OPIM 310 OPERATIONS MANAGEMENT
Spring 2008
Instructor:
Office:
Suresh Nair, Ph.D., Professor
BUS 387
e-mail:
suresh.nair@business.uconn.edu
Phone:
Fax:
(860) 486-1727
(860) 486-0889
Course Description: Operations Management deals with the management of the
transformation of inputs (labor, materials, information, etc.) into outputs (goods and
services). This course provides an analytical framework for making operations management
decisions regarding capacity management, inventory management, service delivery, project
management, quality control, etc. The case studies discussed illustrate applications and the
team project offers an opportunity to apply the quantitative tools and qualitative knowledge
learned in lectures and readings.
Required Texts and Cases:
1. Stevenson, William J., Operations Management, McGraw-Hill, 9th ed.
2. Four business cases.
Grading:
2 Individual case write-ups
Team project
Two quizzes
Class participation
25%
20%
40%
15%
Case write-ups: Each participant will submit a 2-3 page report on any two cases on the day
the case is discussed. I will collect the write-ups before discussing the case. Everyone is
expected to read all cases, participate in case discussions and contribute their ideas.
Team Project: Each team should choose an OM related topic, from your workplace or
elsewhere, and apply some of the knowledge gained in this course to the project. I
recommend that you run your project ideas by me by providing me with a half page abstract
by about the fourth class. A hard copy of slides (handout style, 2 per page) should be
turned in at the last day of class when the presentations are scheduled. No written report
necessary. Plan on about 25 minutes per group.
You need to do a project, not a literature survey or description of some project already in
place in your firm. Some data analysis should be done. The project presentation should
detail
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How the project was identified (using Pareto analysis, perhaps)
Description of present process
Analysis of present process, problems with it
Alternative processes developed
Analysis of alternative process, costs and benefits
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Recommended alternative
Think BIG! Don’t choose a project where the savings are not going to be large enough to justify
the time spent by 4-5 highly paid MBAs.
I would like you to keep in mind that I will be looking for some data analysis of the existing
process. Also, support your proposed method using simulation, or some other technique learnt
in class. On the whole, I would like to see you applying material we learn in this course.
Therefore the report should read as such - analytic and evaluative, rather than descriptive.
Recent projects have been on
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Pitney Bowes Order Processing
EOQ Models at the Otis Service Center
Improved Part Forecasting Simulation
for Pratt
Moving from Deal to Flow business
model - GE Global Asset Protection
Services
A review of P&W6000 software
certification activities
Project management at Hartford Life
Construction analysis of Conn Natural
Gas Headquarters Project
Optimizing the Call Center at Otis
Simulating for capacity management at
Moran Towing
Order Processing at Pitney Bowes.
Project Management for New Product
Development at a chemicals firm.
Commercial Credit Department: A Job
Shop Arena.
Inventory Control for Marketing
Materials at Aetna.
TQM at Travelers.
Forecasting and MRP for Arrow Cordials
at Heublein.
A Roadmap to Process Certification at
Pratt and Whitney.
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Queueing Theory in Practice. Waiting
Lines at UCONN Health Center.
Personal Lines Telemarketing at
Travelers.
JIT Manufacturing at Allen Hex Keys.
Quality - Our #1 Ingredient: TQM at
Carvel.
Pratt and Whitney Engine Development
Process.
Distribution Planning at AtoHaas NA.
Quality Management at Kentucky Fried
Chicken.
Project Management for Drug
Development at Bristol Myers Squibb.
Queueing Theory for Cellular Phone
Industry.
Optimizing the call center at Otis
Raw Materials Inventory at BDB
Discovery Labware
ACE and Pratt and Whitney.
New distribution fleet planning for
Courant
Self storage capacity planning
Construction analysis of Connecticut
Natural Gas
Inventory simulation for Dymax Corp
GE Capital Global Consumer Finance IT
Estimation Process
Quizzes: The two quizzes will primarily consist of multiple choice and simple problem
formulation and solution as done during class exercises. They will also have questions
from cases discussed. Some quizzes will also have material taught in that day’s class.
Quizzes are open-book, notes, computers, templates.
Preparation for Class: It is extremely important to read the cases thoroughly and prepare for
quizzes. Skim through the reading material for the day.
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Materials on the web: From time to time I may leave files on the web for you to download.
These can be found at
http://users.business.uconn.edu/snair/nu_opim310.html
TENTATIVE COURSE SCHEDULE
Week
Topic
Introduction to course
Capacity planning in service operations, metrics for performance, importance
April 10 of utilization - Waiting Lines Chapter 18, pp. 812
Program Kickoff: Lee Olivier, Executive VP Operations
Guest Lecturer: Dana Louth, VP Energy Delivery Services
Modeling what-ifs, Valuing alternatives, Risk and Uncertainty - Monte Carlo
Simulation Chapter Supplement 18, pp. 849
April 17 Global Financial Corp. Case
Guest Lecturer: Peter Clarke, VP Shared Services
Resource allocation under constraints, Cost minimization – Optimization
April 24 Chapter Supplement 6, pp. 278
Guest Lecturer: Mike Waggoner, Manager Circuit Zone
May 1
Demand Forecasting Chapter 3, pp. 65
Northco Case. Project Proposals due
Guest Lecturers: Chuck Goodwin, Director Pricing Strategy and Administration
& Bob Dobson, Director Engineering
May 8
Inventory and Supply Chain Management Chapter 11, pp. 502
Guest Lecturer: Beth Maldonado, Director Purchasing
Revenue Management
May 15 Guest Lecturer: Richard Soderman, Director Legislative Policy & Planning
Quiz 1 (Introduction through Inventory and Supply Chain)
Quality Management, Chapter 9-10, pp. 396
May 22 Guest Lecturers: Dan Comer, Director Customer Experience Operations &
Bob Hybsch, Director Customer Operations
Discuss PET project progress to date with each team
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Project Management Chapter 17, pp. 760
May 29 Deutsche Allgem Case
Guest Lecturers: Laurie Aylsworth, VP Transmission Project, Engineering &
Maintenance & Ken Bowes, VP Customer Operations
Project Management (contd.)
June 5 IBM After Sales Service Case
June 12 Quiz 2 (material post Quiz 1) Team Project Presentations
Suggested Questions for Cases
Global Financial Corporation:
1. Your task is to come up with suggestions about how Mr. Rodriguez can improve the system
at GF. You might start by finding bottlenecks in the system. In particular, look at the work
load and capacity for each unit in the processing system. Then make suggestions about
what might be done to alleviate these bottlenecks. [Hint: Use weighted average times for
service, for example 390 hrs in Region 1 E&A. For arrivals, for example in Region 1 E&A,
there are 78 applications coming in 410 hrs, meaning the mean arrival rate is 78/410
applications/hr, or 0.19 apps/hr. The service rate for Region 1 would be 78/390, or 0.2
apps/hr. Since no more information is given, you can assume both arrivals and service are
Poisson. When work is done in teams, the processing times given are for the two (or more)
people working together (like a cashier and bagger in a grocery checkout counter)]. You can
do the calculations separately for each step in each region. The number of servers in each
step in each region should be used in the calculation, for example M=1 in E&A Region 1 as
presently configured, since the two people working there are working as one team. No need
for doing any simulation for this case, just use the multi-queues spreadsheet.
2. Suggest a web/online strategy for the firm.
Northco:
1. What makes it difficult for Northco to match supply with demand? How should Michaels think
about the costs of over or under-stocking? Identify the elements of over and under-stocking
cost in this case.
2. Identify changes to the way Northco does business currently that would enable it to better
match supply with demand. Identify the costs and difficulties associated with implementing
each of these changes.
3. How does the cost of working capital impact over and under-stocking costs at Northco?
4. Suggest a web/online strategy for the firm.
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IBM After Sales Service:
1. What are the challenges in spare parts logistics compared to logistics for new products.
2. What is your evaluation of the current structure and operation of IBM's after sales service
organization? Of the programs that have been implemented by Steve Ward?
3. Evaluate the proposals outlined by Ward at the end of the case. Which should be
implemented, how, and why?
4. What are the key success factors for IBM's after sales service organization? What are the
key levers IBM management has available to provide superior customer service?
5. Suggest a web/online strategy for the firm.
Deutsche Allgemeinversicherung:
1. Why is DAV using SPC? What are the primary challenges in applying Statistical Process
Control to a service industry compared with manufacturing?
2. The first 12 weeks of the data in Exhibit 4 represent the diagnostic period for the Policy
Extension Group. What are the 3-sigma control limits for the process? In which of the
subsequent weeks is the process out of control (if any)?
3. Develop specific implementation plans for solving the problems facing Annette Kluck that
are described on pages 8-9 of the case.
4. How would you now begin improving the performance of the operation?
5. Suggest a web/online strategy for the firm.
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