Course

Operations Management

      Southern Californian International University / MBA Program /  Operations Management Course Syllabus V.1.0             Professor Information Juancho A. Lim, PhD juancho.lim@sciu-edu.org (university) limja@sbcglobal.net (personal) Smartphone: (858)722-8893 Landline (858)206-6231 Facilitator Availability I am available from 9 a.m. – 5 p.m. Pacific Standard Time on most days, but I attempt to […]

1 Lesson

 

 

 

Southern Californian International University / MBA Program /  Operations Management
Course Syllabus V.1.0

 

 

 

 

 

 

Professor Information

Juancho A. Lim, PhD

juancho.lim@sciu-edu.org (university)

limja@sbcglobal.net (personal)

Smartphone: (858)722-8893

Landline (858)206-6231

Facilitator Availability

I am available from 9 a.m. – 5 p.m. Pacific Standard Time on most days, but I attempt to reserve Sunday for my family. During the week, I am online most of the time.

On weekends, I check my phone and/or email messages, and any assignments that have been submitted. If these times are not convenient for you, please let me know. I will be happy to accommodate your schedule, if possible. I am providing you with these times to make it easier to communicate with me, and not so much to limit our contact.

Should you need to contact me outside these time frames, do not hesitate to do so. I will try my best to connect with you as soon as practicable.

For emergencies, when you are not able to gain access to messages on our Learning Management System (LMS), please send a message to my personal email address. In the event a third party needs to contact me, please direct them to my contact information. No third party should use your login credentials to gain access to the online classroom.

Online Time  

There is no limit to the amount of online time you can spend on this course. We do however require students to be on line a minimum of 45 hours documented by log and coursework for the duration of the course.

Credit Hours  

Operations Management is a core MBA program course at SCIU. Upon successful completion, you will earn 3 credit units, which will be reflected on your SCIU official student records.

Course Description

Operations Management exposes the students to the effective management of elements and concepts of critical functions within a business, agency, or organization. Current systems and methodologies are examined and analyzed in the context of business acumen. Students will learn concepts and tools, such as quality management, process management, sustainability, customer-supplier management, inventory control, technology, and scheduling mechanisms. How interactions affect each other will be discussed. These disciplines are vital in implementing strategies for success.  Trends in operations management strategies are likewise included.

Required Text/Supplemental Materials

Students are encouraged to use all sources and forms of online information, such as e-books, podcasts, video recordings, journals, articles, reviews, abstracts, speeches, etc. For each module, I have provided required and suggested readings, required videos/tutorials, and web links that augment the lessons covered.

Course Objectives

At the end of this course, students will be able to:

  • Understand the importance of operations management in an organization.
  • Compare and contrast the different systems that make operations run efficiently.
  • Assess the role of supply-chain dynamics.
  • Learn demand forecasting and inventory control.
  • Determine current technology improvements.
  • Analyze scheduling for planning and continuity.

Instructional Strategies

Course objectives will be achieved through required and supplemental readings via the Internet, cooperative learning techniques, optional learning exercises, one-hour group discussion, individual research, and use of other online media.

Attendance and Participation

 

While there is no attendance or participation requirement in our online class, each student is strongly encouraged to log in as often as possible to check and/or receive information, announcements, and other instructions. Additionally, active participation in the one-hour discussion forum is highly beneficial for collaborative learning.

 

Personal Notes

 

For each module, students are encouraged to take notes of knowledge, ideas, and principles learned from research, readings, discussion, and other means. This suggested exercise is an excellent opportunity to reflect upon, communicate, and demonstrate how you are applying the concepts to your workplace or educational experiences. The journal is a good source of information for any future use or need. Again, this is not a required activity.

 

Academic Honesty Policy

 

Academic honesty is strictly adhered to at SCIU. The final exam, for example, must be taken solely by the individual student without assistance from any other person. Should SCIU discover at any time that the student received outside assistance from another person or persons, it will consider appropriate disciplinary action. We believe strongly in trust, however, and in the desire of the student to complete the exam honestly and with integrity. Note: The final exam must be completed within a period of six (6) hours from the time it is submitted to the student by SCIU. The six-hour time period between the transmission of the exam to the student and the return of the exam to SCIU by the student will be strictly enforced. Note also: The student should feel free to use any course materials (or other material) as he/she completes the exam.

 

Course Assessment

 

Each student should complete all course modules before taking the final exam, which will be transmitted to him/her when he/she is ready to take it. The final exam is graded automatically at SCIU. It is the ONLY means used to assess course performance, and its intent is to measure mastery of the course content; SCIU does NOT use quizzes, papers, or other means of assessment. In order to pass the exam and thus complete the course, the student must earn a score of at least 70% on that exam. If the student scores lower than 70%, he/she must retake the exam at a later date. Each student may progress through the modules at his/her own pace and then take the exam when he/she feels ready to do so.

 

Grading System

Points Grade
95-100 A
90-94 A-
86-89 B+
83-85 B
82-80 B-
77-79 C+
74-76 C
70-73 C-
 0-69 F

 

W – Withdrawn

IN – Incomplete

IP – In progress

 

Note: Grades that fall between intervals will be rounded to the higher number.

Words of Welcome

Hello and welcome to the Operations Management course! I hope you are able to navigate this syllabus without any major concerns. In the next few weeks you will learn different concepts, principles, and tools which operations managers use in the performance of their jobs. I am confident that you will find the sections to be informative as well as practical. As you know, the business world is in a chaotic state of change. Those who rise above the threats and challenges will take their firms to competitive success. I challenge you to pay attention to each concept, glean from the wisdom of documented research, and apply it to your own workplace. Nothing can be more satisfying than to be able to make a difference for the future of your own firm. With that said, let us together explore the virtues of Operations Management!

 

 

Module 1

Overview of Operations Management

 

 

  • Objectives/Core Competencies

 

 

  • Define the role of Operations Management in business and/or organization.
  • Learn about current systems and tools used by operations managers.
  • Identify the current changes in the Operations Management landscape.
  • Apply lessons learned to appropriate real-life business cases.
  • Analyze the challenges and opportunities present in the field.

 

 

  • Personal Notes

 

 

As a practical suggestion, summarize your thoughts, impressions, and new knowledge gained or experiences revisited pertaining to this course content for this module. Examine how you can apply them to your own place of work, agency, or organization. Keep this log for any future use. Again, this is not a required activity.  

 

 

  • Operations Management Overview

 

 

In practice, operations management deals with the production of products and/or services that people consume or use. This function enables companies and organizations to achieve their goals and targets through the efficient acquisition and utilization of available resources (Krajewski & Ritzman, 2002). It is a critical component of business success because only through the successful management of operations, people, capital, information, and materials, can a firm meet or exceed its intended targets.  

 

The province of Operations Management covers multiple concepts, disciplines, processes, and roles aimed at refining currently established norms to make things better and more efficient. Much research is available that pertains to overall quality, process improvement, good change (kaizen), and sustainability efforts (Chase, 2006). Programs and methods have been replicated to support operational efficiency. Alongside, technology enhancements have contributed a great deal in reducing costs, improving employee participation, sustaining high levels of performance, and catapulting companies to greater heights and profitability.

 

Whether it is people, process, product, promotion, or price, Operations Management can help to achieve the desired outcomes. Functions such as sales and marketing, purchasing, processing and distribution, accounting, logistics, etc., all benefit from inroads made in operations management. As you will see, Operations Management enables these processes to proceed as efficiently as possible. Great decisions made at every level can be harnessed with sound operating philosophy. This can lead to implementation of tactics and strategies for long-term viability.  As labor productivity becomes front and center in decision making, more and more operations managers are called upon to fine tune current systems and explore new ways of improving them.

 

Many theorists think of Operations Management as a standalone entity that is completely disconnected from each department or unit. Nothing can be farther from the truth. Modern-day operations managers understand the interconnection between operations and how they are linked to corporate culture. When operations managers work together sharing resources, tapping employee talents and skills, collaborating on best practices, and taking a holistic approach to doing business, much more can be achieved. The small islands that exist in corporations can become one huge platform full of opportunities for growth and success.  In the following video by Professor Lisa Bussom, you can have a better appreciation for what Operations Management entails and how important it is to any business (https://www.youtube.com/watch?v=Hn7V0lclJfQ&list=PLwcu5sBq_fM4RkvjDoEOAHPmwCRppS4jX).

 

Operations Management Programs/Tools

 

The challenge for business today is to produce quality products or services efficiently. To date, there are a number of tools and systems that are available at the operations manager’s disposal to further improve their processes. In theory, companies observe industry standards which dictate quality, service, and performance. By definition, quality is the level of conformance to agreed-upon standards. This is shown in the general formula

 

Quality = [Output (conforming) / Total output] x 100%

 

In perspective, a high quality product or service is one that achieves a 95-98% conformance rate. Therefore to improve quality, operations managers must summon the operators to produce output that is in conformance to customer requirements. In a given operation, if 100 widgets are produced per hour and only 97 of them pass quality testing, then the company puts out 97% quality. Again, quality is determined by customer, industry, and process expectations. To obtain the defect rate, simply use the ratio of defects to total output. Cost considerations also play an important part in decision making.

 

In theory, total quality management (TQM) looks at the overall quality philosophy in terms of customer satisfaction, employee involvement, and continuous improvements in quality. According to W. Edwards Deming, “quality is the responsibility of management, not the workers, and that management must foster an environment for detecting and solving quality problems” (Krajewski & Ritzman, 2002, p. 23). Process management is the investigative review of prevailing steps involved in operations, aiming for process stability, low variability, and improvement capability.  Activities help to prevent defects and errors, eliminate waste and redundancy, and thereby lead to better quality and improved company performance through shorter cycle times, improved flexibility, and faster customer response (Evans & Lindsay, 2005). Continuous process improvement is designed to sustain changes implemented systematically to achieve consistency, increase value, and reduce operating costs. This concept is based on how “capable” the control processes can be improved. In these efforts, a working knowledge of statistical process control is valuable. Kaizen, which is a Japanese word that means “gradual and orderly continuous improvement”, is a philosophy that encompasses all business activities and everyone in an organization. Three things are important for a successful kaizen program: (1) operating practices, (2) total involvement, and (3) training. Lean Six Sigma is an offshoot to the Six Sigma methodology in that it is a combined data-driven, quality measurement-based strategy and methodology for eliminating defects that focus on process improvement and variation reduction through the application of improvement projects that strive for near perfection. The goal is 99.99966% quality or 3.4 defects per million opportunities,

 

DPMO = [DPU x 1,000,000] / opportunities for error

 

Here DPMO is defects per million opportunities and DPU is defects per unit. For example, in a keying operation the supervisor has noted that each coder committed 2 errors/1000 keystrokes/hr. On a given shift, an average of 1200 keystrokes/hr./operator was determined. The lean six sigma level for this problem is therefore 1.67 errors/million keystrokes/hr. Note that lean six sigma methodology requires strict compliance to process discipline, cost reduction, and employee commitment to change. Economic savings from such an endeavor will reap rewards for the business overall.       

 

In a lean production, focus is minimizing defects and reducing costs at the same time. It makes economic sense to approach operational problems this way for sustainability and product cost reliability. Sustainability aims to embed into the employee’s psyche the long-term existence and perpetual nature of such an effort. These programs include pictorial representation such as process flowcharting and value stream mapping to aid in understanding process steps and variables as well as process and results indicators present in critical steps of the value chain. Process owners are kept in the loop as to changes needed to affect the expected outcomes.   

 

Labor Productivity Concerns

 

In any company, worker performance is measured by some numerical means. Operations managers deal with how productive their employees are in producing product or service steps. Generally speaking, productivity is the ratio of outputs produced and input resources used. Mathematically stated,

 

Productivity = Output / Input

 

Many productivity measurements are used to quantify actual performance against expectations – labor productivity, machine productivity, multifactor productivity. To illustrate, in ABC Company 20 seamstress can finish 225 dresses in a shift of 8 hours. The labor productivity is therefore 1.4 units per hr. Now if the manager wanted to increase production to 2 units/hr. thereby reducing unit costs, he/she would have to find ways to make the workers do more. Multifactor productivity is an index that considers the sum total of all input sources, such as labor, materials, and overhead costs, usually in dollar costs. If in the same example, if a dress costs $45 and labor cost is $2400, material cost is $1000, and overhead cost is $5000, the multifactor productivity is therefore 1.2. Comparing numbers with past performance might reveal opportunities for improvement.  

 

Productivity levels (%) are always being reviewed as productivity gains are necessary for business survival. The challenge is for operations managers to harness new technologies, improve worker performance, create new systems, and reduce overall costs. Changes in productivity will be part of the industry, national, and global competitive forces.                

 

In the next few weeks, traverse the expansive panorama of Operations Management. Learn the many methods and applications in place that support quality, efficiency, and constant change, to name a few. You will glad that you did!       

________________________________________________________________________Chase, R. B. (2006). Operations management for competitive advantage (11th ed.). ISBN: 9780072983906. New York, NY: McGraw Hill.

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

Evans, J. R., & Lindsay, W. M. (2005). The management and control of quality (6th ed.). Mason, OH: Thomson South-Western.

 

 

  • Optional Learning Exercises

 

 

  • Research and read up on Operations Management concepts and principles, such as the following:

 

  • Total Quality Management
  • Process Management
  • Continuous Process Improvement
  • Lean Six Sigma Methodology
  • Kaizen
  • Sustainability Programs  
  • Process Flowcharting

 

 

  • Follow-up Questions

 

 

  • When you hear the term Operations Management, what quickly comes to mind? With this overview, has your mindset changed at all? Why?
  • What are some of the tools and methodologies used in companies that help operations managers to respond effectively to business threats?
  • Discuss 2-3 systems and be able to cite existing examples to show their usefulness. What system(s) are available or in use in your workplace?
  • Present challenges and opportunities confronting operations managers in today’s competitive and changing business environment.
  • Explore some trends in the field of Operations Management.

 

 

  • Business Case Application

 

 

As an operations manager of ACME Company, you are charged with running the manufacturing operations as productively as possible. Employees know the job expectations in terms of the daily output. Upon reviewing the quality reports, you discovered a high incidence of defects in a processing operation that is way below the acceptable target of < 2%. No one seemed to know what deviations occurred in the operation. Knowing what you know at this point, what actions will you take in order to address this particular problem? How can you rally your operations groups to work on an effective solution and meet the operating standards?   

 

 

  • Required Readings

 

 

Bus 300: Operations management overview. Retrieved from https://learn.saylor.org/course/view.php?id=86&sectionid=839

 

Introduction to operations management. Retrieved from https://www.coursera.org/learn/wharton-operations

 

Operations management – an overview. Retrieved from https://www.slideshare.net/praftek/operations-management-an-overview

 

Operations management major. Retrieved from https://ugrad.eller.arizona.edu/academics/majors/operationsmanagement

 

Operations management overview. Retrieved from http://www.acornlive.com/demos/pdf/E1_EO_Chapter_6.pdf

 

 

  • Suggested Readings

 

Chang, J. F. (2005). Business process management systems, strategy and implementation. ISBN: 978-1-4200-3136-2. doi: 10.1201/9781420031362

Chase, R. B. (2006). Operations management for competitive advantage (11th ed.). ISBN: 9780072983906. New York, NY: McGraw Hill.

Evans, J. R., & Lindsay, W. M. (2005). The management and control of quality (6th ed.). Mason, OH: Thomson South-Western.

 

Glover, W. J., Farris, J. A., Van Aken, E. M. & Doolen, T. L. (2011). Critical success factors for the sustainability of Kaizen even human resource outcomes: An empirical study. International Journal of Production Economics, 132(2), 197-213. doi: 10.1016/j.ijpe.2011.04.005

Jimenez-Jimenez, D., Martinez-Costa, M., Martinez-Lorente, A. R., & Rabeh, H. A. (2005). Total quality management performance in multinational companies: A learning perspective. TQM Journal, 27(3), 328-340.  

Kleindorfer, P.R., Singhal, K. & Van Wassenhove, L. N. (2005). Sustainable operations management. Production and Operations Management, 14(4), 482-492. Retrieved from ProQuest Central.

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Yaduvanshi, D. & Sharma, A. (2017, June 9). Lean six sigma in health operations. Challenges and opportunities – Nirvana for operational efficiency in hospitals in a resource limited settings. Journal of Health Management, 19(2), 203-213. doi: 10.1177/0972063417699665

 

 

  • Required Videos/Tutorials

 

Bussom, L. (2014, August 19). Operations management video series [Video File]. Retrieved from https://www.youtube.com/watch?v=Hn7V0lclJfQ&list=PLwcu5sBq_fM4RkvjDoEOAHPmwCRppS4jX

David Eccless School of Business. (2012, November 13). Operations management overview [Video File]. Retrieved from https://www.youtube.com/watch?v=21G1WnRB4Qk

GAPS Academy. (2012, July 15). Introduction to operations management 1 [Video File]. Retrieved from https://www.youtube.com/watch?v=skg_lg-4m2o

Khan, S. (2015). Total quality management [Video File]. Retrieved from https://www.youtube.com/watch?v=988hezLBwGs

Magers, S. (2014, April 29). What is operations management? [Video File}. Retrieved from https://www.youtube.com/watch?v=leMOReAE2hk

 

*Look Ahead: After completing Module 5, a Final Exam will also be given to assess the student’s subject understanding and retention. Be sure to keep your materials available.   

 

Module 2

Supply-Chain Management

 

 

  • Objectives/Core Competencies

 

 

2.1 Learn about supply-chain management in the purview of business acumen.

2.2 Describe the supply-chain dynamic and how it contributes to business success.

2.3 Identify the different measurements used to meet customer-supplier requirements.

  • Explore supply-chain integration.
  • Examine an efficient supply-chain management program.

 

 

  • Personal Notes

 

 

As a practical suggestion, summarize your thoughts, impressions, and new knowledge gained or experiences revisited pertaining to this course content for this module. Examine how you can apply them to your own place of work, agency, or organization. Keep this log for any future use. Again, this is not a required activity.  

 

 

  • Supply-Chain Management Overview

 

 

One of the more important concepts we will learn is supply-chain management (SCM). In practice, this discipline covers a myriad of functions from distribution, finance and accounting, information systems, marketing, operations, to purchasing, and the like. Simply put supply-chain management “seeks to synchronize a firm’s functions and those of its suppliers to match the flow of materials, services, and information with customer demand” (Krajewski & Ritzman, 2002, p. 40). Closely allied to SCM is inventory control. Use of available materials, resources, and stock in producing products or services cost effectively can spell profit margins for the company. In this section, we will explore the ways in which SCM can make a difference in operations management.

 

Managing supplies in the form of raw materials can sometimes be daunting especially when cost controls are in place. A good relationship between suppliers and customers can avoid some of these challenges. Understanding the supply-chain dynamic can be a positive influence to decision makers who are charged to balance revenues and costs. Depending on the complexity of the supply chain, managers can seize opportunities that meet guidelines and operational needs. An integrated supply chain can therefore be developed to avoid redundancy, duplication, unnecessary costs, and timely delivery of orders (Flynn, Huo, & Zhao, 2010). In many cases, partnership loyalty and shared commitments go a long way in meeting current and future demands.

 

Supply chain networks contribute not only to service and delivery performance but more so to the firm’s sales performance. In addition to purchasing and distribution, a good logistics management system can create lasting value for both the customers and the suppliers. Having a strategic logistics plan provides for a seamless network in the flow of materials, goods, and services. Placement of finished goods has some economic and time sensitive merits. Selection of transportation mode is also vital to scheduling, routing, and carrier selection. These considerations can support a fluid supply chain network – one that is responsive to customer needs as well as economical for the enterprise.   

 

Many companies select and certify suppliers in order to cement their partnership for the long haul. There is wisdom in this effort as both suppliers and customers have similar objectives in mind. Crucial criteria, such as price, quality, and delivery have a significant impact on the seamless operation of functions involved. Operations managers can capture mutual understanding and cooperation by reducing the complexity of the chain. Process mapping can aid in facilitating the decision needed to reach this point. Flexibility to change the supply chain should also be considered during times of chaotic business environment. The more ductile a supplier becomes, the better the company can react to competition and threats.        

 

Today, many companies resort to “outsourcing” some or all of its materials, parts, products, and services. While there is no question that a value analysis of such an approach can be deemed prudent, nothing can replace a symbiotic supplier-customer codependency, which can be a differentiating factor for success. Such relationship can be viewed as good investment, as product development times are reduced and shortened.  Responsive chains react quickly to market demands by positioning inventories and capacities to hedge uncertainties in demand. A cogent operations manager will know why this interplay is important in the conduct of business.

________________________________________________________________________

Flynn, B. B., Huo, B., & Zhao, X. (2010, June). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58-71. doi: 10.1016/jom.2009.06.001

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

 

  • Optional Learning Exercises

 

 

 

  • Research and read up on Supply-Chain Management concepts and principles, such as the following:

 

 

  • Customer-supplier relationship
  • Process mapping
  • Efficient Purchase Processing
  • Internal and external dependencies
  • Supply-chain integration

 

  • Follow-up Questions

 

  • What is supply-chain dynamic? How does it affect overall business success?
  • Research and note a supply-chain process map and be able to cite existing examples to show its value. What system(s) are available or in use in your workplace?
  • Describe customer-supplier interaction in business. Give examples of how such relationship can contribute to better business practices.
  • Present challenges and opportunities in supply-chain integration.
  • Explore some trends in the field of Supply-Chain Management.

 

 

  • Business Case Application

 

Every week, your department consistently runs out of stock. You have talked to the purchasing department to advise them of the negative impact of always running “short” of supplies and inventories. The response you gathered was that vendors could not meet the weekly demand due to transportation issues. Furthermore, they have threatened to increase the price if emergency orders were pushed. You are now behind schedule in meeting the monthly output for delivery. How can you convince the suppliers to meet your operating demand? What other options can you take to solve this supply-chain dilemma?  

 

  • Required Readings

 

 

Dooley, F. (2005, 4th Quarter). Logistics, inventory control, and supply chain management. Choices, 20(4), 32. Retrieved from http://www.choicesmagazine.org/2005-4/supplychain/2005-4-14.htm

 

Sarah. (2014, January 1). Inventory management 101: Time to revisit the principles. Retrieved from http://www.logisticsmgmt.com/article/inventory_management_101_time_to_revisit_the_principles

 

Supply chain management. Retrieved from http://www.cscc.edu/academics/departments/supply-chain-management/

 

Wailgum. T., & Worthen, B. (2007, March 19). Supply chain management definition and FAQs. Retrieved from http://www.cio.com/article/2439493/supply-chain-management/supply-chain-management-supply-chain-management-definition-and-solutions.html

 

What is supply-chain management (SCM)? (2012, April 2). Retrieved from https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

 

 

  • Suggested Readings

 

 

Flynn, B. B., Huo, B., & Zhao, X. (2010, June). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58-71. doi: 10.1016/jom.2009.06.001

 

Hurst, K. (2014, June). Learning from our internal and external customers. International Journal of Health Care Quality Assurance, 27(5), 358. doi: 10.1108/IJHCQA-12-2013-0143

 

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Laeequddin, M., & Sardana, G. D. (2010). What breaks trust in customer supplier relationship? Management Decision, 48(3), 353-365. doi: 10.1108/00251741011037738

 

Samson, R. M. (2011). Supply-chain management: Theories, activities/functions and problems. ISBN: 9781616687151. Nova Science Publishers, Inc.

 

White, G. R. T., & Cicmil, S. (2016). Knowledge acquisition through process mapping. International Journal of Productivity and Performance Management, 65(3), 302-232. doi: 10.1108/IJPPM-01-2014-0007

 

 

  • Required Videos/Tutorials

 

 

AIMS UK. (2016, June 11). What is supply chain management? Definition and introduction [Video File}. Retrieved from https://www.youtube.com/watch?v=lZPO5RclZEo

 

Millar, H. (2013, January 8). Suppply-chain management lecture [Video File]. Retrieved from https://www.youtube.com/watch?v=988hezLBwGs

 

Naing, Y. L. (2016, November 1). SCM11 Understand supply chain and supply chain management [Video File}. Retrieved from https://www.youtube.com/watch?v=La2E7T2Zgiw

 

Wohler, D. (2013, September 12). Supplier relationship management best practices [Video File]. Retrieved from https://www.youtube.com/watch?v=988hezLBwGs

 

  1. P. Carey School of Business. (2010, April 16). Module 1: What is supply chain management? [Video File]. Retrieved from https://www.youtube.com/watch?v=Mi1QBxVjZAw&list=PL0A387BA0FA968E4E

 

Module 3

Inventory and Material Management

 

 

  • Objectives/Core Competencies

 

 

3.1 Learn about material and inventory management as a business function.

3.2 Describe inventory control systems.

3.3 Identify Just-in-time discipline in material management.

3.4 Understand the importance of demand analysis.

3.5. Explore statistical tools for demand forecasting.

 

 

  • Personal Notes

 

 

As a practical suggestion, summarize your thoughts, impressions, and new knowledge gained or experiences revisited pertaining to this course content for this module. Examine how you can apply them to your own place of work, agency, or organization. Keep this log for any future use. Again, this is not a required activity.  

 

 

  • Inventory and Material Management Overview

 

 

Inventory and supply-chain management go hand in hand, as these functions carry much weight in the efficient use of materials and/or services. When we speak of inventory, we usually attach the idea of “stock” that is available for use when a need arises. An inventory is created when the “receipt of materials, parts, or finished goods exceeds their disbursement” (Krajewski & Ritzman, 2002, p. 260). In other words, operations managers face constant pressures for low inventories, most definitely during high periods of demand. Managing inventories is therefore important not only for fluid supply of products and services but more so for high customer satisfaction and brand loyalty.

 

At the same time, pressures exist for high levels on inventory because decision makers view this situation as “cold cash” sitting in the warehouse (Kurata, 2014). Research has shown various computations to achieve an optimum inventory state, such as cycle inventory, pipeline inventory, and economic order quantity. Therefore a sound inventory control system is required to respond to fluctuations in demand, costs, and distribution. Here we come across such disciplines as continuous review system (also known as reorder point), safety stock, and two-bin system. In some firms, a periodic review system is used. Additionally, a hybrid system is sometimes employed in response to changing cost and supply profiles. The method to use will depend on how inventories and materials affect service and product availability.

 

Inventory Measures

 

Inventory should be considered an investment. The objective is to have the right amount of inventory, not the least or excessive amount. This value is cold cash sitting in the warehouse. Inventory measures are in place to quantify the amount of available stock created in the flow of materials in the supply chain. Two measures are called Weeks of Supply and Inventory Turn,

 

Weeks of Supply = Average inventory value / Weekly sales (at cost)

 

Inventory Turnover = Sales (at cost) / Inventory value

 

To illustrate, XYZ Company has an annual cost of sales of $50 million, averaging 50 weeks. Their average inventory cost is $3 million. Therefore,

 

Weeks of Supply = $3M / [$50M / 50] = 3.0

 

Inventory Turnover = $50 / $3 = 16.7/year

 

Demand Forecasting

 

Demand forecasting is essential if product or operations managers want to avoid depletion or what is called a “run-out”. Now various statistical formulas and tools are used to ascertain future demand for materials. A mathematical understanding of how it works will serve a manager quite well. Causal and time series methods are two popular forecasting tools in use today. A known principle, “Just-in-time” (JIT) has received recognition due to its cost effective approach to inventory control. Such a system requires skillful oversight and management as deviations do occur in actuality. Today, environmental factors are also considered when making decisions on products and materials. Recyclable products bode well with consumers who indirectly place responsibility on the shoulders of business managers in the grand scheme of product sustainability. More research is warranted to see if such efforts can have beneficial rewards for both consumers and suppliers, and the planet as a whole.

 

Inventory and materials management ensures that operations managers can access resources needed to produce finished products or services at the right time. Manufacturing and management information systems (MIS) managers can work together to create an operations information system that supports processes business-wide. Materials requirements planning (MRP) is designed for managing inventories subject to dependent demand. An integrated system is therefore warranted to smoothen out the pain points and improve product availability profiles and service performance.    

________________________________________________________________________

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

Kurata, H. (2014, November). How does inventory pooling work when product availability influences customers’ purchasing decisions? International Journal of Production Research, 52(22), 6739-6759. doi: 10.1080/00207543.2014.916825   

 

 

  • Optional Learning Exercises

 

 

  • Research and read up on Inventory and Material Management concepts and principles, such as the following:

 

  • Material supply and demand requirements.
  • Accounting of purchasing and delivery.
  • Cost analysis in inventory systems.
  • Demand forecasting.
  • Technology advances in the field of inventory systems.
  • Logistics management systems.

 

 

  • Follow-up Questions

 

 

  • What is inventory and material management? How important is it in meeting supply and demand requirements?
  • Research and note an inventory control system used in a major businesses. What system(s) are available or in use in your workplace?
  • Explain supply vs. demand requirements in the purchase and delivery of materials. Give examples of how a reliable inventory control system can respond to internal and external demands.
  • Present challenges and opportunities in inventory and material control.
  • Explore some trends in the field of Inventory and Material Management.

 

 

  • Business Case Application

 

 

Part of your responsibilities at Alpha Beta Consigners is to forecast product demand. Customers are excited about your new product and cannot wait to increase their monthly orders. Sales are up 25% and employees are working a lot of overtime almost on a daily basis. You are now concerned that they will get burned out and affect the quality of the product. Moreover, you are at the brink of running over budget. Who can you work with in order to even out the influx of product demand? What steps can you take to balance output with delivery profiles? Create an action plan for immediate implementation.  

 

 

  • Required Readings

 

Inventory management – a vital cog in the wheel (2017, July 8). A comprehensive guide on materials management. Retrieved from http://www.materialsmanagement.info/inventory/

Materials management. Retrieved from http://www.newagepublishers.com/samplechapter/001386.pdf

 

Material management: Its definition, objectives and organization. Retrieved from http://www.yourarticlelibrary.com/material-management/material-management-its-definition-objectives-and-organization/27934/

 

Smriti, C. 6 most important techniques of inventory control system. Retrieved from http://www.yourarticlelibrary.com/inventory-control/6-most-important-techniques-of-inventory-control-system/26159/

 

What is inventory management? Retrieved from http://www.fishbowlinventory.com/inventory-management/?utm_source=msn&utm_medium=cpchttp://www.materialsmanagement.info/inventory/

 

 

  • Suggested Readings

 

 

Burkhard, B., Kroll, F., Nedkov, S., Muller, F. (2012, October). Mapping ecosystem service, supply, demand, and budgets. Ecological Indicators, 21, 17-29. doi: 10.1016/j.ecolind.2011.06.019  

 

Hahn, G. J., & Leucht, A. (2015, December). Managing inventory systems of slow-moving items. International Journal of Production Economics, 170, 543-550. doi: 10.1016/j.ijpe.2015.08.014

 

Jones, R. (2010, August). Forecasting demand. British Journal of Healthcare Management, 16(8), 392-393. doi: 10.12968/bjhc.2010.16.8.77654

 

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Kurata, H. (2014, November). How does inventory pooling work when product availability influences customers’ purchasing decisions? International Journal of Production Research, 52(22), 6739-6759. doi: 10.1080/00207543.2014.916825   

 

 

  • Required Videos/Tutorials

 

 

Accenture Academy. (2012, August 24). Inventory management practices [Video File]. Retrieved from https://www.youtube.com/watch?v=RkRHQ_cth8M

 

Fishbowl. (2013, October 16). What is inventory management? [Video File]. Retrieved from https://www.youtube.com/watch?v=sl5zEPRkp0U

 

Hay, D. (2015, January 22). Inventory management for small business. A simple how to tutorial [Video File]. Retrieved from https://www.youtube.com/watch?v=fsPkrUfSi_c

 

Manthan Systems. Smart Inventory Management through Product Rationalization [Video File]. Retrieved from https://www.youtube.com/watch?v=s37WWSAgIBw

 

Millar, H. (2013, March 20). Inventory management economic order quantity [Video File]. Retrieved from https://www.youtube.com/watch?v=vMSARPybFxg&list=PLzZfeZ4qWj8PrEaOtd4lqEJe3dE4ZE3d0&index=2

 

Module 4

Technology and Information Management

 

 

  • Objectives/Core Competencies

 

 

4.1 Learn about technology and information management.

4.2 Describe the role of technology in information transfer.

4.3 Analyze information implementation policies.

4.4 Understand how knowledge is shared in the organization.

4.5 Explore future technology adoption for differentiation.

 

 

  • Personal Notes

 

 

As a practical suggestion, summarize your thoughts, impressions, and new knowledge gained or experiences revisited pertaining to this course content for this module. Examine how you can apply them to your own place of work, agency, or organization. Keep this log for any future use. Again, this is not a required activity.  

 

 

  • Technology and Information Management Overview

 

 

Information technology (IT) has greatly affected and revolutionized the way we live in this century. Not only that, IT has significantly contributed to operational efficiency and cost effectiveness. Just look around and you will see the degree of penetration new technologies have had into the fabric of our society. Whether it is social media or product improvement, the influence brought about by new knowledge and information sharing cannot be underscored. Many technologists and software engineers believe that we have just “scratched the surface” as to what the possibilities are for the future. The idea of having a flying car or an automated maid service, considered radical a couple of decades ago, is not too far from reality!

 

In operations management, there are three areas of technology of particular interest to a business manager: (1) product technology, (2) process technology, and (3) information technology (Krajewski & Ritzman, 2002). Each company can come up with specific identification of each technology customized to its current operating needs. Depending on the industry, operations managers can drive the appropriate and leading technologies to further differentiate its product and service offerings.  For instance, in the service industry process technology is predominantly reviewed and improved. Likewise, in manufacturing, process technology is closely looked at for leverage and differentiation.

 

Leading managers invariably use information technology so they can make more effective decisions (Lawton, 2006). The challenge confronting today’s information-savvy managers is how to validate useful information and integrate it cross functionally. Hardware, software, and database management has become an integral part of a company’s integrated system. With the constant “hacking” and “identity theft” intrusion around the world, these managers must stay ahead of the curve. Cyber-attacks of increasing magnitude and scope will continually concern global organizations.  As e-commerce continues to evolve, we can only speculate the never-ending battle in this arena.

 

We have seen how product development cycle time has been shortened in the advent of speedy technologies. Therefore, robust and up-to-date technology and information can create a competitive advantage if properly harnessed. In the face of new requirements brought by information technology adoption, operations managers must sort out the benefits, costs, and overall employee impact. The next section will explore the human capital implications of such new and speedy technologies.

________________________________________________________________________

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

Lawton, G. (2006). Making business intelligence more useful. Computer, 39(9), 14-16. doi: 10.1109/MC.2006.318

 

 

  • Optional Learning Exercises

 

 

  • Research and read up on Technology and Information Management concepts and principles, such as the following:

 

  • Information technology (IT) systems.
  • Implementation policies.
  • Cost analysis of IT support services.
  • Ongoing threats to secure information.
  • Technology advances in the field of Information sharing.

 

 

  • Follow-up Questions

 

 

  • What is technology and information management? How important is it in responding to increasing customer needs?
  • Research and present a typical knowledge-based system in a company. What system(s) are available or in use in your workplace?
  • Explain the advantages created with up-to-date technology systems. Give examples of how a reliable and secure information system can protect both customers and business institutions from potential risks.
  • Present challenges and opportunities in technology creation and information system implementation.
  • Explore some trends in the field of Technology and Information Management.

 

 

  • Business Case Application

 

You have noticed that information in your company is not being disseminated across functional groups in a timely manner, let alone making it to their end. Your firm has a secure Intranet system and other forms of communication. Despite this, employees are not getting timely data and instructions especially when changes are being implemented. Using information technology management systems and the like, how can you improve the level of information-sharing in your business units? Who can you turn to in order to maximize opportunities in company communication? What programs are available that can address the lack of timely messaging?  

 

  • Required Readings

 

Bryan, V. Information technology management. Florida Atlantic University, 305-347. Retrieved from http://faculty.wiu.edu/P-Schlag/textbook/Chapter%2014%20-%20Information%20Technology%20Management.pdf

Chapter 13 Managing IT: Enterprise and Global Management. Retrieved from www.utdallas.edu/~dchisam/6204ch13.doc

Introduction to information technology. Retrieved from https://www.slideshare.net/adpafit/introduction-to-information-technology-lecture-1

Module 5 – Technology. Technology management. Retrieved from https://www.scribd.com/doc/34452478/Technology-Management-Lecture-Notes

 

Schwalbe, K. Information technology project management (6th ed.). Retrieved from http://cie-wc.edu/Information-Technology-Project-Management.pdf

 

 

  • Suggested Readings

 

 

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Lawton, G. (2006). Making business intelligence more useful. Computer, 39(9), 14-16. doi: 10.1109/MC.2006.318

 

Lopes, I., & Oliviera, P. (2014, June). Implementation of an information systems security policy: Action research. European Conference on Research Methodology for Business and Management Studies, 244-252. Retrieved from
https://search-proquest-com.contentproxy.phoenix.edu/docview/1546004844?accountid=458

 

Richardson, H., & Kvasny, L. (2006). Critical research in information systems. eISBN: 9781846631504. Emerald Group Publishing Limited.  

 

Stafford, T. F., & Poston, R. (2010). Online security threats and computer user intentions. Computer, 43(1), 58-64. doi: 10.1109/MC.2010.18

 

Yu, F., Chang, C-C., Lu, Y., Shu, J., Gao, Y., Yue, G., & Chen, Z. (2014). Recent advances in information technology. The Scientific World Journal, 2014, 1-6. doi: 10.1155/2014/746479

 

 

  • Required Videos/Tutorials

 

 

Autopedia. (2017, March 3). What is MANAGEMENT INFORMATION SYSTEM? What does MANAGEMENT INFORMATION SYSTEM mean? [Video File]. Retrieved from https://www.youtube.com/watch?v=1YTwuDXy77Y

 

Kroemer, H. (2008, November 13). Technology Management Program UCSB: Creativity/Innovation [Video File]. Retrieved from https://www.youtube.com/watch?v=RsXzOou1-Ls

 

Kumar, R. (2012, November 6). Management information system and its functions [Video File]. Retrieved from https://www.youtube.com/watch?v=qiLXJ0lhN2g

 

Mir, H. (2012, November 28). Information technology (IT) management [Video File]. Retrieved from https://www.youtube.com/watch?v=-UnLBeFRTzs

 

Network Outsource. (2014, March 24). Effective technology management [Video File]. Retrieved from https://www.youtube.com/watch?v=J8r1Hlf3SQg

 

Module 5

Human Capital Management

 

 

  • Objectives/Core Competencies

 

 

5.1 Learn about human capital management.

5.2 Describe the role of human capital in business success.

5.3 Analyze employee support and participation to operational strategies.

5.4 Understand how hiring and scheduling can impact operational effectiveness.

5.5. Explore employee performance and satisfaction matrices.

 

 

  • Personal Notes

 

 

As a practical suggestion, summarize your thoughts, impressions, and new knowledge gained or experiences revisited pertaining to this course content for this module. Examine how you can apply them to your own place of work, agency, or organization. Keep this log for any future use. Again, this is not a required activity.  

 

 

  • Human Capital Management Overview

 

 

Now we have come to one of the most important components of business attributes – human capital or simply worded, “people”. There is a saying that robots can replace employees; however when we stop and think about it, the comparison is unfair and unjustified. Human capital affects every function of a business – starting from hiring the best qualified applicants, providing job training and development, scheduling and staffing, engagement and advocacy, promotion and upward career ladder mobility, to low morale and sadly attrition. As an illustration, Chaparral Steel recognizes that all employees from senior managers to front-line workers should be part of the search for technological improvements (Leonard-Barton, 1992).

 

In the discussion of human capital management, we come across concepts, such as job design, work standards, performance measurements, scheduling and staffing, employee engagement and coping, etc. all of which a strategic manager can capitalize on to improve overall business achievements. For example, sound scheduling can create good response time and workforce stability (Krajewski & Ritzman, 2002). Research has borne that productive employees are those who understand and respond to the company mission, vision, goals and objectives. A good job design not only speaks to the breadth of talent, skills, and abilities but more so to the responsiveness a worker puts into the assigned tasks.

 

One obvious mistake that operations managers make is ignoring employee contribution and value. Recognition goes a long way in employee retention and citizenship. Therefore it is crucial that managers always consider how a job process change or requirement can affect the workers, both structurally and personally. Consistent and factual communication can allay fears and anxiety in times of job uncertainty. This video shows how employee involvement can make or break a company (https://www.youtube.com/watch?v=dSfDROxCuxI). A good manager is a leader of people, process, product, and price. Engaging employees needs strategic leadership for coping readiness in times of organizational change (Lim, 2008). This is where the operations manager’s soft skill set becomes a leveraging tool to pacify worker dissatisfaction.

 

Employee Attrition

 

When dealing with human resource, operations managers need to consider the rate of attrition in the workplace. Several factors affect employee movement out of the company. A few explanations are more outside opportunities, job dissatisfaction, safety concerns, workplace violence, lack of career mobility, etc. Company downsizing could result in layoffs, early retirements, forced termination, and the like. No one wants to be involved in such negative human resource activities; however keep in mind that the proper amount of employees with the right attitude can be a differentiating factor for the business.

 

To demonstrate the rate of attrition, let us say that Omega Company is experiencing a downturn in sales performance. With paltry revenue forecast, senior management has decided to offer early retirement to 50 employees, force 5 low performers out the door, and layoff 25 nonperforming members. In addition, 12 employees have decided to quit their jobs. If Omega Company has a workforce of 1000, what is the attrition rate for the downsizing effort?

 

Attrition rate = (Employees out / Total workforce) x 100%

 

In this scenario, we can add up all the employees who will be off the roster after the downsizing plan. Therefore, the attrition rate = (50 + 5 + 25 + 12) / 1000 = 9.2%

 

When translated into costs, management has to decide if such amount is enough to offset the decline in sales. Note that an attrition rate of more than 10% may be dangerous in the short term perspective.

 

Human capital drives business trajectory. More and more, agile workers are being sought after. Employee retention is vital for achieving the vision of any company. Those with good coping skills can ride the job threats and changes ahead. For projects, process redesign, organizational change, or job expectations to succeed, operations managers must keep employees involved in the process. As companies continue to face downsizing, resizing, reengineering, merging and acquisition, and the like in response to competitive threats, the value that employees bring to the table must not be ignored.

________________________________________________________________________

Leonard-Barton, D. (1992, Fall). The factory as a learning laboratory. Sloan Management Review, 23.38. Retrieved from Operations Management – Strategies and Analysis.

Lim, J. (2008). Effects of multivariate antecedents factors on coping readiness for organizational change [Doctoral Dissertation). Retrieved from Proquest database.

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Summary

 

The course Operations Management provides an overview of the many different operations, processes, and tools that today’s operations managers use to do their jobs efficiently and effectively. In the five modules, we learned so much about the nature of operations management, supply-chain network, inventory and material system, information and technology improvements, as well as the importance of human resource development. Make no mistake about it – these are essential components of a thriving business, not all-inclusive yet demanding of attention and focus. Firms that are attuned to the latest innovative operating strategies are at a decided advantage. They can leverage their knowledge, skills, and abilities to exceed customer expectations, reduce overall costs, and improve their business acumen. Trends in operations management continue to evolve with technology and globalization. In a seemingly borderless business environment, we can speculate a changing, mobile, and nimble workforce able to cope readily to complex challenges ahead.  

 

 

  • Optional Learning Exercises

 

 

  • Research and read up on Human Capital Management concepts and principles, such as the following:

 

 

  • Hiring, Scheduling and Staffing.

 

  • Incentive, Compensation, and Promotion.
  • Employee Engagement and Participation.
  • Attrition versus Retention.
  • Coping Readiness.
  • Technology advances in Human Capital management.

 

  • Follow-up Questions

 

  • What is human capital management? How important is it to business success?
  • Research and present a human resource activity profile.
  • Show a typical scheduling activity for an operation. What system(s) are available or in use in your workplace?
  • Explain the advantages of hiring the best people. Give examples of compensation and promotion strategies for retention.
  • Present challenges and opportunities in retaining competent and dedicated workforce.
  • Explore some trends in the field of Human Capital Management.

 

 

  • Business Case Application

 

Employee morale in your unit has been on a decline for many weeks now. You have noticed that your employees do not interact with each other. Collaboration is evidently missing in departmental meetings. Personal issues get in the way of productive work. As a result, absenteeism is on the rise and poor work habits are affecting everyone in the operation. You are now operating below target and soon a few employees are going to quit. Understanding attrition rate and the human dynamic, what operating strategies will you implement to cure this low employee morale scenario? How can you restore employee commitment and loyalty under these circumstances?  

 

  • Required Readings

 

 

Bus301: Human resource management. Retrieved from https://learn.saylor.org/course/bus301

 

Eshna. (2012, May 24). SAP human capital management (HCM). Retrieved from https://www.simplilearn.com/sap-human-capital-management-hcm-rar107-article

 

Human capital management (HCM). Retrieved from http://searchfinancialapplications.techtarget.com/definition/human-capital-management

 

Human capital management – meaning and important concepts. Retrieved from http://managementstudyguide.com/human-capital-management.htm

 

Human capital management – PPP. Retrieved from http://www.powershow.com/view/13c04a-M2Y3Z/Human_Capital_Management_HCM_powerpoint_ppt_presentation

 

 

  • Suggested Readings

 

 

Bartel, A. P., Phibbs, C. S., Beaulieu, N. & Stone, P. (2011, September). Human capital and organizational performance: Evidence from the healthcare sector. National Bureau of Economic Research, 1-50. doi: 10.3386/w17474

 

Ederhof, M. (2011, January). Incentive compensation and promotion-based incentives of mid-level managers: Evidence form a multinational corporation. The Accounting Review, 86(1), 131-153. doi: 10.2308/accr.00000007

 

Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource 21(2), 123-136. doi: 10.1016/j.hrmr.2010.09.004

 

Heimerl, C., & Kolisch, R. (2010, April). Scheduling and staffing multiple projects with a multi-skilled workforce. OR Spectrum, 32(2), 343-368. doi: 10.1007/s00291-009-0169-4

 

Kim, Y. J., & Jee, J-W. (2011, September). Technological change, human capital structure, and multiple growth paths. Japanese Economic Review, 62(3), 305-330. doi: 10.1111/j.1468-5876.2009.00507.x

 

Krajewski, L. J., & Ritzman, L. P. (2002). Operations management – strategy and analysis (5th ed.). Boston, MA: Pearson Publishing.

 

Leonard-Barton, D. (1992, Fall). The factory as a learning laboratory. Sloan Management Review, 23.38. Retrieved from Operations Management – Strategies and Analysis.

 

Lim, J. (2008). Effects of multivariate antecedent factors on coping readiness for organizational change (Doctoral Dissertation). Retrieved from http://www.proquest.com

 

Silpa, N. (2015, December). A study of reasons of attrition and strategies for employee retention. International Journal of Engineering Research and Applications, 5(12), 59-63. eissn: 2248-9622

 

 

  • Required Videos/Tutorials

 

 

Caruso, S. J. (2012, July 30). What is human resource development? [Video File]. Retrieved from https://www.youtube.com/watch?v=9oONwRBRvj4

 

Coping with job loss [Video File]. Retrieved from https://www.youtube.com/watch?v=988hezLBwGs

 

Jack Welch Management Institute. (2013, January 25). Jack Welch: The role of HR [Video File]. Retrieved from https://www.youtube.com/watch?v=rByDmC0SqtM

 

Trost, A. (2013, September 27). Human resource management lecture part 1 – Introduction [Video File]. Retrieved from https://www.youtube.com/watch?v=c8_avX9miag

 

Why Employee Engagement Matters [Video File]. Retrieved from https://www.youtube.com/watch?v=dSfDROxCuxI

 

 

  • Final Exam

 

 

Students will take the Final Exam to assess overall course learning. Please review the instructions under the Course Assessment section of this syllabus.

 

— End of Syllabus —

Lessons