Introduction to Production and Operations …

1 Course Syllabus MD 021 management & Operations Wallace E. Carroll School of management Boston College Spring 2009 Instructor: Professor Mei Xue Meeting Location and Time: Fulton Hall 235, T Th 10:30am Office: Fulton 454A Phone: 617-552-6821 Email: Office Hours: Tuesday and Thursday: 3-4:30 pm Prerequisites: EC 131 (Micro-economics), EC 132 (Macro-economics), EC 151 (Economic Statistics), MA 022 (Managerial Accounting), MC 021 (Computers in management ), MT 235 (Math for management Science) Course Overview The goal of this course is to give you a solid foundation for understanding the decisions and tradeoffs managers must make as they direct the Operations of a firm.

2 For a product-based company, Operations include the manufacture and distribution of the product. Service firms also have Operations . For example, think of all of the activities that must be completed from the time you drop an envelope in a Federal Express pickup box at 7:00pm until that envelope arrives at its destination by 10:30am the next morning. People in charge of Operations management in Federal Express design and manage these activities. Why is Operations management important? The 1980 s and 90 s have highlighted the fundamental role that it plays in a company s success or failure.

3 Many companies have witnessed a decline in market share as a result of their inability to compete on the basis of product design, cost, quality, and availability. Most now agree that world-class performance in Operations is essential for their competitive success and long term survival. Why should you study Operations management ? Some students who enroll in this course will start their own companies or go to work in the Operations of a manufacturing or service company; for these people the course is essential. Many more will go to work in professional services, such as investment banks or consulting firms.

4 Here, too, a good set of diagnostic and analytical tools in Operations is invaluable. Consulting engagements often have a large operational component, the consultants helping the client company to restructure its Operations . To properly value a merger or acquisition, investment bankers must understand the costs and benefits of combining the companies Operations . We will analyze how Operations strategy, process choice, technology management , and managerial decision making, which are all the key aspects of Operations management , are related to each other.

5 Then we study different types of forecasting methods used to predict demands as accurate demand forecasting is the first step toward successful Operations management , capacity planning. We will then MD 021 Page 1 management & Operations Course Syllabus learn how to describe a process, to measure key process parameters, such as capacity and lead time, to identify factors that determine system performance, such as bottlenecks and process variability, and eventually to do capacity planning. We will also study the factors and the decision making mechanisms behind the location and layout decisions.

6 Waiting line models are widely used in service Operations management . We will learn how to use them as instruments to improve the efficiency of the service delivery processes. Quality management examines some classical methods in quality management , such as TQM (total quality management ) and SPC (statistical process control). A supply chain is the network of internal and external Production and distribution sites that procure raw materials, transform them into intermediate and finished products, and distribute the finished products to customers.

7 Where process analysis takes a micro view of a company s Operations , supply chain management takes a macro view. We will develop a set of analytical tools for inventory management policy that help us to understand how local decisions within the chain affect the economic performance of the supply chain as a whole. We will also study some advanced tools in Operations management : aggregate planning, resource planning, lean systems/scheduling, supply chain management and project process management . While aggregate planning provides the overall Operations plan for a manufacturing factory or a service firm, resource planning and scheduling focus on the day to day Operations .

8 Finally, we will take a look at project process management , which is widely used in many areas, for example, new product development. Course Materials 1. Textbook: Operations management , Stevenson, 10th ed., McGraw-Hill Irwin, 2006 2. Other course materials including class notes, the solutions for the assigned homework problems and other course related materials can be downloaded from my webpage: ~ 3. The cases will be two simulation games. Each student needs to purchase an access code from the BC bookstore to use the software (Name: Littlefield Technologies- Manufacturing/OM).

9 Registration with a valid access code at the game website is required for full credit for the case. Grading Final grades will be determined as follows: Class attendance and participation 10% Cases (2 @ 10% each) 20% Tests (3 @ 15% each) 45% Final exam 25% 1. The class participation grade is based on both participation and attendance. 2. Cases should be completed by groups of four students and the reports are due on the dates in the course schedule. A name list of group members must be sent to the instructor via email by January 27, 2009.

10 MD 021 Page 2 management & Operations Course Syllabus 3. Three tests will be given throughout the semester on the dates in the course schedule. Tests are not cumulative and cover the material through the date indicated. 4. The final exam is comprehensive and given to all management & Operations classes in the department. 5. In the interest of continuous and cumulative learning throughout the semester, I will drop the lowest of your three test scores if your final exam score is higher. In that case, the final exam will be worth 40% instead of 25%. If you miss a test, I will automatically count the final exam for 40%.