P501 Operations Management Fall, 2013 Tuesday 6:00 PM to 8:40 PM

Instructor: Office Location: Office Phone: Office Hours: Email: Randolph M. Russell BS 4032H 317-274-0955 Before & after class, or by appointment rmrussel@iupui.edu

Course Materials Text: Jacobs, F. R. and Chase, R. B., Operations & Supply Chain Management The Core, 3rd Edition, McGraw-Hill Irwin, 2013, ISBN978-0-07-352523-5. Goldratt, Eliyahu M., The Goal, Second Revised Edition, 1992, North River Press. Cases: Online Simulations: https://cb.hbsp.harvard.edu/cbmp/access/20624609 https://cb.hbsp.harvard.edu/cbmp/access/20624697

Course Description and Learning Outcomes This course will help you to better understand how to manage the operations function in manufacturing and service organizations. We will take both a managerial and analytic perspective, emphasizing the strategic impact of technical operations decisions and the interfaces between operations and other functional areas. You will learn widely accepted theories for managing operations and have an opportunity to discuss how they can be applied in different types of organizations, including your organization. Overall learning outcomes for the course include: Students will demonstrate an understanding of important operations management terms and concepts, how they relate to one another and how they are applied in operational scenarios (Goals #1 and 6 1).

Please see Kelley Evening MBA Program Learning Goals at the end of this syllabus.

Students will be able to describe the relationship between cost, quality, dependability, flexibility and speed, and develop an effective operations strategy to support the business strategy (Goals #2 and 6). Students will be able to describe the relationship between the operations function and the other functional areas of a business, including marketing, finance, accounting, human resource management and information systems, and how they can work together to support the business strategy (Goal #1). Students will apply process analysis techniques to determine the bottleneck, cycle time, throughput time and capacity of a process (Goal #1). Students will model a process in their organization and apply process analysis tools to recommend improvements to it (Goal #1). Students will design and improve systems to support the operations strategy, using tools such as aggregate planning, economic order quantity and statistical process control (Goal #1). Students will understand the advantages and limitations of operations planning and control systems, including inventory management and supply chain management systems (Goal #2). Students will critically evaluate and apply important state-of-the-art operations management philosophies, such as Six Sigma, the bullwhip effect, JIT and statistical process control (Goals #1, 2 and 6). The Case Method of Instruction

The case studies that will be discussed are field-based, detailing actual company situations. Some of the case studies are quite new, while others are old classics that are unsurpassed for getting across key ideas. The names and numbers may be disguised, but the stories behind the cases are real. Most cases have a protagonist, with whom you should feel free to identify, and solving this persons managerial problems is generally at the heart of the case. A typical case includes data, some of which is crucial, and some of which is extraneous, just as the data that the protagonist faces is. The key issue is always, What should the protagonist do, and why? Be sure to move beyond shooting from the hip to support your recommendations with analysis. Case analysis provides a number of advantages. Much good management lies in the identification of the real problem in a business situation. Cases can help hone skills in problem identification. Cases can also provide a means by which technical skills can be learned. More importantly, cases can lead us to wisdom that is, appreciation for a situation and its background and importance, clear assessment of the alternatives, farsightedness with the implications, and decisiveness.

Here are some tips as you prepare for the case discussions: 1. Start by reading the case quickly, to find out whats going on, who the protagonist is and what the dilemma may be. 2. Once you have an idea of what the case is about, re-read it more carefully. Identify what in the case is relevant and what is fluff. 3. Try to craft some analysis to attack the problem, making whatever assumptions you think you need to make. Think about the analytical approaches described in the modules reading and how they can be applied. Dont get bogged down because the data isnt staring you in the face go for the method of analysis, at least. 4. Review the analysis and quickly test your assumptions versus the text, exhibits and footnotes. 5. Develop a plan of action that you would like to champion during class discussion. Expect to be frustrated with the cases, especially early in the course that is part of the learning process. Dont be concerned about this, however, unless you are unable to follow what took place during our discussions and work it out for yourself afterward. Expect to put a substantial amount of time into preparation. You should budget 6-12 hours preparing the materials in each module, prior to the discussion, and at least six hours for the discussion. Class Participation An important instruction method in this course is discussion of case studies and simulation exercises. For each case study, you will review an actual company situation and apply technical and managerial skills, particularly those covered in this course, to recommend a course of action. Analyzing the case data will help lead you to an effective decision. It is critical that you are actively involved in the discussion of every case and simulation exercise. The lessons learned using the case method are much more powerful because you discover them yourself. Your case preparation and class discussion are a critical part of the learning experience. The quality of our discussion depends, in large part, on the participants. We all benefit when as many people as possible put their minds to the task of preparing and sharing their views on the case. When I evaluate your participation, here are the sorts of questions I keep in mind: Are you in command of case facts? Are you taking an active role in the discussion? Do you understand the problem clearly? Do your comments build on the previous comments of others? Have you explored the alternatives? Is your analysis persuasive (thoughtful, integrated, making use of data given)? How complete is your plan of action? Have you used solid analysis to back up your recommendations? Have you examined how changes in critical information could potentially affect the results of your decision (sensitivity analysis)?

Have you considered the impact of your recommendation on other functional areas and the competitive strategy of the organization? Have you used an appropriate analytical method, and have you used that method correctly? Are your assumptions reasonable?

Marks 0 1 2 3 4

Performance Absent Attended but not prepared &/or disruptive Attentive & Prepared with marginal impact on discussion (e.g. restating facts and echoing others comments) Significant contribution, moving discussion with insightful comments, observations, and analysis Outstanding contribution

Evaluation The mean grade for the course is likely to be between 3.4 and 3.5. Opportunity Class participation & small group homeworks Process analytics exercise Process analysis assignment Final Exam Weight 30% 15% 25% 30%

Week Date 1 8/22/2013

Topics Introduction,

Assignments Case: class) Kristens Cookies (in-

8/27/2013

Product & Process Design, Process Strategy Total Quality Management, Statistical Process Control Total Quality Management, Six-Sigma Forecasting Production Planning & Forecasting Manufacturing & Service Processes Root Beer Game Simulation

Case: National Cranberry Cooperative Reading: Jacobs, Ch. 1 &2. Reading: Jacobs, Ch. 10. Case: Polaroid

3 4 5 6 7 8

9/3/2013 9/10/2013 9/17/2013 9/24/2013 10/1/2013 10/8/2013

Reading: Jacobs, Ch. 3 & 8. Case: Wilkins - Zurn

Reading: Jacobs, Ch. 6 & 7.

Root Beer Game Reading: The Goal, Ch. 1 -12.

10/15/2013 Fall Break 9 10 11 12 10/22/2013 Process Analytics Simulation 10/29/2013 Supply Chain Design, Integration & The Goal Discussion I 11/5/2013 Process Improvement & Process Documentation

No Classes!!! Process Analytics

Reading: The Goal, Ch. 1 -12.

Case: Herman Miller Reading: The Goal, Ch. 13 - 21 TBA Reading: The Goal, Ch. 22 - 31

11/12/2013 The Goal Discussion II Process Analysis Assignment Breakout 11/19/2013 Inventory & Supply Chain Management 11/26/2013 Supply Chain Management, Distribution Logistics 12/3/2013 Final Exam

13 14 15

Reading: Jacobs, Ch. 11 & 12. Process Analysis Assignment Due Case: Scotts Reading: Jacobs, Ch. 13.

Disclaimer Like any syllabus, this syllabus is not a contract. It is an outline of the course and its policies, which may be changed for reasonable purposes during the semester at the instructors discretion. As a matter of course, all Indiana University policies will be respected and followed.

Broad-based Program Goals for all Evening MBA Students 1: Critical Analysis and Problem Solving Students who earn the MBA degree will be able to identify, integrate and apply the appropriate tools and techniques of business, drawing on knowledge of the major functions (accounting, economics, finance, quantitative methods, marketing, operations management, and strategy) to critically understand, analyze and solve complex business problems that may arise in both the domestic and the global arenas. 2: An Integrative and Global Perspective Students who earn the MBA degree will demonstrate a thorough understanding of how various external forces in the global economy (e.g., economic, political, regulatory, competitive, environmental and cultural) shape management alternatives, strategies and operational decisions and to foresee the potential business outcomes. 3: Leadership and Effective Team Collaboration Students who earn the MBA degree will demonstrate the leadership and teamwork skills necessary for productive and effective management and decision-making. Encouraging, examining, and comprehending the diverse views of others across different cultural, ethnic, and economic groups and stakeholders will be an important aspect of this learning goal. 4: Ethical Decision-Making Students who earn the MBA degree will demonstrate an ability to recognize ethical and related legal issues that arise in domestic and international environments and will be able to formulate, articulate and defend alternative solutions. 5: Effective Communication Students who earn the MBA degree will demonstrate an ability to effectively express ideas and facts in a variety of oral, written and visual communications. 6: Professional Skills and Personal Development Students who earn the MBA degree will develop an actionable plan for individual career and professional skills development that encompasses reflective selfassessment, the setting of personal and professional goals and the acknowledgement of tradeoffs which must be made to attain those goals, and the consideration of their future contributions to business and the community as alumni of the Kelley School of Business.