MGCR 472 Syllabus
OPERATIONS MANAGEMENT (MGCR 472) WINTER 2016 Sections 5 and 6 COURSE RELATED INFORMATION INSTRUCTOR INFORMATION Professor Mehmet Gumus Tel: (514) 398-4003 Office: 532 INSTRUCTOR’S OFFICE HOURS, E-MAIL AND MAILING ADDRESS INFO Office Hours
Wednesday, 2:30 pm – 4:00 pm
E-mail
[email protected] Desautels Faculty of Management, McGill University 1001 Sherbrooke St (West), Montreal, Quebec, H3A 1G5
Mailing Address
TA INFORMATION Name Cheng Zhu Elcin Ergin Feyza Sahinyazan Martin Cousineau Hedayat Alibeiki
Office Hour Tue 4pm-5pm Fri 9am-10am Mon 11am-12pm Wed 10am-11am Thu 1pm-2pm
Room Bronfman 466 Bronfman 466 Bronfman 467 Bronfman 466 Bronfman 467
Email
[email protected] [email protected] [email protected] [email protected] [email protected]
CLASS INFORMATION Section No 5 6
Class Room Bronfman 179 Bronfman 179
Lecture Time Mon Wed 10:05-11:25pm Mon Wed 1:05-2:25pm
Important Note: McGill University values academic integrity. Therefore all students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Code of Student Conduct and Disciplinary Procedures (see www.mcgill.ca/integrity for more information).
COURSE RELATED INFORMATION PERFORMANCE EVALUATION 5 Assignments (the best 4 of them will be graded) 2 Case Study Reports Midterm Exam Final Exam
16% (4*4%) 14 % (2*7%) 25 % 45 %
COURSE DESCRIPTION AND LEARNING OUTCOMES
Course Description
Operations management (OM) involves design, planning, establishment, control, operation and improvement of the activities/processes that create a firm's final products and/or services. At one time, the term "operations management" referred primarily to manufacturing issues. The growing economic importance of service activities, however, has broadened the scope of OM function (in fact, the course will focus more on service facilities). Large scale globalization, short product life cycle and more informed customers means that successful management of operations, careful design and efficient utilization of resources is an absolute must not only to add to the bottom line of a firm, but even for its mere survival. OM is a highly dynamic and expanding field of management. In this course, we will study both manufacturing and service operations, emphasizing their differences as well as similarities. We will examine the role of operations management in the organization by exploring a number of concepts and techniques. The interaction of operations with other business areas and environmental factors, and how operations management can contribute to the achievement of organizational goals, also will be discussed.
Course Learning Outcomes
The objective of the course is to develop your understanding of the major concepts and trade-offs involved in making OM decisions. At the end of this course, you will: 1. Recognize the important role of operations in an organization’s success 2. Develop a comprehensive understanding of operational issues and decisions and how they relate to each other, and to other areas of the organization and its environment 3. Understand related operational and economical concepts and techniques 4. Apply these techniques At the end of the course, you will be able to: 1. Identify the fundamental managerial trade-off in an operations decision environment 2. Develop a decision model and formulate an appropriate objective 3. Evaluate alternative solutions and analyze the objective to optimize the decision 4. Utilize data, models, techniques, and tools to determine the optimal solution
COURSE MATERIALS
Recommended Texts:
(SH) Stevenson and Hojati, Operations Management, 4th Canadian Edition, Publisher: McGraw-Hill Ryerson. (ACDvMZ) Anupindi, Chopra, Deshnukh, van Mieghem and Zemel, Managing Business Process Flows: Principles of Operations Management, 3rd Edition, Publisher: Pearson Prentice Hall. (Luehrman 1998) Luehrman, T.A., Investment opportunities as real options: Getting started on the numbers, Harvard Business Review, vol. 76, pages 51--66, 1998. The textbooks are not required, but are recommended. The problems at the end of every chapter in the textbooks are useful in preparing for the midterm and final exams. The textbooks are also reserved for your use in the Business Library.
Lecture Notes:
A required course package will be sold through the Management Undergraduate Society. The course package contains the following: Luehrman (1998) article and two case studies. The course slides, sample midterm and final questions, end-of-chapter practice questions will be posted on MyCourses. Important Note: We may skip some of the course notes during classroom discussions and we will be covering quantitative material not covered in these notes. Most of this material is also available online/on MyCourses for download. I will also post additional materials on MYCOURSES. Please check MYCOURSES at least once before and after each lecture for posted announcements, and materials.
ASSIGNMENTS There will be 5 assignments during the course. The best 4 of them will be graded. Each assignment is worth 4% of the final mark. Each assignment will be due in approximately two weeks (the exact dates are provided in the following Table). You will have to complete and submit your assignments by using MyCourses website. The solutions will be made available after the due-date. Late submissions will not be accepted. The topics covered in each assignment as well as their release and due dates are provided in the following Table:
TOPICS COVERED Introduction Strategy and Productivity Forecasting Project Management Capacity planning
Process Management
Waiting Lines Inventory Management
Assignments #1
Release Date Jan 8 11:59 PM
Due Date Jan 22 11:59 PM
#2
Jan 22 11:59 PM Feb 5 11:59 PM Mar 11 11:59 PM
Feb 5 11:59 PM Feb 19 11:59 PM Mar 25 11:59 PM
#3 #4
Newsvendor Model Supply Chain Management Quality Control
#5
Mar 25 11:59 PM
April 5 11:59 PM
EXAMINATIONS There will be one midterm and one final exam to test your understanding of the material covered in the course. Both the midterm and the final exams are compulsory, closed book and closed notes. Students are not allowed to bring any additional material and information related to the exams. A formula sheet will be provided together with the exam. The formula sheets for the midterm and for the final can be downloaded from MYCOURSES. Note that missing an exam is an issue that you will have to settle first with the B.Com office. The course policy is not to offer make-up exams.
GRADES The grades for the midterm and the assignments will be posted on MYCOURSES. Please check the course page whenever a new grade is available and immediately inform the instructor if there is any discrepancy. In accord with McGill University’s Charter of Students’ Rights, students in this course have the right to submit in English or in French any written work that is to be graded.
CASE STUDY REPORT There will be 2 case study assignments in the course, and they should be done in groups of 4 students. Case study assignment counts for 14% of your final grade. Group members can be from different sections taught by other OM professors. Each group should submit only one case study report for each case. Reports can be submitted to any instructor. Late submissions and submissions by e-mail will not be accepted. Make sure to write down the name, student # and section # for each student in the group on the cover page of the case study report. The cases are: Delays at Logan Airport and Norton Auto Supply. The cases are included in the course pack. A number of questions will be provided during the course for the case, which should serve as a basis for group discussion and case report. These questions will be of two types. One type of questions will have a calculator figure ( ) indicating the involvement of a quantitative analysis. The other type of questions are to initiate a broader discussion of the case study based on the managerial insights that can be developed from quantitative questions, case discussion among the group members and use of strategic operations management and related concepts. The full case study report should not exceed 5-pages typewritten, one-and-half-spaced, using default margins and 12-point type. In addition to the main body, you can attach an appendix that includes the details of the calculation, figures, tables, etc. The appendix itself should not exceed 2 pages. In summary, the entire case study report (including executive summary, main body and appendix) should be no more than 7 pages.
Your report should start with an executive summary (maximum 0.5 pages), which summarizes your recommendations and findings. The main body of the report should present a detailed discussion based on the provided questions and your analysis of the quantitative questions. Clearly state your assumptions. Be selective. Do not restate case facts. Summary tables in the text are encouraged for quantitative information. The details of the calculation can be put in the appendix, but any result that is important for answering questions or providing managerial insights should be referenced in the text. You may use figures to visually represent information contained in the text. Make sure tables and figures are referenced in the text. The following general guidelines are for your use in structuring your report. It is fine if you choose to structure it in another way. However, the page limit rules must be followed. General Guidelines: An ideal case study report should be composed of four sections: (a) executive summary, (b) problem analysis, (c) detailed recommendations, and (d) limitations. Executive Summary: State the major issues. If you do not intend to address all of the major problems in your recommendations, then indicate which one(s) you do intend to address. Use caution in your selection. Do not choose a minor problem with an obvious solution. Next, summarize your recommendations. Indicate the results you expect. This section of the report should take from one to two paragraphs. Problem Analysis: Provide any analysis necessary to support your statement of the problems. Indicate the significance or importance of the problems through discussion of their magnitude, urgency, difficulty, and/or possible consequences of a delay in addressing them. Discuss causal relationships whenever possible. You may include a discussion of secondary problems, as well. Indicate why you think these are secondary. Recommendations: Give the details of your recommendations. Take a stand for action. Do not merely suggest "more study" or "call in a consultant." Direct your recommendations to eliminating the underlying causes, not merely minimizing or eliminating the symptoms. Indicate precisely how these will help to alleviate the problem. Provide supporting analysis. Include the most significant and relevant facts, assumptions and principles. Include computational support where appropriate. You may want to discuss major alternatives that you rejected with a brief explanation of your reasons for rejecting them. Discuss the results you expect in greater detail, give support, and indicate when you anticipate the realization of the benefits. Be realistic. Identify major costs necessary for implementation. (This should be the primary section.) Limitations: Discuss limitations of your analysis or recommendations. These might include assumptions you made but do not feel comfortable with, or impediments to success that may prove more difficult than you expect. Discuss potential disadvantages of your recommendations. The case questions and more information on the case study and report format will be provided during the course. Please see the class schedule below for case report due dates.
TENTATIVE COURSE SCHEDULE Although no attendance will be taken, students who expect to have to miss more than the occasional lecture are cautioned against taking the course. Note that the schedule below is not rigid and may require minor modification as the course progresses. We should always be within one week of the indicated material. Students are expected to master the following topics by reading their text, class notes and practicing with available exercises: CLASS # 1 2 3, 4 5, 6, 7
TOPIC Course Introduction Strategy and Productivity Forecasting Project Management
8, 9, 10
Capacity planning
11, 12
Process Management
13
Review for Midterm
February 19, 2016 Time 6-8pm
MID-TERM EXAM
14, 15 Feb. 29 – Mar. 4 16 17 18, 19, 20 21 22 23 24, 25 26
Service Capacity Planning Waiting Lines – Single Channel Study Break Waiting Lines – Multi-Channel Case Study Discussion
(Delays at Logan Airport)
Case Report due on 23/24th March, in-class Inventory Management Newsvendor Model Supply Chain Management Case Study Discussion (Norton Auto Supply) Case Report due on 6/7th April, in-class Quality Review for Final Exam
TEXT CHAPTER SH-Chapter 1 SH-Chapter 2 SH-Chapter 3 SH-Chapter 17 SH-Chapter 5 Luehrman 1998 (Coursepack) SH-Chapter 6 ACDvMZ-Chapter 3
BEST OF LUCK SH-Chapter 18 SH-Chapter 18 Course-pack SH-Chapter 12 SH-Chapter 12 SH-Chapter 11 Course-pack SH-Chapters 9 & 10
FINAL EXAM
BEST OF LUCK
Wednesday, 2:30 pm – 4:00 pm
[email protected] Desautels Faculty of Management, McGill University 1001 Sherbrooke St (West), Montreal, Quebec, H3A 1G5
Mailing Address
TA INFORMATION Name Cheng Zhu Elcin Ergin Feyza Sahinyazan Martin Cousineau Hedayat Alibeiki
Office Hour Tue 4pm-5pm Fri 9am-10am Mon 11am-12pm Wed 10am-11am Thu 1pm-2pm
Room Bronfman 466 Bronfman 466 Bronfman 467 Bronfman 466 Bronfman 467
[email protected] [email protected] [email protected] [email protected] [email protected]
CLASS INFORMATION Section No 5 6
Class Room Bronfman 179 Bronfman 179
Lecture Time Mon Wed 10:05-11:25pm Mon Wed 1:05-2:25pm
Important Note: McGill University values academic integrity. Therefore all students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Code of Student Conduct and Disciplinary Procedures (see www.mcgill.ca/integrity for more information).
COURSE RELATED INFORMATION PERFORMANCE EVALUATION 5 Assignments (the best 4 of them will be graded) 2 Case Study Reports Midterm Exam Final Exam
16% (4*4%) 14 % (2*7%) 25 % 45 %
COURSE DESCRIPTION AND LEARNING OUTCOMES
Course Description
Operations management (OM) involves design, planning, establishment, control, operation and improvement of the activities/processes that create a firm's final products and/or services. At one time, the term "operations management" referred primarily to manufacturing issues. The growing economic importance of service activities, however, has broadened the scope of OM function (in fact, the course will focus more on service facilities). Large scale globalization, short product life cycle and more informed customers means that successful management of operations, careful design and efficient utilization of resources is an absolute must not only to add to the bottom line of a firm, but even for its mere survival. OM is a highly dynamic and expanding field of management. In this course, we will study both manufacturing and service operations, emphasizing their differences as well as similarities. We will examine the role of operations management in the organization by exploring a number of concepts and techniques. The interaction of operations with other business areas and environmental factors, and how operations management can contribute to the achievement of organizational goals, also will be discussed.
Course Learning Outcomes
The objective of the course is to develop your understanding of the major concepts and trade-offs involved in making OM decisions. At the end of this course, you will: 1. Recognize the important role of operations in an organization’s success 2. Develop a comprehensive understanding of operational issues and decisions and how they relate to each other, and to other areas of the organization and its environment 3. Understand related operational and economical concepts and techniques 4. Apply these techniques At the end of the course, you will be able to: 1. Identify the fundamental managerial trade-off in an operations decision environment 2. Develop a decision model and formulate an appropriate objective 3. Evaluate alternative solutions and analyze the objective to optimize the decision 4. Utilize data, models, techniques, and tools to determine the optimal solution
COURSE MATERIALS
Recommended Texts:
(SH) Stevenson and Hojati, Operations Management, 4th Canadian Edition, Publisher: McGraw-Hill Ryerson. (ACDvMZ) Anupindi, Chopra, Deshnukh, van Mieghem and Zemel, Managing Business Process Flows: Principles of Operations Management, 3rd Edition, Publisher: Pearson Prentice Hall. (Luehrman 1998) Luehrman, T.A., Investment opportunities as real options: Getting started on the numbers, Harvard Business Review, vol. 76, pages 51--66, 1998. The textbooks are not required, but are recommended. The problems at the end of every chapter in the textbooks are useful in preparing for the midterm and final exams. The textbooks are also reserved for your use in the Business Library.
Lecture Notes:
A required course package will be sold through the Management Undergraduate Society. The course package contains the following: Luehrman (1998) article and two case studies. The course slides, sample midterm and final questions, end-of-chapter practice questions will be posted on MyCourses. Important Note: We may skip some of the course notes during classroom discussions and we will be covering quantitative material not covered in these notes. Most of this material is also available online/on MyCourses for download. I will also post additional materials on MYCOURSES. Please check MYCOURSES at least once before and after each lecture for posted announcements, and materials.
ASSIGNMENTS There will be 5 assignments during the course. The best 4 of them will be graded. Each assignment is worth 4% of the final mark. Each assignment will be due in approximately two weeks (the exact dates are provided in the following Table). You will have to complete and submit your assignments by using MyCourses website. The solutions will be made available after the due-date. Late submissions will not be accepted. The topics covered in each assignment as well as their release and due dates are provided in the following Table:
TOPICS COVERED Introduction Strategy and Productivity Forecasting Project Management Capacity planning
Process Management
Waiting Lines Inventory Management
Assignments #1
Release Date Jan 8 11:59 PM
Due Date Jan 22 11:59 PM
#2
Jan 22 11:59 PM Feb 5 11:59 PM Mar 11 11:59 PM
Feb 5 11:59 PM Feb 19 11:59 PM Mar 25 11:59 PM
#3 #4
Newsvendor Model Supply Chain Management Quality Control
#5
Mar 25 11:59 PM
April 5 11:59 PM
EXAMINATIONS There will be one midterm and one final exam to test your understanding of the material covered in the course. Both the midterm and the final exams are compulsory, closed book and closed notes. Students are not allowed to bring any additional material and information related to the exams. A formula sheet will be provided together with the exam. The formula sheets for the midterm and for the final can be downloaded from MYCOURSES. Note that missing an exam is an issue that you will have to settle first with the B.Com office. The course policy is not to offer make-up exams.
GRADES The grades for the midterm and the assignments will be posted on MYCOURSES. Please check the course page whenever a new grade is available and immediately inform the instructor if there is any discrepancy. In accord with McGill University’s Charter of Students’ Rights, students in this course have the right to submit in English or in French any written work that is to be graded.
CASE STUDY REPORT There will be 2 case study assignments in the course, and they should be done in groups of 4 students. Case study assignment counts for 14% of your final grade. Group members can be from different sections taught by other OM professors. Each group should submit only one case study report for each case. Reports can be submitted to any instructor. Late submissions and submissions by e-mail will not be accepted. Make sure to write down the name, student # and section # for each student in the group on the cover page of the case study report. The cases are: Delays at Logan Airport and Norton Auto Supply. The cases are included in the course pack. A number of questions will be provided during the course for the case, which should serve as a basis for group discussion and case report. These questions will be of two types. One type of questions will have a calculator figure ( ) indicating the involvement of a quantitative analysis. The other type of questions are to initiate a broader discussion of the case study based on the managerial insights that can be developed from quantitative questions, case discussion among the group members and use of strategic operations management and related concepts. The full case study report should not exceed 5-pages typewritten, one-and-half-spaced, using default margins and 12-point type. In addition to the main body, you can attach an appendix that includes the details of the calculation, figures, tables, etc. The appendix itself should not exceed 2 pages. In summary, the entire case study report (including executive summary, main body and appendix) should be no more than 7 pages.
Your report should start with an executive summary (maximum 0.5 pages), which summarizes your recommendations and findings. The main body of the report should present a detailed discussion based on the provided questions and your analysis of the quantitative questions. Clearly state your assumptions. Be selective. Do not restate case facts. Summary tables in the text are encouraged for quantitative information. The details of the calculation can be put in the appendix, but any result that is important for answering questions or providing managerial insights should be referenced in the text. You may use figures to visually represent information contained in the text. Make sure tables and figures are referenced in the text. The following general guidelines are for your use in structuring your report. It is fine if you choose to structure it in another way. However, the page limit rules must be followed. General Guidelines: An ideal case study report should be composed of four sections: (a) executive summary, (b) problem analysis, (c) detailed recommendations, and (d) limitations. Executive Summary: State the major issues. If you do not intend to address all of the major problems in your recommendations, then indicate which one(s) you do intend to address. Use caution in your selection. Do not choose a minor problem with an obvious solution. Next, summarize your recommendations. Indicate the results you expect. This section of the report should take from one to two paragraphs. Problem Analysis: Provide any analysis necessary to support your statement of the problems. Indicate the significance or importance of the problems through discussion of their magnitude, urgency, difficulty, and/or possible consequences of a delay in addressing them. Discuss causal relationships whenever possible. You may include a discussion of secondary problems, as well. Indicate why you think these are secondary. Recommendations: Give the details of your recommendations. Take a stand for action. Do not merely suggest "more study" or "call in a consultant." Direct your recommendations to eliminating the underlying causes, not merely minimizing or eliminating the symptoms. Indicate precisely how these will help to alleviate the problem. Provide supporting analysis. Include the most significant and relevant facts, assumptions and principles. Include computational support where appropriate. You may want to discuss major alternatives that you rejected with a brief explanation of your reasons for rejecting them. Discuss the results you expect in greater detail, give support, and indicate when you anticipate the realization of the benefits. Be realistic. Identify major costs necessary for implementation. (This should be the primary section.) Limitations: Discuss limitations of your analysis or recommendations. These might include assumptions you made but do not feel comfortable with, or impediments to success that may prove more difficult than you expect. Discuss potential disadvantages of your recommendations. The case questions and more information on the case study and report format will be provided during the course. Please see the class schedule below for case report due dates.
TENTATIVE COURSE SCHEDULE Although no attendance will be taken, students who expect to have to miss more than the occasional lecture are cautioned against taking the course. Note that the schedule below is not rigid and may require minor modification as the course progresses. We should always be within one week of the indicated material. Students are expected to master the following topics by reading their text, class notes and practicing with available exercises: CLASS # 1 2 3, 4 5, 6, 7
TOPIC Course Introduction Strategy and Productivity Forecasting Project Management
8, 9, 10
Capacity planning
11, 12
Process Management
13
Review for Midterm
February 19, 2016 Time 6-8pm
MID-TERM EXAM
14, 15 Feb. 29 – Mar. 4 16 17 18, 19, 20 21 22 23 24, 25 26
Service Capacity Planning Waiting Lines – Single Channel Study Break Waiting Lines – Multi-Channel Case Study Discussion
(Delays at Logan Airport)
Case Report due on 23/24th March, in-class Inventory Management Newsvendor Model Supply Chain Management Case Study Discussion (Norton Auto Supply) Case Report due on 6/7th April, in-class Quality Review for Final Exam
TEXT CHAPTER SH-Chapter 1 SH-Chapter 2 SH-Chapter 3 SH-Chapter 17 SH-Chapter 5 Luehrman 1998 (Coursepack) SH-Chapter 6 ACDvMZ-Chapter 3
BEST OF LUCK SH-Chapter 18 SH-Chapter 18 Course-pack SH-Chapter 12 SH-Chapter 12 SH-Chapter 11 Course-pack SH-Chapters 9 & 10
FINAL EXAM
BEST OF LUCK
