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467 Sum Final
467 Sum Final
99
UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN
COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION
BADM 467 - PROCESS MANAGEMENT
SUMMER 2002
Dilip Chhajed
chhajed@uiuc.edu
323 DKH
office hours:
Nick Petruzzi
petruzzi@uiuc.edu
328D DKH
office hours:
Description
Process Management includes a myriad of activities: insuring that a product or service is of high quality, choosing the
appropriate design and technology for producing a good or service, planning and controlling the flow of materials or
customers so that lead times are minimized, and distributing finished goods or services. Relevant decisions range from how
much material to order for making a product, to determining how much capacity is needed to provide a good level of service,
to evaluating which technology will best meet a company's needs. In short, this course focuses primarily on developing and
applying tools and techniques to ensure that the right products and resources are at the right place at the right time so as to
maximize profit within a business process or supply chain. The products could be either goods, services, or both; and the
resources could be either material, people, money, information, or any combination of the four.
In the first part of this course, we will focus on process design and improvement issues by studying the relationships between
key process parameters such as capacity and throughput, and by analyzing processes in order to identify and eliminate
bottlenecks. And, in the second part of the course, we will focus on process coordination issues by studying methods for the
efficient planning and controlling of critical resources.
Specific objectives are:
To describe an operating system or a business process and how it can be used as a competitive weapon in a variety of
manufacturing and service organizations.
To understand decisions faced by operations managers, the skills required to make these decisions effectively, and how
these decisions integrate with the overall strategy of the firm.
To highlight many of the interfaces between the operations function and other functions of the firm such as finance,
accounting, and marketing.
To develop skills in analyzing operating processes, assessing economic trade-offs, and defining planning and control
mechanisms.
Design
The approach to this course is both lecture and case analysis. We will develop concepts and tools in class, but the true test
in learning a new concept or tool is whether or not it can be applied.
Working in teams of 5, you will have the opportunity to hone skills and explore application possibilities through homework
problem sets and case studies. The team aspect is important because group deliberation often opens avenues of thought
otherwise not considered even to exist. Of the cases that we study, some are geared toward stimulating thinking about an
issue (e.g., Toyota Motor Manufacturing), and others present a business problem that requires diagnosis, analysis, and
development of a plan of action (e.g., Sea Pines Racquet Club). However, all cases have been chosen to illustrate basic
concepts of process management as they apply to a variety of organizations and to stimulate discussion between you and
your classmates. Therefore, class participation is a necessary element in the process.
You may organize yourself into teams of 5, but try to have your team in place by the second session so that you will have
sufficient time to collaborate before the first assignment is due. If your team is not established by the third session, please
let me know by the beginning of class; I will help.
Materials (Required)
(1) Krajewski and Ritzman (2002), Operations Management - Strategy and Analysis, Sixth Edition, Addison-Wesley
Publishing Company, New York. (Abbreviated as KR.)
(2) Goldratt, E.M. (1992), The Goal: A Process of Ongoing Improvement, Second Edition, North River Press.
(3) Readings and Cases:
Time The next source of competitive advantage, HBR, July-August, 1988
Executive Shirt Company, HBS Case Study (# 9-696-071)
Donner HBS Case Study (# 6-689-030)
Toyota Motor Manufacturing, U.S.A., Inc., HBS Case Study (# 9-693-019)
Benihana of Tokyo, HBS Case Study (# 9-673-057)
Sea Pines Racquet Club, HBS Case Study (# 9-674-011)
Johnson Controls, Automotive Systems Group HBS Case Study (# 9-693-086)
Grading
Your course grade will be based on two exams and 4 homework assignments. The homework assignments comprise problem
sets and case reports; they are to be completed by your team. Each exam must be an individual effort (surprise, surprise).
A letter grade for the course (A+, A, A-, B+, B, B-, C+, C, C-, F) will be assigned based on a relative scale.
Homework Assignments
40%
Exam I
30%
Exam II
30%
TOTAL
100%
Homework Assignments
Each team is required to submit 4 homework assignments (each of which counts for equal weight). The purpose of the
homework is to provide a structured framework for applying concepts and tools from class and to serve as practice for the
exams.
The due date for each assignment is as follows:
Homework 1: Case Report for Executive Shirt Case
Homework 2: Problem Set
Homework 3: Problem Set
Homework 4: Problem Set
All assignments are due at the beginning of class. You may want to bring an extra copy for yourself.
Case Reports and Preparation. Some of the homework assignments will be in the form of case reports. In addition, cases
often will be assigned as preparation for classroom discussion.
A list of case discussion questions has been prepared to guide your analyses of the cases, both written and otherwise. In
general, these questions are not all-inclusive or exhaustive. They are intended to guide your analysis of the case, but not
preclude you from exploring other avenues or questions that may occur to you. On the other hand, it is usually true that clear
and comprehensive answers to the assigned questions will comprise a good written analysis of a case. So, if in doubt, cover
the questions thoroughly first, then explore other avenues for an excellent report.
No outside research is expected for any of the case reports.
Case reports should not be more than two pages in length (1 1/2-spaced, font size 12, one inch margins) with up to two
additional pages of exhibits. A grading penalty will be assessed for reports/outlines that do not conform to these formats.
Additional pages will be ignored, so please adhere to the page limits.
Session 1
Topic:
Readings:
Jun 11
Session 2
Topic:
Case:
Readings:
Process Strategy
BSB, Inc., pages 61-62 (KR). Prepare the questions at the end of the case
LFKHS and Chaparral Steel plant tours in Chapter 2 (KR)
Jun 12
Session 3
Topic:
Readings:
Process Fundamentals
Chapters 1-8 of The Goal
Jun 13
Session 4
Topic:
Case:
Readings:
Jun 17
Session 5
Topic:
Case:
Readings:
Submit:
Process Analysis
Simulation, Goal discussion
Pages 381-387, Supplement D (KR)
Homework 1 (Case Report for Executive Shirt case)
Jun 18
Session 6
Topic:
Case:
Process Analysis
Donner Company, prepare answers to the Case Discussion Questions
Jun 19
Session 7
Topic:
Case:
Readings:
Jun 20
Session 8
Topic:
Readings:
Jun 24
Session 9
Topic:
Readings:
Submit:
Lean Production
Chapter 16 (KR)
Homework 2 (Problem Set)
Jun 25
Session 10
Topic:
Case:
Lean Production
Toyota Motor Manufacturing
Jun 26
Session 11
Topic:
Readings:
Project Management
Chapter 4, pages 139-154 (KR)
Jun 27
Session 12
Topic:
Readings:
Project Management
Chapter 4, pages 154-173 (KR)
Jul 01
Session 13
Topic:
Exam I
Jul 02
Session 14
Topic:
Readings:
Jul 03
Session 15
Topic:
Jul 08
Session 16
Topic:
Case:
Integrated Operations
Benihana
Jul 09
Session 17
Topic:
Reading:
Jul 10
Session 18
Topic:
Case:
Capacity Planning
Sea Pines Racquet Club
Jul 11
Session 19
Topic:
Jul 15
Session 20
Topic:
Reading:
Submit:
Resources Planning
1. Chapter 15, pages 673 684 and 695 700 (KR)
Homework 3 (Problem Set)
Jul 16
Session 21
Topic:
Readings:
Jul 17
Session 22
Topic:
EOQ Application
Challenge: To be issued
Jul 18
Session 23
Topic:
Readings:
Jul 22
Session 24
Topic:
Readings:
Jul 23
Session 25
Topic:
Readings:
Jul 24
Session 26
Topic:
Case:
Readings:
Just-In-Time Manufacturing
Johnson Controls, Automotive Systems Group
1. Chapter 16 (KR)
Jul 25
Session 27
Topic:
Activity:
Submit:
Jul 29
Session 28
Topic:
Jul 30
Session 29
Topic:
Jul 31
Session 30
Topic:
Review Session
Aug 01
Session 31
Topic:
Exam II