Faculty of Creative Industries and Business Department of Management and Marketing (DoMM) New Zealand Diploma in Business Course Handbook APMG NZ632 Operations Management(OM) Lecturer Nick Kearns Office: 054 - 2014 Phone: 815 4321 Extension 7053 Email: nkearns@unitec.ac.nz APMG NZ 632 | UNITEC Institute of Technology | Department of Management and Marketing PREFACE This course is an introduction to the many activities involved in designing, producing and delivering the product(s) of a business. All businesses have an operations function, and the success of the business is closely linked to the efficiency of their operations management. Decision making about what resources to use, how much production or service capacity is needed, and where to locate the business are all operations management tasks. Managers also decide whether the business is to be a “make-to-stock” (just-in-case) or a “make-to-order” (just-in-time) company. Operations Management (OM) is like the oil in an engine as it touches all parts of the organisation in some way. The knowledge and skills required to be an Operations Manager are diverse and result in a very capable person within the business, once mastered. Some business disciplines are more narrowly focused than OM, (such as accounting – dealing only with money flows) but just as OM reaches all parts of the business, so the subjects studied in OM also cover many different parts of the business. It is possible to learn this knowledge in a number of different sequences, or order, and at different levels. This course has seven learning outcomes covering just some of the total body of knowledge in this discipline; the additional knowledge is introduced in higher level courses. We will be introducing many tools of OM during the course to give you some idea of the work, and in all the classes we will try and apply our learning to real situations. Your input from any relevant work experiences is very welcome to these class discussions. We will learn more from each other than from the textbook. Why do this course ? ‘University research’ has shown that COO ( chief operating officers) are paid more than other ‘C’ level executives, and are also more likely to move into the CEO role than CIO, CFO, CMO, etc. Your depth of learning will mostly depend on your degree of participation. Enjoy the course and the experience. APMG NZ 632 | UNITEC Institute of Technology | Department of Management and Marketing 1 COURSE CONTACTS Lecturer: Nick Kearns Telephone: 815 4321 Ext 7053 Office: Building 054 room 2012 Email: nkearns@unitec.ac.nz Key Staff Sukesh Sukumaran, Head of Department: Management & Marketing (DoMM), Tel. 815 4321, Ext 8635, ssukumaran@unitec.ac.nz Dr. Liz Rainsbury Head of Department: Accounting & Finance, Tel. 815 4321, Ext 8803, erainsbury@unitec.ac.nz Maura Kempin Programme Leader — BBus, Tel. 815 4321, Ext 8811. bbspls@unitec.ac.nz mkempin@unitec.ac.nz in association with Ken Newlands Associate Chair Business Undergrad Programme Committee –BBus, Tel 8154321, Ext 7601 bbspls@unitec.ac.nz knewlands@unitec.ac.nz Nadesa Goundar Programme Leader —NZDipBus Tel. 815 4321, Ext 7097 ngoundart@unitec.ac.nz Ravi Bhat Programme Leader — Dip Mgt/. GDipBus, Lecturer Department of Management & Marketing Tel. 815 4321, Ext 7046 ahat@unitec.ac.nz Jeff Marriott, Programme Leader – Mbus, Tel 815 4321, Ext 8131 jmarriott@unitec.ac.nz Ngaire Molyneux Lecturer/Maori Advisor Tel. 815 4321, Ext 7065, nmolyneux@unitec.ac.nz Malama Saifoloi Lecturer/Pacific Advisor, Tel. 815 4321, Ext 7030 msaifoloi@unitec.ac.nz, Manjula Kambalapuram Programme Administrator - BBus, GDipBus, DipProfAcc / GCertPA, GDipPA, Tel. 815 4321, Ext 8622, mkambalapuram@gw.unitec.ac.nz Tissy Mathew Programme Administrator MBus Tel 8154321 Ext 8614 tmathew@unitec.ac.nz Key Contacts Support Centre / Counselling Service, B28 Tel. 815 4321, Ext 7248 or 8160 Maia Māori Development Staff, Pukenga B171 Tel. 815 4321 Ext 7093 UBS Bookstore, Tel. 815 4321 Ext 7490 or DD 8155400 Te Puna Ako -Learning Support Centre, Tel. 815 4321 Ext 8611 Unitec Library Front Desk, Tel. 815 4185 Pacific Centre for Teaching, Learning and Research, Tel. 815 2949 Student Loans & Allowances Administrators Jacky Brodie Tel. 815 4321 Ex 8244 Ed Collective at Unitec (Formerly USU) contacted@edcollective.org.nz APMG NZ 632 | UNITEC Institute of Technology | Department of Management and Marketing 2 COURSE AIMS Students will understand functions of operations management and apply techniques to ensure efficient and effective production of goods and services. A feature of the course is the use of computers to solve problems. We will be learning to do this using EXCEL throughout the course. Learning objectives for the course are: 1. Students will analyse the nature of contemporary operations management and the role of the operations manager. 2. Students will explain quality management, and apply quality management techniques to improve operations in a given situation. 3. Students will select appropriate facilities and processes to ensure efficient provision of goods and/or services. 4. Students will discuss performance management and determine appropriate operational performance measures and controls. 5. Students will understand capacity management, apply techniques relating to resource planning, and recommend appropriate actions in a given situation. 6. Students will apply an understanding of supply chain management, inventory management and materials management to given situations. 3 TEACHING STRATEGIES FOR THIS COURSE The two aims of the course are to start you learning a skill set that is a useful starting toolkit for OM (Table 1 below). We will not be able to cover all these skills but you may do so in independent study and I am happy to support you in this. We will use MS Excel quite a bit for the toolkit as calculations and graphs are helpful in OM decision making. You will be coached into this, so even if you have never used Excel before, you will be OK. The other aim is to introduce you to the general concepts and theories of OM. Table 1: Skills and supporting concepts in APMG632 SKILLS CONCEPTS 1. Breakeven analysis 2. Crossover analysis 3. Capacity measures & calculations 4a. Forecasting calculations 4b. Forecasting error calculations 5a. Aggregate planning -transport method 5b. Bill of materials 5c. Order scheduling 5d. Johnsons rule FC, VC, TC, TR, output, assumptions Three processes (FC, VC, TC), TR, solving equations design, effective, actual, efficiency -definitions and ratios (as %) Moving average, weighted moving average, exponential smoothing, MAD, MSE, MFE, MAPE Production cost (normal overtime, subcontract), holding cost, capacity, demand) Parents&children charts, exploded views lead time, gross & net requirements task time, work stations, work station balancing Network, EST, EFT, LST, LFT, float time, critical path, crashing the critical path. BAC, EAC, BCWS, BCWP, ACWP, SV, PV, PC, mean, median, mode std. dev., variance, labour, capital, multifactor centre of gravity, factor ranking 6a. Critical Path Analysis 6b. Earned Value analysis 7a. Measures of central tendency 7b. Measures of spread -Taguchi, SPC 8. Productivity definitions and measures 9. Location analysis Teams R Us We will be exploring a group approach to completing our assessments this semester. You will all be completing individual work, and will be marked on your own work, but during the classes we will give every student the benefit of discussing their own work with the class. We will do this is several ways: 1. Think, Pair, Share, Feedback - In this activity we will work quietly on our own assessment for approximately 10min,(think) and then talk over with one other student for approx 10 min (pair) what we have come up with. Each student in the pair can help by giving new ideas/input, improving the original ideas through criticism, making suggestions, etc. After that each student will have two minutes to present what they have gained from the discussion and three minutes Q&A from the class as a whole. 2. Fishbowl discussion- There will be several times when I will ask for a comment from each student as we go around the class about a topic. This may happen with everyone at once, or it may be staged over a short section of the lecture. 3. Team Based Learning (TBL) – We will be using the flipped classroom and team based learning as a method. You will be required to come to class prepared through reading some parts of the textbook. In class there will be five things that happen based on that reading. 1. Individual readiness assurance test (IRAT). This test is 15 multichoice questions, which you will do by yourself. 2. Team readiness assurance test (TRAT). You will repeat exactly the same test as part of a team and try to learn from each other. The team results will be used to improve your individual results as the top team each week will get an extra 2 marks for each of their individual scores. The team answers may also include a range of answers instead on just one. (More on this in class). 3. Teams will also be able to appeal any answers that they think deserve marks. (More on this process in class). The final score for each individual from the IRAT and modified by TRAT will be the quiz score that goes to your final course mark. (There will be six quizzes with each one weighted at 5% of the course mark). 4. Any gaps in knowledge that are shown up by the test scores / or though questions from the class will be covered in a short lecture. (Not all of the course content will be covered in the TBL method. Some lecturing and workshops sessions in class will be needed.) 5. There will be team tasks on applying / working with the knowledge that has been developed through reading / testing / talking over with your team. This will lead to deeper levels of learning. Research shows that Team Based Learning is a good way to learn, and students generally find TBL classes more fun. 4. ASSESSMENTS Assessment Weighting Due Date Assignment 1 (six quizzes) 30% Fridays of week 2, (Aug 7) / week 4, (Aug 21) / week 6, (Sept 4) / week 8 (Sept 18), / week 10 (Oct 16), / week 12 (Oct 30) Assignment 2 (team project) 40% Friday November 6 Assignment 3 30% Friday November 13 ALL assessments must be attempted and submitted to pass this course. The assessments are all available on the APMG632 moodle page, here – 5. COURSE TOPICS: Planned Order of Topics (This is the plan but it may change) WEEK TOPICS 1 / 31 July Course Intro / Intro to TBL / Assessment outline / etc 2 / 7 Aug Facilities & Processes – intro. / Operations strategy Aug 7: Quiz 1 (5%) Intro to Team Project (assessment 2) / Project Management Intro to Ops Mgt 3 / Aug 14 Facilities & Processes - goods & services design 4 / Aug 21 Facilities & Processes – IRAT / TRAT / case studies / location analysis / process selection ASSESSMENT DATES Aug 21: Quiz 2 (5%) Facilities & Processes Team project 5 / Aug 28 Capacity Management – Forecasting / Errors 6 / Sept 4 Capacity Management - IRAT / TRAT / case studies / calculations / chase & level strategies Sept 11: Quiz 3 (5%) Capacity Mgt Team project 7 / Sept 11 Capacity Management / MRP / Queuing & scheduling Performance Management - IRAT / TRAT / case studies 8 / Sept 18 9 / Sept 25 Performance Management / IRAT / TRAT / case studies Sept 18: Quiz 4 (5%) Team project Performance Mgt Performance Management - measures & control MID SEMESTER BREAK (Sat 26 Sept – Sun 11 Oct) 10 / Oct 16 11 / Oct 23 Quality Management - IRAT / TRAT / case studies Oct 16: Quiz 5 (5%) Approaches to quality Quality Mgt Quality Management -seven tools of TQM / Supply Chain Management Team project 12 / Oct 30 Supply Chain Management - IRAT / TRAT / case studies Oct 30: Quiz 6 (5%) Supply Chain Mgt 13 / Nov 6 14 / Nov 13 Supply Chain Management Nov 6: Team Project (40%) Nov 13: Test (30%) 6. WORKLOAD AND TIME COMMITMENT The table below shows the NZQA information the course (shaded area) and how Unitec delivers this course to you (unshaded area). You are expected to complete approx. 12 hours each week in addition to attending class, as part of normal coursework (162 hours / 13 weeks = 12.46) As% As hrs Own time Class time (1) Nature of OM 10 20 16 (3) Facilities&Processes 20 40 (5) Capacity Mgt&Planning 20 (4) Performance Mgt LEARNING OUTCOMES Classes Weeks 4 1.2 1 32 8 1.2 - 4.0 2,3,4 40 32 8 5.0 – 7.6 5,6,7 15 30 25 5 7.6 – 9.2 7,8,9 (2) Quality Mgt 15 30 25 5 9.2 – 10.8 10,11 (6) Supply Chain Mgt 20 40 32 8 10.8 – 13 11,12,13 (+1) totals 100 200 162 39 13 7. TEXTBOOK: OM5 by David A. Collier & James R. Evans published by Cengage Learning. 8. REQUIREMENTS TO PASS A COURSE: On the New Zealand Diploma in Business the following grade-mark correspondences apply: Grade Mark A+ 85 to 100 A 75 to 84 B+ 70 to74 B 60 to 69 C 50 to 59 D 40 to 49 E 0 to 39 (W Withdrawn / P “Pass” Courses (cross credited or Assessment of Prior Learning)) Requirement to pass a course is achievement of a minimum 50% across assessment items. 8 POLICIES AND PROCEDURES This course is subject to the rules and regulations, policies and procedures set out in the NewZealand Diploma of Business Handbook, available from the moodle page for NZ Dip Bus, or by following the link below. http://moodle.unitec.ac.nz/mod/resource/view.php?id=97402 9 LECTURES AND CONDUCT: NB: Unitec is required by law to record and report to the immigration department on the attendance of any student present in New Zealand under a Student Visa. Therefore if you are attending Unitec on a Student Visa you must attend all lectures. 1. Students are strongly encouraged to attend every session. Punctuality is an important courtesy for lecturers and students and is, of course, a mandatory requirement in the business environment. You willalso miss out on TBL marks through being absent without a good reason 2. Email me beforehand if you have to miss a class. 3. An attendance register will be taken at the end of each class to monitor the attendance of each student for administrative purposes. 4. Lecture sessions for non-blended learning students will be the primary time discussions and will include discussion about the assessments/assignments. Please ensure that before coming to the lecture sessions and tutorials that you are prepared. Read the relevant chapters (at least) the night before lectures. Prepare questions and/or case examples you would like to discuss. We expect you to be up to date on current industry developments. 6. Our lecture sessions should be fun and interactive - please feel free, and welcome, to participate in any discussion and debate. We want to hear your views! 7. In grading all assessments, consideration may be taken into account of students who do not regularly attend lectures.