BUAD 311: Operations Management Course Outline
BUAD 311 – Spring 2015
1
As you’re coming in…
• Sit in the first few rows, please
• Introduce yourself to your neighbors (front/back, side to side,
diagonal)
• Find out why each of them is taking this course
• Talk about what you’ve heard (good and bad) about this course
• Talk about what you think “operations management” means
BUAD 311 – Spring 2015
Introduction to Operations Management
Prof. Vishal Gupta
2
BUAD 311 – Spring 2015
Today
• Introductions
• What is operations management?
• Why study it?
• Process analysis intro
• Administration and logistics
• Course Overview and Learning Objectives
• Assignments & grading
3
4
BUAD 311 – Spring 2015
Who am I?
• Born and raised in New York
• Background: Operations + Data Analytics …show more content…
• BA Mathematics and Philosophy, Yale
• Mathematics Tripos, Cambridge University
• PhD Operations Research, MIT
• Work experience
• 5+ years at Barclays Capital (London, NY)
• Supply-chain / analytics consulting
• New England electricity market
• My first year here at Marshall!
Source : http://cleantechnica.com/files/2014/04/wind-turbines17.jpg
BUAD 311 – Spring 2015
5
Who are you?
Source : http://quizimg2.whichblankareyou.com/Q1530.png
BUAD 311 – Spring 2015
What is operations management?
6
7
BUAD 311 – Spring 2015
Informally…
• Organizations perform many different processes as part of their
mission
• Process: Coordinated tasks to achieve specific business goal
Inputs
Process
(customers, materials, …)
(action, production,
…)
Outputs
(service, goods, …)
• OM focuses on
• Optimizing individual process
• Redesigning/coordinating systems of multiple processes
BUAD 311 – Spring 2015
8
Example: Apple
• What are all the things Apple does to sell you an iPhone?
• Again, OM focuses on
• Optimizing individual process
• Redesigning/coordinating systems of multiple processes
• Some people liked to think of it as a “managerial integration” function
BUAD 311 – Spring 2015
9
Question
• Consider AstraZeneca (pharmaceutical company) which sells Crestor
(a cholesterol reducing medication)
• Do they engage in any similar processes?
• Of course! (e.g., innovation)
• Is there a “best” way to design these processes that both Apple and
AstraZeneca should adopt?
• Probably not. (Context dependent)
• OM requires
• Qualitative understanding of the tradeoffs between design decisions
• Quantitative modeling to assess processes and prioritize improvements
• Broad, “systems” perspective of an organization
• Understanding connections to other business units
BUAD 311 – Spring 2015
Another question
• What does it mean to “optimize” a process?
• Depends…
• Reduce costs
• Increase profits
• Increase customer satisfaction
• Perform faster
• Improve quality / variety
• Simplify procedures
• Increase safety
10
BUAD 311 – Spring 2015
11
More formally,
From the syllabus,
“[Operations managers] are responsible for the systematic planning, designing, operating, controlling and improving the various procurement, production, storage, and shipping processes involved from the time the product or service is designed till customer delivery occurs. The challenge for operations managers is to produce goods and services and deliver them in an efficient manner and in accordance with the business strategy of their company. Typically, this involves balancing the needs for satisfying customer demand, on-time delivery, lower costs, and higher quality.”
BUAD 311 – Spring 2015
Why study ops?
12
Reason 1: Be a leader
CEOs of S&P 500 companies
■
42%
31%
24%
42% had Operations experience at some point in their career …show more content…
17%
31%
■
31% were in Operations immediately before becoming
CEO
21%
12%
6%
Source: Spencer Stuart “Route to the top” Survey, 2008
BUAD 311 – Spring 2015
14
Operations as comparative advantage
15
BUAD 311 – Spring 2015
Reason 2: Save the world
Hurricane Katrina, Super Dome 2005
Source: http://www.facesofhope.org/wp-content/uploads/2014/02/Hurricane_Katrina-15.jpg
16
BUAD 311 – Spring 2015
Reason 2: Save the world
Ebola Workers in Liberia, 2014
Source: http://timedotcom.files.wordpress.com/2014/10/ebola-liberia-doctors-without-borders.jpg?w=1100
17
BUAD 311 – Spring 2015
Reason 2: Save the world
Traffic in LA, EVERY MORNING
Source: https://gigaom2.files.wordpress.com/2013/05/los-angeles-traffic.jpg
BUAD 311 – Spring 2015
18
Reason 3: Fame and fortune
• Want to be an entrepreneur?
• Predictors of Startup Failure
•
http://blogs.reuters.com/small-business/2011/09/01/the-no-1-predictor-of-startup-failure-premature-scaling/
• Many of these are operational failures
• Disruption via the “On-Demand Economy”
•
http://www.economist.com/news/leaders/21637393-rise-demand-economy-poses-difficult-questions-workers-companiesand
• Many of these are operational challenges
BUAD 311 – Spring 2015
Process Mapping Introduction
19
20
BUAD 311 – Spring 2015
Process Flow Diagram
• Tool to organize the parts of a process
• Idea
• Attach yourself to a typical unit going through process (“flow”)
• Describe each action performed on the unit
• Who does the work?
• What resources required?
• Conventions
Activity
Storage
Decision
Flow
BUAD 311 – Spring 2015
Ex. Ordering a pizza from Dominos
21
BUAD 311 – Spring 2015
Ex. Outsourcing iPhones
• Manufacturing an iPhone in China and selling in US (simplified)
• For this example, assume Apple manufactures all its iPhones in China.
Concentrate only on those phones ultimately sold in the US.
22
BUAD 311 – Spring 2015
23
Follow-up
• Should I have listed all the elements of manufacturing process?
• Attaching CPU to motherboard, initializing RAM, assembling case
• Should I have included all the procurement decisions?
• Negotiating contracts, ordering from suppliers, receiving shipments
• Depends… Models meant to help with decision-making
• Assessing stock-outs/sales, probably don’t need individual manufacturing steps
• Speeding up production process, probably WILL need that detail
• With process-flow diagrams, must decide scope and level of detail
• Most often, problem context will guide you
BUAD 311 – Spring 2015
24
Reality check
• As a side note, apple’s actual supply-chain for iPhones is much more
complicated
• http://comparecamp.com/how-where-iphone-is-made-comparison-of-apples
-manufacturing-process
/
• Being able to zoom-in and zoom-out (scope and detail) is incredibly
important when analyzing a process this complicated
BUAD 311 – Spring 2015
25
Your turn… (in small groups)
• Consider a bespoke smartphone company
• Customers submit custom design specs (color, screen size, memory) online
• Company manufactures the phone to order
• Ships it directly to customer
• Draw the process-flow diagram
• In what ways is this design better than previous?
• In what ways is it worse?
BUAD 311 – Spring 2015
Break
26
BUAD 311 – Spring 2015
27
Recap…
• Operations is largely about designing, improving and operating processes
• Tradeoffs in design. No single best answer
• Requires quantitative and qualitative methods
• Process flow diagrams simple way to organize the elements of a process
BUAD 311 – Spring 2015
Administration and logistics
28
BUAD 311 – Spring 2015
Course outline
• Process analysis
• Systematic overview of organization
• Queuing (“waiting line management”)
• Variability and system design’s effect on process performance
• Optimization
• Finding the most cost-effective/efficient/fastest design
• Revenue management
• What’s the “right” price?
• Inventory and supply chain management
• “Right product at the right time in the right place”
29
BUAD 311 – Spring 2015
30
Learning objectives
Excerpted from syllabus
• “Make sound business decisions by assessing the basic trade-offs associated with operations management decisions”
• “Predicting, anticipating, and taking into account how operations
management interfaces with other functional areas such as strategy, accounting, finance, human resources, and marketing”
• “Develop critical thinking skills to assess tradeoffs in process design,
capacity allocation, inventory levels, and customer service”
• Practice oriented. Apply tools/techniques to manage capacity for a lab,
inventory in a global supply-chain, service in an outpatient health clinic, and market-clearing in a time-share exchange
BUAD 311 – Spring 2015
Blackboard
• Syllabus is on Blackboard
• Covers all the administrative details
• Proposed schedule for the entire semester (might make small changes)
• Due dates (unlikely to make changes)
• You should have already received an email from me via Blackboard
• If not, check to make sure you are registered and set up appropriately
• I will make periodic announcements via Blackboard
• All assignments will be submitted via Blackboard
31
BUAD 311 – Spring 2015
32
Classroom expectations
• Come on time and prepared
• Do your reading
• I may “cold-call”
• Participate
• Laptop policy (see syllabus for details)
• Permitted, to save the trees from you printing slides
• I WILL write on board for exercises. You will need to copy this information down
somehow
• No internet usage
• Reserve the right to ban laptops later in semester
• No smartphones ever.
BUAD 311 – Spring 2015
33
Course readings
• Required
• BUAD 311 Operations Management (new edition)
custom-made textbook available at the bookstore. eBook available at www.mcgrawhillcreate.com/shop
• The Goal (It’s longish. Start now…)
• 4 cases (to be discussed)
• Optional articles
• ARES - USC Library’s Automated Reserve System
• I may post some other videos/articles to Blackboard as we go on
33
34
BUAD 311 – Spring 2015
Grading
Participation & Cases
7.5%
Quizzes (Best 2 of 3)
7.5%
Homework (Best 2 of 3)
7.5%
The Goal
2.5%
Littlefield Games
10%
Exam 1
20%
Exam 2
20%
Final
25%
No late assignments. No make-up exams.
BUAD 311 – Spring 2015
35
Additional participation credit
• Easiest way to earn participation credit
• Show up prepared to class
• Make insightful comments and ask relevant questions
• Alternate way
• 1 page write-up on a article from a reputable news/journalism source about an
operations issue
• Include:
• Link to the article
• Summary of the issue
• Description of tools from the class useful in analyzing this issue
• Additional insights / new questions beyond what the article contains
• Submit via Blackboard AND email me to let me know
• Group work policy applies here as well
BUAD 311 – Spring 2015
Case assignments
• 4 cases
• Kristen’s Cookies
• Santemarie Hopsital
• Timeshare Exchange Fair
• Zara
• Pre-assignment questions that write-up and submit via Blackboard
36
BUAD 311 – Spring 2015
The Goal
• 2 page paper (1.5 spacing) answering
questions to be posted on blackboard
• This is a book.
Start reading it now. You
won’t be able to read it in one night.
• This is worth 2.5% of your grade. Do a
good job.
37
BUAD 311 – Spring 2015
Simulation Games!
• Littlefield Simulation Games
• Web-based simulation games, each lasting 7 days.
• Compete in teams.
• Individual codes must be purchased
• Each team must register on the website (course code: usc) by Session 10
• eBeer Game
• Supply-chain game
• Played in class (Session 26)
• Each student must register individually by Session 23
38
BUAD 311 – Spring 2015
Academic integrity
• Discussion regarding homework questions is encouraged
• Write-up your answers separately!!!!
• Quizzes and exams are closed books
• One double-sided crib sheet is allowed.
Are there any questions about this?
39
BUAD 311 – Spring 2015
Where do I go for help?
• Ask questions in class!
• Peer tutoring details
• I’ll post to Blackboard
• TA: Negin Golrazaei
• Office: BRI 400B
• M-W 1:30-3:30 pm, T 10:00 am – 12:00 pm
• Me
• Office: BRI 401 G
• M-W 11:00 – 12:00 pm
• By appointment (I’m not on campus everyday)
• Email: guptavis@usc.edu
• Fair warning
40
BUAD 311 – Spring 2015
Wrap-up
• Any other questions?
• Next time
• Measuring process performance
• Until then…
41
1
As you’re coming in…
• Sit in the first few rows, please
• Introduce yourself to your neighbors (front/back, side to side,
diagonal)
• Find out why each of them is taking this course
• Talk about what you’ve heard (good and bad) about this course
• Talk about what you think “operations management” means
BUAD 311 – Spring 2015
Introduction to Operations Management
Prof. Vishal Gupta
2
BUAD 311 – Spring 2015
Today
• Introductions
• What is operations management?
• Why study it?
• Process analysis intro
• Administration and logistics
• Course Overview and Learning Objectives
• Assignments & grading
3
4
BUAD 311 – Spring 2015
Who am I?
• Born and raised in New York
• Background: Operations + Data Analytics …show more content…
• BA Mathematics and Philosophy, Yale
• Mathematics Tripos, Cambridge University
• PhD Operations Research, MIT
• Work experience
• 5+ years at Barclays Capital (London, NY)
• Supply-chain / analytics consulting
• New England electricity market
• My first year here at Marshall!
Source : http://cleantechnica.com/files/2014/04/wind-turbines17.jpg
BUAD 311 – Spring 2015
5
Who are you?
Source : http://quizimg2.whichblankareyou.com/Q1530.png
BUAD 311 – Spring 2015
What is operations management?
6
7
BUAD 311 – Spring 2015
Informally…
• Organizations perform many different processes as part of their
mission
• Process: Coordinated tasks to achieve specific business goal
Inputs
Process
(customers, materials, …)
(action, production,
…)
Outputs
(service, goods, …)
• OM focuses on
• Optimizing individual process
• Redesigning/coordinating systems of multiple processes
BUAD 311 – Spring 2015
8
Example: Apple
• What are all the things Apple does to sell you an iPhone?
• Again, OM focuses on
• Optimizing individual process
• Redesigning/coordinating systems of multiple processes
• Some people liked to think of it as a “managerial integration” function
BUAD 311 – Spring 2015
9
Question
• Consider AstraZeneca (pharmaceutical company) which sells Crestor
(a cholesterol reducing medication)
• Do they engage in any similar processes?
• Of course! (e.g., innovation)
• Is there a “best” way to design these processes that both Apple and
AstraZeneca should adopt?
• Probably not. (Context dependent)
• OM requires
• Qualitative understanding of the tradeoffs between design decisions
• Quantitative modeling to assess processes and prioritize improvements
• Broad, “systems” perspective of an organization
• Understanding connections to other business units
BUAD 311 – Spring 2015
Another question
• What does it mean to “optimize” a process?
• Depends…
• Reduce costs
• Increase profits
• Increase customer satisfaction
• Perform faster
• Improve quality / variety
• Simplify procedures
• Increase safety
10
BUAD 311 – Spring 2015
11
More formally,
From the syllabus,
“[Operations managers] are responsible for the systematic planning, designing, operating, controlling and improving the various procurement, production, storage, and shipping processes involved from the time the product or service is designed till customer delivery occurs. The challenge for operations managers is to produce goods and services and deliver them in an efficient manner and in accordance with the business strategy of their company. Typically, this involves balancing the needs for satisfying customer demand, on-time delivery, lower costs, and higher quality.”
BUAD 311 – Spring 2015
Why study ops?
12
Reason 1: Be a leader
CEOs of S&P 500 companies
■
42%
31%
24%
42% had Operations experience at some point in their career …show more content…
17%
31%
■
31% were in Operations immediately before becoming
CEO
21%
12%
6%
Source: Spencer Stuart “Route to the top” Survey, 2008
BUAD 311 – Spring 2015
14
Operations as comparative advantage
15
BUAD 311 – Spring 2015
Reason 2: Save the world
Hurricane Katrina, Super Dome 2005
Source: http://www.facesofhope.org/wp-content/uploads/2014/02/Hurricane_Katrina-15.jpg
16
BUAD 311 – Spring 2015
Reason 2: Save the world
Ebola Workers in Liberia, 2014
Source: http://timedotcom.files.wordpress.com/2014/10/ebola-liberia-doctors-without-borders.jpg?w=1100
17
BUAD 311 – Spring 2015
Reason 2: Save the world
Traffic in LA, EVERY MORNING
Source: https://gigaom2.files.wordpress.com/2013/05/los-angeles-traffic.jpg
BUAD 311 – Spring 2015
18
Reason 3: Fame and fortune
• Want to be an entrepreneur?
• Predictors of Startup Failure
•
http://blogs.reuters.com/small-business/2011/09/01/the-no-1-predictor-of-startup-failure-premature-scaling/
• Many of these are operational failures
• Disruption via the “On-Demand Economy”
•
http://www.economist.com/news/leaders/21637393-rise-demand-economy-poses-difficult-questions-workers-companiesand
• Many of these are operational challenges
BUAD 311 – Spring 2015
Process Mapping Introduction
19
20
BUAD 311 – Spring 2015
Process Flow Diagram
• Tool to organize the parts of a process
• Idea
• Attach yourself to a typical unit going through process (“flow”)
• Describe each action performed on the unit
• Who does the work?
• What resources required?
• Conventions
Activity
Storage
Decision
Flow
BUAD 311 – Spring 2015
Ex. Ordering a pizza from Dominos
21
BUAD 311 – Spring 2015
Ex. Outsourcing iPhones
• Manufacturing an iPhone in China and selling in US (simplified)
• For this example, assume Apple manufactures all its iPhones in China.
Concentrate only on those phones ultimately sold in the US.
22
BUAD 311 – Spring 2015
23
Follow-up
• Should I have listed all the elements of manufacturing process?
• Attaching CPU to motherboard, initializing RAM, assembling case
• Should I have included all the procurement decisions?
• Negotiating contracts, ordering from suppliers, receiving shipments
• Depends… Models meant to help with decision-making
• Assessing stock-outs/sales, probably don’t need individual manufacturing steps
• Speeding up production process, probably WILL need that detail
• With process-flow diagrams, must decide scope and level of detail
• Most often, problem context will guide you
BUAD 311 – Spring 2015
24
Reality check
• As a side note, apple’s actual supply-chain for iPhones is much more
complicated
• http://comparecamp.com/how-where-iphone-is-made-comparison-of-apples
-manufacturing-process
/
• Being able to zoom-in and zoom-out (scope and detail) is incredibly
important when analyzing a process this complicated
BUAD 311 – Spring 2015
25
Your turn… (in small groups)
• Consider a bespoke smartphone company
• Customers submit custom design specs (color, screen size, memory) online
• Company manufactures the phone to order
• Ships it directly to customer
• Draw the process-flow diagram
• In what ways is this design better than previous?
• In what ways is it worse?
BUAD 311 – Spring 2015
Break
26
BUAD 311 – Spring 2015
27
Recap…
• Operations is largely about designing, improving and operating processes
• Tradeoffs in design. No single best answer
• Requires quantitative and qualitative methods
• Process flow diagrams simple way to organize the elements of a process
BUAD 311 – Spring 2015
Administration and logistics
28
BUAD 311 – Spring 2015
Course outline
• Process analysis
• Systematic overview of organization
• Queuing (“waiting line management”)
• Variability and system design’s effect on process performance
• Optimization
• Finding the most cost-effective/efficient/fastest design
• Revenue management
• What’s the “right” price?
• Inventory and supply chain management
• “Right product at the right time in the right place”
29
BUAD 311 – Spring 2015
30
Learning objectives
Excerpted from syllabus
• “Make sound business decisions by assessing the basic trade-offs associated with operations management decisions”
• “Predicting, anticipating, and taking into account how operations
management interfaces with other functional areas such as strategy, accounting, finance, human resources, and marketing”
• “Develop critical thinking skills to assess tradeoffs in process design,
capacity allocation, inventory levels, and customer service”
• Practice oriented. Apply tools/techniques to manage capacity for a lab,
inventory in a global supply-chain, service in an outpatient health clinic, and market-clearing in a time-share exchange
BUAD 311 – Spring 2015
Blackboard
• Syllabus is on Blackboard
• Covers all the administrative details
• Proposed schedule for the entire semester (might make small changes)
• Due dates (unlikely to make changes)
• You should have already received an email from me via Blackboard
• If not, check to make sure you are registered and set up appropriately
• I will make periodic announcements via Blackboard
• All assignments will be submitted via Blackboard
31
BUAD 311 – Spring 2015
32
Classroom expectations
• Come on time and prepared
• Do your reading
• I may “cold-call”
• Participate
• Laptop policy (see syllabus for details)
• Permitted, to save the trees from you printing slides
• I WILL write on board for exercises. You will need to copy this information down
somehow
• No internet usage
• Reserve the right to ban laptops later in semester
• No smartphones ever.
BUAD 311 – Spring 2015
33
Course readings
• Required
• BUAD 311 Operations Management (new edition)
custom-made textbook available at the bookstore. eBook available at www.mcgrawhillcreate.com/shop
• The Goal (It’s longish. Start now…)
• 4 cases (to be discussed)
• Optional articles
• ARES - USC Library’s Automated Reserve System
• I may post some other videos/articles to Blackboard as we go on
33
34
BUAD 311 – Spring 2015
Grading
Participation & Cases
7.5%
Quizzes (Best 2 of 3)
7.5%
Homework (Best 2 of 3)
7.5%
The Goal
2.5%
Littlefield Games
10%
Exam 1
20%
Exam 2
20%
Final
25%
No late assignments. No make-up exams.
BUAD 311 – Spring 2015
35
Additional participation credit
• Easiest way to earn participation credit
• Show up prepared to class
• Make insightful comments and ask relevant questions
• Alternate way
• 1 page write-up on a article from a reputable news/journalism source about an
operations issue
• Include:
• Link to the article
• Summary of the issue
• Description of tools from the class useful in analyzing this issue
• Additional insights / new questions beyond what the article contains
• Submit via Blackboard AND email me to let me know
• Group work policy applies here as well
BUAD 311 – Spring 2015
Case assignments
• 4 cases
• Kristen’s Cookies
• Santemarie Hopsital
• Timeshare Exchange Fair
• Zara
• Pre-assignment questions that write-up and submit via Blackboard
36
BUAD 311 – Spring 2015
The Goal
• 2 page paper (1.5 spacing) answering
questions to be posted on blackboard
• This is a book.
Start reading it now. You
won’t be able to read it in one night.
• This is worth 2.5% of your grade. Do a
good job.
37
BUAD 311 – Spring 2015
Simulation Games!
• Littlefield Simulation Games
• Web-based simulation games, each lasting 7 days.
• Compete in teams.
• Individual codes must be purchased
• Each team must register on the website (course code: usc) by Session 10
• eBeer Game
• Supply-chain game
• Played in class (Session 26)
• Each student must register individually by Session 23
38
BUAD 311 – Spring 2015
Academic integrity
• Discussion regarding homework questions is encouraged
• Write-up your answers separately!!!!
• Quizzes and exams are closed books
• One double-sided crib sheet is allowed.
Are there any questions about this?
39
BUAD 311 – Spring 2015
Where do I go for help?
• Ask questions in class!
• Peer tutoring details
• I’ll post to Blackboard
• TA: Negin Golrazaei
• Office: BRI 400B
• M-W 1:30-3:30 pm, T 10:00 am – 12:00 pm
• Me
• Office: BRI 401 G
• M-W 11:00 – 12:00 pm
• By appointment (I’m not on campus everyday)
• Email: guptavis@usc.edu
• Fair warning
40
BUAD 311 – Spring 2015
Wrap-up
• Any other questions?
• Next time
• Measuring process performance
• Until then…
41