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BUS 5461 Production and Operations Management

Course Description

Covers the translation of product and service requirements into facilities, procedures, and operating organizations. Includes product design, production alternatives, facilities location and layout, resource requirements planning, quality control, and project management. Uses live case analyses.

Course Objectives

Upon completion of this course, students should be able to

  • Develop an understanding of the strategic importance of manufacturing supply chains and how operations can provide a competitive advantage in the marketplace
  • Recognize the relationship between manufacturing and related service providers and other business functions, such as human resources, purchasing, marketing, finance, etc.
  • Be aware of the new demands of the globally competitive business environment that supply chain managers face today
  • Emphasize the importance of change, facilitation of learning, cross-functional teamwork, knowledge capture, and analysis in manufacturing organizations
  • Develop knowledge of the issues related to designing and managing manufacturing operations so that prosperity in today’s job market is achieved
  • Develop knowledge of the information technology tools necessary for manufacturing an integrated supply chain

Week 1

Lecture: Professor Introduction
Lecture: Course Introduction
Lecture: Project Management
Lecture: PERT and CPM

Outcomes Part 1

  • Compare how operations and supply chain strategy relates to marketing and finance
  • Describe the competitive dimensions of operations and supply chain strategy
  • Identify order winners and order qualifiers
  • Understand the concept of strategic fit
  • Describe how productivity is measured and how it relates to operations and supply chain processes
  • Explain how the financial markets evaluate a firm's operations and supply chain performance

Outcomes Part 2

  • Explain the product development process for both manufactured and service products
  • Demonstrate how the development of products can have significant economic impact on the firm
  • Align design with the desires of the customer by using quality function deployment (QFD) concepts
  • Explain how design can significantly impact manufacturing cost
  • Briefly identify product development performance measures

Week 2

Lecture: Capacity Management


  • Recognize the concept of capacity and how important it is to "manage" capacity
  • Explain the impact of economies of scale on the capacity of a firm
  • Describe how to use decision trees to analyze alternatives when faced with the problem of adding capacity
  • Describe the differences in planning capacity between manufacturing firms and service firms
  • Explain the idea of production process mapping
  • Demonstrate how production processes are organized
  • Explain the trade-offs that need to be considered when designing a production process
  • Describe the product–process matrix
  • Recognize how break-even analysis is just as important in operations and supply chain management as it is in other functional areas
  • Describe the characteristics of service processes and know how they differ from manufacturing processes
  • Construct a service blueprint
  • Demonstrate how services are classified
  • Explain the involvement of the customer in services

Week 3


  • Describe what waiting line (queuing) analysis is
  • Model some common waiting line situations and estimate service utilization, the length of a waiting line, and average customer wait time
  • Define total quality management
  • Describe how quality is measured and be aware of the different dimensions of quality
  • Explain define, measure, analyze, improve, and control (DMAIC) quality improvement process
  • Define the meaning of ISO certification
  • Explain statistical quality control
  • Calculate the capability of a process
  • Identify how processes are monitored with control charts
  • Recognize acceptance sampling concepts

Week 4

Lecture: Supply Chain Design


  • Describe how important sourcing decisions go beyond simple material purchasing decisions
  • Demonstrate the “bullwhip effect” and how it is important to synchronize the flow of material between supply chain partners
  • Describe how characteristics of supply and demand have an impact on structuring supply chains
  • Explain the reason for outsourcing capabilities
  • Illustrate what “green” sourcing is
  • Analyze the total cost of ownership
  • Calculate inventory turnover and days of supply
  • Describe what a third-party logistics provider is
  • Assess the major issues that need to be considered in locating a plant or warehouse facility
  • Set up the transportation model to analyze location problems and use Excel Solver to find solutions to these models
  • Explore the centroid method for locating entities such as cell phone communication towers
  • Describe how a factor-rating system can be used to narrow potential location sites

Week 5

Lecture: Production Control


  • Describe how Green and Lean can complement each other
  • Explain how a production pull system works
  • Define Toyota Production System concepts
  • Summarize important attributes of a lean supply chain
  • Analyze a supply chain process using value stream mapping
  • List the principles of supply chain design

Week 6

Lecture: Forecasting


  • Explore the role of forecasting as a basis for supply chain planning
  • Compare the differences between independent and dependent demand
  • Identify the basic components of independent demand: average, trend, seasonal, and random variation
  • Describe the common qualitative forecasting techniques such as the Delphi method and Collaborative Forecasting
  • Show how to make a time series forecast using regression, moving averages, and exponential smoothing
  • Use decomposition to forecast when trend and seasonality is present
  • Define sales and operations planning and how it coordinates manufacturing, logistics, service, and marketing plans
  • Construct aggregate plans that employ different strategies for meeting demand
  • Describe what yield management is and why it is an important strategy for leveling demand

Week 7


  • Explain the different purposes for keeping inventory
  • Determine that the type of inventory system logic that is appropriate for an item depends on the type of demand for that item
  • Calculate the appropriate order size when a one-time purchase must be made
  • Describe what the economic order quantity is and how to calculate it
  • Summarize fixed–order quantity and fixed–time period models, including ways to determine safety stock when there is variability in demand
  • Discuss why inventory turn is directly related to order quantity and safety stock
  • Describe what MRP is and where it is best applied
  • Identify the source of the information used by the system
  • Demonstrate how to do an MRP “explosion”
  • Explain how order quantities are calculated in MRP systems

Week 8


  • Describe a Manufacturing Execution System production activity control
  • List typical priority scheduling rules and the impact they have on scheduling performance measures
  • Recognize a simple job allocation procedure
  • Explain the issues considered in employee scheduling
  • Define basic concepts of the Theory of Constraints (TOC) including the "Goal of the Firm" and "TOC–Performance Measures"
  • Describe how bottlenecks are controlled using TOC concepts
  • Model processes using TOC concepts
  • Compare MRP, JIT, and TOC concepts and see how they can complement one another
  • Describe how TOC can be applied to areas other than production processes

The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. January 2012