Faculty of Commerce and Business Administration
University of British Columbia
BATL 511 – Design of Logistics and Operations Systems
Summer 2002
Instructor:
Professor Maurice Queyranne
Office Hours: Tue & Thu 2:00 - 3:15 pm
Office: HA 457
Tel: 822-8429
Maurice.Queyranne@commerce.ubc.ca
Classes:
Tue & Thu, 8:30 – 10:30 am, Period 3 (April-May 2002), HA 321
Module Description: Logistics and operations management decisions are basic to organizations concerned
with the production and delivery of products and/or services. They include strategic activities by which
firms gain and maintain competitive advantage. Product and process design, process analysis and selection,
facility layout, strategic capacity planning, facility location, and product flow planning, are some of the
issues and decisions that need to be addressed to make and deliver the right product or service, that meets
customer needs, to the right place, at the right time, in the right quality, and at lowest cost.
This module presents an overview of strategic design issues and decisions for logistics and operations
systems. The main issues and decisions covered in this module include process analysis, product and
process design for manufacturing and services, and strategic capacity planning. Methods and techniques for
the analysis of learning curves, facility layout, and facility location are also presented and discussed.
Objectives: The primary objective of this module is to encourage executive-level awareness and
integration of logistics and operations issues among future managers in all disciplines. The module exposes
students to current management thinking, methods and strategies used in managing logistics and operations
systems. Emphasis is placed on showing how such systems are organized, and how to analyze, implement,
and continually improve such systems. The module uses short case studies to show actual implementation
and encourage thoughtful analysis of the usefulness and applicability of the various approaches.
Another objective of this module is to prepare individuals for positions that analyze, plan, implement and/or
control value-added logistics and operations processes, in manufacturing as well as services. This requires
that they understand the important characteristics of such processes, and know tools and strategies that
support analysis and decision-making. Homework problems and short case studies are used in this module
to demonstrate and encourage the application of such principles and methods.
Prerequisite:
MBA core, or BATL 510, or BAMS 510, or consent of the instructor.
Textbook: The course will be based on the following textbook, which is strongly recommended:
Chase, R.B., N.J. Aquilano and F.R. Jacobs, Operations Management for Competitive Advantage,
McGraw-Hill Irwin.
Your Module Mark will be determined as follows:
30%
20%
50%
Homework average (the average of your 4 homework marks)
Class participation
Final Examination
Homework consists of selected problems from the text, emphasizing the application of concepts and
BATL 511, Summer 2002
Course Outline
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techniques studied in this course. Each homework should be done by a team of two students, who each will
receive the same mark. No additional credit will be given for homework handed in by a single student (a
situation which may arise if there is an odd number of students in the class; or in exceptional circumstances
which you must discuss with me and require my approval). Naturally, each of the two students in a team is
expected to contribute about the same amount to the homework. To encourage communication within the
class, you are asked that each homework be done with a different partner, and that at least one of the four
homeworks be done with a student from another specialization or program. Each homework paper failing to
satisfy these requirements will have its mark reduced by 50%. You are encouraged to use the break time in
the early classes to plan your homework teams in view of these requirements.
Homework 1, due Tuesday May 7:
• Chapter 2 Problems 2 (U.S. manufacturing company) and 3 (Various financial data), p.37. In Problem
3, what recommendations would you make to the company management, based on these measures?
• Technical Note 2 Problem 3 (Johnson Industries), p.52.
• Chapter 4 Problems 3 (bathtub theory) and 4 (local market research firm), pp.110-111.
Homework 2, due Tuesday May 14:
• Chapter 5 Problem 3 (golf country club) and 4 (Ping-Pong paddle) p.170. For each problem you may, if
you wish, substitute a similar facility or product; in such a case, please discuss it with me and obtain my
approval in advance of the homework.
• Chapter 5 Problems 8 (break-even analysis) and 9 (Aldo Redondo) p.171.
• Technical Note 5 Problem 8 (S.L.P. Craft), pp.200-201.
Homework 3, due Tuesday May 21:
• Chapter 6 Problems 1 to 4, p.226. In Problem 4 you may use any fast-food outlet, not necessarily a
McDonald’s; in question g, briefly justify (in a few words, or a single sentence) your assessment for
each criterion.
Homework 4, due Tuesday May 28 (subject to change):
• Chapter 9 Problems 1 to 6, pp.369-370. In Problem 6, if the land is rezoned then the total cost of the
land cost is $3 million (that is, $2 million purchase, plus $1 million rezoning).
Homework is due at the start of the class period. Part of the homework may be discussed at the beginning
of this same class period, and no late homework will be accepted.
Your class participation mark will evaluate your active and constructive participation to the classes.
The Final Examination will be closed book. You will be allowed your own one-page course summary
(“cheat sheet”) for reference during the exam.
Learning to know you: If you have not already done so in an earlier course with me, please hand in, at
the second class (Thursday April 25), a one-page summary with your name, telephone number, e-mail
address, the program you are currently enrolled in (e.g., "MBA", "MSc COE", "MSc TLOG", etc.), then
"BATL 511 Summer 2002", and a picture of yourself (or a good photocopy or printout thereof). Please
also indicate any prior practical experience related to the contents of this module. I use this card to learn
to know you, to contact you if needed during this module, and to help determine class participation
marks.
BATL 511, Summer 2002
Course Outline
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Please also bring a large "name tent" (e.g., an 8.5x11 sheet folded in half lengthwise, with your first and
last names clearly written) and place it on your desk during each class.
Class format: Each class will include a brief overview of the contents of the corresponding chapter in
the text; selected Review and Discussion Questions; discussion of an assigned case; and occasionally the
presentation of some supplemental material. In preparation for each class meeting, you are expected to
have read the assigned chapter, or at least skimmed its contents to a depth sufficient to answer or discuss,
with the open book, the Review and Discussion Questions at the end of the chapter. You are also asked
to prepare the assigned cases so as to be ready to discuss the questions asked at the end of each case.
Finally, you are encouraged to contribute your own experience where it is relevant to the topic of the
class.
Tentative class schedule:
April 23 & 25: Module overview; Operations Strategy and Competitiveness; Learning Curves.
• Module overview, and administrative matters.
• Read Operations Strategy and Competitiveness (Chapter 2), and Learning Curves (Technical Note 2).
• Case discussion: “Compaq Computer versus Dell Computer” (p. 38).
• Prepare the case “Los Angeles Toy Company” (pp. 38-39).
• Start planning your homework teams.
• Hand in your “one-page summary” as described above.
April 30 & May 2: Process Analysis.
• Read Chapter 4 in the text.
• Prepare the cases “Analyzing Casino Money-Handling Processes” (pp. 111-112) and “Jeans
Therapy” (pp. 139-140).
May 7 & 9: Product Design and Process Selection – Manufacturing; Facility Layout.
• Read Chapter 5 and Technical Note 5 in the text. You may skip the technical details of assembly line
balancing (pp. 182-188). Optional: read Supplement C, Operations Technology (pp. 720-728).
• Prepare the cases “The Best Engineered Part is No Part” (pp. 171-172) and “Soteriou’s Souvlaki”
(pp. 203-204).
• Hand in Homework 1 (Tuesday May 7).
May 14 & 16: Product Design and Process Selection – Services.
• Read Chapter 6 in the text.
• Prepare the cases “Kinko’s Copier Stores” (pp. 226-227) and “AOL’s Move to Flat Rate Pricing” (p.
228).
• Hand in Homework 2 (Tuesday May 14).
May 21 & 23: Strategic Capacity Management. Facility Location.
• Read Chapter 9 and Technical Note 9 in the text.
• Prepare the cases “Shouldice Hospital” (pp. 371-372) and “The Plant Location Puzzle” (pp. 389391).
• Hand in Homework 3 (Tuesday May 21).
Week of May 27 –31:
BATL 511, Summer 2002
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•
Course Outline
Hand in Homework 4 (tentative due date: Tuesday May 28, subject to change)
Final Examination (closed book exam, one-page course summary allowed).
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