Handouts for OPMA5364 Production and Operation Management Contents

1. Course presentation 2. Group project instruction: analysing and improving production and

operations management 3. Case, Excerpt from Chase, R. B:, Jacob, F. R. and Aquilano, N. J.

(2004), Operations Management for Competitive Advantage, Tenth Edition, Irwin

4. Case, Excerpt from Chase, R. B:, Jacob, F. R. and Aquilano, N. J. (2004), Operations Management for Competitive Advantage, Tenth Edition, Irwin

5. Case, Excerpt from Christopher, M. (1998), Logistics and Supply Chain Management, Prentice Hall

6. Lecture slides Ou Tang May 2012

Production and Operations Management Ou Tang May 2012

Course Presentation Aim: The Production and Operations Management (POM) course is

designed for EMBA students who have not had sufficient exposure to the subject before. The objective of this course is to provide a holistic view of POM in both manufacturing industry and service sector. After taking this course, the student should possess enhanced knowledge about different POM techniques and the ability to analyze and improve production and operation in their own cases.

Prerequisites: Algebra and basic statistics, industrial experience Organization: The teaching is organized in lectures and seminars. The lectures

present the theoretical approaches and the seminars apply the theory to deal with different cases.

Course contents: This course will cover the following topics

Inventory management Materials requirements planning Operations scheduling Project management Services and waiting lines Quality management JIT and lean production Optimized production technology Forecasting Supply chain management International operations planning Closed-loop supply chains Global supply chain and risk management

Course literature: 1. Mereidth, J. R. and Shafer, S. H. (2010), Operations Management

for MBAs, 3rd edition, John Wiley and Sons, Inc. 2. Additional handouts.

Examination: The final grade depends on the sum of the two parts

1. Report of a group project 50%, (see group project instruction). 2. Written exam 50%. The written exam will be in-class, given at a date to be announced during the lecture. It will be an open-book, open-notes exam, but cooperation is strictly prohibited. The focus will be on topics covered in the class and the application of those techniques.

Instructor: Ou Tang, PhD Department of Management and Engineering

Linköping University, SE-581 83 Linköping, Sweden tel: +46-13-281773, email: ou.tang@liu.se url: http://www.iei.liu.se/prodek/ot

Ou Tang is Professor of Management Science and Engineering at Tongji University, China. He also holds a Professorship in Production Economics at Linköping University, Sweden, where he obtained a PhD in 2000. His research includes inventory modelling, manufacturing planning and control systems, closed loop supply chain management, supply chain risk management, service operations management, and China related operations management issues. He has published about 90 scientific articles, including 35 appearing in international journals such as the European Journal of Operational Research, International Journal of Production Economics, Production and Operations Management, and others. Ou Tang has built his pedagogical merit from developing and teaching various graduate and undergraduate courses in supply chain and operations management in Sweden, Germany, Italy, Japan and China. Besides master and doctoral students, he also offers courses for managers in EMBA programs. Ou Tang has strong industrial contacts to conduct his research projects. As the principle investigator, he has audited and analyzed production and logistics systems, and proposed improvement suggestions in about 20 companies such as Volvo, Ericsson, Sapa, Siemens, Hewlett-Packard, General Electric, Alf Laval, Electrolux, TOYOTA/BT, IKEA, among others. Ou Tang also serves as Assistant Editor for the International Journal of Production Economics. He is the member of Executive Committee in ISIR (International Society of Inventory Research). He is also a member of INFORMS, POMS and an invited member of Sloan Industrial Research Foundation.

Schedule in Week 2 Item Content and objective of each item Reading Day 1 Lecture 1 (2h)

Introduction Course Presentation, POM definitions, Transformation systems, Operation efficient, Product and process attributes, Product/process matrix

Chapters 1, 2, 5

Lecture 2 (2h)

Inventory Management Inventory classification, EOQ model, Newsboy problem, Inventory control systems

Chapter 9

Lecture 3 (2h) Material Requirements Planning Bill of material, MRP logic, MRP inputs and outputs Problems in MRP, Capacity requirements planning

Chapter 10

Seminar 1(2h) Group discussion, case study Book pp. 324-326

Day 2

Lecture 4 (2h) Aggregate planning and scheduling Forecasting, Aggregate Planning, Production Strategy, Master scheduling,

Chapter 6

Lecture 5 (2h) Job shop and waiting time management Manufacturing execution systems, Priority rules and techniques, Queueing model, Performance measures

Chapter 7

Lecture 6 (2h) Just-in-Time and lean production History and philosophy of JIT, Toyota Production system, Kanban systems, Synchronising production

Chapter 11

Seminar 2 (2h) Group discussion Handout Item 3-4

Day 3

Lecture 7 (2h) Supply chain management Supply chain design, E-business, Supply chain strategy, Supply chain management framework, International Operations management

Chapter 8,

Lecture 8 (2h) Optimized production technology The goal - video tape, ca 50 minutes, Theory of constraints

Book pp. 201-209

Lecture 9 (2h) Quality control and process capability Total quality management, Quality specification Process capability, Continuous improvement

Chapter 3

Seminar 3(2h) Group discussion Handout Item 5

Day 4

Lecture 10 (2h) Global supply chain management Motivations, decision models, outsourcing, risk management

Lecture 11 (2h) Closed-loop supply chains Closed-loop supply chain activities, Motivations, Industrial cases, Problems and possible solutions

Lecture 12 (2h) Operations strategy Strategy model, ERP systems

Seminar 4 (2h) Group discussion and summary

Production and Operations Management Ou Tang May 2012

Group Project Instruction: Analysing and Improving Production and Operations Management

Each project group should consist of about 5 students. A written report should be handed in to Professor Ou Tang by email ou.tang@liu.se (the date will be announced during the lectures). Do not forget to include names of the participants in the group. Objective Production and operations management is a key element in the improvement in productivities in different business sectors around the world. Creating a competitive advantage through operations requires an understanding of how the operations function contributes to the productivities. The objective of this project is to implement the production and operations management principles and models to an industrial case. More specifically the aim of this project is to

• Provide a deeper understanding of production and operations management principles • Illustrate how operations performance can be improved through appropriate management • Give a deeper understanding the interrelationships among operations and other business

functions, such as marketing and financing, etc. Project task Each project group should select a company, for instance a manufacturing company, a department store, a restaurant, as you case background (preferably use your own company as the study background). The group should then focus on one of the following production and operations topics of the case company Inventory management Materials requirements planning Operations scheduling Project management Services and waiting lines Quality management JIT and lean production Forecasting Production planning Operations strategy Supply chain management Closed-loop supply chains Manufacturing planning and control systems In the report, the company background should be properly presented and the problems in the relevant issues should be clearly stated. The knowledge obtained in this course should be used to analyse the production and operations process. Suggestions for the improvement should be given if possible.

2

Grading The grade of the report is determined according to the following four aspects. The maximum point in this report is 50. Thoroughness: the relevant topic should be discussed thoroughly, 15p. Correctness: the POM principle and model have been used correctly, 15 p. Structure: the report should be well structured to state clearly your project objective, study method and results, 10 p. Communication: written with a good English, 10p. The group must decide how to allocate research and writing duties. If the duties are not evenly shared between group members, each member’s contribution must be stated clearly in terms of percentage (the total must be 100%). A short explanation can be added if necessary. In case of lack of such information on your report cover page, same score will be assigned for all members in the same group.