Hamdard University

Hamdard Institute of Management

Sciences
Course Outline

Course Instructor: Faryal fahim Class: MBA

Course Title: Operations Management Class Day: Sunday
Course Code: MGT526 Class Time: 11:45-2:30
Semester: Spring 2016 Room No: 2B 1

Course Description: This course introduces students to the concepts of underlying effective
operation and control of Manufacturing and Service businesses. Approaches to production
control, inventory policy, facility planning, method improvements and technological assessment
are studied. It includes from a blend of topics from accounting, industrial engineering,
management, management sciences and statistics. This course is specially build to understand the
applications of operations management policies and techniques to the service sector as well as
manufacturing firms.

Course Objectives: This course has diverse objectives which are as follows;

To understand the strategic role of Operations Management in creating and enhancing a

firms competitive advantages.
To understand the key concepts and issues of operations management in both
Manufacturing and Service organizations.
Apply analytical skills and problem solving tools to the analysis of the Operations
problems.
The course focuses on the basic concepts, issues and techniques for efficient and effective
operations.
Demonstrate an understanding of the concepts of Operations scheduling.
Demonstrate a basic understanding of Project Management.
Demonstrate an understanding of the problems involved in Inventory Management.

Teaching Methodology: Toaccomplish the objective different teaching methodologies will be

used which includes PowerPoint slides, Harvard Business Case studies, exercises, problems,
discussion questions, visit of any Manufacturing Organization, written assignments, group
activities, presentation and term project.Students are expected to participate positively in all such
activities. All the activities will be considered as marked assignments.
Learning Outcomes:Upon completion of the course, students will be able to achieve the
following outcomes:

Understanding the basic difference of goods and services and how they operate and
produce.
Understanding the different operation strategies which will be helpful in developing
mission and vision of an organization.
Students will learn the techniques of forecasting the product lifecycle.
Analyze the significance of implications of quality and international quality standards.
Understanding of different types of statistical tools use in operations which helps them in
organizations and business affairs.
Identify the types of vendors and inventory management through different EOQ models.
It increases the students skills and knowledge which help them toimplement any project.

Course Contents:

Session No. / Chapter Title / Topic Chapter

Week No.
1 TITLE: Introduction to Operation Management 1
What is operation management?
Difference between goods and services
The productivity challenge
Productivity measurement
Productivity variables
Productivity in the service sector
Ethics and social responsibilities

ACTIVITIES:
Discussion Questions:
1. Why should one study operation management?
2. Figure 1.1 outlines the operations, finance/accounting, and
marketing functions of three organizations. Prepare a chart
similar to figure 1.1 outline the same functions for two of the
following, Newspaper, a drugstore, a college library, a summer
camp, a small costume- jewelry factory.
3. What are three basic functions of a firm?
4. What are the five reasons productivity is difficult to improve in
service sector.
5. What is the impact of only a 15% decrease in costs in the
operation management options?
Problems:1.1, 1.2, 1.5
 Home Assignment:
Problems:1.8, 1.9, 1.11, 1.12.
Case Study:Read the case and solve the answers individually, cases:
National Air Express/Zychol chemicals corporation
Theme of Home Assignment: to construct the knowledge of products
and services, and their impact on operation management.
Source Of Assignment: operations management by Jay Heizer, Barry
Render, JagadeeshRajashkhar ninth edition pearson page no. 24-25

2 TITLE: Operation Strategy in a global Environment 2

A global view of operations
Developing mission and strategies
Ten strategies on decision
Issues in operation management strategies
Strategy development and Implementation
Critical Success factor and core competencies
Build and staff the organization
Global operation strategy options
ACTIVITY:
Discuss Questions:
1. List six reasons to internationalize operations.
2. Define mission.
3. Define strategy.
4. Identify the mission and strategy of your automobile repair
garage. What are the manifestations of the 10 OM decisions at
the garage?
5. As a library or internet assignment, identify the mission of a
firm and the strategy that supports that mission?

Solved Problem:2.1
Problems:2.2, 2.4, 2.7, 2.8
Case Study:Minit lube
Konkan Railway Project
Home Assignment: 5 marks: browse through The Wall street Journal,
the financial section of a daily paper, or read business news online.
Seek articles that constrain manufacturing innovation and productivity,
workers arent allowed to do that, this technology is not allowed, this
material cannot be handled by workers, and so forth. Be prepared to
share your article in next class discussion.
Source of Assignment:The wall street journal, www.business
recorder.com
Theme of Assignment: students enable to form a mission and strategy
which helps them to manufacturethe product.
3 TITLE: Forecasting 3
What is forecasting?
Forecasting time horizon
The influence of product life cycle
Types of forecast
Seven steps in the forecasting system
Forecasting approaches
Quantitative approach
Qualitative approach
Monitoring and controlling forecast
Forecasting in the service sector

ACTIVITY:
Discussion Question:
1. What is qualitative forecasting model and when it is
appropriate?
2. A skeptical manager asks what medium range forecast can be
used for. Give the manager three possible uses/purpose
3. Define time series
4. Research and briefly describe the Delphi technique
5. Explain in your own words the meaning of the correlation
coefficient. What is the difference between dependent and
independent variable?
6. Give examples of industries in which demand forecasting is
dependent on demand for other products.
Class exercise:
Solved Problems: 3.3
Problems: 3.1a, 3.2b, 3.5a, 3.6, 3.8a, 3.10a, 3.13b, 3.15, 3.47, 3.6,
3.13c,
Home Assignments: Problems: 3.16, 3.25, 3.39, 3.49, 3.24, 3.30, 3.31,
3.32, 3.33, 3.35, 3.41c, 3.48b, 3.24d, 3.35d.
Group Assignment: Read the both cases and solve the answers in
group. Case study: Southwestern university
Digital cell phone

Theme of the Assignment: students able to forecast demand through

different approaches.
Source Of Assignment: operations management by Jay Heizer, Barry
Render, Jagadeesh Rajashkhar ninth edition Pearson page no. 107-108
QUIZ# 1: Related with chapter 1 and 2( all problems and descriptive
questions will be included)
4 TITLE: Managing Quality 4
Defining Quality
Implications of Quality
International Quality standards
 ISO 9000
ISO 14000
Total Quality Management
Continuous improvement
Six Sigma
JIT
Knowledge of TQM tools
Scatter diagram
Pareto chart
Flow chart
Histogram
Discussion Question:
1. How improving quality lead to reduced cost?
2. What are seven tools of TQM?
3. How does fear in the work place (and in the class room) inhibit
learning?
4. How can a university control the quality of its output that is, its
graduates?

Class exercise:
Problems:5.1, 5.3, 5.7b, 5.12, 5.6, 5.15
Home Assignment: case study: Read the both cases and solve the
answers individually. Cases:Chinese power Equipment
Quality at the Ritz Carlton Hotel Company
Theme of the Assignment: students able to understand how an
organization manage and improves their quality.
Source Of Assignment: operations management by Jay Heizer, Barry
Render, JagadeeshRajashkhar ninth edition pearson page no.177-178

5 TITLE:Statistical Process Control 5

Control charts
Control charts for variables
The central limit theorem
Mean charts limit
Range charts limits
Managerial issue and control charts
process capability
process capability ratio
process capability index
acceptance sampling

ACTIVITY:
Discussion Questions:
1. List five steps in developing mean charts and range charts.
2. Can a production process be labeled as out of control because
 it is too good? Explain
3. In a control chart what would be the effect on the control limits
if the sample size varied from one sample to the next?
4. What is the purpose of acceptance sampling?
Class exercise:S5.5, S5.4
Problems:S5.3a,S5.3b, S5.5, S5.6, S5.7,
Home Assignment:S5.8, S5.9, S5.11, S5.12, S5.26, S5.27, S5.28,
S5.29, S5.30, S5.31
Theme of the Assignment: Students able to understand how quality
limits measure or analyses through different statistical charts
Source of Assignment: given on page no 204-207on operation
management book and also available at www.hbr.org

6 TITLE: Process Strategy 6

Four process strategy
Comparison of process choices
Process analysis and design
Flow diagram
Time function mapping
Value stream mapping
Process charts
Service process diagram

ACTIVITY:
Discussion Question:
What is process strategy?
What type of process is used for making each of the following
products?Beer, wedding invitations, automobiles, paper,
motorcycles.
What is service blueprinting?
What are the techniques for improving service productivity?
Class exercise: solved problem 6.1
Problems:6.5, 6.6, 6.7, 6.8,6.9,6.10,6.11
QUIZ # 2: Related with chapter 3, 4& 5 (all problems and descriptive
questions will be included).

7 Revision of mid term examination: chapter 1,2,3,4 & 5 will be included

in midterm. Chapter 6 not included in midterm paper.
Query will be sort out
Paper discussion

8 Midterm Examination
9 TITLE: Capacity Planning 7
Capacity
Design and effective capacity
Capacity planning
Breakeven analysis
Single product case
Multi product case
Applying decision tree to capacity decision
Investment analysis
Net present value

ACTIVITY:
Discussion Question:
What are the assumptions of breakeven analysis?
Under what conditions would a firm want its capacity to lag
demand? To lead demand?
Explain how NPV is an appropriate tool for comparing
investments?
What is efficiency?
What is effective capacity?
Class exercise:
Problems: S6.1, S6.2,S6.3,S6.4,S6.5,S6.6,S6.8,S6.9

Home Assignment: problems:S6.10,S6.12,S6.13,S6.14,S6.15, S6.24b,

S6.27, S6.28, S6.32, S6.33
Theme of the Assignment: students understand how to make
investments, and visualize capacity planning through different analysis.
Source of the Assignment: questions given at the end of the chapter on
page 269-271.

10 TITLE: Supply chain management 8

Supply chain strategic importance
Supply chain economics
Outsourcing
Vendors evaluation
Cost of shipping alternatives
Measuring supply chain performance

ACTIVITY:
Discussion Question:
1. Define supply chain management?
2. What are the objectives of supply chain management?
3. What is vertical integration? Give examples of forward and
backward integration.
4. How does wall mart use drop shipping?
 Class exercise:
Problems: 10.2, 10. 3, 10.4,10.6, 10.7, 10.8, 10.9, 10.10, 10.11b,
10.12b, 10.11a, 10.12c, 10.12a,10.14
Home Assignment: Group work: read the case Ford motors Co.
supply chain strategy and submit the summary of the article in group,
not more than 800 words, with single line spacing, font size 12.
Theme of the Assignment:Summary should coverEvaluation of
whether ford should virtually integrate on the dell computer model.
Source of the Assignment: Harvardbusinessonline.hbsp.harvard.edu

11 TITLE: Inventory management 9

Function of inventory
Types of inventory
Inventory management
Inventory models
EOQ model
POQ model
Discount model
Probabilistic model
Other probabilistic model

ACTIVITY:
Discussion Questions:
Describe the four types of inventory?
Explain the major assumptions of EOQ model?
What is the relation of the economic order quantity to demand?
To holding cost? To set up cost?
What is safety stock?
How are inventory levels monitored in retail stores?

Class exercise: solved problems: 11.2, 11.311.4, 11.6

Home Group Assignment Problems: 11.1, 11.2,11.4,11.5,
11.6,11.7,11.8,11.9, 11.16, 11.17, 11.1811.29,
Theme of Assignment: it will enhance student ability to understand
how to manage inventory with different approaches.
Source of Assignment:See related examples given in chapter.
QUIZ#3: Related to chapter 9 & 10.
12 Guest speaker session on decision making tools
Home Assignment: Group Assignment : visit the manufacturing unit
of any organization and make a term project report which should cover
the following topics
Abstract
Mission
 Introduction
Historical background
Operation strategy
Forecasting
Managing quality
Statistical process control
Process strategy
Capacity planning
Supply chain management
References

Report must be not more than of 4000 words.

Theme of the Assignment: practical understanding of the course.

13 TITLE: Project Management 10

Importance of project management
Project planning
Work breakdown structure
Project management techniques
CPM
PERT
Calculating critical path
Probability of project completion

ACTIVITY:
Discussion Question:
1. Give an example of the situation in which project management
is needed.
2. Explain the purpose of organization
3. What are the questions which can be answered with PERT and
CPM?
4. Define work breakdown structure? How it is used?
Class exercise:
Solved problems: 16.5, 16.6, and 16.7.
Home Assignment: problems: 16.27, 16.3, 16.6, 16.7, 16.9a,16.4,
16.11, 16.13, 16.14a, 16.17a,b
Theme of the Assignment: student must able to understand how to
select a project and how to do successful project planning.
Source of the Assignment: related examples given in chapter.

14 QUIZ # 4: Related to chapter 11, 12 & 13

Final Paper discussion
Query will be sort out
Final term revision
 15 Term project and grand group presentation

16 Final Examination

Grading Plan:
Final Exam 40 marks
Midterm Exam 30 marks
Assignments 10 marks
Presentation 10 marks
Quizzes 10 marks

Required Text:

Text Book: Operations management by Jay Heizer, Barry Render, Jagadeesh Rajashkhar 9th
Edition Publication Pearson India Inc.
Well disciplined and pleasant behavior will be expected from the students.

GOOD LUCK!