THE UNIVERSITY OF HONG KONG
FACULTY OF BUSINESS AND ECONOMICS
School of Business
BUSI0023A Operations and Quality Management /
IIMT3635A Operations Management
I. Information on Instructor
Instructor: Dr. Lee Hsiao-Hui
Email: hhlee@hku.hk
Office: KK Leung Building Rm 814
Phone: 3917-1082
Consultation times: by appointment
Course Page: MOODLE
Pre-requisites: Please refer to the Description for Undergraduate Courses
Textbook: Anupindi, R., S. Chopra, S. D. Deshmukh, J. A. Van Mieghem, and E. Zemel, Managing
Business Process Flow, (3rd Edition, Pearson New International Edition)
Supplementary materials:
 “Kristen's Cookie Co. (A1),” Harvard Business Case 686093-PDF-ENG. Published 1986, revised
2006. https://cb.hbsp.harvard.edu/cbmp/product/686093-PDF-ENG.
 “Introduction to the Theory and Practice of Yield Management,” by Netessine and Shumsky,
INFORMS Transactions on Education, 3(1), 2002, pp. 34-44.
II. Course Description and Objectives

Course Description:
Operations Management studies how firms actually produce products and services. Operations are
concerned with the management of the processes that convert inputs into outputs. Effective
operations management involves managing people, equipment, and other resources. In the typical
business organization the majority of the costs and controllable assets are managed by the
operations function. Thus, this discipline–with the techniques, procedures and knowledge it
encompasses – is a vital segment of business activity.
It is becoming increasingly clear that a firm’s competitive advantage lies in part in its ability to
capture knowledge about how to do things in its processes. This course cover a set of techniques
that were designed to help people understand operations processes and then improve processes
whether those processes are administrative, manufacturing, product design, or service processes.
Although the origins of the techniques we will discuss in this course come from applications of
engineering design and highly repetitive manufacturing processes we will see that their application
is not limited to them.

Course Objectives:
By introducing rigorous methods and theories, this course demonstrates ways to apply structured
thinking on loosely defined operations processes in reality. Upon successfully completing this
course, you should be able to
1. employ the fundamental concepts in process analysis
2. understand how to apply basic models and theories in business process,
3. understand the basic concept of quality management and process improvement, and
4. apply a generic framework in improving business process.
III. Learning Outcomes
In this class, you will develop and sharpen your skills to
ILO1. clearly identify and define a loosely structured operations process,
ILO2. use systematic approaches to assess operations and quality capability of a process
ILO3. apply process improvement tools to redesign an operations process, and
ILO4. develop skills in designing and implementing an effective operations system
IV. Alignment of Program and Course Outcomes
Program Learning Outcome
Course Learning Outcome
1. Acquisition and internalization of knowledge and skills in key functional
areas
ILO1, ILO2, ILO3, ILO4
2. Application and integration of business knowledge
ILO1, ILO2, ILO3, ILO4
3. Inculcating professionalism and leadership
ILO1, ILO4
4. Developing global outlook
ILO1
5. Mastering communication skills
ILO3, ILO4
V. Teaching and Learning Activities
Lecture: Approximately 60% of the class time will be used for lecturing. I will present the fundamental
concepts and the related business examples. However, I intend the lectures to be highly interactive to
motivate active learning and continuous participation. You will learn the class topics by following the
presentation as well as interjecting with your questions and response/comments to the questions I pose.
A portion of class time will involve demos of Excel exercise. You will build your Excel skills by
following my demos.
Skill-Building Exercise: To reinforce the class topics, I will provide in-class problems during the lecture.
This is a chance to check your knowledge and practice approaching process analysis. Instead of
providing the instructor’s solution, students may be asked to demonstrate their work and explain their
approach clearly to the class. The idea of these exercises is to allow you to immediately apply the
models and theories presented in lectures to relevant business problems; and the interactive classroom
environment invigorates the learning process. Only the students who have submitted a name card may be
awarded in-class participation points. Students who are able to present their solutions correctly and
clearly may receive in-class participation points.
Assignments, Practice Problems, and additional readings: Four to Five assignments will be assigned
and answers will be given after the due time. The assignments include calculations questions that
reinforce your skills, as well as a case that help your understanding of the idea. We will discuss the
cases in the next class after you submit the assignment. (If you never prepare a case discussion before,
see the next page for how to prepare the case assignments.) Assignments are due on every Thursday at
12:00 pm. Only one of the assignments (randomly picked) will be graded, whereas the rest will only be
checked for the efforts (i.e., as long as you submit the assignment with your clear efforts, you will
receive points). Although only one of the assignments will be graded, you should still devote
considerable time to work on your assignments. One of the assignments can be skipped regardless of the
reason. Therefore, do not ask for a make-up or other extra activities if you miss one assignment. But if
you miss the one that will be graded, I will randomly pick another assignment you submitted to grade.
Practicing the problem-solving skills is essential for truly acquiring them. Practice problems will also be
given in every segment. Although they will not be graded, these questions will be helpful for you to
prepare your exams. In addition to the practice problems, there will be additional readings that help you
understand the key business concepts.
Project: One group project will be assigned. NO LATE project is allowed. You will complete it in selfselected groups of five people, and report to me your selected process for comments. Please form your
project groups as soon as possible. If you have problems finding a group, please let me know.
Collaboration is key to learning and doing well on this project. Group members can evaluate each
other’s performance by providing comments on the peer evaluation form. Those who under-contribute
may be penalized (up to 100% grade deduction).
Exams: Two exams will be given in class. No make-up exam will be given unless a legitimate reason is
approved before the exam or a medical emergency (with medical certificate) is presented. The second
exam will be comprehensive.
How to Prepare a Case
For most students preparing a case assignment for class discussion is a relatively new activity. Thus, I
have prepared an outline or action plan on how to prepare a case. Please note, to prepare a case properly,
requires that you read it carefully, several times, think about the assigned questions and prepare an
analysis as suggested below.
1. Read the case carefully. Understand what the market position of the firm is. What markets,
segments does the company operate in? Who are its customers? What must it do well in order to
be successful? What is its product or service position? What is the process by which it supports
this position?
2. If the case focuses on particular problems, these problems are usually posed on the first page.
Read the case again and focus on these issues. What is the objective of the manager involved?
What does he/she have control over and what does he/she not have control over?
3. What is the process flow? What is the utilization of the resources? What are the
products/services provided? Is there sufficient capacity to meet the mix demanded?
4. What problems do you see? What are the causes of those problems? Distinguish symptoms from
causes of those symptoms. Is the problem short term (scheduling), medium term (planning) or
long term (design/strategy)?
5. List possible solutions. What are the costs and benefits, both hard (quantifiable) and soft (nonquantifiable), of these solutions. Be aware that there are often multiple solutions to the problems
at hand.
6. Note, it is often possible to quantify some benefits such as lead-time reduction (in units of days)
or quality improvements (in percentage that meet specifications) or waiting time reduction (in
hours). This can be useful even if these numbers cannot be converted to dollars.
7. What are the implications of your suggested solutions to the other business functions, e.g.,
Finance, Accounting, Marketing, or Human Resources?
8. Recommend a solution. Explain why other alternatives were not chosen. Be sure that
implementation of your solution is possible. Keep in mind what the manager involved can
control. Don’t suggest a redesign of the entire production process to solve a scheduling problem.
9. Real managers often have more data than they can analyze and at the same time they do not have
all the data they need or would like and must make assumptions. You must make assumptions as
well, simplifying ones that allow you not to become immersed in long spreadsheet calculations
and assumptions about missing data that allow you to estimate important measures. Analyze the
situation as far as you can with the data given. Make assumptions to complete your analysis, but
understand the sensitivity of your solution to those assumptions. Be sure to explain your method.
10. If you are aware of what happened in a particular case it spoils the discussion if you divulge this
early. But, you should use your general knowledge of the industry to help analyze the case,
guiding your assumptions and providing missing data.
VI. Assessment
Learning outcome
Teaching and learning activity
Assessment
1. Define and analyze
unstructured processes
Skill-building exercises, projects
Assignments, exams, project,
in-class participation
2. Apply techniques/model for
assessing processes
Practice questions and projects
Assignments, exams, in-class
participation
3. Use improvement tools for
redesigning process
Skill-building exercises, projects
Assignments and project
4. Implement an effective
operations system
Practice questions and projects
Assignments, exams, project,
in-class participation
VII. Standards for Assessment
Exams* (the first exam 20% and the second exam 40%)
60%
Assignments (4% for graded ones and 6% for non-graded ones)
10%
In-Class Participation
10%
Project (Write-up 10%, presentation 5%, and shooting 5%)
20%
----------------------------------------------------------------------------------------------100%
Note: * Make-up exams will NOT be given
Course Grade Descriptors
● Demonstrate a strong understanding of all relevant knowledge
● Handling questions professionally
● High participation in discussions and volunteering answering/asking
questions
A+, A, A-
● Present arguments that have an element of originality
● Achieve a standard of excellent performance in the exams with very accurate
computation and very good analytical and problem solving skills
● Excellent writing report and presentation
● Demonstrate a good understanding of all relevant knowledge
B+, B, B-
● Handling questions in a logical way
● Good participation in discussions
● Present arguments that go beyond the lecture and textbook
● Achieve a standard of good performance in the exams with accurate
computation and good analytical and problem solving skills
● Good writing report and presentation
● Demonstrate a basic understanding of the concepts involved
● Fairly address questions as set
● Some participation in discussions
C+, C, C-
● Present arguments in a well-structure manner
● Meet a standard of acceptable performance in the exams with reasonably
accurate computation and acceptable analytical and problem solving skills
● Acceptable writing report and presentation
● Demonstrate a minimum understanding of the concepts involved
● Barely address questions as set
● Minimal or no participation in discussions
D+, D
● Present arguments in a marginally acceptable manner
● Meet a standard of marginally acceptable performance in the exams with
some errors in computation and barely adequate analytical and problem
solving skills
● Marginally acceptable writing report and presentation
● Demonstrate a poor understanding of the concepts involved
● Unable or unwilling to handle questions
● Minimal or no participation in discussions
F
● Present arguments poorly
● Fail to meet a standard of passing the exams with major errors in
computation and inadequate analytical and problem solving skills
● Poorly writing report and presentation
Assessment Rubrics for written group projects and exams:
● Demonstrate a strong understanding of all relevant knowledge
A+, A, A-
● Present arguments that have an element of originality
● Achieve a standard of excellent performance in the assessments with very
accurate computation and very good analytical and problem solving skills
● Excellent writing report and presentation
● Demonstrate a good understanding of all relevant knowledge
● Present arguments that go beyond the lecture and textbook
B+, B, B-
● Achieve a standard of good performance in the assessments with accurate
computation and good analytical and problem solving skills
● Good writing report and presentation
● Demonstrate a basic understanding of the concepts involved
● Present arguments in a well-structure manner
C+, C, C-
● Meet a standard of acceptable performance in the assessments with
reasonably accurate computation and acceptable analytical and problem
solving skills
● Acceptable writing report and presentation
● Demonstrate a minimum understanding of the concepts involved
● Present arguments in a marginally acceptable manner
D+, D
● Meet a standard of marginally acceptable performance in the assessments
with some errors in computation and barely adequate analytical and problem
solving skills
● Marginally acceptable writing report and presentation
● Demonstrate a poor understanding of the concepts involved
● Present arguments poorly
F
● Fail to meet a standard of passing the assessments with major errors in
computation and inadequate analytical and problem solving skills
● Poorly writing report and presentation
Assessment Rubrics for in-class participation:
● High participation in discussions
● Always attend in-class discussions
● Demonstrate a strong understanding of all relevant knowledge
A+, A, A-
● Handling questions professionally
● Present arguments that have an element of originality
● Respect others and follow the class rules (no chatting and do not use cell
phone)
● Good participation in discussions
● Often attend the in-class discussions
● Demonstrate a good understanding of all relevant knowledge
B+, B, B-
● Handling questions in a logical way
● Present arguments that go beyond the lecture and textbook
● Respect others and follow the class rules (no chatting and do not use cell
phone)
● Some participation in discussions
● Sometimes attend the in-class discussions
● Demonstrate a basic understanding of the concepts involved
C+, C, C-
● Fairly address questions as set
● Present arguments in a well-structure manner
● Respect others and follow the class rules (no chatting and do not use cell
phone)
● Minimal or no participation in discussions
● Rarely attend the in-class discussions
● Demonstrate a minimum understanding of the concepts involved
D+, D
● Barely address questions as set
● Present arguments in a marginally acceptable manner
● Respect others and follow the class rules (no chatting and do not use cell
phone)
● Minimal or no participation in discussions
● Almost never attend the tutorials and in-class discussions
● Demonstrate a poor understanding of the concepts involved
F
● Unable or unwilling to handle questions
● Present arguments poorly
● Behave poorly in class (often chatting with others, using cell phones, or
being late)
VIII. Academic Conduct
An orderly learning environment is extremely important for this course. Disruptive behaviors are
inconsiderate to other students as well as to the instructor, and are absolutely unacceptable. Talking
during lectures, arriving to class late, and any other disruptions of mobile devices are not allowed;
students who are responsible for any of these actions will be subject to academic penalty and will be
asked to leave the classroom.
Any dishonesty—such as cheating, false representation, plagiarism, etc.—that comes to my attention
will result in an F in the course.
Academic dishonesty includes cheating, plagiarism, unauthorized collaboration, falsifying academic
records, and any act designed to avoid participating honestly in the learning process. Scholastic
dishonesty also includes, but is not limited to, providing false or misleading information to receive a
postponement or an extension on an exam or other assignment. The responsibilities of both students and
faculty with regard to scholastic dishonesty are described in detail in the Disciplinary Committee
Regulations (http://www.hku.hk/pubunit/cal99/104f.htm). By teaching this course, I have agreed to
observe all of the faculty responsibilities described in that document. By enrolling in this class, you have
agreed to observe all of the student responsibilities described in that document. If the application of that
policy statement to this class and its assignments is unclear in any way, it is your responsibility to ask
me for clarification.
Tentative Course Schedule
Due dates and exam dates subject to change; please check Moodle for updated information.
Date
Topic
Introduction and process definition (Ch. 1)
04/09
Flow time (Ch. 2,3,4)
Little’s Law and flow time (Ch. 2, 3, and 4)
11/09
Capacity planning (Ch. 5)
Name card due on 11/9: To be collected IN CLASS ONLY
Case: Kristen’s Cookie
18/09
Impact of Variability (Ch. 4)
Assignment 1: Kristen’s Cookie due
Impact of Variability (Ch. 4) and safety capacity (Ch. 8)
25/09
Project group member list due on 25/9
Assignment 2: Capacity Planning & Security Simulation
Quality management and Statistical process control (Ch 9)
09/10
Assignment 3: Impact of Variability
16/10
Reading/Field Trip Week
The first exam (2 hours)
23/10
Quality management and Statistical process control (Ch 9)
Assignment 4: Managing Variability (Not graded)
Quality management and Statistical process control (Ch 9)
30/10
Introduction of X-pult project
Lean operations (Ch. 10)
06/11
Assignment 5: Statistical Process Control
13/11
Revenue management (supplement paper)
X-Pult competition and presentation
20/11
X-Pult report due
Assignment 6: Lean & Revenue Management
27/11
The second exam and wrap-up
Project Guide:
Late report will NOT be graded!
Following the strict due date is key to the project. Any late report will not be accepted.
Q&A:
You are welcome to raise your questions on the Moodle website, ask me during or after class, or email
me.
Academic Ethics Form:
Detach the last pages of this document and use them as the cover page of your two projects,
respectively, with all members’ signatures. Those who do not sign will not receive a grade for this
project.
Report Submission:
The deliverable of your project is a report that includes the contents I asked in each project (see the next
two pages). You also need to submit the electronic copy of the WORD file of the report and the EXCEL
file to your TA using the assigned project group number as your file name.
DO NOT copy and paste from any outside source! Cite ALL your references. All reports will be
scanned for plagiarism.
Peer Review:
Although in group projects all members of one group usually get the same grade, peer review is
conducted after project completion to address the “free-rider” problem. Each group member may fill out
a survey on the other members’ performance as a way to report problematic group members who have
significantly under-contributed to this project. The student who has received sufficiently negative
feedback will be re-evaluated based on other members’ comments and be given a different grade.
Two tips here: 1) Agree on task divisions as a group; 2) Attend and participate in all group meetings.
X-Pult Project:
Included here are the instructions and an exercise that comes with the Xpult. Read these over to
understand how your Xpult works and some of the factors that you may wish to work with.
1) Create a process map for this process. It should include at least two steps: Setup of the Xpult device
and launching a ball. Given our discussion of process maps, be sure to include at least a few x’s that are
not mentioned in the write-up as factors. Are there other outputs (or intermediate outputs) that would be
useful in understanding this system.
2) Design a set of experiments that will help you learn how to accurately put a ball consistently into the
bucket some distance from the table’s edge. Ask yourself what outputs would be useful to measure.
Which of the factors (inputs) from your process map will you investigate? Which will you investigate
first? Run these experiments, analyze these experiments, write-up your results, and learn which factors
affect your outputs. Does the first experiment suggest a change in the values of your factors (inputs) or
new factors?
3) Submit a) a description and explanation of the experiments you ran, b) the analyses of those
experiments, c) some discussion on the sequence of experiments you ran. The report must not exceed 8
single-sided pages including all materials, with margin size of 2.54 cm (for top, bottom, left, and right
margins), 12-point Times New Roman font, 1.5 line spacing.
I want to see how you think. Explain how you decided on your first experiment (what factors to include
and what to exclude). What were the results? Show your analysis. Now how did you pick your next
experiment? How did you decide which factors (either the ones given or others you generated) to
include in the next experiment?
4) Prepare a short presentation (5 minutes, please). In this presentation explain why you believe your
team can deliver consistent results. Showing how your team learns, tools, methodology, factors
considered, experiments run, resources consumed (e.g., number of experiments and size of each) in
learning, would be relevant. Think of this presentation as more technical, so you want to give an
overview to a Quality Management expert as to why you have mastered the techniques in class so that
you understand Y= F(X) both for the factors given as well as possible noise factors for this XPULT.
5) In class we will have the presentations followed by the demonstrations. At the time of the
demonstration I will announce a distance (for each team) that is between 7 feet and 9 feet for the
distance to the box as measured from the edge of the table to the center of the target box.
Then each team will get two rounds of 5 shots.
6) The grading on this project will be based
70% on the materials you submitted (from 3).
30% on how you do in the in-class demonstration (# in bucket out of 10 shots) with the factors
set at the values you choose.
7) Note that if you lose any part of the X-Pult kit, you might receive up to 50% of
grade reduction. Please guard the kit carefully.
Academic Ethics Form
By signing this form, I confirm that I did not involve in any dishonest academic behavior (such
as those discussed in the course syllabus) on this project, and understand that any academic misconduct
will be penalized and may result in an F in the course.
Signature:___________________________ Name:_________________________
Signature:___________________________ Name:_________________________
Signature:___________________________ Name:_________________________
Signature:___________________________ Name:_________________________
Signature:___________________________ Name:_________________________