Faculty Program Unit Code Credits Semester Prerequisite Lecturer Content : : : : : : : : : Economics Management Production and Operations Management 3 (classroom hours) 4 Mathematics for Business, Statistics and Quantitative Analysis Suresh Kumar The basic purpose of this course is to provide students with a broad understanding and knowledge of several operations management concepts. Such concepts include operation strategy, product and process design, location and layout decisions, inventory management, scheduling, maintenance, project management and quality management

Objectives Upon completion of this course, students are expected to be able to: 1 2 3 4 5 6 7 8 9 Aware the dynamics of operation strategy and be able to develop one for a company Apply the concepts of process improvement and reengineering Aware of the various manufacturing technologies and their purposes Aware the importance of quality management and statistical process control Be able to recommend a location for a facility and design its layout Construct the concepts and techniques of inventory management for independent and dependent demand items Be able to determine the quantity and timing of productions for the intermediate future Be able to maintain the capability of the system Construct project management and be able to apply scheduling project techniques

Learning Activities / Classroom Policy Students are required to be in class and to actively participate in class instructions. Students will complete a mid-term exam (classroom examination), four term exams, and a final test (classroom examination). Students must attend 80% of the class attendance. For those who fail to attend the class more than 3 times are considered fail and will get straight E. Make-up Tests Make-up tests will be arranged only in cases of illness, emergencies, or absolutely unavoidable situations. Students must explain such situations with appropriate supporting documents to justify a make-up test.

Evaluation Assignments Term Exam 1 Term Exam 2 Term Exam 3 Term Exam 4 Mid-Term Exam Final Exam Total Grading Policy A B C D E References Chase, Jacobs, Aquilano. (2006) Operations Management for Competitive Advantage with Global Cases (11th ed.) New York: The McGraw-Hill Companies, Inc. Heizer, J., Render, B. (2011). Operations Management (10th ed.). New Jersey: Pearson Education, Inc. Nahmias, S. (2005). Production and Operations Analysis (5th ed.) New York: The McGraw-Hill Companies, Inc. Course Schedule Matrix Week 1 Topics / Brief Contents Introduction to Course Introduction to OM and processes - What is OM? - Organizing to Produce Goods and Services - Why study OM? - What OM Managers do - The Heritage of OM - Operations in the Service Sector - New Trends in OM - The Productivity Challenge Objectives Students are able to: - Define OM - Explain the distinction between goods and services - Explain the difference between production and productivity - Solve single-factor productivity - Solve multifactor productivity - Identify the critical variables in enhancing Assignments and Assessments Heizer . Individual work: Solve single-factor and multi-factor problems for problem number 1.6, 1.8, 1.10, 1.12, and 1.16 Source Heizer Ch 01 85-100 70-84 60-69 55-59 <55 Week due Week # 3 Week # 5 Week # 10 Week # 12 Week # 7 Week # 14 Percentage 10% 10% 10% 10% 30% 30% 100%


Product Design - Goods and Services Selection - Generating new products - Product Development - Issues for product design - Ethics, EnvironmentallyFriendly Designs, and Sustainability - Time-Based Competition - Defining a product - Documents for production - Service design

productivity Students are able to : - Define product life cycle - Describe a product development system - Prepare a house of quality - Describe how products and services are defined by OM - Describe the documents needed for production - Describe customer participation in the design and production of services


Term-Exam 1 Quality Management and International Standards - Quality and Strategy - Defining quality - International Quality Standards - Total Quality Management - Tools of TQM - The Role of Inspection - TQM in Services

Heizer Group work: 1. Prepare a house of quality for problem number 5.2, and 5.4 2. Analyze the concept of product life cycle, strategy and technology benefits for Case Studies: Product Design at Regal Marine Essay test

Heizer Ch 05


Process Design - Four Process Strategies - Process Analysis and Design - Selection of Equipment and Technology - Production Technology - Technology in Services - Process Redesign - Sustainability


Term-Exam 2

Students are able to: - Define quality and TQM Heizer - Describe the ISO international quality Group work: standards (classroom - Explain what Six Sigma activities) is Develop a scatter - Explain how diagram, a pareto benchmarking is used in chart and a TQM histogram for - Explain quality robust problem number products and Taguchi 6.2, 6.3, and 6.6, concepts - Use the seven tools of TQM Students are able to: Heizer - Describe four production Group work: processes 1. Prepare a - Solve crossover for flowchart for different processes problem number - Use the tools of process 7.1 analysis 2. Analyze the best - Describe customer cost for problem interaction in process number 7.5 and design 7.12 - Identify recent advances 3. Sketch a graph in production technology and analyze the - Discuss the four R’s of best cost for sustainability problem number 7.10 and 7.12 Essay test

Heizer Ch 01 and Ch 05 Heizer Ch 06

Heizer Ch 07

Heizer Ch0 6

Capacity Planning Bottleneck analysis and the theory of constraints Review of Break-Even Analysis Reducing risk with incremental changes Applying Expected Monetary Value to Capacity Decisions Applying Investment Analysis to StrategyDriven Investments

Students are able to : Define capacity Determine design capacity, effective capacity, and utilization Perform bottleneck analysis Solve break-even analysis Determine expected monetary value of a capacity decision Solve net present value


and Ch 07




Group work: 1. Determine Heizer design capacity, Ch 07s effective capacity, and utilization for problem number S7.1, S7.2, and S7.3 2. Perform bottleneck analysis for problem number S7.14 and S7.15 3. Solve break-even analysis for problem number S7.16 and S7.17 4. Determine EMV for problem number S7.28 5. Solve NPV for problem S7.30 and S7.32 Heizer Heizer Ch 08


Location Decision - The strategic importance of location - Factors that affect location decisions - Methods of evaluating location alternatives - Service location strategy

Students are able to : -


Identify and explain Group work seven major factors that (classroom affect location decisions activities): Apply the factor-rating method 1. Apply the factorUse the center-of-gravity rating method for method problem 8.8 and Distinguish the 8.10 differences between 2. Use the centerservice and industrialof-gravity sector location analysis method for problem 8.20 and 8.22 Essay test


Middle Test

Week 2, 4, 5, and 6


Layout Decision - The strategic importance of layout decisions

Students are able to : - Define the objectives of retail layout

Heizer Group work: Heizer Ch 09


Types of layout Office layout Retail layout Warehousing and storage layouts Fixed-position layout Process-oriented layout Work cells Repetitive and productoriented layout



Job Design and Work Measurement - Human resource strategy for competitive advantage - Labor planning - Job design - Ergonomics and the work environment - Methods analysis - The visual workplace - Labor standards

Identify when fixedposition layouts are 1. Analyze which appropriate layout is best for - Explain how to achieve a problem 9.4 good process-oriented 2. Determine the facility layout requirements of a - Define work cell and the work cell for requirements of a work problem number cell 9.10 - Define product-oriented 3. Sketch a diagram layout of a production - Explain how to balance flow in a product production flow in a oriented facility repetitive or productand determine the oriented facility overall efficiency for problem number 9.14 Students are able to : Describe labor planning policies Identify the major issues in job design Identify major ergonomics and work environment issues Use the tools of method analysis Identify four ways of establishing labor standards Solve the normal and standard times in a time study Heizer Group work: Determine the average time, the normal time, and the standard time for problem number 10. 16, 10. 24, and 10. 30 Heizer Ch 10




Term-Exam 3 Managing Inventory - The importance of inventory - Managing inventory - Inventory models - Inventory models for independent demand

Students are able to : - Construct ABC analysis - Explain and use the EOQ model for independent inventory demand - Construct a reorder point and explain safety stock - Apply the production order quantity model - Construct the quantity discount model

Essay test Heizer Group work: 1. Develop an ABC classification system for problem number 12.2 2. Use EOQ to solve problem 12.12 3. Apply the production order quantity model for problem

Heizer Ch 09 and Ch 10 Heizer Ch 12

12.18 4. Construct the quantity discount model for problem 12.26 11 Aggregate Scheduling and Scheduling for Short Term - Aggregate planning strategies - Methods for aggregate planning - Aggregate planning in service - Yield management - The importance of ShortTerm Scheduling - Loading Jobs - Sequencing Jobs - Scheduling Repetitive Facilities - Scheduling Services Students are able to : - Define aggregate planning - Identify optional strategies for developing an aggregate plan - Prepare a graphical aggregate plan - Solve an aggregate plan via the transportation method of linear programming - Solve a yield management problem - Apply the assignment method for loading jobs - Decide the sequence jobs - Use Johnson’s Rule - Use the cyclical scheduling technique Heizer Group work: 1. Develop an aggregate plan for problem 13.12 2. Solve an aggregate plan via transportation for problem 13.14 3. Determine the assignment of jobs for problem 15. 4 4. Decide the sequence jobs for problem 15.14 5. Use the critical ratio scheduling rule to solve problem 15.16

Heizer Ch 13 Heizer Ch 15


Term-Exam 4 MRP, ERP, JIT, Lean Operations, and TPS - MRP - MRP II - MRP in services - ERP - ERP in services - Just-in-Time - Toyota Production System - Lean Operations - Lean Operations in Service

Essay test Students are able to : - Develop a product Heizer structure Group work - Develop a MRP 1. Determine the structure number of - Describe MRP II kanbans needed - Describe ERP for problem - Define just-in-time, TPS, 16.2, 16.3, and and lean operations 16.4 - Define the seven wastes and the 5Ss - Determine optimal setup time - Define Kanban - Solve the required number of Kanban - Explain the principles of the Toyota Production System

Heizer Ch 12, 13, 15 Heizer Ch 14, 16


Managing Project and Maintenance and Reliability Decisions - The importance of project management - Project Management Techniques: PERT and CPM - Cost-Time Trade-offs and Project Crashing - The strategic importance of maintenance and reliability - Total productive maintenance - Techniques for enhancing maintenance

Students are able to : -



Heizer Group work Use a Gantt Chart for 1. Draw AOA and scheduling AON networks Draw AOA and AON and determine a networks critical path for Determine a critical path problem 3. 14 Crash project 2. Determine which Explain how to improve activity should be system reliability crashed for Distinguish between problem 3.20 preventive and 3. Solve the breakdown maintenance expected daily Describe how to improve breakdown cost maintenance for problem 17.4, Compare preventive and 4. Determine the breakdown maintenance failure rate for costs problem 17.6 5. Determine the reliability for problem 17.8

Heizer Ch 3 Heizer Ch 17

Essay test 14 Final Test

Week 8, 10, 11, and 13

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