SUPPLY CHAIN AND OPERATIONS MANAGEMENT

SCM 2160 – SUMMER 2014 – A02

University of Manitoba

Asper School of Business

Department of Supply Chain Management

Instructor: Jeden O. Tolentino

jedentolentino@gmail.com (preferred); tolentin@cc.umanitoba.ca

If you are a student at UofM and have not already been doing so, please send all future emails from

your UofM email account. Remember to include your full name, student number, and faculty in all

correspondence. UofM has adopted a policy effective September 2013 where we are to communicate

with students solely with their UofM email account. (See www.umanitoba.ca/registrar/email_policy.)

Consultation: 659 Drake Centre – Tuesdays/Thursdays – 6:10pm to 6:50pm

Term: Summer 2014 (June 23 to August 8; Final Examination: August 9)

Section: A02: 117 Drake Centre – Tuesdays/Thursdays – 7:00pm to 9:45pm

(Except on Tuesday, July 1, to be made up on Friday, July 4)

Part of Term Full Refund Deadline Voluntary Withdrawal

with No Refund No Voluntary

Withdrawal Permitted

June-August Evening

(June 23 to August 8) June 27 June 28 to July 29 After July 29

SCM 2160 – Summer 2014 – A02 2

Course Objectives

Operations and supply chain management is concerned with the management of the

transformation and movement of inputs into outputs. An operations/supply chain manager is

principally concerned with the design, planning, direction, and control of facilities, processes,

and activities required to transform and move material, labour, capital, energy, and skills into

goods and services.

The major objective of this course is to introduce you to the fundamental concepts of operations

and supply chain management from a general management perspective. Although you may not

be involved in the direct management of supply chains and operations in future employment, it

will be useful to understand the problems and complexities faced by supply chain and

operations managers.

At the conclusion of this course, you should appreciate that, while supply chain and operations

management can be performed using a set of well-understood techniques, it is also primarily a

management discipline that is strategically important for survival in today’s very competitive

environment.

There are no prerequisites for this course but you may not hold credit for both SCM 2160

and the former OPM 2600. Students are encouraged to contact Student Accessibility

Services should special arrangements need to be made to meet course requirements.

SCM 2160 – Summer 2014 – A02 3

Course Materials

Required Text

Jacobs, F. R., Chase, R. B., Balakrishnan, J., Snider, B. (2013). Operations and Supply Chain

Management: The Core (2nd Canadian Ed.). Whitby, ON: McGraw-Hill Ryerson Ltd.

Case Package

Austin, R. D. (1999). Ford Motor Company: Supply Chain Strategy. HBS No. 9-699-198.

Boston, MA: Harvard Business School Publishing. [Revised 2001]

Gray, A. E., & Leonard, J. (1995). Capacity Analysis: Sample Problems. HBS No. 9-696-058.

Boston, MA: Harvard Business School Publishing. [Revised 1997]

Haywood-Farmer, J. S., & Rankin, B. (1993). MacPherson Refrigeration Limited. Ivey ID:

93D021. London, ON: Ivey Publishing. [Revised 2000]

Leonard, J., & Gray, A. E. (1995). Process Fundamentals. HBS No. 9-696-023. Boston, MA:

Harvard Business School Publishing. [Revised 1999]

Shapiro, R. D. (1988). National Cranberry Cooperative, 1996. HBS No. 9-688-122. Boston,

MA: Harvard Business School Publishing. [Revised 2011]

Upton, D. M. (1996). Deutsche Allgemeinversicherung. HBS No. 9-696-094. Boston, MA:

Harvard Business School Publishing. [Revised 1997]

Yeung, T. K. (2005). Multiple Sclerosis Society of Canada – London-Grand Bend Bicycle

Tour. Ivey ID: 9B05D014. London, ON: Ivey Publishing.

The required text and case package are available for purchase from the UofM Bookstore (140

University Centre). Problem sets, notes, and other materials will be made available on D2L. Go

to www.umanitoba.ca/d2l and login using your username and password.

SCM 2160 – Summer 2014 – A02 4

Method of Instruction

The course will be conducted using a combination of two approaches: (1) the discussion of

case studies and (2) the application of quantitative techniques. These two approaches

build and rely on one another to give you a proper understanding of supply chain and operations

management.

The discussion of cases requires active class participation. Each case presents a

management situation in which a decision must be made in light of a number of trade-offs and

alternatives. Class time will be devoted to discussing the situation, the managerial and technical

implications of various options, and the action to be taken to implement preferred options. There

is no right answer to the problems posed by a case but there are definitely approaches –

including the application of quantitative techniques – that address the issues and recognize

the trade-offs involved. Cases as well as other readings have been assigned for each topic

covered in this course. These readings are most effective if completed prior to class.

Performance Evaluation

Group Project 10% (Due July 31, 11:55pm)

Class Participation: Activities 10%

Class Participation: Contribution to Class Discussion 10%

Mini Tests 20%

Final Examination 50% (August 9, 9:00am to 12:00pm)

A + A B + B C + C D F

At least 93.75 87.50 to 93.74 81.25 to 87.49 75.00 to 81.24 67.50 to 74.99 60.00 to 67.49 50.00 to 59.99 Below 50.00

SCM 2160 – Summer 2014 – A02 5

Group Project (10%)

At the beginning of the semester, you will form study groups of exactly five members. Each

group will work on a project and will submit a written report to D2L by 11:55pm on July 31. This

group project is worth 100 marks and forms 10% of your final grade. When all reports have

been received, I will determine how many marks you will receive by assigning grades to the best

and worst reports and scaling others accordingly. These marks will then be adjusted based on

your evaluation of the performance of your study group members. The complete instructions for

the group project will be posted on D2L.

Class Participation: Activities (10%)

You will be working on short activities during the semester and you will be able to earn up to

100 marks from these activities. Accumulating marks from activities forms 10% of your final

grade. Details on these activities will be posted on D2L.

Class Participation: Contribution to Class Discussion (10%)

To ensure that your contribution to class discussion will be assessed as objectively as possible,

we will use a point system whereby each student should aim to accumulate 100 contribution

points throughout the semester. These points form 10% of your final grade. In general, useful

contribution helps push the understanding of the class forward. Examples 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, or suggesting an alternate viewpoint. The grade

for contribution will be a composite of your classmates’ aggregated assessment and your own

self-evaluation. The complete details of the evaluation process will be posted on D2L. Any

instance of a student being involved in coordination with anybody else to unfairly

increase his/her contribution grade is considered an extremely serious breach of

academic integrity and will be adjudicated accordingly.

SCM 2160 – Summer 2014 – A02 6

Quizzes (20%)

You will be working on short multiple-choice quizzes, each one covering a set of reading

assignments (primarily the required text but not the content of any cases). Quizzes encourage

you to be prepared to do your fair share in class discussions and activities and should increase

your understanding of the assigned material. Each quiz will be administered during the first 20

minutes of the class. Unless your absence during a quiz is excused, you may not take the quiz

in another time. Altogether, the quizzes form 20% of your final grade.

Final Examination (50%)

The final examination is designed to test your knowledge of the assigned readings, cases, and

text as well as the skills you have developed practicing the tools discussed in class. The final

examination (August 9) will form 50% of your final grade in this course and will consist of

problems to be solved using quantitative techniques. The only materials you are allowed to

bring during exams are writing implements (except red pens), a scientific calculator (non-

programmable), and an English-language dictionary (optional). Examination booklets, formulas,

and statistical tables will be provided. Any other items should be pre-approved by me well

before the exams. The Registrar’s Office of the University of Manitoba specifies that “Students

must remain available until all examination and test obligations have been fulfilled.

Travel plans are not an acceptable reason for missing examinations.” Refer to

www.umanitoba.ca/student/records/finals/682.html for the procedures for absence during final

examinations.

I start on time and I expect you to attend each and every session. Please choose a

permanent seat at the beginning of our second session and bring your name cards to

each session. I need to learn your names quickly; these arrangements help me to do so.

SCM 2160 – Summer 2014 – A02 7

Course Outline and Tentative Schedule

DATE TOPICS MATERIALS

24 JUN INTRODUCTION Ch. 1/Ch. 2, Jacobs et al. (2013); D2L notes

FORECASTING Ch. 3, Jacobs et al. (2013); D2L notes

STRATEGIC CAPACITY MANAGEMENT Ch. 4, Jacobs et al. (2013); D2L notes

26 JUN SYSTEMS ANALYSIS Film: APOLLO 13

Reading: An Abbreviated Use of Problem Analysis:

Trouble Aboard Apollo XIII

3/4 JUL PROJECT MANAGEMENT

• Critical Path Method

• Time-Cost Models (Project Crashing)

• Probabilistic Approach

Ch. 5, Jacobs et al. (2013); D2L notes

Case: Multiple Sclerosis Society of Canada – London-

Grand Bend Bicycle Tour

8/10 JUL PROCESS ANALYSIS Ch. 6/Ch. 7, Jacobs et al. (2013); D2L notes

Case: Process Fundamentals

Case: Capacity Analysis – Sample Problems

Case: National Cranberry Cooperative, 1996

Web: How It’s Made

15/17 JUL MANAGING QUALITY

• Pareto Analysis

• Linear Regression

• Control Charts

Ch. 8, Jacobs et al. (2013); D2L notes

Activity: Tip Top Markets

Web: American Society for Quality

Web: Mind Tools

Case: Deutsche Allgemeinversicherung

SCM 2160 – Summer 2014 – A02 8

Course Outline and Tentative Schedule

DATE TOPICS MATERIALS

22/24 JUL SALES AND OPERATIONS PLANNING Ch. 9, Jacobs et al. (2013); D2L notes

Case: MacPherson Refrigeration Limited

29/31 JUL INTENTORY (TIME UTILITY)

• Models Under Conditions of Uncertainty: Single

Period Model

• Models Under Conditions of Certainty: Economic

Order Quantity (and extensions)

Ch. 10, Jacobs et al. (2013); D2L notes

TRANSPORTATION (PLACE UTILITY)

• Delivery Frequency

• Multiple Stops

• Transportation Method

D2L notes

Reading: The MODI and VAM Methods for Solving

Transportation Problems

5/7 AUG MATERIAL REQUIREMENTS PLANNING Ch. 11, Jacobs et al. (2013)

SUPPLY CHAINS Ch. 12/Ch. 13, Jacobs et al. (2013)

Case: Ford Motor Company: Supply Chain Strategy

Reading: The Power of Virtual Integration: An Interview

with Dell Computer’s Michael Dell (access via your

UofM Libraries account)

LOGISTICS Ch. 14, Jacobs et al. (2013)

SCM 2160 – Summer 2014 – A02 9

Guide Questions for Discussions

For each of the case/discussion sessions, you have been assigned some questions for consideration. These are for

guidance only, to help you focus on certain aspects of the material. For each case, you should be prepared, at a

minimum, to address each question in class.

July 3 and July 4

Multiple Sclerosis Society of Canada – London-Grand Bend Bicycle Tour; Chapter 5 of Jacobs et al. (2013)

1. Prepare a CPM diagram for the bicycle route planning. What is the critical path for the route planning in the most

likely scenario? What can you conclude from the analysis?

2. When is the earliest completion time in the optimistic and pessimistic scenarios? Which conclusions can be

drawn from this analysis?

3. As Lori Anne McNulty, how would you manage the uncertainty in the task-duration times?

4. What critical path strategies would you use to complete the bicycle route planning by July 24?

July 8

Process Fundamentals; Capacity Analysis – Sample Problems; Chapters 6 and 7 of Jacobs et al. (2013)

1. Study the case Process Fundamentals thoroughly and make certain that you understand the concepts,

examples, and terminology.

2. Study the example problems in the case Capacity Analysis – Sample Problems. Ensure that you understand

how the various calculations are made and why they make sense.

3. Be prepared to explain the concepts to the class or apply the concepts to similar material in class.

SCM 2160 – Summer 2014 – A02 10

July 10

National Cranberry Cooperative, 1996; Chapters 6 and 7 of Jacobs et al. (2013)

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?

July 15 and July 17

Deutsche Allgemeinversicherung; Chapter 8 of Jacobs et al. (2013)

1. Why is Deutsche Allgemeinversicherung (DAV) using Statistical Process Control (SPC)? What are the primary

challenges in applying SPC to a service industry compared to manufacturing?

2. If you were to explain (in about 30 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. Develop specific implementation plans for solving the problems facing Annette Kluck that are described on page

9 of the case.

6. How do you now begin improving the performance of the operation?

SCM 2160 – Summer 2014 – A02 11

July 22 and July 24

MacPherson Refrigeration Limited; Chapter 9 of Jacobs et al. (2013)

1. Construct an aggregate plan better than the ones shown in the case. What do you mean by a “better plan?”

2. What criteria and assumptions did you use in constructing your plan?

3. How flexible is your plan?

4. How would your plan change if MacPherson produced to order rather than to stock?

5. What is the effect of the timing of the aggregate planning decision relative to that of the peak? (What would be

the effect if the planning cycle occurred at a different time of the year?)

6. What would be the effect of doing the aggregate planning with a longer (or even shorter) time horizon? (Consider

what your plan might look like if it covered 24 months, or six, instead of 12.)

August 5

Chapter 12 of Jacobs et al. (2013)

1. Prepare for a discussion about the Toyota Production System (sometimes called just-in-time production, lean

manufacturing, etc.).

2. Which aspects of this system are “Japanese” and which could be applied in other industrial settings? That is,

what is so Japanese about Japanese approaches to manufacturing?

3. What explains the success the Japanese have had with their approaches to production?

4. How is the notion of waste used in the Toyota Production System?

SCM 2160 – Summer 2014 – A02 12

August 7

Ford Motor Company: Supply Chain Strategy; The Power of Virtual Integration: An Interview with Dell

Computer’s Michael Dell; Chapter 13 of Jacobs et al. (2013)

1. Consider the experiences you (or friends or members of your family) have had in buying a car. Compare these

experiences to the experience of buying a computer online. (If you have never done this, go to Dell's website –

www.dell.com or www.dell.ca – and explore how online computer buying works.) What do you think explains the

differences?

2. What advantages does Dell derive from virtual integration? How important are these advantages in the

automobile business?

3. What challenges does Ford face that are not also faced by Dell? How should Ford deal with these challenges?

4. As Teri Takai, what would you recommend to senior management? To what extent should Ford attempt to

emulate Dell’s business model?

SCM 2160 – Summer 2014 – A02 13

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.” Specifically, acts of academic dishonesty include, but are not limited to:

• 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.

Group Projects and Group Work

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.

SCM 2160 – Summer 2014 – A02 14

SCM 2160 – Summer 2014 – A02 15

Faculty Biography

Jeden O. Tolentino has been teaching as a sessional instructor in the Supply Chain

Management Department of the University of Manitoba since 2011. He is also a statistical

analyst with the Department of Education and Advanced Learning of the Government of

Manitoba.

Jeden is from the Philippines and, before coming to Canada, taught courses in business

statistics, management science, and systems analysis and design at De La Salle University and

worked as a supply chain analyst with Accenture.

Jeden has a bachelor’s degree in commerce and a master's degree in economics.