Introduction to

OPERATIONS MANAGEMENT
Course recap, preparation for the exam
Prof. Dr. Maud Van den Broeke

1
IÉSEG - School of Management, Campus de Lille
  Class 1) Introduction to OM

Everything from the slides

2 “Typical”  Class 2) Project Management
8 Multiple
Open questions
(similar to the
Choice
questions
 Class 3) Facility Location Decisions
exercises/cases)
(8 points)
(8 points)  Class 4) TOC
 Class 5) Inventory Management
1 Open question  Classes 6 and 7) Short-term Scheduling
Newspaper article
(4 points)  Class 8) recap session
• 2 hours
• Bring a calculator  The key learnings from the 2 cases
• Wrong answers are penalized
 The key learnings from the 2 tutorials
50% of final grade
Introduction to Operations Management
 OPERATIONS MANAGEMENT

 Are the following related to efficiency or effectiveness?

 ‘Doing things right’
 ‘Doing the right things’

 100 units produced per day by 2 employees each working 10 hours per day at 50 euro per
hour, and an overhead expense of 1000 euro.
 What is the labor productivity and multifactor productivity?
Project Management
 PROJECT MANAGEMENT

Planning Scheduling Controlling

Which of the following is not a

process of project management?
A. Project planning.
B. Project control.
C. Project closure.
D. Project selling.
 PROJECT MANAGEMENT

CPM (Critical Path Method)

• Draw the AON network
A B D
• Determine the completion time of the project
• Determine earliest and latest finish times C
• What is the slack for each activity
• Compute the critical path

Activity Predecessor Duration

A 8
B A 1
C A 3
D B,C 4
E C 8

What is the critical path?

Facility Location decisions
 FACILITY LOCATION DECISIONS

Weight China Germany

Productivity 0.60 1 4
Labour cost 0.40 3 1
Which country do you prefer using the factor rating method?
TOC
 THEORY OF CONSTRAINTS

Which statement is correct?:

A. The high manufacturing cost is the bottleneck for Tesla.
B. The high demand for all cars is the bottleneck for Tesla.
C. The Model 3 car is the bottleneck for Tesla.
D. The Battery Module line is the bottleneck for Tesla.
Inventory Management
 INVENTORY MANAGEMENT
NUMBER OF AVERAGE
ORDERS INVENTORY

EOQ 𝐷 𝑄
𝑄 2

Total Inventory Cost = Total Material Cost + Total Ordering Cost + Total Holding Cost
𝑫 𝑸
PxD S x H x
𝑸 𝟐
costs

• What is the minimum total inventory cost (including

material cost) if demand is 100 units, ordering cost
per unit is 2€, holding cost per unit per year is 1€ and
the selling price is 5€?
EOQ A. 240
B. 300
2 S  D C. 520
Q D. 780
H
Short-term scheduling
 Johnson’s rule

Job Machine 1 Machine 2 • What is the order of jobs?

A 10 6
• What is the makespan?
B 5 4
C 2 4
D 3 1

https://www.youtube.com/watch?v=XNcTRdtK5_A
 Short-term scheduling: priority rules

Job Work (Processing)

Job Time Job Due Date
(Days) (Days)
A 10 10
B 4 5
C 15 20
D 6 15

What is the sequence of jobs according to SPT?

• A-B-C-D
• B-D-A-C
• C-A-D-B
• B-A-D-C