SCHOOL OF MANAGEMENT AND PUBLIC ADMINISTRATION MG202 Operations Management (Face to Face) Semester 1, 2013 Course Outline 1.

0 General Information
MG202: Operations Management

1.1 Names of Course Coordinator and Tutor

Course Coordinator: Mr Parmod Achary Course Tutor: Ms Suwastika Naidu

1.2 Contact Details of the Course Coordinator and Tutor

Name: Parmod Achary E-mail: achary_p@usp.ac.fj Room: S209 Phone: 3232094 Consultation hours: Tuesday 10-12pm Wednesday 10-11am Name: Suwastika Naidu E-mail: naidu_s@usp.ac.fj Room: S205 Phone: 3232245 Consultation hours: To be announced in the tutorials

1.3 Pre-requisite of this Course

MG101 & MG103

1.4 Lecture Times and Venue

No. 1 2 3 Lecture Times and Venue (Laucala Campus) Day Time Tuesday 2pm -3pm Wednesday 1pm-2pm Thursday 6pm-7pm Room
092-003 092-003 092-003

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Tutorial Times and Venue

Day Monday Monday Tuesday Tuesday Wednesday Wednesday Wednesday Thursday Thursday Thursday Friday Friday Friday Tutorial Times and Venue (Laucala Campus) Time Room 8am -9am 014-009A 2pm-3pm 093-203 8am -9am 014-114 3pm -4pm 093-205 8am -9am 093-207 3pm -4pm 014-014B 4pm -5pm 093-002 8am -9am 014-113 10am -11am 093-003 2pm -3pm 014-113 10am -11am 093-203 11am -12noon 093-205 12noon -1pm 093-002

Tutorial No. 1 2 3 4 5 6 7 8 9 10 11 12 13

2.0 Brief Course Description

Operations Management (OM) can be viewed as the management of the direct resources that are required to provide an organisations goods and services (Aquilano, et al. 1999:5). An operation is where the organisations goods and services are produced and provided to customers (Schonberger & Knod Jr, 1997:4). The Operations function, therefore, provides the goods and services that the customer receives from the organisation (Dilworth 2000:5). Operations management is a discipline that studies (and practices) the process of planning, designing and operating production systems and sub-systems to achieve the goals of organizations (Martinich, 1999: 11). The first section of this course will examine the various techniques used by organisations to increase productivity, efficiency and effectiveness. The two main techniques that will be studied in this course are productivity and forecasting. The second section of this course will examine
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systems design, reliability, capacity planning, process selection and facility layout. Particularly, systems design is concerned with the various operation strategies used in designing a product. Once a product is designed the reliability of the product needs to be determined to ensure that it remains successful in the market. Capacity planning is primarily concerned with the ability of the organization to meet future demands for products and services (Stevenson, 2007:178). Process selection refers to deciding on the way production of goods and services will be organized (Stevenson, 2007:227). Facility layout is dependent on process selection. The third section of this course will examine design of work systems, learning curves, location planning and analysis, quality, inventory management and project management. Design of work systems will focus on issues such as job design, work measurement, establishment of time standards, worker motivation and compensation (Stevenson, 2007:311). Inventory management practices plays one of the key roles in determining the quality of the product. Finally project management is concerned with determining stages of activities that needs to be undertaken in completing a project. In line with the structure of USPs management program, this course focuses on the Operations function of organizations. It discusses the main tasks and problems faced by operations managers. Moreover, it provides insights on how the OM function is integrated into the functions of marketing (MG206/303), finance (AF100), human resource management (MG204/302), etc.

3.0 Learning Outcomes

On completion of this course the students will be able to: a. To gain an understanding of operations management and demonstrate that operations management addresses issues in both manufacturing and service organizations. b. To appreciate the role of operations managers and introduce the application of OM tools to other functional areas within an organization such as marketing, finance and human resource. c. To gain an understanding of why a process focus (in conjunction with a product focus) is necessary for excellence in organizational performance either in manufacturing of goods or in customer-related aspects of delivery of services. d. To acquaint with various factors, both quantitative and qualitative, that should be taken into consideration when selecting a location for a manufacturing or service organization. e. To become familiar with time-cost trade-offs involved in expediting the completion of a project. f. To clarify the strategies for developing aggregate plans and ways to identify their strength and weaknesses. g. To identify the various costs associated with carrying and maintaining inventories and deciding on the economic order quantities.

h. To identify different dimensions of quality in both goods and services and show how they relate to a firms overall strategy.

4.0 Course Materials 4.1 Prescribed Textbook

Stevenson, W.J. (2011). Operations Management (11th Ed.). NY: McGraw-Hill.

4.2 Recommended Readings 4.2.1Textbook Readings

Listed below are some of the textbooks that students could refer to for better understanding of the course. The textbooks have been arranged depending on the order of importance to the course. 1. Davis, Mark M., Aquilano, Nicholas J., & Chase, Richard B. (1999), Fundamentals of Operations Management (3rd Ed.) Irwin/ McGraw-Hill, Chicago. 2. Finch, B. J. ((2006). Operations Now. Profitability, Processes, Performance (2nd Ed.). NY: McGraw-Hill. 3. Greasley, A. (2006). Operations Management. Chichester: John Wiley & Sons, Ltd. 4. Reid, R.D. & Sanders, N.R. (2005). Operations Management. An Integrated Approach (2nd Ed.). Hoboken, NJ: John Wiley & Sons, Inc. 5. Schonberger & Knod Jr. (1997). Operations Management. Customer-Focused Principles (6th Ed.). Chicago: Irwin. 6. Chand, A. (2011). Global Supply Chains in the South Pacific Region: A Study of Fijis Garment Industry. Nova Science Publishers: USA.

4.2.2 Journal Article Readings

Listed below are some of the journal articles that students could read to get better understanding of the course. There are numerous good articles published in the Operations Management Journal, hence students can also refer to these articles whilst discussing case study presentations in the tutorials.

1. Barratt, M., Choi, T.Y., and Li, M. (2011). Qualitative Case Studies in Operations Management: Trends, Research Outcomes, and Future Research implications. Journal of Operations Management, 29(4), 329-342. 2. Flynn, B.B., Schroeder, R.G., Sakakibara, S. (1995). The Impact of Quality Management Practices on Performance and Competitive. Decision Sciences, 26(5), 659-691. 3. Goodale, J.C., Kuratko, D.F., Hornsby, J.S., and Covin, J.G. (2011). Operations Management and Global Entrepreneurship: The Moderating Effect of Operations Control on the Antecedents of Corporate Entrepreneurial Activity in Relation to Innovation Performance. Journal of Operations Management, 29(1-2), 116-127. 4. Sighal, K., and Singhal, J. (2011). Opportunities for Developing the Science of Operations and Supply Chain Management. Journal of Operations Management (In Press).

5.0 Course Content

Weeks 1 Chapter Introduction Operations Management to Course Content 2 Introduction Operations Management to 3 Operations Strategy and Competitiveness Chapter Readings 1

Forecasting Demand

Operations management and three major functional areas of organisations. Service and manufacturing operations. Operations function and the nature of the operations managers job. Design and operation of production systems. 1 Key aspects of operations management decision-making. Historical evolution of operations management. Current trends that impact operations management. Primary ways that business organisations 2 compete. Poor competitiveness of some companies. Strategy and tactics. Organisation strategy and operations strategy Time-based strategies and productivity. 3 Good forecast, forecasting process, at least three qualitative forecasting techniques. Qualitative and quantitative approaches to forecasting.
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Averaging techniques, trend and seasonal techniques, and regression analysis, and solve typical problems. Two measures of forecast accuracy. Two ways of evaluating and controlling forecasts. Major factors to consider when choosing a forecasting technique. Product and Service Strategic importance of product and Design service design. Key reasons for design or redesign. Main objectives of product and service design. Standardization. Importance of legal, ethical, and environmental issues in product and service design. Phases in product design and development. Main sources of design ideas. Manufacturing design and service design. Phases in service design. Well-designed service systems. Challenges of service design. Reliabilty Reliability Reliability computations. Redundancy in a system. Capacity Planning Strategic importance of process selection. Influence that process selection has on an organisation. Basic processing types. Automated approaches to processing. Need for management of technology. Reasons for redesign of layouts. Basic layout types. Main advantages and disadvantages of product layouts and process layouts. Simple line-balancing problems. Develop simple process layouts. Strategic importance of process selection.
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4&4S

Process selection and Facility Layout

Influence that process selection has on an organization. Basic processing types. Automated approaches to processing. Need for management technology. Reasons for redesign of layouts. Basic layout types. Advantages and disadvantages of product layouts and process layouts. Simple process layouts.

Design of Systems

MID SEMESTER EXAM MID SEMESTER BREAK (This week will not be counted as week 8) Work Work design. Two basic approaches to job design. Advantages and disadvantages of specialization. Knowledge-based pay. Methods analysis. Four commonly used techniques for motion study. Reasons organisations need to make location decisions. Location decisions are important. Options available for location decisions. Some of the major factors that affect location decisions. Decision process for making these kinds of decisions. Techniques presented to solve typical problems. Quality and consequences of poor quality. Determinants of quality. Costs associated with quality. Quality awards. Philosophies of quality gurus. TQM Problem solving, process improvement and use various quality tools.
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Location Planning and Analysis

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Quality

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Inventory Management

Major reasons for holding inventories. Requirements for effective inventory management. Nature and importance of service inventories. Periodic and perpetual review systems. Objectives of inventory management. A-B-C approach. Basic EOQ model and its assumptions. Economic production quantity model. Quantity discount model. Reorder point models. Situations in which the single-period model would be appropriate. Behavioral aspects of projects in terms of project personnel and the project manager. Nature and importance of a work breakdown structure in project management. General description of PERT/CPM techniques. Construct simple network diagrams. Kinds of information that a PERT or CPM analysis can provide. Networks with deterministic times. Networks with probabilistic times. Activity crashing and solve typical problems.

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Project Management 12 & 13

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Revision and Format for Final Exam

6.0 Teaching Methods

This course will be taught in face to face mode this semester. In order to pass the course, students need to attend all the lectures and one tutorial per week. The tutorial signup sheets will be placed in the noticeboard outside room s205 so please go and sign up for one tutorial after your first lecture. Students are also requested to visit the moodles regularly and download the lecture notes that are discussed in the class. A set of calculation questions will be will be placed in the moodles for tutorial discussions. It is very important for students to answer these questions before coming to the tutorials, as similar kinds of questions will be appearing in the exams. There will be 5 quizzes given in the lecture times and out of these 5 quizzes 3 will be
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counted for the final exam coursework. Some discussion questions will also be posted in the moodles and students are requested to actively participate in these discussion questions. There will also be case study presentations in the class. Students will be divided into groups of 3 students and case study topics will be from the textbook. The tutor will discuss more about the case study presentation in the tutorials.

7.0 Assignments and Evaluation

Components 1 2 3 3 Quiz X 5 Case Study presentation Attendance & Participation Mid Semester Test Weeks and Due Dates Percentage Announced in the lectures 15% Announced in the tutorials 10% Announced in the lectures 5% 20% 50% 50% 100%

Continuous assessment total Final Examination Total

Note: Minimum of 40% marks (20 out of 50) is required in both the course work and final examination separately, in addition to an overall pass mark in the course (50 out of 100) to pass this course.

7.1 Class quiz (15%)

There will be no written assignments in this course. Students will be required to do five quizzes during the lecture times. Each quiz will be worth 5 marks and additional quizzes may be given to the students who missed the class for genuine reasons. Out of the 5 quizzes that students will do in the lectures, only 3 will be counted for the final coursework.

7.2 Seminar and Case Study Presentations (10%)

Students will be required to divide themselves up into groups consisting 3 members within each tutorial group. Each group will be doing one (1) case study presentation. All the team members will need to present. No oral presentations are to be read (note- cards can be permitted as reference guide). Student presentations are to be made in a relaxed, confident and professional manner. All team members should actively engage in the presentation and discussion that follows the presentation. The use of visual aids (laptop/projector; overhead projector, charts, whiteboard and handouts) is recommended. Bookings for the use of visual aid need to be arranged with USP Media Centre. Full details of case study topics will be specified in the tutorial outline posted on class share.
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7.3 Tutorial overall attendance & participation (5%)

The tutorials will focus on developing people skills and competencies. Students will be working in groups as well as individually within their tutorial groups. Every week, there will be group discussions/presentations, etc. on a particular topic. There are several methods of active class participation and some of them are listed below which shall be used as a criteria for assessing participation. Asking questions about text or case material, Making observation about text or case material, Making insightful comments or asking penetrating questions during tutorials or at appropriate time during case and seminar presentations, and Relating assigned material to other areas of study or current events in the Pacific region.

7.4 Mid Semester Test (20%)

Mid semester test is compulsory and all students are expected to sit for the mid semester test. The date and the venue of the mid semester test will be announced in the lecture. The mid semester test will incorporate questions ranging from definitions to calculations. Hence students should be well prepared to do these types of questions.

7.5 Final Examination (50%)

Your final examination is 3 hours long. It will make up the other 50% of your final score. We will post past year final examination papers in moodle shell for revision purposes. Remember that your final examination may differ in content and structure from the past year sample papers. Revision classes will be conducted in tutorials in advance to prepare students for final examination.

7.6 Grades
The letter grade which you will receive for the course will be determined according to the following numerical equivalents: Your course results will be graded on the following basis:

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Note: If you fail to sit the final examination, you will receive an EX grade, which is a FAIL grade. If you were sick and unable to sit the final exam, and you have done well in your coursework (at least a B grade), you may apply for an Aeogrotat Pass. If you could not sit the exam because of a death in the family or any other personal reasons, you may apply for a Compassionate Pass. Check with Student Academic Services (SAS) for the appropriate forms which you need to complete very soon after the examination date. For both types of applications, you will need evidence, such as a medical certificate. If you do not turn up for your final examination, you will get an EX grade, which is a fail grade.

8.0 Course Policy 8.1 Policy for Late Assignments

Please note that the due dates for assignments are to be strictly followed. The School of Management and Public Administration policy of 10% penalty per day for any late submission of assignment will be strictly followed.

8.2 Plagiarism and Dishonest Practice in Coursework:

If you are found copying, you will be totally penalised and will be awarded zero marks. (a) Plagiarism in coursework is the taking and using of another persons thoughts, writings, inventions or other work as ones own. It includes copying from a current or past student or using someone elses work without indicating the source. (b) Dishonest practice in coursework is cheating or being party to cheating or misconduct in tests, laboratory work or any other type of coursework. It includes submitting work for
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assessment that is to be counted towards a final mark if that work has been previously submitted for the same or other course(s). (c) Plagiarism and dishonest practice in coursework are punishable academic offences. (d) Where a member of academic staff has reasonable grounds to believe a student has been guilty of plagiarism or dishonest practice in coursework, that student shall be liable to: (i) be reprimanded by the Head of School; and/or (ii) have their marks for the relevant piece of work reduced by the Head of School; and/or (iii) be awarded zero marks by the Dean or nominee for the relevant piece of work; and/or (iv) be reported to the Dean. (e) The Dean shall have discretion to refer the offence to the Student Development Committee. (Source: University of the South Pacific. 2012. USP Calendar. University of the South Pacific, Suva, Fiji: 455-459).

8.3 Student and Staff Conduct

The University has statutes and regulations on the expected behaviour of students as well as its staff members. It is important that you familiarize yourself with these regulations. The whole idea is to ensure that the members of the University community are able to work, study, learn, participate and share in the academic and social aspects of the University life in a respectful and safe environment. These statutes and regulations could be obtained from the Student Union body or at the Counseling Centre. In short, have respect for all.

8.4 Academic Grievances

Should this course not meet your academic expectations, please talk to your tutor, the course coordinator or the Head of School.

8.5 Student Support

The staff at the SLS centre will provide assistance on your academic performance should you need help. However, if you are experiencing personal problems, the people at the Counseling Centre will be available to provide assistance and counseling. Dont forget that the USP staff would like every student to have a positive experience while studying at the University.

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8.6 Graduate Attributes

USPs academic programs will promote the development of the following five attributes in all its graduates: (1) academic excellence; (2) intellectual curiosity and integrity; (3) capacity for leadership and working with others; (4) appreciation of the cultures of the Pacific islands; and (5) cross-cultural competencies. Prepared by: Parmod Achary Lecturer School of Management and Public Administration The University of the South Pacific Suva, FIJI.

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