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Introduction to the Course

Operations Management

Master Degree CourseIn Management Engineering

Prof. Sergio Cavalieri

1Università degli Studi di Bergamo – Riproduzione riservata

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Course objectivesOperations Management course aims to provide the student of the

graduate program in Management Engineering with an understanding of the issues related to the strategic management of

Operations in terms of concepts, methodologies and tools needed to optimize the manufacturing processes both in terms of radical

change and of continuous improvement

Success factors

Breakthrough

approaches

Continuous

improvement

Current

activities

Università degli Studi di Bergamo – Riproduzione riservata

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Educational goalsBy the end of the course, students will acquire

Knowledge related to the methods of analysis, the modeling and simulation techniques of the business processes,

Mastery on how to manage the Production Planning and Control Process, in order to complement the knowledge already acquired during the industrial production management course,

Insight on the role of the industrial services, and in particular on the maintenance activities to support the company operations,

Good theoretical and practical understanding of the lean production techniques: kaizen principles, auto-quality, just in time techniques, and Hoshin


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Management Theory and Practice

The Course includes the alternation of theoreticalsessions with exercises and simulation business casestudies, and at least one industrial visit

It also provides articles related to industrial casestudies to complement the theoretical part.


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Course OrganizationResponsible: Prof. Sergio Cavalieri

Teaching assistants: Dr. Fabiana Pirola – assistant researcher of CELS Center

– Research Group on Industrial Engineering, Logisticsand Service Operations

E-learning: http://elearning8.unibg.it/moodle25


http://elearning8.unibg.it/moodle25

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Lecture Schedule

Lectures are normally scheduled in the following days andhours.

• Tuesday from 2.00 pm to 5.00 pm

• Thursday from 2.00 pm to 4.00 pm

Schedules could be subjected to variations or prolongationsaccording to the specific topic or for logistics reasons.In particular, the lectures given by Prof. Crespo will betaught on Thursday and Fridays afternoon with a 4-hourschedule for each module.


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Course program and calendar - 1


Date Subject Professor02/10/2014 Role of Operations in manufacturing and service industries Cavalieri07/10/2014 Tutoring - Fundamentals of OM Pirola09/10/2014 Operations Strategy in industrial companies Cavalieri14/10/2014 Operations Strategy in industrial companies Cavalieri

16/10/2014 Innovative operation strategies in Spain. Sample case studies in the service sector and in the textile industry Crespo

17/10/2014 Methods and techniques for maintenance management effectiveness and efficiency Crespo

21/10/2014 Business Process Re-engineering Cavalieri23/10/2014 Methods and tools for Business Process Modeling and Simulation Pirola28/10/2014 Exercises on BPM Pirola30/10/2014 Exercises on BPM Pirola04/11/2014 Simulation Pirola


Course program and calendar - 2

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Date Subject Professor06/11/2014 Methods and techniques for maintenance management control Crespo07/11/2014 Methods and techniques for maintenance management control Crespo11/11/2014 Industrial Visit Cavalieri, Pirola13/11/2014 Kaizen, polivalence and policompetence Cavalieri18/11/2014 Lean Production: definition and general concepts. Cavalieri20/11/2014 No lecture25/11/2014 VSM (Case study) Cavalieri27/11/2014 VSM (Case study) Cavalieri02/12/2014 Industrial Visit in ABB Cavalieri, Pirola04/12/2014 SMED Cavalieri09/12/2014 Lean Production: Indicators Cavalieri11/12/2014 Lean Production: Indicators (exercise) + Final Lecture Cavalieri16/12/2014 No lecture18/12/2014 No lecture

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Exam RulesThe examination will consist of two parts: Written Oral (based on assignments)

The written exam includes exercises and questions, based on all theOperations Management program (exercise, theory and mandatorypapers).

The oral exam consists of the discussion of the assignments. The assignments can be prepared either individually or by groups

of two students. The assignments must be uploaded on the eLearning platform 1 week

before the written exam (the duedate will be available on the platform) The assignments’ contents and rules will be provided during the course


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Consulting Hours

Prof. Sergio Cavalieri – Office 406 – Tuesday from 9.30 am to 11.30 am (Appointment needed). e-mail: [email protected] Ph. 035-2052384

Ing. Fabiana Pirola – CELS Lab– Monday from 10.30 am to 12.30 am (Appointment needed). e-mail: [email protected] Ph. 035-2052005


mailto:[email protected]

mailto:[email protected]

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What is Operations Management?

Operations Management is responsible for all activities ofplanning, implementation and improvement of businesssystems that create products and provide services.

It supervises an entire system that produces an asset ordelivers a product or a service.

Operations operate in production systems. They produceproducts, manage quality, create services.They are located in banking systems, hospitals, companies,working with suppliers, customers, and using technology.


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Why should we studyOperations Management?

Education in management Management

Operations


Systemic vision of business processes

Career Opportunities

Interdisciplinaryapplications

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Systemic Vision

Procurement Production Order delivery

Collectionand order

entry

Create delivery

Transport.planning

VehicleReceiving

Picking and delivery output

TransportPromotion Billing

AvailabilityControl

PriceControl

Master data setControl

CreditControl

Primary processes

Demand satisfaction

Support process

Case: Active Cycle – Expedite an order


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From the steam engine….


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…to a complex logistics system

Volkswagen Logistics Network


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Education in management disciplines

Finance / AccountingProduction and Inventory data

Capital budgeting request

Capacity expansion and technology plans

Budgets

Cost Analysis

Capital investments

Stockholder requirements

Personnel needs

Skill sets

Performance evaluations

Job design

Work measurement

Hiring/firing

Training

Legal requirement

Union contractNegotiations

Human Resources

Sup

plie

rs

Orders for Materials

Production and Delivery schedules quality requirements Design/performance Spec

Material available

Quality data

Delivery Schdules

Design

Marketing

Product /service available

Lead – time estimates

Status of order

Delivery Schedules

Sales Forecast

Customers Orders

Customer feedback

Promotions

Operations


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Interdisciplinary applications

WSM

WDP

DP

WOM

OPS

AATP

PPATP

DMO

eXecute!

Aggregate demand planning

Aggregate production & purchase &distribution planning

Production todemand allocation

(AATP)

Order quotingwith ATP

Product & Processdevelopment

Marketing and/or customers

Searching & qualifing suppliers

Collaborative sourcing(contract definition)

Detailed production & purchase & distribution planning & scheduling

Production & purchasescheduling

Distributionscheduling

Order quotingwith CTP

Collaborative ordering(order launching/

dispatching)

Distributeb demand planning(local area/channel)

Collaborative ordering(order launching/

dispatching)

Supp

liers

/sub

cont

ract

ors

Collaborativedelivering

(order replanning)

Order tracking & monitoring

Agents/commercial partners

Custom

ers/distributors

Collaborativereplanishment

Collaborative sourcing(contract definition)

Shop floor control Order tracking & monitoring


Management; 3%Gestione della qualità;

13%

Produzione; 10%

Informatica; 8%

Responsabile altre mansioni; 10%

Banche - Consulenza finanziaria; 8%

Controllo di gestione; 4%

nsegnamento; 3%

Impiegato altre mansioni; 13%

Altro; 1%

Logistica; 13%

Commerciale - marketing; 6%

Progettazione; 7%

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Career OpportunitiesMain areas of graduate employment in Management

Engineering at Politecnico of Milan

(fonte AIP-IARD )

The first job after graduation (Politecnico)

Main areas of graduate employment in Management Engineering at University of Bergamo

Major industries (UNIBG)Informatica e servizi

annessi; 11%

Industria altro; 25%

Industria metalmeccanica; 33%

Industria macchine elettriche, ottiche ed

elettroniche; 2%

Altro; 14%

Industria costruzioni; 4%

Credito, assicurazioni, interm. finanziaria; 6%

Commercio ecc. 6%

Article Corriere Article Italia Oggi


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The ten main dutiesof an Operations Manager

Product/Service planning design Business process (re-)engineering Factory Lay-out Planning Human Resources Management Supply Chain Management Inventory management Production planning and control Industrial Asset Management Quality Management


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What is a production system ?

A production system is traditionally defined as a system that uses resources to transform inputs into desired output


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Transformation Processes

Physical processes (ex. manufacturing) Localization processes (ex. transport) Trade processes (ex. trading retail) Storage processes (ex. goods warehouse) Human-related processes (ex. health care); Information processes (ex. telecommunications).


Produce to serve

Università degli Studi di Bergamo – Riproduzione riservata 22

“The line between manufacturing and services is blurred”The Economist

Extended productObject that integrates the key features of a tangible product. It's also aset of services that contribute to highlight its properties and to diversifythe supply on the market.

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The variety of services to support the life cycle of a product

Source: Thoben et al. (2002)


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The effect on management policies

source Thoben et al. (2002)


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«Production» in a hospital

Fonte: iBMG – Erasmus University


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Managing Operations in a hospital

Fonte: iBMG – Erasmus University


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The organization chart of OM

The company brings together its own manufacturing operations usually needed to carry the product in one area or function.


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OM in Corporate Services

In service businesses, operations pervade the wholeorganization:

in an airline company managing reservation is part ofthe process of operations, although the departmentis specifically dedicated to operations;

This is most visible in the banking system, whichoften provide a "production unit" both at the counterof commercial services and at the counter ofconventional services.


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OM in an Airline company


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OM in Customer Service


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Decision levers available to OM

sourcesourceSupplierCustomer

PERFORMANCE MEASUREMENT

SUPPLY CHAIN PLANNING

OPERATIVE LOGISTICS

stockstockmakemake deliverdeliver

SUPPLY -CHAIN CONFIGURATION

CUSTOMER SERVICE

STRATEGY

Strategic level

DemandInventoryDistributionProductionSupply

Tactical level

Execution level

Dec

isio

nLe

vel


32Università degli Studi di Bergamo – Riproduzione riservata

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