OPERATIONS MANAGEMENT

PGP, Term II, 2017-18 ( Section A)

Instructor: Jishnu Hazra

hazra@iimb.ernet.in
D Block , I Floor, Extn. 3126

Course Description & Objectives

Operations Management (OM) deals with the transformation of varied resources into goods or services for
use. These resources could be materials, labor, capital, knowledge, information, etc. It is often a source of
competitiveness and success for companies. In recent years several strategies have emerged for improving
productivity and quality, reducing costs and delivery times, and enhancing the flexibility and innovative
abilities of the firm. The objective of the course is to develop an understanding of the role of OM in a firm
and to develop abilities to structure and solve operations related problems.

Readings

(CP) Course pack with the required cases (Kirstens Cookie, Executive Shirt, Shouldice
Hospital, Manzana Insurance, Donner Company, Hewlett Packard, MOS Game hand
out, Toyota Motor Manufacturing, Polyface: The Farm of Many Faces, American
Connector Company)

(O&SCM) Course Textbook (the reading chapters are indicated in the sessions schedule)
Jacobs (2017, 15th Edition) Operations and Supply Chain Management, McGraw Hill,
15th Edition.
Pedagogy

The pedagogy consists of lectures, classroom discussions, group exercises such as case analyses and
simulations/management games (in class and online).

Grading Scheme

Course grades (and points) will be awarded based on different components.

Case write-ups 30% Group (of upto 6) assignment
Module 1 test (Test 1) 20%
Module 2 test (Test 2) 13%
Littlefield Simulation 7% Group (of upto 6) assignment
End Term Test 30%

The groups will be formed and information sent by the PGP office.

Attendance
Much of the learning happens both during your preparation and discussion in class involving mutual
exchange of ideas. Hence, attendance and participation in all sessions is expected. Missing more than
4 classes would result in a 1 grade point drop.

1
Dates for Littlefield Simulation
Date Time Details
2nd Nov 1330 hrs Open Registration Window
4th Nov 1900 hrs Close Registration Window
th
6 Nov 1200 hrs Open Game
Start Game (duration of the game is
8th Nov 1800 hrs
between 6 and 7 days)

Session Date Topic

Module 1: Process & Capacity Analysis

1 21 Sept Operations as a Source of Competitive Advantage; Performance
Measures for Analysing Operations
Read: Chapter 1, 2 (O&SCM)
2 28 Sept Process analysis: Concept of Bottleneck, Cycle Time, Resource
Interference; Factors affecting Operations Performance
Case: Kristens cookie
Read: Chapter 5,7, 11(O&SCM)
3 29 Sept Process Analysis of Batching & Assembly Operations
Case: Executive Shirt
Read: Chapters 8 and 5 (O&SCM)
4 30 Sept Analysis of Operating Systems with High Volume and Low
Variety; Comparison between Service and Manufacturing
Organizations
Case: Shouldice Hospital
Read: Chapters 9, 8 (O&SCM)
5 5 Oct Performance Analysis of a Service Process
Case: Manzana Insurance
Readings: Chapters 9, 10 (O&SCM
6 6 Oct Capacity Analysis Under Uncertainty; Introduction to Queuing
Read: The Psychology of Waiting Lines
Chapters 10 (O&SCM)
7 12 Oct Analysis of Operating Systems with Low Volume and High
Variety; Product Process Matrix
Case: Donner
Read: Chapter 2, 5,7 (O&SCM)
14 Oct Test 1

Module 2: Supply Chain & Coordination

8 13 Oct Inventory Management: Deterministic Model, Cost Structure
and Trade-offs, EOQ, Stochastic Demand
Read: Chapter 20 (O&SCM)
9 19 Oct Inventory Management: Safety Stocks, Continuous Review,
Periodic Review (Order-upto-Level), Cycle Service Level, Fill
Rate; Newsvendor Model (Perishable Products)
Read: Chapter 20 (O&SCM)

2
10 20 Oct Efficient versus Responsive supply Chain, Concept of
Postponement (Delayed Differentiation), Managing Inventory in
a Responsive Supply Chain (please wait for session 9 before you
complete this case write-up)
Case: Hewlett Packard
11 2 Nov Supply Chain Coordination
Beer Game
Read: The Beer Game Handout before coming to class
12 3 Nov Supply Chain Coordination
Beer game Analysis
Read: Chapter 16 (O&SCM)
11 Nov Test 2
Module 3: Operations Planning & Strategy
13 9 Nov Master Operations Scheduling game; Concept of Hierarchical
Approach to Planning
Each group should bring a laptop to the class
Read: MOS Game handout (see Moodle)
14 10 Nov Cost Structure and Planning Strategies, Master Production
Schedule, Material Requirements Planning
Read: Chapter 19, 21 (O&SCM)
15 16 Nov Just-in-Time Systems; Lean Management
Case: Toyota Motor Manufacturing
Read: Chapter 14 (O&SCM)
16 23 Nov Total Quality Management; Statistical Process Control and
Process Capability
Read: Chapter 12, 13 (O&SCM)
17 24 Nov Project Planning and Scheduling: Network Development, Time
Cost Trade-Off
Read: Chapter 4 (O&SCM)
18 25 Nov Sustainable Operations Management
Case: Polyface: The Farm of Many Faces
19 30 Nov Operations Strategy
Case: American Connector Company
Read: Chapter 2, 3 (O&SCM)
20 1 Dec Littlefield game discussions
Course Wrap-Up
3 Dec End-Term Exam (Re-Check date and time with PGP office)