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Never Stand Still Business School
Course OverviewAGSM @ UNSW Business SchoolAGSM MBA Programs
Session 3, 2014
business.unsw.edu.au/agsmCRICOS Code 00098G
MNGT6233Operations Management
Contents
Course calendar 1
Session 3, 2014 1
Course outline 2
Course structure 3
Aims of the course 7
Assessment 8
Assessment policy 8
Summary of requirements 8
Assessment 1 – Assignment 1 9
Assessment 2 – Assignment 2 9
Assessment 3 – Assignment 3 9
Assessment 4 – Final exam 10
Learning technology 11
Notes and DVD 11
Text books 11
Equipment you will need 12
Saturday workshops 12
Online resources 12
AGSM MBA Programs contact details 14
Appendices 16
Operations Management 2
Course Overview 1
Course calendar
Session 3, 2014
Operations Management 2
Course outline
At a fundamental level, any business or organisation is concerned with delivering value to its customers or clients. The ‘operations’ of a company are the direct processes that a company uses to create value: they involve transforming inputs of some sort into outputs. Operations management is the task of managing these processes. Each company or organisation will have a unique set of operations, whether this is dealing with phone calls at a call centre, manufacturing cardboard from recycled paper, running room service in a hotel or dealing with passengers of an airline. This course is about the fundamentals of operations management, covering both service industries and manufacturing. The aim is to give you a set of frameworks and concepts you can use to understand the operations functions and strategies of any company.
MBA Program Learning Goals
This course contributes to the development of the MBA (Executive) Program Learning Goals, which are the qualities, skills and understandings we want you to have by the completion of your degree, as indicated below:
• An in-depth engagement with the relevant disciplinary knowledge in its interdisciplinary context
• Team based skills
• Critical and analytical thinking
• Decision-making and problem-solving
• An ability to manage change.
Program Learning Goals are developed throughout the program of study. Each course will not necessarily address all Program Goals or develop them to an equal extent.
Course Overview 3
Course structure
There are three themes that run through this course:
• Customers – we will keep on coming back to the customer, since value
to the customer is our ultimate aim;
• Systems – we will treat the operations of a company as a system, and try
to understand the interacting elements;
• Variability – dealing with operations will force us to recognise the
unpredictability and variability of the processes that we manage.
The course content is organised into four sections:
Firstly, we investigate the processes that are at the heart of operations management. Even though there is enormous variety in these processes, there are a number of important ideas that will apply in any operation.
Secondly, we look at achieving excellence in operations. What does it mean to have high quality operations and how can this be achieved? Answering these questions will take us beyond purely quality issues and we will see how lean operations aim to eliminate all forms of waste within operations.
Thirdly, we deal with the movement of materials through the supply chain. We will consider the control of inventory and the way in which coordination between supply chain partners can be achieved.
Our focus for most of the course is on processes that are carried out repeatedly. In the fourth section, however, we will consider processes that are individual and unique – as happens with a project. The operational challenges in managing projects are quite different from those involved in managing repeated processes, and involve careful planning of inter-related activities.
Operations Management 4
Processes
Unit 1 Operations
Unit 2 Process analysis
Unit 3 Queues in service operations
Achieving excellence
Unit 4 Managing for quality
Unit 5 Statistical quality control
Unit 6 Lean operations
Supply chains
Unit 7 Introduction to supply chains and inventory management
Unit 8 Inventory with uncertain demand
Unit 9 Improving supply chain performance
Projects
Unit 10 Managing projects
Unit 11 Risk in projects
Summary
Unit 12 Course review
Course Overview 5
1. Processes
Our starting point is to review some of the variety of different types of operations. In Unit 1, Operations, we will explore different ways in which the operations of a company can be organised. We will explain the connection between this choice and the aim of delivering value to the customer. This unit will provide a context for the material in later units and also introduce you to some important concepts and vocabulary.
In Unit 2, Process analysis, we will look in more detail at the nature of operations as transformations. In this unit our focus is on the process. We introduce the flow diagram as a tool for understanding processes, and we introduce key concepts that relate to processes: cycle time, capacity and lead-time. We look in detail at what determines the capacity of an interacting set of activities, which together make up an operations process. Then we apply these ideas to designing a balanced system to maximize process output.
For customers, one of the most visible aspects of a service operation is the waiting time. In Unit 3, Queues in service operations, we focus on queues that are both a symptom and cause of waiting. Queues are a feature of situations in which there is high variability and high capacity utilisation. We will give some important tools that can help you to understand and manage congestion and queues.
2. Achieving excellence
Good operations management is not about setting up the operations of an organisation and then walking away. Operational excellence involves a continual process of monitoring and improvement. In Unit 4, Managing for quality, we discuss ways to achieve high quality in operations processes. We introduce some of the tools to achieve quality within operations processes. We also discuss issues associated with employee empowerment: front line employees are the key to obtaining high quality in any organisation.
A fundamental issue for quality is the variability inherent in all processes. In Unit 5, Statistical quality control, we discuss types of variability and the way that control charts can be used to track process performance. Carefully measuring and monitoring what is actually happening in a process is the only way to achieve long-term improvement in performance.
In Unit 6, Lean operations, we introduce some ideas from Just-in-Time (or lean) operations. A lean operation treats any kind of waste as a defect in the process. Lean operations move away from a ‘batch and queue’ approach, and instead aim for very low inventory levels and small batches. In lean operations, control is usually achieved using a ‘pull’ mechanism that requires close relationships with suppliers who need to deliver small batches on demand.
Operations Management 6
3. Supply chains
In the third part of the course, we look at how the value chain operates. We consider the role of inventory in supply chains. Often different firms own different parts of the supply chain. We address ways in which actions of different firms in the value chain can be coordinated to deliver value to the final customer. In Unit 7, Introduction to supply chains and inventory management, we discuss the fundamentals of supply chain management and the reasons for holding inventories as well as the costs associated with them. We focus, in particular in this unit, on cycle inventory and the best way to trade off the various costs involved.
Besides cycle inventory, the most important type of inventory is buffer inventory, which is used to deal with uncertainty in demand. In Unit 8, Inventory with uncertain demand, we investigate a number of different inventory control methods. It is important to understand the nature of variability in demand in order to choose the best way to manage the inventory.
In Unit 9, Improving supply chain performance, we turn to the broader supply chain context for our decisions. By only looking at our own company or organisation and ignoring the rest of the supply chain, we run the risk of taking decisions that lead to poor outcomes for the supply chain as a whole. The solution is to ensure that the contract structure between different supply chain partners is set up appropriately.
4. Projects
In the final part of the course, we consider project management. We will explain the key techniques of project management and show how they can be used in practice. In Unit 10, Managing projects, we will review fundamental issues associated with the role of the project manager and the ways in which projects can be set up. We also explain the use of network methods for scheduling project activities.
In Unit 11, Risk in projects, we look at how to track the progress of projects. We discuss different types of project risk. We show how Monte Carlo techniques can be used to assess the way that uncertainty in activity duration impacts on the project as a whole.
Finally, in Unit 12, Course review, we will summarise all the concepts from the course. We will review the material of the course from the point of view of the three themes: customers, systems and variability. Successful operations management requires us to keep the customer in mind in all the decisions we take, to view our operations as a system made up of interconnected activities, and to understand the impact of variability in our operations.
Course Overview 7
Aims of the course
When you have completed this course you should be able to:
• Analyse different types of operations processes, calculate the capacity of operations systems and predict customer waiting times.
• Develop and use strategies for improving the performance and quality of operations.
• Determine appropriate levels of inventory within a supply chain and diagnose reasons for poor service and excessive inventory.
• Plan activities in a project environment and analyse the effect of variability.
Operations Management 8
Assessment
Assessment policy
The assessment process plays two roles: it provides feedback to you on your progress, and is a means of testing and grading your performance. All information on assessment is provided in the Assessments & examinations section of the AGSM website.
http://www.asb.unsw.edu.au/currentstudents/agsmmba/academicinformation/assessmentsandexaminations/Pages/default.aspx
Summary of requirements
In order to pass this course, you must achieve an aggregate (overall) mark of at least 50.
Assessment 1 – Assignment 1
Due: Week 4
Weight: 20%
Assessment 2 – Assignment 2
Due: Week 7
Weight: 20%
Assessment 3 – Assignment 3
Due: Week 10
Weight: 20%
Assessment 4 – Final exam
Date: Saturday, 6 December 2014
Weight: 40%
Duration: Three (3) hours
Course Overview 9
Assessment 1 – Assignment 1
Due: Week 4
Weight: 20%
The first assignment is given out in week 1 and has to be handed in at the class in week 4. It assesses material covered in the first three units. This is a short assignment. It serves as a check that you have a good understanding of this foundation material.
Assessment 2 – Assignment 2
Due: Week 7
Weight: 20%
The second assignment is given out in week 4 and has to be handed in at the class in week 7. This assignment requires you to look in detail at one quality issue arising in your organisation. Some of the exercises in Units 4 and 5 suggest that you consider applying the concepts to your own organisation and these exercises may well assist you in carrying out this assignment.
Assessment 3 – Assignment 3
Due: Week 10
Weight: 20%
The third assignment is given out in week 7 and has to be handed in at the class in week 10. It assesses material covered in Units 7, 8 and 9. The questions in this assignment are related to supply chain management practices.
Operations Management 10
Assessment 4 – Final exam
Date: Saturday, 6 December 2014
Weight: 40%
Duration: Three (3) hours
Open book exam policy
The MBA (Executive) Program has a policy of open book examinations. Participants may bring their course materials into the exam session. The materials may be annotated, and the use of Post-itTM Notes is permitted. Your own study notes are also permitted. But participants are strongly cautioned against copying the work of others. Copying the work of others is plagiarism.
Calculators with alpha keypads, laptop computers and other electronic devices are prohibited. Students from non-English speaking backgrounds who have written approval from Academic Affairs may use standard linguistic dictionaries; no other dictionaries are permitted. If you inadvertently enter the exam session with prohibited material or equipment, please surrender it immediately to the examination supervisor.
Participants should not rely heavily on looking up answers during the exam itself. This will be time consuming and a source of frustration. A recommended method of preparing for the exam is to write a one-page summary of each unit. Before participants commence writing their examination answers, they may find it helpful to prepare a brief plan for each question.
Information on the examination location and time will be advised closer to the exam date. For full details on examination policy and procedures, please refer to the AGSM MBA Programs website. For your reference, a sample exam paper is included as Appendix 2.
Course Overview 11
Learning technology
Notes and DVD The notes for Operations Management include a course overview and 12 study
units. Units often include readings and case studies complementing the notes.
They are included at the end of each unit as appendices. The case studies are new and have been specially written for this course. Besides showing how the course material is relevant to Australian business practice, they also serve to introduce you to the variety of operations found in different industries.
A DVD is included and contains a number of Excel spread sheets and
Extend files. These files have been designed to allow you to experiment with various parameters and obtain a better understanding of some of the important relationships that we explore in the course. This DVD is called MNGT6233 Operations Management, the files can be found inside the Students’ Data Files folder, under Resources. The DVD is included in your course materials pack. A list of the files on this DVD can be seen in Appendix 1 at the end of this course overview.
The exercises in the notes are placed to reinforce concepts and help you acquire skills. In addition, an appendix at the end of each unit includes solutions to the exercises in the unit; another appendix at the end of each unit gives some additional practice questions for that unit. Finally last year’s exam paper, together with solutions, is given in Appendix 2.
This course makes occasional reference to probability distributions. This concept will be familiar to you if you have already studied Data Analysis and Statistical Modelling for Business. But you need not worry if you have not yet studied Data Analysis. The particular concepts we need are introduced as we go along. A summary of the material we will use is given in Appendix 1 at the end of this course overview.
Text books
The course notes have been written to be complete and self-contained and there is no need to refer to any other material. However, if you wish to read further about the subject of Operations Management, there are a number of textbooks available. The following texts are all worthwhile:
Davis, M. & Heineke, J. 2005, Operations management: Integrating manufacturing and services, 5th ed., McGraw-Hill, Boston.
Heizer, J. & Render, B. 2013, Operations management, 11th ed., Pearson Prentice Hall, Upper Saddle River, N.J.
Krajewski, L., Ritzman, L. & Malhotra, M. 2012, Operations management: Processes and supply chains, 10th ed., Prentice Hall, Upper Saddle River, N.J.
Slack, N., Chambers, S. & Johnston, R., 2010, Operations management, 6th ed., Pearson Education, New York.
Operations Management 12
Equipment you will need
You will need an IBM compatible PC to run Excel and the Extend software package. However we will not assume any skills beyond that of a novice user of Excel.
In the examination you will need to carry out calculations using a calculator (since you are not allowed to bring a computer into the examination).
Saturday workshops
There are two Saturday workshops for Operations Management. They are compulsory. They will provide you with the opportunity to learn more about analysing operations processes using simulation methods and also about the dynamic behaviour of supply chains.
The ExtendSim 7 software can be downloaded from the Imagine That Inc. website (link on course website). Instructions for installing this are given in Appendix 3. Students should install this as soon as possible to allow time to sort out any problems and to get familiar with using it. Students need to be able to use this software before the workshop.
Online resources
Website
The MBA (Executive) current students’ website provides administrative information relating to classes, workshops, exams and venues. The students’ website should be referred to for information on policies and relevant forms required.
• http://www.asb.unsw.edu.au/currentstudents/Pages/default.aspx
eLearning
eLearning@AGSM MBA (http:// telt.unsw.edu.au)
We are also using an online environment called eLearning. By providing you with this online environment we hope to stimulate the sharing of ideas and understandings around the content of this course.
Course Overview 13
The online documents are PDF (Portable Document Format) files, which allow you to access the course units in the same visual format contained in the course material binders. The PDF files can be viewed, printed and navigated using Adobe Acrobat® Reader.
Articles to which the AGSM MBA Programs do not have copyright are not included as online documents.
To access eLearning@AGSM MBA, go to http://telt.unsw.edu.au/ and select Login to UNSW Moodle.
Login to the web Single Sign On (wSSO) using these details: Username: zNumber Password: zPass
Should you have any difficulties accessing your course online, please
contact the eLearning support below:
For login issues:
UNSW IT Service Centre
Hours: Monday to Friday: 8.00 am to 8.00 pm
Saturday and Sunday: 11.00 am to 2.00 pm
Email: [email protected]
Phone: Internal – x51333
External – +61 2 9385 1333
For assistance in using Moodle, including how to upload assessments:
The AGSM eLearning Coordinator
Tel: +61 2 9931 9541
Email: [email protected]
Phone: Internal – x19541
External – 02 9931 9541
International – +61 2 9931 9541
Operations Management 14
For help with technical issues and problems:
External TELT Service Centre
Hours: Monday to Friday: 7.30 am to 9.30 pm
Saturday and Sunday: 8.30 am to 4.30 pm
Email: [email protected]
Phone: Internal – x53331
External – 02 9385 3331
International – +61 2 9385 3331
AGSM MBA Programs contact details
Student Experience
If you have any administrative queries, they should be addressed to Student Experience.
Student Experience AGSM MBA Programs Australian School of Business UNSW SYDNEY NSW 2052
Tel: +61 2 9931 9400 Fax: +61 2 9931 9205 Email: [email protected]
Additional student resources and support
The University and the Australian School of Business provide a wide range of support services for students, including:
• AGSM manual: Managing Your Learning
• ASB Education Development Unit (EDU) (www.business.unsw.edu.au/edu) Academic writing, study skills and maths support specifically for ASB, AGSM and MBT students. Services include workshops, online and printed resources, and individual consultations. EDU Office: Room GO7, Ground Floor, ASB Building (opposite Student Centre); Ph: ++61 2 9385 5584; Email: [email protected]
Course Overview 15
• UNSW Learning Centre (www.lc.unsw.edu.au)
Academic skills support services, including workshops and resources, for all UNSW students. See website for details.
• Library training and search support services
http://info.library.unsw.edu.au
• eLearning information [email protected]
• UNSW IT Service Desk Technical support for problems logging in to
websites, downloading documents etc. Library, Level 2; Ph: +61 2 9385 1333. Website www.its.unsw.edu.au/support/support_home.html
• UNSW Counselling Service (www.counselling.unsw.edu.au)
Free, confidential service for problems of a personal or academic nature; and workshops on study issues such as ‘Coping With Stress’ and ‘Procrastination’. Office: Level 2, Quadrangle East Wing; Ph: +61 2 9385 5418
• Student Equity & Disabilities Unit (http://www.studentequity.unsw.edu.au) Advice regarding equity and diversity issues, and support for students who have a disability or disadvantage that interferes with their learning. Office: Ground Floor, John Goodsell Building; Ph: +61 2 9385 4734
Operations Management 16
Appendices
Appendix 1 Software and files for Operations Management
Appendix 2 Sample exam paper and solutions
Appendix 3 Software installation instructions for Extend Demo
Appendix 4 Note on probability distributions
Appendix 5 Assessment cover sheet
