lsm 733- production operations management osman bin saif lecture 1 1

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LSM 733-Production Operations

Management

OSMAN BIN SAIF

LECTURE 1

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Self Introduction

• Finance Graduate;– MSC. Accounting and Finance (University of Exeter, UK)– MBA- Finance (SZABIST, Islamabad)– Certified Financial Consultant (IFC , Canada)– Certifications in Project Management, Monitoring and

Evaluation and Research Policy Development and Futures.

• Consultant with SDPI• Senior Researcher with TP WING, MOC• Visiting Faculty various universities and institutes.

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Agenda for this Session

• Course Mission• Course Objectives• Expected Student Learning Outcomes– General– Specific

• Generic Skills• Recommended Reading Text Book

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Agenda for this Session (Contd.)

• Class Procedures– Presence– Participation– Internet exploration

• Assessment System– Quiz Test– Mid term exam– Final Exam

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Agenda for this Session (Contd.)

• Course Structure / Contents• Grading System• Guidelines for written work, assessment and

plagiarism

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COURSE MISSION

• The Production Operations Management course prepares students for leadership positions in the production and service industries.

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SUBJECT OVERVIEW

• Topics include the role of operations; the link between strategy and operations; productivity; decisions in the operations area; planning and control of inventory, projects and the transformation process including Total Quality management, Just-in-Time, kanban and 'lean production' systems.

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SUBJECT OVERVIEW (Contd.)

• Students will understand the principles and practice of factors which influence the capacity to compete effectively in manufacturing and service operations

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COURSE OBJECTIVES

1.Understand the role of operations management in the overall business strategy of a firm

2.Understanding the interdependence of the operating system with other key functional areas, like marketing, finance, accounting, human resource, etc.

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COURSE OBJECTIVES (Contd.)

3. Identifying and evaluating key factors and the interdependence of these factors in the design and control of effective operating systems

4. Learning how to use a range of concepts and analytical tools to solve common operational problems such as demand forecasting, capacity planning, quality control, production planning, material planning and inventory control, etc.

5. To understand basic project management methodology

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EXPECTED STUDENT LEARNING OUTCOMES

• GENERAL LEARNING OUTCOMES

• Upon completion of this course, Production Operations Management students will be able to:– Explain the major concepts in the functional areas of

accounting, marketing, finance, and management.– Evaluate the legal, social, and economic

environments of business.

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EXPECTED STUDENT LEARNING OUTCOMES (Contd.)

– Describe the global environment of business.– Describe and explain the ethical obligations and

responsibilities of business.– Apply decision-support tools to business decision

making.– Construct and present effective oral and written

forms of professional communication.– Apply knowledge of business concepts and

functions in an integrated manner.

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– Use specialized knowledge in Operations Management to solve business processes.• Apply knowledge of fundamental concepts of

operations management.• Apply knowledge of approaches to operational

performance improvement.

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– The functions within operations management in service and manufacturing industries, eg supplier management, inventory control, design, production planning, workflow management and customer service.

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• SPECIFIC LEARNING OUTCOMES

• Learning Outcomes: Students who successfully complete this subject should: – The overall framework of operations management

as part of organisational strategy.– How to plan capacity and facility usage.– The managerial issues involved in introducing new

projects.

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– The different concepts of flexibility in service and manufacturing enterprises.

– How to generate different manufacturing strategies.

– The relationships between the manufacturing strategy of the enterprise and the competitive strategy for the business as a whole.

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– The role of quality in the operations process.– The implications for management of the

differences between the various methods of organizing manufacturing eg batch production, jobbing, continuous production and large project manufacturing

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GENERIC SKILLS:

• On successful completion of this subject students should have enhanced their skills in:– Ethical behavior in leadership and organizations– Analysis and problem solving– Capacity for intellectual curiosity, creativity and

independent thought

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GENERIC SKILLS (Contd.)

– Communication of key ideas and theories within the discipline areas

– Capacity for effective teamwork and collaboration– Information retrieval and application in relation to

practical problems

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RECOMMENDED READING TEXT BOOKS:

• Operations Management by Jay Heizer and Barry Render, 10th Edition

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RECOMMENDED READING TEXT BOOKS (Contd.)

• Modern Production / Operations Management by Elwood S. Buffa and Rakesh K. Sarin , 8th Edition , Published by John Wiley and Sons.

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CLASS PROCEDURES

• Presence. Students are required to see lectures at least 95% of total lectures. This will help them to achieve good grade and better understanding of the course.

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CLASS PROCEDURES (Contd.)

• Participation. Students are highly expected to think ideas, thoughts, experiences, and arguments while going through the lectures. Although overviews of key points and issues are provided, it is required that students comprehend the materials in details, raise thinking and ideas

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CLASS PROCEDURES (Contd.)

• Internet Exploration. Students are encouraged to harness the advancement of information and communications technology (ICT) in exploring knowledge and opportunities. Remember that in current circumstances, a clever person is not he/she who can answer all questions; rather, it is he/she who knows where to find answers.

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ASSESSMENT

• Item Weightage• Quizzes 10%• Assignments 10%• Graded Discussions 5%• Mid Term examination 25%• Final examination 50%

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ASSESSMENT• QUIZZ TEST

– There will quiz test after every fifth lecture.

• MID TERM EXAM

– There will be a mid term exams, after 15th lecture.

• EXAMINATIONS

– The purpose of Mid term and Final exam is to examine students’ knowledge and understanding on concepts learnt in the lectures.

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COURSE STRUCTURE/ CONTENTS

• The course content is outlined around specific themes, issues and historical backgrounds which student must know, understand and relate them in order to understand need of Production operations management. In all, topics are grouped and discussed around Thirty two lectures, which, for the purpose of convenience, may be placed under four major sections.

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COURSE STRUCTURE/ CONTENTS (Contd.)

• Section 1: Introduction to Production Operations Management– Chapter 1: Introduction to Production Operations Management

• What is production operations management?• Organizing to produce goods and services.• Why study POM• What operation managers do• The heritage of POM• Operations in service sector• Exciting new trends in operations management• The productivity challenge• Ethics and Social responsibility

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• Chapter 2: The Global Environment and Operations Strategy– A global view of operations– Developing missions and strategies– Achieving competitive advantage through operations– Ten strategic POM decisions– Issues in operations strategy– Strategy development and implementations– Global operations strategy

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• Chapter 3: Managing Projects– The importance of Project management– Project planning– Project scheduling– Project controlling– PM Techniques – PERT– Using Microsoft Project to manage projects

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• Chapter 4: Forecasting Demand– What is forecasting– The strategic importance of forecasting– Seven steps in forecasting– Forecasting approaches

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• Section 2: Designing Operations– Chapter 1: Product Design

• Goods and services selection• Generating new products• Product development• Issues for product design• Ethics, environmentally-friendly designs and sustainability• Time based competition• Defining a product• Documents for production• Service design• Application of decision trees to product design

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• Chapter 2: Quality Management– Quality and strategy– Defining quality– International quality standards– Total quality management– Tools of TQM– The role of inspection

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• Chapter 3: Process Design– Four process strategies– Process analysis and design– Special consideration for service process design– Selection of equipment and technology– Production technology– Technology in services– Process redesign– sustainability

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• Chapter 4: Location Decision– The strategic importance of location– Factors that affect location decisions– Labour productivity– Exchange rates and currency risk– Political risk, values and culture– Proximity to markets– Proximity to suppliers– Proximity to competitors

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• Chapter 5: Layout Decision– The strategic importance of layout decisions– Types of layout– Office layout– Retail Layout– Warehousing and storage Layout– Fixed Position Layout– Work cells– Repititive and poduct oriented layout

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• Chapter 6: Job Design– Human resource strategy for competitive advantage– Labor planning– Job design– Ergonomics and the work environment– Methods analysis– The visual workplace– Labor standards– Ethics

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• Section 3: Managing Operations– Chapter 1: Managing Supply Chain

• The supply chain’s strategic importance• Ethics and sustainability• Supply chain economics• Supply chain strategies• Managing the supply chain• E-procurement• Vendor selection• Logistics management• Measuring supply chain performance

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• Chapter 2: Managing Inventory– The importance of inventory– Managing inventory– Inventory models– Probabilistic models and safety stockmodels and

safety stock

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• Chapter 3: Aggregate Scheduling– The planning process– The nature of aggregate planning– Aggregate planning strategies– Methods of aggregate planning– Aggregate planning in services– Yield management

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• Chapter 4: Material Requirement Planning– Dependant demand– Dependant inventory model requirements– MRP structure– MRP management– Lot sizing techniques– Extensions of MRP

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• Chapter 5: JIT, Lean operations– JIT – JIT layout– JIT inventory– JIT scheduling– JIT quality– Lean operations– Lean operations in services

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• Chapter 6: Maintenance and Reliability Operations– The strategic importance of maintenance and

reliability– Reliability– Maintenance– Total productive maintenance– Techniques for enhancing maintenence

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• Section 4: Quantitative Modules– Chapter 1: Decision Modeling• The decision process in operations• Fundamentals of decision making• Decision tables• Decision trees

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• Chapter 2:Transportation Modeling– Transportation modeling– Developing an initial solution– The stepping stone method– Special issues in modeling

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• Chapter 3: Queuing Models– Queuing theory– Characteristics of the waiting line models– Queuing costs– The variety of queuing models– Other queuing approaches.

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GRADING SYSTEM

GRADE A B C D F

% 80-100 70-79 60-69 50-59 0-49

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GRADING SYSTEM (Contd.)

• • D (50-59) means that you are able to summarize and order readings relevant to the topic.

• • C (60-69) means that you do this with some greater precision and flair or more comprehensively and/or accessibly.

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GRADING SYSTEM (Contd.)

• • B (70-79) indicates that you have shown evidences of substantial and well argued independence of thoughts, insightful evaluation, or original research.

• • A (80-100) indicates that you have added significant new values to existing knowledge or understanding through logic or evidence of some ingenuity, creativity, or excellence.

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GUIDELINES FOR WRITTEN WORK, ASSESSMENT, AND PLAGIARISM

• At the University level, a high quality presentation and content is required. All works should be typewritten, proofread, and checked for accuracy before submission. Marks will be deducted for lack of referencing. The University has strict rules regarding honesty in-assessment.

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GUIDELINES FOR WRITTEN WORK, ASSESSMENT, AND PLAGIARISM (Contd.)

• All students should be aware of the rules concerning misconducts in-assessment, which prohibit certain behaviors, such as:

• • No part of the work has been copied from any other person’s work except where due acknowledgement is made in the text,

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GUIDELINES FOR WRITTEN WORK, ASSESSMENT, AND PLAGIARISM (Contd.)

• • No part of the work has been written by any other person except where such collaboration has been authorized by the lecturer concerned, and

• • No part of the work has been submitted for assessment in another course in this or another part of the university except where authorized by the lecturer concerned.

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Summary of this Session

• Self Introduction• Course outline, Procedures and Structure

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THANK YOU