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MM5004

Operations Management

YOUNG PROFESSIONAL CLASS (53B)

August 2015

INSTITUT TEKNOLOGI BANDUNG

MBA Programme

G ra d ua te S ch oo l o f B u s in e s s

http://www.mba.itb.ac.id

MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI BANDUNG http://www.sbm.itb.ac.id/mba

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Contents

1. Vision and Mission of MBA-ITB ........................................................................................................... 2

2. Learning Goals of MBA-ITB ................................................................................................................. 2

3. Learning Goals of This Course ............................................................................................................. 2

4. Learning Outcomes of This Course...................................................................................................... 3

5. The Course Structure .......................................................................................................................... 4

6. The Course Plan .................................................................................................................................. 4

7. Lecturer Profile ................................................................................................................................. 11

8. Grading ............................................................................................................................................. 12

9. Students Guidance ............................................................................................................................ 12

10.References ........................................................................................................................................... 12

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Vision and Mission of MBA-ITB Vision:

“To be A World Class Program of Master and Business Administration that Creates Ethical

and Entrepreneurial Leaders”

Mission:

To educate and develop future leaders in business

To develop sustainable education program for building human resource capacity needed

for enhancing industry competitiveness in Indonesia

Learning Goals of MBA-ITB

In General, The MBA-ITB’s learning goal is to develop students to have the following

characteristics:

Learning Goals Description

Integrative Thinking (LG 1) Students will be able to demonstrate integrative thinking which

involve problem solving through critical and creative thinking.

Team work (LG 2) Students will be able to demonstrate an ability to understand

group dynamic and to work effectively in a team

Communication Skill (LG 3) Student will be able to communicate complex idea clearly,

persuasively, and be a responsive listener

Ethical Responsibility (LG 4) Students will be able to identify ethical issues in business

environment and the impact toward various stakeholders

Leadership (LG 5) Students will be able to perform effective leadership.

Global Awareness (LG 6) Students will be able to understand the nature of global issues

affecting business and to respond effectively.

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Learning Goals of This Course Operations management focuses on carefully managing the processes to produce and

distribute products and services. Even when people don’t name their activities as part of

operations management, as small businesses do so, but actually they carry out the activities

related much to the term “operations management”. All activities from managing

purchases, quality control, storage, inventory control, production, and distribution are

covered by operations management. Not only at operational level, it does talks about

strategic issues such as selecting location and capacity planning and tactical issues that

address how to efficiently schedule material and labor within the constraints made in

strategic level.

The main goal of operations management is delivering a firm’s goods and services in the

most effective manner. A great deal of focus is on efficiency and effectiveness of processes.

At the fundamental level, it deals with getting the day-to-day work done quickly, efficiently,

without errors, and at low cost. And this is a critical responsibility of every manager.

Therefore, for those who want to be a great manager, this course is provided to you.

This course is for Young Professional students. It aims at teaching and developing the

following competences:

1. Integrative thinking,able to demonstrate ability to identify the central

problems/issues, draw and assess recomendation using a perspective that integrates

both fuctional and relevant contextual information and deploy them effectively to

solve the problem from a strategic views point.

2. Communication Skill, able to communicate complex idea clearly, persuasively, and

be a responsive listener.

3. Team work,able to demontrate an ability to work effectively in a team, exhibiting

behaviour that reflects an understanding of the importance of individual roles and

tasks, and the ability to manage conflict and compromise so that team goals are

achieved.

4. Global awareness, understand the nature of global issues impacting business,

including competition, policiess, politic, culture and consumers and have the ability

to respond to them effectively.

Learning Outcomes of This Course

After completing this course, students are expected to be able to identify operations and

supply chain management problems, seek opportunities for improvement, excellence, and

development in a company. Student will be able to select and apply proper tools to solve

these problems.

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The learning outcomes of this course are:

1. Integrative thinking

a. Identify and analyze central problems with integrative thinking

b. Construct multiple perspectives that integrate both functional and relevant

contextual information

c. Create recommendation based on the constructed perspectivesand the

company’s strategic objectives

2. Team work

a. Understand how to collaborate with others

3. Communication skill

a. Present information in an organized and concise manner.

4. Global awareness

a. Identify global issues that may affect the industry

b. Develop business recommendations based on understanding about the

global aspetcs

The Course Structure The structure of competence building in this course is shown below.

Skills/Abilities:

Selecting and applying

frameworks, tools,

formulas for solving

problems related to

operations and/or

supply chain

Interpersonal skills

Knowledge:

Analyzing, designing and

operating processes that

deliver a firm’s goods and

services in a manner that

matches customer’s

expectation

Attitudes/Mindset:

Professional

Entrepreneurial

Ethical

Global

The Course Plan Please refer to the table in the next page.

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Date Outcome(s) Activity(ies) Preparation Evaluation Facilitator

Week 1 Integrative Thinking: Understanding course content and scope of operations management and also operations decisions Team work: Syndicate group discussion of Benihana case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Session 1 (8:00-9:30) : Lecture on Introduction to Operations & Supply Chain Management

Students read, text book Ch. 1

MHB

Break

Session 2 (9:45-11:15): Case Discussion of “Benihana”

Individual case reading

Individual class participation

MHB

Week 2 Integrative Thinking Understanding strategic fit, productivity measurement, product design processes and analysis of product development project. Communication Skill: Ability to present information in an organized and concise manner in class discussion

Session 1 (8:00-9:30) : Lecture on Strategy and Sustainability

Students read, text book Ch. 2

Class discussion, Group presentation

MHB

Break

Session 2 (9:45-11:15):

Lecture on Product and Service Design

Students read, text book Ch. 3

Class discussion, Group presentation

MHB

Week 3 Integrative Thinking Understanding strategic capacity management in operations and planning service capacity

Session 1 (8:00-9:30) Case Discussion of “Toyota Avanza: The Rollout”

Students read the case

Individual class participation

MHB

Break

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Team work: Syndicate group discussion of Avanza case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Session 2 (9:45-11:15):

Lecture on Strategic Capacity Management

Students read, text book Ch. 4

Class exercise MHB

Week 4 Integrative Thinking Understanding process analysis and analyze operations processes. Team work: Syndicate group discussion of “Universal Pulp and Paper” case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Session 1 (8:00-9:30):

Lecture on Process Analysis

Students readCh. 5

Class discussion, Group presentation

MHB

Break

Session 2 (9:45-11:15): Case Discussion of “Universal Pulp and Paper”

Students read the case

Individual class participation

MHB

Week 5 Factory Visit MHB

Break

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Factory Visit MHB

Week 6 Integrative Thinking Understanding project management, time and cost management. Ability to constructing work breakdown structure (WBS), develop anactivity network and create project scheduling.

Session 1 (8:00-9:30) : Lecture on Project Management

Students readCh. 10

Class discussion, Group presentation

MHB

Break

Session 2 (9:45-11:15): Lecture on Waiting Line Analysis

Students readCh. 7A

Class exercise MHB

Week 7 Mid Test Week 8 Integrative Thinking

Understanding the concepts on quality and six sigma methodology. Ability to applying quality tools and calculate process capability index.

Session 1 (8:00-9:30) : Lecture on Six Sigma Quality

Students readCh. 9

Class exercise MHB

Break

Session 2 (9:45-11:15):

Lecture on Process Capability and SPC

Students readCh. 9A

Class discussion, Individual class participation

MHB

Week 9 Integrative Thinking Understanding the components of demand, time series, causal analysis and operations planning. Ability to selecting and applying quantitative forecasting techniques Team work: Syndicate group discussion of “Polaroid” case Communication Skill: Ability to present information in an organized

Session 1 (8:00-9:30) : Case Discussion of “Polaroid”

Students read the case

Individual class participation

MHB

Break

Session 2 (9:45-11:15):

Lecture on Demand Management and Forecasting

Students readCh. 15

Class exercise Home work

MHB

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and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Week 10 Integrative Thinking Understanding strategies for operations planning and analyze operations plans.

Session 1 (8:00-9:30) : Lecture on Sales and Operations Planning

Students readCh. 16

Guest Lecture

Break

Session 2 (9:45-11:15):

Lecture on Sales and Operations Planning

Students readCh. 16

Guest Lecture

Week 11 Integrative Thinking

Understanding inventory management, selecting and applying inventory control formulas. Team work: Syndicate group discussion of “Bradford Manufacturing – Planning Plant Production” case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Session 1 (8:00-9:30) : Group Exercise of “Bradford Manufacturing – Planning Plant Production”

Students readCh. 16

Group Assignment

MHB

Break

Session 2 (9:45-11:15): Lecture on Inventory Control

Students readCh. 17

Class discussion, Individual class participation

MHB

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Week 12 Integrative Thinking Understanding materials requirement planning (MRP) and ability to apply MRP. Team work: Syndicate group discussion of “Recipes for success-Innovating Production and Inventory Management of pepper Oleoresin at Syinthite” case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry and develop the recomendations related to the case.

Session 1 (8:00-9:30) : Case Discussion of “Recipes for success-Innovating Production and Inventory Management of pepper Oleoresin at Syinthite”

Students read the case

Individual class participation

MHB

Break

Session 2 (9:45-11:15):

Lecture on Material Requirements Planning

Students read Ch. 18

Class discussion, Individual class participation

MHB

Week 13 Integrative Thinking Understanding linear Programming and ability to applied Excel Solver. Team work: Syndicate group discussion of “Seaside Foods A – MRP” case Communication Skill: Ability to present information in an organized and concise manner in class discussion. Global Awareness: Identify global issues in operations management that may affect the industry

Session 1 (8:00-9:30) : Group Exercise of “Seaside Foods A – MRP”

Students read Ch. 18

Quiz MHB

Break

Session 2 (9:45-11:15): Lecture on Linear Programming

Students read Appendix A

Class exercise MHB

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and develop the recomendations related to the case.

Week 14

Final Test

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Lecturers’ Profile

Akbar Adhiutama, Ph.D. (MHB)

E-mail: akbar@sbm-itb.ac.id

Akbar Adhiutamais the full time lecturer at School of Business and Management, Institut

Teknologi Bandung, where he has been since 2006. He received a Ph.D in Management of

Technology from Shibaura Institute of Technology in Japan. He holds both master degree in

Electrical Engineering and an MBA from Institut Teknologi Bandung. He alsohas an Architecture

Engineering degree from Trisakti University. He teaches Operations Management and other

courses at both the undergraduate level and graduate level atSchool of Business and

Management, ITB. He also serve as editor in chief of The Asian Journal of Technology

Management. His research interest includes theoperations management and supply chain

management and management of technology areas.

Dr. Nur Budi Mulyono (MHB)

Nur Budi Mulyono is the full time lecturer at the School of Business and Management, Institut

Teknologi Bandung (SBM ITB). He earns bachelor and master degree in Industrial Engineering at

Institut Teknologi Bandung. He also earned his doctoral degreeat Toyohashi University of

Technology, Japan. During his study, he is actively participating in local government project of

Japan to build a robust system of disaster prevention. He is also participating in building

technical solution for local small and medium manufacturing industry in Toyohashi city for

improving their productivity and resiliency against disturbance. His research interests are

Operation Management, Relief Supply Chain, Artificial Intelligence, and Resilient System in

manufacturing and energy sector.

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Grading Grading for this course is based on whether or not a student’s performance meets the module

standards for completion and proficiency in the subject materials. The final grade will be

weighted as follows:

Group Assignment 15% Team grade by facilitator

Quiz 15% Individual grade by facilitator

Participation 20% Individual grade by facilitator

Midterm exam 25% Individual grade by facilitator

Final Project 25% Individual grade by facilitator

Class discussion requires active participation individually. In all cases, syndicate discussion

should be done before the class.

Students Guidance

In order to succeed, students are advised to do the followings:

1. Allocate sufficient time for self-preparation

2. Discuss concepts and cases with their syndicate

3. Elaborate practical cases apart from cases given

4. Have a proper notes of all lecture

5. Contribute actively in the class

References

Main text book:

Jacobs, F.R. and Chase, R.B. (2011). Operations and Supply Chain Management, 13thed. Global

Edition, McGraw-Hill.