July 18, 2021

ICFAI University - Operations Management - Syllabus and Notes


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Operations Management - ICFAI University 2020 Syllabus

 

Operations Management - An Overview: 

Operations Management Decisions - Historical Evolution of Operations Management: Scientific Management, Moving Assembly Line, Hawthorne Studies, Operations Research - Computers and Advanced Operations Technology.

 Introduction to the Field


Operations Strategy: Operations Strategy as a Competitive Weapon: 

Shorter Product life cycle, production flexibility, Low cost process, Convenience and location, product variety and facility size, quality. 

Elements of Operations Strategy: Designing the Production System, Product/service Design and Development, Technology Selection and Process Development, Allocation of Resources to Strategic Alternatives, Facility Planning.

Developing an Operations Strategy.

Operations Strategy and Competitiveness


Forecasting Demand: 

Forecasting in Operations - Forecasting Methods - Qualitative  Method, Delphi Method, Nominal Group Technique, Time-series Methods: Simple Moving Average, Weighted Moving Average, Exponential Smoothing, Causal Quantitative Methods - Linear Regression - Selecting a Forecasting system: Time span, Data availability, Cost and Accuracy - Measures of Forecasting Accuracy: Mean Absolute Deviation, Mean Square Error, Mean Forecast Error, Mean Absolute Percentage Error, Tracking signal - Monitoring and Controlling Forecasts.

Forecasting


Allocating Resources to Strategic Alternatives:  

Allocation Decisions in Operations Strategy: Components of Constrained Optimization Models, Merits and Demerits of Constrained Optimization Models - Linear Programming in Operations Management : Assumptions of Linear Programming, Characteristics of Linear Programming - Formulation of Linear Programming Problems: Identify the decision variables, Define the objective function, Identify and express relevant constraints- Solution of Linear Programming Problems: Graphical Method, Simplex Method – The Transportation problem in linear programming : North-west corner method, Least cost method, Vogel's approximation method, Stepping stone method.

Optimizing the Use of Resources with Linear Programming - Review Notes


Design of Production Processes: 

Process Planning and Design - Major Factors Affecting Process Design Decisions: Nature of Demand, Degree of Vertical Integration, Flexibility, Degree of Automation, Quality Level and Degree of Customer Contact - Types of Process Designs:  Product Focused, Process Focused, Group Technology - Process Planning Aids: Assembly Charts, Process Charts - Selecting the Type of Process Design -Variety and Volume, Investment, Economic analysis.

Job Design and Work Measurement
Product Design and Process Selection—Manufacturing
Facility Layout
Product Design and Process Selection—Services
Waiting Line Management

Process Analysis


Facility Location and Layout: 

Importance of Location – Factors affecting the location decision: market proximity, Integration with other Parts of the Organization, Availability of Labor and Skills, Site Cost, Availability of Amenities, Availability of Transportation Facilities, Availability of Inputs, Availability of Services, Suitability of Land and Climate, Regional Regulations, Room for Expansion, Safety Requirements, Political, Cultural and Economic Situation, Regional Taxes, Special Grants and Import / Export Barriers - General Steps in Location Selection and Location Decision Process: Define the Location Objectives and Associated Constraints, Identify the Relevant Decision Criteria, Relate the Objectives to the Criteria Using Appropriate Models, Do Field Research to Relevant Data and Use the Models to Evaluate the Alternative Locations, Select the Location that Best Satisfies the Criteria - Location Evaluation Methods: Cost-profit-volume or Break-even analysis, point rating method, The transportation method of linear programming -  Facility Layout: Criteria for good layout - Basic Layout Formats: Process layout, Product layout, Group technology layout, Fixed position layout, Hybrid layout - Developing a Process Layout: Graphic and Schematic analysis, Computer Models-CRAFT, Load distance model - Developing a Product Layout: Line balancing, Steps in assembly line balancing, Mixed-model line balancing - Developing A Cellular Manufacturing Layout - Japanese Approaches and Trends in Manufacturing Layouts - Service Facility Layouts.

Facility Layout


Aggregate Planning: 

Overview of Planning Activities: business planning, operational planning- The aggregate planning process: Concept of Aggregation, Aggregate Planning Goals, Forecasts of Aggregate Demand, Inter Relationships Among Decisions - Strategies for Aggregate Planning: Pure Planning Strategies-Aggregate planning Techniques: Graphical Method for Aggregate Output Planning, Optimal Models for Aggregate Planning, Heuristic models, Computer search models, computer simulation in capacity evaluation - Master production Schedule: master production scheduling, Master schedule formation - Implementing aggregate plans and master schedules: Unplanned events, Behavioral considerations-Capacity planning.

 Aggregate Sales and Operations Planning


Fundamentals of Inventory Control: 

Purpose of Inventories: Smooth production, better service to customers, protection against business uncertainties, Take advantage of quantity discount - Inventory Costs – Purchase costs, Carrying Costs, Ordering Costs, Stock-Out Costs - Inventory Systems - Fixed Order Quantity System, Fixed Order Period System - Economic Order Quantity Model – Reorder Point, Optimal Order Quantity


Purchase Management: 

Importance of Purchasing: Impact of Costs on Profits, Increasing Prominence of Automated manufacturing, Increased Global Competition - Organizing Purchasing – Responsibilities of Purchase Manager - Vendor Development, Selection of Suppliers, Contract Negotiation and Communication Interface, Value analysis- Purchasing Process - Duties of Buyers - Make-or-Buy Analysis - Ethics in Buying


Job Design: 

Design fundamentals: Objectives of Job Design, Technical Feasibility, Economic Feasibility, Behavioral Feasibility - Considerations in Job Design: Job Content, Specialization -Work Environment: Tools and Equipment, Atmosphere, Worker Motivation - Uses of Job Design -Job Analysis, Job Description

Job Design and Work Measurement

Work Measurement: 

Uses of Setting Work Standards - Work Measurement Techniques:  Time Study, Standard Data, Predetermined Motion Time study, Work Sampling, Historical Analysis, Employee Self Timing - Compensation


Recent Trends in Operations – Technology: 

Automation: Advantages and disadvantages of automation - Overview of Manufacturing Activities - Automation in Engineering Design and Support, Computer Aided Design-Automation in Controlling Processing Equipment: Computer Aided Manufacturing, Flexible Manufacturing System, Computer Integrated Manufacturing - Artificial Intelligence: Expert Systems, Robotics - Electronic Data Interchange


Materials Management: 

Necessity of Materials Management - Functions of Materials Management: Production Control, Inventory Control, Materials Handling - Materials Management Technology – Robots, Automated Storage and Retrieval Systems, Automated guided vehicles - Materials Management Techniques: JIT Purchasing, Kanban Systems, ABC Classification Systems.


Inventory Management: 

Dependent Demand: Fundamentals of Materials Requirement Planning: Objectives of MRP: Improved customer service, reduced investment in inventory, Improved operating efficiency, faster response to market change - Components of an MRP system: MRP system inputs, MRP system information processing, MRP system outputs- Advantages and disadvantages of MRP system - Problems in implementing MRP systems: Inadequate employee training and involvement, Use of inaccurate and obsolete data, inappropriate product environment - Manufacturing resource planning (MRP II)

Inventory management


Enterprise Resource Planning: 

Evolution of ERP – Business Process Reengineering: BPR and IT – Business Modeling for ERP: Integrated data model - ERP Implementation: ERP implementation methodology - Guidelines for ERP implementation: Define corporate needs and culture, complete business process change, communication across the organization, provide strong leadership, select a balanced team, select a good method of implementation, organization wide training – ERP and competitive advantages: price, delivery reliability and speed, quality, product range

Resource Planning


Supply Chain Management: 

Business Drivers in Supply Chain Management: Inventory, Transportation, facilities, information - Principles of Supply Chain: segment customers based on service needs, Customize the logistic network, Plan based on market demand, Enhance ability to meet customer requirements, Improve relationships with the suppliers, have a supply chain wide technology strategy, devise a complete supply chain performance measure- Forces shaping supply chain management: consumer demand, globalization, Competition, Information and communication, Government regulation, Environment- Supply Chain Management Framework: The seven SCM components, The six SCM enablers – Customer Focus in Supply Chain Management: Demand Chains A focus on end users, Broad trends and misconceptions, creating the demand chains of the future - Electronic Supply Chain Management: ESCM advantages, ESCM Implementation

 MANAGING SUPPLY CHAINS

 Supply Chain Design

Supply Chain Logistic Networks

 Supply Chain Integration

 Supply Chain Sustainability


Operations Scheduling: 

Purpose of Scheduling - Scheduling methods: Forward scheduling, Backward scheduling - Scheduling Activities: Routing, Loading, Dispatching - Scheduling by Type of Operations: Job operations, Repetitive operations, Labor intensive operations, Service operations- - Scheduling techniques: Gantt charts, Johnson’s job sequencing rules, Queuing analysis, Critical ratio method.

Operations Scheduling

Just-In-Time Manufacturing: 

The Concept of the JIT:  People Involvement, Teamwork,  Discipline, Supplier Involvement, Total Quality Control, Concept of immediate customer - Advantages of JIT systems – Characteristics of JIT systems: uniform workstation loads, small lot sizes, closer supplier ties, maintaining high quality, Quick and economic setups, Flexible facilities and Multi-skilled Workforce,  preventive maintenance, Continuous improvement.

 Just-in-Time and Lean Systems


Quality Management: 

Strategic Role of Quality: Performance, features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived quality-Role of Inspection in Quality Control - The Cost of Quality: Cost of prevention, Cost of detection/appraisal, Cost of failure – Statistical Concepts in Quality Control: Control charts, Essential steps in starting a control chart, Control charts for variables, Control charts for attributes, Acceptance plans – Computers in Quality Control - Concept of TQM.

 Quality and Performance

Total Quality Management: Focus on Six Sigma
Process Capability and Statistical Quality Control

Maintenance Management: 

Necessity of Maintenance Management: Impact of poor maintenance, Area of maintenance - Types of maintenance - Preventive maintenance, Predictive maintenance, Remedial maintenance- Economies of maintenance - Modern approaches to preventive maintenance – Evaluation of preventive maintenance - Recent trends in maintenance


Project Management: 

Necessity of Project Management - Network based scheduling techniques: Advantages of network scheduling - Networking conventions: Activity-On-Node, Activity- On-Arrow - Networking terminology - Project management methods: Program evaluation and Review Technique, Cautions regarding PERT, Advantages and disadvantages of PERT - Phased PERT/CPM: Project planning and sequencing, Time estimating and critical path, project scheduling, Reporting and updating – Project crashing

Project Management


Operations in Global Business Strategy: 

Significance of Globalization - Sources of global competitive advantage: Comparative advantages, Economies of scale, Proprietary product technology - Difficulties in managing globalization: Economic impediments, Managerial impediments, Institutional impediments, Trade-offs in globalization – Operations strategy changes necessary for globalization: Selection of markets, Product development and technology choice, Allocation of resources- Managing Globalization: Changing the organization's structure, Changing manager's attitude, Developing core competencies for global learning – Operations in Global Business Strategy: Management and Organization, Facilities, Capacity, Technology, Innovation, Integration, Workforce, Procedures Planning




Operations Management - Krajewski  et al. Book- 12th Edition - Chapter Summaries


Important Points - Summary


Chapters



1. Using Operations to Create Value

Supplement A: Decision Making



PART I: MANAGING PROCESSES

2. Process Strategy and Analysis

3. Quality and Performance

4. Capacity Planning

Supplement B: Waiting Lines

5. Constraint Management

6. Lean Systems

7. Project Management



PART II: MANAGING CUSTOMER DEMAND

8. Forecasting

9. Inventory management

Supplement C: Special Inventory Models

10. Operations Planning and Scheduling

Supplement D: Linear Programming

11. Resource Planning



PART III: MANAGING SUPPLY CHAINS

12. Supply Chain Design

13. Supply Chain Logistic Networks

14. Supply Chain Integration

15. Supply Chain Sustainability



Operations Management for Competitive Advantage

Richard B. Chase, University of Southern California
F. Robert Jacobs, Indiana University–Bloomington
Nicholas J. Aquilano, University of Arizona
McGraw-Hill
ISBN: 0072506369
Copyright year: 2004


Review Notes for Quick Revision of the chapters in the Operations Management Text. 





SECTION ONE: OPERATIONS STRATEGY AND MANAGING CHANGE

1. Introduction to the Field
2. Operations Strategy and Competitiveness
Technical note 2 Learning Curves
3. Project Management

SECTION TWO: PRODUCT DESIGN AND PROCESS SELECTION

4. Process Analysis
Technical note 4 Job Design and Work Measurement
5. Product Design and Process Selection—Manufacturing
Technical note 5 Facility Layout
6. Product Design and Process Selection—Services
Technical note 6 Waiting Line Management
7. Total Quality Management: Focus on Six Sigma
Technical note 7 Process Capability and Statistical Quality Control
8. Operations Consulting and Reengineering

SECTION THREE: SUPPLY CHAIN DESIGN
(Managerial Briefing Electronic Commerce and E-Ops©)

9. Supply Chain Strategy
10. Strategic Capacity Management
Technical note 10 Facility Location
11. Just-in-Time and Lean Systems

SECTION FOUR: PLANNING AND CONTROLLING THE SUPPLY CHAIN
(Managerial Briefing Enterprise Resource Planning Systems)

12. Forecasting
13. Aggregate Sales and Operations Planning
14. Inventory Control
15. Material Requirements Planning
16. Operations Scheduling
Technical note 16 Simulation
17. Synchronous Manufacturing and Theory of Constraints

SUPPLEMENTS


B. Financial Analysis
C. Operations Technology

Updated 19 July 2021

Pub 26 November 2020



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