International Academy

of Management and Economics

Noli Santos International Tower, 1061 Metropolitan Ave. San Antonio Village
Makati City, Philippines

MASTER IN BUSINESS ADMINISTRATION

EMBA PROGRAM

COURSE SYLLABUS

BUS 502: Production and Operations Management

Professor: Pedrito A. Salvador

E-mail Address: pedsalvador@yahoo.com
Cell No. 63 09173882477
International Academy of Management and Economics
Noli Santos International Tower, 1061 Metropolitan Ave. San Antonio Village
Makati City, Philippines

EMBA POM SYLLABUS

Course Name: Production and Operations Management

Professor: Pedrito A. Salvador
E-mail Address: pedsalvador@yahoo.com
Cell No. 63 09173882477

Course Description:
The operations function is the heart of any business and as such is central
to the success or failure of organizations. This course therefore aims to provide
students with a valuable opportunity to gain an understanding of the theory and
practice of organization’s management and to explore the increasingly vital role
technology and innovation has to play in the operations management of the firm.
Operations management is concerned with how organizations produce
goods and services. Since the production of goods and services is the reason why
organization exists, it is clear that the effective and efficient management of
operations is a concern for all managers. This is regardless of the size or sector
location of their organization. Managers should be able to create and maintain the
necessary conditions for productive work, often in a climate of resource
constraints and increasingly in a global context.

Course Objectives:
After completing this course, students will be expected to be able to:

Understand the theory and practice of operations management in both

manufacturing and services.

Develop a critical understanding of production technology and its significance for

the innovating firm.

Develop through discussion and debate, reasoning skills applicable to a range of

technological and operational issues as provided in the assigned group case
studies.

Understand the social basis of production and changes in the division of labor.
Appreciate information technology and its significance in the organization of
production.
Key Students Skills:
Communication
Working with others
Self Discipline
Improving own learning and performance
Information Technology Skills
Numerical and Problem Solving

Course Teaching and Learning Methods:

Home Study
Lecture
Class Discussion
Group/Student Case Presentation
Video Clip Showing
Special Project Research

Course Resources:
Textbook: Operations Management 8/e
Principles of Operations Management 6/e
Jay Heizer and Barry Render

Reference Books and Authors:

Operations Management
1 .Aquilano, Chase Jacobs, 10/e
2. Stevenson, 10/e
3. James Evans, 5/e
4. Krajewski/Ritzman, 6/e
5. Brown et al 1/e

Reference Web Sites: www.mhhe.com/pom

: www.poms.org

Prerequisites: OM, HRM, Managerial Statistics

Student Performance Measurement:
Criteria % Distribution Grading

Attendance/Punctuality 15 97-100…1.0
Student Case Analysis 15 94-96…..1.25
Group/Student Case Presentation 20 91-93…..1.5
Case Discussion/Participation 25 88-90…. 1.75
Special Project 25 85-87…. 2.0
< 85…..5.0
Total: 100%

Course Guidelines:

1. Each student shall work on his own through home study of the POM topics as
specified on the succeeding course schedule. Additional readings from other
reference books and magazines or internet resources are highly recommended.
This is for the student to master the detailed meanings of concepts and
principles of POM

2. Assigned group/student shall work and present to the class the theory used and
case analysis of the case studies provided in the syllabus. A copy of the case
analysis and solution shall be submitted before the presentation. The Kepner
and Tregoe method of case analysis and solution recommendation shall be
used. Use of innovative PowerPoint presentation is encouraged.

3. Each non-presenting member of the class shall submit three-page theoretical

summary of assigned topic and his own analysis of the assigned group case
using also the KT method. It is expected that non-presenters shall use this
report to challenge the analysis and solution of the assigned group. This is the
basis of class participation. No late case study report shall be accepted.

4. Each student shall be required to undertake a special project during the course
process. Special project aims to study and analyze business problems arising
from the operation of an actual local service or a manufacturing company. The
student shall submit a complete analysis and recommendation of the
resolution of the problem.

Use of KT format and inclusion of company introduction and background

that leads to the formation of the major problem must be included. The
problem might be related to one or more of the topics that we have studied
and discussed from the course and shall be submitted at the end of the session.

5. Highest possible grade for any late special project report shall be 2.0.
 Course Activities and Schedule:
Session Activities Teaching Method Responsibility

1.0 Class Organization Discussion Professor

Course Definition
Project Definition
Student Performance
Guidelines
Course Activities/Schedule
Case Analysis Format
Case Study Method

Operations Environment and Lecture Professor

Productivity

2.0 Operations Strategy for Lecture Professor

Competitive Advantage/
Operations in a Global Environment

Video Clip: 3L Mfg. Company

3.0 Project Management

Case Study: Denver International Airport Class Discussion Group 1

Describes the events surrounding the construction of the BAE baggage-handling system at the
Denver International Airport. It looks specifically at project management, including decisions
regarding budget, scheduling, and the overall management structure. Also examines the
airport's attempt to work with a great number of outside contractors, including BAE, and
coordinate them into a productive whole, while under considerable political pressures.
Approaches the project from the point of view of BAE's management, which struggles to fulfill its
contract, work well with project management and other contractors, and deal with supply,
scheduling, and engineering difficulties.

4.0 Forecasting
Case Study: The Launch of Hong Kong VOD Class Discussion Group 2

In March 1998, Hong Kong Telecom's Interactive Multimedia Services (IMS) unit launched the
world's first commercial Video-on-Demand (VOD) system. Worldwide interest resulted from
the implementation of the world's first commercial VOD system – an expensive high-
technology service for which consumer demand had yet to be proven – and from the launching of
the first generation of interactive television (iTV) systems. In taking the new technology to market,
how should IMS generate demand for the service, and how could it forecast technological adoption
rates? What was the role of the government in regulating the new business environment? And
what issues were associated with such large and long-term capital investments? This case asks
students to examine the forecasting behind a new technology, discuss how to redefine business
scope in a changing environment, and critically assess the concept of a "killer application"
strategy in providing new IT services.
 5.0 ` Managing Quality/Statistical Process Control

Case Study: General Electric Class Discussion Group 3

Jack Welch and the Corporate Executive Council of GE are faced with a decision about whether
and how to implement a six sigma quality improvement effort in the context of many other
initiatives already undertaken at GE in recent years.

Links: www.asq.org
www.juran.com
www.deming.com

Video Clip: Motorola Six Sigma

6.0 Process Strategy and Capacity Planning

Case Study: Align Technology Inc. Class Discussion Group 4

Align Technology is a four-year-old medical products company that has invented a new
product that requires new manufacturing processes. Demand for the new product has
grown more slowly than initial forecasts predicted, and the cost structure is preventing the
company from becoming profitable. The manufacturing process involves six different
operations, located in California, Pakistan, and Mexico. The first dilemma requires downsizing
the capacity until the demand grows. Increasing capacity in the future requires consideration of
the time lags, costs, and incremental units of added capacity inherent in each of the six
processes. Given the uncertainty of accurate sales forecasts as the company carries out new
marketing initiatives, the manufacturing organization has been challenged to create a
capacity plan to meet demand while lowering its fixed costs. Teaching Purpose: Analyzing and
planning production capacity for a multiprocess and multilocation operation.

7.0 Location/Layout Strategy

Case Study: Toshiba Ome Works. Class Discussion Group 1

In 1995, Toshiba was the market leader in portable computer sales worldwide. This case
describes the assembly of portable notebook computers in Toshiba's Ome factory in Ome,
Japan, providing insights into some of the reasons for Toshiba's success. In addition to describing
production techniques such as dynamic line balancing, this case probes the nature of the
Japanese workforce and the unique problems faced by Japanese businesses. Teaches best
practices: design of efficient assembly operations, design of worker tasks; and analysis: belt driven
assembly, cycle time, idle time, line balancing.

8.0 Supply- Chain Management

Case Study: Electronic Company Distributors Class Discussion Group 2
Video Clip: Macola Software

Discusses the role of distribution intermediaries in the electronic components industry, and
describes operations at two of these distributors. Serves as a vehicle to discuss the functions
provided by distributors in the channel. Lets students understand the differences between these
distributors and discuss how each of them is going to deal with issues like consolidation and
the rapid growth of the Internet. Also introduces students to the complexity of managing
operations at a small distributor.

9.0 Inventory Management

Case Study: Blanchard Importing . Class Discussion Group 3
and Distributing Co. Inc

Illustrates the two main types of errors resulting from use of the economic order quantity (EOQ)
as a tool in production scheduling. Designed to permit class discussion to begin with a
consideration of one common type of mistake, errors in calculation of the EOQ volume resulting
from use of incorrect data for the input parameters of the formula. The analysis can then
shift to a more general discussion of the second type of error, the misapplication of EOQ and re-
order point (ROP) techniques to a given system. Class discussion can conclude with student
recommendations of alternative techniques that may be better suited to the Blanchard operation
than the EOQ/ROP method.

10.0 Material Requirements Planning/ERP

Case Study: Tekronix, Inc. Class Discussion Group 4

Enterprise Resource Planning (ERP) solution in its three global business divisions. This case tells
the story of three implementations, each with its own character and requirements. Tektronix
managers needed to synchronize the requirements of each division with the company's overall need
to standardize business practices and its desire to adhere to a common business model across the
enterprise. Details the difficulty of major business change in a mature business and technical
environment.

11.0 Special Project Presentation Class discussion 2 Groups/

2 Students
 Case Method of Instruction
General Objectives

1.0 Case method of study is a very effective method in improving an

individual’s ability to analyze a situation, establish premises,
arrive at valid conclusions, decide on courses of action and
visualize consequences and results.

2.0 The method is intended to expose students to business problems in

a real setting. It enhances the dimensions of written and oral
communications, judgments, stress tolerance, human relations,
leadership, effective presentation and defense strategies.

3.0 It teaches students to recognize the underlying elements inherent

in any business dilemma and to formulate solution in spite of the
built-in limitations and contradiction.

4.0 It inevitably brings the priorities and concerns of several

disciplines into focus. It develops managers with generalist
perspectives through analytical and integrative thinking.

5.0 The method gives challenging exercises in personal interaction,

becoming a training ground for students to develop the techniques
of cooperative teamwork so essential to success in the corporate
world.

6.0 It gives enough and adequate experience to students regarding

ability to debate, to respond smoothly under pressure and
criticisms, unlimited sharing of perceptions, impressions and
work-related experiences with other students, that are all vital to
succeed in the world of business ,economic, political, military and
government bureaucracy.

Finally, the purpose of case analysis is to teach students how to think,

to exercise his power of analysis, logic, and his decision-making
ability.
 Case Presentation Guidelines
Kepner and Tregoe Model

1.0 All presentation will be done in a manner that will simulate actual
business presentation, i.e. use of overhead projector, in-focus
projector, laptop, video showing etc.
2.0 Time allotment
Presentation: Theory Used - 45 min.
Case Analysis - 45 min.
Break - 10 min.
Class Discussion - 40 min.
Recapitulation - 40 min.

3.0 Case Analysis Format

I. Point of View
Viewpoint shall be a decision maker. He can be the
Production Manager, Operations Director or VP
Manufacturing and Chief Operating Officer.
Management Consultant, expert in operations can also
assume the point of view.

II. Definition of Problem

Major problem only, not minor or symptoms

III. Statement of Objectives

Must - Objectives that are measurable in terms of
time, cost, efficiency, and productivity.
Wants - Objectives that are qualitative in nature.

IV. Areas of Consideration

All factors that causes or leads to the formation of
problem and its effects. Organization, financial, cost and
market characteristics, technology, product design,
production systems, work environment, logistics systems
etc. Statement of SWOT can also be considered.
 V. Alternative Courses of Action

1.0 Alternatives that is mutually exclusive or

independent to one another.
2.0 Each alternative shall be a possible solution to
the problem, workable and can be
implemented.
3.0 Each alternative is strengthened by advantages
and weakened by disadvantages.
4.0 Refrain from status quo.

VI. Recommendation

Alternative that characterizes factors that will

resolve the problem. This means, it has the highest
number of advantages and lowest number of
disadvantages.

VII. Plan of Action

These are activities needed to implement and
strengthens the chosen alternative measured by time and
who is responsible.

VIII. Potential Problem Analysis

Anticipated problems are assessed as a result or
due to an effect of the action plans generated.

IX. Fallback Analysis

Corrective Measures to arrest potential problems.

3.0 Respect the assigned group during presentation of their report and
analysis.
4.0 Everyone is encouraged to react and challenge the presenting
group pertaining to the analysis and solutions they have generated.
5.0 Avoid non-relevant questions during question and answer portion.
6.0 Every student is a professional and possesses an ethical attitude.

End
Pedrito A. Salvador
Professional Background
Prof. Ped Salvador is presently connected with International Academy of
Management and Economics as a Professorial Lecturer, teaching Operations
Management. Project Management, Business Calculus, Management Science,
Multicultural Management, Global Management and Applied Statistics .He was also
been a part time lecturer at DLSU- Dasmarinas, Cavite and Jose Rizal University
handling industrial management and operations management subjects.
He also works as an operations consultant and trainer for various clients in
CALABARZON specializing in quality, work efficiency, cost reduction and productivity
improvement. He also served as a member of Board of Governor of Philippine Council of
Management and committee chair of professional development.

He has with him wealth of experience from more than twenty years exposure in
manufacturing operations. He served as a senior manager of production ,quality,
logistics, maintenance, and engineering from noted electronics companies in the like of
Magnetron Technology Corp.(subsidiary of Electronic Gruffen of Sweden), Philake
Metal Corp.(Taiwanese Aluminum Heat Sink Co.),Amkor Anam( South
Korean/American Semiconductor Co.) and Integrated Microelectronics Inc.( Filipino-
Ayala owned Semiconductor Co.).

He has been exposed and acquired various training in the different lines of
operations management specifically in the field of Manufacturing Engineering, Project
Management, IT/ Kaizen/5S,Statistical Process Control, Total Quality Management,
Total Productive Maintenance, Supply Chain Management, ISO 9000/14000, Design of
Experiments, Six Sigma Quality ,Forecasting and Inventory Management. He was also
able to conduct a lot of customer visits, supplier quality audits, attended Electronics trade
fairs and conferences from Vallingby, Sweden; Tallinn, Estonia; Munich, Geislingen,
Reutlingen,West Germany; Tokyo Japan, Hong Kong, Singapore and Kaohsiung,
Taiwan.

Professor Ped Salvador finished his B.S. Chemical Engineering from MIT,
Manila, and Master in Business Administration from PCU, Manila and Ph.D. in
Management from International University Foundation Inc. (currently known today as
International Academy of Management and Economics, IAME) Makati City, Philippines.