SYLLABUS
AMBA 513: OPERATIONS AND TECHNOLOGY
MANAGEMENT
I.
COURSE MATERIALS
The essential learning materials for this course are contained in the Textbook;
and the Simulations, Notes, Articles and Cases contained in the “HBS Case
Package” plus additional materials to be provided by the Instructor.
The textbook and other reading assignments are suggested to help students
develop a set of useful ‘models’, tools, concepts and techniques that will enable
them to develop their Critical Thinking’ skills; in order to better analyze the
case studies and to develop creative and elegant and ‘Evidence-Based’
solutions to the problems illustrated. These materials will rarely be directly
discussed in class.
The Case Study Handbook by William Ellet is a ‘must read’ for
anyone without extensive experience in a case method course; as is
the use of The Case Analysis Coach, available in the HBS Case
Package. These are especially useful for anyone wishing to get a
‘head start’ and do some ‘prep’ work before the course begins.
Required Materials:
1.
2.
(SBJ) OPERATIONS MANAGEMENT (7th Edition) by Slack,
Brandon-Jones and Johnston (Prentice Hall/FT, 2013) ISBN: 978-0-27377620-8 (NOTE: If you have access to a 6th Edition it is close enough for
you to use, but the Chapter Assignments may be slightly different.) The
best deal on this book is likely to be via Amazon or similar website.
(WE) The Case Study Handbook: How to Read, Discuss and Write Persuasively
About Cases by William Ellet (HBS Press, 2007) ISBN: 978-1-4221-01) VERY
2
IMPORTANT!!!
3.
The Case Package (HBS); AMBA 513_SUMMER 2018- Operations Management;
will be available electronically from Harvard Business School. THE MATERIALS
ARE DIVIDED UP INTO 3 DIFFERENT COURSE PACKS – ALL LABELED
AMBA 513_SUMMER 2018. All students must purchase their own case package. Go
to:
http://cb.hbsp.harvard.edu/cbmp/access/79554112
(Cases and Readings #1)
http://cb.hbsp.harvard.edu/cbmp/access/79554429
(Cases and Readings #2)
http://cb.hbsp.harvard.edu/cbmp/access/79554594
Readings)
(Simulations and Core
➢ NOTE: In order to reduce the total cost of the materials for this course; I have
marked as ‘Optional’ the cases for some sessions where Teams are presenting
different cases. For these sessions, you may choose to buy only the case assigned to
your Team. This also means that your Team Presentation CANNOT ASSUME that
the rest of the class is familiar with the details of your Case; and you will need to
include more case ‘fact’ and background in your presentation, along with your
Analysis and recommendations for Action.
➢ STUDENTS WISHING TO BE FULLY PREPARED FOR CLASS SHOULD
READ AND ANALYZE THE OTHER TEAMS’ CASES AS WELL AS THEIR
OWN TEAM ASSIGNMENT
Also, many of the HBR Articles that are listed under READ: are marked ‘Optional’
because they are available on-line from the Galvin Library. Reading them is NOT
‘Optional’ – only choosing to purchase them is ‘optional’. Other Readings that are listed
as ‘Optional – For Greater Depth’ will also be marked ‘Optional’ in the Course Pack.
NOTE: The HBR Articles are also available FREE and On-Line from the Galvin Library.
Students can access the Harvard Business Review from 1922 to 2018 from anywhere. If they're off campus,
they'll be prompted to log in with their IIT account name and password, and if they're on campus they will just
get access automatically.
They can follow this link, or search for the Harvard Business Review on this page.
➢
➢ FINALLY – IT IS DIFFICULT TO PROPERLY READ AND ANALYZE A CASE
ON YOUR COMPUTER. I RECOMMEND THAT YOU PRINT OUT THE
CASES AFTER DOWNLOADING. You need to be able to move back and forth
between case text and exhibits. USE A HIGHLITER and read the case at least twice
3
before starting your analysis. Sometimes it is useful to read the case the second
time; backwards, starting with the exhibits
RECOMMENDED:
1. THE ENCYCLOPEDIA OF OPERATIONS MANAGEMENT by Arthur V. Hill
(Annual Editions, Clamshell Beach Press, www.ClamshellBeachPress.com) A useful
reference with definitions of common (and uncommon) terms, techniques and tools
used in Operations Management.
II. Introductory Note:
This course seeks to help the student develop an understanding of the concepts and skills
needed for the design and control of operations in both services and manufacturing
organizations. We take a Strategic and ‘General Management’ approach to the design of
an “Operating System”; and it’s supporting organizational structure and ‘infrastructure’ of
Information Systems, Human Resource Management, Rewards, Technology and Financial
Policies.
Our focus is on the strategic role of operations and technology decisions as a ‘Source of
Competitive Advantage’ for the firm; with an emphasis on the integration of R&D/
Design/HRM, Engineering, Operations and Marketing; within the context of the Business
Unit’s strategy; and the organizational structure and skills needed to ‘execute’ and manage the
‘Operating System’.
Our overall ‘goal’ is to create and achieve and maintain ‘Operational and Organizational
Effectiveness’.
The course will emphasize the analytical tools and techniques that are useful in making decisions
about: production facilities and capacity, choices of technology and equipment, task and process
design, organizational architecture, human resources management; and the physical and
managerial control of operations. Concepts and techniques from all of the other MBA core
courses will be drawn upon; especially Cost Accounting, Financial Analysis, Economics,
Organizational Behavior and Design, Statistics and Marketing. MBA 513 assumes that most
students have taken and/or are familiar with the basic substance and techniques of the other
required courses in the MBA ‘Core’; or are taking these courses concurrently.
Students will gain an understanding of the economics of operations including; trade-offs
among fixed and variable costs, marginal/incremental analysis to identify relevant vs. sunk
costs, optimization, asset utilization and productivity measurements for both capital and labor.
Case studies will provide opportunities for students to develop their skills in process design and
choice, process mapping, critical thinking, identification of “problems” vs. “symptoms”,
4
process improvement, and capacity measurement in the context of the business strategy; while
the simulations will provide an opportunity to practice the management of particular operating
systems. Students will also gain an understanding of how human behavior and
organizational design, along with quantitative ‘optimization’; forms the theoretical
underpinning of Operations Management. Most importantly, Students will learn how to
analyze and manage TIME.
PROCESS SEQUENCE, TASK DESIGN and TIME ‘STANDARDS’ are the most basic
variables in Operations Management. What tasks are required to produce the desired
product or service and in what sequence must they be accomplished. How long will, or
should, it take to complete a task or process? When should it begin? When will it be
finished? Or, more importantly: when does the task or job need to be finished and then
how long will it take and, therefore, when does it need to be started. Time may be
measured in seconds or minutes or days and months and will need also to relate to the
realities of the task and technology (Think about washing a car vs. building an aircraft vs.
exploring outer space.). ‘Task Time’ may be set by human activity, or a ‘Recipe’ or the
technology of a machine or process. It may also be changed by the amount of work or
capacity available for any particular task.
Operations Management requires students to consider the relationships between; vendors
and customers; people and technology; costs and profits: the relationship between flows of
materials and flows of information; and the relationship between physical work and knowledge
work. Process design includes: task sequences; task design, which often controls task time;
choice of technology, facilities and equipment, capacity, location and layout; planning,
coordination, and control of the flows of materials; labor skills and information; and the design
of Human Resource Management policies and systems. The goal is to create internal
consistency and “fit” among these ‘operating systems’ variables; a “fit” between the operating
system, product design, engineering, marketing and finance functions and decisions and policies;
a ‘fit’ between business strategy, structure/infrastructure and operations/tactics; and a ‘fit’
(alignment) over time, with the changing demands of the marketplace and the needs of
Employees and Investors. This is the meaning of the ‘General Management’ approach to
Operations.
The purpose of this design/fit activity is to create sustainable competitive advantage in order
to maximize the profitability of the Strategic Business Unit (SBU). Sometimes this can be
accomplished by minimizing the costs of operations. Other times, profit maximization will
require the integration of product design, operations, and marketing decisions; and making
Business trade-offs that might increase operations costs in order to support higher prices and
higher margins. (e.g.: through greater product variety or faster response to new product designs).
The key analytical “tools” are Process Planning and “mapping”, time and cost analysis, systems
thinking, common sense, and the search for “fit” or “mismatch” between/among the elements of the
operating system; and also recognition of the fit/mismatch between/among operations, other business
functions, and the strategy and competitive environment of the Strategic Business Unit (SBU).
5
Our goal is to create and manage effective operations that support strategy and become a major
driver for profitability of the Strategic Business Unit/Firm. This requires a strong “fit” (alignment)
between operations and other business functions and the integration of business functions with business
strategy. It also requires internal consistency within functions, and an organization/management
structure that is capable of learning and change (flexibility) in order to be able to adapt to (and
sometimes lead) the inevitable evolution of the industry (caused by changes in market structure,
customer demands, product life cycle, and technology).
6
In order to support strategy and profitability at the lowest possible cost consistent with the demands of
the marketplace; we need to design an operating system that has a good “fit” between its inputs,
activities, and outputs: and that has internal consistency among its various elements. This will
eliminate excess transaction costs, unneeded work, confusion, and lost time. In other words, a
“strategic” approach to the design and management of operations in the creation of a competitive
advantage; both supporting and driving the strategy of the business unit.
Operations Management is about ‘getting things done’ – the execution of plans and strategies and
ideas. It is a central skill for all managers, in every function: in ‘goods’ and service businesses; as
well as non-profit, volunteer and military organizations. How we get a car or an airplane or a toaster or a
drug “built” is the same challenge as ‘making’ a movie, preparing a clean hotel room, staffing up a sales
force, designing a product, making a bank loan, writing computer software, planning and ‘producing’ a
wedding or other ‘event’, or giving people haircuts. The ability to: do accurate and precise process
mapping and design; set accurate time standards; forecast demands and technology changes; make
capacity decisions to balance supply and demand; design coordination mechanisms; develop a “sociotechnical system” and a “systematic” approach to organizing people, knowledge and technology to
accomplish a task (once or many times); perform economic analysis and trade-offs; and design HRM and
other managerial tasks: are a set of personal skills and tools that are fundamental to job success in
marketing, engineering, finance and general management as well as in operations; and in small
businesses/entrepreneurial start-ups as well as in larger organizations.
These skills will also be useful in your personal life as you plan a party or a trip, layout a kitchen,
organize the kids to clean the house, design your office or home, plan a school function, prepare meals
efficiently, make investment decisions, and organize/manage your own time and work activities. These
skills are fundamental to the success of all business, finance, governmental, health care and
military activities and they will support your career and personal success wherever you may go
and whatever you choose to do in life.
Whether this is your first class as you enter the operations management specialization; or your last
and only course in operations management; this course is designed to provide you with a few specific
useful techniques, a wide range of concepts, and breadth of view. There will be many more questions
than answers.
Most importantly, you should leave this course with the ability to ask the right questions; as well
as to answer them; and to solve the correct ‘Problems’ as well as identify them and then to take
action to get results.
The Strategic Approach to Operations Begins by Asking:
1.
What business are we/they in? (Who is the customer? What problem do we solve for
them? Why should they come to us for that solution?) What does this business (SBU) unit have
to do well (better than anyone else) for success? What is our source of ‘COMPETITIVE
ADVANTAGE’? Is it ‘Sustainable’? What does the Business need to do to sustain its
Competitive Advantage over time?
7
2. What are the observable symptoms of success or failure and what are the underlying problems
or causes of these symptoms/results? (Search for causality, NOT correlation!!) Seek
to solve ‘Problems’, not ‘Symptoms’. Make sure you are solving the
correct ‘Problem’!
3. What does operations have to be “good” (or at least better than anyone else) at doing; for success
in this business? How can we use operations and technology to create and sustain competitive
advantage? How does Operations align itself with Marketing and Design/Engineering and
Human Resources Management and Finance; within the context of the Strategy of the
Business Unit?
4. How do we make that happen? What is the “Operating System” or “Value Chain” or
“Network of Activities” that implements strategy and creates and sustains competitive
advantage? What actions should management take? What Organization Structure is required to
support the Operating System(s)?
5. How is the business environment changing and what will operations have to do to sustain the
business’s effectiveness and efficiency (profitability)? What actions are required?
6. How do we know that these actions will solve the fundamental causes/ problems we have
Always justify your
action recommendations with analysis and supporting evidence!
identified and change the observed outcomes to ones we prefer?
These are the essential questions to ask at the start of the analysis of each case
study. If your analysis and solution/recommendations answer these questionsyou have probably done a through job on the case study (or a real life
situation).
This is an introductory course and requires no advanced quantitative or computer
preparation beyond the core courses. Cost accounting and marketing are particularly useful
prior courses and computer “literacy” is assumed. The course is intended for students in all areas
of management and is not especially designed for operations or manufacturing management
majors. Rather, the course assumes that for most students in the room MBA 513 is the ‘last and
only’ course in OM and is designed to provide the a broad overview and the most essential skills
of OM, in a General Management/Strategic Competitiiveness context that will help all managers
gain an understanding and appreciation of the strategic and structural issues and opportunities
presented by operations and manufacturing decisions; in their own firms as well as in customer
and supplier organizations, and in potential investment and/or employment opportunities.
8
In summary, MBA 513 has eight major learning objectives:
a.
To learn to differentiate between; symptoms (observations) that can usually be
measured but usually not ‘fixed’ and the problems/underlying causes that create the
observed symptoms that can be ‘fixed’, but usually can’t be measured. To find the
most fundamental Cause and effect’ relationships. To understand the difference
between “correlation” and “causality.” To learn to ask ‘Why’; sometimes many
times, until the most fundamental causes are identified. These will usually be
behavioral in nature, as opposed to the symptoms that can usually be expressed in
numbers.
b.
Understanding the choice and design of operating systems and the relationships
between systems design, technology and process choice, operating procedures and
productivity. Linking process design choices to market demand and business strategy.
c.
Learning to MAP, analyze, execute, and improve operations
d.
Developing a feeling for the problems involved in the ongoing management of
operating systems, i.e.; mapping the process and “Making It Work”.
e.
Gaining an appreciation of the relationship between operations/production of both ‘goods’ and
‘services’ products, factory vs. services operations, other functional areas, and Business Unit
Strategy (SBU). Understanding the impact of new technology, especially computers; on
traditional manufacturing systems and generalizing the lessons learned in factory settings to
other operating systems such as offices, hotels, banks, etc... Understanding how operations
and technology can be a source of “competitive advantage”.
f.
To begin to think like an operations management executive.
g.
To improve critical thinking, judgment, and communication skills.
h.
To further develop your personal skills in time/work management, teamwork and
leadership.
III. LEARNING, GRADING, AND WORKLOAD
This is a ‘Student Centered Learning’ Course. We use cases and simulations to develop
your Critical Thinking Skills. This places responsibility upon each student to be present and
9
prepared at each class and Team Meeting and to participate actively in class and Team
discussion and work. The textbook and readings are offered to help your thinking about the case
analysis and, in some cases, to offer specific techniques that may prove useful. Team case
presentations should not assume that everyone in the class has also read and analyzed their case
and must be prepared for challenges to their analysis and recommendations. (This is as close to a
‘Real World’ situation as I can create in the Classroom.) The quality of Class discussion
following a team case presentation will affect the Presenting Team’s grade. (So-do unto
others....., etc.)
This is a GRADUATE course. The major responsibility for learning belongs to the student.
Substantial outside effort is expected. Most students will be able to master this subject
with a commitment of around 3 to 4 hours of homework per hour of class time/credit hour
per week. Don’t wait for the night before class to begin your preparation!!! A 3 hour class
is actually 3 one-hour classes offered in a more convenient schedule. The ‘time standard’
for MBA 513 is 15 hours per 3 hr. class session! (In the 6 week summer ‘TURBO’ Schedule
you should plan on doubling your time commitment.)
Learning in this course is continuous and cumulative - each session (both in class and with
your team) is important. BE THERE! There will be no formal examinations (and no
chance to cram and recoup at the end of the term). Grades will be based 1/3
upon team written and oral assignments and 1/3 upon individual
written assignments, and 1/3 upon your contributions to class
discussion and problem solving.
ALSO: This is a ‘Cold Call’ class.
You must be prepared to be called upon to either
open the class discussion on a case or reading assignment; or to contribute to the ongoing
discussion ant any/all times.
IT IS GENERALLY NOT POSSIBLE TO ACHIEVE THE HIGHEST
POSSIBLE GRADE IN THE COURSE WITHOUT DEMONSTRATING
YOUR MASTERY OF THE CONCEPTS AND TOOLS OF THE COURSE
THROUGH ACTIVE AND CONTINUING AND HELPFUL
PARTICIPATION IN CLASSROOM DISCUSSIONS OF CASES AND
TEAM ACTIVITIES.
INSTRUCTIONS for WRITTEN HAND-INS:
➢ Late papers will generally not be accepted. Written assignments are due at
the beginning of the session during which the case/simulation is scheduled for
discussion.
➢ No absentee or late or email submissions allowed (except under very unusual and
prearranged circumstances).
10
➢ All written assignments should be printed out with page numbers, stapled; use at
least 12 point font, and be double spaced. Exhibits and figures should, to the extent
possible, be integrated into the text; and all exhibit/figures must be numbered and titled
and referred to in the text of the assignment. Sources of information and data should be
clearly indicated. You written works represent YOU. It should always be ‘Professional’
with proper vocabulary and grammar and spelling; well organized and offer easy to
follow logic and reasoning. Use paragraphs and bullets and ‘Side Heads’ and color to
help your reader understand your points, and to follow your logic and analysis easily.
➢ Never ask your ‘Reader’ to do your work for you! Make it easy for your reader to agree
with you!
➢ In other words – treat this course as a ‘Job’ and the homework assignments as
professional work tasks with appropriate expectations for quality.
➢ SPECIAL NOTE: I DO NOT USE BLACKBOARD OR FACEBOOK OR
LINKEDIN OR TWITTER OR TEXT MESSAGING. PLEASE CONTACT ME
ONLY BY EMAIL AND TELEPHONE, or IN PERSON. Also – Please do not
TEXT – Email or voice ONLY.
FINAL COMMENTS:
Class discussions are a group problem solving exercise - not a contest and not an occasion for
each individual to impress the instructor at the expense of others in the class.. High marks will
be given for participation that aids the flow of analysis and contributes to the overall work of the
class. If someone else makes your point - move along to the next logical step – don’t announce
that you had the idea also. Class contribution is one of quality rather than quantity and becomes
obvious to all as a pattern of participation during the term. We seek to develop a combination
of Critical Thinking and Creativity in analysis and action for the Business and Operations
problems presented now, in the case studies; and in the future, for the problems and
challenges you will encounter as Professional Managers and Entrepreneurs.
SPECIAL NEEDS AND PLAGIARISM:
“Reasonable accommodations will be made for students with documented disabilities. In
order to receive accommodations, students must obtain a letter of accommodation from the
Center for Disability Resources and make an appointment to speak with me as soon as
possible. My office hours AND CONTACT NUMBERS are indicated at the beginning of the
syllabus.
The Center for Disability Resources is located in the Life Sciences Building, room 218, 312567-5744 or disabilities@iit.edu.”
The current Stuart School RULES ON ACADEMIC INTEGRITY AND PLAGIARISM (SEE
APPENDIX A) and the ‘universal’ restrictions on cheating and stealing apply to this course.
However, because it is a ‘case/discussion’ course you are encouraged to collaborate and
discuss the cases/analyses with each other (but not non-class members) before class. The more you
11
do prior to class, the more we will be able to do in class. Individual written assignments must be
done without help, but you may – and should- discuss the cases before beginning to write. But
your paper must represent your own individual ‘best efforts’ to develop an analysis and
solutions/recommendations. Don’t assume that anyone else in the class knows any more than you
do. The same ‘rules’ apply to Team papers/presentations – they need to represent the best efforts
of the team.
Finally, grades are subjective and represent results, not level of effort. However, it is highly unusual
for a student to earn a superior grade without a high level of effort. Keep in mind, however; there is no
‘curve’ in this course – so any efforts you expend to help others in the class better understand the
material will not affect your grade in any negative manner.
In general, a rising tide
lifts all boats – a hard working class as a whole will generally
result in a higher grade for everyone.
IV. HINTS ON OPERATIONS MANAGEMENT CASE
ANALYSIS:
a. READ THE CASE – AT LEAST TWICE – ONCE BACKWARDS. LOOK
FOR IMPORTANT NUMBERS. IDENTIFY THE ‘PROBLEM(S)’ THAT
NEEDS TO BE SOLVED. See what the ‘Exhibits’ tell you. Look for the
cause/problem – effect/symptom relationships.
b. MAP (draw) THE PROCESS (ES) – IN DETAIL.
Identify the sequence of
tasks that need to be performed to produce the product (goods or services or
both) and map out which must be done in series and which may be done in
parallel. Remember there may be more than one ‘process’ going on; either
in series or parallel. For each process; identify in detail each task
(design/equipment/people/knowledge, time standard and capacity) and
identify the ‘bottleneck’ in any multi-stage process sequence.
c.
Work the numbers!! Analyze each process for Cycle Time and Lead time
and don’t confuse the two. Consider capacity, scheduling and
productivity/asset utilization for each task and for the process as a whole.
d. Step back – look at the product/service the process is designed to produce
and ask if there is a good ‘fit’. What ‘business’ is the organization in? Who
is the Customer? What Problem does the ‘process’ solve for that
customer/market segment? Why do they come to us (we are either ‘better’ or
lower cost/cheaper priced) and how does the process support that
‘sustainable competitive advantage’?
e.
Identify the ‘4 V’s’ – See the Slack book. How many products/services is the
process trying to produce and do they conflict? Is the process trying to
support more than one ‘business’ and do they conflict with or support each
12
other?
f.
Work the Economics and Financial numbers. Is this process profitable?
Will recommended changes improve profitability? How? Why?
g. Think again about the fundamental problems that need to be fixed. Will
fixing those help the customer and/or make the SBU more profitable?
h. Create solutions to the problems identified – be creative. Then go back and
redo d – g. More than once if necessary.
i.
‘Step back’ again and look for ‘fit’ between your process changes, other
functions, and the organization structure and strategy of the SBU.
j.
FINALLY, review for logic, proper use of ‘evidence’, ‘fit’, flow of ideas,
persuasiveness of your ‘argument’, proper
grammar/vocabulary/organization of ideas.
k. MOST IMPORTANTLY, READ/STUDY THE ELLET BOOK and do the
CASE ANALYSIS COACH Simulation Exercise.
V. SCHEDULE AND ASSIGNMENTS
WEEK ONE – Saturday, July 7, 2018
Morning Session (9 am – Noon)
Topic A: INTRODUCTION TO OPERATIONS & TECHNOLOGY MANAGEMENT
Fundamentals of Process Analysis and Design: Tasks – Sequences – Flows and
The ‘4V’ Model of Operations
LECTURE: Concepts and Skills of Operations Management and Managers.
VIDEO TAPES: Advances in Operations Management and Michael Porter on Competitive
Strategy (Time Permitting)
NOTE:
1.Organize 3 case analysis/presentation and Simulation Teams (I - III).
2. Fill out and hand in the student information sheet at end of Syllabus.
READ:
• SBJ; Chs. 1 (Read 2 times; p. 23-29) and 2 and 3 and 16 (2X p.506-511)
• WE; Introduction and Chs. 1, 2, 3, [VERY IMPORTANT]
• “What is Strategy” by Michael Porter (HBR, Nov-Dec, 1996) [VERY IMPORTANT]
• “The Five Competitive Forces That Shape Strategy” by Michael Porter (HBR Jan 2008)
13
• CORE READING: OPERATIONS STRATEGY
• Process Fundamentals
• Core Reading: Process Analysis
VIEW: http//www.youtube.com/embed/8_lfxPl5ObM?rel=0
DO: Case Analysis Coach Exercise
CASE PREPARATION FOR CLASS DISCUSSION:
Anderson Associates (To be distributed by email)
Can Anderson meet the customer’s needs? How? Can he make a profit?
What is the production process/sequence? Cost? MAP THE PROCESS!!
What is the MOST IMPORTANT Question Mr. Anderson must answer?
What should Mr. Anderson do? [HINT: What is the difference between a
‘list’ of ‘tasks’ and a ‘process’ or a ‘plan’? What is the ‘problem’ that Mr. Anderson has to
‘solve’?]
Topic B: Process Planning: Mapping and Analysis
•
•
•
•
Batch vs. continuous flow vs. Hybrid Processes
Batch size and set up time/cost – the “EOQ”
Cycle-time, Mfg lead-time and effective capacity/asset utilization/productivity
Identify the Bottleneck location/task
READ:
• ‘An Informal Note on Knowledge Management’ by Roger Bohn (Very Important
Paper! You will find his ‘Model’ useful in most cases in the course)
• SCJ; Chs. 4 (very important) and 5 (Especially useful for ID Students).
• Note on Work Simplification (a key skill in all situations)
• How to Get a Competitive Edge
• CORE READING: MANAGING INVENTORY
NOTE: Most ‘Readings’ are either in the Text or the HBS Course Pack or will be sent to
you via email. Cases and Articles in the HBS Course Pack are NOT in Course Session
order – you may have to hunt around for the ones you need for each class. All HBR
articles are available on-line from the Galvin Library. NOTE: The HBR Articles are also
available FREE and On-Line from the Galvin Library. Students can access the Harvard Business
Review from 1922 to 2018 from anywhere. If they're off campus, they'll be prompted to log in with their IIT
account name and password, and if they're on campus they will just get access automatically.
They can follow this link, or search for the Harvard Business Review on this page.
SIMULATIONS:
14
A.
Do the OPERATIONS MANAGEMENT SIMULATION: PROCESS ANALYTICS (in
the HBS Online ‘package’). You may work on this individually or in ‘ad hoc’ small
groups; or as a Team. This is an especially useful assignment if you feel uncertain about
your understanding of basic concepts such as process planning/mapping, cycle time,
bottlenecks, capacity at the task vs. system level, lead time, impact of batch size, etc.
Individual Hand In#1A: Summarize, and justify/illustrate the important ‘Lessons
Learned’ (Ideas and concepts worth remembering) from the Process Analytics
Simulation. LIMIT: 2 pages plus Exhibits (maximum).
B.
Project Management Simulation: Scope, Resources, Schedule V2
ASSIGNMENT: Work as Individuals to do the ‘Project Management’ Simulation.
Individual Written Hand-In #1B: Lessons Learned from the Project Management Simulation.
Limit: 2 Pages+ Exhibits (maximum).
CASE PREPARATION FOR CLASS DISCUSSION:
Kristin’s Cookie Company (A)
Is this a ‘good’ business idea? Why? How many cookies can she make (Capacity)? How much
money can she make (Profitability)? Analyze the production process and suggest and justify (in
financial terms) appropriate changes. What are the marketing issues in this case? Map the
process. Where is the ‘bottleneck’? Should she buy a 2nd oven? Why?
Calculate: Cycle Time, Mfg. Lead Time and Capacity for the one oven and 2nd
oven options. How might the process change with a second oven? Should there
be a reallocation of tasks between Kristin and her roommate? Why? Map the
changes in the process. What would be the ‘ideal’ physical ‘layout’ of K’s
kitchen? How might the physical layout affect the implementation of the process?
What is the difference between ‘process plan’ and ‘layout and how are they
related? AGAIN: WHAT ‘PROBLEM(S)’ DOES SHE NEED TO ‘SOLVE’
AND WHAT DECISIONS WILL SHE NEED TO MAKE? What should
Kristin do? How much profit can she make in an Academic Year? Should
she work the summer term?
Afternoon Session (2 -5pm), 7/7/2018
Topic A: Process Analysis and Improvement
15
•
Impacts of Variety, Customization, Automation and Digital Technology on Task
Design and Process Flows
READ:
• Note on Graphical Method of Linear Programming (Most important for Sherman
Motor Car Case Team)
• “How You Should Organize Manufacturing” by Hayes and Schmener, (HBR. JanFeb, 1978
• Core Reading: Designing, Managing and Improving Operations
• Note on The Economic Order Quantity
OPTIONAL FOR GREATER DEPTH:
• Capacity Analysis Sample Problems
In – Class Case Preparation and Team Assignments/Presentations
•
STONEHAVEN, INC. – TEAM I
Analyze the operating system, suggest improvements and design (re-engineer?) a new/improved
operation. Justify your changes by showing and quantifying the improvements in efficiency and
effectiveness that your system will deliver. Why are these changes important? What are the
strategic implications? How do they relate to marketing tactics and the demands of the
customer/market? What business problem do you need to fix? What are the cycle times,
batch sizes and manufacturing lead times for the existing system and after your improvements?
Labor content? Efficiency? Productivity? Ability to support the strategy of the business?
Economics and costs? (HINT: Is Stonehaven a ‘job shop’ or a ‘production line’? Why? Is it a
‘continuous flow’ or a ‘batch’ process? Or, a ‘hybrid’ of both? Why? MAP THE PROCESS)
Oral Presentation: 20 Min MAX
B. SHERMAN MOTOR COMPANY – TEAM II
What recommendations would you make to the President of SMC? Work out the
economics of expanding production by outsourcing engines. Show the new production
levels/mix and present the pro-forma profit and loss statement for the new – ‘optimized’
production levels. How much can SMC afford to pay for additional engines? How would
you analyze the opportunity to invest in additional engine capacity? Additional body
capacity? Additional assembly capacity? How do you determine the ‘value’ of ‘releasing’
a ‘constraint’? (See the Note on Graphical Method of Linear Programming)
ORAL PRESETATION: Limit 20 Minutes
A. EXECUTIVE SHIRT COMPANY, INC. – TEAM III
Map the Process, analyze the ‘operating system’ and the physical ‘layout’; and make
suggestions for improvements. Should ESC go into the custom shirt business? Why?
How should they organize their custom business production and their regular product line
production? Why? Should they adopt Mike’s Plan or Ike’s plan or do you have a better
idea? Pay attention to cycle time, manufacturing lead time, batch size, capacity, labor
utilization, quality, flow & bottlenecks, costs, timeliness, inventory and profitability.
Map each process alternative. Develop a good presentation graphic to highlight the key
16
points you want to make. What is /could be the strategy of ESC. Inc.? (Hint: Is ESC a
‘job shop’ or a ‘production line’? Why? Is it a ‘batch’ or a ‘continuous’ flow process? Or
a hybrid? (Why?)
ORAL PRESETATION: Limit 20 Minutes
WEEK TWO: 7/14/2018
Morning Session (9 am – Noon)
Topic : PROCESS DESIGN: FACILITIES and TECHNOLOGY CHOICE
•
FLEXIBILITY and CAPACITY;
•
Make to Order vs. Make to Stock
READ:
•
SBJ; Chs. 6 (Focus on Capacity Planning –Skim the Supplement on forecasting.)
and 7 (Helpful for the McD and BK cases and most others in the course. Consider
the distinction between the ‘Process Design’/Task Sequence’ and the Physical
‘Layout’ of the tasks – The ‘work’ will always follow the ‘Process’; that is the
sequence of tasks required to produce the product or service, no matter where the
people and equipment for performing each task are physically located. to the Jones
•
WE; Chs. 4, 5, 6, and 7
•
Note on Throughput vs. Cycle Time (Don’t confuse ‘Cycle Time’ – How often a task
is performed per unit of time [Frequency]; which defines the capacity of the
task[And in a multi-task process – the slowest task will define the capacity of the
process as a whole]: with ‘Throughput Time’ which defines how long it takes to
complete a specific unit of product/service; which determines the schedule for
completion/delivery. When and How might these two ‘Metrics’ be related?
•
Supplemental notes on McD
•
‘Operations-Based Strategy’ by Robert H. Hayes and David M. Upton (CMR Vol.
40, No. 4, Summer 1998)
•
Note on Service Mapping
•
‘Service Blueprinting’ by Mary Jo Bittner
•
CASE PREPARATION and FIELD TRIP ASSIGNMENTS #2
PART A: Analyze the
McDonald CORP. and BURGER KING CORP. CASES –
Map the process sequence and the physical ‘Layout’, identify the ‘Bottleneck’ and analyze the
design, operational, and cost, differences between the McDonald and Burger King Outlets in
Hillybourne; as described in the cases. How do these differences relate to each company’s
method of competing in the marketplace? How well positioned are the operating systems for
changes in product design or market demand? What implications do the different operating
systems and technologies have for the management of these operations and their future
17
strategies? Pay specific attention to the “man-machine” interfaces, the production rates, the
Human Resource Policies and capacity vs. demand. What is the role/location of Inventory at
each? How does the inventory location affect the producer – customer relationship? What
is the difference between a ‘Make to Stock’ and a ‘Make to Order’ system? How does this
choice affect the customer? What impact does it have on profitability?
Calculate the costs and profits as a function of variation in demand level over the course
(by the hour) of a typical day. What happens? Why? What are the implications for the
business strategy? (Hint: Map the processes at each. Work the numbers-capacity, WIP, cycle
time, cost and profits). How do costs and profits vary at each with the hourly variation in
demand? Discuss the implications of grill vs. broiler technology and ‘make-to-stock’ Vs ‘maketo-order’ operations strategy decisions. How does the location of inventories affect the
productivity and flexibility of each process?
PART B: THE McDonald’s FIELD TRIP:
In 2001, and again a few years later, McD’s made major changes in their operations process and
layout. Recently, they announced another set of changes in both process and Menu and in
their ‘Business Model’. Use the McD Supplemental ‘Handouts’ plus search the Internet for upto-date information to understand and analyze the series of ‘NEW” process designs. Visit one or
more McD’s and identify and analyze the process in use.
Interview the manager if you can and observe the operation. Map the process and the ‘layout’.
Take photos or a video if allowed, or make a sketch.
How does it differ from the “old” system described in the case? (Batch vs. Continuous Flow; Job
Shop vs. Production Line; Make-to-Order vs. Make-to-Stock; Fixed vs. Variable Costs, Human
resource Management; Technology & Process Design; Etc.?) Is it better? How? Why?
Diagram (map) the process and the layout. Use Google to find more recent articles/videos
about the changes at McDonalds since 2001. How have these more recent process and
product innovations changed the 4 V’s and the capability for service speed, customization,
new product introduction and profitability? Evaluate the economics of the system? What are
the competitive advantages of the new system vs. the old system? Was the change a good idea?
Why? What happens next? Why has McD’s undergone so many process and product and
‘Business Model’ changes since 1980 and 2,000?
PART C:
FIELD TRIP TO A DIFFERENT RESTAURANT:
Choose a rival to McD’s or an entirely different kind of Restaurant and do the same analysis as
above for the McD visit. Each Team must choose a different venue to visit.
TEAM CLASS PRESENTATIONS: (NOTE: No Written Paper
Required.)
Note: Please feel free to use the Internet to find information about more recent events and
Executive Actions at McD and use this information in your presentation.
Discuss the results of your analysis of the ‘old’ McD and BK Cases; then describe,
analyze and discuss the ‘Operating System’ at the ‘NEW’ McDonalds and at the ‘Other’
Restaurant. How is the current ‘Process System’ at McD’s different from the ‘Original’
system described in the cases written about the Hillybourne McD’s and BK in 1980? Is it
18
better than the ‘old’ system? HOW? WHY? (Process Map, Layout, Facilities, $ V’s, Flows
and Stocks of materials and People, Product Design, Role of the Customer, Cycle time and
Capacity, Lead time, etc.) (HINT: There is a lot of information on McD on the Internet.)
How is the ‘Other’ Restaurant you visited similar or different as compared to McD’s (and
if you wish, BK)? What did you learn from this ‘Other’ venue visit?
What does your comparison of the old and new systems and McD vs. its rivals or other
facilities teach us about Process Design and Operations Strategy; as they relate to Business
Success and the concept of ‘Sustained Competitive Advantage’? (Pay particular attention
to the location and role of ‘Inventory’.)
How might McDonalds further improve its current (2016) ‘operating system’? What
impacts would you expect your suggested improvements to have on McD’s
PROFITABILITY? Based on your analyses of the Old vs. New McD and what you
learned from the BK case and your visit to the ‘Other’ restaurant: Make one or more
recommendations for change/action to the CEO of McDonalds. Justify your
recommendation with analyses and evidence and suggest how this change will improve
McD’s ‘Competitive Advantage’ and profitability.
LIMIT: 30 Minutes (Maximum). Practice and Edit your Presentation
HAND-IN: a COPY OF YOUR PPT SLIDES.
OPTIONAL INDIVIDUAL EXTRA CREDIT PAPER #1: What did you, personally, learn
from this assignment, including the case analyses, the field trips and your experiences
working in your Team? (Limit: 3 Pages – double spaced- plus Exhibits)
Afternoon Session (2 – 5 pm) 7/14/2018
Topic A: PROCESS IMPROVEMENT
• JOB and TASK DESIGN
• TIME STANDARDS
• PRODUCTIVITY IMPROVEMENT,
• Vertical Integration and ‘Make or Buy’ Decisions
READ:
• SBJ; Ch 9 (+ Supplement) and 10 and 4-7 (review)
• BLURRING THE BOUNDARIES by Goldhar and Berg
• “Fix the Process, Not the Problem” by Sirkin and Stalk (HBR, July-Aug 1990)
• Comments on Standard Times and Division of Labor [Very Important]
• WE, Ch. 8
• ‘Lessons in the Service Sector’ by James L. Heskett (HBR March 1987)
• Coordination – An Overview
CASE PREPARATION and TEAM Class ASSIGNMENTS
A. Team I: AMERICAN CONNECTOR CORP
How should ACC respond to the potential entry of DJC into the U.S. market? Simulate DJC’s
19
costs in the U.S. Analyze ACC’s and DJC’s cost structure and performance. WORK THE
NUMBERS! What should ACC’s future Strategy and Operations be?(HINT: Consider costs
due to “strategy” vs. costs due to “operations”).
TEAM PRESENTATION AND HAND-IN: Your Analysis and Action
recommendations. How should ACC respond to the JCC ‘Threat’ and how
urgently should they do it? Why?
Oral Limit: 20 minutes – 8 slides (max)
B. Team II: FABRITEK CORPORATION- 1992
Analyze the production process (es) at Fabritek. (Carefully analyze exhibit 2).
Why is Arthur Moreno unhappy? Why is the Pilgrim order in trouble? What is the
cause of the “sudden” increase in poor quality work? What can/should be done to get
the order out? To make Moreno “happy”? Are there any ethical issues involved? What
are they and why?
a. What should Frank Deere do?
b. What should Stewart Baker do?
c. What are the underlying causes of “symptom” we see at Fabritek?
d. Is this a ‘problem’ that should be brought to the attention of the General Manager
of Fabritek? Why?
TEAM PRESENTATION AND HAND-IN: Your Analysis and
recommendations to Frank Deere and Stewart Baker for improving
productivity.
Oral Limit: 20 minutes – 8 slides (max)
C. Team III: Bergerac Systems: The Challenge of Backward
Integration
What are the Business and Operational Challenges facing Bergerac? Should they integrate
backwards into the manufacture of injection-molded parts? If so, how? Analyze the economics
of ‘make or buy’ and ‘in-house’ capability development vs. acquisition. What other advice
would you offer Ian Wycoff about his manufacturing operations? About his Business?
TEAM PRESENTATION AND HAND-IN: See above questions.
Oral Limit: 20 minutes – 8 slides) max)
Topic B: (Time Permitting)
LECTURE AND DISCUSSION:
• The STS Model and Worksheet
• Introduction to SocialTechnicalSystems Analysis
CASE: Dashman Company (To be sent by email)
Explain the behaviors observed at Dashman Company. What are they doing?
Why (Root Causes) are the people behaving as they are? (Use the STS Model and concepts
in the Goldhar/Finan Note. See under ‘READ’ for Week Three below))
20
WEEK THREE: 7/21/2018
Morning Session (9 am – Noon)
Topic A: HUMAN BEHAVIOR, ORGANIZATION DESIGN and
CORPORATE CULTURE in OPERATIONS MANAGEMENT
READ:
• Notes on Organization Theory and Design for Operations Management (Goldhar
and Finan) and/or Revised STS Note by Lauritsen
• George Homans, ‘Exchange Theory’ article (to be emailed)
• Note on Organization Structure (HBS)
• What is an Organization’s Culture? (HBS Note)
• ‘Organigraphs: Drawing How Companies Really Work’ by Henry Mintzberg and Ludo
Van der Heyden (HBR Sept. 1999)
• Note on Power, Dependence and Effective Management
• The Economics of Organizational Architecture [VERY IMPORTANT]
•
TAPES: The nature of Work
CASE PREPARATION FOR CLASS DISCUSSION
A. THE SLADE PLATING DEPARTMENT
If you were Ralph Porter; would you ‘blow the lid off’ the ‘punch out system’? Why or Why
Not?
Use the STS model and worksheet to ‘map’ and analyze the behavior of the individuals and
small groups of workers in the Plating Room. What is happening? Why do they behave as
they do? What are the ‘observed’ types and ‘patterns’ of behaviors? What are the underlying
‘causes’ of these behaviors? What are the formal and informal ‘rules’ (‘norms’) that the
individuals and small groups follow? Why do some individuals ‘join’ groups while others don’t?
What do they get out of group membership? What do they give?
What is the impact of the production process, technology and layout on the behaviors of
individuals and groups?
What are the ‘6R’s (Rules/Roles/Relationships/Responsibilities/Resources/Rewards ) at
Slade? Are there ‘formal’ vs. ‘informal’ ‘R’s’ at Slade? How do they differ? What is the
‘culture’ of the Slade Company as a whole? Of the Plating Room? Of the Sarto Group? Are
they different? If so, WHY? What are the ‘personalities’ of the individuals? How do personality
and culture interact?
Is the behavior pattern of the ‘Sarto Group’ good or bad for the firm? Why? What are the
‘results’ of their behaviors? What is their impact on the profitability of the Slade Company? How
21
does the ‘Sarto Group’ impact the behavior of other individuals and groups? (How) should
Ralph Porter try to change it? What might be the results of such an effort? Be predictive!!
Recommend a course of action to R.P.
Finally, consider the ethical issues. What are they? Would you want to work in the Sarto
Group? The Slade Company? As a Manager? As an Owner? Why/Not? Have you had any
personal experiences similar to the organization and behavior of the Slade Plating Room?
What, if any, changes would you make in the organization structure and/or the operating system
of the Slade Plating Department? The Slade Company?
B. Understanding Communications in One-on-One Relationships
Be prepared to ‘Role-Play’ in Class!
TopicB: ‘FRONT LINE’ MANAGEMENT CHALLENGES (The Interface of
Operations, Organization Structure and Leadership)
READ:
• What it Really Means to Manage: Exercising Power and Influence
• ‘Managing Your Boss’ by Gabarro and Kotter (HBR Jan. 2005)
• Note on Organizational Effectiveness
• Building Effectiveness in One-on-One Relationships
• ‘Six Basics for General Managers’ by Andrall Pearson (HBR July-Aug. 1989) [VERY
IMPORTANT]
CASE PREPARATION FOR CLASS DISCUSSION
C. NUCLEAR TUBE ASSEMBLY ROOM (A)
And PROCESS ENGINEERING PROPOSAL
Is Ralph Langly a ‘good’ manager? Why? What does he actually do? Is the NTA room an
effective organization? What are the behaviors and structural variables that help produce such
high productivity and satisfaction? Why do the NTA Room workers behave as they do? What
are the ‘norms’ of the room? Why? What do they get out of it? What needs are being met?
How? What is the impact of the process design, layout and product design of the NTA room
workers’ behaviors? How different are the formal and informal organizational structures?
What accounts for the improvements in productivity? Is the improvement ‘sustainable’? What
needs to be done next? What about Harold Singer? What is his role? What are his motivations?
Why? Is his behavior ‘functional’ (positive) or ‘dysfunctional’ (negative)? Why? Any advice
for him?
Read and evaluate the PROCESS ENGINEERING PROPOSAL. What impact will it have on
22
the NTA workplace? Productivity? Satisfaction and Morale? Why? What should Neil
Goodrich do? Why? What should Ralph Langly do? Why? (HINT: reconsider the issue of
what are the rewards of working in the NTA room?) How will the Socio-Technical-System of
the NTA room change? Will this be positive or negative for the workers, for the firm, for Ralph
Langley? Is there a ‘conflict’ between the needs of the workers and the needs of the firm?’ If so,
can this conflict be solved? How?
INDIVIDUAL HAND IN#2:
Discuss the above questions on the NTA room and the Process
Engineering Proposal. Is the process change necessary for the firm? If
so, how should it be introduced and implemented? What should happen
to the current workers and to Ralph Langley? Can Ralph manage the
‘new’ system? What should be the roles of Ralph Langley, Herb Singer,
Neil Goodrich and the current NTA room workers if the change is
deemed needed? Finally; would things have been different in the NTA
room if ‘Ralph’ had been ‘Rachael’? In what ways? How might the
implementation of the PEP proceed differently? (Hint: do the STS
Worksheet and analyze the ‘5 R’s’ for before and after the PEP. How do
they change/differ?)
LIMIT: 3 PAGES + EXHIBITS
Afternoon Session (2 pm – 5 pm) 7/21/2018
Topic: OPERATIONAL EFFECTIVENESS AND ORGANIZATION
STRUCTURE
READ:
• ‘Flaw of Averages’ (VIP!)
• The Psychology of Waiting Lines
• Identity Issues in Teams
• A Note on Team Process
• WE; Ch. 8 (review) and Ch. 9
• ‘What is an Organization’s Culture? (HBS Note)
OPTIONAL FOR GREATER DEPTH:
• Framework for Analyzing Work Groups
CASE PREPARATION and TEAM ASSIGNMENTS #4:
23
A. TEAM I: THE ARMY CREW TEAM
What is the difference in this case between the ‘Team’ and the ‘Boat’? Are they ‘job shops’ or
‘production lines’? Why? How is it possible for a team or a boat to ‘less than the sum of its
parts’? Analyze the situation in terms of the S-T-S and ‘5 R’s’models. Explain what is
happening on the Varsity and the JV teams and in their competition with each other vs. other
schools? What can/should the Coach do?
How does being a Coach differ from being a Manager (and vice versa)? How is their behavior
and results affected by the culture of the United States Military Academy? How does the Army
Crew Team differ from the Slade Plating Room and the NTA Room? What are the similarities?
TEAM ASSIGNMENT: ORAL PRESENTATION - 30 Minutes maximum.
Written Team Paper: 5 Pages + Exhibits and Slides (max).
B. TEAM II:
MOUNT EVEREST – 1996
Why did this tragedy occur? What is the ‘root cause(s) of this disaster? Why did the participants
behave as they did? Are tragedies like this just inevitable on Mount Everest and similar
environments – or could some of the lessons of Operations and Supply Chain Management be
helpful (Be specific)? What is your evaluation of Scott Fischer and Rob Hall as leaders? Were
they ‘Managers’? Should they have been?
What are the lessons for Operations Managers? Can you compare Mount Everest in
1996 to a business situation? (Try to use both Operating systems concepts and S-T-S
theory to develop your analysis and recommendations.) What changes would you
make to the Operating System and the Organizational Structure to increase the
‘profitability’ of the ‘Climbing Mt. Everest Business’? Can it be scaled up?
TEAM ASSIGNMENT: ORAL PRESENTATION - 30 Minutes maximum.
Written Team Paper: 5 Pages + Exhibits and Slides (max).
C. TEAM III: ZIPCAR: INFLUENCING CUSTOMER BEHAVIOR
What ‘business’ is ZIPCAR in? What are the critical operational factors for success?
How can ZIPCAR organize it operating system to deliver the critical factors? What does it mean
for operational effectiveness when the customer is part of both the operating system and eh
socio-technical-system? How can/should ZIPCAR ‘manage’ the behavior of its customers?
What changes in operations strategy/process design and organization structure would you
recommend to ZIPCAR?
TEAM ASSIGNMENT: ORAL PRESENTATION - 30 Minutes maximum.
Written Team Paper: 5 Pages + Exhibits and Slides (max).
24
OPEN CLASS DISCUSSION: THE REDGROVE AXIAL WORKSHOP
Use the STS Framework AND THE ‘Maslow Hirearchy of Needs’ to analyze the situation at
Redgrove. What is going on? Why? What are the ‘Root Causes’ of the observed behaviors?
How ‘Big’ a ‘Problem’ is this? Why? Does it affect the ‘effectiveness’ of the Axial Workshop
Team? Does that matter? How does the Workshop ‘Operate’? What is its ‘Culture’? Would you
want to work in this organization? Why/Why not?
What might happen if the current behavior is ‘forbidden’ or ‘punished?’ What would YOU do if
you were Marc Fontaine? Why? Have ever personally experienced a similar situation? What
can we learn from our experience? What should Marc Fontaine do? Remember, He also has
personal goals and objectives! How well are the needs/goals/objectives the Firm, the Workers
and Fontaine ‘aligned? What is the impact of the alignment of the needs of all the ‘Players’ on
the effectiveness/profitability of the organization?
WEEK FOUR (7/28/2018)
Morning Session (9 am – Noon)
Topic A: Review of ‘Industrial Engineering Basics’ in Operations
Management (Process Design – Inventory – Productivity)
READ:
• SBJ Ch. 11 (Important for the next several classes/cases.)
OPTIONAL FOR GREATER DEPTH:
• CORE READING: Managing Queues
• ‘Fast Cycle Capability for Competitive Power’ (HBR)
• ‘Fix the Process, Not the Problem’ (HBR) (again!)
• ‘Just in time Production Controlled by Kanban’ (HBR)
Simulations and Exercises:
Do the: Operations Management Exercise – Inventory Basics
Be prepared to report on ‘Lessons Learned’ in Class.
CASE PREPARATION and TEAM ASSIGNMENTS
A. TEAM I:
OPHTHALMIC CONSULTANTS of BOSTON and
DR. BRADFORD J. SHINGLETON
What should OCB do? WHY? What does BJS do that works so well? How can he and OCB
get others to join in? Should all the MD’s emulate BJS? Why/Not? What is (should be) the
strategy of OCB? How does the operations system support/implement the strategy? (Work
25
the Numbers!) ORAL ONLY: 20 minutes max. Turn in Copy of Slides
B.
TEAM II: CHAIRCRAFT CORPORATION, 1988
What are the major problems in controlling frame parts manufacture? Why? What overall
changes in the production process and its control would you suggest? Why? What should Mr.
Johnson do next? Why? What business are they in? How do the market trends in the business
affect the design of the operating system? (Consider make-to-stock vs. make-to-order and
contrast to the McD/BK cases.) (Hint: Review the Notes on Production Inventories and on EOQ)
Pay particular attention to the location, amounts and role of Inventory in this process.
ORAL ONLY: 20 minutes max. Turn in Copy of Slides
C. TEAM III: CRP Products
What recommendations for changes should Bruce Ballantyne
make to Jamie Bailey? Why? ORAL ONLY: 20 minutes max. Turn in Copy of
Slides
D.
JONES MANUFACTURING COMPANY (Non HBS Case – Open Class
Discussion)
Design a production process and physical layout/organization of resources that will
allow JMC to meet the demand for Part No 5324-B2. (Is the new order a ‘strategy’
change for JMC?) Show/map the process and physical layout. What are the total costs
in your system? (Fixed vs. Variable) What is the impact of total volume/time horizon on
your operating System design and cost structure? Map the old and new processes. Are
they a job shop or a production line? Why? Is it a ‘batch’ process or ‘continuous flow’?
Why? Should Jones have accepted the order for Part No. 5324-B2? Why? Did they
have choice? (Hint: How does the volume/variety of the new order affect the choice of
process and layout? Why?)
Individual Written Assignment #3: Summarize your analysis.
Describe, and justify, your solution to the ‘problem’ at Jones. Limit:
3 – double spaced – pages + exhibits. (HINT: Back to ‘Basics’!)
Afternoon Session (2 – 5 pm) 7/28/2018
Topic B: PROCESS DESIGN: CAPACITY/DEMAND BALANCE BUSINESS STRATEGY – CREATING THE ‘FIT’
READ
• W/E; Chs. 11
• ‘Why Some Factories are More Productive Than Others’ (HBR)
• “Lessons from the Service Sector” by Heskett (HBR) [Very Important]
26
Simulations and Exercises:
a.
Do the Operations Management Exercise: Balancing Process
Capacity
b.
Do the Operations Management Exercise: Push vs. Pull
Production
c.
Do the Operations Management Exercise: System Utilization in
Service Management
Be prepared to discuss ‘Lessons Learned’ from all 3 ‘Exercises’ in Class.
CASE PREPARATION for CLASS DISCUSSION
A.
DONNER COMPANY - Analyze and “map” the Process: materials and
information flows, bottleneck, cycle and lead times, etc. and determine the underlying
‘problems’ (as compared to observed ‘symptoms’) facing Donner and suggest specific
actions to Mr. Plummer. (Hints: Pay special attention to the distributions of events,
orders, and materials, etc. as shown in the exhibits.) Is Donner a job shop or a
production line? (Or something else?) Is it a ‘Factory’ or a ‘Service’ operation? Why?
What is the impact of batch/order size on capacity/bottlenecks? What business is
Donner in? What do they have to do well for success in that business? Why? How
does this affect the design of the operating system? NOTE: Stay with technology
available at the time of the case.
B.
ENGINEERING INSPECTION and INSURANCE COMPANY- What are the most
critical underlying “problems” faced by EIIC at the time of the case? How serious are they?
What should Ernest Cole do? Why? In what sequence? Compare and contrast EIIC with
Donner Corp. Same questions apply. Is EIIC a job shop or a production line? Batch
or continuous flow? Factory or Service operation?
Hint: Analyze and Map the process. Calculate the cycle time/capacity, identify the bottleneck,
and calculate the lead-time. How should they measure productivity? Where is the bottleneck?
Is this a continuous or a batch flow shop? Are they organized as a “production line” or a “job”
shop/process? Why? What is their ‘capacity’: a. For underwriting Policies? B. For
performing Inspections?
INDIVIDUAL WRITTEN HAND-IN #4:
Prepare an ‘integrated’ analysis of the above two business situations? How are the two
similar/different? How do DONNER and EIIC compete in their respective markets? What
businesses are they in? Do they produce ‘goods’ or ‘services’? Are they ‘Factory’ or
‘Service ‘Operations??? Job Shops or Production Lines or? Who is their customer? What
problem do they solve for the customer? How well are they doing? What are the major trends in
their Industries?
Analyze and discuss the key managerial, organizational, operations, and strategic problems
and choices at each. How are they ‘organized’ to execute their operating system? What are the
most important short-term operations actions to take? What should EIIC and DONNER
27
management do over the long term to position their companies for further growth and success?
(Hint: For each case; Map the process. Analyze the layout/organization of resources. Calculate
cycle time & Lead time & capacity and productivity? Where are the bottlenecks? What are the
causes of the bottlenecks?)
WHAT ARE THE GENERALIZABLE LESSONS TO TAKE AWAY FROM THE
ANALYSIS OF THESE TWO CASES? (HINT: pull back a take a high level General
Management point of view after you have mastered the operational and organizational
details.) What do we learn from the similarities/differences of their ‘problems’ and
appropriate solutions?
MAX LIMIT: 4 Pages + Exhibits (note: CONSIDER THIS THE EQUILAVENT OF A TAKE HOME
EXAM)
NOTE:
You may - and should - discuss these cases with your study team; but please
write the papers individually. If you choose to use an exhibit that was prepared by/with
someone else or by your team; be sure to reference the same and note that the analysis is “shared”
work.
C.
ZARA: FAST FASHION
What are the distinctive features of ZARA’s operations strategy that support its business
strategy? How? Work the numbers! Compare ZARA to an ‘average’ retailer with similar posted
prices. (Assume that the retail price is twice the manufacturer’s selling price to the trade.) What
are ZARA’s advantages and disadvantages? How are ZARA’s operational and strategic ‘choices’
linked together to support its quick-response capability and to create sustainable competitive
advantage and overall long term profitability? Are there any ‘weaknesses’ in ZARA’s system –
any challenges to continued growth and increasing profits? How should ZARA grow? What
recommendations would you make to Inditex CEO Jose Maria Castellano?
WEEK FIVE: 8/4/2018
Morning Session (9 am – Noon)
Topic: Operations Planning & Control: Capacity Planning and Inventory Management
• Forecasting Demand/Make to Stock
• JIT/Make to Order
• Technology’s impact on capacity and productivity
• Role of Inventory in Process Design
• Factory vs. Services Operations
READ
• SBJ; Chs. 12(See especially p. 379-386) and 15 (very important) and 11 (review) and
6 (+ supplement on Forecasting)
• Coordination – An Overview (Review )
• Core Reading: Supply Chain Management
OPTIONAL FOR GREATER DEPTH
•
Just –in –Time Controlled by Kanban
28
•
•
•
Process Based Capabilities: A Principal Focus of Operations Management
‘The Triple A Supply Chain’ by Hau Lee, HBR
SBJ Ch. 14 and 1
CASE PREPARATION and Team ASSIGNMENTS
A.
TEAM I: FoldRite Furniture: Planning to Meet a Surge in Demand
What action recommendations would you make to Martin Kelsey in February 2010? Be specific
and provide analytical support for your recommendations. These recommendations should also
be suitable for presentation to the upper management of FoldRite. Hint: Analyze the options
and create an Aggregate Plan for production and inventory to meet anticipated demand for the
next 6 months. What happens after that? Consider both immediate production management and
longer term strategic issues. TIME LIMIT: 20 Minutes PAGE LIMIT: 5 Pages + Exhibits
B.
TEAM II: The Morrison Company
Identify and analyze the operations ‘problems’ (remember the distinction between ‘observed
symptoms’ and ‘underlying causal problems’) occurring at the Morrison Company. Explain the
differences between the production processes for the pharmaceutical product line compared with
those of the retail product line. Why are they different? What action recommendations would
you offer Shauna Breen to address the underlying causal issues you have identified and how will
these actions/changes affect ‘results’? Be specific about any policies or organizational changes
you propose. (Remember S-T-S and the ‘5 R’s”)
TIME LIMIT:
20 minutes
PAGE LIMIT:
5 Pages + Exhibits (Max)
C.
Team III: SCHARFFEN BERGER CHOCOLATE MAKER
Analyze the proposal to acquire the ‘ball mill’. [NOTE: WORK THE NUMBERS!!!] What are
your conclusions? As Jim Harris, would you proceed with the implementation of that change?
How? Analyze the production process? What problems does it have? (Hint: where are the
bottlenecks and what is their cause?) For calculations purposes; assume that all the production is
semi-sweet (62%) chocolate. What changes beyond the addition of the ball mill will you need to
increase your capacity by 150%? Given your strategy to increase capacity; what expansion
step(s) would give you the greatest concern? Why? What should Jim Harris do? How might the
expansion ‘strategy’ affect the quality of the product?
TIME LIMIT: 20 MINUTES
Exhibits (Max)
PAGE LIMIT: 5 Pages +
OPEN CLASS DISCUSSION:
HANK KOLB
What should Hank Kolb do? Immediately? Over the longer term? What are the observed
29
“symptoms” verses the sources/causes of quality “problems” in this production process?
Differentiate and integrate technical, organizational and human behavior problems. How should
he go about establishing his authority and developing other’s support for his actions? How did
the situation get this bad? What are the ethical responsibilities of the various individuals? Of the
firm? Can Hank use ideas of “ethics”, “fairness”, “right vs. wrong”, etc., to make his point?
(HINT: Map the process) and do a “fishbone” diagram)
Afternoon Session (2 – 5 pm) 8/4/2018
Topic: MANAGING OPERATIONS : Scale-Up and Quality
Control
READ: SBJ, Ch. 17 and 18
• The Four Things a Service Business Must Get Right’ by Francis X. Frei, HBR April,
2008
• ‘Discovering New Points of Differentiation’ by MacMillan and McGrath (HBR Jan.
1997)
• ‘Breaking the Trade-Off Between Efficiency and Service’ by Francis Frei (HBR,
Nov 2006)
OPTIONAL FOR GREATER DEPTH:
•
•
•
•
‘Will You Survive the Services Revolution?’ by Uday Karmarkar (HBR, June 2004)
‘My Week at the Ritz’ by Paul Hemp (HBR, June 2002)
CORE READING: Managing Queues
‘Power, Dependence and Effective Management’ by John Kotter (HBR July-August
1977)
•
Building Effective One-on-One Relationships
•
‘What Effective General Managers really Do’ by John Kotter (HBR March 1999)
•
‘What Leaders Really Do’ by John Kotter (HBR Feb. 2000)
•
CORE READING: Managing Quality With Process Control
Simulations and Exercises:
A. Operations Management Simulation: Quality Analytics
Work as Individuals to do the Quality Analytics Simulation.
Individual Written Assignment: ‘Lessons Learned’ about Quality Management.
LIMIT: 2 – double spaced - page + Exhibits.
‘
B. Do the Operations Management Exercise: Multiple Server Queues
Be prepared to discuss ‘Lessons Learned’ in Class
C. Global Supply Chain Management Simulation V2
30
Work in Teams (I-III) to do the Global Supply Chain Simulation. Written Hand In:
Lesson Learned about Supply Chain Management. How is it similar/different compared
to the single facility situations we have seen in the cases thus far?
Team Hand-In: Limit: 3 Pages + Exhibits
CASE PREPARATION and Team ASSIGNMENTS
A. Team I:
Class Presentation and Written Hand In
Playa Dorada Tennis Club
Analyze the demand for tennis and the options facing Doug Hall. What is his “dilemma”? His
goal? Develop and justify short and long-term capacity plans for the tennis operation. How does
the tennis capacity decision affect the profitability and long-term strategy of the Tennis Club?
How does it affect the overall Playa Dorada Resort business? Be prepared (have an overhead) to
present your analysis of the demand for tennis at Sea Pines and your recommendations for action.
Be specific and support your decisions with appropriate economic analyses.
What is the impact of ‘seasonality’, weather, time of day and annual growth rate on Doug’s plans
and the potential profitability of PD Tennis and the PD Resort as a whole? What operations
policy and business strategy decisions and marketing recommendations would you make to the
CEO of Sea Pines? To John Baker? (Consider future demand growth, pricing, profitability and
marketing tactics.) HINT: Consider the monthly variation in demand vs. capacity. Don’t confuse
operating costs & revenues with investment costs.
TIME LIMIT:
B.
20 MINUTES
TEAM II: Class PRESENTATION AND WRITTEN HAND - IN
CORNING GLASS WORKS – THE Z GLASS PROJECT
What is at stake in the Z Glass Project? Why is this project important to the future of Corning
Glass? How can a manager reconcile “science” with “experience”? Should Mac Tavish be
fired? Would that be “fair”? Why? What should Davidson do? Hint: Think about what you
learned in Organization Behavior! Hint: Review the Roger Bohn article from Session One.
TIME LIMIT:
20 Minutes
EXHIBITS
C. TEAM III : CASE PRESENTATION AND WRITTEN HAND – IN
THE RITZ- CARLTON HOTEL COMPANY
What ‘Business’ is R-C in? What is the essence of the R-C experience? How does the R-C
create ‘Ladies and Gentlemen’ in only 7 days? How often can it do that? What are the critical
operational and strategic choices that link together to give R-C a sustainable competitive
advantage? Is R-C a ‘job shop’ or a ‘production line’? Why? (Is the start-up of a new R-C a
‘Job Shop’ or a ‘Production Line’? Why?)
How should James McBride respond to Brian Collins’s request that he lengthen the training
31
period for his hotel? Why? Should he consider any changes in the hotel opening process? If
yes, what should he change and how should he go about doing it?
TIME LIMIT: 20 MINUTES
OPEN CLASS DISCUSSION
THE LINCOLN ELECTRIC COMPANY
Analyze and describe Lincoln’s approach to the organization and motivation of their employees?
What exactly do they do? What are the underlying ‘economics’ of their ‘system’? Why does it
work? Could it work at any/every other firm? Why/Why not? What role has the approach
played in the firm’s business success or the past decades? How does the production process
relate to the HR policies and to the firms business strategy? (Hint: consider the economics as
well as the social and cultural factors of the ‘system’.)
Will the Lincoln ‘system’ continue to
work in the 21st century? What are its weaknesses? Can it withstand globalization? Employee
diversity? Which of the other firms we have studied in this course might the system work at and
where would it most likely be a failure? Why? What about in your firm/employer?
Individual Written Assignment#: Analyze Lincoln Electric. Why does their ‘system’ work? Is
it ‘sustainable’? Why? What have they done in Economic terms to the structure of the
organization and to their financial and cost structures? To their production processes and
technology? Limit: 3 pages + exhibits/graphics
Purchase answer to see full
attachment