SYLLABUS & SAP

MM5004 - Operations Management

Business Leadership MBA

BLEMBA-28
Semester I 2020/2021

MASTER OF BUSINESS ADMINISTRATION

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

Page

Facilitator Profile 3

Course Description 3

Expected Learning Outcomes 4

Course Outline 4

Learning Guidance 6

Learning Method 6
Presentations 7
Group Project 7
Class Participation 8
MID Term and Final Examination 9

Grading Policy 9

Course Schedule 9

Reading Materials 20

List of cases 20

Operation Management – MM5004 2

FACILITATOR PROFILES

Ir. Adirizal Nizar, MBA (AN)

E-mail: adirizal.nizar@sbm-itb.ac.id; adirizal.nizar@yahoo.co.id
Phone: 0816772 841
Adirizal received his Bachelor degree in Industrial Engineering at Bandung Institute of Technology
(ITB) and holds an MBA degree from University Southern of California (USC). He was the
Technical Director of PT Toyota-Astra Motor, a leading automotive company in Indonesia. He has
more than 30 years of managerial experience in general and manufacturing management,
specializing in production control, quality control, purchasing, engineering, and product
development

DR. Ir.Aries Firman (AF)

E-mail: aries.firman@sbm-itb.ac.id; aries.firman@gmail.com
Phone: 08158767467
Aries received his bachelor degree majoring in Civil Engineering from Institute of Technology
Bandung. He obtained master degree for MBA at University of Luton (U.K.) and doctor degree
from Curtin University, Perth, Australia.

Milind Gadre, B.S., M.S., MBA (MG)

E-mail: milind@sbm-itb.ac.id; milind@vision-ease.co.id; milind@idola.net.id
Phone: 0816 891 941
Milind received his MBA from University of Minnesota, USA. He is currently the Vice President
Asia Business & President Director of Jakarta Operations with PT Vision-Ease.

COURSE DESCRIPTION
Operations management involves planning and controlling the processes used to produce the
goods and services provided by an organization. In essence, it is the management of all activities
related to doing the actual work of the organization. Managing these processes can be quite
challenging – they are often very complex, and can involve large numbers of people and facilities,
huge volumes of materials and great distances. Managed well, an organization’s operations can
be a key source of competitive advantage. They can play a critical role in facilitating an
organization’s marketing strategy, and they can enable an organization to deliver its products or
services with high quality at low cost. Managed poorly, operations can be a significant
Operation Management – MM5004 3
contributor to disappointing results. As a result, a fundamental understanding of operations
management is important for all managers within an organization.

EXPECTED LEARNING OUTCOMES

Specific objectives of the course are to:
a. Introduce you to the functional area of operations and to increase your awareness of
how a firm’s operations interface with the other functional areas of the organization.
b. Familiarize you with the various issues and problems that traditionally arise in the
management of operations within both manufacturing and service organizations.
c. Acquaint you with some of the terminology, modeling, and methodologies that often
arise in the handling and resolution of these issues and problems.

After completing the course, participants are expected to:

1. Put operations management system in perspective by recognizing the inputs,
transformation process, and desired outputs of a system.
2. Know how effective management of operations contributes to productivity
improvement.
3. Know various functional areas of an organization and their critical integrated role in the
performance of the organization.
4. Know the differences between manufacturing and service organizations.
5. Know the concept of competitive priorities and the primary ways business organizations
compete globally.
6. Know the differences between various production systems in terms of production volume
and customization.
7. Know the philosophical and statistical elements of total quality management (TQM) as
well as the concepts of six sigma, continuous improvement, and business process
reengineering.
8. Know the critical role of supply chain management in the competitiveness of the
organizations.
9. Know the concept of inventory management and the differences between push and pull
systems.
10. Be able to recognize operations management problems in practical settings such as real
life operations problems and case studies.
11. Know how to set-up and use selected operations management techniques such as, break-
even analysis, decision trees, project management (PERT/CPM), layout, queuing models,
quality improvement tools, statistical control charts, and inventory management models.

COURSE OUTLINE
The course consists of 6 days in class of 30 session modules:
The course consists of six modules:

Operation Management – MM5004 4

  Operation Strategy, Design, and Capacity: This module addresses the issues of
operations strategy and competitiveness and how the field of operations management
can provide direction in gaining and maintaining competitive advantage. Sessions
include: introduction to the field, operations and supply strategy, product development ,
and product and service design.

 Project Management: Management often involves juggling a portfolio of projects. There

are many different types of projects ranging from the development of totally new
products, revisions to old products, new marketing plans, and a vast array of projects for
better serving customers and reducing cost. This module discusses the technical aspects
of project scheduling, the people skills related to motivation, conflict resolution as key
decision points occur in the project, and leading a team work in a project.

 Manufacturing & Service Processes and Process Analysis: Explain what capacity
management is and why it is strategically important. Evaluate capacity alternatives using
decision trees. Among other the important decisions made by operations managers are
those exemplify a typical business process and how it can be analyzed. These decisions
include choice of processes, analysis of flows through operations, and the associated job
design in operations.

 Supply Chain Management: A major issue in designing a great supply chain for
manufactured goods is determining the way those items are moved from the sources of
material to the customers. This module is a high-level view of the latest concepts that
relate to supply chain strategy. Strategic sourcing is the development and management of
supplier relationships to acquire goods and services in a way that aids in achieving the
needs of the business. Such ideas as outsourcing, postponement, and product outsourcing
discussed. Capacity management is critical to success in running a global supply chain.

 Forecasting, Operation Planning and Quality Control: Scheduling decisions allocate

available capacity or resources (equipment, labor, and space) to jobs, activities, tasks, or
customers over time. Since scheduling is an allocation decision, it uses the resources made
available by facilities decisions and aggregate. Scheduling seeks to achieve several
conflicting objectives: high efficiency, low inventories, and good customer service. A trade-
off decision in scheduling between efficiency and inventory levels is required in the short
run. This module focuses on problem solving in scheduling that can be applied to many
business areas The module is also about designing, improving efficient processes and
quality. While quality management is cross-functional in nature and involves the entire
organization, operation has a special responsibility to produce a quality products and
services for the customer.

 Inventory, Procurement and Lean Production: The most significant operations and supply
management approach of the past 50 years is lean production. In context of supply chains,
lean production refers to focus on eliminating as much waste as possible. This module
discusses the just in-in-time (JIT) philosophy along with its extension to service firms and
lean thinking. JIT is called a philosophy because it goes far beyond inventory control and
encompasses the entire system of production. JIT is an approach that seeks to eliminate
all sources of waste in production activities by producing the right part at the right place
Operation Management – MM5004 5
 at the right time. Lean thinking is an extension of JIT beyond production to design,
distribution, supply chain, and services. To analyze supply chain processes using value
stream mapping that each step in supply chain processes that delivers products and
services to customers should create value

LEARNING GUIDANCE
LEARNING METHOD

The case method is used throughout the subject. Class members are encourages to
incorporate concepts from assigned readings into their analysis of the case. Normally two
teams will be assigned to present their findings for each case. All class members are
expected to have read each case and reflected upon the assigned questions, whether or
not their team has been assigned the case. Syndicates should submit a brief written
summary of their analysis and recommendations to the facilitator at the time case will
be discussed in the Power Point format, with two slides printed on each page.

Comments on case analysis:

1. Approach. It is useful to begin a case analysis with a quick reading to gain an overall
impression of scope and of the subject matter. The next reading should focus on
absorbing details and facts in the case. Then development of a points outline
following the four component structure is often useful, particularly as it reveals
important issues and types of appropriate analysis. Various kinds of analysis should
then be undertaken.
2. Assumptions. If analysis cannot proceed because the assumptions on which it is
based are not explicitly given in the case, it is often useful to create assumptions
and state them explicitly. This can unblock analysis and lead to useful insights. Even
if your assumptions are wrong, a good analysis which flows from them is better than
no analysis at all! Also, be prepared to challenge executive opinions and beliefs
about the nature of the problem given in the case and/or data that has been hastily
compiled or based on poor research.
3. Integration. Effective integration means that the alternatives should all be clearly
related to the identified problems, the issues should be critical to the alternatives
chosen, and the conclusion should flow logically from the analysis. If alternatives
are specified but not evaluated, the analysis is incomplete.
4. Alternatives. Try to select a set of alternatives that are relatively unique or allow
distinctions in strategy. Alternatives which are too similar often lead to overlooking
some important detail or restricting analysis unnecessarily.
5. Do’s and Don’ts. You may find the following list of 12 Do’s and Don’ts in case analysis
useful:

a. Be complete.
b. Avoid rehashing case facts.
c. Make reasonable assumptions.
d. Don’t confuse symptoms with problems
e. Don’t confuse opportunities with taking action.
f. Deal with objectives realistically.
g. Recognize alternatives.
Operation Management – MM5004 6
 h. Don’t be inflexible.
i. Discuss the pros and cons of each alternative.
j. Use financial and other quantitative information.
k. Reach a clear decision.
l. Make good use of evidence developed in your analysis.

Case analysis and discussion: Successful case analysis requires fresh perspectives and no
prior knowledge of how the case was "solved" by the company or "analyzed" by other
“experts”. It is fine (in fact, it is a good idea) to discuss case content with other students
in the same course section prior to coming to class; but you should not seek inside
information on cases (e.g., through the library). You should not discuss cases with
students who have taken the course in the past. Likewise, you should not reveal the
outcomes of the case or case discussion with students who will encounter the case in the
future (e.g., other sections who have not yet discussed the case).

PRESENTATIONS

Syndicates Group will be assigned to make presentations of their case analysis to the
entire class randomly at the time of case will be discussed. Therefore all syndicates have
to prepare for it appropriately.

The audience for the case presentations are the other members of the class. Please
address your talk to them. The syndicates may make the presentation as a team, or assign
a spokesperson to each case. In any case the syndicates should ensure that all team
members have any equal opprotunity to participate in the presentations.

The criteria for measuring the effectiveness of presentations include:

• Is the comment accurate? reflecting case facts but not repeating them?
• Does the comment add to our understanding of the problem situation or is it
frivolous, an attempt to get “air time”?
• Is the comment timely and linked to the comments of others?
• Is the comment action oriented, or simply a descriptive statement?
• Does the comment move the discussion along by giving a new perspective?
• Does the comment reflect a concern for maintaining a constructive and
comfortable classroom atmosphere?
• Is the comment clear and concise or obscure and rambling.

Some specific case questions are usually provided to help you to prepare the case
reports, but your own ideas and creativity are paramount. Keep the report concise.
There is no need to summarise the case materials. Simply get to the main points and
provide your analysis and/or recommendations with supporting justification

GROUP PROJECT

Each syndicate group may conduct an investigation and analysis of operations strategy in
a local organisation.

Operation Management – MM5004 7

 Based on some actual work experiences of some member’s, or it can be based on a study
of an operation management, you select an operation where your group will be allowed
to independently collect data relevant to the object. Limit your scope of your
investigation so that it can be accomplished, analysed and reported within scheduled
period.

Group Project report is then due on the last class of the semester and will be used as a
final exam grading. The report should include, but not limited to, the following:

1. Organisation Profile
2. A brief summary of the operation under study. It would be more communicative
if you describe this part in the flow chart format.
3. The major challenges/ problems in managing this specific operations.
4. A critical assesment of the operations/processes under study. How are the current
operations being managed to meet certain aspects in the strategy map
perspectives? What are the important competitive priorities? What the
management has done and is doing to deliver this performance? Are they
successful? Outline any existing problems in the operations and identify the
potential causes of these problems. What strategy you choose to improve the
situation?why and what be the potential impact? Are there any potential
difficulties in implementation?
5. Overall, what have you learned in this project?

Each syndicate group’s report will be graded for its professionalism, in addition to its
content.it must be clear, concise and well organised. All reports must typewritten in
double space or presented in Word Processor format. Provide title page with the report
tittle with full names of each each team members, and include a one page abstract
summarising the project. Make good use of exhibits such as tables and figures to support
your analysis, when appropriate.The reports should be written in English and no more
than 30 pages.

CLASS PARTICIPATION

Attendance at each class session is expected. If at some point during the term you find
that you cannot attend a particular session, you are responsible for obtaining any
handouts, submitting any assignments, and mastering the material for that session.
Missing a session necessarily impacts your class participation grade.

Active participation is expected throughout the entire class and students should make
thoughtful contributions to the discussion. Please note that frequency (i.e. quantity) of
contributions in class is not a key criterion for effective class participation. The classroom
should be considered a laobarory in which the student can test his/her ability to convince
peers of the correctness of one’s approach to complex problems and one’s ability to
achieve the desired results by using that approach. Criteria that are yseful in measuring
effective class participation include:

1. Is the participant a good listener?

Operation Management – MM5004 8

 2. Are the points that are made relevant to the discussion? Are they linked to the
comments of others?
3. Do comments show evidence of incorporating the concepts from readings into
the analysis of the case?
4. Is there a willingness to test new ideas, or are all comments ‘safe?’ (‘safe’ is
defined as simply repeating case facts without analysis and conclusions).
5. Do comments clarify or build upon the important aspects of earlier comments and
lead to a clearer statement of the concepts being covered and the problems being
addressed?

MIDTERM and FINAL EXAMINATION

The mid-term test and final examination will be in class according to the schedule issued
by the program. The work should be completed on 3 hours. Plagiarism or using someone
else to complete this exam are forbidden.

GRADING POLICY
Grading of this course is based on whether or not participant’s performance meets the module
standards for completion and proficiency in the subject materials.

Your final grade will be weighted as follows:

Aspect % Description
Attendance and Participation 40% Individual grade by facilitator
Group Project 20% Team grade by facilitator
Mid-term Test 20% Individual grade by facilitator
Final Examinantion 20% Individual grade by facilitator

COURSE SCHEDULE

Course Code Credit 3 BUSINESS LEADERSHIP EXECUTIVE MBA BLEMBA 28,

MM5004 SKS September-October 2020

Module 1: OPERATION STRATEGY & PROJECT MANAGEMENT

Friday 25 Sep. 2020
Operation Management – MM5004 9
 08.00-09.30 Session 1 (Lecturing): Adirizal Nizar

1. Topic: Introduction to OSCM

2. Issues Covered: Introduction to the field, Operation and
Supply Chain, Strategy, and Product Design
3. Reading: JC, Ch.1(p.2), Ch.2(p.23)
4. Activity: Lecturing and class discussion
5. Guiding questions for discussion:
a. What factors account for the resurgence of interest in
OM today?
b. What is operation and supply strategy?
c. How to evaluate operation performance?

09.30-09.45 Break
9.45-11.15 Session 2 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Strategy
2. Issues Covered: Introduction to the field, Operation and
Supply Chain, Strategy, and Product Design
3. Reading: JC, Ch.2(p.23)
4. Activity: Lecturing and class discussion
5. Guiding questions for discussion:

Case:
1. Topic: Dynamic Technologies (India) Limited: Strategic
Integration into The Aviation ang Aerospace Global Supply
Chain
2. Issues Covered: Ashwini Jethmalani, CEO and MD of
Dynamic Technologies (India) Limited (DTIL), is exploring
the opptunity to move from a Tier 2 supplier to a Tier 1
supplier to a European major in the Aviation an Aerospace
industry, Juggernaut. He must considers the sugesstions
from G. Natarajan, COO of DTIL and Nirmal Rego, Deputy
COO of DTIL. Ashwini can see the strength of both options.
3. Objective: To expose students to the need for examining
the business model of an organization – what segments of
the value chain should an organization have as internal
operations and what segments should be performed in
partnership with others.
4. Activity: Group and Class discussion
5. Case: Dynamic Technologies (India) Limited: Strategic
Integration into The Aviation and Aerospace Global Supply
Chain, [IMB 637]

11.15-13.00 Lunch
13.00-14.30 Session 3 (Case): Adirizal Nizar

1. Topic: Daikin Industries

2. Issues Covered: Shiga Factory of Daikin Industries
Residential Air Conditioning was confronted by the
prospect of an unseasonably cold summer. This was at a

Operation Management – MM5004 10

 time when Shiga Factory had large quantities of its products
in inventory in anticipation of strong summer sales. Option
describe in this case include reducing the number of
models, building a lower cost factory outside Japan, or
exiting the business.
3. Objective: To introduce the operation management and
strategy including value stream mapping, coping with
extreme demand, seasonality, postponement strategies,
and supply chain collaboration.
4. Activity: Group and Class Discussion
5. Case: Daikin Industries [Ivey Case No. 9B04D018}

14.30-16.00 Session 4 (Lecturing): Aries Firman

1. Topic: Project Management Fundamentals

2. Issues Covered: What is Project Management? Structuring
Project, and Work Breakdown Structure.
3. Reading: JC, Ch.10 (p.367)
4. Activity: Lecturing and class discussion

16.00-16.15 Break
16.15-17.45 Session 5 (Case): Aries Firman

Case 1
1. Topic: The CAT Project
2. Issues Covered: The case is about the planning and
execution of activities associated with conducting the
Common Admission Test (CAT) that is used by Indian
Institutes of Management (IIMs) in India and many other
better known business school in India for selection of
applicants to be admitted to their post-graduate programs
in management.
3. Objective: The case illustrates practically all aspects of the
process of getting a solution to developing a plan for
managing a project
4. Activity: Group Discussion or Class Discussion
5. Case: The CAT Project, IIMA/Prod 0306/2015

Case 2
6. Topic: Journal Article: PM- Generic or Contextual?
7. Issues Covered:.
8. Objective:
9. Activity: Group Discussion or Class Discussion

Module 2: PROJECT MANAGEMENT & OPERATION STRATEGY

Saturday, 26 Sep. 2020
08.00-09.30 Session 1 (Lecturing & Case): Aries Firman
Operation Management – MM5004 11
 Lecturing:
1. Topic: Project Stakeholders Mgt
2. Issues Covered:
3. Reading: PMBOK & PMJ10
4. Activity: Lecturing and discussion:

09.30-09.45 Break
09.45-11.15 Session 2 (Case): Aries Firman

Case 1
Case: Journal Article – International Development Project in
Capacity Building
1. Topic: IDB in CB Project
2. Issues Covered: The case is about 4 capacity building
projects in various countries: Vietnam, Indonesia, Sri
Lanka/Ceylon and Ghana. It discusses the findings on some
factors contributing to the more successful or less one
depending circumstances in the investigation
3. Objective: The case illustrates practically all aspects of the
process of getting the conditions that enable such a project
becomes successful
4. Activity: Group Discussion or Class Discussion
5. Guiding questions for discussion: TBA

Case 2
Topic: Biocon Research- Transition Project
6. Issues covered: A bio-pharma company identified few
options to restructure the R & D unit keeeping in mind
the demands fom the changing biopharma business
landscape
7. Activity: Group and class discussion
8. Objective: To understand how to conduct
transformation project in R & D from traditional
approach to become first class globally accepted
innovator in drug discovery
9. Case reference: Biocon Research – Preparing for the
Bio – Pharma Transition (India Institute of Mgt.
Bangalore)
10. Guiding questions for discussion: TBA

11.15-13.00 Lunch
13.00-14.30 Session 3 (Lecturing & Case): Aries Firman

Lecturing:
1. Topic: Project Integration Management
2. Issues Covered:
Operation Management – MM5004 12
 3. Reading: PMBOK & PMJ10
4. Activity: Lecturing
5. Guiding questions for discussion

Case:
1. Topic: Berlin Airport
2. Issues Covered: Just after reunification in 1990, plans were
made for single, new airport to concentrate all the traffic of
the new capital, Berlin. The project was amassing mistakes
and had already seen four delays, due mainly to the fire
detection system. At the end of December 2014, the
Supervisory Board announced that the airport would finally
open in the second half of 2017. Everybody wondered if
Karsen Muhlenfeld, the airport operator’s new CEO, would
be the one to finally get the airport operational.
3. Objective: The case discusses a project under development
that has entered a crisis: cost overruns, delays, and lack of
visibility in term of what might happen in the future. The
following can be discussed: (1)whether the plan and
organization were suitable; (2)where the project’s a priority
risks were and what must be contingencies were planned
for; (3)whether the reaction was appropriate; and (4)what
must be done from now on.
4. Activity: Exercise and Discussions
5. Case: Berlin Airport, IESE/P-1142-E/2015

14.30-16.00 Session 4 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Product and Service Design
2. Issues Covered: Processes of Product and Service
Development. Know the issues associated with product
design development and typical processes used by
companies. Illustrate how product development is
measured in a company. Contrast how service products can
have different design criteria compared to manufactured
products
3. Reading: JC, Ch.3(p.42).
4. Activity: Lecturing and class discussion

Case:
1. Topic: Operations Strategy at BYD of China, Electrifying the
World’s Automotive Market
2. Issues Covered: The Chinese company BYD is pursuing
electric cars and hopes to become the world’s largest car
company. With the financial support of American Warren
Buffett, the company, which has only been in existence for a
few years mostly making batteries, has caught the attention
of not only Mr. Buffett but also many in the auto industry.
This case examines the favorable conditions, technology
and the operations strategy that are propelling this Chinese

Operation Management – MM5004 13

 company to the forefront of the not so distant future of the
auto industry.
3. Activity: Group and Class discussions
4. Case: Operation Strategy at BYD of China, Electrifying the
World’s Automotive Market, [Purdue University in the
Journal of Academy]

16.00-16.15 Break
16.15-17.45 Session 5 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Strategic Capacity Management
2. Issues Covered: Explain what capacity management is and
why it is strategically important. Evaluate capacity
alternative using decision trees. Exemplify a typical
business process and how it can be analyzed, and how it
can be analyzed, Compare different types of processes.
Analyze manufacturing, service, and logistics processes to
ensure the competitiveness of a firm.
3. Reading: JC, Ch.5 (p.109), Ch.11 (p.262)
4. Activity: Lecturing and discussions

Case:
1. Topic: New Balance Athletic Shoes, Inc.
2. Issues Covered: New Balance was privately owned by Jim
and Anne Davis for $100,000 in 1972, and by 2005 New
Balance had revenue of $1.5 billion. In term of its
competitive strategy, New Balance distinguished itself from
its larger competitors by offering customers products that
emphasized fit and performance rather than fashion. New
Balance’s operation strategy was characterized by several
differentiating features, the most prominent the decision to
manufacture 25% of its shoes at its own factories in the
United States.
3. Objective: To introduce the concept of an operation
strategy, especially highlighting the central role that
operational execution and supply chain management
can play in differentiating a firm from competitors.
4. Activity: Group and Class Discussion
5. Case: New Balance Athletic Shoes, Inc. HBS, 9-606-094.

Module 3: MANUFACTURING & SERVICE PROCESSES AND PROCESS

Sunday, 27 Sep. 2020 ANALYSIS
Strategic capacity Session 1 (Lecturing): Adirizal Nizar

6. Topic: Manufacturing and Service Processes

7. Issues Covered: Understand what a manufacturing process
is and understand the characteristic of service process
8. Reading: JC, Ch.7 & Ch. 9
Operation Management – MM5004 14
 9. Activity: Lecturing and discussions

10.00-10.15 Break
10.15-11.45 Session 2 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Process Analysis
2. Issues Covered: Exemplify a typical business process and
how it can be analysis. Compare different types of
processes
3. Reading: JC Ch.11
4. Activities: Lecturing and discussions

Case:
1. Topic: Bayonne Packaging, Inc.
2. Issues Covered: Bayonne Packaging, Inc., $43 million printer
and paper converter that produces customized paper-based
packing for industrial customers for promotional materials,
software, luxury beverage, gift food, and gift candy. The
company’s performance has been slipping in recent years
and it has just finished fiscal 2011 with loss. The case
provides a cursory description of manufacturing process,
financial performance, order volume, capacity, utilization,
yield, quality and delivery problems, the scheduling and
expediting systems. And shop floor reporting problems.
3. Objective: Practice analyzing a production process.
Understand how information flow and production control
rules affect operations. Understand that the decision to
pursue a more diverse set of customer requirements can
make operation more challenging (cost v. quality v. deliver).
4. Activity: Group and class Discussions
5. Case: Bayonne Packaging, Inc. [HBS Case No. 4422]

11.45-13.00 Lunch
13.00-16.00 Mid-Term Examination: Adirizal Nizar

1. On Line.
2. Group + Individual (3 Hours).
3. Open Book and Internet.

Module 4: SUPPLY CHAIN MANAGEMENT, FORECASTING, AGGREGATE

Friday, 9 Oct. 2020 OPERATIONS PLANNING
08.00-09.30 Session 1: Adirizal Nizar

1. Topic: Introduction and Global Supply Chain Management

2. Issues Covered: Definition of SCM, Key observation,
Development of chain, Global SCM, Uncertainty & Risk
Factors, Evolution of SCM, Complexity of SCM.

Operation Management – MM5004 15

 3. Reading: SKS, Ch.1(p.1), Ch.10(p.331).
4. Activity: Lecturing and discussions

09.30-09.45 Break
09.45-11.15 Session 2 (Case): Adirizal Nizar

1. Topic: ShopClues, Turning Logistics into A Competitive

Advantage
2. Issues Covered: In March 2016< Ranjit Mayne, senior
director of logistics and fulfillment at ShopClues.com a
leading online marketplace, was reflecting on positive
turnaround in the company’s performance after adopted a
logistics outsourcing strategy. ShopClues focused on offering
variety in the unstructured product catagories to increase
the conversion rate and repeat purchases.
3. Objective: Analyze the operating models in the e-commerce
industry, identify the logistics requirements of e-commerce
companies, describe the concept of third-party logistics,
discuss e-commerce logistics structure and operations, and
explain the role of technology in e-commerce logistics.
4. Activity: Group and Class Discussion
5. Case: ShopClue: Turning Logistics into A Competitive
Advantage. Ivey-MDI W17389

11.15-12.45 Session 3 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Lean Supply Chain
2. Issues Covered: Illustrate how lean concept can be applied to
supply chain. Analyze supply chain processes using value
stream mapping
3. Reading: JC Ch.14
4. Activity: Lecturing and discussions

Case:
1 Topic: Adani Agri Logistics Limited: Blocking The Grain
Drain.
2 Description: Adani Agri Logistics Limited (AALL) was
established 2005 to execute a national project for bulk
handling of food grains through a public-private partnership
(PPP) with the Food Corporation of India (FCI). Under this
arrangement, the FCI supplied the food grain to AALL, who
then acted as custodian until delivery at the various public
distribution points.
The case illustrates how supply chain technology can
provide a useful solution to a sector marred with
inefficiencies in a developing country with emerging
economy.
3 Objective: This case can be used as an effective
supplementary tool in courses on supply chain operation
strategy

Operation Management – MM5004 16

 4 Case: Adani Agri Logistics Limited: Blocking The Grain Drain
[Ivey, Case No. W14072]
5. Activity: Group and Class Discussion

12.45-13.45 Lunch
13.45-15.15 Session 4 (Lecturing): Milind Garde

1. Topic: Forecasting and Aggregate Operation Planning

2. Issues Cover: Understand how forecasting is essential to
supply chain planning. Process planning that provide better
customer service, lower inventory, shorten lead times,
stabilize production rate, and give top management a handle
on the business.
3. Reading: JC, Ch.18(p.442), Ch.19(p.487),
4. Activity: Lecturing and class discussion
5. Guiding questions for discussion:
a. What is sales and operation planning?
b. Construct aggregate plan that employ different
c. What are yield management and leveling demand

16.00-16.15 Break
16.15-17.45 Session 5 (Case): Milind Garde

1. Topic: Lamson Corp.

2. Description: Presents a business game that allows
participants to make 12 scheduling decisions under
conditions of demand uncertainty. Played with groups of 3
to 5 participants, this game does not require a computer.
3. Issues Covered: Decision analysis, Scheduling Technique and
Control.
4. Activity: Exercise (business game)
5. Case: Lamson Corp. (R) [Ivey Case No. 94D001]

Module 5: QUALITY CONTROL, INVENTORY CONTROL, PROCUREMENT

Saturday, 10 Oct. 2020 MANAGEMENT
08.00-09.30 Session 1 (Lecturing): Milind Garde

1. Topic: Quality Perspective and Statistical Quality Control

2. Issues Covered: Quality Specification and Quality Costs, Six-
Sigma Quality, Fail–Safe Design, ISO 9000 & 14000, External
Benchmarking for Quality Improvement, and Statistical
Process Control (SPC)
3. Reading: JC, Ch.13(p.316)
4. Activity: Lecturing
5. Guiding questions for discussion:
a. What is cost of quality?
b. What is function of QC Department?
c. How do you apply six-sigma methodology, fail-safe
design, benchmarking and SPC
09.30-09.45 Break

Operation Management – MM5004 17

 9.45-11.15 Session 2 (Case): Milind Garde

Case 1:
1. Topic: Pharmacy Service Improvement at CVS (A)
2. Issues Covered: CVS's retail pharmacy operations are
functioning poorly and dissatisfying customers. Many
customers are defecting as a result. A pharmacy service
improvement team has documented the current prescription
fulfillment process, its exception rates, and the problems
generated by exceptions. The company must now decide
how to change this process, and what information system
changes to make in support of the redesigned process.
3. Objective: To show the tight linkages between business
processes and IT in many operations.
4. Activity: Group and Class Discussion
5. Case: Pharmacy Service Improvement at CVS (A)
[HBS Case No. 9-606-015]

Case 2:
1. Topic: The Evolution of Lean Six Sigma at 3M. Inc.
2. Issues Covered: 3M was applying many of the standard
approaches to Six Sigma that had been developed by
Motorola originally in 1985 and then extended to Allied
Signal and GE in the mid-90s. The 3M approach to Six
Sigma included two different improvement models. For
existing processes; the five-step DMAIC model and for
new product developments; DFSS (Design For Six
Sigma).
3. Activity: Group and Class Discussion
4. Case: Carlson School of Management at the University of
Minnesota.

11.15-12.45 Session 3 (Case): Milind Garde

1. Topic: Process Control at Polaroid (A)

2. Description: The Project Greenlight was Polaroid’s first
attempt at operator-based statistical process control which
early results appeared defect rate 10 times higher than
historical level. Though rate as measured by production
operators were half their historical level. The Green-light’s
project manager realizes that the new strategy and approach
to operations and quality methods imply moving from a
product inspection orientation to process control orientation
; making that transition is no simple matter.
3. Activity: Group and Class Discussion
4. Case: Process Control at Polaroid [HBS Case No. 9-693-047]
5. Guiding questions for discussion:
a. What is the magnitude of cost of quality at project
Greenlight?
b. How effective were its past procedures for quality
management.
c. What recommendations would you make in order to address
both near and long-term issue.
Operation Management – MM5004 18
 12.45-13.45 Lunch
13.45-15.15 Session 4 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Inventory Management
2. Issues Covered: Explain how inventory is used and
understand what it cost. Analyze how different inventory
control system work.
3. Reading: JC, Ch.20
4. Activity: Lecturing and discussions

Case:
1. Topic: Supply Chain Management at Wal-Mart
2. Description: In 2006, Wal-Mart’s rivals are copying every
aspect, from the way Wal-Mart cross-dock product in
warehouse, to Wal-Mart’s use of a sophisticated
database to capture, store and disseminate store-level
information to suppliers. Wal-Mart’s new executive
vice-president, logistics, Johnnie Dobbs, was overseeing
a handful of initiatives designed to improve the firm’s
supply chain.
3. Objective: To assess the supply chain management
strategy at Wal-Mart which includes basic issues of
Logistic, Purchasing, Retail operations, Supply chain
management, and corporate strategy
4. Activity: Group and Class Discussion
5. Case: Supply Chain Management at Wal-Mart [Ivey
Case No. 9B07D001]

15.15-15.30 Break
15.30-17.00 Session 5 (Lecturing & Case): Adirizal Nizar

Lecturing:
1. Topic: Procurement and Outsourcing Strategy
2. Issues Covered: Buy/make decision process. Framework for
optimizing buy/make decisions. Effective procurement
strategies. Framework for identifying the appropriate
procurement strategy. Linkage of procurement strategy to
outsourcing strategy.
3. Reading: SKS, Ch.9 (p.267).
4. Activity: Lecturing and discussions

Case:
1. Topic: Altimus Brand- Managing Procurement Risks
2. Issues: Altimus Retailer LTD is a family owned business based
in UK with a global presence in the footwear sector. Altimus
Retailer Ltd. outsourced all the production completely due to
its strategy of flexibility in production capacity and required
no investment in production assets. This strategy is also

Operation Management – MM5004 19

 effective for Company’s inventory management where they
can shift the risk to the manufacturers or suppliers.
3. Objective: Procurement Outsourcing Strategy
4. Case: Cranfield University
5. Activity: Group and class discussions

Module 6: LEAN PRODUCTION SYSTEM

Sunday, 11 Oct. 2020
08.00-10.00 Session 1 (Lecturing): Adirizal Nizar

1. Topic: Lean Production System - Toyota Production Systems

2. Issues Covered: Lean Logic, The Toyota Production System -
JIT, Lean Implementation Requirements.
3. Reading: JC, Ch.14 (p.346)
4. Activity: Lecturing and discussion
5. Guiding questions for discussion: what is JIT philosophy?

10.00-10.15 Break
10.15-11.45 Session 2 (Case): Adirizal Nizar

1. Topic: Toyota Motor Manufacturing, USA, Inc.

2. Issues Covered: On May 1, 1992, Doug Friesen, manager of
assembly for Toyota's Georgetown, Kentucky, plant, faces a
problem with the seats installed in the plant's sole product--
Camrys. A growing number of cars are sitting off-line with
defective seats or are missing them entirely. This situation is
one of several causes of recent overtime, yet neither the
reason for the problem nor a solution is readily apparent. As
the plant is an exemplar of Toyota's famed production
system (TPS), Friesen is determined that, if possible, the
situation will be resolved using TPS principles and tools.
Students are asked to suggest what action(s) Friesen should
take and to analyze whether Georgetown's current handling
of the seat problem fits within the TPS philosophy.
3. Learning Objective: 1) Provide comprehensive knowledge on
Toyota Production System, 2) Exercise advanced root cause
analysis, and 3) Demonstrate the totality of manufacturing,
especially the link between production control and quality
control.
4. Activity: Group Discussion or Class Discussion or Lecturing or
Game or Simulation or Role Playing
5. Case: Toyota Motor Manufacturing, U.S.A., Inc. [Harvard
Case No. 9-693-019]
6. Guiding questions for discussion: (i) As Doug Friesen, what
would you do to address the seat problem? Where would
you focus your attention and solution efforts? (ii) What
options exist? What would you recommend? Why? (iii)
Where, if at all, does the current routine for handling
defective seats deviate from the principles of the Toyota

Operation Management – MM5004 20

 Production System? (iv) What is the real problem facing
Doug Friesen?
11.45-13.00 Lunch
13.00-16.00 Final Examination: Adirizal Nizar

1. On Line.
2. Group and Individual (3 Hours)
3. Open Book and Internet.

READING MATERIALS
 Required Text Books (pocket books):
 Operations and Supply Chain Management (14th edition 2014) by
F. Robert Jacobs, and Richard B. Chase (JC)

 Reference books and recommended reading:

 Designing and Managing the Supply Chain (3rd edition 2008) by David Simchi-Levi,
Philip Kaminsky, Edith Simchi-Levi (SKS)
 The Toyota Way, by Jeffrey Liker

 Supplemental texts and helpful websites (Data and Internet):

 HBS Toolkit - Basic Operations Self-Instructional Workbook
(http://hbswk.hbs.edu/archive/1460.html)
 Production and Operations Management Society (www.poms.org)
 Supply Chain and Operations Management Glossary
(business.tepper.cmu.edu/files/supplychainandoperationsmanagementglossary.pdf)
 Operations Management Glossary
(webuser.bus.umich.edu/Organizations/rpa/GlossaryMay02.pdf)
 Operations Management (www.managementhelp.org/ops_mgnt/ops_mgnt.htm)
 Process Mapping (http://csob.berry.edu/faculty/jgrout/processmapping/index.html)
 Open Online Courses: Process Improvement
(http://gunston.gmu.edu/healthscience/)

Operation Management – MM5004 21

LIST OF CASES
1. Dynamic Technologies (India) Limited: Strategic Integration into The Aviation and Aerospace
Global Supply Chain, INDIAN INSTITUTE OF MANAGEMENT BANGLORE, [IMB 638]
2. Daikin Industries, [Ivey 9B04D018]
3. The CAT Project, [IIMA/Prod 0306/2015]
4. Journal Article: PM- Generic or Contextual?
5. Journal Article:International C.D. Project [IJPM#35-2017]
6. Biocon R&D project, [IMB 807]
7. Berlin Airport, IESE/P- 1142-E/2015
8. Operation Strategy at BYD of China, Electrifying the World’s Automotive Market, [Purdue
University in the Journal of Academy]
9. New Balance Athletic Shoes, Inc. [HBS 9-606-094]
10. Bayonne Packaging, Inc [HBS 4420]
11. ShopClues:Turning Logistics into A Competitive Advantage, Ivey-MDI W17389
12. Adani Agri Logistics Ltd.: Blocking the grain drain, Ivey W14072
13. Lamson Corporation ®, [Ivey 94D001]
14. Pharmacy Service Improvement at CVS, [HBS 9-606-015]
15. The Evolution of Lean Six Sigma at 3M. Inc. [Carlson School of Mgt]
16. Process Control at Polaroid [HBS 9-693-047]
17. Supply Chain Management at Wal-Mart, Ivey 9B07D001
18. Altimus Brand: Procurement Risk [Cranfield]
19. Toyota Motor Manufacturing, USA, Inc, HBS 9-693-019

Operation Management – MM5004 22

MM5004 OPERATION MANAGEMENT, BLEMBA 28, SEMESTER I - 2020/2021 11/09/2020

Friday 25 Sep. 2020

Modul 1: OPERATIONS STRATEGY & PROJECT MANAGEMENT
Time Course Content Lecturer Reading
08.00-09.30 1. L: Introduction to Operations and Supply Chain Mgt Strategy Adirizal Nizar JC, Ch.1(p.2), Ch.2(p.23)
09.30-09.45 Break
09.45-11.15 2. L: Strategy + Case: Dynamic Technologies (India) Limited: Strategic Adirizal Nizar IMB 637
Integration into The Aviation and Aerospace Global Supply Chain
11.15-13.00 Lunch
13.00-14.30 3. Daikin Industres Adirizal Nizar Ivey, 9B04D018
14.30-16.00 4. L: Project Management Fundamental Aries Firman PMJ vol 39 no 1-2008
16.00-16.15 Break
16.15-17.45 5. The CAT Project and Journal Article: PM- Generic or Contextual? Aries Firman IIMA/Prod 0306/2015
Saturday 26 Sep. 2020
Modul 2: PROJECT MANAGEMENT & OPERATIONS STRATEGY
Time Course Content Lecturer Reading
08.00-09.30 1. L: Project Stakeholders Mgt Aries Firman PMBOK 6th Ed-2017
09.30-09.45 Break
09.45-11.15 2. Case: Journal Article:International C.D. Project & Biocon R&D Project Aries Firman IJPM#35-2017 & IMB 807
11.15-13.00 Lunch
13.00-14.30 3. L: Project Integration Management + Case: Berlin Airport Aries Firman IESE/P-1142-E/2015
14.30-16.00 4. L: Product and Service Design + Case: Operations Strategy Adirizal Nizar JC Ch.3, Purdue Uni. In
at BYD of China, Electrifying the World’s Automotive Market. the Journal of Academy
16.00-16.15 Break
16.15-17.45 5. L: Strategic Capacity Mgt. + Case: New Balance Athletic Shoes Adirizal Nizar HBS, 9-606-094
Sunday 27 Sep. 2020
Modul 3: STRATEGIC CAPACITY and PROCESS ANALYSIS
Time Course Content Lecturer Reading
08.00-10.00 1. L: Stratigic Capacity, Manufacturing and Services Processes Adirizal Nizar JC, Ch.5,Ch.7 & Ch.9
10.00-10.15 Break
10.15-11.45 2. L: Process Anaalysis + Case: Bayonne Packaging, Inc. Adirizal Nizar JC, Ch.11, HBS. 4420
11.45-13.00 Lunch
MID-TERM EXAMINATION
13.00-16.00 Mid-Term Exam in class Adirizal Nizar Open Book

Friday 9 Oct. 2020

Modul 4: SUPPLY CHAIN MANAGEMENT & FORECASTING, OPERATION PLANNING
Time Course Content Lecturer Reading
08.00-09.30 1. L: Introduction SCM and Global Supply Chain Management Adirizal Nizar SKS, Ch.1, Ch.10
09.30-09.45 Break
09.45-11.15 2. ShopClues: Turning Logistics Into A Competitive Advantage Adirizal Nizar Ivey-MDI W17389
11.15-12.45 3. L: Lean Supply Chain + Case: Adani Agri Logistics Ltd. Adirizal Nizar Ivey, W14072
12.45-13.45 Lunch
13.45-15.15 4. L: Forecasting and Aggregate Operations Plannning Milind Garde JC, Ch18, Ch19(p.487)
15.15-15.30 Break
15.30-17.00 5. Lamson Corporation ® Milind Garde Ivey, 94D001
Saturday 10 Oct. 2020
Modul 5: QUALITY, INVENTORY, PROCUREMENT MANAGEMENT
Time Course Content Lecturer Reading
08.00-09.30 1. L: Quality Management and Statistical Process Control Milind Garde JC, Ch.13(p.316)
09.30-09.45 Break
09.45-11.15 2. Pharmacy Service Improvement at CVS Milind Garde HBS, 9-606-015
11.15-12.45 3. Process Control at Polaroid Milind Garde HBS, 9-693-047
12.45-13.45 Lunch
13.45-15.15 4. L: Inventory Mgt + case: Supply Chain Mgt at Wal-Mart Adirizal Nizar JC, Ch.20, Ivey,9B07D001
15.15-15.30 Break
15.30-17.00 5. L: Procurement and Outsourcing Strategy + Case: Altimus Adirizal Nizar SKS, Ch.9, Cranfield Uni.
Sunday 11 Oct. 2020
Modul 6: LEAN PRODUCTION MANAGEMENT
Time Course Content Lecturer Reading
08.00-10.00 1. L: Lean Production System: TPS, Toyota Production System Adirizal Nizar JC, Ch.14(p.346)
10.00-10.15 Break
10.15-11.45 2. Toyota Motor Manufacturing, USA, Inc. Adirizal Nizar HBS, 9-693-019
11.45-13.00 Lunch
FINAL EXAMINATION
13.00-16.00 Final Exam in class Adirizal Nizar Open Book