OP5305: OPERATIONS MANAGEMENT

(Science: 2.0; Practice & Philosophy:1.0)

(Credits: 3.0)

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Program & Semester: BEMBA

Calendar: July 2021 – December 2021
Instructor: Dr. Gaurav Goyal

Course Description
Operations management deals with optimization of processes involved in transformation of
inputs into outputs to suitably meet customers’ expectations.

This course on Operations Management provides an introduction to the topics and

mathematical techniques for solving problems in the design, planning, and controlling of
manufacturing and service operations. It concentrates on the technological & operational
issues of business activities in the competitive industrial scenario and presents a systematic
study of behavioural and mathematical techniques for managing operational challenges to
meet organisational goals. The subject also develops students’ understanding of issues and
skills related to global operations management in complex organisational scenarios.

Course Learning Outcomes (CLO):

On successful completion of this course, Students should be able to:

CLO1: Understand both theoretical and practical aspects of how operations can be
managed strategically in the light of Global business requirements.

CLO2: Apply Operational tools and techniques in various functional business domains such
as marketing, finance, human resource management.

CLO3: Compare alternative approaches for operations improvement from various

perspectives such as efficiency, responsiveness, quality and overall organizational
performance.

CLO4: Develop entrepreneurial mindset to diagnose problems and opportunities to bring

continuous improvement in an organisational system.
Syllabus

Introduction to Operations Management: Operations Management Defined, Need of

Operations Management, Nature & Scope of Operation Management, Relationship with
other functional areas, Concept of Goods vs Services, Overview of Operations Strategy.

Product and Process Design: Introduction to Process design, Product – Process matrix,
Process design in Services, Product Design and Service Design.

Supply Chain Planning: Terminologies in scheduling; Johnson’s Rule. ABC inventory

classification of materials; Capacity Planning and Aggregate Production Planning, MRP;
Introduction to Supply Chain Management and its importance in Operations management,
Bullwhip Effect

Facility Layout and Location Selection: Concept of Facility Location and various methods for
location selection, Facility Layout: Product layout, Process Layout, Hybrid and other forms
of layout, Advantages and Disadvantages.

Overview of Inventory Management and Capacity Planning: Inventory Management; EOQ Model,
Continuous and periodic inventory monitoring models; Capacity Management; Shortest Processing
Time (SPT) Rule

Techniques for Operational Excellence: Modeling approaches, Linear Programming, Usage of Excel
solver suite for optimization, Sensitivity Analysis

Quality Management: Overview of Quality Management, Quality: Definition, Dimension, Types of

wastes; Concept of Quality Function Deployment and House of Quality; Overview statistical process
control (attribute and variable control charts); Overview of total quality management (TQM)

Recommended Books:

Compulsory Textbook for class:

T1: William J Stevenson; OPERATIONS MANAGEMENT, Special Indian Edition, Tata McGraw-Hill
(2009)

Reference Books for supplementary readings:

1. Chase, Ravi Shankar, Jacobs and Aquilano; Operations and Supply Chain
Management Management, Tata McGraw-Hill (2010).
2. B. Mahadevan., Operations Management (Theory and Practice), Pearson Education
(2010).
3. Gaither, N. and Frazier, G., Operations Management, Cengage Publications (2004).
4. Russell, R. S. and Taylor III, B. W., Operations Management, Pearson Education
(2006).
5. Cox, J. and Goldratt,E.M., The Goal A Process Of Ongoing Improvement, Productivity
& Quality Publishing (2012).
 Session Plan
(Duration: 60 Minutes each)

Session 1-3: Overview of Operations Management

Readings
• Introduction
• Brief History of OM
• Trends and issues of OM in Manufacturing and Service Sector
• Systems perspective of OM
• Challenges in OM

Source: Chapter 1 &2; T1

Achievement of CLOs: CLO1

Session 4-7: Product and Process Design

Readings
• Product Process Matrix
• Product and service design
• Service Process Matrix

Assignment 1 : 5 Marks (23rd August 2021)

Sources: Chapter 4, 5, 6, 17 (T1)

Achievement of CLOs: CLO 2, 3 and 4

Session 8-15: Overview Supply Chain Management

Readings
• Supply chain management
 Facility location and layout
• Aggregate Production Planning
• Organisational design and development
• Performance measurement

Case Discussion 1: 5 Marks (Bullwhip effects in supply chain) (19th August 2021)
Case Discussion 2: 5 Marks (Great Western University) (23 August 2021)

Achievement of CLOs: CLOs 3 and 4

Session 16-19: Facility Layout and Location Selection

 Concept and Various Methods for Location Selection

 Facility Layout
 Types of Layout
 Inventory planning and control
 Simple EOQ Model
 Periodic and Continuous Inventory management
  Quantity discounting model
 Capacity planning

Case Discussion 3: 5 Marks(Tata Nano) (13 September 2021)

Case Discussion 4: 5 Marks (Kishore Biyani and Big Bazar) (14 September 2021)

Session 20-26: Linear Programming

 Simplex Method
 Graphical Method
 Big M
Assignment 2 and 3 (5 Marks each), Before 25 October 2021)

Achievement of CLOs: CLO2 ; CLO3 and CLO4

Session 27-30: Value Chain and Quality Management

Readings
• Evolution of Quality
• Quality Costs
• Lean management
• Total Quality Management
• Organizational Culture and Change Management

Course Grading Structure

1. MST (20%): The following will be the syllabus for MST
Introduction to Operations Management: Operations Management Defined,
Need of Operations Management, Nature & Scope of Operation Management,
Relationship with other functional areas, Concept of Goods vs Services, Overview of
Operations Strategy.

Product and Process Design: Introduction to Process design, Product – Process

matrix, Process design in Services, Product Design and Service Design.

Supply Chain Planning: Terminologies in scheduling; Johnson’s Rule. ABC inventory

classification of materials; Capacity Planning and Aggregate Production Planning,
MRP; Introduction to Supply Chain Management and its importance in Operations
management, Bullwhip Effect

Facility Layout and Location Selection: Concept of Facility Location and various methods
for location selection, Facility Layout: Product layout, Process Layout, Hybrid and other
forms of layout, Advantages and Disadvantages.

2. Sessionals (50%)

a. Case Discussions (20 Marks)

b. Assignments (15 Marks)
c. Final Project (15 Marks)
CLOs covered: All four CLO’s.

3. Final exam (30%): Complete syllabus will be part of this exam. The questions will be based
on theoretical aspects, numerical problems and cases covered in the class.
CLOs covered: All four CLO’s.