Operations

Management

Lecturers: Aneekah Fataar

 _______________________________________________________________________

Operations Management
PDBA 2011

Aneekah Fataar
BSc (Hons – Computer Science), MBA
aneekah.fataar@gsb.uct.ac.za

____________________________________________________________________________

Contents:
1. Course Introduction & Objectives pg 3

2. Intended Learning Outcomes pg 3

3. Assessments pg 4

4. Academic Requirements pg 6

5. Dates and Times pg 7

6. Session Outlines pg 8

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Course Introduction & Objectives

The Operations Management course equips students to understand, plan, and control many large
processing systems that form the core technologies of manufacturing and service organizations.
Efficient, effective, and economical operation of manufacturing and service firms requires
planning and control of product quality and process capability, materials management, capacity
planning, operations scheduling, productivity improvement, facilities location, and physical
distribution.

Operations management principles are equally applicable in managing manufacturing and

service organizations. Fast, low-cost, accurate, and uniform operations are important in service
areas such as health services, government, transportation, retail, fast-food franchises, airlines,
insurance, and banking, among others.

There are several objectives: to develop the ability to describe and analyze operations; to
understand the key operations decision areas with respect to process, capacity, inventory,
workforce, quality and measurement; to begin developing an approach to the improvement of
operations to meet strategic competitive criteria. But the most important objective is to
understand the new mind-set of creating the learning organization.

Intended Learning Outcomes

 Engage and understand the strategic perspective of Operations Management, including
market-driven operations strategy and how to make operations deliver to the promise of the
market
 Develop an ability to see process in everything and have the ability to map, and improve on
it.
 Understand the concept of Lean Thinking and its applications and potential for improving
operations
 Develop an appreciation of the importance to reflect and learn from implementations and
other attempts at running/improving operations

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Assessments
Assessment Component Group or Weighting (%) – Date & Time to be
Individual must add to 100% held/due*
(G or I)
Class participation I 5 N/A
Pre-module 2 prep I DP 27 May
Group Assignment G 20
Proposal 15 Jul
Final Document 23 Sep
Mid Term examination I 20 6 Aug
Pre-module 3 prep I DP 19 Aug
Final Examination I 50 15 Oct
Course summary and I 5 15 Oct
learning points

Class Participation (5%)

The class participation and discussion process is critical to your development and learning.
This is particularly so given the focus on case studies in this course. This has two immediate
implications:
1. Successful participation hinges on individual preparation of the case (particularly) and
readings for each session by each student.
2. Class participation is carefully evaluated and reviewed, as shown below.

Scoring per class session is based on a scale of -5 to +5, as follows:

5 Contributed refreshing new ideas or ways of thinking of value to class as a whole

1 Contributed in nominal way by asking or responding to a basic question or making a basic
comment
0 Present without contributing
-1 Not present at start (i.e. late) or present but declare lack of preparation before start
-3 Absent or if found to be unprepared
-4 Absent without prior notice on Instructor
-5 Absent without notice on Instructor within 24 hours of class ending

Students are scored at the end of each session (except for the -5 grade which must wait for the
time to elapse). If someone arrives late, the -1 is taken into account after assessing their
contribution on a positive scale. At the end of the course, scores are summed for each student.

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Course Summary and Case Learning Points (5%)
Prior to each module, you will be required to submit a response to the questions posed for each
of the cases assigned for the upcoming module. These responses should be a length of 1 page
per case and must be submitted on Instructor as per the advised dates. These pre-module
submissions will be given a grade of 1 or 0 (zero). They will not contribute to your mark as you
are being asked to do this as preparation at a time when the material is not expected to be fully
understood. Rather, we expect you to review and reflect on these submissions at a later stage
and the submissions will contribute towards qualifying for a DP for your final exam. A
submission which shows clear evidence of effort and work, will qualify for a 1. Non-
submission, or a submission, which shows lack of effort and work, will attract a 0 (zero).
Therefore, should you not undertake and show evidence of the necessary preparation, you risk
not sitting the final exam and failing the course.

During the module, you are encouraged to make a note regarding your learning points from the
case discussion after each session. These notes are to be collated, compared to your initial
responses during premodule submissions and submitted as part of your final course summary
(described below). Please limit these consolidated learning points to 1 page only and indicate
how, if at all, your mindset/views/understanding may have changed.

In addition, you will be asked for a two page summary of the course. The two page summary
should be prepared prior to the exam, and submitted with your exam script, along with your one
page of learning points. The summary should be something that you can pull out in a year’s
time to refresh your mind on the course as a whole.

Group Assignment (20%)

Each group should find a company willing to have its process/es studied. It may be a service
company, but choose one with a fairly ‘visible’ process. More importantly, choose a company
that has a specific operational problem that needs investigation.

Your task will be as follows:

 State the problem being experienced by the organization. Your group needs submit a half-
one page “proposal” of the problem you wish to study at a proposed organization. This
should be submitted on Instructor on the advised date. You will receive feedback on the
suitability of this proposal, after which you may proceed.

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  You are required to do the following:
 Prepare a Value Stream Map (not a process flow diagram!) of the process in which
in the problem is being experienced.
 Use the Value Stream Map to analyse the problem situation. This analysis may be
topped up with any other tools from the course should the VSM prove insufficient.
 Present what you believe the cause of the problem to be and prepare
recommendations or countermeasures for the problem being experienced.

You will need to make at least one ‘factory visit’ to study the company’s process. Feel free to
negotiate additional visits, but it is in everyone’s interest that you try to restrict it to just one,
well-planned visit.

At the factory/site visit you will do value stream mapping. In essence this means you should
select a product / service or product family in which the problem is occurring, and document the
physical and information flows for the process, including the forecasting, order taking and
scheduling activities. For more information on VSM’s see Slack, Chambers and Johnston: P471
and it is highly recommended to make use of the book Learning to See by Rother and Shook for
additional assistance. The GSB library has several copies.

In addition, you may wish to document the general physical layout of the facilities as impacting
on your product or service and flows and layout are often intimately linked. (This is highly
recommended).

Please present your findings in a report. Page limit: the report, excluding the title page and any
exhibits, should be typed in Times New Roman (font size12), line spacing single, and do not
exceed four (4) A4 pages.

Submit a copy of the report as per date advised in timetable. Also provide the name of the
person you contacted to arrange the visit and the address and telephone number of the company.

Academic Requirements
Academic requirements, as detailed in the Commerce Faculty handbook and PDBA Administration
Manual, apply to all courses. The following are highlighted:
 Students must achieve a minimum average of 50% in individual work to pass the course. Marks for
group assignments will not be aggregated into the final mark unless a passing grade on individual
work is achieved.

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 Deferral of examinations has to be authorised by the UCT exam deferrals committee. Ordinarily
deferrals are granted only for major medical illnesses (proof will have to be submitted) or death
within the immediate family (partner, parent or child). Deferrals are not granted automatically and
must be applied for. Until such application is made and permission is received from the UCT exam
deferral committee a grade of zero is entered against any missed examination. Lecturers and
administrators may not grant deferrals of examinations.
 A Duly Performed (DP) certificate is required to sit any final examination of a course and to pass a
course. To acquire a DP requires that a student attend all lecturers, submit all work and assignments
as and when required and achieve a minimum of 33 1/3% in all individual components of the course.
 Penalties will be applied to all late submissions except in cases where extenuating circumstances
exist i.e. serious medical reasons verified by a medical certificate or a serious life event such as death
of immediate family members (partner, parent or child). The responsibility lies with the student to
make alternative arrangements with PDBA Administration. Administration must be notified prior to
the submission date. This must be done in writing. The request will be discussed with the relevant
faculty member. Work and social commitments are not regarded as “extenuating” circumstances.
Deadlines are given to students well in advance to allow for proper scheduling and effective time
management. The following late submission penalties will apply:
 One day after deadline: 5%
 Two days after deadline: 10%
 Three days after deadline: 15%
 Thereafter: Submission will receive a 0% grade

Dates and Times (Course Sessions, Deliverable and Assignments)

Please check your timetable for any changes.

Date Time
Pre-Module 2 Work
Submit Responses to Case Preparation 27 May
Questions for Module 2
Module 2
Session 1 See timetable
Session 2 See timetable
Session 3 See timetable
Session 4 See timetable
Inter-Modular Work
Group Assignment Proposal 15 July
Preparation for Mid-term test
Mid-term test 6 August
Submit Response to Case Preparation 19 August
Questions for Module 3
Module 3
Session 5 See timetable
Session 6 See timetable
Session 7 See timetable
Session 8 See timetable
Post-Module Work
Preparation for final exam
Final Group Assignment due 23 September
Final exam 1 October
Course Summary and learning points 1 October

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Distribution of Learning Effort
Activity Approximate time to be spent (hours)
Lecture sessions 16
Individual preparation for lectures 24
Group work 10
Mid-Term Exam preparation 5
Mid-Term Exam 3
Group Assignment 20
Final Exam preparation 10
Final Exam 3
TOTAL 90 hours

Session Outlines

Session 1
Introduction to Operations

Readings:
Chapter 1, Slack, Chambers and Johnston

Case:
Concept Design Services (In Slack, P27)

Case Questions:
Prepare questions 1-3 in the textbook. NB: A group (or two) may be selected to (informally)
present their analysis.

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 Session 2
Strategic Operations Management, Problem Solving Toolkit

Readings:
Chapters 2 and 3, Slack, Chambers and Johnston

Case:
Penang Mutiara, (In Slack P56)
Build It and The Home Depot (In Reader)

Case Questions:
Penang Mutiara
1. As a group, prepare an informal presentation on how you think this hotel wins orders on the
basis of the discussion at the end of session 1 and readings in Slack, esp Ch 3, page 69.
(Consider Winners, Qualifiers and Qualifiers with potential to disqualify and your reasoning
behind your selection. For your summary, prepare a response to this question as an
individual).

Build-it and Home Depot

1. How does Home Depot win orders?
2. How might its service delivery system support the order and winners and qualifiers?
3. Why is Build It struggling?
4. How would you improve the situation at Build It?

Session 3
Process View of Operations, Problem Solving Toolkit
Introduction to Chain Gang

Readings:
Chapter 4, Slack, Chambers and Johnston
PICQMEW: Appendix A from Competitive Capabilities by Norman Faull, 1998. Cape Town:
Juta & Co. Copyright has reverted to author.
3S Model – A Primer, Adapted from Competitive Capabilities by Norman Faull, 1998. Cape
Town: Juta & Co. Copyright has reverted to author.

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Case:
Central Evaluation Unit, (In Slack, P113)

Case Questions:
Prepare questions 1 – 3 in the textbook and bring maps to class.

Session 4
Quality Management and Problem Solving Toolkit
Execute Chain Gang

Readings:
Ch 17 and 20, Slack

Case:
Hank Kolb, (In Reader)

Case Questions
1. What are the causes of the quality problems on the Greasex line?
2. Why was Hank hired?
3. What should be the responsibility of the Quality Department for the Greasex product?
4. What should Hank Kolb do?

Session 5
Operations Strategy Review
Product-Process Matrix
MTT Review

Reading:
Chapters 2, 3 and 4 Slack, Chambers and Johnston

Cases:
British Airways, Southwest Airlines, McDonalds, (All in reader)

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Case Questions
MacDonalds
1. Review the service delivery system. How does this meet the needs of the business?
2. Review the recent changes in the business, what has been their impact?

Southwest Airlines
1. What makes this airline so successful?

British Airways
1. How does BA compete in this particular market?
2. How well does the delivery system fit these market needs?

Session 6
Capacity Management

Readings:
Ch 11 Slack

Case:
I&J (In Reader)

Session 6: I&J
1. Devise an approach by which Clegg can clarify his options.
2. Use the devised approach to analyse the situation, making whatever assumptions you
deem reasonable and necessary.
3. Advise Clegg on a strategy, emphasizing dealing with the longer-term problems as you see
them.

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 Session 7 and 8
Lean Thinking

Readings:
Ch 15 Slack

Case:
Toyota Motor Manufacturing, U.S.A., Inc. (In Reader)

Case Questions:
1. As Doug Friesen, what would you do to address the seat problem? Where would you
focus your attention and solution efforts?
2. What are the principles of the Toyota Production System? Do you think the current
routine for handling defective seats deviates from the principles of the Toyota Production
System? Why/why not?
3. What are the underlying causes of the problems facing Dough Friesen?

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