mgt 174: supply chain and operations managementrady.ucsd.edu/docs/undergrad/mgt 174 syllabus.pdf ·...

MGT 174: Supply Chain and Operations Management - Fall 2013 Delbert F. Foit, Jr.

MGT 174: Supply Chain and Operations Management Undergraduate Course, Fall 2013 PROFESSOR: Delbert F. Foit, Jr. EMAIL: [email protected] PHONE: 858-534-3738 OFFICE LOCATION: Otterson Hall, 3S148 OFFICE HOURS: Tuesdays and Thursdays from 4:00pm – 5:00pm (Other times by appointment) TEACHING ASSISTANT: Serkan Aksu EMAIL: [email protected] Classroom: Otterson Hall 1S113 Note: This syllabus may be updated and revised at a later date Course Description Operations Management (OM) involves the systematic design, execution, and improvement of business processes, projects, and partner relationships. Effective management of operations is vital to every type of organization in today’s context, when we see that significant competitive advantages accrue to those firms that can excel in execution and achieve sustained and profitable growth. This course goes beyond cost minimization, and is an introduction to the core set of issues that firms large and small must confront and coordinate in their journey towards sustained scalability, growth and profitability. Course Objectives

1. To conduct an exploration of one of the three major functions of an organization, operations, during which we will learn how goods and services are actually produced and discover the many problems firms face in a variety of settings.

2. To teach you how and when to apply the tools of operations management to address these problems.

–You should leave this class armed with an understanding of both quantitative models and qualitative strategies.

3. To develop an appreciation of how essential the development of operational excellence and innovation is to the economic success of a firm in a competitive landscape.

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Required Course Materials/Readings

Course Reader In this course, one vehicle for instruction is the case study. The set of case studies, which will be covered in detail, is provided for you in the course reader. MGT174 – Supply Chain & Operations Management – For instructions on how to purchase the course reader from University Readers please see the course content tab on TED. Littlefield Technologies Simulation In this course a second vehicle for instruction is an “on-line” simulation. This simulation will build your understanding of production and inventory control issues that Plant Manager’s face when operating a factory. For instructions on how to purchase the simulation from Responsive Learning Technologies please see the course content tab on TED. Textbooks Additionally, in order to obtain the appropriate background knowledge and necessary tools to appropriately analyze the cases and run the Littlefield Technologies Simulation, we will cover material from the textbook: Managing Business Process Flows: Principles of Operations Management by Anupindi et al., 3rd Edition, 2011, Prentice Hall, ISBN-10: 0-13-603637-6. To purchase the ebook version of this text, go to www.coursesmart.com and in the search box type: 0-13-603637-6 Another required reading is a fictional novel which tells how the protagonist, Alex Rogo, struggles to save his failing manufacturing plant. The didactic tale follows Rogo as he learns important concepts of operations management and learns how to apply them to his plant, all while desperately trying to balance a family life and save his marriage: The Goal: A Process of Ongoing Improvement by Eliyahu Goldratt, 2004, 3rd Edition, North River Press, ISBN: 0884271781. Classroom Procedure The course meets 20 times for 1 hour and 20 minutes each time. Class sessions will begin and end on time. Please be punctual to minimize the disturbance to others and Copyri

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so that you do not miss the initial thrust of the session. If you need to miss a class, please e-mail me in advance. Keep in mind that participation is part of your grade. Lap Top Computers/Tablets Use of Lap Top Computers and/or Tablets will not be permitted during class sessions. To facilitate note taking, hard copy of class content will be provided at the beginning of class. Class Assignments For each class session, I will post a set of guiding questions, discussion points, and goals for the lecture on WebCT. You are expected to prepare answers to these questions and be able to provide substantiated arguments on discussion points. Feel free to work with others to prepare for these class assignments. I suggest that you work closely with a study group on these class assignments to share and discuss individual ideas so that you come prepared to class and contribute to a richer learning experience. It is required that you read the assigned readings before coming to class. This will help give you perspective on the topics to be covered.

Homework Assignments There will be six homework assignments spread throughout the quarter. Each assignment will be posted to WebCT as a PDF document with a due date. Also, each assignment is due *at the beginning* of class on its due date since it is very likely that we will cover material on the homework during the class session. Although you may work in a study group on homework assignments, you must individually write-up your own solution to be submitted. Class Participation

Your class participation grade is based upon your contribution to in-class discussion and quizzes. To prepare for class, you should use the class assignments merely as a starting point. At the beginning of the class, one or more class members will be asked to start the session by addressing a specific question. Anyone who has prepared the case or answers to the class assignment will have no problem handling such a request. After a few minutes of initial analysis and recommendations, we will open the discussion to the rest of the class. As a group, we will try to build a complete analysis of the situation. You are expected to be an active participant throughout the entire class and to contribute to the quality of the discussion. Please note that the frequency of your interventions in class is not a key criterion for effective class contribution. Some criteria used to evaluate class contribution are as follows: Copyri

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1. Is the participant a good listener?

2. Are the points that are made relevant to the discussion? Are they linked to the

comments of others?

3. Do the comments show evidence of analysis of the case?

4. Is there willingness to test new ideas, or are all comments “safe”? (For example,

repetition of case facts without analysis and conclusions.)

5. Do comments clarify or build upon the important aspects of earlier comments and

lead to a clearer understanding of the case?

Academic Integrity Integrity of scholarship is essential for an academic community. As members of

the Rady School, we pledge ourselves to uphold the highest ethical standards. The University expects that both faculty and students will honor this principle and in so doing protect the validity of University intellectual work. For students, this means that all academic work will be done by the individual to whom it is assigned, without unauthorized aid of any kind.

The complete UCSD Policy on Integrity of Scholarship can be viewed at: http://senate.ucsd.edu/manual/Appendices/Appendix2.pdf How the Honor Code applies to this course: You can work with anyone in the class on Class Assignments. I suggest that you work in study groups on Homework Assignments. However, you must individually write-up your own solution to be submitted. For the two Littlefield Technologies Assignments, you should limit discussion only to your team since these are team competitions. For the Mid-Term and Final Exam, you are on your own. Therefore, I suggest that you work individually enough to be well prepared for the exams. For example, solving each homework individually and then discussing it with your study group may be a good strategy. For the two Case write-ups, you should limit your discussion and analysis only to your team – which will be the Littlefield Technology Team.

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Performance Evaluation Your final grade in the course will be comprised of the following:

Component Points / (Percentage) Class Participation 10 pts

Littlefield Technologies Scenarios 15 pts Homework Assignments 25 pts

Mid-Term Exam 25 pts Final 25 pts

Rady School Resarch Participant Pool 5% of your grade is based on participation in two experiments offered by the Rady School Research Participant Pool. Each experiment will take up to

one hour. For more information on how to participate in the participant pool please see

announcements on course home page.

5 pts

Total 105 pts Class Participation: Based on the criteria provided above, the class will be sorted roughly into equal halves and given the following points (10 pts max):

• 10 pts – Top half of the class • 5 pts – Bottom half of the class

Littlefield Technologies: For the first Littlefield Technologies simulation (Capacity scenario), the grading scheme is as follows (5 pts max):

• 5 pts – Top two teams • 4 pts – Top half of the remaining teams • 3 pts – Bottom half of the remaining teams

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For the second Littlefield Technologies simulation (Forecasting, Capacity, and Inventory scenario), the grading scheme is as follows (5 pts max):

• 5 pts – Rank 1 & 2 • 4 pts – Rank 3 & 4 • 3 pts – Rank 5 – 8 • 2 pts – Rank 9 & 10 • 1 pt – Rank 11+

Following the second Littlefield Technologies simulation, each team will write-up a report according to guidelines provided later. The grading of this report is independent of how your team performed in the simulation. (5 pts max)

Homework Assignments: Note: Your homework accounts for 25% of your grade regardless of how you perform on the exams. If you perform perfectly on the exams but fail to turn in homework, your grade will still be negatively impacted. The homework is an important learning tool designed to increase your knowledge of operations and, most importantly, is a required component of the course. For most of you, the homework component will benefit your final grade, but I’m including this note for the few students who will be exceptions. Part of the homework assignments will include two case write-ups. One report per team should be handed in at the beginning of class on the day we cover each case. The goal of this exercise is for you to discuss the case in detail with your teams and then together agree upon some recommendations. These recommendations should be backed up by solid arguments, evidence, and perhaps even mathematical analysis in some instances. The two cases designated for write-ups are #2 and #4. You will have a better idea of what I expect in a case analysis by observing how we cover the first case. The guiding questions for these case write-ups will be posted in TED.

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Students with Disabilities A student who has a disability or special need and requires an accommodation in order to have equal access to the classroom must register with the Office for Students with Disabilities (OSD). The OSD will determine what accommodations may be made and provide the necessary documentation to present to the faculty member. The student must present the OSD letter of certification and OSD accommodation recommendation to the appropriate faculty member in order to initiate the request for accommodation in classes, examinations, or other academic program activities. No accommodations can be implemented retroactively. Please visit the OSD website for further information or contact the Office for Students with Disabilities at (858) 534-4382 or [email protected].

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Module I – Operations Strategy and Process Analysis Session 1: Thursday September 26th

• Course format and requirements • Operational Innovation • Business Application

Required Reading: (in Course Reader)

• John S. Hammond, “Learning by the Case Method” Harvard Business School, Case No. 9-376-241, Rev: April 16, 2002

• Michael Hammer, “Deep Change, How Operational Innovation Can Transform Your Company”, Harvard Business Review, Reprint No. R040E, April 2004

Session 2: Tuesday, October 1st

• A taxonomy of operations management

Required Reading:

• Chapter 1 (Textbook) • Coffee on the Double, Steven Gray (supplemental reading in TED) • Start reading The Goal

Session 3: Thursday, October 3rd

• Operations strategy • Hayes and Wheelwright product-process matrix • The process view (PFD – process flow diagram)

Required Reading:

• Chapter 2 (Textbook) • Making the Cuts, Dan Bilefsky (supplemental reading in TED)

Session 4: Tuesday, October 8th Copyri

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• Team Formation - Case Analysis Write-Ups & Littlefield Technologies Project &

report • Guest Speaker – TBD

Required Reading:

• Chapter 3 (Textbook)

Session 5: Thursday, October 10th

• Key process-flow measures • Inventory buildup diagrams • Little’s Law • Inventory turns • Utilization • Due: Homework #1

Required Reading

• Note: Computing Time Averages (supplemental reading in TED) • State Automobile License Renewal Case (supplemental reading in TED)

Session 6: Tuesday October 15th

• Problem: Carbon Flows • Problem: Pigs and Piglets • Overview of Littlefield Technologies

Required Reading:

• Littlefield Technologies: Overview (supplemental reading in TED) • Read The Goal up to page 161

(in Course Reader)

• Plambeck, Erica, “Problem: Carbon Flows in 2005”, Stanford University Graduate School of Business.

• Patell, Jim, “Problem: Pigs and Piglets”, Stanford University Graduate School of Business.

Session 7: Thursday October 17th Copyri

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• Case #1: Donner Company (HBS 9-689-030)

Required Reading:

• Roy Shapiro, “Donner Company”, Harvard Business School, Case No. 9-689-030, Rev: December 11, 1998

Module II – Process Design and Capacity Planning

Session 8: Tuesday, October 22nd

• Flow-time analysis • Problem: Kristen’s Cookies • Due: Homework #2

Required Reading:

• Chapter 4 (Textbook)

Session 9: Thursday October 24th

• Capacity analysis • Bottleneck management • Problem: Fishing Fleet and Cannery

Required Reading:

• Chapter 5 (Textbook) • Patell, Jim and Lovejoy Bill, “Capacity”, Stanford University Graduate School of

Business, Winter 1993 -1994 • A Drive-Through Lane to the Next Time Zone, Michael Fitzgerald (supplemental

reading in TED) • Capacity Management at Littlefield Technologies, Wood and Kumar

(supplemental reading in TED) Littlefield Technologies (Capacity scenario)

• Simulator starts today at approximately 3:30PM and ends on Tuesday, May 7th at approximately 3:30PM.

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Session 10: Tuesday October 29th

• Case #2: National Cranberry Cooperative (HBS 9-675-014) • Due: Case #2 write-up (one per team)

Required Reading:

• Miller, Jeffery G., Olsen, R Paul, “National Cranberry Cooperative”, Harvard Business School, Case No. 9-675-014, Rev: July 20, 2004

Session 11: Thursday October 31st

• Inventory costs and benefits • Economies of scale • Economic Order Quantity (EOQ) model • Problem: Radical Waves DB • Due: Homework #3

Required Reading:

• Chapter 6 (Textbook) • Radical Waves DB • Keep reading The Goal (Coming up on Feb. 24th)

Session 12: Tuesday November 5th

• Newsvendor problem • Inventory pooling

Required Reading:

• Chapter 7 (Textbook) • Electronics Firm Ends Practice Just in Time, Paulette Thomas (supplemental

reading on TED)

Session 13: Thursday November 7th

• Mid-term Review Cop

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• Mid-term Exam • This exam will cover material from modules I and II

Module III – Process Improvement

Session 15: Thursday November 14th

• Case #3: Benihana of Tokyo (HBS 9-673-057)

Required Reading:

• Sasser, W. Earl, “Benihana of Tokyo”, Harvard Business School, Case No. 9-673-057, Rev: July 20, 2004


• The Goal • Queueing • Safety capacity • Managing variability • Due: Homework #4

Required Reading:

• Chapter 8 (Textbook) • Finish reading The Goal and be prepared to discuss • Larson, Richard C. “There’s More to a Line than Its Wait”, Technology Review,

July, Vol. 91, No. 5, 1988, pp 60-67.

Littlefield Technologies (Forecasting, Capacity, and Inventory scenario)

• Simulator starts today at approximately 3:30PM and ends on Thursday, May 30th at approximately 3:30PM.

Session 17: Thursday November 21st

• Process control • Process capability Copyri

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• Six Sigma • Due: Homework #5

Required Reading:

• Chapter 9 (Textbook) • Motorola, Inc. What is Six Sigma? • The Vuitton Money Machine, Carol Matlack (supplemental reading in TED)

Module IV – Supply Chain Management


• Case #4: Toyota Motor Manufacturing, U.S.A., Inc. (HBS 9-693-019) • Due: Case #4 write-up (one per team)

Required Reading:

• Mishina, Kazuhiro, “Toyota Motor Manufacturing, U.S.A., Inc.”, Harvard Business School, Case No. 9-693-019, Rev: September 5,1995

Session 19: Tuesday, December 3rd

• The Beer Game • Due: Littlefield Technologies Report (one per team) • Littlefield Technologies debriefing

Required Reading:

• Beer Game Instructions, (supplemental reading in TED) • Lee, Hau L., V. Padmanabhan, Seungjin Whang, “The Bullwhip Effect in Supply

Chains”, Sloan Management Review, Vol. 38, No. 3, Reprint 3837, Spring 1997, pp. 93-102

• Chapter 10 (Textbook), specifically sections 10.2, 10.3, 10.4.2, 10.4.4, 10.4.5, 10.5, 10.6.2, 10.6.3

Session 20, Thursday December 5th

• Supply Chain Management (SCM) • The Bullwhip effect • The Beer Game debriefing • Review of the course Copyri

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• Some time for reflection

Final Exam: Thursday December 12th

• 3:00PM – 6:00PM • The exam will be comprehensive but focus more on material from modules III

and IV.

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