OPERATIONS MANAGEMENT

PROGRAM : MBA COURSE CODE : SLOP 502

SEMESTER : 2 SESSIONS : 33
CLASS OF : 2021 CREDITS :3
INSTRUCTOR: SIDDHARTHA KUSHWAHA
MOB :9985623755
EMAIL :KSIDDHARTHA@IBSINDIA.ORG
STUDENT CONSULTANCY TIMINGS: WEDNESDAYS AND THURSDAYS; 4:30 TO 5:30 (WITH PRIOR APPOINTMENT)

COURSE DESCRIPTION
This course helps students understand, appreciate and apply concepts and contemporary practices of managing operations in manufacturing as well as
service sectors. Students will learn several analytical techniques and frameworks used to overcome the challenges faced in integration of numerous
activities and processes to produce products and services competitively. Operations Management is a Theory of Action. Many a plan runs aground
due to poor execution. Strategy, Processes, logistics, Planning and control help managers succeed at operations and management.

COURSE OBJECTIVE
The study of Operations Management is fundamental to Design and Improvement of processes of both profit as well as non-profit organizations that create
Products and Services upon which economies depend. Production Processes in Manufacturing and Service Organizations need to both increase revenues
and reduce costs to have a competitive advantage as well as remain relevant. This course equips students with Qualitative and Quantitative techniques to
understand,appreciate and construct as well as optimise Long-Range, Medium-Range and Short Range plans of a business enterprise wrt Operations

TEXT BOOK
“ Operations & Supply Management” by Richard B.Chase, Ravi Shankar, F.Robert Jacobs, (15th Edition)

REFERENCE BOOKS
1. “Operations Management”, William J. Stevenson, Tata McGraw-Hill Education, New Delhi. 2009, 11eth Edition (Special Indian Edition
2. “Quantitative Analysis for Management” by Barry Render, Ralph M. Stair, and Michael E. Hanna. Prentice Hall Publication, New Delhi. 2008. 9 th
Edition. (For Linear Programming and Transportation Problems)
3. “Production and Operations Management”, Everette E. Adam and Ronald J. Ebert. Prentice Hall of India. New Delhi. 2004. 5th Edition.
4. “Operations Management Strategy & Analysis”, Lee J. Krajweski and Larry P. Ritzman. Person Education. New Delhi. 2002. 6th Edition.

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EVALUATION

The students will be evaluated continuously on the basis of the following components across all the sessions.

Sl. No. Components Weightage Due Date

1 Class Participation - 1 10% 33rd session

2 Test – I (MCQs) 20% 25th Nov 2019*

3 Test -II (Subjective Questions) 20% 7th Jan 2020*

4 Test-III (Case Analysis) 10% 3rd Feb 2020*

5 End-Term Exam 40% Feb 2020

*tentative

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Area: IT &OPERATIONS
Sub-Area: OPERATIONS
Course Code: SLOM 502 Course Title: Operations Management
Sessio Section
n
Topics Learning Outcomes Current Cases Chapter Remarks
1
 Overview of the content in terms of
understanding the importance of operations
Introduction to Operations Management management to an organization. cChapter 1
 Pedagogical approach that will be adopted for
the course

2&3
Supply Chain Strategy  The concept of value and value chains
 Introduction to supply chain strategy  Value creation using Supply Chain
 Measuring Supply chain performance Collaboration
 Supply Chain Design Strategy  The conflict between Supply Chain objectives ZARA’s Supply Chapter 2 and 16 (Text
 Types of Supply Chain Strategies( Hua (global optima) and Firm objectives (local Chain Book)and
Lee’s) optima) Management Chapter 15
 Service supply chains  The Management of Demand and Supply Practices (Reference 1)
 Value density uncertainty
 Sourcing/purchasing-system design  Measuring Supply Chain Performance
matrix

4&5
Operations Strategy
 Vertical Integration
 Formulating Business Strategy
 Competitive Strategies
 Order Qualifiers and Order Winners
 Aligning Functional Strategies to
Business Strategy
 Single-Factor and Multi-Factor
Productivity
 The concept of Operations as a transformation
process that creates value.
 The Make vs Buy decision
 Relationship between Supply Chain Strategy,
Operations Chapter-2(Text Book)
Business (Firm) Strategy and Functional
Management at Chapter 2 ( Reference-
Strategies.
Southwest Airlines 1)
 Value creation using Firm (Business) Strategy
 Addressing Trade-offs in evaluating Strategy
Alternatives
 Measuring Firm Productivity

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 Topics Learning Outcomes Current Cases Chapter Remarks
6&7
Transportation and Logistics  The difference between inbound and outbound
 Obtaining intial feasible solution logistics in Supply Chains Chapter 10
 NWCM  Optimising constrained Supply and Demand (Reference 2)
 LCM requirements (The Transportation Problem) Chapter15(TextBook)
 VAM  Iterative Computation of Transportation Costs Supplement to
 Improving the feasible solution  Obtaining a feasible solution versus obtaining chapter
 Stepping Stone the optimal solution 8(Reference-1)
 MODI

8
Facility Location Identifying the best location for a facility using
 Cost-Volume analysis location techniques. Chapter 15(Text Book)
 Profit Analysis Chapter 8 (Reference-
 Centroid Method 1)
 Factor Rating

9
Strategic Capacity  Long-term Capacity Planning
Management  Measurement of Long-term Capacity
 Defining and Measuring Capacity  Evaluation of Long-term Capacity Alternatives
 Design Capacity using Decision Trees and Cost-Profit-Volume Excel Printers Chapter 5 (Text Book)
 Effective Capacity Analysis Chapter 5(Reference-
 Efficiency 1)
 Utilisation
 Developing Capacity Alternatives
 Evaluating Capacity Alternatives

10&11 Test 1, Till

The Production/Manufacturing Process  Product(/Service)-Process Interdependence Facility
 Product(/Service)-Process Matrix  Process Selection Location
 Project Chapter 7
Made in India
 Job Shop/Functional
 Batch Production
 Mass Production
 Continous Production

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 Topics Learning Outcomes Current Cases Chapter Remarks
13&14
Facility Layout  Identifying types of Product/Service Layouts
 Fixed-Position  Layout Selection
 Process/Functional  Designing the best Layout New Case: ICFAI
 Load Distance Matrix LTY AOU:
 Improving an existing Layout
Unraveling Jumbled Chapter 8(Text Book)
 Group Technology/Cell
Flows Chapter 6 (Reference-
 Assembly Lines
through Relative 1)
 Line Balancing Station
 Hybrid Layouts Proximity
 Office Layouts
 Closeness Ratings/Muther Grid

15&16 Product Design  New Product Design Process

 Objectives  Phases in Product Development Process
 New Product Development  Product Redesign Main Case
 Design for Manufacturing and Assembly  Measuring Product Development Performance Ford Motor Chapter-3(Text Book)
 Concurrent Engineering Company Chapter 4(Reference-
 Design for the Customer In India: Developing 1)
 QFD Ford Figo
 Product Redesign
 Value Analysis
17&18 Service Design  Service as a differentiator versus Pure Service Case – OPER/077: Chapter-3(Text Book)
 Nature of Services  Standardisation versus Customisation of BIXI: Montreal’s Chapter 4(Reference-
 Operational Classification of Services Services Innovative Public 1)
 High contact vs Low Contact  Managing Variability in Service Encounters Bike System
 Service System Design Matrix  Tradeoffs involved in Designing Service
 Service Blueprinting Processes
 Fail-Safing/Mistake Proofing  Service Process Redesign
19&20  Business impact of Waiting Lines (Queues)
Waiting Line Management
 Arrival Characteristics New Case –
 Concept of Queues as Inventory
OPER/104: Waiting
 Waiting Line Characteristics
Line Chapter 10
 Service Characteristics  Tradeoff involved between Customer Waiting
Management at
 Basic Queueing System Designs Time and Server Idle Time
Tirumala
 M/M/1: model
 Measures of Waiting Line Performance

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 Topics Learning Outcomes Current Cases Chapter Remarks
21
Process Analysis  System view of a Production Process
 Single Stage/Multi Stage Processes  Standardized Process versus Customised
Process
 Blocking/Buffering/Starving Chapter 11(Text Book)
 Improving Value-Addition
 Make to Stock
 Relationship between Process Velocity and
 Make to Order
Inventory
 Little’s Law
22&23  Reconciling different views on the concept of
Quality
 The Consequences of Poor Quality
 Product Quality and Service Quality
 Difference between Quality Assurance and
Quality Control
Quality Management  Empowering Teams to Continously improve
 Quality Gurus Quality
 Dimensions of Product Quality  Benchmarking and Defect Reduction.
 Dimensions of Service Quality
 The Costs of Quality  Lean as a philosophy OPER/052: Six
 Continous Improvement and PDCA  Inventory as MUDA Sigma: A
Cycle  Low dependency on buffer storage Tool to increase
Chapter 12(Text Book)
 7QC tools and Low Capacity utilisation (PULL Customer
Chapter 14
 TQM System and JIT) Satisfaction at Bank
Chapter-9(reference-1)
 Quality Awards  KAIZEN of
 ISO 9000 and 14000  JIDOKA, POKA-YOKE America
 Six Sigma  Production Visibility (ANDON,
Lean Management KANBAN)
 JIT  Lean production
 The Toyota Production System  Mixed modeling and Repetitive
 Building Blocks of Lean System manufacturing (TAKT TIME)
JIT in Services  Level Scheduling HEIJUNKA
 Small batch production/lot size
ordering
 Managing Supplier relationships to
enable multiple deliveries
 Managing increased setup/ordering
costs

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 Topics Learning Outcomes Current Cases Chapter Remarks
24 Chapter 19(Text Book) Test 2 upto
Intermediate Planning service
 Level Strategies  Formulate Aggregate supply strategies to meet design
 Chase Strategies expected and fluctuating demand.

26&27
Material Requirements  Difference between Forecasted Demand and
Planning Actual Orders.
 Overview of MRP  Dependent Demand Inventory Management
 MRP Inputs  Relationship between the Sales Order Cycle,
 MRP Processing Production Planning and Procurement Cycle
 MRP Outputs Chapter 21(Text Book)
 Lot Sizing
 Lot-for-Lot
 EOQ Ordering
 MRP in Services

28 &
29 Inventory Management
 Advantages of Inventory
 Cycle Counting
 ABC Classification
 2-bin systems
 News vendor problem
 Q-system
 EOQ
 EOQ with Quantity Discounts
 Reorder Level/Point
 Expected Demand during Lead Time
 Fluctuating Demand during Lead Time
 Q-System
 Inventory = RM+WIP+FG
 Inventory Tracking and Classification systems
 Techniques to determine Independent demand
replenishment quantities and trigger points.
 Balancing handling and ordering New Case –
costs OPER/025:
 Including Purchase costs Nordstrom’s
Perpetual
 Determining optimal order Chapter 20(Text Book)
Inventory
quantities with and without price
Management
breaks
System
 Avoiding stockout risks using
reserves and safety stock

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 Topics Learning Outcomes Current Cases Chapter Remarks
30 Short-Term Scheduling  Concept of Work Centers as Processors Test 3,
 Objectives of Work Center Loading  Short-term nature of Scheduling Plans Case
 Forward vs Backward Scheduling  Focus on optimising for the collective rather analysis
 Loading than individual jobs
 Finite vs Infinite  Finite vs Infinite Loading
 Sequencing jobs on machines  Forward vs Backward Loading
 Priority Rules for sequencing n  Different Rules for sequencing n jobs on m
 jobs on 1 work center work centers
 First In First Out  Workforce Scheduling
Chapter 22(Text Book)
 Shortest Operating Time
 Earliest Due Date
 Critical Ratio
 Slack Time Remaining
 Sequencing n jobs through 2
sequential work centers
 Johnson’s Rule
 Scheduling for Services
 Staff Planning/Rostering
32&33 Project Management  Managing Scope, Schedule, Resources
 Nature of Projects  Planning, Scheduling and Tracking Projects
 Traditional vs Project Organisation  Estimating Project Size and Effort
 Matrix Organization  Charting Activity Dependencies
 WBS  Incorporating uncertainty in time estimates
 Gantt Charts  Balancing Time-Cost relationships
 Activity Table
 Network Diagrams
 CPM
Chapter 4(Text Book)
 Deterministic Time Estimates
 ES/LS, EF/LF Times
 Slack
 Calculating Project Duration
 PERT
 Probabilistic Time Estimates
 3 time estimates
 Calculating Probability of
Project Completion

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Expectations from Students
a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled
time. If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations will
mean non awarding of marks in that particular component
e. Wherever applicable, group assignments require each student to contribute to the group effort. This enhances group effectiveness and leads to greater
appreciation of working in groups.
f. Formal dressing is suggested for all students. Do not roam in the academic area/ attend classes in chappals / shorts / informal t shirts
g. Students are expected to show high regard and appreciation for in class discipline and desist from using mobile phones. This disturbs the class ambience
and unnecessarily diverts attention of other students as well as the faculty member.
h. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get
mentored if needed.
i. Attendance is compulsory in all sessions. However refer to guidelines in your academic handbook for exceptions.

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