NYU Stern School of Business

Undergraduate College

OPMG-UB.0001.001 (C60.0001): COMPETITIVE ADVANTAGE FROM OPERATIONS

Fall 2011

Instructor Details

Pinedo, Michael

mpinedo@stern.nyu.edu

(212)998-0287

Monday 5-7 PM (or by appointment)

KMC 8-59

 

Joseph Shipley

joseph.shipley@stern.nyu.edu

none

TBA

TBA

 

Course Meetings

MW, 8:00am to 9:15am

KMC 4-80


Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

See Course Out Line for Course Description:

 

Required Course Materials

Please see below:

 

Course Outline

SYLLABUS

 

COMPETITIVE ADVANTAGE FROM OPERATIONS

 

FALL   2011   OPMG-UB.0001.01

 

MODULE 1: Introduction to Operating Systems:

Process Design and Analysis

Sep 7    SESSION    1:    INTRODUCTION – OPERATIONS AS A SOURCE OF

COMPETITIVE ADVANTAGE

 

  1. Recommended reading : The Goal by E.M. Goldratt
  2. Introduction to Operations Management – Course Introduction and Overview

 

Sep 12SESSION   2:    PROCESS DESIGN

 

  1. Read Chapter 1 in Heizer and Render (H&R)
  2. Read Analysis of Operations (available on Blackboard under Course Documents)
  3. Read, analyze, and be prepared to discuss the Benihana of Tokyo case.

 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 20 minutes in the bar.

  1. Homework #1: Answer questions (b), (c) and (e) and submit at the beginning of class.

 

Make sure to retain a copy of all homework submitted.

 

Sep 14SESSION   3:     OPERATING SYSTEMS – TYPES OF OPERATING

             PROCESSES

 

  1. Read Chapter 7, pages 249-262 in H&R.
  2. Read “Analysis of  Operations” (Available on Blackboard)
  3.  Discussion questions 2,4,9,11,12,13, and 14 in H&R (p 274)

 

 

 

 

Sep 19  SESSION   4:    PROCESS ANALYSIS (1)

 

  1. Read Chapter 7, pages 262-273 in H&R
  2. Read Chapter 5, pages 151-163 and 174-176 in H&R
  3. Read, analyze and be prepared to discuss the Kristen's Cookie Company case (Harvard Case) utilizing the six key questions at the end as guides.  In particular prepare the question:   What are the cycle time, throughput time, and capacity of each operation and the whole production system?
  4. Homework 2: Draw a Gantt chart for Kristen's operation assuming orders are for two-dozen cookies, orders come in every 12  minutes AND Kristen’s roommate is absent. Draw the Gantt chart for just the first three orders.                                 (The use of Gantt charts is explained on pages 15 and 16 of “Analysis of an Operation” under Course documents on Blackboard).                                                                               Submit this analysis at the beginning of the class.

 

 

Sep 21SESSION   5:     PROCESS ANALYSIS (2)

 

  1. Read the Donner Company case. 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
  2. Use the following study questions as guides in analyzing the case:

a)      Describe Donner as an operating process. To simplify this task, consider only the flow of the most important output.

b)      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?

c)      What factors influence the capacity of the entire system? What is the current utilization of the machines?

d)     What was the efficiency of Donner?

e)      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 26   SESSION    6:    THE BASIC LINEAR PROGRAMMING (LP) PROBLEM

 

  1. Read Quantitative Module B: Linear Programming in H&R (pages 705-720). You may do the first reading for a quick overview.
  2. Read (more carefully) pages 705-712, again.
  3. Attempt Problem B.10 on page 727.
  4. Be sure you get the handout with five extra problems.

 

 

 

 

 

Sep 28  SESSION     7:     SOLUTION TECHNIQUES: GRAPHICAL METHOD AND

             ENUMERATING THE CORNER POINTS

 

  1. Read pages 689-697 in Quantitative Module B (H&R).
  2. Solve problems B.2 and B.3 on page 709 using (a) Graphical and (b) Enumerating the Corner Points methods.

 

Oct  3  SESSION   8:    LP SOLUTION (LINDO OR EXCEL INTERPRETATION)

 

  1. Solve problems 1-5 on the Hand-out Sheet using EXCEL method.
  2. Solve Problem B.2 and B.3 on page 709, using this method.
  3. Interpretation of the results
  4. Homework #3:Solve and submit problems B.7 and B.15 on page 709 and 710 of the textbook.

 

Oct  5    SESSION    9:     USING THE LP MODEL  AND   MIDTERM   REVIEW

 

  1. Read pages 701-704 in Quantitative Module B (H&R).
  2. Read, analyze, and be prepared to discuss the Otto Development Corporation case.
  3. Review of all the material before the midterm

 

 

Oct 10 Monday      No Stern Classes

 

Oct 12  SESSION    10:         Midterm  Exam  I  

 

 

 

MODULE 3: Time Based Competition

Oct  17     SESSION 11:      TIME BASED COMPETITION

 

1.      Read Chapter 3 in H&R (p. 55-81). Attempt the discussion questions at the end of the chapter.

2.      Draw the networks for the projects described in the FCN/Securities Demo (A) exercise (on Blackboard).

 

 

Oct 19    SESSION   12:       PROJECT MANAGEMENT

 

1.      Read, analyze and be prepared to discuss the other four project management network cases (exercises) assigned in class: FCN (B), FCN (C) (on Blackboard), Specialty Contractors, and Aerospace Components (on Blackboard).

2.      Homework #4: Submit the solutions of Problems 3.7 and 3.9 on pages 90- 91 of H&R. 

 

MODULE 4: Managing Quality as a Strategic Issue

 

Oct 24    SESSION    13:    QUALITY – ITS DEFINITION AND BASIS FOR

               COMPETITION

 

  1. Preview of the next half of the course.
  2. Read Chapter 6 in H&R (p. 197-208)

 

Oct 26  SESSION    14:    QUALITY ANALYSIS, MEASUREMENT AND

              IMPROVEMENT

 

  1. Read the Smith-Thompson case (on Blackboard) and be prepared to discuss.
  2. Homework #5:Do Exercises 1 and 2 of  the Smith-Thompson case.  Which factor(s) have the largest effect on the total expected losses?

 

Oct  31   SESSION   15:      STATISTICAL QUALITY CONTROL

 

  1. Read the Supplement to Chapter 6 in H&R (p. 217-239).

 

Nov 2   SESSION    16:    QUALITY IMPROVEMENT

 

1.      Read, analyze and be prepared to discuss the quality control issues in the South Tree Electronics case (on Blackboard)

2.      In analyzing South Tree's quality control problem the following study questions may help:

a)      Indicate on the process diagram, all current inspection points and note the accumulated cost and yield of each operation and test in the process.

b)      How many circuits must you start with to achieve the desired output level?  

        3.   Homework #6:      (a)  At what yield rate would you be indifferent between continuing and discontinuing the first inspection in the process?   (b) Calculate and submit the cost of a good S-39 circuit. Show all work.

 

Nov 7   SESSION 17:       Midterm  Review

 

Nov 9  SESSION 18:      Midterm Exam  II  

 

MODULE 5: Inventory Concepts and Models

Nov 14  SESSION 19:     INVENTORY / LOGISTICS

 

  1. Read Chapter 12 in H&R (p. 465-487 in H&R).

 

 

 

 

Nov 16  SESSION 20:     THE ROLE OF INVENTORY - THE TRADITIONAL VIEW

 

  1. Read, analyze and be prepared to discuss the Xenon case (on Blackboard).

 

Nov 21  SESSION 21:     INVENTORY MANAGEMENT UNDER UNCERTAINTY

 

  1. Read Chapter 12 in H&R (p. 487-494  in H&R).
  2. Read the Chapter 16 in H&R on Just-in-Time systems (p. 619-639 in H&R)
  3. Read, analyze and be prepared to discuss the L.L. Bean Inc. case.

 

 

Nov 23  SESSION 22:       SUPPLY CHAIN MANAGEMENT

 

  1. Read Chapter 11 and the Supplement to Chapter 11 in H&R (p. 417-459)
  2. Homework #7:  The excel file LLBean.xls (download) contains   demand and forecast data for 84 items. Suppose that these are the data that L.L. Bean will use to plan their next season.  Consider an item that retails for $46  and costs LL Bean $26.  The liquidation price for this item is estimated to be $17.   The sales forecast for this item is 12,500 units.  What order quantity should L.L. Bean choose for this item? 

MODULE 6: Time-to-Market & Responsiveness

 

Nov 28     SESSION 23:  THE EFFECTS OF UNCERTAINTY - WAITING LINES

 

1.      Read Quantitative Module D in H&R on Waiting Lines and Queuing Theory (p. 739-753 in H&R).

2.      Prepare the seventeen discussion questions at the end of Module D in H&R (p. 758).

 

Nov 30   SESSION 24:     INVENTORY IN ACTION: THE BEER GAME

 

ROOM: TBA

 

 

Dec 5   SESSION 25:      QUEUING THEORY IN ACTION

 

Debrief of the Beer Game

Read, analyze, and be prepared to discuss the First City National Bank case (on Blackboard). The following study questions will help:

a)      Considering the data supplied for arrival and service times, how would you calculate an average arrival rate and service rate?

b)      As Mr. Craig, what characteristics of this queuing system would you be most interested in observing?

c)      What is the best number of tellers to use?

d)     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

 

  1. Read Quantitative Module F in H&R on simulation (p. 785-795 in H&R)
  2. Discussion questions 1,2,4,5,7,10,11,12 and 13 H&R (p. 796)
  3. Prepare problem F.1 H&R (p. 800)
  4. Homework #8:Submit the solutions to problems D5, D9, D19 in H&R  (p. 761-763).

 

 

Dec 12   SESSION 27:     USE OF SIMULATION AS A PROBLEM SOLVING TOOL

             FOR OPERATING SYSTEMS

 

  1. Consider the First City National Bank case again (on Blackboard). 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?
  2. Consider the First City National Bank case again. What are the advantages of using simulation to study this operation? What are the limitations?
  3. Which alternative arrangement of teller lines should Mr. Craig select based on the simulations?

 

Dec 14   SESSION    28:     REVIEW OF COURSE MATERIAL

           

 

FINAL EXAMINATION DATES:

 
OPMG-UB.0001.001:      December 21     8:00  –   9:50 AM
OPMG-UB.0001.002:      December 19    10:00 – 11:50 AM.

 

Required Course Materials

MATERIALS REQUIRED

 

CUSTOM TEXT:     COMPETITIVE ADVANTAGE FROM OPERATIONS,

Pearson Custom Publishing; Seventh Edition, .

 

COMPUTER SOFTWARE: NYU Software Packages

 

HARVARD CASES (Included in Case  Book  that accompanies Custom Text)

 

STANFORD CASE

 

NYU STERN CASE

 

OTHER MATERIAL (Included in Custom Text)

 

 

 

RECOMMENDED READING

 

THE GOAL, Third Edition (Buy in Bookstore), Eliyahu M. Goldratt and Jeff  Cox, North River Press, Inc. 2004.

 

Assessment Components

GRADING

 

Class Participation, Attendance, Quizzes       15% 

Homework                                                      15%

Mid-Term Examination I                                20%

Mid-Term Examination II                               20%

Final Examination (Open book)                      30%

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well you actually perform in this course.

 

Re-Grading

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

Attendance

 

Participation

In

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 to carryout the analysis indicated by the study questions. Class attendance and participation will be graded on the scale of (0,2), where 1 is for attending without participating, 1.5 is for contributing some to class discussion, and 2 for a substantial contribution to class discussion.

 

-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:

 

Assignments

HOMEWORK

 You will be assigned homework on a class-to-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.

 Homework will be graded on the scale of (0,.5,1,1.5 and 2), and will not be accepted late. They must be prepared individually in order to receive credit. Please write clearly or word process your homework.  You are allowed to discuss the general issues concerning the homework with one another.  However, the details concerning the homework and the writing up of it, you have to do by yourself (so no two homeworks should look alike). 

 QUIZZES

 A quiz might be given in any session. The quiz will relate to facts given in a case and study questions asked in the syllabus.

 Classroom Norms

 

Stern Policies

General Behavior
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. 

 

HONOR CODE

 

I expect every student to be familiar with the Stern School of Business Honor Code. Some of the ways in which the code applies to this course are discussed below:

 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

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:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

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.

 

Group Projects

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.

 

Course Pre-Requisites

STAT-UB-0103 - Statistics Course

 

Printer Friendly Version