OPERATIONS MANAGEMENT
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1 HARVARD UNIVERSITY JOHN F. KENNEDY SCHOOL OF GOVERNMENT Cambridge, Massachusetts OPERATIONS MANAGEMENT STM-301 SYLLABUS Spring 2008 M/W 1:10 p.m.--2:30 p.m. Room: RG-20 Course Objectives and Overview Guy Stuart T382, Version: 12/17/2007 This course is an introduction to Operations Management. It teaches how to set up, maintain and reengineer the processes that organizations use to provide services of public value. The course covers the following subjects: total quality management, process flow, systems dynamics, information technology, and performance measurement. The course is process-oriented and encourages students to wrestle with the details of how to get things done. Through this emphasis on details the course demonstrates the importance they have for the creation of public value by non-profit and government organizations. Students who successfully complete this course will be able to: a. analyze an organization s processes; b. manage processes to improve the creation of public value. The course will focus on the provision of services. As such it will be unlike traditional courses in Operations Management that focus on manufacturing processes. In addition, the course will depart from tradition in its focus on the production and flow of information. Students will learn how organizations produce and consume information and how information flow can be effectively managed to produce public value. 1
2 Course Outline The course will be taught using the case method with additional, theoretical readings. We will also use practitioner presentations and interactive computer simulations to enhance the learning experience. The major topics covered in this course are: Value Creation and Quality Management We will begin the course by looking at how quality processes create public value. Process Mapping and Capacity Analysis This section covers key concepts for analyzing the structure and capacity of processes, and introduces you to different types of processes. Systems Dynamics This section of the course shows you how to place the process analysis in the context of the organization as a system. It uses simulated games to provide an introduction to systems thinking. Information Technology This section addresses the fundamental question all managers should ask when introducing a new technology into their organization: what value does the technology add? We ask this question in a number of cases, looking at the operational and strategic benefits of IT. Scaling up We will examine the operational and strategic challenges of scaling up distributed and centralized service delivery systems. Audience The course will serve both general managers or consultants who want an understanding of how to maintain, improve or change their organization s operations and for managers with specific responsibility for day-to-day operations. There is no formal course prerequisite but previous exposure to management courses at the level of STM-101 is recommended. Requirements Class Participation % Your individual participation in class discussions will determine 40% of your final grade. Class participation is essential to the course since much of what you learn will come through conversations with your colleagues. Case Analyses -- 36% You will submit three case analyses. Each will contribute 12% to your final grade. They will be no more than 750 words long (3 double-spaced pages) each. The schedule of cases, including the cases that you can analyze, is the following: Case Analysis Due Data and Time Cases drawn from the following classes: #1 Due at time of class Jan. 30 to Feb. 13 #2 Due at time of class Feb. 20 to March 10 #3 Due at time of class March 12 to April 23 2
3 Term Project 50% Interim Project Papers 24% You will work in teams of 3 to 5 people on a project of your choice, though I will have some specific projects that I will be asking students to work on. The team will complete two interim papers during the course of the semester, each worth 12% of the course grade, and due on March 14 and April 18. The content of each paper will be specified in a separate document Interim Project Papers. Final paper 36% The final paper will incorporate feedback on the interim papers and additional research, and will be no more than 5,000 words in length and no more than 10 exhibits. Grading I will assign grades according to the following distribution: A A- B+ or lower 10-20% 20-30% 50% - 70% Materials Book available on reserve at the KSG library (5 copies in total): Total Quality Management in Human Service Organizations, Lawrence L. Martin. Russell Sage, New York, marked as [Book] Course packet available at CMO, marked as [Packet #] Online materials marked as [Online] 3
4 CLASS SCHEDULE Wednesday January 30, 2008 Value-creation through processes Transport for London: Creating Public Value for London and its 30 Million Commuters Creating Public Value -- Mark Moore, Ch. 2, pp [Packet 1] Organizations: Rational, Natural and Open Systems, Scott, W.R., pp [Packet 1] Monday February 4, 2008 Quality Management, I Middlesex County Jury System, KSG Case # C [Packet 1] Reading: At America's Service, Karl Albrecht, pp [Packet 1] Total Quality Management in Human Service Organizations, Lawrence L. Martin pp [Book] Wednesday February 6, 2008 Quality Management, II The Aravind Eye Hospital, Madurai, India: In Service for Sight -- HBS Case # [Packet 1] Service Operations Management, Christine Hope and Alan Muhleman, pp , [Packet 1] Zen and the Art of Motorcycle Maintenance, Robert M. Pirsig, pp [Packet 1] Web Links: 4
5 Monday February 11, 2008 Quality from the Perspective of the Employee Adler, P. S. (1993). "The learning bureaucracy: New United Motor Manufacturing, Inc." Research in Organizational Behavior 15, [Packet 2] Total Quality Management in Human Service Organizations, Lawrence L. Martin pp , [Book] Wednesday February 13, 2008 Quality Against Discrimination Mortgage Lending Discrimination: A Review of Existing Evidence, Eds. Turner, M. and Skidmore, F. The Urban Institute, pp [Online] Total Quality Management in Human Service Organizations, Lawrence L. Martin pp , [Book] Constructing Statistical Process Control Charts Review Session, Computer Lab Classroom, Friday, February 15 from 10:10 to 11:30 Monday February 18, 2008 NO CLASS PRESIDENT S DAY Wednesday February 20, 2008 Statistical Process Control Process Control at Polaroid (A) -- HBS Case # [Packet 2] Total Quality Management in Human Service Organizations, Lawrence L. Martin pp [Book] Constructing and Using Process Control Charts -- HBS Case # [Packet 2] 5
6 Monday February 25, 2008 Processes I Goldratt s Game in-class exercise Process Fundamentals -- HBS Note # [Packet 2] The Goal, Goldratt, E. (1992) pp [Packet 2] Wednesday February 27, 2008 Processes II Bottlenecks and Variance: Smoothing Passenger Flow at Victoria Station Note on Service Mapping -- HBS Note # [Packet 2] The Psychology of Waiting Lines HBS Note # [Packet 2] Service Operations Management, Christine Hope and Alan Muhleman, pp [Packet 2] Monday March 3, 2008 Processes III Reading Rehab -- HBS Case # [Packet 3] Production and Operations Management, M. Starr, pp [Packet 3] Wednesday March 5, 2008 Push-Pull Push-Pull Exercise in-class exercise Just-in-Time Production Controlled by Kanban -- HBS Case # [Packet 3] 6
7 Monday March 10, 2008 Process Reengineering Denise Fleury and the Minnesotta Office of State Claims -- KSG Case #C [Packet 3] **Required Readings: The Process Edge -- Peter G. W. Keen, Ch. 1, pp. 1-23, Ch.4, pp [Packet 3] Jeff Luck, John W Peabody. Improving the public sector Health Care Management Review. Frederick: Spring Vol. 25, Iss. 2; p. 34 (11 pages) [Online] Wendnesday March 12, 2008 Systems Dynamics, I -- Introduction Business Dynamics John D. Sterman, Ch 1, pp [Packet 3] Web Links: Systems Dynamics Resource Page Interim Project Paper #1 due at 5pm, Friday March 14 Monday March 17, 2006 Systems Dynamics II -- Beer Game Beer Game Wednesday March 19, 2006 Systems Dynamics III -- Beer Game Debrief Beer Game Debrief in-class discussion of game "Ante-up! Big Gambles in the New Economy -- Speed Limits: Overnight, Everything Changed for FedEx; Can It Reinvent Itself?" WSJ, 11/4/99, p. A1. [Online] 7
8 Monday March 24, 2008 NO CLASS: SPRING BREAK Wednesday, March 26, 2008 NO CLASS: SPRING BREAK Monday, March 31, 2008 Systems Dynamics IV Responding to Crises The City of Chicago and the1995 Heat Wave (A), KSG Case # C [Packet 3] TBA Wednesday April 2, 2006 Information Technology I Adding Value Case: Introducing Technology: The Multiple Pearls of London s Oyster Card **Required Readings: Advanced Fare Payment Systems, LEAP Database. [Online] Process Innovation -- Davenport, Ch.3, pp [Packet 3] Web Links: Advanced Fare Payment Systems Monday April 7, 2006 Information Technology II Impact on People The Internal Revenue Service: Automated Collection System -- HBS Case # [Packet 3] Competitive Advantage Through People, Pfeffer, pp [Packet 3] 8
9 Wednesday April 9, 2008 Information Technology III Standardization, Scale, and Network Effects E-ZPass: The Effort to Design and Implement A Regional Electronic Toll Collection System (A) KSG Case # [Packet 3] ** Required Readings "Path Dependence". D. Puffert. EH.Net Encyclopedia, edited by Robert Whaples. June 10, [Online] The Role Of Standards In The Creation And Use Of Information Systems J. West, Standard Making: A Critical Research Frontier for Information Systems, MISQ Special Issue Workshop, [Online] Monday April 14, 2008 Information Technology IV: Data and Information Data Mining: Creating Value through Information at Transport for London ** Required Readings TBA Wednesday April 16, 2008 Scaling Up, I Distributed Service Delivery Systems ** Required Readings Stuart (2007). Appropriate Fit: Service Delivery Beyond Bureaucracy, Lessons from Microfinance, in eds. J. de Jong and G. Rizvi Access to Government (Online) Hope, C. and A. Muhleman, (1997) Transportation and distribution systems Service Operations Management, (Packet) Monday April 21, 2008 Interim Project Paper #2 due at 5pm, Friday April 18, 2008 Scaling Up, II The Strategic Role of Pilot Programs Emergency Response to a Long-Term Crisis? Médecins Sans Frontières and HIV/AIDS in Ethiopia, KSG Case # [Packet 3] 9
10 ** Required Readings Davis, J. (2003) Taking Sustainable Rural Water Supply Services to Scale: A Discussion Paper. Bank Netherlands Water Partnership. (Online) Wednesday April 23, 2008 Scaling Up, III Acceptance, Ability and Authority Scale without Growth: Infonavit s Expansion in the Mexican Mortgage Market, KSG Case # ** Required Readings Andrews, M Authority, Acceptance, Ability and Performance-Based Budgeting Reforms. The International Journal of Public Sector Management, 17(4), [Online] Monday April 28, 2008 TBA Wednesday April 30, 2008 Wrap Up Final Project Papers Due, Tuesday, May 20 th at 5pm 10
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