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

Supply Chain and Operations Management
(SCM 2160-A03)
Course Outline
Semester:
Fall 2015
Date and Time:
Tuesdays and Thursdays, 11:30-12:45
Instructor:
Sara Hajmohammad
Office:
632 Drake Centre
Email:
[email protected]
Office Hours:
Flexible and by appointment (email)
COURSE DESCRIPTION
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, including regular businesses as
well as non-profit organizations such as humanitarian relief organizations or local sports
leagues, 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, which is 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
enterprise. As an operations manager, you will be challenged to continuously improve your
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technologies, structures, and systems to maintain operations as a key source of sustainable
competitive advantage.
Supply Chain Management
(Inbound)
(Outbound)
Configuration
Technology
Product
Process
Structures
Suppliers
Goods &
Services
Inventory
People
Facilities
Equipment
Suppliers
Customers
Inventory
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 rudimentary operations terms and analysis.
b) Identify by name and function the major components of operating systems.
c) Identify, define, analyze and propose workable solutions to operating problems.
d) Analyze the important quantitative and qualitative factors in specific operating
situations and make appropriate trade-offs between them.
e) Apply appropriate tools and concepts.
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f) Differentiate between: major and minor; short- and long-term; the pros and cons of
alternative solutions in practical situations. In short, develop judgment regarding
operations decisions.
2) The second objective aims to develop your 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 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 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 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
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objective(s) will be addressed in this course and done so by means of the items listed next
to the checkmark.
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.
2
3
4
Analyze quantitative output and arrive at a
conclusion.
Written Communication
Use correct English grammar and mechanics in
their written work.
Communicate in a coherent and logical
manner.
Present ideas in a clear and organized fashion.
Ethical Thinking
Identify ethical issues in a problem or case
situation.
Identify the stakeholders in the situation.
Analyze the consequences of alternatives from
an ethical standpoint.
Discuss the ethical implications of the decision.
Core Business Knowledge
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

Written case summaries

Chapters 1 and 2
(Sustainability issues)
Chapters 1 and 2

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
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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 not imply that all
suggestions are equally valid.
For each of the case sessions, you have been assigned some "Questions for Consideration."
These are for guidance only, to help you focus on certain aspects of the material. Each case
discussion will normally follow a sequence of:

Issues

Criteria

Discussion / Analysis

Plan of Action
Overall, putting yourself in the position of the decision maker, the real issue is what should
be done and why. That is, as the decision maker, how do you plan to resolve the situation?
Note: I have attempted to match the content of readings and cases to some degree.
However, there is no implied direct match; readings may contain concepts that are
not in particular cases and vice versa.
Study Groups: During the first two sessions, you should form study groups of five or six
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.
Please submit a clearly printed copy of the names to me at the beginning of the third
session and indicate where and when you propose to meet. Anyone not in a group will then
be assigned arbitrarily 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 weighting your scores on each
component of the course, as follows:

Participation: Attendance & Contribution 20%

Mini-Tests
30%

Group Presentation
15%

Final Exam
35%
The following table shows the tentative grade cut-offs:
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Cumulative Marks
92 ≤ x ≤ 100
82 ≤ x < 92
75 ≤ x < 82
70 ≤ x < 75
65 ≤ x < 70
60 ≤ x < 65
50 ≤ x < 60
< 50
Grade
A+
A
B+
B
C+
C
D
F
Performance
Excellent
Very Good
Good
Satisfactory
Marginal
Unsatisfactory
Unsatisfactory
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.
Participation: Attendance & Contribution (20%)
Attendance is very important. 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 are absent in more than five sessions, you will
lose the total 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, on a given day, I may 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 be a top participant in each session, nor do you have to
have the "right answer".
On those very rare occasions when you are unprepared for a session and do not wish to be
included in the discussion, please let me know in advance (by e-mail). As well, please let me
know (by email) if you plan to be absent.
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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.
Case summary: As you will be preparing for the cases before coming to the class, as an
added incentive you will be provided a participation score of 3-4 for each case session
summary submitted prior to the start of the discussion in the class. This summary need
only be a one-page note (single-spaced lines, font: Times New Roman 12, 1” margins).
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 Presentation (15%)
With your study group, you are encouraged to visit one operation in the Winnipeg area.
Your group will be responsible for making all arrangements for the visit (including
choosing a site and lining up contacts). 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, you cannot
attend the site visits.
During the last three sessions, a 15-minute presentation (including Q&A) has to be given by
each group. The presentation topics may include:

Site visit in Winnipeg area (most preferred)

Six Sigma Quality

Total Quality Management

Sustainability in Operations

Health Care Operations

JIT

Any other topic of your choice (with my approval)
Groups will be judged on their content, delivery, and presentation skills. All group
members will share the same grade.
Final Exam (35%)
The final exam will be a closed-book in-class exam, which is designed to test your
knowledge of the assigned readings, cases, and text material. It will consist of various types
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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 the 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 English- language dictionary.
This course is not quantitatively oriented. Thus, the Final Exam 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.
In addition, please note the following statement from the University of Manitoba,
Undergraduate Calendar, Academic Schedule:
Students are reminded that they must remain available until all examination and test
obligations have been fulfilled.
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 will be held. No extensions will be provided for group
presentations. 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.
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:
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
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 tests prior to the time and date of the 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.
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 insure 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.
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Tentative Course Schedule (Revision: Oct. 12, 2015)
Session
Class Activities
Readings
Assignments Due
Introduction
Thu, Sep. 10
(1)
Introduction to the course
o Course outline
o Introduction, expectations and
prior knowledge/experience
---
---
Tue, Sep. 15
(2)
Discussion
o How to prepare for a case
session
Case Discussion
o Hillview Hospital: The Hand
Soap Decision
---
---
Thu, Sep. 17
(3)
Lecture and Discussion
o What is operations and supply
chain management?
 Manufacturing vs. service
 Current challenges in
operations management
o Operations strategy
 Competitive dimensions and
tradeoffs
 Capabilities and strategic fit
 Textbook: Ch. 1 & 2  Study group
members and
plans
Module 1: Process Management
Tue, Sep. 22
(4)
Lecture and Discussion: Process
analysis
o Process flowcharting
o Process types
o Process performance
o Little’s law
 Textbook: Ch. 6
---
Thu, Sep. 24
(5)
Lecture and Discussion: Managing
strategic capacity
o Concepts
o Learning curve
o Capacity planning
 Textbook: Ch. 4
---
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Tentative Course Schedule (Revision: Oct. 12, 2015)
Session
Class Activities
Readings
Assignments Due
Tue, Sep. 29
(6)
Case Discussion
o Process fundamentals
o Capacity analysis: Sample
problems
Additional problems/exercises
 Case Package:
Process
fundamentals +
Capacity analysis:
Sample problems
---
Thu, Oct. 1
(7)
Lecture and Discussion: Strategic
process design
o Production processes
o Product-process matrix
o Break-even analysis
 Textbook: Ch. 7
---
Tue, Oct. 6
(8)
Case Discussion
 Case Package:
 Case Summary 1
o National Cranberry Cooperative
National Cranberry
(Abridged)- Continued
Cooperative
(Abridged)
Thu, Oct. 8
(9)
Mini-Test 1: Content-based
 Sessions 3-8’s
material
---
Module 2: Production Planning and Control
Tue, Oct. 13
(10)
Lecture and Discussion: Sales and
operations planning
o Aggregate operations planning
 Textbook: Ch. 9
---
Thu, Oct. 15
(11)
Case Discussion
o MacPherson Refrigeration
Limited
 Case Package:
MacPherson
Refrigeration
Limited
 Case Summary 2
Tue, Oct. 20
(12)
Lecture and Discussion: Material
requirements planning
o Master production scheduling
o Bill of materials
 Textbook: Ch. 11
---
Thu, Oct. 22
(13)
Case Discussion
o Illustrious Corporation
 Case Package:
Illustrious
Corporation
 Case Summary 3
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Tentative Course Schedule (Revision: Oct. 12, 2015)
Session
Class Activities
Readings
Assignments Due
 Textbook: Ch. 10
 Case Package:
McLeod Motors
 Case Summary 4
Tue, Oct. 27
(14)
Lecture and Discussion: Inventory
management
o Purpose of inventory
o Inventory costs
o Inventory systems
Case Discussion
o McLeod Motors
Thu, Oct. 29
(15)
Case Discussion (Cont’d)
 Textbook: Ch. 12
o McLeod Motors
Lecture and Discussion: Lean supply
chains
o Lean production
o Toyota production system
o Lean supply chain design
o Lean services
---
Tue, Nov. 3
(16)
Mini-Test 2: Content-based
---
Sessions 10-15’s
material
Module 3: Supply Chain Management and Quality Management
Thu, Nov. 5
(17)
Lecture and Discussion: Supply
chain management
o Strategic sourcing
o Bullwhip effect
o Outsourcing and vertical
integration
o Supply chain performance
Case Discussion
o The ITC e-Choupal Initiative
 Textbook: Ch. 13
 Case Package: The
ITC e-Choupal
Initiative
Tue, Nov. 10
(18)
Case Discussion
o Zara: IT for Fast Fashion
 Case Package: Zara:  Case Summary 6
IT for Fast Fashion
Thu, Nov. 12
(19)
Lecture and Discussion: Quality
management
o Quality specifications and costs
o Quality management systems
o Quality management tools
o Statistical Quality Control
Problems/exercises
 Textbook: Ch. 8
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 Case Summary 5
---
Revision: October 12, 2015
Tentative Course Schedule (Revision: Oct. 12, 2015)
Session
Tue, Nov. 17
(20)
Class Activities
Case Discussion
o Deutsche
Allgemeinversicherung (DAV)
Readings
Assignments Due
 Case Package: DAV
 Case Summary 7
Module 4: Project Management and Demand Management
Thu, Nov. 19
(21)
Lecture and Discussion: Forecasting
o Qualitative techniques
o Quantitative techniques
 Textbook: Ch. 3
---
Tue, Nov. 24
(22)
Lecture and Discussion: Project
management
o Project organization structures
o Project constraints and success
factors
o Work breakdown structure
o Network-planning models
o Resource management
Problems/exercises
 Textbook: Ch. 5
---
Thu, Nov. 26
(23)
Case Discussion
o IDEO Product Development
 Case Package: IDEO  Case Summary 8
Product
Development
Site Visit and Research Project Presentations
Tue, Dec. 1
(24)
Group Presentations
---
 Presentations
Thu, Dec. 3
(25)
Group Presentations
---
 Presentations
Tue, Dec. 8
(26)
Group Presentations
---
 Presentations
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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 influences your decision?
5. How would you implement your plan?
MacPherson Refrigeration Limited
1. 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
2. Figure out how Linda calculated the three aggregate plans.
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 a
worksheet available on the UM Learn to help with your calculations.)
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-88-55 production process. Identify where Work-inProcess (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-88-55 is produced in assembly line. Assume
that it takes 1 min for each unit to move from each stage to the next.
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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?
Zara: IT for Fast Fashion
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 (if any) do you see in Zara's IT infrastructure and IT
strategy?
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 (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?
IDEO Product Development
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
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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.
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