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Loyola University Chicago

John Felice Rome Center

OpMg 332 Operations Management

Fall 2014

LOYOLA UNIVERSITY ROME CENTER

 

Operations Management (OPMG 332)

TR 3:40PM-4:55PM

Fall 2014 Syllabus

 

I. GENERAL INFORMATION

 

Instructor:      Marshall Langer

Office hours:  By appointment (convenient times: TR 1:45-2:20pm or 5:00-6:00pm)

Telephone:     +39 3471763096

Email:             mlanger11@gmail.com

Background:   Corporate management, operations department; Wall Street.  Wharton MBA.

 

II. COURSE INFORMATION

 

1. Course Description.  This course provides a general management perspective of the role of operations in companies in both manufacturing and service industries. It offers a broad survey of the concepts and techniques involved in designing and managing operations. Students explore the role of operations in building the competitive strength of the firm and in fulfilling the firm’s goal of creating value and delivering customer satisfaction. Focus is on the leading decisions Operations Managers must make within the wider corporate and industry context, from initial product and process design to inventory and quality management, maintenance and development over time.

 

This course is designed to provide a survey of the field of operations, focusing more on the operations side of management while also presenting the mathematical component.  The course is designed to illustrate the 10 key decisions facing operations managers; it is divided into the following 3 modules: 1) Designing Operations, 2) Managing Operations, and 3) Quantitative Methods.  Module 1 provides a broad introduction to OM, covering quality, control, project management, capacity planning, location and layout strategies, and measurement.  Module 2 focuses supply chain management, early-stage business operations management, inventory management, constraints, and just-in-time methods.  Module 3 presents forecasting, and decision-making tools.

 

Both the teaching approach and the textbook emphasize a real-world strategic, and global focus.  Current issues and the latest strategies and tools are discussed.  The importance of operations in a firm’s quest to create competitive advantage in the global marketplace is shown.  The teaching approach, a mix of lectures and case analyses, encourages students to develop logical, well-supported recommendations.  Teams will be employed in case and other analysis in order to simulate working situations.

 

The course is divided into 5 parts, as follows.

 

1. Budgeting and Forecasting

2. Designing Operations

3. Managing Operations

4. External Operations

5. Work-based Applications

 

3. Learning Objectives.

 

  1. Explain the  key role that the operations function plays in creating the competitive strength of the firm.  

 

  1. Develop comprehensive, clear written and mathematical analyses that make sense and that foster the decision-making process.

 

  1. Effectively assess a well managed and well executed operations strategy. 

 

  1. Effectively identify effective soft management skills applicable to operations management.

 

III. LEARNING ACTIVITIES

 

1. Interactive Class Lecture.  Class lecture is highly interactive.  Instructor prompts students for response to questions posed and solicits his/her thoughts on issues discussed.  Format is probing and direct.  Additionally, instructor provides concrete, real-world examples to illustrate concepts.  Lecture format reinforces by example appropriate methods for asking questions, gaining relevant insights, and acting persuasively and sensitively. (Achieves Learning Objectives A, B, C, D)

 

2. In Class Presentation of Readings by Professor and Students.  Textbook and other assigned readings (assigned according to the schedule in section VII of this syllabus) present relevant topics, which are covered more in-depth in class lecture.  In class discussion of readings, instructor highlights most relevant reading topics, showing by example how to present data in a stimulating way, consistent with achieving course objectives. (Achieves Learning Objectives A, C)

 

3. Case Study and Short Assignments.  Case studies are used to further illustrate real-world examples of subject topics.  For all assigned cases, students should be prepared to answer questions about the case and be able to illustrate in class its more subtle aspects.  In-class discussion of case studies serves to highlight analytical methods, indicating specifically, ways to discern the most relevant focal points. (Achieves Learning Objectives A, B, C, D)

 

4. Term Project (for select students).  For this individual project, you must observe the operations of a local business (for example, a café, restaurant, retail store, etc.).  Present your determination as to how that business might operate more profitably by employing course concepts.  The term project submission should be no longer than 2 pages.  Use section VI of this syllabus as a further guide for all written submissions. 

 

The term project serves to incorporate course objectives and accomplish course outcomes.  Students must display a mastery of course concepts, utilize tools taught, and present their analysis in a compelling, interesting manner. (Achieves Learning Objectives B, C)


IV. ASSESSMENT

 

1. Grades.

                       

40%     Midterm Exam

45%     Final exam

5%       Quizzes, case study presentation, short assignments

10%     Class participation

5%       Term project (for select students to supplement low exam grade)

 

2. Exams.  Exams will be comprised of essay questions that test your ability to apply concepts discussed through the exam date.  (Measures Learning Objectives B, C, D)

 

3. Quizzes. Short, in-class quizzes will test your comprehension of course materials to date. (Measures Learning Objectives B, C, D)

 

4. Case Study; Short Assignments. Used for students to provide evidence that learning objects are being achieved. (Measures Learning Objectives A, B, C, D)

 

5. Class Participation. You will be graded on the quality of, and demonstrated insight of, your in-class comments, including comments related to verbal case analyses and answers to assigned problems. (Measures Learning Objectives A, C, D)

 

6. Term Project.  For select students, see description in syllabus section III #4. (Measures Learning Objectives B, C, D)

 

7. Attendance. Attendance is mandatory, however a student may miss up to 5 classes without penalty or explanation.  You may not miss 2 classes in a row without prior approval of instructor.  More than 5 unexcused absences will result in a reduced grade in the course.

 

8. Please see Loyola guide. For additional information on grading, plagiarism, and other class related issues.

 

V. REQUIRED COURSE MATERIALS

 

1. Required reading:

 

Heizer, Render, Principles of Operations Management 8th Edition, Prentice Hall, 2011.  (Referred to in course schedule as ”OM”).

                         

Textbook Website: http://www.prenhall.com/heizer


VI. SUGGESTED ADDITIONAL READINGS

 

1. Books.

 

Kaplan, Norton, The Strategy-Focused Organization, HBS, 2000

Crosby, Let's Talk Quality, McGraw-Hill, 1989

Porter, The Competitive Advantage of Nations, The Free Press, 1990

Carroll, Gannon, Ethical Dimensions of Int’l Management, Sage Publications, 1997

Annacchino, New Product Development, Butterworth-Heinemann, 2003

Koehn, Brand New: How Entrepreneurs Earned Consumer’s Trust, HBS Press, 2001

Blattberg, Getz, Thomas, Customer Equity: Building and Managing Relationships, HBS, 2001

Hill, Think and Grow Rich, St. Martin’s Press, 2001

 

2. Internet Sites.

 

http://www.brint.com for business research in information and technology

http://www.blackwellpublishing.com/essentialmedstats/004.pdf - clear explanation of st. dev.

http://www.asq.org for American Society of Quality

http://www.sme.org for the Society of Manufacturing Engineers

http://stats.bls.gov for U.S. Bureau of Labor Statistics

www.econ-datalinks.org for American Statistical Association

www.sec.gov for public company filings (all U.S. public plus foreign public with U.S. listings)

www.hoovers.com for summary company info, comparables search, etc.

www.baddesigns.com funny website highlighting poorly designed products

www.statsoft.com for straightforward explanations of statistical terms and concepts

 

3. Periodicals.

 

Business Week, Harvard Business Review, The Journal of Operations Management,

Harvard Business Review (HBS), Sloan Management Review (MIT), Industrial Management, Management Science


VII. CLASS SCHEDULE

 

Please note: You are not required  make a written submission unless instructed to do so.  Reading should be completed prior to class.  You should be prepared to discuss EOC problems in class (answers are posted online).

 

 

#

 

Date

 

Instruction /

Activity

 

Topic /

Written Assignment Due (if any)

Reading

Assignment

(Read for assigned class)

1

 

Lecture

Course introduction.

See OM consulting reading (CC) posted online

INTRODUCTION TO OPERATIONS MANAGEMENT

2

 

Lecture

 

 

 

 

 

- - - - - - - - - - - - - -

EOC practice problems

Strategic OM decisions.

-  - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Quality management.

-  - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Quantitative applications for specific industries, business and departments

-  - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

6.13

OM: C2 p39-p42

- - - - - - - - - - - - - - -

OM: C6 p200-p204

- - - - - - - - - - - - - -

Posted online

3

 

Excel

Basics of Microsoft Excel.

Excel basics part 1 and 2 (optional)

BUDGETING AND FORECASTING

4

 

Lecture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - - - - - -

EOC practice problems

Budgeting for and forecasting operations: designing spreadsheets and using tools.

 

 

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Cost accounting (optional)

 

-  - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

4.2, 4.5

Optional readings

See Capital Budgeting and Forecasting (FM) reading posted online

 

FA: Sections 3 and 4

FA: Sections 6.1-6.2,

                      7.1-7.8

 

OM: C4 p106-p131

 

See FAO budget posted online

- - - - - - - - - - - - - - -

Cost accounting reading posted online

DESIGNING OPERATIONS

Capacity Planning

5

 

Lecture

 

 

- - - - - - - - - - - - - -

EOC practice problems

Capacity planning.

 -Breakeven

 -Valuation

-  - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

S7.16, - S7.27 (on break even)

Extra FYI: S7.33, S7.35 (on NPV)

OM: C7 supplement

               p282-288,

               p292-p301

 

6

 

Lecture

Capacity planning continued: planning for supply/demand fluctuations.

Excel spreadsheet posted online

7

 

Case Study

Genentech

p3-p11

Control

8

 

Lecture

 

 

 

 

 

- - - - - - - - - - - - - -

EOC practice problems

Introductory statistical analysis: standard deviation, probability distributions, central limit theorem, confidence intervals, quantitative analysis, volatility.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Statistical process control – x-bar and r charts.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

S6.5, S6.11, S6.19

OM: C6 supplement

              p218-p226

 

 

 

 

#

 

 

Date

 

Instruction /

Activity

 

Topic /

Written Assignment Due (if any)

Reading

Assignment

(Read for assigned class)

9

 

Case Study

Deutsche Allgemeinversicherung

p4-p9

10

 

Review

- - - - - - - - - - - - - -

Lecture/Film Clip

Review statistical process control.

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

Introduce assembly lines

--

Layout Strategies

11

 

Lecture

- - - - - - - - - - - - - -

EOC practice problems

Assembly lines.

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

9.16, 9.17

OM: C9 p360-p365

Scheduling

12

 

Guest Lecture

(Francesco Amendola)

 

 

 

- - - - - - - - - - - - - -

EOC practice problems

Assembly lines – cont’d.

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

Gantt charts.

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

Short term scheduling.

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

9.19

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

15.1, 15.2, 15.10, 15.12, 15.14

--

- - - - - - - - - - - - - - -

OM: C15 p590-p591

- - - - - - - - - - - - - - -

OM: C15 p594-p596

 

13

 

Activity

OM management activity

--

14

 

Review

Midterm exam review.

--

15

 

Exam

Midterm Exam

--

 

 

 

 

#

 

 

Date

 

Instruction /

Activity

 

Topic /

Written Assignment Due (if any)

Reading

Assignment

(Read for assigned class)

MANAGING OPERATIONS

Product Development

16

 

Lecture

- - - - - - - - - - - - - -

EOC practice problems

Product design: House of quality

- - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

5.1, 5.17

OM: C5 p158-p163

17

 

Film

Cola Wars (product development, supply chains)

--

Supply Chain Management

18

 

Lecture

 

- - - - - - - - - - - - - -

Case Study

- - - - - - - - - - - - - -

EOC practice problems

Supply chain management.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

SKS/Deloitte

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

11.8, 11.9, 11.10

OM: C11 p424-p431

                p434-p438

- - - - - - - - - - - - - - -

p5 (bottom) - p10

19

 

Simulation

Supply chain / inventory management computer simulation.

Excel spreadsheet posted online

EXTERNAL OPERATIONS

Waiting Line Models

20

 

Lecture

 

- - - - - - - - - - - - - -

EOC practice problems

Waiting-line models (cost/benefit).

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

D.11, D.21

Module D posted online

WORK-BASED APPLICATIONS

Traffic Flow Management

21

 

Lecture

Traffic management

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Traffic management model

See Traffic Flow Management Excel spreadsheet posted online

22

 

Review/activity

Application of topics since Midterm Exam.

--

Negotiations

23

 

Lecture

Negotiating using analytical bases.

Behavior of successful negotiators (NE) posted online

Retail Management

24

 

Lecture

 

- - - - - - - - - - - - - -

EOC practice problems

Inventory management.

Same store sales analysis.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

12.12, 12.17, 12.18, 12.25

OM: C12 p475-p484

Posted online

Finance Applications

25

 

Lecture

Valuation analysis.

Valuation reading (EY) posted online

26

 

Review

Final Exam review

--

27

 

Exam

Final Exam.

--

 

Loyola

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