Fall 2015, Oct. 12 – Dec. 5
MW 9:05 – 11:05 AM, Lin 220
OM7011-002:
Management of Operations
Instructor: Uday Rao
E-Mail: uday.rao@uc.edu (preferred)
Phone: 513 556 7138, Mobile: 513 254 8663
Office: Lin 528
Office Hours: TBD (MW after class?)
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.” A key course theme is to develop competitive
advantage through operations by better matching supply and demand.
Course materials include:
• Required Text: Cachon and Terwiesch,
Matching Supply with Demand, 3rd
Edition, 2012. [2nd edition has all chapters
we will cover and could be OK if you
adjust to account for new data / info.]
• Recommended Book: The Goal by E.
Goldratt (and Jeff Cox), North River Press,
3rd Edition, 2004. Make sure that you
have the 2nd Revised Edition or later.
(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.
Learn language, issues, metrics, trade-offs, practices, approaches,
tools and innovations in operations management;
Develop understanding 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)
Requirements
https://cb.hbsp.harvard.edu/cbmp/access/42102138
- Includes the HBS cases and their
supplementary Excel spreadsheets, plus
access to HBS Beer Distribution Game.
• Blackboard website:
https://canopy.uc.edu
Milestones – see schedule
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
Oct. 21, Nov 9,
Cranberry, Manzana cases
Nov 2 Class – TBD: Guest Speaker? The Goal?
Toyota Georgetown Plant tour?
Nov. 18
Beer Distribution Game Play – bring laptop
40% Two Case Write-ups (20% each)
Oct. 28-Nov. 2, 18-23
20% Two quizzes (10% each)
Online Quiz 1, Quiz 2 (details TBA)
The Goal – study questions (due ~Nov. 25)
30% Final Exam (mostly quantitative)
10% Class Participation
Nov. 30 thru’ Dec. 5
Take-home exam.
Management of Operations
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OM 7011-002 Course Schedule (including class date, topic, readings, and assignments / submissions).
Class
Date
Topic
Text, 3rd Edn.
1.a
10/12
OM Intro, Process View
Chapters 1, 2
1.b
10/14
Process View & Capacity Analysis
Chapters 2, 3
2.a
10/19
Process Capacity, Labor Costs
Process Setups / Batching
Chapters 3, 4*,
7
2.b
10/21
HBS: National Cranberry Case,
Process Setups: Buffer or Suffer
Chapter 7
3.a
10/26
Batching: EOQ
Chapter 7
3.b
10/28
Variability and Waiting Times
Chapters 8
4.a.
11/2
TBD – Guest Speaker / Alternative Instructor / Offline Content
4.b
11/4
Variability Examples
Newsvendor Model
Chapters 8, 12
The Goal**
5.a
11/9
HBS: Manzana Case
Newsvendor Performance
Chapter 12
HBS: Manzana
Case
5.b
11/11
6.a
11/16
Revenue Mgmt: Booking Limits /
Protection Levels; Overbooking
6.b
11/18
Beer Distribution Game /
Supply Chain
7.a
11/23
Quality & Lean
7.b
11/25
Lean Operations (contd.)
Course Review / OM Electives
8
11/30; 12/2
Case Study/
Readings
Due
Student Info. Sheet,
Form case teams
The Goal**
Finalize case teams
HBS: National
Cranberry Case
Case Write-Up
The Goal**
Online Quiz 1
(Ch. 1, 2, 3, 7)
Online Quiz 1
(Ch. 1, 2, 3, 7)
Case Write-Up
No Class, Veterans Day Holiday
Access HBS Root
Beer Game Prep.
Prepare for Root Beer
Game
Access HBS Root
Beer Game Play
Bring Laptop for Game;
Online Quiz 2
Chapters 10, 11
Fast Company:
Toyota
Online Quiz 2
(Ch. 8, 12, 16)
Chapter 11
HBR: Fixing
Healthcare …
The Goal Report**
Chapter 16
Take-home Final Exam, available 11/28/2015 noon, due back by 12/5/2015 noon
Notes: It is advisable to skim thru’ the readings (including lecture notes) before class and again more carefully after class; work regularly;
for each topic covered, answer some of practice problems (posted on Blackboard! Assignments, along with solutions).
* Grey font text indicates topics that may not be covered due to time limits. This schedule may be modified, particularly after week 5,
e.g., other OM material is deemed useful / a non-class time is set up for the Toyota Georgetown Plant Tour, www.toyotageorgetown.com.
** Follow your own schedule for reading The Goal novel – A book report is an alternative to one of the quizzes, see details below.
FYI, Other Interesting Readings related to OM Topics:
Machine that Changed the World, J. Womack et al., 1991. Critical Chain, Eliyahu Goldratt, 1997.
Clockspeed, Charles H. Fine, 1998.
The Toyota Way, Jeffrey K. Liker, 2004.
The World is Flat, Thomas Friedman, 2005.
The Resilient Enterprise, Yossi Sheffi, 2005.
The Wal-Mart Effect, Charles Fishman, 2006.
The Economic Naturalist, Robert H. Frank, 2007.
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.
Tipping Point / Outliers, Malcolm Gladwell, 2000/2011. Judgment Calls: Twelve Stories …, T. Davenport, 2012.
Power of Habit, C. Duhigg, 2012.
Great Work: How to Make a Difference, David Sturt, 2013.
Miscellaneous: Steve Jobs, Walter Isaacson, The Everything Store: Amazon / Jeff Bezos, Brad Stone, Elon Musk, Ashlee Vance
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Some Miscellaneous Items:
Course Webpage: The course will utilize the Blackboard Web Page system, which can be accessed at 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 assignments. Check the Blackboard web site regularly.
Course Pack: Available from Harvard Business School Publishing at https://cb.hbsp.harvard.edu/cbmp/access/42102138
(you will need an HBS account) and should cost about 23$ for two HBS cases (8$) and one online simulation game (15$).
Course Method: This class will be a mix of lecture content, 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. 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.
Write your report as if someone at the company (during the time of the case) were reporting to a senior company executive
with decision-making capability. Assume case facts are known to all and use these selectively to conduct your analysis and
support your recommendations. It is best to write a logical report that presents the key problems, a summary of your analysis
(with details in Appendices, as appropriate), and a discussion of your conclusions / recommendations, along with limitations
of your analysis / recommendations, and alternative recommendations or contingency plans, if appropriate. Case write-ups
may be completed in groups of no more than 4 students and must be submitted before the case is discussed in class. There are two
required cases – National Cranberry, Manzana Insurance, each accounting for 20% of 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 are somewhat challenging and you should set aside sufficient time to fully analyze these cases.
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 work regularly and solve the practice problems! Failure to complete practice problems is a good
method for ensuring end-of-course stress and a poor course grade.
Quizzes: In Fall 2015 Section 002, as a means to emphasize the need for working regularly on practice problems, there will be
two online quizzes on Blackboard (with questions similar to practice problems), each accounting for 10% 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 either providing a summary of key OM concepts highlighted in the book or
answering any 7 bolded questions from the list of questions. Due-date for the Goal report is tentatively Nov. 25. Note: Even if
you do not turn in a Goal report, I recommend that you read The Goal. Information on the book-based movie is provided at
http://www.toc.tv/TV/video.php?id=17#.Ulo632RoRbw.
Experiential Learning Game: On Nov. 18, we will play the Beer Distribution Game using Harvard’s Root Beer Game (part of
course packet from HBS). Each student playing the game must bring to class a laptop or computer device with internet
connectivity; teams of four students will be in each supply chain and play the role of retailer, wholesaler, distributor, and
manufacturer. Before game play, students will be assigned to teams and the game will be enabled, at which time you can
login to your game (via your HBS account) and prepare for the simulation game play by viewing the Prepare Tab. You may
also view the "how to play" video from the Prepare Tab. Further information is on Blackboard.
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Exams: There will be one take-home final exam; this exam may be done in groups of at most two students (with each group
submitting one solution). This exam will mostly be quantitative, based on the text chapters and practice problems.
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: Any submissions for OM7011 must be your own work done for this class; any sources used should be
cited. 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, including the use of past case write-ups or
discussions with more senior students, constitutes academic dishonesty. Finally, cheating cheats you of the opportunity to
learn useful material and develop your abilities (don’t pay good money in tuition just to get a grade).
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 contact 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.
Questions / Comments? Email the instructor or discuss 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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