SCHOOL OF BUSINESS AND MANAGEMENT

MM5004

(Operations Management)
GENERAL MANAGEMENT (GM 3)

August-November 2016

MASTER OF BUSINESS ADMINISTRATION

INSTITUT TEKNOLOGI BANDUNG
http://www.sbm.itb.ac.id/mba

Internationally accredited by
1

CONTENTS
Page
Facilitator Profile

....... 3

Course Description

....... 3

Expected Learning Outcome ....... 4

Course Outline

....... 5

Learning Guidance

....... 6

Prerequisite
....... 6
Learning Method
....... 6
Presentation
....... 8
Attendance
....... 8
Group Project
....... 9
Participation
....... 9
Mid-Term Test and Final Examination .... 10
Grading Policy

....... 10

Reading Materials

....... 11

Course Schedule

....... 11

List of Cases

....... 20

FACILITATOR PROFILES
Ir. Adirizal Nizar, MBA (AN)
E-mail: adirizal.nizar@sbm-itb.ac.id
Phone: 08111772841
Adirizal received his Bachelor degree in Industrial Engineering at Bandung Institute of
Technology (ITB) and holds an MBA degree from University Southern of California (USC). He
was theTechnical Director of PT Toyota-Astra Motor, a leading automotive company in
Indonesia. He has more than 30 years of managerial experience in general and
manufacturing management, specializing in production control, quality control, purchasing,
engineering, and product development.
D. Ir. Aries F Firman, M.Sc., MBA (AF)
E-mail: aries.firman@sbm-itb.ac.id
Phone: 08158767467
Aries received his bachelor degree majoring in Civil Engineering from Institute of Technology
Bandung. He obtained master degree for MBA at University of Luton (U.K.) and doctor degree
from Curtin University, Perth, Australia.

COURSE DESCRIPTION
Operations management involves planning and controlling the processes used to produce
the goods and services provided by an organization. In essence, it is the management of all
activities related to doing the actual work of the organization. Managing these processes can
be quite challenging they are often very complex, and can involve large numbers of people
and facilities, huge volumes of materials and great distances. Managed well, an
organizations operations can be a key source of competitive advantage. They can play a
critical role in facilitating an organizations marketing strategy, and they can enable an
organization to deliver its products or services with high quality at low cost. Managed poorly,
operations can be a significant contributor to disappointing results. As a result, a
fundamental understanding of operations management is important for all managers within
an organization.

EXPECTED LEARNING OUTCOMES

Specific objectives of the course are to:
a. Introduce you to the functional area of operations and to increase your awareness of
how a firms operations interface with the other functional areas of the organization.
b. Familiarize you with the various issues and problems that traditionally arise in the
management of operations within both manufacturing and service organizations.
c. Acquaint you with some of the terminology, modeling, and methodologies that often
arise in the handling and resolution of these issues and problems.
After completing the course, participants are expected to:
1. Put operations management system in perspective by recognizing the inputs,
transformation process, and desired outputs of a system.
2. Know how effective management of operations contributes to productivity
improvement.
3. Know various functional areas of an organization and their critical integrated role in
the performance of the organization.
4. Know the differences between manufacturing and service organizations.
5. Know the concept of competitive priorities and the primary ways business
organizations compete globally.
6. Know the differences between various production systems in terms of production
volume and customization.
7. Know the philosophical and statistical elements of total quality management (TQM)
as well as the concepts of six sigma, continuous improvement, and business process
reengineering.
8. Know the critical role of supply chain management in the competitiveness of the
organizations.
9. Know the concept of inventory management and the differences between push and
pull systems.
10. Be able to recognize operations management problems in practical settings such as
real life operations problems and case studies.
11. Know how to set-up and use selected operations management techniques such as,
break-even analysis, decision trees, project management (PERT/CPM), layout,
queuing models, quality improvement tools, statistical control charts, and inventory
management models.

COURSE OUTLINE
The course consists of the following modules:
1. Strategy: This module addresses the issues of operations strategy and
competitiveness and how the field of operations management can provide direction in
gaining and maintaining competitive advantage. Sessions include: introduction to the
field, operations and supply strategy, product design.
2. Supply Chain Management: This module introduces the latest concepts of a supply
chain strategy. Such ideas as of outsourcing, postponement, and product outsourcing
are discussed. Decisions related to logistics, locations, and concept connections are
very important part in supply chain management.
3. Logistics and Distribution: This module is a high-level view of the latest concepts of
global supply chain strategy. Logistics, distribution, and transportation are critical to
success in running a global supply chain strategy.
4. Product and Service: Product development process, cost planning, value
analysis/value engineering, and measuring product development performance.
5. Process Control: Among the most important decisions made by operations managers
are those involving the design and improvement of the process for producing goods
and services. These decisions include choice of process, analysis of flows through
operations, and the associated job design in operations. This module is about
designing, improving efficient processes and quality.
While quality management is cross-functional in nature and involves the entire
organization, operation has a special responsibility to produce a quality products and
services for the customer. This requires the cooperation of the entire organization and
careful attention to management.
6. Project Management: Management often involves juggling a portfolio of projects.
There are many different types of projects ranging from the development of totally
new products, revisions to old products, new marketing plans, and a vast array of
projects for better serving customers and reducing cost. This module discusses the
technical aspects of project scheduling, the people skills related to motivation, conflict
resolution as key decision points occur in the project, and leading a team work in a
project.

7. Scheduling: Scheduling decisions allocate available capacity or resources (equipment,

labor, and space) to jobs, activities, tasks, or customers over time. Since scheduling is
an allocation decision, it uses the resources made available by facilities decisions and
aggregate planning.
8. Lean Operation: This module discusses the just in-in-time (JIT) philosophy along with
its extension to service firms and lean thinking. JIT is called a philosophy because it
goes far beyond inventory control and encompasses the entire system of production.
JIT is an approach that seeks to eliminate all sources of waste in production activities
by producing the right part at the right place at the right time. Lean thinking is an
extension of JIT beyond production to design, distribution, supply chain, and services.
It is important to understand JIT before discussing lean thinking.
9. Inventory Management: This module is important to understanding the purpose of
inventory such as inventory costs, independent versus dependent demand, inventory
control systems to control optimal stock and inventory cost are discussed.
10. Operation Planning: Running a business requires a great planning system. How many
people should we hire to handle rush business session? How much inventory do we
need? What should we produce today? Therefore, planning and controlling is the last
and most constrained decision in the hierarchy of business decisions. Planning seeks
to achieve several conflicting objectives: high efficiency, low inventories, and good
customer service. This module focuses on problem solving in planning and controlling
that can be applied to many business areas. To correctly treat the topic, the approach
is, - first defining some basic issues about firms purpose, goals, and performance
measures and then dealing with planning, providing buffer inventories, the influence
of quality, and the interactions with marketing, and accounting. Quality is one of the
four key objectives of operations, along with cost, flexibility, and delivery.

LEARNING GUIDANCE
PREREQUISITES
No prerequisites, aside from management experience, are required for this course.

LEARNING METHOD
The case method is used throughout the subject. Class members are encourages to
incorporate concepts from assigned readings into their analysis of the case. Normally
two teams will be assigned to present their findings for each case. All class members

are expected to have read each case and reflected upon the assigned questions,
whether or not their team has been assigned the case. Syndicates should submit a
brief written summary of their analysis and recommendations to the facilitator at
the time case will be discussed in the Power Point format, with two slides printed
on each page.
Comments on case analysis:
1.

2.

3.

4.

5.

Approach. It is useful to begin a case analysis with a quick reading to gain an

overall impression of scope and of the subject matter. The next reading should
focus on absorbing details and facts in the case. Then development of a points
outline following the four component structure is often useful, particularly as it
reveals important issues and types of appropriate analysis. Various kinds of
analysis should then be undertaken.
Assumptions. If analysis cannot proceed because the assumptions on which it is
based are not explicitly given in the case, it is often useful to create
assumptions and state them explicitly. This can unblock analysis and lead to
useful insights. Even if your assumptions are wrong, a good analysis which
flows from them is better than no analysis at all! Also, be prepared to challenge
executive opinions and beliefs about the nature of the problem given in the
case and/or data that has been hastily compiled or based on poor research.
Integration. Effective integration means that the alternatives should all be
clearly related to the identified problems, the issues should be critical to the
alternatives chosen, and the conclusion should flow logically from the analysis.
If alternatives are specified but not evaluated, the analysis is incomplete.
Alternatives. Try to select a set of alternatives that are relatively unique or
allow distinctions in strategy. Alternatives which are too similar often lead to
overlooking some important detail or restricting analysis unnecessarily.
Dos and Donts. You may find the following list of 12 Dos and Donts in case
analysis useful:
a. Be completed.
b. Avoid rehashing case facts.
c. Make reasonable assumptions.
d. Dont confuse symptoms with problems
e. Dont confuse opportunities with taking action.
f. Deal with objectives realistically.
g. Recognize alternatives.
h. Dont be inflexible.
i. Discuss the pros and cons of each alternative.
j. Use financial and other quantitative information.
k. Reach a clear decision.
l. Make good use of evidence developed in your analysis.

Case analysis and discussion: Successful case analysis requires fresh perspectives and
no prior knowledge of how the case was "solved" by the company or "analyzed" by
other experts. It is fine (in fact, it is a good idea) to discuss case content with other

students in the same course section prior to coming to class; but you should not seek
inside information on cases (e.g., through the library). You should not discuss cases
with students who have taken the course in the past. Likewise, you should not reveal
the outcomes of the case or case discussion with students who will encounter the
case in the future (e.g., other sections who have not yet discussed the case).
_____________________________________________________________________

PRESENTATION
Syndicates will be assigned to make presentations of their case analysis to the
entire class randomly at the time of case will be discussed. Therefore all syndicates
have to prepare for it appropriately.
The audience for the case presentations are the other members of the class. Please
address your talk to them. The syndicates may make the presentation as a team, or
assign a spokesperson to each case. In any case the syndicates should ensure that all
team members have any equal opprotunity to participate in the presentations.
The criteria for measuring the effectiveness of presentations include:
Is the comment accurate? Reflecting case facts but not repeating them?
Does the comment add to our understanding of the problem situation or
is it frivolous, an attempt to get air time?
Is the comment timely and linked to the comments of others?
Is the comment action oriented, or simply a descriptive statement?
Does the comment move the discussion along by giving a new
perspective?
Does the comment reflect a concern for maintaining a constructive and
comfortable classroom atmosphere?
Is the comment clear and concise or obscure and rambling?
Some specific case questions are usually provided to help you to prepare the case
reports, but your own ideas and creativity are paramount. Keep the report concise.
There is no need to summarise the case materials. Simply get to the main points and
provide your analysis and/or recommendations with supporting justification.

ATTENDANCE
Attendance at each class session is expected. If at some point during the term you
find that you cannot attend a particular session, you are responsible for obtaining
any handouts, submitting any assignments, and mastering the material for that
session. Missing a session necessarily impacts your class participation grade.

GROUP PROJECT
Each syndicate may conduct an investigation and analysis of operations strategy in a
local organisation.
Based on some actual work experiences of some members, or it can be based on a
study of an operation management, you select an operation where your group will be
allowed to independently collect data relevant to the object of visit. Limit your scope
of your investigation so that it can be accomplished, analysed and reported within
scheduled period.
A project report is then due on the last class of the semester and will be used as a
final exam grading. The report should include, but not limited to, the following:
1. Organisation Profile
2. A brief summary of the operation under study. It would be more
communicative if you describe this part in the flow chart format.
3. The major challenges/ problems in managing this specific operations.
4. A critical assesment of the operations/processes under study. How are the
current operations being managed to meet certain aspects in the strategy
map perspectives? What are the important competitive priorities? What the
management has done and is doing to deliver this performance? Are they
successful? Outline any existing problems in the operations and identify the
potential causes of these problems. What strategy you choose to improve the
situation?why and what be the potential impact? Are there any potential
difficulties in implementation?
5. Overall, what have you learned in this project?
Each syndicates report will be graded for its professionalism, in addition to its
content.it must be clear, concise and well organised. All reports must typewritten in
double space or presented in Word Processor format. Provide title page with the
report tittle with full names of each each team members, and include a one page
abstract summarising the project. Make good use of exhibits such as tables and
figures to support your analysis, when appropriate.The reports should be written in
English and no more than 30 pages.

PARTICIPATION
Active participation is expected throughout the entire class and students should
make thoughtful contributions to the discussion. Please note that frequency (i.e.
quantity) of contributions in class is not a key criterion for effective class
participation. The classroom should be considered a laobarory in which the student

can test his/her ability to convince peers of the correctness of ones approach to
complex problems and ones ability to achieve the desired results by using that
approach. Criteria that are yseful in measuring effective class participation include:
1. Is the participant a good listener?
2. Are the points that are made relevant to the discussion? Are they linked to
the comments of others?
3. Do comments show evidence of incorporating the concepts from readings
into the analysis of the case?
4. Is there a willingness to test new ideas, or are all comments safe? (safe is
defined as simply repeating case facts without analysis and conclusions).
5. Do comments clarify or build upon the important aspects of earlier comments
and lead to a clearer statement of the concepts being covered and the
problems being addressed?

MID-TERM TEST AND FINAL EXAMINATION

The mid-term test and final examination will be in class according to the schedule
issued by the program. The work should be completed on 3 hours. Plagiarism or using
someone else to complete this exam are forbidden.

GRADING POLICY
Grading of this course is based on whether or not participants performance meets the
module standards for completion and proficiency in the subject materials.
Your final grade will be weighted as follows:
Aspect
Attendance and Participation
Group Project
Mid-term Test
Final Examinantion

%
40%
20%
20%
20%

Description
Individual grade by facilitator
Team grade by facilitator
Individual grade by facilitator
Individual grade by facilitator

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READING MATERIALS
Required Text Books (pocket books):
Operations and Supply Chain Management (13th edition 2011) by
F. Robert Jacobs, and Richard B. Chase (JC)
Reference books and recommended reading:
Designing and Managing the Supply Chain (3rd edition 2008) by David SimchiLevi, Philip Kaminsky, Edith Simchi-Levi (SKS)
The Toyota Way, by Jeffrey Liker
Supplemental texts and helpful websites (Data and Internet):
HBS Toolkit - Basic Operations Self-Instructional Workbook
(http://hbswk.hbs.edu/archive/1460.html)
Production and Operations Management Society (www.poms.org)
Supply Chain and Operations Management Glossary
(business.tepper.cmu.edu/files/supplychainandoperationsmanagementglossary.p
df)
Operations Management Glossary
(webuser.bus.umich.edu/Organizations/rpa/GlossaryMay02.pdf)
Operations Management (www.managementhelp.org/ops_mgnt/ops_mgnt.htm)
Process Mapping
(http://csob.berry.edu/faculty/jgrout/processmapping/index.html)
Open Online Courses: Process Improvement
(http://gunston.gmu.edu/healthscience/)

COURSE SCHEDULE
Course Code
MM5004

Credit
Hours
3 SKS

Course Title
Module 1:
Monday, 22 Aug. 2016
08.00-09.30

GENERAL MANAGEMENTMBA-3, 2016

OPERATION MANAGEMENT
STRATEGY
Session 1: Adirizal Nizar
1. Topic: Operations and Supply Chain Management
2. Issues Covered: Introduction to the field, Operation
and Supply Management, Historical Development
3. Reading: JC, Ch.1 (p.38)
4. Activity: Lecturing and discussion

11

5. Guiding questions for discussion:

a. What factors account for the resurgence of interest
in OM today?
b. What is operation and supply strategy?
c. How to evaluate operation performance?
09.45-11.15

Session 2 (Case): Adirizal Nizar

1 Topic: TOYOTA AVANZA, The Rollout
2 Issues covered: The identification of a market
opportunity in multipurpose vehicle 4X2 segment in
Indonesia. Toyota Astra Motor had to capture the
customers expectation in order to develop a new
vehicle were directed to represent concept of advanced
& modern styling, fun to drive & ride, economical,
multipurpose, and minivan body
3 Objective: To learn market and customer expectation
analysis in order to develop new product Avanza.
4 Activity: Lecturing and discussion.
5 Case: IBCC, Case No. 003-03-07-07

11.15 12.45

Session 3: Adirizal Nizar

1. Topic: Strategy and Sustainability
2. Issues Covered: How to setting broad policies and plans
for using the resources of a firm to best support its long
term competitive strategy. A firms operations and
supply strategy is comprehensive through its integration
with corporate strategy.
3. Reading: JC, Ch.2 (p.56)
4. Activity: Lecturing and discussion

Module 2:
Monday, 29 Aug. 2016
08.00-09.30

SUPPLY CHAIN MANAGEMENT

Session 4: Adirizal Nizar
1. Topic: Introduction Supply Chain Management
2. Issues Covered: Definition of SCM, Key observation,
Development of chain, Global SCM, Uncertainty & Risk
Factors, Evolution of SCM, Complexity of SCM.
3. Reading: SKS, Ch.1. (p.1)
4. Activity: Lecturing and discussions

12

09.45-11.15

Session 5 (Case): Adirizal Nizar

11.15-12.45

1. Topic: Crocs: Revolutionizing an Industry's Supply Chain

Model for Competitive Advantage
2. Description: Discusses the astounding growth of Crocs,
Inc., a manufacturer of plastic shoes, from 2003 through
early 2007. Much of the company's growth was made
possible by a highly flexible supply chain which enabled
Crocs to build additional product within the selling
season. The normal model used within the fashion
industry was to take orders well in advance of each
selling season and produce to those orders, with
relatively little additional production. If demand was far
in excess of this production, there would be stock outs
and the company would lose the ability to capture
revenue for that season. The product might, or might
not, be in fashion the following year, when production
would again be based on pre-season orders.
Crocs' ability to build additional shoes within the season
enabled it to take advantage of strong customer
demand, resulting in the company filling in-season
orders totaling many times that of the initial pre-booked
orders.
3. Objective: To illustrate use of supply chain management
as a central factor in a company's strategy, and examine
the uses of in-sourcing and out-sourcing and the factors
involved in constructing a flexible supply chain to
address a global market.
4. Case: Crocs: Revolutionizing an Industry's Supply Chain
Model for Competitive Advantage[Stanford University
Case No. GS57]
5. Activity: Group and Class Discussion
6. Guiding questions for discussion:
a. What are Crocs core competencies?
b. How do they exploit these competencies in the
future?
c. How should Crocs plan its production an inventory?
Session 6: Adirizal Nizar
1. Topic: Global Logistics and Risk Management
2. Issues Covered: Highlights the changing nature of
resources and problems facing supply chain design, and
need for supply chains to continually evolve. As market
condition, customer bases, supply sources, technology,
and competitive environment change, a supply chain

13

needs to evolve itself to meet the new challenges

3. Objective: To foster an understanding of the
requirement for continual change of supply chains in a
continually changing world
4. Reading: SKS, Ch.10 (p.312)
5. Activity: Group and class discussions

Module 3:
Monday, 5 Sep. 2016
11.15-12.45

LOGISTICS AND DISTRIBUTION

Session 7: Adirizal Nizar
1. Topic: Location, Logistic, and Distribution
2. Issues Covered: Evaluation related to storage-handling
system, supply chain collaboration, technological and
economic success.
3. Reading: JC, Ch.12 (p.432)
4. Activity: Lecturing and discussions

9.45 -11.15

Session 8 (Case): Adirizal Nizar

1 Topic: Adani Agri Logistics Limited: Blocking The Grain
Drain
2 Description:.
Adani Agri Logistics Limited (AALL) was established
2005 to execute a national project for bulk handling of
food grains through a public-private partnership (PPP)
with the Food Corporation of India (FCI). Under this
arrangement, the FCI supplied the food grain to AALL,
who then acted as custodian until delivery at the
various public distribution points.
The case illustrates how supply chain technology can
provide a useful solution to a sector marred with
inefficiencies in a developing country with emerging
economy.
3 Objective: This case can be used as an effective
supplementary tool in courses on supply cahin
operation strategy
4 Case: Adani Agri Logistics Limited: Blocking The
GrainDrain[Ivey, Case No. W14072]
5 Activity: Group and Class Discussion

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Module 4:
Monday, 19 Sep. 2016
08.00 09.30

PRODUCT AND SERVICE

Session 9: AdirizalNizar
1. Topic: Product and Service Design
2. Issues Covered: Product development process, cost
planning, value analysis/value engineering, and measuring
product development performance.
3. Reading: JC, Chp.3 (p.74)
4.Activity: Lecturing and discussion

09.45-11.15

Session 10 (Case): AdirizalNizar

1. Topic: Project Dreamcast: Serious Play at Sega
Enterprises Ltd. (A)
2. Issues Covered: Sega Enterprises, one of the leading
Japanese suppliers of videogames and consoles, has
experienced a series of successes and setbacks in the
global home videogames market. The fierce competition
between Sega, Nintendo, and Sony is a battle for
standards and profits. Central to Segas growth, which
has been funded the companys development of its next
generation home videogame console, the Dreamcast
platform. Because its previous console, Sega Saturn, was
a financial disaster, senior management has focused on
learning from past mistakes and doing everything right
on its new Dreamcast development.
3. Objective: To enable a close look at product
development and market launch strategies in an
extremely competitive environment. Introduce to the
importance of managing networks of suppliers, 3rd party
developers, distributors, retailers and customers during
product development. Design product launch and
marketing strategies. Identify and manage the
operational issues of bringing products to market.
4. Activity: Group and Class Discussion
5. Case: Project Dreamcast: Serious Play at Sega Enterprises
Ltd. (A), [HBS, 9-600-028]
6. Guiding questions for discussion:
How to characterize the competitive dynamics in the
videogame industry?
What the differences and the similarities of the
development process of the Saturn and Dreamcast game
platforms

15

Module 5:
Monday, 26 Sep. 2016
08.00-09.30

PROCESS CONTROL
Session 11: Adirizal Nizar
1. Topic: Process Analysis& Quality Improvement
2. Issues Covered: Process Analysis, Process Flowcharting,
Measuring Process Performance, and Job Design
3. Reading: JC, Ch.5 (p.142), Ch.9 (p.320)
4. Activity: Lecturing and discussions

09.45-11.15

Session 12 (Case): Adirizal Nizar

1. Topic: Forefront Mfg.: Production Processes and Change
Management in Mainland China
2. Issues Covered: ForeFront Wood Products Mfg.,
produces and inefficiencies resulting from its processes
and its culture. ForeFrontHoldings, plan an IPO and it has
recently hired a new operation manager, Michael Li, who
has the mandate to turn the factory around.
The case describes the firms manufacturing and
management the processes. Many issues are described,
including high cost, low yields, unreported defects and
equipments that fails to operate near its rated capacity.
3. Objective: To introduce the major structural and systems
dimensions of operations and to challenge student to
develop coherent, plausible action pals that address root
causes of the companys problems and avoid to creating
new problems
4. Case: Ivey, case no. 906D20
5. Activity: Group and class discussions

Monday, 3 Oct. 2016

09.00-12.00

Module 6:
Monday,10 Oct. 2016
08.00-09.30

MID-TERM TEST
Adirizal Nizar

PROJECT MANAGEMENT
Session 13: Aries Firman
1. Topic: Basic Principals of Project Management
2. Issues Covered: Project Management Body of Knowledge
(PMBOK), Project management application.
3. Reading: PMBOK, 3rd edition

16

4. Activity: Lecturing and discussions

09.45-11.15

Session 14: (Case): Aries Firman

1 Topic: South American Adventures Limited
2 Case outline: A couple who began to encounter problems
in their start-up company had been introduced to the
concept of project management. They were unsure how
relevant project management to their context.
3 Case objectives: - To illustrate the application of project
management in a start-up company and to suggest
possible improvements as to solve current issues and
problems
4 Activity: Group and Class Discussion

11.15 12.45

Session 15: Aries Firman

1. Topic: Project Stakeholders Management
2. Issues Covered: How to setting broad policies and plans
for using the resources of a firm to best support its long
term competitive strategy. A firms operations and
supply strategy is comprehensive through its integration
with corporate strategy.
3. Reading: PMBOK, 5th edition
4. Activity: Lecturing and discussion

Module 7:
Monday, 17 Oct. 2016
08.00-09.30

SCHEDULING
Session 16: Aries Firman
1. Topic: Project Time Management
2. Issues Covered: Scheduling methods, Relationship
between time and cost.
3. Reading: M. Field & L. Keller, Project Management,
1998, Chp.3,5.
4. Activity: Lecturing and discussions

09.45-11.15

Session 17 (Case): Aries Firman

1 Topic: Project evaluation & Scheduling at MMW
2 Case outline: The shipment of major equipments to
Central Kalimantan faced serious delays due to various

17

reasons. Original schedule can no longer be kept so that

the project manager must be able to analyze the
situation.
3 Case objectives: - To understand how incorrect
scheduling would impact the overall project
performance and get the insights on all the crucial
factors to secure smooth completion of the project
4 Activity: Group and Class Discussions

Module 8:
Monday, 24 Oct. 2016
08.00-09.30

LEAN OPERATION
Session 18: Adirizal Nizar
1. Topic: Lean, Toyota Production System
1. Issues Covered: Lean production defined, Lean
Implementation and Requirements. Implementation of
JIT-Just In Time in all aspect of production system and
improvement management
2. Objective: To introduce just in time philosophy as the
main part of lean production. To learn JIT and TPS-Toyota
Production System as a core tools of productivity
improvement, this production system has been adopted
by many of companies currently
3. Reading: JC, Ch.13 (p.452) JL, The Toyota Way
4. Activity: Lecturing and discussion

09.45-11.15

Session 19 (case): Adirizal Nizar

1. Topic: Toyota Motor Manufacturing, USA, Inc.
2. Issues Covered: On May 1, 1992, Doug Friesen, manager
of assembly for Toyota's Georgetown, Kentucky, plant,
faces a problem with the seats installed in the plant's
sole product--Camrys. A growing number of cars are
sitting off-line with defective seats or are missing them
entirely. This situation is one of several causes of recent
overtime, yet neither the reason for the problem nor a
solution is readily apparent. As the plant is an exemplar
of Toyota's famed production system (TPS), Friesen is
determined that, if possible, the situation will be
resolved using TPS principles and tools. Students are
asked to suggest what action(s) Friesen should take and
to analyze whether Georgetown's current handling of the

18

seat problem fits within the TPS philosophy.

3. Learning Objective: 1) Provide comprehensive knowledge
on Toyota Production System, 2) Exercise advanced root
cause analysis, and 3) Demonstrate the totality of
manufacturing, especially the link between production
control and quality control.
4. Activity: Group Discussion and class discussions
5. Case: Toyota Motor Manufacturing, U.S.A., Inc. [Harvard
Case No. 9-693-019]
6. Guiding questions for discussion: (i) As Doug Friesen,
what would you do to address the seat problem? Where
would you focus your attention and solution efforts? (ii)
What options exist? What would you recommend? Why?
(iii) Where, if at all, does the current routine for handling
defective seats deviate from the principles of the Toyota
Production System?
11.15-12.45

Session 20: Adirizal Nizar

1. Topic: JIT and Toyota Production System
2. Description: Implementation of JIT-Just In Time in all
aspect of production system and improvement
management
3. Objective: To learn JIT and TPS-Toyota Production System
as a core tools of productivity improvement
4. Reading: JL, The Toyota Way
5. Activity: Lecturing and discussions

Module 9:
Monday, 31 Oct. 2016
08.00-09.30

INVENTORY MANAGEMENT
Session 21: Adirizal Nizar
1. Topic: Inventory Control
2. Issues Covered: Definition and propose of inventory,
Inventory cost, Inventory systems
3. Reading:JC, Ch.17 (p.590)
4. Activity: Lecturing and class discussions

09.45-11.15

Session 22 (Case): Adirizal Nizar

1. Topic: Daikin Industries
2. Issues Covered: Shiga Factory of Daikin Industries
Residential Air Conditioning was confronted by the

19

3.

4.
5.
6.

Module 10:
Monday, 7 Nov. 2016
08.00-09.30

prospect of an unseasonably cold summer. This was at a

time when Shiga Factory had large quantities of its
products in inventory in anticipation of strong summer
sales. Option describe in this case include reducing the
number of models, building a lower cost factory outside
Japan, or exiting the business.
Objective: To introduce the operation management and
strategy including value stream mapping, coping with
extreme demand, seasonality, postponement strategies,
and supply chain collaboration.
Activity: Group and Class Discussion
Case: Daikin Industries [Ivey Case No. 9B04D018]
Guiding questions for discussion: what is the assessment
of the problems?, what are the strengths and
weaknesses of Shiga Factory relative to the competition?,
what short-term and long-term actions would you
recommend and would you justify them?

OPERATION PLANNING
Session 23: Adirizal Nizar
1. Topic: Sales and Operations Planning
2. Issues cover: What is sales and operations planning
activities, Aggregate operation plan, and Aggregate
planning techniques
3. Reading:JCA, Ch.16 (p.514)
4. Activity: Lecturing and class discussions

09.45-11.15

Session 24: (Case): AdirizalNizar

1. Topic: McDonalds Corporation
2. Issues Covered: McDonald's is rightly seen as one of the
great growth stories in American business history. The
company offered outstanding consistency, service speed,
and price to its customers. But in the 1990 growth
stalled. New competitors entered, and were apparently
better able than McDonalds to react to shifting
customer preference. Can McDonalds meet this
challenge while keeping its operations system intact?
3. Objective: To explore challenges that will often face a
company relying upon standardization and simplification
to support rapid growth. Discussion

20

begins by detailing how an effective operating system

can simultaneously be made consistent with marketplace
strategy.
4. Activity: Group and class Discussions
5. Case: McDonald's Corp. [HBS Case No. 9-693-028]

Monday, 14 Nov. 2016

09.00-12.00

FINAL EXAMINATION
Adirizal Nizar

List of Cases
TOYOTA AVANZA, the Rollout [IBCC, Case No. 003-03-07-07]
South America Adventure Unlimited
Project Evaluation & Scheduling at MMW [Case center, OM-2-0016]
Project Dreamcast: Serious Play at Sega Enterprises Ltd. (A) [HBS, Case No. 9-600028]
5. Forefront Manufacturing: Production Processes and Change Management in
Mainland China [Ivey, Case No. 906D20]
6. Crocs: Revolutionizing and Industrys Supply Chain Model for Competitive Advantage
[Stanford Case No. GS-57]
7. Toyota Motor Manufacturing, U.S.A., Inc. [HBS, Case No. 9-693-019]
8. Daikin Industries [Ivey, Case No. 9B04D018]
9. Adani Agri Logistics Limited: Blocking The Grain Drain [Ivey, Case No. W14072]
10. McDonalds Corporation [HBS, Case No. 9-693-028]
1.
2.
3.
4.

21

MM5004 Operation Management-30 sessions GM-3, Aug-Nov 2016

Monday, 22 Aug. 2016
Modul-1: STRATEGY
08.00-09.30 S-1 Operations and Supply Chain Mgt
09.30-09.45
Break
09.45-11.15 S-2 Case: Toyota Avanza
11.15-12.45 S-3 Operation Strategy
Monday, 29 Aug. 2016
Modul-2: SUPPLY CHAIN MANAGEMENT
08.00-09.30 S-4 Intro Supply Chain Management
09.30-09.45
Break
09.45-11.15 S-5 Case: Crocs: Revolutionizing an Industry's

Supply Chain Model for Competitive Adv.

11.15-12.45 S-6 Global Logistic & Risk Management
Monday, 5 Sep. 2016
Modul-3: LOGISTICS AND DISTRIBUTION
08.00-09.30 S-7 Logistics, Distribution, and Transportation
09.30-09.45
Break
09.45-11.15 S-8 Case: Adani Agri Logistics Limited
Monday, 19 Sep. 2016
Modul-4: PRODUCT AND SERVICE
08.00-09.30 S-9 Product and Service Design
09.30-09.45
Break
09.45-11.15 S-10 Case: Project Dreamcast at Sega (A)
Monday, 26 Sep. 2016
Modul-5: PROCESS CONTROL
08.00-09.30 S-11 Process Analysis & Quality Improvement
09.30-09.45
Break
09.45-11.15 S-12 Case: Forefront Mfg.: Production
Processes and Change Mgt in China
Monday, 3 Oct. 2016
MID-TERM
09.00-12.00
Mid-Term Examination

Lecturer
Adirizal Nizar

Reading
JC, Chp.1 (p.38)

Adirizal Nizar
Adirizal Nizar

IBCC, 003-03-07-07
JC, Chp.2 (p.56)

Lecturer
Adirizal Nizar

Reading
SKS, Chp.1. (p.1)

Adirizal Nizar
Adirizal Nizar

Stanford Uni., GS57

SKS, Chp.10 (p.312)

Lecturer
Adirizal Nizar

Reading
JC, Chp.12 (p.432)

Adirizal Nizar

Ivey, W14072

Lecturer
Adirizal Nizar

Reading
JC, Chp.3 (p.74)

Adirizal Nizar

HBS, 9-693-028

Lecturer
Adirizal Nizar

Reading
JC, Chp.5 (p.142), Chp.9 (p.320)

Adirizal Nizar

Ivey, 906D20

Adirizal Nizar

Class room, Open book

Monday, 10 Oct. 2016

Modul-6: PROJECT MANAGEMENT
08.00-09.30 S-13 Basic Principal of Project Management
09.30-09.45
Break
09.45-11.15 S-14 Case: South America Adventure Ltd
11.15-12.45 S-15 Project Stakeholders Management
Monday, 17 Oct. 2016
Modul-7: SCHEDULING
08.00-09.30 S-16 Project Time Management
09.30-09.45
Break
09.45-11.15 S-17 Case: Project evaluation & Scheduling at MMW

Monday, 24 Oct. 2016

Modul-8: LEAN OPERATION
08.00-09.30 S-18 Lean, Toyota Production System
09.30-09.45
Break
09.45-11.15 S-19 Case: Toyota Motor Mfg, USA, Inc.
11.15-12.45 S-20 JIT and Toyota Production System
Monday, 31 Oct. 2016
Modul-9: INVENTORY MANAGEMENT
08.00-09.30 S-21 Inventory Control
09.30-09.45
Break
09.45-11.15 S-22 Case: Daikin Industries
Monday, 7 Nov. 2016
Modul-10: OPERATION PLANNING
08.00-09.30 S-23 Sales and Operations Planning
09.30-09.45
Break
09.45-11.15 S-24 Case: McDonald's Corp.
Monday,14 Nov. 2016
FINAL EXAMINATION
09.00-12.00 Final Examination

Lecturer
Aries Firman

Reading
PMBOK, 5th edition

Aries Firman
Aries Firman

PMBOK, 5th edition

Lecturer
Aries Firman

Reading
Field&Keller,chp.3,5

Aries Firman

Case centre, OM-2-0016

Lecturer
Adirizal Nizar

Reading
JC, Chp.13 (p.452), JL, TYT Way

Adirizal Nizar
Adirizal Nizar

HBS, 9-693-019
JL, The Toyota Way

Lecturer
Adirizal Nizar

Reading
JC, Chp.17 (p.590)

Adirizal Nizar

Ivey, 9B04D018

Lecturer
Adirizal Nizar

Reading
JC, Chp.16 (p.564)

Adirizal Nizar

HBS 9698079

Adirizal Nizar

Class room, Open book