American University of Beirut

Suliman S. Olayan School of Business BBA Course Syllabus

DCSN 200 Competitive Advantage from Operations (Operations Management) 3 Section 1, MWF 10:00am 10:50am (Classroom OSB 236) Section 2, MWF 11:00am 11:50am (Classroom OSB 207) Section 4, MWF 1:00pm 1:50pm (Classroom OSB 227) Section 10, MWF 2:00pm 2:50pm (Classroom OSB 226) Mr. Elie Majdalani New OSB Building, 3rd Floor, Room 363 01-374-374, extension 3726 em12@aub.edu.lb MWF, 12:00pm 1:00pm Textbook: Heizer J. and Render, B., Operations Management, Prentice Hall, 10th edition, 2010.

Course Number: Course Name:

Credit Hours: Section Number and Time

Instructor: Office: Phone: E-mail: Office Hours: Required Materials:

Pre-requisites:

Suggested pre-requisite (earlier semester): CMPS 209 Suggested co-requisite (same semester or earlier): MATH 204 Familiarity with Microsoft Excel is expected

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Course Description:

A foundational overview of how managers make strategic decisions in operating a firm, whether in manufacturing or service sectors, thereby giving their firms a sustainable competitive advantage in a global marketplace. The coverage of the discipline of Operations Management is very selective: we concentrate on a small number of powerful themes that have emerged recently as the central building blocks of world-class operations. We also present a sample of OM tools and techniques that have proved extremely useful over the years. The topics are equally relevant in the manufacturing and service sectors. One of the main objectives of this course is to recognize the immense competitive advantages companies can draw from an efficient management of operations. The focus will be on the systematic planning, design, and analysis of some of the main processes required for the production of goods and the delivery of services. Operations Management touches upon many vital business functions of an organization including strategy, product and service design, customer order management, processes design and improvement, capacity and material planning, quality control, inventory and supply chain management. These and additional related topics will be covered in this course. By the end of the course, students will have a solid understanding of the key role Operations Management plays in a modern business. Students should expect to become familiar with various operations processes and operating systems. Furthermore, they will acquire some of the skills necessary to critically analyze a firm's performance from an operation point of view.

Program Learning Goals Emphasized:

The key BBA program goals addressed through this course are: B-LG1: Business professional knowledge and competence Students will be able to apply operating strategies that will allow a firm to compete successfully within its environment. In formulating these strategies students will use concepts, principles and theories from core business professional knowledge and competence both from generic and specific business areas in a familiar situation.

B-LG2: Decision Making: Through this course, students will recognize, describe and apply analytical-quantitative approaches to business and managerial decision making situations. Students will become familiar with process design, forecasting, capacity planning, inventory management, quality control, in addition to location and layout decisions, and supply chain management

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Specific Learning Objectives (SLO) for the course

The Specific Learning Objectives (SLOs) for this course that map to the BBA Program Learning Goals mentioned above are as follows: B-LG1: Business professional knowledge and competence: 1. Define Operations Management functions and strategy and how OM can lead to a competitive advantage. 2. Describe and define products (goods and services) and apply some of the techniques used in the design process. 3. Describe and define process strategy and apply the tools needed for process analysis and design. 4. Define quality and Total Quality Management (TQM) and its required tools. 5. Understand and measure operation efficiency and effectiveness. Apply single and multi-factor productivity, process capability, utilization and efficiency, and various objectives for short-term scheduling. B-LG2: Decision Making: 6. Understand and apply single-stage decision trees and calculate Expected Monetary Value (EMV). 7. Understand qualitative and quantitative methods for demand forecasting. Apply quantitative methods such as exponential smoothing, trend projection, and seasonal indexes. 8. Understand and apply Statistical Process Control and determine process capability. Apply control charts (x-chart, R-chart, p-chart, c-chart) and process capability (CP and CPK). 9. Understand location and layout strategies. Apply factor weighting method. 10. Understand inventory and supply chain management. Apply Economic Order Quantity (EOQ), Production Order Quantity (POQ), quantity discount, and simple safety stock calculation models. 11. Understand planning and scheduling in operations. Apply various techniques such as crossover points and break-even analysis, and shortterm scheduling (priority and Johnsons rules).

Relationship to Other Coursework:

Operations Management is a prerequisite for Managerial Decision Making and is an introduction to other courses, such as Logistics and Supply Chain Management. The topics covered in the course provide an introduction to the critical role operations management plays in a business.

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Instructional Methodology: Performance Evaluation and Grading:

Lecture, cases, class discussion, individual assignments, group project

Midterm Exam () Final Exam Case Study(7%), Supply Chain game(3%) Individual Assignments Attendance and Active Participation Total Introduction to Operations (Ch 1& 2) Forecasting (Ch 4. Refer to Appendix A for covering material) Product and Service Design (Ch 5) Process strategy (Ch 7) Capacity Planning (Supplement Ch 7. Refer to Appendix C for covering material) Short Term Scheduling (Ch 15. Refer to Appendix E for covering material) Location Strategies (Ch 8) Layout Strategies (Ch 9) Quality Control (Ch 6) Statistical Process Control (Supplement Ch 6. Refer to Appendix B for covering material) Inventory Management (Ch 12) Aggregate Planning (Ch 13. Refer to Appendix D for covering material) Supply Chain Management (simul. game) SLO 1 7 2 1,3 5,6,11 5,11 9 9 4 5,8

30% 30% 10% 20% 10% 100% Hours 3.75 hrs. 2.50 hrs. 2.50 hrs. 2.50 hrs. 2.50 hrs. 3.75 hrs 2.50 hrs. 2.50 hrs. 2.50 hrs. 2.50 hrs. % of Time 10% 7% 7% 7% 7% 10% 7% 7% 7% 7%

Summary of Topical Coverage:

Midterm

Final

10 5 10

5.00 hrs. 1.25 hrs. 2.50 hrs. . 36.25 hrs.

13% 4% 7%

Total Hours
(based on 15 weeks per semester @ 2.5 hours per week for 3 credit hours; 50 minutes per week for 1 credit hour)

Use of Technology:

Students are expected to be familiar with Microsoft Word and Excel. Assignments are submitted online via Moodle and TurnItIn.

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Academic Honesty:

Students are expected to complete all work with the highest standard of integrity in line with AUBs Student Code of Conduct and OSBs Honor Code. Plagiarism, forgery, cheating or any form of academic misconduct will not be tolerated. Any of the above may cause a students final course grade to be lowered significantly or the student may receive a failing grade, depending on the severity of the offence. Plagiarism is the presentation of the work of another as ones own work. Moodle: Additional course material as well as student grades will be published on Moodle. Email: Some information concerning the course may be sent by the instructor to students AUB email addresses. Assignments: Assignments will be posted on Moodle. Students are expected to solve them individually unless stated otherwise, and submit the report in hard copy (handwritten or printed). Deadlines and Due Dates: These will be strictly enforced. Written assignments are due at the beginning of class on the due date. Late submissions will automatically lose 20% of the grade per day (24 hours). Missing work will be assigned a grade of zero. Quizzes: Drop quizzes may be held during any session. Exams: Both midterm and final are closed-book exams. Students are required to have their university ID during examination. Mobile phones must be switched off and not visible at all times during examination. It is not allowed to use calculators that are built-in into mobile phones. Tardiness: Students are expected to be in class on time. Late arrival to classes will be considered equivalent to absence. Attendance: Students are allowed to skip 5 sessions without any excuse. Further such absences, regardless of the excuse, will result in a decrease of the course grade. Students missing more than 4 sessions before the last day for withdrawal may be dropped from the course without notice. Attendance is essential to understanding of topics covered in class. Students are personally responsible and accountable for learning the contents of any class they miss.

Other Course Policies:

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Appendix A Chapter 4 Covered Materials (Forecasting)

I. II.

Qualitative and Time Series Forecasting Forecasting in the Service Sector

Pages 136 - 158 Pages 166 - 167

Appendix B Supplement Chapter 6 Covered Materials (Statistical Process Control)

I. II.

Statistical Process Control (SPC) Process Capability

Pages 250 - 263 Pages 263 - 265

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Appendix C Supplement Chapter 7 Covered Materials (Capacity Planning)

I.

Capacity A. B. C. D. E. Design and Effective Capacity Capacity and Strategy Capacity Considerations Managing Demand Demand and Capacity Management in the Service Sector

Page 314 - 319

II.

Bottleneck Analysis and the Theory of Constraints A. B. C. Process Times for Stations, Systems and Cycles Theory of Constraints Bottleneck Management

Pages 320 - 324

III.

Break-Even Analysis A. B. Single-Product Case Multiproduct Case

Pages 324 - 328

IV. V.

Reducing Risk with Incremental Changes Applying EMV to Capacity Decisions

Pages 328 - 329 Pages 329 - 300

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Appendix D Chapter 13 Covered Materials (Aggregate Planning)

I. II.

Aggregate Planning in Services Yield Management

Pages 556 - 559 Pages 559 - 562

Appendix E Chapter 15 Covered Materials (Short Term Scheduling)

I.

The Strategic Importance of Short-Term Scheduling

Page 616

II.

Scheduling Issues A. B. Forward and Backward Scheduling Scheduling Criteria

Pages 616 - 619

III.

Loading Jobs A. Gantt Charts

Pages 622 - 623

IV.

Sequencing Jobs A. B. C. D. Priority Rules for Dispatching Jobs Critical Ratio Sequencing N Jobs on Two Machines (Johnsons Rule) Limitations of Rule-Based Dispatching Systems

Pages 626 - 632

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