questions and be able to provide substantiated arguments on discussion points. Feel
free to work with others to prepare for these class assignments. I suggest that you work
closely with a study group on these class assignments to share and discuss individual
ideas so that you come prepared to class and contribute to a richer learning experience.
It is required that you read the assigned readings before coming to class. This will help
give you perspective on the topics to be covered.
Homework Assignments
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There will be six homework assignments spread throughout the quarter. Each
assignment will be posted to WebCT as a PDF document with a due date. Also, each
assignment is due *at the beginning* of class on its due date since it is very likely that
we will cover material on the homework during the class session. Although you may
work in a study group on homework assignments, you must individually write-up your
own solution to be submitted.
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Class Participation
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Your class participation grade is based upon your contribution to in-class discussion
and quizzes. To prepare for class, you should use the class assignments merely as a
starting point. At the beginning of the class, one or more class members will be asked
to start the session by addressing a specific question. Anyone who has prepared the
case or answers to the class assignment will have no problem handling such a request.
After a few minutes of initial analysis and recommendations, we will open the discussion
to the rest of the class. As a group, we will try to build a complete analysis of the
situation. You are expected to be an active participant throughout the entire class and to
contribute to the quality of the discussion. Please note that the frequency of your
interventions in class is not a key criterion for effective class contribution. Some criteria
used to evaluate class contribution are as follows:
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1. Is the participant a good listener?
2. Are the points that are made relevant to the discussion? Are they linked to the
comments of others?
3. Do the comments show evidence of analysis of the case?
4. Is there willingness to test new ideas, or are all comments “safe”? (For example,
repetition of case facts without analysis and conclusions.)
5. Do comments clarify or build upon the important aspects of earlier comments and
lead to a clearer understanding of the case?
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Academic Integrity
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Integrity of scholarship is essential for an academic community. As members of
the Rady School, we pledge ourselves to uphold the highest ethical standards.
The University expects that both faculty and students will honor this principle and
in so doing protect the validity of University intellectual work. For students, this
means that all academic work will be done by the individual to whom it is
assigned, without unauthorized aid of any kind.
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The complete UCSD Policy on Integrity of Scholarship can be viewed at:
http://senate.ucsd.edu/manual/Appendices/Appendix2.pdf
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How the Honor Code applies to this course:
You can work with anyone in the class on Class Assignments. I suggest that you work
in study groups on Homework Assignments. However, you must individually write-up
your own solution to be submitted.
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For the two Littlefield Technologies Assignments, you should limit discussion only to
your team since these are team competitions. For the Mid-Term and Final Exam, you
are on your own. Therefore, I suggest that you work individually enough to be well
prepared for the exams. For example, solving each homework individually and then
discussing it with your study group may be a good strategy.
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For the two Case write-ups, you should limit your discussion and analysis only to your
team – which will be the Littlefield Technology Team.
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Performance Evaluation
Your final grade in the course will be comprised of the following:
Component
Class Participation
Littlefield Technologies Scenarios
Homework Assignments
Mid-Term Exam
Final
Rady School Resarch Participant Pool
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5% of your grade is based on participation in two experiments offered by the Rady School Research Participant Pool. Each experiment will take up to one hour. For more information on how to participate in the participant pool please see announcements on course home page.
Points / (Percentage)
10 pts
15 pts
25 pts
25 pts
25 pts
5 pts
Class Participation:
105 pts
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Total
10 pts – Top half of the class
5 pts – Bottom half of the class
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Based on the criteria provided above, the class will be sorted roughly into equal halves
and given the following points (10 pts max):
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Littlefield Technologies:
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For the first Littlefield Technologies simulation (Capacity scenario), the grading scheme
is as follows (5 pts max):
5 pts – Top two teams
4 pts – Top half of the remaining teams
3 pts – Bottom half of the remaining teams
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For the second Littlefield Technologies simulation (Forecasting, Capacity, and Inventory
scenario), the grading scheme is as follows (5 pts max):
5 pts – Rank 1 & 2
4 pts – Rank 3 & 4
3 pts – Rank 5 – 8
2 pts – Rank 9 & 10
1 pt – Rank 11+
Homework Assignments:
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Following the second Littlefield Technologies simulation, each team will write-up a
report according to guidelines provided later. The grading of this report is independent
of how your team performed in the simulation. (5 pts max)
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Note: Your homework accounts for 25% of your grade regardless of how you perform
on the exams. If you perform perfectly on the exams but fail to turn in homework, your
grade will still be negatively impacted. The homework is an important learning tool
designed to increase your knowledge of operations and, most importantly, is a required
component of the course. For most of you, the homework component will benefit your
final grade, but I’m including this note for the few students who will be exceptions.
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Part of the homework assignments will include two case write-ups. One report per team
should be handed in at the beginning of class on the day we cover each case. The goal
of this exercise is for you to discuss the case in detail with your teams and then together
agree upon some recommendations. These recommendations should be backed up by
solid arguments, evidence, and perhaps even mathematical analysis in some instances.
The two cases designated for write-ups are #2 and #4. You will have a better idea of
what I expect in a case analysis by observing how we cover the first case. The guiding
questions for these case write-ups will be posted in TED.
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Students with Disabilities
A student who has a disability or special need and requires an accommodation in order
to have equal access to the classroom must register with the Office for Students with
Disabilities (OSD). The OSD will determine what accommodations may be made and
provide the necessary documentation to present to the faculty member.
The student must present the OSD letter of certification and OSD accommodation
recommendation to the appropriate faculty member in order to initiate the request for
accommodation in classes, examinations, or other academic program activities. No
accommodations can be implemented retroactively.
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Please visit the OSD website for further information or contact the Office for Students
with Disabilities at (858) 534-4382 or osd@ucsd.edu.
MGT 174: Supply Chain and Operations Management - Fall 2013
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Session 1: Thursday September 26th
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Course format and requirements
Operational Innovation
Business Application
Required Reading:
(in Course Reader)
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John S. Hammond, “Learning by the Case Method” Harvard Business School,
Case No. 9-376-241, Rev: April 16, 2002
Michael Hammer, “Deep Change, How Operational Innovation Can Transform
Your Company”, Harvard Business Review, Reprint No. R040E, April 2004
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A taxonomy of operations management
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Required Reading:
Chapter 1 (Textbook)
Coffee on the Double, Steven Gray (supplemental reading in TED)
Start reading The Goal
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Session 2: Tuesday, October 1st
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Module I – Operations Strategy and Process Analysis
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Session 3: Thursday, October 3rd
Operations strategy
Hayes and Wheelwright product-process matrix
The process view (PFD – process flow diagram)
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Required Reading:
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Chapter 2 (Textbook)
Making the Cuts, Dan Bilefsky (supplemental reading in TED)
Session 4: Tuesday, October 8th
MGT 174: Supply Chain and Operations Management - Fall 2013
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Team Formation - Case Analysis Write-Ups & Littlefield Technologies Project &
report
Guest Speaker – TBD
Required Reading:
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Chapter 3 (Textbook)
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Key process-flow measures
Inventory buildup diagrams
Little’s Law
Inventory turns
Utilization
Due: Homework #1
Note: Computing Time Averages (supplemental reading in TED)
State Automobile License Renewal Case (supplemental reading in TED)
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Required Reading
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Session 5: Thursday, October 10th
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Session 6: Tuesday October 15th
Problem: Carbon Flows
Problem: Pigs and Piglets
Overview of Littlefield Technologies
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Required Reading:
Littlefield Technologies: Overview (supplemental reading in TED)
Read The Goal up to page 161
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(in Course Reader)
• Plambeck, Erica, “Problem: Carbon Flows in 2005”, Stanford University
Graduate School of Business.
• Patell, Jim, “Problem: Pigs and Piglets”, Stanford University Graduate School of
Business.
Session 7: Thursday October 17th
MGT 174: Supply Chain and Operations Management - Fall 2013
Delbert F. Foit, Jr.
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Case #1: Donner Company (HBS 9-689-030)
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Required Reading:
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Roy Shapiro, “Donner Company”, Harvard Business School, Case No. 9-689030, Rev: December 11, 1998
Module II – Process Design and Capacity Planning
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Flow-time analysis
Problem: Kristen’s Cookies
Due: Homework #2
Required Reading:
Chapter 4 (Textbook)
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Session 8: Tuesday, October 22nd
Session 9: Thursday October 24th
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Capacity analysis
Bottleneck management
Problem: Fishing Fleet and Cannery
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Required Reading:
Chapter 5 (Textbook)
Patell, Jim and Lovejoy Bill, “Capacity”, Stanford University Graduate School of
Business, Winter 1993 -1994
A Drive-Through Lane to the Next Time Zone, Michael Fitzgerald (supplemental
reading in TED)
Capacity Management at Littlefield Technologies, Wood and Kumar
(supplemental reading in TED)
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Littlefield Technologies (Capacity scenario)
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Simulator starts today at approximately 3:30PM and ends on Tuesday, May
7th at approximately 3:30PM.
MGT 174: Supply Chain and Operations Management - Fall 2013
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Case #2: National Cranberry Cooperative (HBS 9-675-014)
Due: Case #2 write-up (one per team)
Required Reading:
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Miller, Jeffery G., Olsen, R Paul, “National Cranberry Cooperative”, Harvard
Business School, Case No. 9-675-014, Rev: July 20, 2004
Session 11: Thursday October 31st
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Inventory costs and benefits
Economies of scale
Economic Order Quantity (EOQ) model
Problem: Radical Waves DB
Due: Homework #3
Required Reading:
Chapter 6 (Textbook)
Radical Waves DB
Keep reading The Goal (Coming up on Feb. 24th)
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Session 10: Tuesday October 29th
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Session 12: Tuesday November 5th
Newsvendor problem
Inventory pooling
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Required Reading:
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Chapter 7 (Textbook)
Electronics Firm Ends Practice Just in Time, Paulette Thomas (supplemental
reading on TED)
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Session 13: Thursday November 7th
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Mid-term Review
MGT 174: Supply Chain and Operations Management - Fall 2013
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Mid-term Exam
This exam will cover material from modules I and II
Module III – Process Improvement
Session 15: Thursday November 14th
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Case #3: Benihana of Tokyo (HBS 9-673-057)
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Required Reading:
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Session 14: Tuesday November 12th
Sasser, W. Earl, “Benihana of Tokyo”, Harvard Business School, Case No. 9673-057, Rev: July 20, 2004
The Goal
Queueing
Safety capacity
Managing variability
Due: Homework #4
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Session 16: Tuesday November 19th
Chapter 8 (Textbook)
Finish reading The Goal and be prepared to discuss
Larson, Richard C. “There’s More to a Line than Its Wait”, Technology Review,
July, Vol. 91, No. 5, 1988, pp 60-67.
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Required Reading:
Littlefield Technologies (Forecasting, Capacity, and Inventory scenario)
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Simulator starts today at approximately 3:30PM and ends on Thursday,
May 30th at approximately 3:30PM.
Session 17: Thursday November 21st
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Process control
Process capability
MGT 174: Supply Chain and Operations Management - Fall 2013
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Six Sigma
Due: Homework #5
Required Reading:
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Chapter 9 (Textbook)
Motorola, Inc. What is Six Sigma?
The Vuitton Money Machine, Carol Matlack (supplemental reading in TED)
Module IV – Supply Chain Management
Session 18: Tuesday November 26th
Case #4: Toyota Motor Manufacturing, U.S.A., Inc. (HBS 9-693-019)
Due: Case #4 write-up (one per team)
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Required Reading:
Mishina, Kazuhiro, “Toyota Motor Manufacturing, U.S.A., Inc.”, Harvard Business
School, Case No. 9-693-019, Rev: September 5,1995
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The Beer Game
Due: Littlefield Technologies Report (one per team)
Littlefield Technologies debriefing
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Session 19: Tuesday, December 3rd
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Required Reading:
Beer Game Instructions, (supplemental reading in TED)
Lee, Hau L., V. Padmanabhan, Seungjin Whang, “The Bullwhip Effect in Supply
Chains”, Sloan Management Review, Vol. 38, No. 3, Reprint 3837, Spring 1997,
pp. 93-102
Chapter 10 (Textbook), specifically sections 10.2, 10.3, 10.4.2, 10.4.4, 10.4.5,
10.5, 10.6.2, 10.6.3
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Session 20, Thursday December 5th
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Supply Chain Management (SCM)
The Bullwhip effect
The Beer Game debriefing
Review of the course
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Some time for reflection
Final Exam: Thursday December 12th
3:00PM – 6:00PM
The exam will be comprehensive but focus more on material from modules III
and IV.
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MGT 174: Supply Chain and Operations Management - Fall 2013
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