Competitive Advantage from Operations
Course Syllabus COR1-GB.2314 – Summer II
(Subject to Minor Revisions)
COURSE DESCRIPTION:
This course serves as an introduction to Operations Management. The coverage of the
discipline is very selective: We concentrate on a small number of powerful themes that
have emerged recently as the central building blocks of world-class operations. We also
present a sample of operations management tools and techniques that have been proved
extremely useful over the years. The topics are equally relevant in the manufacturing and
service sectors.
INSTRUCTOR Contacts:
Victor F. Araman
Room: 8-70
Email: varaman@stern.nyu.edu
Office Hours: by appointment
TEACHING ASSISTANT:
TBA
Email: TBA
Office Hours: Time TBA | Room : TBA
MEETINGS:
Sat: 9:00am-4:00pm | Room: TBA
(except for the Beer Game 5-50)
TEXT:
Required material:
 Case Pack available in the bookstore and contains all cases that will be
discussed in class
Other Operations Management References (Optional - Recommended):
o Operations and Supply Chain Management (Thirteenth Edition), by Jacobs
and Chase, Irwin / McGraw-Hill. Customized book from bookstore.
Name of some NYU instructors appear on the front page – while the authors of the original
book are listed inside the book
o “The Goal: A Process of Ongoing Improvement”, third revised edition (buy in
bookstore), by Eliyahu Goldratt and Jeff Cox, North River Press, Inc.
If you buy it: it is suggested that you read it by the end of the first week of class
Grading scheme:
Class Participation:
Homeworks:
Final Exam:
COR1-GB.2314: Competitive Advantage from Operations
25%
35%
40%
Prof. Victor Araman
Module I: Introduction to Operating Systems: Process Design and Analysis
Sessions 1-2: Introduction to Operations Management
Ch. 1&2 p.2-18 and p. 20-33
 Operations Strategy and Sustainability
 Operating Processes
Case assignment:
 Benihana of Tokyo, W. Sasser and J. Klug, Harvard Business School (1998).
Read, analyze, and be prepared to discuss the Benihana of Tokyo case. Use the following
study questions as an aid in analyzing the case
a) Describe Benihana as an operating system. (Draw a process flow diagram.) List
the relevant inputs, process, and output elements in three columns.
b) How does the operating system support the Benihana concept?
c) Which parameters of the operating system influence the throughput of a
Benihana Restaurant?
d) How does the cost structure of a Benihana restaurant compare with that of a
typical American restaurant? How does Benihana get its competitive advantage?
e) What is the proper relationship between the number of tables in the dining
room and number of seats at the bar? Assume the goal is to keep on average the
customer 24 minutes at the bar
Answer questions b) and d). Justify your answers
Sessions 2-3: Process Design and Process Analysis
Ch. 5 p. 106-128





Product-Process matrix
New Product Development
Flow Diagram | Gantt Chart
Capacity | Flow Time | Cycle Time | Bottleneck
Multi-product analysis
Case assignment:
 Kristen’s Cookie Company, Roger Bohn, Harvard Business School (1990).
Read, analyze, and be prepared to discuss the Kristen's Cookie Company case, utilizing
the six key questions at the end as guides.
Sessions 4-5: Optimal Resource Allocation
Appendix A p. 716-735
 Optimization framework
 Linear programming – Excel formulation
 Sensitivity Analysis including shadow prices and reduced costs
COR1-GB.2314: Competitive Advantage from Operations
Prof. Victor Araman
Module II: Managing for Competitive Advantage: Time Responsiveness and
Quality Management
Session 6:
Flow Time Management
Ch. 10 p. 334-359
 CPM & PERT
 Project Crashing
Session 7-8:
Managing Delays – Waiting Lines & the Effect of Uncertainty
Ch. 7A p. 238-258
 Models for Waiting-Lines
– Service Characteristics
– System’s Performance
– Costs trade-offs
 Psychology of “Queues”
Case assignment:
 The BAT Case: Putting Tech Support on the Fast Track, M. Lariviere, Kellog School of
Management (2007)
Read, analyze, and be prepared to discuss this case, utilizing the questions at the end as
guides
Sessions 8-9: Quality as a Strategic Issue
Ch. 9 p. 284-300 and Ch. 9A p.328-332
 Quality – Its Definition and Basis for Competition
 Natural and Assignable Defects
 Total Quality management: principles and approach
 Six sigma: a statistical tool and beyond
 Process Capability
 Quality in Services (a service management framework)
 Quality Gap
Case assignment:
 Toyota Motor Manufacturing, USA, INC., Kazuhiro Mishina and Kazunori Takeda,
Harvard Business School (1995)
Read, analyze, and be prepared to discuss the case in class
– What are the issues with the seat installation
– What should Doug Friesen do?
What is really the concept of TPS about?

The Ritz Carlton: Using Information Systems to Better Serve the Customer N. Klein W.
Sasser and T. Jones, Harvard Business School (1994)
Read, analyze, and be prepared to discuss this case.
– Where is the “manufacturing approach to services” illustrated in the case?
COR1-GB.2314: Competitive Advantage from Operations
Prof. Victor Araman
Module III: Supply and Inventory Management
Session 10:
Inventory in Action
 The Beer Game (Presence is required)
Session 11:
Inventory Concepts and Models
Ch. 17 p. 554-582
 Importance of Inventory
 Inventory Measures
 Deterministic Models: EOQ and Periodic Review Models
Session 12:




Inventory Management and Beyond – Wrap up.
Ch. 11 p. 374-391
Inventory Management under uncertainty
Newsboy model with applications in retail
Revenue Management
Notions of SCM
Case assignment:
 L.L. Bean, Inc. Item forecasting and Inventory Management, Arthur Schleifer Jr
(1992)
Read, analyze and be prepared to discuss the L.L. Bean, Inc. case.
COR1-GB.2314: Competitive Advantage from Operations
Prof. Victor Araman
DETAILED SCHEDULE
Modules
Production
Processes
Sessions
Dates
1. -2. Introduction to OM
Case: Benihana
7/06
2. -3. Process view and process
analysis
Case: Kristen’s cookies co.
7/13 am
Optimal
Resource
4. - 5. Resource allocation
Allocation
Flow Time
6. CPM and PERT
Management
Queueing
Systems
7/13 pm
7/20 am
7/20 pm
7. Queueing Models
7/27 am
8. Case: The BAT Case
7/27 pm
8. - 9. Quality: TQM and Six Sigma |
Case: Toyota Motor
Quality
Manufacturing
Management
9. Quality of Services
Case: Ritz Carlton
10. Playing the Beer Game
Inventory
Management 11.-12. Inventory Management
Case: LL Bean Company
Wrap up
The End
Final Exam: Take home
COR1-GB.2314: Competitive Advantage from Operations
7/27 pm
8/3 am
8/3 am
Important
Dates
Ch. 1&2
Answer
p. 2-18 | 20-33 Benihana
Case
questions
Ch. 5
7/13: Submit
p. 106-128
one page on
Case
capabilities
Readings
Appdix A
p. 716-735
Ch. 10
p. 334-359
Ch. 7A
p. 238-258
7/20: Submit
Assignment 1
7/27: Submit
Assignment 2
Case
Ch. 9
p. 284-300
Case
Ch. 9A p.328332 Case
8/3: Submit
Assignment 3
8/3 pm
8/10am
8/10 pm
Ch. 17
p. 554-582
Case
8/10: Submit
Assignment 4
To be
announced in
class
Prof. Victor Araman