E-mail Address: glenn.ismond@ad.umanitoba.ca Telephone: 474 - TBA

Course SCM 2160 Supply Chain and Operations Management Fall Term 2013 Section A03 Tu/Th at 11:30 a.m. in Room 115 Drake Centre Section A04 Tu/Th at 1:00 p.m. in Room 117 Drake Centre Glenn Ismond Office Hours: 8:00 a.m. to 11:00 a.m. on Tu/Th Office: TBA Drake Centre E-mail Address: glenn.ismond@ad.umanitoba.ca Telephone: 474 - TBA INTRODUCTION Operations Management concerns the management of the value-added tasks that transform inputs into outputs. An Operations Manager is principally concerned with the design, planning, direction, and control of facilities, processes, and activities required to transform material, labour, capital, energy, and skills into goods and services, henceforth called products. COURSE OBJECTIVES The major objective of this course is to introduce you to the fundamental concepts of Operations Management from a general management perspective. Our discussions will include references to some broader issues facing businesses in the 21 st Century, namely ethics and corporate social responsibility. You will have opportunities to enhance your skills in critical thinking, quantitative analysis, communication (written and spoken), teamwork and leadership. At the conclusion of this course, you should appreciate that Operations Management is primarily a management discipline that is strategically important for survival in today s very competitive environment. COURSE MATERIAL 1. Jacobs, F. Robert, Chase, Richard B., Balakrishnan, Jaydeep, and Snider, Brent. (2013). Operations and Supply Chain Management: The Core, Second Canadian Edition, Toronto, McGraw- Hill Ryerson. 2. Package of Cases and readings, mainly from the Harvard Business School or the Richard Ivey School of Business in the Bookstore. Be sure to purchase the Ismond A03/A04 package. 3. Class Hand-outs 4. Access Code for Littlefield Technology Game available from the BookStore. METHODS OF INSTRUCTION Case Studies The primary method of instruction will be the analysis and discussion of case studies. This requires active student participation. Each of the teaching case studies for this course represents an Operations Management situation in which a decision must be made in light of a number of tradeoffs and alternatives. Class time on Case Days will be devoted to discussing the situation, the managerial and technical implications of various options, and the action 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 tradeoffs involved. Thus, the lack of a single correct answer does not imply that all suggestions are equally valid. Page 1 of 13

Other Methods While discussing cases will be the most common method of instruction, other activities will be employed from time to time. Examples include but are not limited to: the discussion of textbook material, hand-out articles, exercises, and student presentations. PERFORMANCE EVALUATION Class Participation... 30% Mini-Tests (two at 10 marks each)... 20% Littlefield Technology Simulation... 15% Formal Group Presentation... 10% Final Examination... 25% Total... 100% Participation Participation is very important. I expect you to be prepared for each and every class discussion, so that you can be an active participant in advancing the learning of the class. Participation means making a useful contribution in a fair number of classes during the term. On any given day, I may call upon you without any notice, AND you can indicate your willingness to join the discussion by raising your hand. On those certain rare occasions when you may not be prepared to participate in the discussion PLEASE let me know by voice-mail or E-mail, so that neither you nor I are embarrassed in class. I will simply expect you to make your contribution in other discussion sessions. I define a useful contribution as any contribution that pushes the understanding of the class forward. You could argue your point of view during a case discussion, ask a relevant question, suggest an alternative viewpoint, and/or redirect our attention to another topic which had not been adequately covered. You do not have to be a top participant in every class, nor do you have to have the right answer when you do participate. Do not be afraid to speak up simply because you think your ideas might be challenged; this is the place for such challenges so long as they are made politely. Please focus on what was said, and do not attack the speaker. The Participation Grade is meant to be a stimulant to discussion, not a deterrent. I judge Participation for each session on a scale of 0 to 4. A 0 indicates no contribution, and you can earn a 0 by being silent or absent (more information on this topic later). I expect you to attend every class, but being here is not the same thing as Participation. If your contribution only consists of introducing case facts, it is probably worth a 1. When you combine miscellaneous case facts into new data or you begin to make inferences, you will probably earn a 2 or a 3. A 4 is an outstanding contribution, recognized by everyone present. Negative assessments of Participation will be made in the following instances (but are not restricted to): repeatedly arriving late to class, poor attendance, failure to notify your instructor of your absence and disruptive activities (associated with the use of electronic devices) during class. At the end of the course, I will determine overall Participation by assigning grades to the best and the least good participants, and scaling others accordingly. Note: This makes it possible for everyone to do well in Participation. Page 2 of 13

Mini-tests. Mini-tests are multiple-choice tests, based on assigned textbook material. Each mini-test will be administered twice, first individually and then as a group exercise. It is important to master the course content as soon as possible but scarce class time is best spent on other activities. Mini-tests are used to help you "get ahead" with the course content so you will be able to make more informed contributions in other class activities. The mini-test procedure is a good, well-developed and welltested method for doing this. The approach serves two purposes. First, it encourages you to be prepared to do your fair share in upcoming sessions. Second, it should raise your group's level of understanding of the assigned textbook material beyond the level of any individual group member. More detail about the mini-test requirements and procedures will be specified in a separate document. Littlefield Technology Simulation: This is a web-based game played by unique teams, as opposed to your Study Group. YOU WILL PLAY TWO GAMES the first to become acquainted with the game and what actions you are able to control, and your performance within the second game will earn team members with 15% of your final grade in the course. Each game will be made available to you in suspended mode prior to your team assuming control of the simulation. Your team should use this time to become familiar with the game format, to determine your strategy, and to prepare to play the game as soon as it available. The game takes place outside of class time, and each game will last for approximately a week, plus the time to write a team report of your actions. You will need to be in regular contact with your team members during the game. You have to decide as a team when to act and what actions you need to take at that point in the game. A set of hand-outs will provide more details prior to the start of each game. Final Examination. The Final Examination will be designed to test your knowledge of the assigned readings, cases, and text material. It will consist of various types of questions (e.g., case scenario / vignette, essay style, short answer, multiple-choice, problems). The nature of the exam will be discussed in class, as we approach exam time. The only electronic device allowed will be a basic (non-text- capable) calculator and the only other material allowed will be a hard-copy Englishlanguage dictionary. Any other items require your instructor's permission well before the exam. This course is not quantitatively oriented. Thus, the Final Examination will not emphasize problem sets, mathematics, or quantitative techniques. Nevertheless, you will be responsible for mastering a limited set of quantitative approaches. In particular, examination topics may include quantitative problems associated with (1) process analysis, capacity, and bottlenecks, (2) Statistical Process Control, (3) Material Requirements Planning, and (4) Project Management / Critical Path Analysis. Also, please note the following statement from the University of Manitoba, Undergraduate Calendar, Academic Schedule, Section 6: December 6 18, 2013 is the Final Examination Period for most faculties and schools. Students must remain available until all examination obligations have been fulfilled. Page 3 of 13

Other Information and Requirements: Attendance We start on time and I expect you to attend each and every session. If you cannot attend, please phone me or E-mail me in advance. My phone has Voice Mail, so please use it. You do not need to tell me why you are not attending; I will simply expect your contribution on other days. An Attendance - Participation Register will be maintained by the class. Class Seating and Name Cards Please choose a permanent seat at the beginning of next class. I will also expect you to bring your name cards to each session. I need to learn your names quickly, and these arrangements help me to do so. Study Groups Today, you shall form a Study Group of six persons (maximum). Please submit a clearly printed copy of the names to me. Please indicate where and when you propose to meet. This will facilitate the topping up of Study Groups next class. Anyone not in a Study Group by next class shall be assigned arbitrarily to a Study Group. The purpose of these groups is to help you learn, by discussing each case with others. Operations Visits For your Class Presentation at the end of the Term, your study group will be expected to visit an operation in the Winnipeg area. Your Study Group will make all arrangements (including choosing the company and lining up contacts). At the conclusion of the semester, your Study Group will make a formal presentation to the class. (10%) Once the Registration Revision Period (September 5 18) has ended, I will ask you to sign a Release and Indemnification Form concerning these site visits. If you choose not to sign the Release and Indemnification Form you will be assigned an individual campus-based Library Research Project instead. You will make a formal presentation to the class concerning your Research Project in order to earn the ten marks set aside for the Formal Class Presentations. Please note that attending a tour is not a valid excuse for missing activities in/for other courses. Additional Operations and Supply Chain Management information: The student CD-ROM that accompanies the textbook contains numerous links and other sources of information. I will be assigning very little if anything from the CD-ROM, but please explore it. Page 4 of 13

Schedule - Fall Term 2013 Classes on Monday and Wednesday Introduction 5 September Introduction to Course - Administrivia 10 September Discussion: How to Prepare for a Case Discussion 12 September Discussion: What is Operations and Supply Chain Management? Capacity and Process Flow 17 September Case: Process Fundamentals & Case: Capacity Analysis: Sample Problem 18 September Registration Revision Period Ends 19 September Discussion: Synchronous Operations 24 September Case: National Cranberry Cooperative (Abridged) 26 September Case: National Cranberry Cooperative (Abridged) Quality Management 1 October Mini-Test One 3 October Exercise: Quality Tools 8 October Case: Deutsche Allgemeinversicherung 10 October Case: Cranston Nissan Planning and Control 15 October Case: MacPherson Refrigeration Limited 17 October Case: Illustrious Corporation 22 October Discussion: Toyota Production System / Lean (JIT) Operations 24 October Case: McLeod Motors 29 October Mini-Test Two Supply Chain Management 31 October Case: The ITC e-choupal Initiative 5 November Case: Zara: IT for Fast Fashion Project Management 7 November Exercise: Project Management 12 November Case: IDEO Product Development 13 November Voluntary Withdrawal Deadline for Term One Courses Operations Strategy 14 November Case: Chaircraft Corporation 19 November Case: Microlite S.A.: The Pan-Orient Decision 21 November Debriefing: Littlefield Game with the Course Evaluation (during last 20 minutes) Group Presentations of your Second Site Visit 26 November Formal Study Group Presentations 28 November Formal Study Group Presentations 3December Formal Study Group Presentations Page 5 of 13

DAILY ASSIGNMENTS For each class discussion, you have been assigned some Questions for Consideration found on Pages Six to Eleven. These questions are for guidance only, to help you focus on certain aspects of a particular case/reading. As a minimum, you should be prepared to address each question in class. Each Case Discussion will normally follow a sequence of: 1. Situation Analysis/Issues 2. Criteria 3. Alternatives (note the s ) 4. Mathematical Analysis ( number crunching ) 5. Discussion (argument) 6. Decision 7. Plan of Action (include Immediate, Short-term, and Long-term Plans) 8. Executive Summary (Decision, Costs, Benefits, and Implementation Hurdles/Concerns) Suggestion: Put yourself in the position of the Decision-Maker. The real issue is what should be done to resolve the current situation? Your decision should be the logical product of a thorough Analysis and a logical Discussion. In Chronological Order, the cases/readings to be discussed this term are: How to Prepare for a Case Discussion Reading: None. 1. What is the total annual cost for each supplier? 2. What additional criteria should be considered before a decision can be made? 3. As the decision-maker, what do you propose to do? Why is it the best course of action? What is Operations and Supply Chain Management (OSPM)? Reading: Jacobs et al., Chapter One pages 2 23, and Chapter Seven pages 165-181. 1. What is OSCMt? How does it differ from the other functional areas (Marketing, Finance)? How does it apply in the Service Sector? 2. What are the differences between Manufacturing and Service Organizations? 3. What types of decisions must be made by Operations Managers? 4. What are some of the historical developments and recent changes / challenges in OSCM? 5. What might we expect to see in the future? 6. What messages are inherent in the Service-System Design Matrix? 7. What messages are inherent in the Product-Process Matrix? Process Fundamentals and Capacity Analysis: Sample Questions Reading: Jacobs et al., Chapter Six pages 140 164. 1. Study the case materials thoroughly and make certain that you understand the concepts, examples, and terminology. 2. Be prepared to explain the concepts to the class, or apply the concepts to similar material given to you in class, i.e., an in-class exercise. National Cranberry Cooperative (Abridged) Parts A and B Reading: Jacobs et al., Chapter Six pages 140-164. Page 6 of 13

Part A: 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? Part B: 1. As Mel O'Brien, what facility changes, if any, would you propose for RP1 for the 1981 season? What criteria did you employ to make your decision? 2. How would you implement your plan? Synchronous Operations Reading: Chapters 13, 14, and 15 of Goldratt, E. M. & Cox, J. 1992. The Goal: A Process of Ongoing Improvement, 2nd Revised Edition. Great Barrington, MA: North River Press. 1. What are the analogies between the Boy Scout Hike and a typical manufacturing plant? 2. What does Alex realize about statistical fluctuations and dependent events? How does this assist him to better understand his plant? 3. What does Alex learn about a balanced plant? How does this help him at work? 4. What other lessons did Alex learn while on the hike? How will these lessons help him to become a better manager? 5. What performance measures are appropriate at the operational level? Explain. 6. Explain the drum, buffer, rope method of control. Note: In the Goldratt material, throughput refers to throughput rate (which we have been calling capacity or output rate), NOT throughput time (which we have been calling manufacturing lead time). What do the Quality Tools do? Reading: Jacobs et al., Chapter Eight pages 204-228. 1. Who are recognized as Quality Gurus? What did each guru contribute to our understanding of Quality? 2. How is Quality defined in terms of - goods? - services? 3. What are the four categories that comprise the cost of quality? 4. What is Total Quality Management? What are the major elements of such a program? 5. What does ISO Certification entail? What is the rationale behind such a program? 6. What are the basic quality control tools? What purpose does each tool perform? Instructions: Be prepared to do an in-class exercise based on the assigned reading. Page 7 of 13

Deutsche Allgemeinversicherung Additional Reading: Study Jacobs et al., Chapter Eight pages 229-255. 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 (in about thirty minutes) 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. How large should each sample be for the experiment described by Schoss and Kluck? 4. 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)? 5. As Annette Kluck, what are your specific implementation plans? How do you intend to begin improving the performance of the operation? Cranston Nissan Additional Reading: Study Jacobs et al., Chapter Eight pages 204-255. Answer the following questions from the perspective of TQM. 1. Categorize the quality problems in this case. 2. What are the probable causes of so many mishaps? 3. Prepare a cause-and-effect chart for "failure to remedy repair problem to customer satisfaction.' 4. a) What specific actions should Jackson take immediately? b) What should some of his longer-term goals be? MacPherson Refrigeration Limited Additional Reading: Study Jacobs et al., Chapter Nine pages 258-287. 1. What are the relevant tradeoffs at MacPherson? 2. Construct an aggregate plan better than the ones shown in the case. 3. What criteria and assumptions did you use? 4. How flexible is your plan? 5. How would your plan change if MacPherson produced-to-order rather than produced-to-stock? 6. What effect does the timing of peaks have? Note: Before constructing your aggregate plan, please ensure that you adjust the data in the case according to any instructions handed out for your section. For your convenience, a spreadsheet will be made available to help with your trial-and-error aggregate planning attempts. You are not required to use the spreadsheet. It just makes life easier. Page 8 of 13

Illustrious Corporation Reading: Jacobs et al, Chapter Eleven pages 332-357. 1. What is the difference between dependent demand and independent demand? 2. As Nancy Barfield, prepare the operating plan for the next ten weeks. Fill in the forms provided in the Reserve materials, and use the lot-for-lot ordering rule. 3. What problems did you discover? What course of action do you recommend? Why? 4. What is closed-loop MRP? What is required to close the loop? 5. Could MRP have been useful in any of the companies that we have discussed? Toyota Production System / Lean (JIT) Operations Reading: Jacobs et al., Chapter Twelve pages 358 388. 1. Prepare for a discussion about the Toyota Production System (often called just-in-time production, lean operations, etc). 2. Which aspects of this system are "Japanese" and which could be applied in other industrial settings? That is, what is so Japanese about Japanese approaches to manufacturing? 3. What explains the success the Japanese have had with their approaches to production? 4. How is the notion of waste used in the Toyota Production System? McLeod Motors Ltd. Reading: Jacobs et al., Chapter Twelve pages 358 388. 1. What are some examples of specific form/function inventory combinations at McLeod Motors? 2. Prepare a process flow of the BN-88-55 production process. Identify where Work-in-Process (WIP) inventory exists in the system. 3. Why might the WIP inventory level at McLeod Motors have increased? What was the previous level of WIP inventory? What is the lowest possible level of WIP inventory? 4. As Sue Reynolds, what action would you recommend to John Ingram? The ITC e-choupal Initiative Additional Reading: Study Jacobs et al., Chapter Two pages 24-42. If you have time, you might check the ITC website [www.itcibd.com]. 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? Page 9 of 13

Zara: IT for Fast Fashion Additional Reading: Read Jacobs et al., Chapter Two pages 24-42. If you have time, you might check the Zara website [www.zara.com]. 1. As Mr. Salgado, what will you do concerning the issue of upgrading the POS terminals? Will you upgrade to a modern operating system? Should the POS applications be rewritten to include any additional functionality? If so, what functionality? 2. In your opinion, what are the most important aspects of Zara's approach to information technology? Are these approaches applicable and appropriate anywhere? If not, where would they not work well? 3. What benefits does Inditex/Zara get from its IT infrastructure? How difficult would it be for a competitor to acquire these same benefits? 4. What current or potential weaknesses do you see in Zara's IT infrastructure and IT strategy? Project Management and an Exercise Additional Reading: Study Jacobs et al., Chapter Five pages 95-138. 1. Be prepared to discuss the Critical Path Method (C.P.M.) and the Program Review and Evaluation Technique (P.E.R.T.). 2. Be ready to complete an in-class exercise based on these topics. IDEO Product Development Additional Reading: Study Jacobs et al., Chapter Five pages 95-138. Also, and read Thomke, Enlightened Experimentation: The New Imperative for Innovation (case package). If you have time, you might check the IDEO website [www.ideo.com]. 1. How would you characterize IDEO's process, organization, culture, and management? 2. As Dennis Boyle, what advice would you give to David Kelley and why? That is, should IDEO accept the Visor project as is (on a dramatically reduced schedule)? Should they try to persuade Handspring's management to change its aggressive launch schedule? Or, should they simply decline the project? Please consider both the IDEO and Handspring perspectives. What is Operations and Supply Chain Strategy? Reading: Jacobs et al., Chapter Two pp. 24-41. 1. What is Operations Strategy? 2. What are the competitive priorities? Why are trade-offs considered? 3. What are the differences between order-qualifiers and - winners? How has time changed this? Page 10 of 13

Chaircraft Corporation Reading: Jacobs et al., Chapter Two pp. 24-41. 1. Identify the flows of material through the organization. 2. What are the company s current inventory policies? 3. Identify the flows of information through the organization. 4. What are the major issues facing Chaircraft Corporation? 5. As Mr. Johnson, what are your plans to overcome the major operations problems? Be specific with respect to actions to be taken, the timing of these actions, the people involved in performing these actions. What difficulties do you anticipate? Microlite S.A.: The Pan-Orient Decision Reading: Jacobs et al., Chapter Two pp. 24-41. 1. As Luis Pinto, what is your analysis of the capacity situation? 2. What concerns do you have about the competitive environment? 3. What alternatives are available to you? What are the financial implications of each alternative? 4. As Luis Pinto, what do you plan to do? Why is this course of action the most appropriate? 5. What is your Plan of Action for adding capacity at the Jaboata Plant? Be specific with respect to actions to be taken, the timing of these actions, the specific people involved, and so on. What difficulties do you anticipate? What would you do about them? What overall results do you expect? Note: We will NOT be discussing how to finance projects in light of Brazilian debt, inflation, etc. Use American dollars for all cost calculations, and assume that if an alternative makes sense, the financing will be obtained to implement it. Page 11 of 13

Academic Integrity It is critical to the reputation of the Faculty of Management 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. 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, without referencing the source - 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 in any test, examination, or take-home assignment - providing answers to another student in any test, examination, or take-home assignment - taking any unauthorized materials into an examination or term test (crib notes) - impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any test or examination - stealing or mutilating library materials - accessing test prior to the time and date of the scheduled sitting - 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 Group Projects and Group Work Many courses in the Faculty of Management 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 or individuals. 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 relates to academic integrity with their instructor to avoid violating this policy. In the Faculty of Management, all suspected cases of academic dishonesty are passed to the Dean s Office, in order to ensure consistency of treatment. Page 12 of 13

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