Business Management 530 Service Operations Management for Professionals Fall Semester 2012 Section 3: 230 TNRB on M W at 02:00 pm - 03:15 pm Instructor: Scott Sampson Office: 660 TNRB Office Hours: M W by appointment Office Phone: 422-9226 Email: ses3-cxi@sm.byu.edu Mobile Phone Number: 722-9222 TA Information Name: Daniel Watson Email: daniel.watson@byu.net Texts & Materials Required Vendor Price (new) Price (used) PACKET BUS M 530 READING AND CASES By SAMPSON, S BYU ISBN: 9780700375707 $22.50 $16.90 Description This course will introduce students to operations management, with emphasis on how operations management principles can be applied to a career of interest. Classroom Procedures Each Professor will establish the times when using laptops in class to take notes or work on class projects is allowed. These times may be frequent or infrequent depending upon the nature of the class. Using laptops in class 1) at times other than those established by your Professor or 2) for uses other than as instructed by your Professor is considered inappropriate and would affect your Professor's assessment of your professionalism. The course has three modules: (1) visualizing service operations, (2) managing service operations, and (3) improving service operations. Laptop computers are allowed in class during Module 2, which covers quantitative tools. Computers are not allowed in class during the other two modules--instead bring a pen or pencil and paper to take notes. Participation Policy This is a co-productive course, meaning that we learn through interaction. Class preparation and participation is therefore important. The TA will take roll every class session, and you must have your name card up to be counted present. If you need to miss class or leave early, please notify the instructor. Learning Outcomes 1 Operations Scope Understand scope and importance of operating processes and decisions Skills Master basic quantitative skills required to analyze operating processes Quality Management Understand key constructs in quality management Operations and Strategy Understand link between operations and strategic management of the firm Critical Assessment Develop the ability to develop a point of view about an operational challenge and argue persuasively for it in a professional setting Assignment Descriptions Liken-to-us Team Presentations: The team presentations will help students see how course principles can apply to a career of interest. Presentations are 10-20 minutes long, and should (1) briefly review the course principle from the assigned reading, (2) demonstrate how the course principle can be applied in a service industry of interest (different from the examples given in the reading), and (3) summarize managerial insights that come from the analysis. Students are encouraged to preview their presentation with the instructor at least one week before the assigned presentation day. Presentation previews are not graded, and are great ways to learn how to turn a good presentation into a great presentation. Bring a numbered slide miniature printed to the preview. If PowerPoint is used, the team must provide the instructor will slide miniatures (6 per page) at the start of the presentation. Include slide numbers. Also, the team must email the PowerPoint file to the instructor, so that it can be posted on a course website. Presentations will be evaluated according to insightfulness, presentation quality, and information quality. See the instructor for a rubric. I do not post presentation grades, but interested team members can see me after the presentation. One or more of the team members may actually give the presentation, but every team member MUST participate in preparing the presentation. The entire team must be available at the end of the presentation to answer any questions from the class (not counted in the 10-20 minutes). Any questions should primarily be answered by team members who did not deliver the presentation. Team write-ups: There will be three team write-ups due during the semester. The purpose is to practice applying principles we have covered to real business situations. I will provide you with specific instructions one week before the write-up is due. If you complete your write-up electronically, you must print it and bring it to class to get credit. Staple together multiple pages. Be sure and include a heading with (1) the assignment title and (2) the names of your team members. On write-up days we will talk about write-ups as a form of topical review. If you do not want your write-up shared with class, please indicate in the page heading. Quantitative tool tutorials: Online quantitative tutorials will introduce operations analysis tools. They are due by NOON on the assigned day (which allows me to review progress before class). The online tutorials are the basis for exam #2 questions. We will also cover the tools in class. If you would like even more quantitative practice problems, see the instructor. Tutorials will be available a week before they are due at http://ss.byu.edu Cases: 2 The following are questions you can think about as you prepare the cases: Case: Benihana of Tokyo 1. What is the Benihana concept? What are the process differences between the Benihana’s delivery of services and that of a typical restaurant? 2. Examine the production system in detail. What are the major service design choices which generate operating efficiencies? Case: Shouldice Hospital Limited (Abridged) 1. How do the elements of Shouldice’s strategic service concept (both structural and managerial) account for the success of the hospital? 2. How does the Shouldice Hospital physical facility and layout support the service concept? 3. In what respects is Shouldice Hospital a successful service organization? Is its performance along these dimensions typical of other hospitals? 4. Could Shouldice be a model for other service firms? What would be the characteristics of candidate services? Case: Rapid Rewards at Southwest Airlines 1. Describe Southwest’s “Strategic Service Vision” – both internal and external. 2. What are Southwest’s sources of competitive advantage? 3. Should Southwest save low-numbered boarding cards for its frequent fliers? What is the motivation for your opinion? 4. Should Southwest allow its most frequent fliers that have missed their flight to take the next available flight with an empty seat or should these customers have to wait for the next available flight with an empty seat within the same fare class? What drives your decision? USAA: Business Process Review 1. Draw a PCN Diagram of USAA’s current auto claims process and describe the value proposition from the customers perspective and the company's perspective. 2. How does the current process accomodate customer variation? 3. Propose at least 3 changes to that claims process. Highlight what impact these changes will have on the overall cost, time, and value of the claims process. Exams: The course has three exams, all in the Testing Center. The first will be a mini-case with questions. The second will be quantitative problems. The third will be a case with questions. For each exam all you need to bring is a pencil or pen. Point Breakdown Assignments Points Class contribution 150 Midterm #1 - mini case with questions 100 Tutorials on time and correct 50 Midterm #2 - quant problems 150 Final Exam - case with questions 300 3 Assignments Points Team liken-to-us presentation 200 Team write-ups (3x50) 150 Total Points 1100 Course Schedule Date Topics Assignments M - Aug 27 Intro to OM and SOM - W - Aug 29 Begin Module #1 - VISUALIZING SERVICE OPERATIONS Read Ch 2 - Understanding Services M - Sep 3 Labor Day holiday - W - Sep 5 Seeing how service operations work. Prepare Benihana of Tokyo case M - Sep 10 Diagramming service operations Read Ch 3 - Creating PCN Diagrams The purpose of service operations Read Ch 4 - Identifying the Value Proposition Service operations design Prepare Shouldice Limited case Service operations strategy Read Ch 5 - Strategic Process Positioning M - Sep 24 Practice visualizing service operations Team write-up #1 due W - Sep 26 Exam #1 in Testing Center (mini-case with questions) - M - Oct 1 Gazogle exercise in W410 TNRB - W - Oct 3 Begin Module #2 - MANAGING SERVICE OPERATIONS Prepare Rapid Rewards at Southwest Airlines case Operations Management principles and tools Read Ch 6 - Managing Across the Regions Forecasting and Inventory Theory Complete tutorials fcst-1-2-3 and inv-1-23. M - Oct 15 Process complexity and divergence Read Ch 7 - Job Design W - Oct 17 Queuing theory, SPC, and Project Management (begin) Complete tutorials que-1-2-3, spc-1-2-3, proj-1-2-3 (continuation of quant) and Customer Roles Read Ch 8 - Managing the Customer Roles W - Oct 24 Practice principles of operations management Team write-up #2 due M - Oct 29 Buffer day for quant review Quant tools review W - Oct 31 Exam #2 in Testing Center (quant tools) - W - Sep 12 M - Sep 17 W - Sep 19 M - Oct 8 W - Oct 10 M - Oct 22 4 Date Topics Assignments M - Nov 5 Begin Module #3 - IMPROVING SERVICE OPERATIONS Read Ch 9 - Improvement through Lean Services Example of process improvement Prepare USAA: Business Process Review case Matching operational design to market conditions Read Ch 10 - Commoditization, Disintermediation, and Servitization Kaizen - operational improvement Read Ch 11 - Systematic Service Innovation M - Nov 19 Special activity - W - Nov 21 Thanksgiving holiday - Integrating an operational network Read Ch 12 - Managing the Service Value Network W - Nov 28 Practice improving service operations Team write-up #3 due M - Dec 3 Review of major course topics Course highlights W - Dec 5 Whatever is the best use of the last class period Students' choice M - Dec 10 Final exam in Testing Center (case with questions) - W - Nov 7 M - Nov 12 W - Nov 14 M - Nov 26 Librarian Information Name: Andy Spackman Office: 1212 HBLL Phone Number: 422-3924 Email: andy_spackman@byu.edu Reference Desk Information Name: Business, Mgmt, Economics Phone Number: 422-2802 Email: mgtecon@byu.edu Hours: M-Th : 8am-9pm; F: 8am-6pm; Sat: 10am-6pm Department Research Information http://guides.lib.byu.edu/content.php?pid=60139 E-reserve Information http://www.lib.byu.edu/reserve.html BYU Honor Code In keeping with the principles of the BYU Honor Code, students are expected to be honest in all of their academic work. Academic honesty means, most fundamentally, that any work you present as your own must in fact be your own work and not that of another. Violations of this principle may result in a failing grade in the course and additional disciplinary action by the university. Students are also expected to adhere to the Dress and Grooming Standards. Adherence demonstrates respect for yourself and others 5 and ensures an effective learning and working environment. It is the university's expectation, and my own expectation in class, that each student will abide by all Honor Code standards. Please call the Honor Code Office at 422-2847 if you have questions about those standards. Preventing Sexual Discrimination and Harassment Title IX of the Education Amendments of 1972 prohibits sex discrimination against any participant in an educational program or activity that receives federal funds. The act is intended to eliminate sex discrimination in education. Title IX covers discrimination in programs, admissions, activities, and studentto-student sexual harassment. BYU's policy against sexual harassment extends not only to employees of the university, but to students as well. If you encounter unlawful sexual harassment or gender-based discrimination, please talk to your professor; contact the Equal Employment Office at 422-5895 or 3675689 (24-hours); or contact the Honor Code Office at 422-2847. Students with Disabilities Brigham Young University is committed to providing a working and learning atmosphere that reasonably accommodates qualified persons with disabilities. If you have any disability which may impair your ability to complete this course successfully, please contact the Services for Students with Disabilities Office (422-2767). Reasonable academic accommodations are reviewed for all students who have qualified, documented disabilities. Services are coordinated with the student and instructor by the SSD Office. If you need assistance or if you feel you have been unlawfully discriminated against on the basis of disability, you may seek resolution through established grievance policy and procedures by contacting the Equal Employment Office at 422-5895, D-285 ASB. Academic Honesty Policy The first injunction of the BYU Honor Code is the call to be honest. Students come to the university not only to improve their minds, gain knowledge, and develop skills that will assist them in their life's work, but also to build character. President David O. McKay taught that 'character is the highest aim of education' (The Aims of a BYU Education, p. 6). It is the purpose of the BYU Academic Honesty Policy to assist in fulfilling that aim. BYU students should seek to be totally honest in their dealings with others. They should complete their own work and be evaluated based upon that work. They should avoid academic dishonesty and misconduct in all its forms, including but not limited to plagiarism, fabrication or falsification, cheating, and other academic misconduct. Plagiarism Policy Writing submitted for credit at BYU must consist of the student's own ideas presented in sentences and paragraphs of his or her own construction. The work of other writers or speakers may be included when appropriate (as in a research paper or book review), but such material must support the student's own work (not substitute for it) and must be clearly identified by appropriate introduction and punctuation and by footnoting or other standard referencing. Respectful Environment Policy "Sadly, from time to time, we do hear reports of those who are at best insensitive and at worst insulting in their comments to and about others... We hear derogatory and sometimes even defamatory comments about those with different political, athletic, or ethnic views or experiences. 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