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Weatherhead School of Management

Case Western Reserve University

OPERATIONS MANAGEMENT

OPMT 405, Summer 2003

Instructor: Dr. Joseph R. Muscatello

Telephone: (440) 944-0869

E-mail:

Room: Weatherhead School of Management

Office: None

Office Hours: After Class and by Appointment

COURSE DESCRIPTION

Operations Management deals with the part of an enterprise that creates value for its customers. It involves designing goods and services, producing goods and providing services, and the physical distribution of goods and services. As global competition in both goods and services increases, a firm's survival depends upon how well it integrates the operations function into the enterprise’s planning and strategy. Even in service industries the cost of materials, energy, building and grounds maintenance, etc. are large portions of expenditures. Thus, it is essential for all business managers to acquire an understanding and appreciation of operations. This is an interactive course. DEBATE, ARGUMENT AND SHARING OF PERSONNAL EXPERIENCES IS ENCOURAGED!

The objective of this course is to provide you with an understanding of operations and the roles that they play in an organization. By the end of the course, you should appreciate the challenges in providing world-class products and services and you should be able to use some analytical tools and conceptual frameworks to guide your thinking about operations. In particular, you should leave this course with a better understanding of:

· The role of operations in supporting business strategy. Economic policies, sales and marketing, labor and human resources, government, quality, consumerism, globalization, etc.

· How to identify and define key business processes.

· How to define clear performance objectives and process measures.

· How to use data and analytical tools to improve the effectiveness of processes.

· The impact of an organization’s context upon process management and improvement.

·  Basic techniques used by manufacturers to manage their business.

·  Operations in the service industry

COURSE MATERIALS

1.  The Goal by E. M. Goldratt and J. Cox, 2nd revised edition, North River Press, Great Barrington, Mass., 1992.

2.  Operations Management, R. Dan Reid and Nada R. Sanders, John Wiley and Sons, New York, New York, 2002.

COURSE REQUIREMENTS

The course involves a combination of lectures and class discussions of cases and readings that are contained in the course pack and the textbook. As described below, the workload consists of class participation, written assignments and two examinations. The course grade will be based on the weights shown in parenthesis.

Class Participation/Attendance (20 points)

Students are expected to come to class prepared to be active participants in the learning process. So you should read before each class all the assigned materials and be fully prepared to participate in case discussions. Your semester’s participation is evaluated based on the quality of the contribution rather than quantity. This is a subjective opinion, but subjective opinions are used to evaluate you throughout your career. The instructor is the final authority on participation grades. Class absences will lower your score!

Case Analyses (30 points)

Each finished report should be 2-5 pages, typed, double spaced, in a reasonable font size (10-12). The report should include an in depth analysis of the case(s) and fully answer the questions posed by the instructor. Think creatively! Use your education and experience to theorize what could be done to improve the business case. DO NOT USE COVER PAGES OR BINDERS FOR CASE STUDIES. Be prepared to discuss the cases on the day they are due!

Report on The Goal (30 points)

The Goal is an entertaining, though deceivingly simple, business novel. It should help you to develop some basic problem solving skills that are useful not only in operations, but also in general management as well

You are expected to turn in a report (at most five pages) on The Goal. Answer the questions: What is the goal? What areas of the book most enlightened you? Why are Jonah’s recommendations so easy to understand but difficult to implement? How did you benefit by reading this book?

Exams (120 points)

The exams will be based on the material covered in the course textbook, Operations Management, by Reid and Sanders, lecture notes and handouts. To prepare for the exams it is strongly encouraged that you keep current on the reading and answer all the homework problems assigned.

See Course Outline for scheduled date of the exam.

COURSE POLICIES (These policies are meant to be enforced.)

1.  Late submission of assignments will NOT be accepted without prior approval from the instructor except in the case of an emergency situation. The instructor is the final authority on what constitutes an emergency. E-mailed assignments are acceptable. If you must miss a class because of work, etc., it is your responsibility to get the notes, handouts, etc.

2.  All students are expected to adhere to CWRU’s Honor Code.


Date Topics and Assignments Tentative course outline

6/03 Introduction to Operations Management

Read: Chapters 1 and 2

Discussion Questions: Chapter 1: 2, 3, 4, 5, 6, 8

Chapter 2: 1, 2, 4, 5, 7, 8, 9

6/05 Product Design and Process Selection, Supply Chain Management

Read: Chapters 3 and 4

Discussion Questions: Chapter 3: 1, 2, 3, 5, 8, 9, 10

Discussion Questions: Chapter 4: 2, 3, 5, 6, 7, 8, 10, 11

6/10 Total Quality Management and Technology

Read: Chapter 5

Discussion Questions: Chapter 5: 2, 3, 5, 6, 8, 9, 10, 12

Case Study: American Ceramics and Glass Products Handout (Due 6/19)

6/12 Just In Time

Read: Chapter 7

Discussion Questions: 1, 2, 3, 5, 7, 9

Case Study: Katz Carpeting, Page 203. Answer all 4 questions (Due 6/19)

6/17 Independent Demand Inventory Management

Read: Chapter 12

Discussion Questions: 4, 5, 6, 7, 8, 9, 10, 14, 15, 18

Problems: 2, 3, 4, 6, 9

6/19 Case Study Discussions and Exam Review

6/24 Exam 1

6/26 Sales and Operations Planning/ Forecasting

Read: Chapter 13, Pages 394-405

Discussion Questions: 1, 2, 3, 5, 8, 9

Read: Chapter 8, Pages 205-223 227-231

Discussion Questions: 1, 3, 4, 5, 8

Problems: 2, 4

6/26 Master Scheduling/ Capacity Planning

Read: Chapter 14

Discussion Questions: 2, 3, 4, 5, 7

Problems: 1a, 2a, 8

7/01 Material Requirements Planning

Read: Chapter 15

Discussion Questions: 1, 2, 4, 5, 6, 8, 12

Problems: 1, 6, 11

7/03 Capacity and Location

Read: Chapter 9, Pages 246-264

Discussion questions: 1, 2, 3, 7, 9,

7/08 “The Goal” Discussion and Production Planning Review

Report on the Goal due

Discussion on Leadership Case Studies

7/10 Exam 2

7/15-7/17 Leadership- Ethics, Morals, Social Responsibility, Environmentalism and Globalization

Point/Counter Point class discussion of manufacturing/operations in relation to these important issues. Each student will submit 1 article with a brief (1-2 pages) synopsis of the article and a well thought out, researched counter point. An article with both a point and counter point is acceptable. Students will be randomly selected to discuss their articles.

Stay away from unsubstantiated opinions, politically charged literature, Oprah, The Baldwin Brothers, Julia Roberts, Sting or other such ignorant non-sense! Look for articles that seem to have some statistical merit or deliver interesting points of view from expert opinions. National columnists are OK, but, be prepared to defend your articles in class discussions! Missing one class will result in a 50% reduction in score, missing both classes will result in a score of Zero. With approval from the instructor, a score may not be penalized if additional work is completed. This option is for rare, unforeseen, absences only. The instructor is the sole judge on valid absences.

7/22 Future Trends in Operations Management