Supply Chain and Operations Management (SCM 2160-A02/A03) Course Outline 1

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1 Semester: Winter 2016 Supply Chain and Operations Management (SCM 2160-A02/A03) Course Outline 1 Date and Time: Tuesdays and Thursdays (A02: 11:30-12:45; A03: 13:00-14:15) Instructor: Office: Office Hours: COURSE DESCRIPTION Sara Hajmohammad 632 Drake Centre Flexible (open door policy) / By appointment ( ) When thinking of operations, many people envisage factories (making things) and some picture hospitals (serving people). The field of operations entails both, as well as much in between. Organizations in all industries use operations to produce and deliver their goods and services. These include government services, financial institutions, education, health, manufacturing, transportation, utilities, as well as resource industries such as mining, forest products, and agriculture. What all organizations have in common are the processes that transform their inputs into outputs (goods and services). Operations management is about the design, planning, operation, and improvement of these transformation processes. Organizations also need to manage the goods and services that are moved to (inbound) and from (outbound) these transformation processes, called supply chain management. The following generic diagram illustrates an operation and its associated supply chain, including their principal components. Our interest in this course centres on the management of these processes so that the operations and supply chain management function supports corporate strategy and contributes as much as possible to the enterprise. This course will help you prepare for a number of management roles. As a customer, banker, or investor, you might need to assess an organization s capability to produce and deliver its goods or services on time with the needed cost and quality. As a general manager or a functional manager outside of operations, you might need to help your operations to increase its contribution to the 1 If you are a registered student in sections A02 or A03 of SCM-2160, please ALWAYS refer to the LATEST version of the Course Outline/Course Schedule, available on UM LEARN! Page 1 of 14 Revision: Dec. 13, 2015

2 enterprise. As an operations manager, you will be challenged to continuously improve your technologies, structures, and systems to maintain operations as a key source of sustainable competitive advantage. (Inbound) Supply Chain Management (Outbound) Configuration Technology Product Process Suppliers Goods & Services Inventory Structures People Facilities Equipment Suppliers Inventory Customers Goods & Services Systems Quality Measures Motivation Production Products Controls & Decisions COURSE LEARNING OUTCOMES The Supply Chain and Operations Management course aims to help you prepare for a general management career through three development objectives: (i) acquire a significant grasp of the body of knowledge in operations and supply chain management; (ii) acquire a management point of view; and (iii) enhance your confidence in addressing operations issues. 1) The first goal is to expose you to the fundamental ideas of operations. By the end of the course you should be able to do the following: a) Use operations and supply chain s primary terms and analysis. b) Identify the major components of the operations and supply chain systems. c) Identify, define, analyze and propose workable solutions to operations problems. d) Analyze the important quantitative and qualitative factors in specific operations situations and make appropriate trade-offs between them. e) Apply appropriate techniques and concepts (To put theory into practice). f) Differentiate between: major/minor; short-term/long-term; the pros/cons of alternative solutions in practical situations. In short, develop judgment regarding Page 2 of 14 Revision: Dec. 13, 2015

3 operations decisions. 2) The second objective aims to develop your general management point of view. This course increases your abilities in the following areas: a) Discover and clearly define problems. b) State and analyze the causal sequence of circumstances that might be contributing to such problems. c) Generate and critically evaluate a series of plausible alternatives to resolve these problems. d) Decide which alternative or combination of alternatives is the best. e) Develop an implementation program and action plan that provides the best chance of solving the problems. 3) The third objective intends to enhance your comfort level towards the operations and supply chain management area and some of its associated technologies. This course will help you develop the abilities below: a) Discuss problems with operations and technical experts. b) Solve operations problems within your own jurisdiction. c) Identify the skills required in the people you must call on for assistance. d) Evaluate the consequences of actions taken in the operations and supply chain area for other parts of the organization and vice versa. e) Organize and present your proposed solution in a credible and persuasive manner. At the conclusion of this course, you should appreciate that operations and supply chain management is not simply a set of well-understood "nuts-and-bolts" techniques. Rather, it is primarily a management discipline that is strategically important for survival in today's more competitive environment. AACSB ASSURANCE OF LEARNING GOALS AND OBJECTIVES The Asper School of Business is proudly accredited by AACSB. Accreditation requires a process of continuous improvement of the School and our students. Part of student improvement is ensuring that students graduate with the knowledge and skills they need to succeed in their careers. To do so, the Asper School has set the learning goals and objectives listed below for the Undergraduate Program. The checked goal(s) and objective(s) will be addressed in this course and done so by means of the items listed next to the checkmark. Page 3 of 14 Revision: Dec. 13, 2015

4 Goals/Objective in the Undergraduate Program 1 Quantitative Reasoning Determine which quantitative analysis technique is appropriate for solving a specific problem. Use the appropriate quantitative method in a technically correct way to solve a business problem. Analyze quantitative output and arrive at a conclusion. 2 Written Communication Use correct English grammar and mechanics in their written work. Goals/ Objectives Addressed in this Course Course Item(s) Relevant to these Goals/Objectives Modules 1~4; Quantitative analysis in case discussions Modules 1~4; Quantitative analysis in case discussions Quantitative analysis in case discussions Written case summaries Communicate in a coherent and logical manner. Written case summaries Present ideas in a clear and organized fashion. 3 Ethical Thinking Identify ethical issues in a problem or case situation. Chapters 1 and 2 (Sustainability issues) Identify the stakeholders in the situation. Chapters 1 and 2 Analyze the consequences of alternatives from an ethical standpoint. Discuss the ethical implications of the decision. 4 Core Business Knowledge Entire course COURSE MATERIAL (AVAILABLE AT U OF M BOOKSTORE) Jacobs, F.R., Chase, R.B., and Balakrishan J. (2013), Operations & Supply Chain Management: The Core, Canadian Edition: McGraw-Hill Ryerson Package of cases and readings METHODS OF INSTRUCTION Case Studies: Each of the teaching case studies for this course presents an operations management situation in which a decision must be made in light of a number of trade-offs and alternatives. For sessions in which we do a case discussion, class time will be devoted to discussing the situation, the managerial and technical implications of various options, and the actions to be taken to implement the preferred options. There is no one right answer to a case, but there are definitely approaches that address the issues and recognize the trade-offs involved. Thus, the lack of a single correct answer does Page 4 of 14 Revision: Dec. 13, 2015

5 not imply that all suggestions are equally valid. For each of the case sessions, you have been assigned some "Questions for Consideration" (see page 13). These questions will help you focus on certain aspects of the material. In session 2, we will discuss how you should approach the case analysis task in general. Study Groups: During the first two sessions, you should form study groups of six to eight people. The purpose of these groups is to help you learn by discussing each case or session with others prior to class. As well, I may periodically ask you to perform other group tasks. Before the third session, all groups should me the name and student number of their members and indicate where and when they propose to meet. Anyone not in a group will be randomly assigned to a study group. Other Methods include lectures, discussions, exercises, mini-tests, site visits, research projects, and student presentations. EVALUATION AND FEEDBACK At the end of the semester, final grades will be computed by weighing your scores on each of the following components: Participation: Attendance & Contribution 20% Mini-Tests 30% Group Assignment 5% Group Presentation 10% Final Exam 35% The following table shows the tentative grade cut-offs: Cumulative Marks Grade Performance 92 x 100 A+ Excellent 84 x < 92 A Very Good 76 x < 84 B+ Good 70 x < 76 B Satisfactory 65 x < 70 C+ Marginal 60 x < 65 C Unsatisfactory 50 x < 60 D Unsatisfactory < 50 F Unsatisfactory These tentative cut-offs are subject to adjustment up or down depending on the relative performance of the current class. The grades may also be compared with other instructors to maintain overall fairness. Page 5 of 14 Revision: Dec. 13, 2015

6 Participation: Attendance & Contribution (20%) Attendance is very important in this class. To miss even one session is to miss a critical part of the course. Failure to prepare should not be used as a reason for being absent. It is better to come unprepared than not to show up at all. Typically, attendance merits 20% of the participation score for each session. If you are absent in a session, you will lose the whole participation score for that session (If you plan to be absent, you should inform me by before class). If you are absent in more than five sessions, you will lose the total 20% participation score. Much of the learning from this course will occur as we exchange ideas during class sessions. Therefore, you should arrive at each class session having carefully read the assigned readings and case studies so that you can make active and informed contributions to class discussions. Generally, you may choose your moments. However, I may sometimes call on you for your contribution or I may include your name in a list of people from whom I expect to hear. Examples of positive contribution include, but are not limited to, being involved in a discussion of assigned material, arguing your point of view during a case discussion, asking a relevant question, suggesting an alternate viewpoint, redirecting our attention to something else in need of discussion, or being actively involved in in-class exercises and other activities. You do not have to have the "right answer". In evaluating your participation, both the quantity and the quality of your contributions are considered. I judge your participation for each session on a scale of 1 to 5, where 5 indicates an extensive contribution and 1 indicates mere attendance and no contribution. Before each case discussion session, you should submit a Case Reflection and Analysis report (electronic or hardcopy), using the case s "Questions for Consideration" as a guideline. This report should not be more than 2 pages (single-spaced lines, font: Times New Roman 12, 1 margins). These reports will be graded on a satisfactory/nonsatisfactory basis and will merit half of your participation score for that specific session. Mini-Tests (30%) These are two short tests, with a score of 15% each. Each one will cover the reading assignments for a number of sessions but not the content of any cases. The nature of the tests will be discussed in class, as we approach the test sessions. Group Assignment (5%) This is a 24-hour group assignment. The details will be discussed in class. Page 6 of 14 Revision: Dec. 13, 2015

7 Group Presentation (10%) Each study group should visit one operations facility in Winnipeg area. The group members are responsible for making all arrangements for the visit (including choosing a site and lining up contacts). At the end of the semester, each group should provide a 10-minute presentation of the site visit. Groups should me their final presentation at least 24 hour before their scheduled presentation session. The presentations will be evaluated based on a rubric which will be discussed in class. All group members will share the same grade, with two exceptions: (1) they fail to be present for their own or other groups presentations, and (2) if I notice evidence of slacking/free riding by a group member(s). Before the site visit, you will be asked to sign a release form concerning these site visits. If you prefer not to sign the form, that would be ok, but you should not attend the site visit. If any of the groups cannot or prefer not to do the site visit, they should do a research project on an operations/supply chain-related topic upon my approval. Final Exam (35%) The final exam will be a closed-book exam, which is designed to test your knowledge of the assigned readings, cases, and text material. It may consist of various types of questions (e.g., case scenario/vignette, essay style, short answer, multiple-choice, problems). The only electronic device allowed will be a basic (non-text-capable) calculator and the only other material allowed will be a hard-copy English- language dictionary. This course is not quantitatively oriented. Thus, the Final Exam will not emphasize on problem sets, mathematics, or quantitative techniques. Nevertheless, you will be responsible for mastering a limited set of quantitative approaches included in this course. The details of the exam will be discussed in class, as we approach the exam date. OTHER INFORMATION AND REQUIREMENTS Class seating and name cards: Please choose a permanent seat at the beginning of our second session. As well, bring your name cards to each session. I need to learn your names quickly; these arrangements help me to do so. Deferments: No make-up mini tests and no extensions for group presentations will be provided. If you have a valid medical certificate for missing the tests or the presentation, your score will be adjusted to the final exam. You will be allowed to write a deferred final exam if you provide proper medical documentation to the administrative office. Page 7 of 14 Revision: Dec. 13, 2015

8 ACADEMIC INTEGRITY It is critical to the reputation of the Asper School of Business and of our degrees that everyone associated with our faculty behaves with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of Manitoba Graduate Calendar addresses the issue of academic dishonesty under the heading Plagiarism and Cheating. The statements on academic dishonesty including "plagiarism and cheating" and "examination personation" can be found in the General Academic Regulations of the Academic Calendar. Specifically, acts of academic dishonesty include, but are not limited to: Using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words. Duplicating a table, graph or diagram (in whole or in part) or paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation), without referencing the source. Copying the answers of another student or providing answers to another student in any test, examination, or take-home assignment. Taking any unauthorized materials into an examination or test or accessing tests prior to the time and date of the sitting. Impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any test or examination. Changing name or answer(s) on a test after that test has been graded and returned. Submitting the same paper or portions thereof for more than one assignment, without discussions with the instructors involved. Many courses in the Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of group projects, all group members should exercise special care to ensure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to a specific individual(s). Some courses, while not requiring group projects, encourage students to work together in groups (or at least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as it related to academic integrity with their instructor to avoid violating this policy. In the Asper School of Business, all suspected cases of academic dishonesty are passed to the Dean s office in order to ensure consistency of treatment. Page 8 of 14 Revision: Dec. 13, 2015

9 Tentative Course Schedule (Revision: Dec. 13, 2015) Session Class Activities Readings Assignments Due Introduction Thu, Jan. 7 (1) Tue, Jan. 12 (2) Introduction to the course o Course outline o Introduction, expectations and prior knowledge/experience Discussion o How to prepare for a case session o Hillview Hospital: The Hand Soap Decision Thu, Jan. 14 (3) Lecture and Discussion o What is operations and supply chain management? o Operations strategy Textbook: Ch. 1 & 2 Study group members and schedules Module 1: Process Management Tue, Jan 19 (4) (End of registration revision period) Thu, Jan. 21 (5) Lecture and Discussion: Process analysis o Process flowcharting o Process types o Process performance o Little s law Lecture and Discussion: Managing strategic capacity o Learning curve o Capacity planning Textbook: Ch Textbook: Ch Tue, Jan. 26 (6) o Process fundamentals o Capacity analysis: Sample problems Case Package: Process fundamentals + Capacity analysis --- Thu, Jan. 28 (7) Lecture and Discussion: Strategic process design o Production processes o Product-process matrix o Break-even analysis Textbook: Ch Page 9 of 14 Revision: Dec. 13, 2015

10 Tentative Course Schedule (Revision: Dec. 13, 2015) Session Class Activities Readings Assignments Due Tue, Feb. 2 (8) o National Cranberry Cooperative (Abridged) Case Package: National Cranberry Cooperative Case Report 1 Thu, Feb. 4 (9) Mini-Test 1: Content-based Sessions 3-8 s material --- Module 2: Production Planning Tue, Feb. 9 (10) Thu, Feb. 11 (11) Lecture and Discussion: Forecasting o Qualitative techniques o Quantitative techniques Review of Mini-Test 1 Lecture and Discussion: Sales and operations planning o Aggregate operations planning Textbook: Ch Textbook: Ch Mid-Term Break Tue, Feb. 23 (12) o MacPherson Refrigeration Limited Case Package: MacPherson Refrigeration Ltd. Case Report 2 Thu, Feb. 25 (13) Lecture and Discussion: Material requirements planning o Master production scheduling o Bill of materials o Material requirements planning Textbook: Ch Tue, Mar 1 (14) o Illustrious Corporation Site Visit and Group Presentation Instructions Case Package: Illustrious Corporation Case Report 3 Presentation Topics Site Visit Release Forms Thu, Mar. 3 (15) Lecture and Discussion: Inventory management o Purpose of inventory o Inventory costs o Inventory systems Textbook: Ch. 10 Case Package: McLeod Motors Case Report 4 o McLeod Motors Page 10 of 14 Revision: Dec. 13, 2015

11 Tentative Course Schedule (Revision: Dec. 13, 2015) Session Class Activities Readings Assignments Due Tue, Mar. 8 (16) Mini-Test 2: Content-based Sessions s material --- Module 3: Supply Chain Management and Quality Management Thu, Mar. 10 (17) Lecture and Discussion: Lean supply chains o Lean production o Toyota production system o Lean supply chain Textbook: Ch. 12 (Be well-prepared to discuss different aspects of Toyota Production System) --- Tue, Mar. 15 (18) Lecture and Discussion: Supply chain management o Strategic sourcing o Bullwhip effect o Outsourcing and vertical integration o The ITC e-choupal Initiative Textbook: Ch. 13 Case Package: The ITC e-choupal Initiative Case Report 5 Thu, Mar. 17 (19) Tue, Mar. 22 (20) Thu, Mar. 24 (21) Lecture and Discussion: Quality management o Quality specifications and costs o Quality management systems o Quality management tools o Statistical process control o Deutsche Allgemeinversicherung (DAV) Review of Mini-Test 2 No Class; Group Assignment Textbook: Ch Case Package: DAV Case Report 6 Module 4: Project Management Tue, Mar. 29 (22) Lecture and Discussion: Project management o Project organization structures o Project constraints o Work breakdown structure o Critical path model Textbook: Ch Page 11 of 14 Revision: Dec. 13, 2015

12 Tentative Course Schedule (Revision: Dec. 13, 2015) Session Class Activities Readings Assignments Due Site Visit and Research Project Presentations Thu, Mar. 31 (23) Tue, Apr. 5 (24) Thu, Apr. 7 (25) Group Presentations --- Presentations Group Presentations --- Presentations Group Presentations --- Presentations Page 12 of 14 Revision: Dec. 13, 2015

13 CASE DISCUSSIONS SESSIONS: QUESTIONS FOR CONSIDERATION National Cranberry Cooperative (Abridged) 1. Prepare a detailed flow diagram showing how "process fruit" is processed at RP1. Be sure to distinguish between wet and dry berries. 2. Identify the capacities at each stage of the process. Please do your analysis in barrels and barrels per hour. (Note: bbls. = barrels) 3. What are the current bottlenecks and how might they change? 4. As Mel O'Brien, what facilities changes, if any, would you propose for RP1 for the 1981 season? What factors influence your decision? 5. How would you implement your plan? MacPherson Refrigeration Limited 1. Figure out how Linda calculated the three aggregate plans. 2. Evaluate the following trade-offs at MacPherson: a. Holding inventory vs. Laying off and rehiring b. Laying off and rehiring vs. Carrying idle workers c. Hiring and laying off vs. Running Overtime d. Holding inventory vs. Running Overtime 3. Explore the effects of production rate, hiring, layoff, and overtime on the total cost by using the Excel worksheet available on UM Learn. Illustrious Corporation 1. What is the difference between dependent and independent demand? 2. As Nancy Barfield, prepare the operating plan for the next ten weeks. (There is an Excel worksheet available on the UM Learn to help with your calculations. The case report would be the completed Excel sheet.) 3. What does your plan tell you and what might you do about it? McLeod Motors LTD. 1. What functions does the inventory serve at McLeod Motors? 2. Prepare a process flow of the BN production process. Identify where Work-in- Process (WIP) inventory exists in the system. What is the cycle time of each stage of the process (in days, per batch)? What is the throughput time of the whole process? 3. Calculate the amount of WIP in the process given that production should meet total demand of 2500 units/week (i.e., 2 batches/week). 4. Answer questions 2 and 3 assuming that BN is produced in assembly line. Assume Page 13 of 14 Revision: Dec. 13, 2015

14 that it takes 1 min for each unit to move from each stage to the next. 5. Why might the WIP inventory level at McLeod Motors have increased? 6. As Sue Reynolds, what action would you recommend to John Ingram? The ITC e-choupal Initiative 1. What was ITC's motivation for creating the e-choupal? 2. What were the old and new physical flows and information flows in the channel? 3. What principles did ITC employ as it built the newly fashioned supply chain? 4. What barriers did ITC face in embarking on this project? 5. As Mr. Sivakumar, how do you plan to proceed to develop this platform for the future? Deutsche Allgemeinversicherung 1. Why is DAV using Statistical Process Control (SPC)? What are the primary challenges in applying SPC to a service industry compared with manufacturing? 2. If you were to explain the concept of a p-chart to, say, a group of bank tellers who have little background in SPC, how would you do it? 3. The first twelve weeks of the data in Exhibit 4 represent the diagnostic period for the Policy Extension Group. What are the 3-sigma control limits for the process? In which of the subsequent weeks is the process out of control (if any)? Draw the control chart. 4. As Annette Kluck, what are your specific implementation plans? How do you intend to begin improving the performance of the operation? Page 14 of 14 Revision: Dec. 13, 2015

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