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COURSE OUTLINE

Course Name Operation and Production Management Prepared On 23Jul,2014

Course Code MGT-330/QTM-364/OPM-511

Credit Hours 03

Course Pre-req. Name

Principal of Management, Statistical Inference, Marketing Management, Cost Accounting, Financial Management, Managerial Accounting, H R Management, Operations Research

Course Pre-req. Code

MGT-110,QTM-110,QTM-121,MKT-231,ACC-232, FIN-241, ACC-353, HRM-350, QTM-353,

Revised On 04Aug,2015

Course Type x□ Core Course □ Elective

Program x□ BBA-6 □ MBA-3

Semester Six

Course Description

This course introduces major themes and strategies of Operations and Production Management with in both manufacturing and service organizations. The primary objective is to familiarize the students with the basic concepts, techniques, methods and applications of operations management. Topics include operations strategy, process choice, capacity management, quality management, inventory management, supply chain management and new product and process development. Latest manufacturing philosophies, such as world class manufacturing (WCM), lean manufacturing, mass customization and agile manufacturing are also discussed.

Course Learning Outcomes

CLO # Description

1 Understand the theory and application of OM as a strategic competitive tool and

understand the tools used for decision making. 2 Understand the operations management functions and analyze how it adds value to the

goods and services provided by an organization.

3 Understand the analytical tools associated with the Operations Management.

4 Understand the concept of quality in Operations management and learn to apply

different dimensions of quality in both goods and services and relate them to

overall strategy. 5 Understand how technology impacts operations in

business/industry/manufacturing/service.

6 Will Learn the application of SPC tools and Control charts in business

operations. 7 Will be able to analyze types of operations / processes in service &

manufacturing

8 Will learn how Capacity planning for a business is done.

9 Will learn the impact of Locating a business around the globe.

10 Will understand; analyze types of layouts for application in manufacturing and services.

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11 Understand various concepts of Inventory Management and learn to apply

for decision making in varying scenarios.

12 Understand the concept and application of JIT and Lean Production

Systems. 13 Introduce the concept of production planning through MRP and ERP

systems

14 Learn the quantitative tools/techniques that help in operations

management.

Teaching & Learning Methodology

Lectures, Concept generation, Case discussions, Participative hands-on exercises, Videos , Writing research report on a OPM concept(As per the instructions given ) Quiz & Assignments and review of same in class

Textbook(s)

1. Krajewski Lee J. & Ritzman LarryP.(2010), “Operations Management” 9th Ed, Pearson Inc. 2. Heizer Joe & Barry Render (2011) “Operations Management” 10th Ed, Pearson Inc.

Reference Book(s)

1. Nigel Slack, Stuart & Johnston (2007 ),“Operations Management” 5th Ed, Prentice Hall Inc. 2. S. Anil Kumar & N. Suresh(2009),”Operations Management”, Newage International Publisher

Grading Policy

Assessment Instruments Percentage

Quizzes 15%

Assignments & Research Report 10+10%

Mid Term Exam 25%

Final Exam 40%

Class Schedule: 15 Sessions of 3.0 hours each per week (Total 45 Hours)

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Week-wise Course Outline

Session # Contents Activities (case studies, role plays, movie clips, exercises, presentations,

homework)

1,2, 3 (3 Hrs)

Introduction to the course-Operations as a Competitive Weapon – What is OM?, Difference & similarities b/w manufacturing and services, Trends in OM, OM and the organization, Productivity, Multifactor Productivity, Global competition, Technological change, ethics

Numerical problems in MFP.

4, 5, 6 (3 Hrs)

Operations Strategy – Corporate Strategy, Strategic alliances are risky, Market Analysis, Competitive priorities, Linking Corporate Strategy to Operations, Time based competition, Shifts in Competitive Priorities, Positioning Strategy. Decision Making & quantitative tools for decision making

Quiz#1,Assign#1, Group

discussion on Decision criteria for national level industry/ social projects e.g. PSM, Gwadar port, KANUPP, Thar Coal, Baluchistan coastal development etc, (Selection of Research topics from the list given, after approval by FM, along with groups names)

7, 8, 9 (3 Hrs)

Process Management – What is process Management, Ethics and environment, Major Process decisions, Choosing right amount of vertical integration, Managing Technological change, Designing Processes.

Review Quiz#1,

Video-model airport opns. & Video- seaport operations.

10, 11, 12 (3 Hrs)

Managing Technology. CIM/CAD/CAM, CNC machines, Flexible Manufacturing Systems,

Quiz#2,Assign#2, Video-FMCG Manufacturing

13, 14, 15 (3 Hrs)

T Q M–Quality a management philosophy, Employee Involvement, Continuous Improvement (Kaizen), Costs of poor quality, improving Qlty. through TQM- QFD, Bench Marking, Data Analysis tools,

Review Quiz#2, Case Study, Developing an award criteria

16,17, 18 (3 Hrs)

Statistical Process Control – Sources of variation, The inspection process, SPC Methods, Process Capability, Motorola’s 6- sigma quality program

Quiz#3,Assign#3, Calculating Process capability ratio/index

19,20, 21 (3 Hrs)

Capacity Planning– Capacity planning, Economies of scale at work, systematic approach to capacity decisions, Tools for capacity planning.--Waiting Line Models-Why waiting lines form, uses of waiting line theory, Structure of waiting line problem, Analyzing Operations.

Review Quiz#3, Pictorial – Crane operation, Discussion on comments by class (Submit Final report draft print for feedback)

22-24 MID TERM EXAM

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25,26, 27 (3 Hrs)

Location – Globalization and geographic dispersions of operations, factors affecting location decisions, Locating a single facility, Locating within a network of facilities

Discuss MID-TERM Exam solution. Video-Panama Canal Operations

28, 29, 30 (3 Hrs)

Layout – Layout planning, Retailers match layouts to strategies, layout types, Layout flexibility at work, creating hybrid layouts, Designing process layouts, designing product layouts.

Video- Layout of a Steel Mill/ Cement manufacturing plant Return of reports after feedback.

31, 32, 33 (3 Hrs)

Supply Chain Management- Vertical Integration, Selection of suppliers

Quiz#4,Assign#4, Video-Cargo handling at an Airport, Video-DHL operations

34,35, 36 (3 Hrs)

Inventory Management – importance, function, inventory concepts, --- Economic Order Quality, inventory control systems, ABC analysis

Review Quiz#4, Numerical problems on EOQ/ABC analysis

37, 38, 39 (3 Hrs)

Resource Planning -MRP, Aggregate Planning , Quiz#5,Assign#5, (Submit Final Research Report after corrections -both hard & soft copy of report & presentation )

40, 41, 42 (3 Hrs)

JIT systems- KANBAN system, Lean production, Lean manufacturing

Review Quiz#5, Video- Lean manufacturing

43, 44, 45 (3 Hrs)

Revision Report Presentations. Mandatory for all class students to attend all presentations

46-48 Final Exams

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Topics for Research-Operations Management ------ (01 topic per class)-----

1. O.M at an Engineering goods export firm.

2. O.M in a Power Generating & Supplying company.

3. O.M at a sea port with reference to Cargo Handling.

4. O.M at an Engineering firm assembling/manufacturing domestic appliances.

5. O.M. at a paint manufacturing company.

6. O.M. at a Garment Super Store.

7. O.M at a sea port with reference to Custom Clearance.

8. O.M at sea port with reference to Cargo Handling Operations (Bulk)

9. O.M. at a Garment Manufacturing Firm producing 1000 jeans /day.

10. O.M at an airport with reference to Flight Operations.

11. O.M at an airport with reference to Cargo Handling Operations.

12. O.M at a socks manufacturing company exporting as per international quality

standard.

------ (01 topic per class)-----

13. Capacity planning at a Bank Branch serving 10,000 customers per day. (Located in

Suburbs of Karachi)

14. Capacity planning of an Emergency Trauma Center at center of a city having

population of 0.5million people.

15. Capacity Planning of a Public Hospital serving a population of 1.5 – 2 million

people.

16. Capacity planning for extension of Pakistan Steel Mills. (Karachi)

17. Capacity planning of a Clothing Super Store required to serve 1000 customers / day.

18. Capacity planning for setting up a fast food restaurant in a city of 5m population/

serving 1000 customers /day.

19. Capacity planning for setting up a fast food restaurant in northern suburbs of

Karachi having 01million population.

20. Capacity planning at a Furniture super store attending 1000 customers/day.

21. Capacity planning at a General super store (200 items in 10 different categories)

serving 1000 customers/day.

------ (01 topic per class)-----

22. Locating a Railway Station in a small town off the main RCD Highway route in

Baluchistan, serving 0.2 million population.

23. Locating a Steel Mill along the coast line.

24. Locating Police HQs in a city on coastline having population of 0.5 million

scattered over in 05 towns.

25. Locating a hospital for a population of 02 million people scattered over 10 towns of

Karachi.

26. Locating a bank branch in Karachi suburban town of 02million population.

27. Locating an airport for a city of 02 million population along Baluchistan coastline.

28. Location planning of a fast food restaurant to serve population of 0.5 million along

Baluchistan coastline.

------ (01 topic per class)----- 29. Layout planning of an Export Processing Zone along the coastline designed to

support 400 industrial units of various nature.

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30. Layout planning of an Emergency Trauma Center at heart of a city having

population of 1.5million people.

31. Layout planning for constructing a Sports Arena for conducting 5 National Games

at northern suburbs of Karachi.

32. Layout planning of a Pizza restaurant along the Karachi coastline to serve 5,000

customers daily with an expected growth rate of 30% each year.

33. Layout planning at a Clothing super store serving 1000 customers/day. (all age

groups and all seasons’ clothing ).

34. Layout planning of a medical super store (500 items of 25 categories) serving 500

customers per day.

35. Layout planning of a new town along side the super highway having low cost

housing including all amenities and facilities required for population of 01 million.

------ (01 topic per class)-----

36. Inventory Management at a Manpower supply firm.

37. Inventory management at a Biscuit Mfg. company (production & distribution ).

38. Inventory Management at a Cement Mfg. firm (50,000 tons/yr)

39. Inventory Management at an automobile manufacturing firm producing 20,000

units a year(4 different models).

40. Inventory Management at Paint mfg. firm producing 50,000 Ltrs/day (4 different

quality).

41. Inventory Management at a Textile Mfg. producing 50,000 meter of cloth of 5

different qualities.

42. Inventory Management at a Super Book Store serving all sectors of education.

(including 10 main disciplines)

43. Inventory Management at a University Campus book store.

------ (01 topic per class)-----

44. JIT inventory management in a frozen Poultry goods supplying firm. ( in 03 most

populated towns of Karachi )

45. JIT inventory management in a computer hardware supply house

46. JIT inventory management in a Textile manufacturing producing bed sheet / terry

towels around 100,000 meters /year .

47. JIT inventory management in a fast chain restaurant serving 1,000 burgers a day in

a coastal recreational area.

48. JIT inventory management at a Bread manufacturing company producing 10,000

breads per day and supply to customers in a city of 5 million population.

49. JIT inventory management in an automotive spare parts supply centre (of 04 major

automobile manufacturers), serving 500 customers per day in downtown area.

------ (01 topic per class)----- 50. Resource planning at frozen foods supplying firm serving a town of 5 million

population in Karachi Metropolitan.

51. Production Planning and control in an automobile manufacturing concern.

52. Production Planning and control in an Ice cream manufacturing concern producing

03 different brands.

53. Production Planning and control in Sweet manufacturing concern 20 different

product lines.

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54. Production Planning and control in a modular furniture manufacturing concern

producing home improvement products.

55. Production Planning and control in a dress shirt manufacturing concern producing

for export.

------ (01 topic per class)----- 56. Develop a Master Production Schedule of a major airline operating across Eurasia.

How is it analogous to MPS for a manufacturer?

57. Develop a Master Production Schedule of a Courier service operating across Afro

Asia. How is it analogous to MPS for a manufacturer?

58. Develop a Master Production Schedule of a major inland passenger train service

operating across country . How is it analogous to MPS for an airline?

59. Develop a Master Production Schedule of a major intercity goods transport service.

Compare the same with MPS for a manufacturer.

60. Develop a Master Production Schedule of a major city water supply system through

a river/reservoir. How is it analogous to the MPS for a Courier service.

RESEARCH PROJECT GUIDELINES

OPERATIONS MANAGEMENT –BBA/MBA PROGRAM

1. Scan through the book on Operations Management along with your group after first session and read the chapter concerning the area you desire to research. Discuss the same and get it approved by me before the second session. After this feel free to discuss with me to clarify any doubts before and after the selection of the topic. Divide and record in writing the division of work with in your group.

2. Obtain the cooperation of a manager at organizations (manufacturing or non-manufacturing) of your choice of business / industry sector who is responsible for a significant operations that provides a service/product. You may take introductory letter from me on behalf of University, if you think it may help. After introducing yourself and explaining the research assignment, request a visit to tour their facility.

3. Make a list of the questions that you want to ask before you visit about the operation, such as inputs, outputs, internal and external customers, process structure, customization, customer contact, volume, technology, quality, capacity, layout and the nature of operations the firm is involved in.. This list will help make sure that you don't omit any of the relevant topics covered in the course. Look over carefully the chapters in the book that cover these topics, so that you can do many parts of the report early on, rather than waiting until the final due date approaches. Ask questions about their operations relevant to the area you have selected. This must be completed by 4th session to be on target.

4. Select the operation (and its starting and stopping points) as broadly as possible in terms of the activities performed and employees involved. The operation should not be just a one or two persons operation. The operation should not be so broad as to loose shared characteristics in terms of activities performed, type of customer involvement, standardization of the work, automation, and the like. It is desirable, although not necessary, for the operation to cut across traditional functional lines.

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5. Arrange the visit(s) and interviews, so that you will be in a position to describe and analyze the operations/processes. Then again visit the organization. Spend time touring the facility (which may be briefer for some small firms in the service sector) and interviewing key individuals. Don't be shy about asking questions. Of course, be considerate about what you ask. The entire process may take a couple of hours or more.

6. Meet with your group as soon as you can after your group visit to discuss what you learned. As a starting point, describe the operation/process that you wish to describe using a flowchart. A process chart might also be helpful. Make a second/third or more visits to get more details on the operations/ process, and information for preparing your charts and reports. You may also need additional trips to get a more thorough understanding of the operations.

7. Prepare the report following the principles you have learned in the course of “Business Communication” and “Business Research Methodology”. Make sure you record the date and time against the website you have accessed and referred for the secondary data in the bibliography.

8. The report should be preceded by a one-page executive summary and a title page listing the group members. The body of the main report should not exceed 12 numbered pages. The report should be followed by an appendix that includes any supporting exhibits (no page limitations on the appendix). This report, which you might want to share with the firm, should be a polished product appropriate for presentation to upper management.

9. Report should be completed in all respect prior to mid term exam, except binding/color and/or presentation slides, simply stapled and turned in as per schedule.

10. I will INSHALLAH return the same after mid-term exams along with comments and deficiencies. Now you will have exactly 2 weeks to resubmit the final report.

11. One hard copy of the report and the soft copy of both report & presentation( in my office computer ) must be completed and turned in prior to the day of 14th session of the course.( reports through use of unfair means will be penalized severely)

12. Each group will make a 15-minute presentation of its report to the class, including 5 minutes for questions. The presentations will be made on the day of 15th session. I will keep the soft copy of the report and deposit the hard to the library for record. Visual aids and other creative presentation options can enhance your presentation.