Class will not meet on: Thursday, November 25 (Thanksgiving recess)
Class will meet on: Tuesday, December 14 (last class before final exam)
Course Description and Learning Goals
This syllabus is tentative and subject to change.
This course is designed to give students a better understanding of how firms can gain competitive advantage from their operations function. Typically this requires the firm to achieve, at a minimum cost, quality, and ecological parity; responsiveness and adaptability to customer needs and desires; rapid time to market; process technology leadership; and sufficient and responsive capacity. A problem-solving framework is developed that enables students to undertake managerial and technical analysis that should result in the desired comparative advantage. Both service and manufacturing case examples are utilized.
You will be assigned homework on a class by class basis for each topic. The homework assignments are due on the dates (sessions) where the assignments appear in the syllabus. Only assignments that are specifically designated as SUBMIT are to be handed-in at the beginning of class. Keep a copy of all homework submitted for reference during class.
Homeworks will be graded on a scale out of 10 and will not be accepted late. They must be prepared individually in order to receive credit. Please write clearly or word process your homework.
HOW TO PREPARE FOR CLASS DISCUSSIONS
Please read the cases carefully. Use the study questions supplied in the syllabus as a guide. Be prepared to be called-upon to present the facts of the case, or carryout the analysis indicated by the study questions.
The final exam is on Dec 21, from 2:00-3:50 pm. Please mark this in your calendars now.
This syllabus is tentative and subject to change.
MODULE 1: Introduction to Operating Systems: Process Design and Analysis
Sept 7 SESSION 1: INTRODUCTION – OPERATIONS AS A SOURCE OF COMPETITIVE ADVANTAGE
Recommended reading : The Goal by E.M. Goldratt
Introduction to Operations Management – Course Introduction and Overview
Sept 9 SESSION 2: PROCESS DESIGN
Read Chapter 1 in Heizer and Render (H&R)
Read Analysis of an Operation
Read, analyze, and be prepared to discuss the Benihana of Tokyo case (pages 95-111) (91-108) in Casebook. Use the following study questions as an aid in analyzing the case.
(a) Describe Benihana as an operating system. (Draw a process flow diagram.) List the relevant inputs, process, and output elements in three columns.
(b) How does the operating system support the Benihana concept?
(c) Which parameters of the operating system influence the throughput of a Benihana Restaurant?
(d) How does the cost structure of a Benihana restaurant compare with that of a typical American restaurant? How does Benihana get its competitive advantage?
(e) What is the proper relationship between the number of tables in the dining room and number of seats in the bar? Assume they want the average customer to stay 18 minutes in the bar.
Homework #1: Answer questions (a) and (e) and submit at the beginning of class.
Sep 14 SESSION 3: OPERATING SYSTEMS – TYPES OF OPERATING PROCESSES
Read Chapter 7, pages 249-259 (253-266) in H&R.
Read Terms Used In Operations Management (p.1-4 in Casebook) (1-4)
Discussion questions 2,4,9,11,12,13, and 14 in H&R (p 274) (281)
Sep 16 SESSION 4: PROCESS ANALYSIS (1)
Read Chapter 7, pages 259-271 (266-279) in H&R
Read Chapter 5, pages 158-168 (162-172) and 174-176 (178-180) in H&R
Read, analyze and be prepared to discuss the Kristen's Cookie Company case (p. 113-115 in Casebook) (109-112) utilizing the six key questions at the end as guides. In particular prepare question 4 below.
What are the cycle time, throughput time, and capacity of each operation and the whole production system?
Homework 2: Draw a Gantt chart for Kristen's operation assuming orders are for two-dozen cookies, orders come every 20 minutes AND Kristen’s roommate is absent. Submit this analysis at the beginning of the class.
Sep 21 SESSION 5: PROCESS ANALYSIS (2)
Read the Donner Company case (p. 117-130 in Casebook) (113-126). Use the EXCEL spreadsheets discussed in class (Donner.xls and Donner1.xls) to analyze and understand the relationships between number of orders (set-ups) in a month, order size, and capacity
Use the following study questions as guides in analyzing the case:
Describe Donner as an operating process. To simplify this task, consider only the flow of the most important output.
Assume Donner has to process 60 orders in a certain month. What is the capacity (in terms of the number of boards) of each operation and of the entire system?
What factors influence the capacity of the entire system? What is the current utilization of the machines?
What was the efficiency of Donner?
What are the causes of the major problems described at the end of the case? How would you propose to resolve them?
MODULE 2: Optimal Resource Allocation
Sep 23 SESSION 6: THE BASIC LINEAR PROGRAMMING (LP) PROBLEM
Read Quantitative Module B: Linear Programming in H&R (pages 689-704) (705-720). You may do the first reading for a quick overview.
Be sure you get the handout with five extra problems.
Get a copy of homework #3 handout
Sep 28 SESSION 7: SOLUTION TECHNIQUES: GRAPHICAL METHOD AND ENUMERATING THE CORNER POINTS
Read pages 697-704 in Quantitative Module B (H&R).
Solve problems B.2 and B.3 on page 709 (726) using (a) Graphical and (b) Enumerating the Corner Points methods.
Sep 30 SESSION 8: LP SOLUTION (LINDO OR EXCEL INTERPRETATION)
Solve problems 1-5 on the Hand-out Sheet using EXCEL method.
Solve Problem B.2 and B.3 on page 709 (726), using this method.
Interpretation of the results
Homework #3: Solve and submit problems 1-5 on the Hand-out Sheet using (a) Graphical and (b) Enumerating the Corner Points methods.
Oct 5 SESSION 9: USING THE LP MODEL AND MIDTERM REVIEW
Read pages 697-704 (712-720) in Quantitative Module B (H&R).
Read, analyze, and be prepared to discuss the Otto Development Corporation case (pages 81-83 in Casebook) (79-81).
Review of all the material before the midterm
Oct 7 SESSION 10: Midterm Exam I
MODULE 3: Time Based Competition
Oct 12 SESSION 11: TIME BASED COMPETITION
Read Chapter 3 in H&R (p. 55-81) (55-80). Attempt the discussion questions at the end of the chapter.
Draw the networks for the projects described in the FCN/Securities Demo (A) exercise (p. 30 in Casebook) (30).
Oct 14 SESSION 12: PROJECT MANAGEMENT
Read, analyze and be prepared to discuss the other four project management network cases (exercises) assigned in class: FCN (B), FCN (C) (p.31-32 in Casebook) (31-32), Specialty Contractors, and Aerospace Components (p. 37-39 in Casebook) (35-37).
Homework #4: Submitthe network for the Allied Distributing exercise (p.35-39 in Casebook) (33-34) at the beginning of class.
MODULE 4: Managing Quality as a Strategic Issue
Oct 10 SESSION 13: QUALITY – ITS DEFINITION AND BASIS FOR COMPETITION
Preview of the next half of the course.
Read Chapter 6 in H&R (p. 187-209) (191-212)
Oct 21 SESSION 14: QUALITY ANALYSIS, MEASUREMENT AND IMPROVEMENT
Read the Ford-Firestone case (p. 41-72 in Casebook) (39-70) and be prepared to discuss.
Homework #5: Prepare and submita Fishbone Diagram of the tread-separation / SUV rollover.
Oct 26 10 SESSION 15: STATISTICAL QUALITY CONTROL
Read the Supplement to Chapter 6 in H&R (p. 217-236) (221-240).
Oct 28 SESSION 16: QUALITY IMPROVEMENT
Read, analyze and be prepared to discuss the quality control issues in the South Tree Electronics case (p. 73-79 in Casebook) (71-78)
In analyzing South Tree's quality control problem the following study questions may help:
Indicate on the process diagram, all current inspection points and note the accumulated cost and yield of each operation and test in the process.
How many circuits must you start with to achieve the desired output level?
At what yield rate would you be indifferent between continuing and discontinuing the first inspection in the process?
Homework #6:Calculate and submit the cost of a good S-39 circuit. Show all work. Also, solve problems S6.6 and S6.19 in H&R (p. 239-241) (244-246)
Nov 2 SESSION 17: Midterm Review
Nov 4 SESSION 18: Midterm Exam II
MODULE 5: Inventory Concepts and Models
Nov 9 SESSION 19: INVENTORY / LOGISTICS
Read Chapter 12 in H&R (p. 465-487 in H&R) (481-501).
Nov 11 SESSION 20: THE ROLE OF INVENTORY - THE TRADITIONAL VIEW
Read, analyze and be prepared to discuss the Blanchard Company case (p. 131-141 in Casebook) (127-138) using the following study guide questions:
Determine which costs should be included to perform EOQ/ELS calculations.
What are the assumptions of EOQ/ELS model that Blanchard has?
Briefly describe the inventory system designed by Bob and Elliot.
Evaluate this system by identifying the major advantages and disadvantages.
What is Blanchard's shortage costs for its products?
Get a handout with homework #7 (XENON CASE (on Blackboard))
Nov 16 SESSION 21: INVENTORY MANAGEMENT UNDER UNCERTAINTY
Read Chapter 12 in H&R (p. 487-494 in H&R) (502-506).
Read the Chapter 16 in H&R on Just-in-Time systems (p. 619-639 in H&R) (639-659)
Read, analyze and be prepared to discuss the L.L. Bean Inc. case. (pages 143-147 in Casebook) (139-143)
Homework #7:Submit solution.
Nov 18 SESSION 22: INVENTORY IN ACTION: THE BEER GAME ROOM: KMC 5-50 (Barr-Kawamura Commons)
Nov 23 SESSION 23: SUPPLY CHAIN MANAGEMENT
Debrief of the Beer Game
Read Chapter 11 and the Supplement to Chapter 11 in H&R (p. 449-459) (431-455)
MODULE 6: Time-to-Market & Responsiveness
Nov 30 SESSION 24: THE EFFECTS OF UNCERTAINTY - WAITING LINES
Read Quantitative Module D in H&R on Waiting Lines and Queuing Theory (p. 739-754 in H&R) (753-766).
Prepare the sixteen discussion questions at the end of Module D in H&R (p. 758) (775).
Dec 2 SESSION 25: QUEUING THEORY IN ACTION
Read, analyze, and be prepared to discuss the First City National Bank case (p.85-91 in Casebook) (83-88). The following study questions will help:
Considering the data supplied for arrival and service times, how would you calculate an average arrival rate and service rate?
As Mr. Craig, what characteristics of this queuing system would you be most interested in observing?
What is the best number of tellers to use?
Calculate the waiting time for a customer (time spent in the queue before service) and determine which of the two line configurations you would recommend? Support your result with the appropriate quantitative queuing analysis.
Dec 7 SESSION 26: AN INTRODUCTION TO SIMULATION
Read Quantitative Module F in H&R on simulation (p. 785-796 in H&R) (795-805)
Discussion questions 1,2,4,5,7,10,11,12 and 13 H&R (p. 796) (810)
Prepare problem F.1 H&R (p. 800) (810)
Homework #8:Submit the solutions to problems D3, D9, D20 in H&R (p. 761-763) (776-778).
Dec 9 SESSION 27: USE OF SIMULATION AS A PROBLEM SOLVING TOOL FOR OPERATING SYSTEMS
Consider the First City National Bank case again (p.85-91 in Casebook) (83-88). By hand, simulate and submit 25 arrivals (track them through the bank) using the inter-arrival time distribution and service time distribution given in the case, with three tellers, for each of the two line arrangements. Identify assumptions that are necessary?
Consider the First City National Bank case again. What are the advantages of using simulation to study this operation? What are the limitations?
Which alternative arrangement of teller lines should Mr. Craig select based on the simulations?
Dec 14 SESSION 28: REVIEW OF COURSE MATERIAL
Dec 21 FINAL EXAM - 2:00-3:50 pm
Required Course Materials
CUSTOM TEXT: COMPETITIVE ADVANTAGE FROM OPERATIONS, Pearson Custom Publishing; 2006.
COMPUTER SOFTWARE: NYU Software Packages, EXCEL
HARVARD CASES (Included in Custom Text):
BENIHANA OF TOKYO
KRISTEN'S COOKIE CO.
BLANCHARD IMPORTING AND DISTRIBUTING COMPANY, INC.
L.L. BEAN, INC.
STANFORD CASE: DELL DIRECT† (†Not included in Custom text; to be distributed in class.)
NYU STERN CASE: THE FORD-FIRESTONE CASE
OTHER MATERIAL (Included in Custom Text)
TERMS USED IN OPERATIONS MANAGEMENT
ANALYSIS OF OPERATIONS
FCN SECURITIES DEMO (A), (B) AND (C)
WAITING LINE MANAGEMENT TABLE
FIRST CITY NATIONAL BANK
SOUTH TREE ELECTRONICS
XENON (on blackboard)
THE GOAL, Third Edition (Buy in Bookstore), Eliyahu M. Goldratt and Jeff Cox, North River Press, Inc. 2004.
To be completed before publishing.
Guidelines for Group Projects
Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.
Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole: its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.
It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.
You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.
Class Participation, Attendance, Quizzes 10%
Mid-Term Examination I 25%
Mid-Term Examination II 25%
Mid-Term Examination III 25%
A note about grading:
At NYU Stern we seek to teach challenging courses that allow students to demonstrate differential mastery of the subject matter. Assigning grades that reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum.
In core courses, our faculty have adopted a standard of rigor for teaching where:
25-35% of students can expect to receive A’s for excellent work
50-70% of students can expect to receive B’s for good or very good work
5-15% of students can expect to receive C’s or less for adequate or below work
Note that while we use these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well each of you actually performs in this course.
Please see www.stern.nyu.edu/undergraduate/grading for “Teaching and Grading at the NYU Stern Undergraduate College” for more information.
The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.
If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.
Professional Responsibilities For This Course
Class attendance is essential to your success in this course and is part of your grade. An excused absence can only be granted in cases of serious illness, grave family emergencies, or religious observance and must be documented. Job interviews and incompatible travel plans are considered unexcused absences. Where possible, please notify me in advance of an excused absence.
In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:
Providing strong evidence of having thought through the material.
Advancing the discussion by contributing insightful comments and questions.
Listening attentively in class.
Demonstrating interest in your peers' comments, questions, and presentations.
Giving constructive feedback to your peers when appropriate.
Late assignments will either not be accepted or will incur a grade penalty unless due to documented serious illness or family emergency. Exceptions to this policy for reasons of religious observance or civic obligation will only be made available when the assignment cannot reasonably be completed prior to the due date and you make arrangements for late submission in advance.
Arrive to class on time and stay to the end of the class period. Chronically arriving late or leaving class early is unprofessional and disruptive to the entire class. Repeated tardiness will have an impact on your grade.
Turn off all electronic devices prior to the start of class. Laptops, cell phones and other electronic devices are a distraction to everyone.
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior. Students who fail to do so may be asked to leave the classroom.
Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission.
Course evaluations are important to us and to students who come after you. Please complete them thoughtfully.
Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:
Exercise integrity in all aspects of one's academic work including, but not limited to, the preparation and completion of exams, papers and all other course requirements by not engaging in any method or means that provides an unfair advantage.
Clearly acknowledge the work and efforts of others when submitting written work as one’s own. Ideas, data, direct quotations (which should be designated with quotation marks), paraphrasing, creative expression, or any other incorporation of the work of others should be fully referenced.
Refrain from behaving in ways that knowingly support, assist, or in any way attempt to enable another person to engage in any violation of the Code of Conduct. Our support also includes reporting any observed violations of this Code of Conduct or other School and University policies that are deemed to adversely affect the NYU Stern community.
The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:
To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin. Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications. Additionally, your document will become part of the Turnitin database.
Recording of Classes
Your class may be recorded for educational purposes
Students with Disabilities
If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend. If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.