OM COR1-GB.2314 Sample syllabus Prof.

Gustavo Vulcano
1


OPERATIONS MANAGEMENT

COURSE SYLLABUS COR1-GB.2314


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MEETINGS:
Tuesday and Thursday 6:00PM 9:00PM
May 14
th
June 25
th

Room Tisch 201



INSTRUCTOR:
Dr. Gustavo Vulcano, KMC 8-76, x8-4018,
gvulcano@stern.nyu.edu

Office hours: By appointment



COURSE WEBSITE:
Blackboard (http://sternclasses.nyu.edu)

OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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OVERVIEW

Operations is concerned with the systematic design, management and improvement of the
processes that transform inputs into finished goods or services. Operations is one of the primary
functions of a firm. As marketing induces the demand for products and finance provides the
capital, operations produces the product (goods and services).
This course provides a foundation for understanding the operations of a firm. The
objective of the course is to provide you with the basic skills necessary to critically analyze a
firm's operating performance and practices.
Unlike many courses, which tend to treat the firm as a "black box", we will be primarily
concerned with "opening up" the black box and discovering what makes a firm "tick" - or, for
that matter, "stop ticking".
Because the operations of a firm vary widely from one industry to the next, a course like
this cannot cover all topics that are relevant to any given industry. Rather, 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
service and manufacturing sectors.


COURSE GOALS

The specific course objectives are to teach you to:
Identify the operational capabilities needed to support a business strategy
Define and characterize key business processes
Establish clear performance objectives and process measures
Understand the impact of demand and process variability in manufacturing and service
industries
Use data and modeling tools to evaluate and improve the efficiency of processes





OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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MATERIALS REQUIRED

I) ONLINE CASES! A set of business cases from Harvard Business Publishing is available
online
BENIHANA OF TOKYO
NATIONAL CRANBERRY COOPERATIVE
BAT CASE: PUTTING TECH SUPPORT ON THE FAST TRACK
TOYOTA MOTOR MANUFACTURING USA, INC.
ZARA FAST FASHION

The following NYU readings and short cases will be posted in Blackboard:
TERMS USED IN OPERATIONS MANAGEMENT
ANALYSIS OF AN OPERATION
FCN SECURITIES DEMO (A), (B) AND (C)
NETWORK CASES

II) CUSTOM TEXT: A customized version with selected chapters from Operations and Supply
Chain Management; Jacobs and Chase; 13
th
edition; McGraw-Hill Custom Publishing, 2011.
Available at NYU Bookstore. This text is referenced as CUSTOM-TEXT in this Syllabus.


III) COMPUTER SOFTWARE:
EXCEL
Online simulation tool for the Benihana case, Operations Management Simulation:
Benihana V2, included in the Harvard online course packet.

OPTIONAL MATERIAL

THE GOAL: A process of ongoing improvement, by Eliyahu Goldratt, published by North
River Press Publishing Corporation, revised third edition, 2012.

Other Operations Management References:
Matching Supply with Demand: An Introduction to Operations Management, by Cachon
and Terwiesch, 3
rd
edition, McGraw-Hill/Irwin, 2012.
Managing Business Process Flows, by R. Anupindi, S. Chopra, S. Deshmukh, J. van
Mieghem, and E. Zemel. 3
rd
edition, Prentice Hall, 2011.
Designing and Managing the Supply Chain, by David Simchi-Levi, Philip Kaminsky and
Edith Simchi-Levi, 3
rd
edition, McGraw-Hill/Irwin, 2007.
Operations Management; Stevenson; 11
th
edition; McGraw-Hill/Irwin; 2011.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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GENERAL INFORMATION
GRADING COMPONENTS
Individual Assignments (6) 15%
Group Homeworks (2) 20%
Attendance and Class Participation 10%
Midterm 25%
Final Exam 30%

INDIVIDUAL ASSIGNMENTS
There are six individual assignments, which must be submitted at the beginning of the session in
which they are due. Keep a copy for your reference during class. Show all the work if your
response requires a calculation.
If you have questions regarding the grading of the assignments, please discuss them with
the TA first.

GROUP HOMEWORK
There are two homework assignments to be done in groups of maximum four students. In the
same spirit, groups should not collaborate with each other for the purpose of doing the
assignments. There is no restriction in the length of these homework submissions but precise and
short answers are expected. Keep a copy for your reference during class. Group homeworks are
due at the beginning of the session in which they are due.
If you have questions regarding the grading of the group homeworks, you should discuss
them with the TA first.

ATTENDANCE AND LATENESS
Attendance is mandatory for the course. I will excuse absences and entertain requests to change
exam and assignment due dates only in cases of documented serious illness, family emergency,
religious observance, or civic obligation. If you will miss class for religious observance or civic
obligation, you must inform your instructor no later than the first week of class. Recruiting
activities, business trips, vacation travel, and club activities are not acceptable reasons for
absences or requests to schedule exams and assignments. In addition, you are expected to
arrive to class on time and stay to the end of the class period. Arriving late or leaving early will
have an impact on the attendance grade. Finally, you are allowed to skip one class without any
impact on the attendance component of the grade.

CLASSROOM BEHAVIOR
Laptops, cell phones, smart phones & other electronic devices must not be used in class.

MBA CODE OF CONDUCT
http://www.stern.nyu.edu/cons/groups/content/documents/webasset/con_036267.doc

FINAL EXAM
There is an individual, in-class exam that will take place on Tuesday June 25th.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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Module I: Introduction to Operating Systems: Process Analysis and Design

Session 1 (May 14
th
) INTRODUCTION. OPERATIONS AS A SOURCE OF COMPETITIVE
ADVANTAGE.
Required readings
Chapter 1 in Custom-Text: "Operations and supply chain management".
Chapter 2 in Custom-Text: Strategy and sustainability.
Optional reading
Article Implementing Restaurant Revenue Management, available on Blackboard.
Topics
Introduction to operating systems
Operational strategy: Core competencies and capabilities
Case
Benihana of Tokyo, W. Sasser and J. Klug, Harvard Business School (2004). 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?
Related Links: Benihana profile from http://www.benihana.com/about
Individual Assignment #1. Available from Blackboard.


Session 2 (May 16
th
). DESIGN OF OPERATING PROCESSES AND PROCESS FLOW
Required reading
Chapter 6 in Custom-Text: Production processes
Topics
Types of operating processes: The product-process matrix
Flow diagram
Performance measures: Capacity, flow time, cycle time; bottleneck
Case
Kristens Cookie Company. Available at Custom-Text (p. 135-136). Read, analyze, and be
prepared to discuss the Kristen's Cookie Company case, utilizing the key questions at the end
as guide.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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Virtual Plant Tours
In this class, we will study different types of operating processes and discuss their suitability for
producing various goods and services. Some of these processes and products are illustrated in
about 25 virtual Plant Tours accessible from the website http://www.mhhe.com/omc/tours-
frames.htm .
Study the following tours and think about the questions that follow:
1. Job shop: Louisville Slugger Aluminum Bat Plant Tour (available in Custom-Text DVD)
Beach Beat Surfboards (http://www.mhhe.com/omc/tours-frames.htm)
2. Assembly Line: Volkswagen Transparent Factory
(http://www.youtube.com/watch?v=nd5WGLWNllA)
Toyota Motor Company
(http://www.toyotageorgetown.com/vtour/vtour.asp ).
3. Continuous process: Crude Oil Refinery
(http://www.youtube.com/watch?v=XDK20wJUuKQ)
Questions
(a) Identify the key elements of each companys operating system. The operating system
is the collection of all processes that a company uses to produce/deliver the goods and
services that it offers.
(b) What are the differences between the operating systems of the two firms?
(c) What is your assessment of the fit between each companys business strategy and its
operations strategy?


Session 3 (May 21
st
) PROCESS FLOW ANALYSIS
Required reading
Chapter 5 in Custom-Text: Process analysis
Optional reading
Article "Analysis of an operation", available on course website.
Topics
Performance measures: Capacity, flow time, cycle time
Identifying bottlenecks; implications
Gantt chart
Factors that affect throughput and the bottleneck
Case
Read the National Cranberry Cooperative case. Use the following study questions as guides
in analyzing the case:
(a) What is your analysis of the process fruit operation at Receiving Plant #1?
(b) What recommendations, both short and long term, would you make to Mr. Schaeffer?
Individual Assignment #2. Available from Blackboard.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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Session 4 (May 23
rd
) OPTIMAL RESOURCE ALLOCATION
Required reading
Appendix A in Custom-Text: Linear Programming Using the Excel Solver.
Optional reading
Article Introduction to Linear Programming, available on course website.
Topics
- Linear programming
- Models and applications
- Sensitivity analysis and shadow prices


Module II: Managing for Competitive Advantage

Session 5 (May 28
th
) MATCHING SUPPLY AND DEMAND IN SERVICES
Required reading
Chapter 7A: "Waiting Line Analysis", in Custom-Text.
Topics
Characteristics of a waiting-line system: arrival, waiting line, service characteristics


Session 6 (May 30
th
) CAPACITY MANAGEMENT IN SERVICES
Required reading
Article Managing Real and Virtual Waits in Hospitality and Service Organizations,
available on course website.
Topics
Measuring the queues performance and queuing costs
Psychology of queues
Case
Read, analyze, and be prepared to discuss the BAT case. The following study questions will
help:
(a) What is BAT? What do they sell?
(b) What is their differentiation factor in the market?
(c) What is the current performance of BOP! Team 1? What problems are they facing?
Individual Assignment #3. Available from Blackboard.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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Session 7 (June 4
th
) MIDTERM - TIME-TO-MARKET AND RESPONSIVENESS
First Half: MIDTERM
This is an in-class, open book/notes test. The material on the test is based primarily on class lectures
and discussions. Calculators allowed but please, NO computers or cellphones/smartphones.
Second Half:
Required reading
Chapter 10 in Custom-Text: "Projects".
Practice problems
Project management exercises (see the course website).
Topics
Project Management: Introduction and organizational structure
CPM & PERT. Crashing the project
Additional Links
Video "Project Management at Six Flags" (available in Textbook DVD)
Video on Project Management in the Construction of the Alton Bridge over the
Mississippi. (14 mins)
http://sterntv.stern.nyu.edu:8080/ramgen/faculty/Project-Management-The-Alton-
Bridge.rm

Session 8 (June 6
th
) QUALITY AS A STRATEGIC ISSUE
Required reading
Chapter 9 in Custom-Text: "Six-Sigma Quality".
Chapter 9A in Custom-Text: "Process Capability and Statistical Process Control".
Topics
Continuous improvement & Six Sigma
Control charts
Case
Toyota Motor Manufacturing, USA INC (available in Course-Packet). Read, analyze, and be
prepared to discuss the Toyota case. Use the following study questions as an aid in analyzing
the case:
(a) What are the principal components of the Toyota Production System? What
capabilities must an organization possess in order to implement TPS effectively?
(b) How does quality control work at Toyota Motor Manufacturing?
SUBMIT GROUP HOMEWORK #1: FILE WITH QUESTIONS AVAILABLE ON COURSE WEBSITE. YOU
MUST SOLVE THIS HOMEWORK IN GROUPS OF UP TO 4 STUDENTS. DUE SUNDAY JUNE 2
ND

@ MIDNIGHT
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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(c) List the most important insight you have gained from reading the Toyota case that
may be useful in the context of your own work environment.
(d) Put yourself in the shoes of the plant manager; what steps would you take to address
the seat problem?

Individual Assignment #4: Available from Blackboard.


Module III: Inventory and Supply Chain Management

Session 9 (June 11
th
) INVENTORY CONCEPTS AND MODELS
Required reading
Chapter 17 in Custom-Text: "Inventory Control".
Topics
Importance of inventory
Inventory measures
Continuous and periodic review models

Session 10 (June 13
th
) INVENTORY MANAGEMENT: NEWSVENDOR SETTINGS
Required reading
Article "A Note on the Newsvendor Model: Inventory Planning for Short Lifecycle
Items", available on course website.
Optional reading
Article Introduction to the Theory and Practice of Yield Management, available on
course website.
Topics
Inventory management for perishable assets
Extensions to services: Revenue Management
Case
Acme Widget case (downloadable from Blackboard). Read, analyze, and be prepared to
discuss the case. Use the following study questions as an aid in analyzing the case:
(a) What problems did ACME face after launching the warehouse program?
(b) What could be the potential causes for those problems?

Individual Assignment #5. Available from Blackboard.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
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Session 11 (June 18
th
) INVENTORY IN ACTION: THE BEER GAME
Required reading
Chapter 11 in Custom-Text: "Global Sourcing and Procurement".
Topics
Supply chain performance: Inferences from the Beer Game
Special event
This class will take place in a different room (TBA)


Session 12 (June 20
th
) SUPPLY CHAIN MANAGEMENT
Topics
Current challenges of supply chain management
Case
Zara: Fast Fashion. Read, analyze, and be prepared to discuss the Zara case. Use the
following study questions as an aid in analyzing the case.
(a) What is Zara value proposition to customers? How is Zaras Supply Chain helping
this value proposition?
(b) How is Zara managing the uncertainty in demand?
(c) Under the Newsvendor paradigm, how would you compare the Overage and
Underage costs of Zara and Gap?

Individual Assignment #6. Available from Blackboard.


SUBMIT GROUP HOMEWORK #2: FILE WITH QUESTIONS AVAILABLE ON COURSE WEBSITE. YOU
MUST SOLVE THIS HOMEWORK IN GROUPS OF UP TO 4 STUDENTS. DUE SUNDAY JUNE 23
RD

@ MIDNIGHT
FINAL EXAM: Tuesday June 25
th
, from 6:00PM to 8:00PM.
This is an in-class, open book/notes test. The material on the test is based primarily on class
lectures and discussions. Calculators allowed but please, NO computers or cellphones.
OM COR1-GB.2314 Sample syllabus Prof. Gustavo Vulcano
11
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Assignment / Exam / Event (Due) Date
Individual Assignment #1: Benihana case May 14
th
(Session 1)
Individual Assignment #2: National Cranberry case May 21
st
(Session 3)
Individual Assignment #3: BAT case May 30
th
(Session 6)
Group Homework #1 Sunday June 2
nd

MIDTERM June 4
th
(Session 7)
Individual Assignment #4: Toyota case June 6
th
(Session 8)
Individual Assignment #5: Acme case June 13
th
(Session 10)
The Beer Game June 18
th
(Session 11)
Individual Assignment #6: Zara case June 20
th
(Session 12)
Group Homework #2 Sunday June 23
rd

FINAL EXAM June 25
th
, 6:00PM - 8:00PM