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Operations Management

Учебный год
Обучение ведется на английском языке
Курс обязательный
Когда читается:
3-й курс, 3, 4 модуль


Рудченко Вероника Николаевна

Course Syllabus


Course surveys the management of operations in manufacturing and service firms. Variety activities, such as determining the size and type of production process, purchasing, planning and scheduling the flow of goods and the nature and content of inventories, assuring product quality, and deciding on the hardware and how it gets used, comprise this function of the company. The topics include introduction into process analysis, workforce issues, inventory management, quality and productivity, technology, and strategic planning, together with relevant analytical techniques
Learning Objectives

Learning Objectives

  • The aim of the course is to expand the student's knowledge in the sphere of operational production functions;
  • develop initial skills in order to analyze production processes, human resources' problems, stock management, quality and level of performance, technologies and strategic planning;
  • improve thinking skills, developing the process of decision-making;
  • develop skills of lean production and connected statistical tools;
  • exploit methods of performance operational measurements.
Expected Learning Outcomes

Expected Learning Outcomes

  • The ability to suggest organizational and management decisions and to evaluate the conditions and consequences of these decisions
  • Providing an overview of operating decisions and practices in both manufacturing- and service-oriented firms
  • Expanding knowledge of the operations function
  • Developing entry-level skills of process analysis, workforce issues, inventory management, quality and productivity, technology, and strategic planning
  • Improving thinking skills used to enhance the business decision making process.
  • Developing skills of the Lean Six Sigma methodology and related statistical tools at the green belt level of competency
  • Mastering analytical techniques of measuring efficiency of operations
Course Contents

Course Contents

  • The operations function
    The purpose of this lesson is to introduce the area of study called ‘operations management’. As such it sets the scene for many of the specific objectivessuch as: Defining operations management; The importance of operations management;Setting a context for the subject and Focussing upon the environment.
  • 2 The context of operations management
    2.1. An operating system can be either a micro or a macro system. An understanding of the difference between the two will help to see the link between operational efficiency and business performance. 2.2. The internal relationships and their influences on operations. There are different functions within a business, which can enhance or reduce performance of the operations function. These internal links are identified and investigated. 2.3. The external relationships and their impact on operations. The results achieved by the operations function can be influenced by the external factors affecting the operations. These are identified and their implications considered. 2.4. Transformation model. In the context of operations management, a transformation model is the framework used by the operation to convert its resources into the outputs desired by customers. The key elements of the model are identified and its application to both service and manufacturing industries is investigated. 2.5. Service concept. The service concept provides a way in which customers, employees and shareholders perceive the service of an organization. The key elements of the service concept are identified and discussed. 2.6. Operations strategy and the strategic goals of an organization. To be successful an organization needs to clearly define and implement its corporate, business and functional objectives. The strategies to set and achieve these objectives are defined and the distinction and links between them are highlighted. The type and nature of decision areas in operations management are also explored.
  • 3. Organization of the operation process
    3.1. Process organization. A number of alternative ways of organizing the process have evolved in response to different conditions. These are described and their suitability considered. 3.2. Manufacturing and service operations. While there is a great deal of common ground between manufacturing and service operations, the nature of services imposes constraints and demands upon the operation which are unique. The most important of these are identified and their implications considered. 3.3. Location. One of the most important operations decisions is the location of the operation. In many operations location is a capital-intensive decision and relatively difficult to change. The factors to be taken into account in arriving at a location decision are discussed.
  • 4. Design and measurement of work
    4.1. Approaches to work design. A number of alternative ways of addressing the issue of the design of work have arisen. These are described and their suitability considered. 4.2. Layout. The layout of the premises is important for effective and efficient operation. It also frequently has important implications for safety. The main issues, constraints and methods are discussed. 4.3. Work measurement. The measurement of work is not strictly an aspect of work design, but it is an essential prerequisite for any realistic capacity planning and scheduling. Since it is closely associated with method study, it is discussed here. The main techniques are described along with the circumstances in which their use is appropriate.
  • 5. Managing productivity at work
    5.1. Productivity is seen as one of the most important measures of performance in operations management. In order to make any improvement in the utilization of input resources and to the performance of the transformation process, there must be methods for measuring their current efficiencies. Productivity is also vitally important in terms of profits, customer satisfaction and competition in all types of organization. 5.2. Measurement. Productivity of a resource and performance of a process will not be improved without being first measured. Various ways of measuring productivity will be examined. These will include both the traditional elements and the new criteria such as costs, quality, delivery and flexibility. 5.3. Control and improvement. Performance of organizations in all sectors both at home and overseas depends on their ability to develop sound strategies and effective control policies which will enable them to make full use of their available resources by continuously developing these resources and improving their products and processes using world-class techniques and measurements. Some of the Western and Japanese management approaches used to improve productivity will be outlined.
  • 6. Planning and control of work
    6.1. Planning and control. The basic task of capacity management is to provide the right number of staff, with the right facilities and technology in the right place at the right time. This task cannot be achieved without their first being a plan showing how these resources are to be allocated. Once framed, the implementation of the plan needs to be monitored. Feedback is required from the operation to show if the plan is being achieved. The planning process is thus a dynamic one and plans seldom stay unchanged as the operation attempts to adjust to the demands placed upon it. 6.2. Forecasting. One of the basic difficulties in planning for the future allocation of capacity is to know what the future demand for work is likely to be. In part, the prediction of future demands will rest upon what the managers of the organization know about the behaviors of their customers and users. This knowledge is qualitative and is obviously a potentially very useful source of ideas about what the pattern of demand is likely to be. However, it is unwise to rely solely upon such ‘instincts’ and quantitative data showing the history of actual demand patterns is vital to help the managers of the operation make as accurate an estimate as possible. Some of the simpler quantitative forecasting techniques are illustrated. 6.3. Differing planning time horizons. Some of the lead times involved in allocating capacity can be very long. The building of a brand new operation, for instance, will require a long process of research, planning and execution. It is quite likely that this process will be measured in terms of years. Such capacity decisions as these therefore have to be made with a long-term perspective. Other decisions are made in a much shorter time frame. Changing working patterns to accommodate sudden staff illness is an example of such a decision. The long- and shorter-term aspects of managing capacity are both vital to the primary objective of meeting the workload required. 6.4. Scheduling. The act of allocating people to tasks in the short term is called “scheduling”. Scheduling is a complex activity, with most situations involving an array of different possible schedules. Some of the basic principles are outlined. 6.5.Master scheduling. The main starting point for scheduling operations in batch and flow environments is the master schedule. It is important, therefore, to understand the format of this planning tool and its role in the overall planning and control process. Such considerations lead naturally to the question of what makes a good schedule.
  • 7. Management of materials
    7.1. Materials. The term “materials” has several meanings. The topic will describe some of the more important of these definitions. It should become clear that materials are an important resource in all operations, not just manufacturing. 7.2. Materials system. Like many of the resources involved in operations, materials behave in a dynamic way. The resource changes over time. The topic outlines some of the important ways in which materials behave and explores some of the important factors in materials management situations. The basic objective of materials management has already been indicated, that is, to support the effectiveness and efficiency of the operation. In the context of materials management this overarching objective takes on some more specific meanings. 7.3. Key questions for managers of materials. The topic will explore the key questions in inventory management situations, namely: • How often should stock levels be checked? • When should an order for more stock be placed? • What quantity should be ordered? 7.4. Techniques available to the manager. In relation to materials management, there are some specific approaches that can help to deal with the situations which arise. These techniques will be introduced at a basic level.
  • 8. Quality management
    8.1. Quality is seen as an order-winning or entry criterion in most product and service markets, but it is also an important contributor to cost. Quality is multi-faceted and complex, and a clear definition is essential for measurement and control. 8.2. Cost. There are costs associated with poor quality, of which the cost of rejected goods is perhaps the most obvious, but quality management and improvement also involve cost. The classical case for an appropriate cost balance is presented. 8.3. Measurement. Neither control nor improvement is possible without measurement. Various means of measuring quality in both manufacture and service will be discussed. 8.4. Control and improvement. Control implies improvement, since if quality declines then control demands that it be restored. Increasingly, as a result of the total quality movement, quality is being seen as a journey rather than a destination. The idea of an acceptable level of quality is no longer necessarily acceptable itself. Some of the methodologies and techniques of the total quality movement will be outlined. Case for lean retail is presented. 8.5. Standards. The increasing emphasis on quality in all areas has led to an increasing prominence for quality standards. Two of the most widespread quality standards are discussed.
  • 9. Lean-management
    9.1. The original and primary principle of the Lean management is: "Produce only what is needed, when it is needed, with the quantity needed." Anything in excess of what was needed to satisfy the customer was considered wasteful – be it raw material, work-in-process, and finished goods. work station (factory, process, or equipment) produces only what is needed by the next process which could either be the external customer or buyer itself or another work station known as an “internal customer.” 9.2. Waste reduction program is called SMED or Single-Minute-Exchange-Of-Die (other models: Heijunka, Kanban, etc.). The elimination of waste is the primary goal of any lean system There are two types of wastes: obvious wastes and hidden wastes. It is important to uncover and eliminate the latter since they are usually bigger. The steps to effective waste elimination. Muda, Mura, Muri. Classification of the Wastes: • Over-production waste • Processing waste Transport waste • Waiting time waste • InventoryWaste • Motion Waste 9.3. Benchmarking and lean culture, lean leadership and mindset
Assessment Elements

Assessment Elements

  • non-blocking Presentation
    All group of students should be divided into teams from 1-2 students. The presentation duraiton is 15 minutes and additional15 minutes for the answering questions and discussion. Presentation should be in PDF format 15-20 slides and the WORD file 10 pages dedicated to the teoretical invesigation and conclucion over the topic, both files should be sent via e mail at the same day of presentation. All students should be divided by equal proportion to the course syllabuses. The topics of presentation could not be repited, it means each presentation shoud be deicated to the individual topic.
  • non-blocking Test
    During the course would be provided 4 tests based on the material given in the lections and chapters of the book provided in LMS. The duration of each test is 30 minutes. Each test consists of 3 types questions: there are “multiple choice questions”, “yes/no questions” and “fill in the blanks questions”. Each test covers 2-3 chapters or topics. The correct answer to each question is worth 1 point. The maximum number of points is 30. The number of points scored by divided by 3 to get a grade on the 10 point scale. The final result is rounded to the closest whole number (for example: 3,1-3,4 are rounded to 3, while 3,5-3,9 are rounded to 4). If the student receive 19 points, they are divided by 3 and result is 6,3 is rounded to 6.
  • non-blocking Class work
    Students’ individual and group work at the seminars in the form of presentations, problems solving etc. In class participation refers to in-class discussion of a variety of individual and group assignments. Class participation is encouraged.
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.2 * Class work + 0.2 * Presentation + 0.6 * Test


Recommended Core Bibliography

  • Aswathappa, K., & Bhat, K. S. (2009). Production and Operations Management (Vol. Rev. ed). Mumbai [India]: Himalaya Publishing House. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=332332
  • Gupta, S., & Starr, M. K. (2014). Production and Operations Management Systems. Boca Raton: CRC Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1728738
  • Kumar, S. A., & Suresh, N. (2009). Operations Management. New Delhi: New Age International. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=281510

Recommended Additional Bibliography

  • Chiarini, A. (2015). Sustainable Operations Management : Advances in Strategy and Methodology. Cham: Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=937032