Queens MBA

MBAST 841: OPERATIONS MANAGEMENT

Spring 2016

Paul Roman, CD, PhD, P.Eng

Associate Professor
Office: Goodes Hall 330 A
Phone: 613-533-3087
E-mail: Proman@business.queensu.ca

Objectives:
Our objectives in the Operations Management course are: 1) to gain a general management perspective
on the role of operations in an organization, 2) to develop skills in problem solving and decision making in
situations marked by complexity and uncertainty, and 3) to appreciate the managerial issues surrounding existing
and new technologies in operations. We will work towards these goals by undertaking practical appraisals of
actual managerial situations described in detailed business cases. You will be asked to take the roles of practicing
managers and apply a systems approach to balancing the conflicting demands of people, technology and
economics. While technical and institutional information are a part of this course, your intent should be to develop
a degree of competence appropriate for the manager rather than the engineer.
Conduct of Course:
The course consists of 12 sessions; most of which will involve case discussions requiring advance
preparation (approximately 2 hours individual and 1 hour team). Cases will be augmented by readings from the
text/articles, brief lectures, videos, and field trips, as well as simulation exercises.
Assignment questions, references and special instructions are attached to this outline. The following
guidelines may help you establish priorities for preparation:
PREPARE
READ
REFERENCE

- Essential to do individually
- Necessary
- Useful

It may be efficient to delegate reference material within a team but material designated PREPARE
should be handled individually. Each class session should be viewed as a formally scheduled business meeting come, and come prepared.
Case Method:
The case method is based on learning by experiencing; hence considerable emphasis is placed on
preparation and class participation. Typically, you should allow for 2 or more hours of individual case preparation
time text material will require additional time. Following individual preparation, you should discuss the case
with your team for approximately one hour. You should come to class ready to present a reasoned analysis leading
to a specific set of recommendations and plan of action. All of the above should be done from the point of view
of a manager involved in the case situation.
Before each case class (starting with session 3), each team must submit, via the portal using the
dropbox on the course website, a one-page team brief, outlining three major issues they have identified in the
case and three recommendations for management. These submissions are due by 1pm on the day before the
case is to be discussed (please note this is Sunday for Monday classes). The specific format for email briefs
will be presented during session 1. Typically each class will begin with a team presenting their analysis and
recommendations. Following this opening presentation, questions will be raised by the instructor and/or class
members seeking clarification of reasoning. From there the class discussion will be focused on gaining a better
understanding of the problems inherent in the situation, appropriate analyses, possible alternative solutions,
recommendations and a plan of action. In some instances the instructor will give a summary at the end of the class
or a short lecture covering relevant technical aspects involved in the case. However, the key responsibility lies
with you to synthesize the discussion and improve your problem solving skill through active participation.
Field Trip/Reengineering Project
Each team will be assigned a field trip to an organization that has a distinct and observable operating
process. A presentation of the teams findings is due during session 12 and written report of five to ten pages plus
relevant exhibits is to be submitted by 8:00 AM 6 June 2016. The report is to be written for and submitted to
the client. A number of local businesses have agreed to participate as clients for this assignment. As is the case
with all consulting engagements, you must negotiate the scope of work and the time commitments necessary on
your teams behalf and from the client. They have all been briefed that the minimum requirement is a
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plant/operation tour to enable a Rapid Plant Assessment of the operation. Some clients, however, may have a
specific operations related problem that they would like you to consider that will probably be process based. Prior
to contacting your client, be sure to review: Chase, Jacobs & Aquilano, Chapter 9; Parts I and II of "A General
Approach to a OM Case" (page 4); Goodson Read a Plant Fast and Harrison & Lock Operations Management
and Reengineering. Locations will be assigned on the first day of class. You will also be required to give a
presentation emphasizing lessons learned to the rest of the class during our last session on 5 June.
The field trip reports will be ranked and maximum grades will be assigned approximately as follows: 3
in the A range, 6 in the B range and 2 in the C range.
Individual Memos
During the course each individual is required to submit two memos (no more than 1200 words plus
relevant exhibits) addressing cases to be discussed in class. Memos are due by 8 am on the day the case is to be
discussed in class. Electronic copies are to be submitted electronically via the portal using the dropbox on the
course website. Memos submitted after the deadline will not be graded. Hard copies are not required. A total
of seven cases have been designated as memo cases; you must choose one case from the first four designated cases
and one case from the last four cases. Please note that the case for session 7, Steinway & Sons, can be used as
either your first or second memo. Memos are to be individual efforts although prior to writing the memos you
should discuss the case in your team. Case memo format is up to the students. The General Approach to an
Operations Case described below is a good guide on how to tackle the case. Address the memo to one of the
principal decision makers identified in the case. There is no need to summarize the facts, however be sure to
identify the problem(s) describe factors and courses of action that you analyzed, the results of the analysis
(the details of which should be included in exhibits) and recommendations. As part of the recommendations
you should include outline implementation steps with timelines, and when possible assign these steps to
appropriate individuals identified in the case.
Evaluation
Your final grade will be determined as follows:
Memos (2) Individual:

40%

Field trip report (1) Team:

25%

Team briefs (7):

25%

Participation:

10%

Participation
This course will be conducted using the Thayer method of instruction. This approach is designed to
enhance learning through the maximization of in-class activities based upon pre-class preparation by the student.
As a result, preparation, participation and attendance are considered crucial. To encourage active participation,
each student will be assigned a grade that will count 10% towards the final grade for the course. Students
participation marks will be reduced significantly if students miss class, regardless of the reason. Specifically,
there are there is no penalty for missing one session. However, missing a second session (REGARDLESS OF
THE REASON) will result in a reduction of the participation grade such that the maximum score
achievable will be 9/10. If a third session is missed (30% of the in-class sessions), the participation grade
maximum will be 7/10. Students missing 4 in-class sessions will be eligible for a maximum of 5/10. Students
missing 5 or more classes will be awarded a score of 0 for participation.
Materials
Pre Reading: The Goal: A Process of Ongoing Improvement, Goldratt & Cox, Third Revised Edition,
North River Press, 1992.
Texts: Operations Management for Competitive Advantage, Chase, Jacobs & Aquilano, 14th
Edition, Irwin/McGraw-Hill, 2014.
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Case Package.

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A General Approach to an Operations Management Case

I.

II.

Describe the situation and identify problems. A way to organize the data is as follows:
Product [or Service]
What is it? (Competitive features) How many?
What is the product mix? How profitable is it?
What is the value proposition for the customer?
Process
How is the product made? Type of process flow.
Level of automation? Capacity and balance?
How are raw materials and work in process handled?
Plant [Service Facility]
Location factors? Raw materials vs. markets.
What is the plant layout? Plans for change?
Operating-control systems
What is the current management structure?
What type of information system exists?
What management methods exist for?
inventory policy and control
production planning and control
scheduling
performance measurement
quality control
wage payment
cost control?
What other parts of the organization are involved? (Purchasing, sales, product service)
Work Force
What are the size, skill level, and attitudes of the direct and indirect work force?
Hiring, firing, overtime and retraining constraints?
Training programs?
Are unions involved? What are their activities?
Identify major objectives
How is the plant manager evaluated?
Customer service policy. (Lead-times)
Market strategy (Expansion or stabilized)
Corporate strategy on vertical integration?
Work force management
Quality.

III.

Identify alternative courses of action.

Imaginative, Reasonable scenarios, Multiple options

IV.

Evaluate alternatives and make decisions.

Make criteria and objectives explicit
Identify quantitative vs. qualitative criteria
Make trade-offs
Make specific practical decisions

V.

Propose implementation procedures.

What is to be done? By whom? When? Timetable
How should specific action be performed?
How much will it cost?

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Class Readings, Questions for Discussion & Analysis Tips

Session 1: 2 May 16
Session Theme:
Prepare:
Read:
Reference:

Introduction to Operations Management / Hank Kolb Case

N/A
Text: Chapters 1, 2 & 20
Course Outline / Case Analysis: Whats in it for me? / "How to Avoid Getting
Lost in the Numbers"

Session 2: 4 May 16
Session Theme:
Prepare:
Read:
Reference:

Supply Chain
Production / Distribution Simulation (briefing will be provided)
N/A
Partnership Strategies for Market Success

Session 3: 6 May 16
Session Theme:
Prepare:
Read:
Reference:

Operations Consulting
Deloitte Touche Consulting Group (Can be selected for first individual memo)
Read a Plant Fast by Goodson
Text: Chapters 6A, 13, 17 & 20

Questions for Discussion

1. Why does SKS need Deloitte's services? What alternatives were available to it? Would you
have approached the improvement problem in the same way as an internal operations manager?
2. What specific steps would you take to solve SKS' short-term and long-term problems?
3. What is your assessment of Maria Chen's performance?
4. Imagine that you are Chen. A foreman comes up to you on the shop floor and asks: "How many
times have you done this before"? What will you say?
5. What should Chen do?
Analysis Tip: Address the email brief/Memo to David Hendry, the Deloitte partner. This will
enable you to address issues related to both SKS and the engagement. Look for low hanging
fruit for a quick cash infusion to at least get to the end of the initial engagement. If you are
creative, and make a few assumptions, there is sufficient information to complete a Rapid
Plant Assessment (see Read a Plant Fast) of SKS.

Session 4: 9 May 16
Session Theme:
Prepare:
Read:

Reference:

Service Processes and the value of focus

Shouldice Hospital (Can be selected for first individual memo)
A Note on Service Mapping
The Goal
What is Strategy? by Porter
Text: Chapter 4, 5, 7 & 8

Questions for Discussion

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1.
2.
3.
4.

How successful is Shouldice Hospital?

How do you account for its performance?
As Dr. Shouldice, what actions, if any, would you take to expand the hospital's capacity?
What changes would you recommend and how would you implement them?
Analysis Tip There is a bottleneck at Shouldice hospital. Creating a service map of the
operation will allow you to identify each of the resources required to deliver the service.
Checking the capacity of each of these resources will help you identify the bottleneck.

Session 5: 11 May 16
Session Theme:
Prepare:
Read:

Reference:

Process Design
TI - Time Products Division (Can be selected for first Individual Memo)
OM & Reengineering by Harrison and Loch
Throughput Time vs. Cycle Time
The Lean Service Machine
We didnt think we could get this good.
Seven Myths to Beat Before they Beat You
Text: Chapters 4A, 5, 5A, 6, 7, 7A & 13

Questions for Discussion

1. How efficient is the watch assembly line at Lubbock at the present time?
2. How effective is it in meeting the TPD goals?
3. What opportunities exist for improving operations? How attractive are those? How difficult
will they be to realize?
4. What recommendations would you make to Peter Bradley?
Analysis Tip: Cycle Time is provided in the case as 21 seconds. It was used as a design
parameter for the assembly line. Working backward from this figure you can determine
daily, weekly, monthly and annual output from the two assembly lines in Lubbock.
Having this understanding will help you formulate appropriate strategies for increasing
production capacity if that turns out to be required.

Session 6: 16 May 16 - There is no class for session 6, this time is allocated to your field trip
Session 7: 18 May 16
Session Theme:
Prepare:
Read:
Reference:

Quality Strategy
Steinway & Sons (This is the last option for the first Individual Memo. It can also be
the second if you have already submitted the first.)
Six Sigma: What is It and How to Use It by Plotkin
Text: Chapters 2, 4, 9 & 9A

Questions for Discussion

1. What accounts for Steinways reputation as a manufacturer of high-quality pianos?
2. Should Steinway introduce the model K vertical piano? Why or why not?
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3. What other advice would you give Peter Perez as a strategic business unit (SBU) manager
concerning 1) his responsibilities downstairs to Steinway; 2) his responsibilities upstairs to
CBS?
Analysis Tip: If ever there was a case that would benefit from Porters five forces model, this
is it.

Session 8: 20 May 16
Session Theme:
Plant Evaluation
Prepare:
Wriston Manufacturing (Can be selected for second Individual Memo)
Read:
"Thriving on Competition" by Gordon & Wiseman
The Emerging Theory of Manufacturing by Drucker
Reference:
Text: Chapters 2, 4, 6 & 7A
Questions for Discussion:
1. What role does the Heavy Equipment Division (HED) play in the corporate strategy of
Wriston?
2. Where would you place each of the plants on a Product/Process Matrix for on-highway axles?
For off-highway axles?
3. What are the main problems with the Detroit plant? Evaluate the information from the Detroit
plant study group.
4. Evaluate each of the alternatives for the Detroit plant and recommend an option. Which option
do you believe Sullivan will take?
5. How should Sullivan respond to the UAW letter?
Analysis Tip: Consider and even plot the various plants on the Product-Process Matrix
(see exhibit 6.2 pp. 163 of text) as a means to understand the capacity, mission and
flexibility of each plant. Also a cause and effect (fishbone) analysis will help identify root
causes to the challenges at the Detroit Plant.

Session 9: 24 May 16
Session Theme:
Prepare:
Read:

Reference:

Supply Chain
Sport Obermeyer (Can be selected for second Individual Memo) briefs must
include a solution to Question 1 below.
The Supply-Chain Management Effect by Kopczak & Johnson
Strategic Sourcing: to Make or Not to Make by Venkatesan
Partnership Strategies for Market Success by Cross & Gordon
Text: Chapters 11, 12, 13, 15, 16 & 19A

Questions for Discussion

1. Using the sample data given in Exhibit 10, make a recommendation for how many units of each
style Wally Obermeyer should order during the initial phase of production. Assume that all ten
styles in the sample problem are made in Hong Kong, and that Obermeyer's initial production
commitment must be at exactly 10,000 units. (Ignore price differences among styles in your
initial analysis.)
2. What operational changes would you recommend to Wally to improve performance?
3. How should Obermeyer management think (both short-term and long-term) about sourcing in
Hong Kong versus China?
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Team Brief Requirement:

For this case, each team is required to provide a solution
to the sample problem presented at the end of the case. Specifically, you are to include an
exhibit with your team brief that describes how many of each parka you would
recommend that Wally order in the initial order. If you order a parka type, you must
order at least 600. The total order must be exactly 10,000 parkas equivalent to one-half of
the total order for the sample problem. Be prepared to defend your solution in class.

Session 10: 30 May 16

Session Theme:
Prepare:
Read:

The Balanced Scorecard

Strategy/Execution Simulation (briefing will be provided)
Balanced Scorecard Simulation (HBR Product No 114-701)
Linking the Balanced Scorecard to Strategy by Kaplan and Norton. CMR
Volume 39, Number 1, Fall 1996
The True Measures of Success (Mauboussin, HBR 2012).

Session 11: 2 June 16

Session Theme:
Prepare:
Read:
Reference:

Globalization and Human Resource Strategy

Lincoln Electric - Rev 25 August 2008 (Last opportunity for second Individual Memo)
What Really Makes Factories Flexible by Upton
Clusters and the New Economics of Competition by Porter
Text: Chapter 2, 5, 11, 12 & 13

Questions for Discussion

1. Put yourself in CEO John Stropkis shoes. Should Lincoln Electric expand by investing in a large production
facility there?
2. If you were to expand into India, would you enter through acquisition, a greenfield site, or some type of Joint
Venture? Which factors would inform your decision among these entry mode choices?
3. In which countries is Lincoln likely to be most successful or least successful? Why? How would this guide
your own choice to where to place Lincoln Electrics production facilities abroad?
4. When Lincoln Electric goes to India and other countries, what factors should determine how much it adapts
its core incentive for pay-for-performance management practices to local labour norms? Should Lincoln
Electric adopt the old adage when in Rome do as the Romans do, or should it seek to always replicate the
recipe behind its success in the home plant in Cleveland?

Session 12: 6 June 15

Session Theme:
Prepare:

Operations Consulting & Course Summary

Field Trip Presentation
Field Trip Report due 6 June at 8:00 AM

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