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COURSE OUTLINE

Course Name
Course Code
Credit Hours
Course Pre-req.
Name

Operation and Production Management


MGT-330/QTM-364/OPM-511
03
Principal of Management, Statistical Inference,
Marketing Management, Cost Accounting,
Financial Management, Managerial
Accounting, H R Management, Operations
Research
MGT-110,QTM-110,QTM-121,MKT-231,ACC-232,
FIN-241, ACC-353, HRM-350, QTM-353,
x Core Course
Elective
x BBA-6
MBA-3
Six

Prepared On

23Jul,2014

Course Pre-req.
Revised On
04Aug,2015
Code
Course Type
Program
Semester
Course Description
This course introduces major themes and strategies of Operations and Production Management with
in both manufacturing and service organizations. The primary objective is to familiarize the students
with the basic concepts, techniques, methods and applications of operations management. Topics
include operations strategy, process choice, capacity management, quality management, inventory
management, supply chain management and new product and process development. Latest
manufacturing philosophies, such as world class manufacturing (WCM), lean manufacturing, mass
customization and agile manufacturing are also discussed.
Course Learning Outcomes
CLO #
Description
Understand the theory and application of OM as a strategic competitive tool and
1
understand the tools used for decision making.
Understand the operations management functions and analyze how it adds value to the
2
goods and services provided by an organization.
Understand the analytical tools associated with the Operations Management.
3
Understand the concept of quality in Operations management and learn to apply
4
different dimensions of quality in both goods and services and relate them to
overall strategy.
Understand how technology impacts operations in
5
business/industry/manufacturing/service.
Will Learn the application of SPC tools and Control charts in business
6
operations.
7
Will be able to analyze types of operations / processes in service &
manufacturing
8
Will learn how Capacity planning for a business is done.
9
Will learn the impact of Locating a business around the globe.
Will understand; analyze types of layouts for application in manufacturing and services.
10
1

11

Understand various concepts of Inventory Management and learn to apply


for decision making in varying scenarios.
12
Understand the concept and application of JIT and Lean Production
Systems.
13
Introduce the concept of production planning through MRP and ERP
systems
14
Learn the quantitative tools/techniques that help in operations
management.
Teaching & Learning Methodology
Lectures,
Concept generation,
Case discussions,
Participative hands-on exercises,
Videos ,
Writing research report on a OPM concept(As per the instructions given )
Quiz & Assignments and review of same in class
Textbook(s)
1. Krajewski Lee J. & Ritzman LarryP.(2010), Operations Management 9th Ed, Pearson Inc.
2. Heizer Joe & Barry Render (2011) Operations Management 10th Ed, Pearson Inc.
Reference Book(s)
1. Nigel Slack, Stuart & Johnston (2007 ),Operations Management 5th Ed, Prentice Hall Inc.
2. S. Anil Kumar & N. Suresh(2009),Operations Management, Newage International Publisher
Grading Policy
Assessment Instruments
Quizzes
Assignments & Research Report
Mid Term Exam
Final Exam

Percentage
15%
10+10%
25%
40%

Class Schedule: 15 Sessions of 3.0 hours each per week (Total 45 Hours)

Week-wise Course Outline


Session #

1,2, 3
(3 Hrs)

4, 5, 6
(3 Hrs)

7, 8, 9
(3 Hrs)

10, 11, 12
(3 Hrs)
13, 14, 15
(3 Hrs)

16,17, 18
(3 Hrs)
19,20, 21
(3 Hrs)

22-24

Contents

Introduction to the course-Operations as a


Competitive Weapon What is OM?, Difference
& similarities b/w manufacturing and services,
Trends in OM, OM and the organization,
Productivity, Multifactor Productivity, Global
competition, Technological change, ethics
Operations Strategy Corporate Strategy,
Strategic alliances are risky, Market Analysis,
Competitive priorities, Linking Corporate Strategy
to Operations, Time based competition, Shifts in
Competitive Priorities, Positioning Strategy.
Decision Making & quantitative tools for decision
making

Activities
(case studies, role plays, movie
clips, exercises, presentations,
homework)

Numerical problems in
MFP.

Quiz#1,Assign#1,
Group
discussion
on
Decision
criteria for national level
industry/ social projects e.g.
PSM, Gwadar port, KANUPP,
Thar Coal, Baluchistan coastal
development etc,
(Selection of Research topics
from the list given, after
approval by FM, along with
groups names)
Process Management What is process Review Quiz#1,
Management, Ethics and environment, Major
Process decisions, Choosing right amount of Video-model airport opns. &
vertical integration, Managing Technological Video- seaport operations.
change, Designing Processes.
Managing Technology. CIM/CAD/CAM, CNC Quiz#2,Assign#2,
machines, Flexible Manufacturing Systems,
Video-FMCG Manufacturing
T Q MQuality a management philosophy, Review Quiz#2,
Employee
Involvement,
Continuous Case Study,
Improvement (Kaizen), Costs of poor quality, Developing an award
improving Qlty. through TQM- QFD, Bench criteria
Marking, Data Analysis tools,
Statistical Process Control Sources of variation, Quiz#3,Assign#3,
The inspection process, SPC Methods, Process Calculating Process capability
Capability, Motorolas 6- sigma quality program
ratio/index
Capacity
Planning
Capacity
planning, Review Quiz#3,
Economies of scale at work, systematic approach Pictorial Crane operation,
to capacity decisions, Tools for capacity Discussion on comments by
planning.--Waiting Line Models-Why waiting class
lines form, uses of waiting line theory, Structure (Submit Final report draft
of waiting line problem, Analyzing Operations.
print for feedback)
MID TERM EXAM
3

25,26, 27
(3 Hrs)
28, 29, 30
(3 Hrs)

31, 32, 33
(3 Hrs)
34,35, 36
(3 Hrs)
37, 38, 39
(3 Hrs)

40, 41, 42
(3 Hrs)
43, 44, 45
(3 Hrs)
46-48

Location Globalization and geographic


dispersions of operations, factors affecting
location decisions, Locating a single facility,
Locating within a network of facilities
Layout Layout planning, Retailers match
layouts to strategies, layout types, Layout
flexibility at work, creating hybrid layouts,
Designing process layouts, designing product
layouts.
Supply Chain Management- Vertical Integration,
Selection of suppliers

Discuss MID-TERM Exam


solution.
Video-Panama Canal
Operations
Video- Layout of a Steel Mill/
Cement
manufacturing
plant
Return of reports after
feedback.
Quiz#4,Assign#4,
Video-Cargo handling at an
Airport,
Video-DHL operations
Inventory Management importance, function, Review Quiz#4,
inventory concepts, --- Economic Order Quality, Numerical
problems
on
inventory control systems, ABC analysis
EOQ/ABC analysis
Resource Planning -MRP, Aggregate Planning ,
Quiz#5,Assign#5,
(Submit
Final
Research
Report after corrections both hard & soft copy of
report & presentation )
JIT systems- KANBAN system, Lean production, Review Quiz#5,
Lean manufacturing
Video- Lean
manufacturing
Revision
Report
Presentations.
Mandatory for all class
students to attend all
presentations
Final Exams

Topics for Research-Operations Management


------ (01 topic per class)----1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

O.M at an Engineering goods export firm.


O.M in a Power Generating & Supplying company.
O.M at a sea port with reference to Cargo Handling.
O.M at an Engineering firm assembling/manufacturing domestic appliances.
O.M. at a paint manufacturing company.
O.M. at a Garment Super Store.
O.M at a sea port with reference to Custom Clearance.
O.M at sea port with reference to Cargo Handling Operations (Bulk)
O.M. at a Garment Manufacturing Firm producing 1000 jeans /day.
O.M at an airport with reference to Flight Operations.
O.M at an airport with reference to Cargo Handling Operations.
O.M at a socks manufacturing company exporting as per international quality
standard.

------ (01 topic per class)----13.


14.
15.
16.
17.
18.
19.
20.
21.

Capacity planning at a Bank Branch serving 10,000 customers per day. (Located in
Suburbs of Karachi)
Capacity planning of an Emergency Trauma Center at center of a city having
population of 0.5million people.
Capacity Planning of a Public Hospital serving a population of 1.5 2 million
people.
Capacity planning for extension of Pakistan Steel Mills. (Karachi)
Capacity planning of a Clothing Super Store required to serve 1000 customers / day.
Capacity planning for setting up a fast food restaurant in a city of 5m population/
serving 1000 customers /day.
Capacity planning for setting up a fast food restaurant in northern suburbs of
Karachi having 01million population.
Capacity planning at a Furniture super store attending 1000 customers/day.
Capacity planning at a General super store (200 items in 10 different categories)
serving 1000 customers/day.

------ (01 topic per class)----22.


23.
24.
25.
26.
27.
28.

Locating a Railway Station in a small town off the main RCD Highway route in
Baluchistan, serving 0.2 million population.
Locating a Steel Mill along the coast line.
Locating Police HQs in a city on coastline having population of 0.5 million
scattered over in 05 towns.
Locating a hospital for a population of 02 million people scattered over 10 towns of
Karachi.
Locating a bank branch in Karachi suburban town of 02million population.
Locating an airport for a city of 02 million population along Baluchistan coastline.
Location planning of a fast food restaurant to serve population of 0.5 million along
Baluchistan coastline.

------ (01 topic per class)----29.

Layout planning of an Export Processing Zone along the coastline designed to


support 400 industrial units of various nature.
5

30.
31.
32.
33.
34.
35.

Layout planning of an Emergency Trauma Center at heart of a city having


population of 1.5million people.
Layout planning for constructing a Sports Arena for conducting 5 National Games
at northern suburbs of Karachi.
Layout planning of a Pizza restaurant along the Karachi coastline to serve 5,000
customers daily with an expected growth rate of 30% each year.
Layout planning at a Clothing super store serving 1000 customers/day. (all age
groups and all seasons clothing ).
Layout planning of a medical super store (500 items of 25 categories) serving 500
customers per day.
Layout planning of a new town along side the super highway having low cost
housing including all amenities and facilities required for population of 01 million.

------ (01 topic per class)----36.


37.
38.
39.
40.
41.
42.
43.

Inventory Management at a Manpower supply firm.


Inventory management at a Biscuit Mfg. company (production & distribution ).
Inventory Management at a Cement Mfg. firm (50,000 tons/yr)
Inventory Management at an automobile manufacturing firm producing 20,000
units a year(4 different models).
Inventory Management at Paint mfg. firm producing 50,000 Ltrs/day (4 different
quality).
Inventory Management at a Textile Mfg. producing 50,000 meter of cloth of 5
different qualities.
Inventory Management at a Super Book Store serving all sectors of education.
(including 10 main disciplines)
Inventory Management at a University Campus book store.

------ (01 topic per class)----44.


45.
46.
47.
48.
49.

JIT inventory management in a frozen Poultry goods supplying firm. ( in 03 most


populated towns of Karachi )
JIT inventory management in a computer hardware supply house
JIT inventory management in a Textile manufacturing producing bed sheet / terry
towels around 100,000 meters /year .
JIT inventory management in a fast chain restaurant serving 1,000 burgers a day in
a coastal recreational area.
JIT inventory management at a Bread manufacturing company producing 10,000
breads per day and supply to customers in a city of 5 million population.
JIT inventory management in an automotive spare parts supply centre (of 04 major
automobile manufacturers), serving 500 customers per day in downtown area.

------ (01 topic per class)----50.


51.
52.
53.

Resource planning at frozen foods supplying firm serving a town of 5 million


population in Karachi Metropolitan.
Production Planning and control in an automobile manufacturing concern.
Production Planning and control in an Ice cream manufacturing concern producing
03 different brands.
Production Planning and control in Sweet manufacturing concern 20 different
product lines.

54.
55.

Production Planning and control in a modular furniture manufacturing concern


producing home improvement products.
Production Planning and control in a dress shirt manufacturing concern producing
for export.

------ (01 topic per class)----56.


57.
58.
59.
60.

Develop a Master Production Schedule of a major airline operating across Eurasia.


How is it analogous to MPS for a manufacturer?
Develop a Master Production Schedule of a Courier service operating across Afro
Asia. How is it analogous to MPS for a manufacturer?
Develop a Master Production Schedule of a major inland passenger train service
operating across country . How is it analogous to MPS for an airline?
Develop a Master Production Schedule of a major intercity goods transport service.
Compare the same with MPS for a manufacturer.
Develop a Master Production Schedule of a major city water supply system through
a river/reservoir. How is it analogous to the MPS for a Courier service.

RESEARCH PROJECT GUIDELINES


OPERATIONS MANAGEMENT BBA/MBA PROGRAM
1.
Scan through the book on Operations Management along with your group after first
session and read the chapter concerning the area you desire to research. Discuss the same
and get it approved by me before the second session. After this feel free to discuss with me
to clarify any doubts before and after the selection of the topic. Divide and record in writing
the division of work with in your group.
2.
Obtain the cooperation of a manager at organizations (manufacturing or nonmanufacturing) of your choice of business / industry sector who is responsible for a
significant operations that provides a service/product. You may take introductory letter from
me on behalf of University, if you think it may help. After introducing yourself and explaining
the research assignment, request a visit to tour their facility.
3.
Make a list of the questions that you want to ask before you visit about the operation,
such as inputs, outputs, internal and external customers, process structure, customization,
customer contact, volume, technology, quality, capacity, layout and the nature of operations
the firm is involved in.. This list will help make sure that you don't omit any of the relevant
topics covered in the course. Look over carefully the chapters in the book that cover these
topics, so that you can do many parts of the report early on, rather than waiting until the final
due date approaches. Ask questions about their operations relevant to the area you have
selected. This must be completed by 4th session to be on target.
4.
Select the operation (and its starting and stopping points) as broadly as possible in
terms of the activities performed and employees involved. The operation should not be just a
one or two persons operation. The operation should not be so broad as to loose shared
characteristics in terms of activities performed, type of customer involvement,
standardization of the work, automation, and the like. It is desirable, although not necessary,
for the operation to cut across traditional functional lines.
7

5.
Arrange the visit(s) and interviews, so that you will be in a position to describe and
analyze the operations/processes. Then again visit the organization. Spend time touring the
facility (which may be briefer for some small firms in the service sector) and interviewing key
individuals. Don't be shy about asking questions. Of course, be considerate about what you
ask. The entire process may take a couple of hours or more.
6.
Meet with your group as soon as you can after your group visit to discuss what you
learned. As a starting point, describe the operation/process that you wish to describe using a
flowchart. A process chart might also be helpful. Make a second/third or more visits to get
more details on the operations/ process, and information for preparing your charts and
reports. You may also need additional trips to get a more thorough understanding of the
operations.
7.
Prepare the report following the principles you have learned in the course of
Business Communication and Business Research Methodology. Make sure you record the
date and time against the website you have accessed and referred for the secondary data in
the bibliography.
8.
The report should be preceded by a one-page executive summary and a title page
listing the group members. The body of the main report should not exceed 12 numbered
pages. The report should be followed by an appendix that includes any supporting exhibits
(no page limitations on the appendix). This report, which you might want to share with the
firm, should be a polished product appropriate for presentation to upper management.
9.
Report should be completed in all respect prior to mid term exam, except
binding/color and/or presentation slides, simply stapled and turned in as per schedule.
10. I will INSHALLAH return the same after mid-term exams along with comments and
deficiencies. Now you will have exactly 2 weeks to resubmit the final report.
11. One hard copy of the report and the soft copy of both report & presentation( in my
office computer ) must be completed and turned in prior to the day of 14th session of the
course.( reports through use of unfair means will be penalized severely)
12.
Each group will make a 15-minute presentation of its report to the class, including 5
minutes for questions. The presentations will be made on the day of 15th session. I will keep
the soft copy of the report and deposit the hard to the library for record. Visual aids and
other creative presentation options can enhance your presentation.