POST GRADUATE PROGRAMME IN MANAGEMENT

AY2022-23 TERM: II

TITLE OF THE COURSE: OPERATIONS MANAGEMENT- II

CREDITS: 3 No. of Section: 8

Name of the Faculty Faculty Blok/ Email Telephone Number

Room No.
Prof. Omkar D. Palsule Desai C - 107 [email protected] +91-731-2439567
Prof. Sanjay Choudhari C - 105 [email protected] +91-731-2439577
Prof. Saurabh Chandra A - 207 [email protected] +91-731-2439530
Prof. Vinaysingh Chawan B - 201 [email protected] +91-731-2439545

CONSULTATION TIME FOR STUDENTS* (Term II)

Prof. Omkar D. Palsule Desai Tuesday 2 to 4 pm
Prof. Sanjay Choudhari Tuesday 4 to 6 pm
Prof. Saurabh Chandra Tuesday 4 to 6 pm
Prof. Vinaysingh Chawan Classdays 3 to 5 pm
* In case the faculty is not available in particular week, new consultation time will be informed
by email. However, students who wish to meet the faculty other than the above timings, kindly
send the email for the appointment.

COURSE DESCRIPTION

Operations Management (OM) deals with management of resources in production of goods and
in delivering services. This course demonstrates various managerial challenges posed in
operational decision making in diverse settings. It provides the participants perspectives in
operational planning and helps in evolving analytical frameworks in managerial decision making.
Moreover, it also provides understanding of the role of operations and its linkage to external
environment in developing competitiveness.

COURSE OBJECTIVES

1) Building analytical decision-making perspectives to address short, medium and long term
planning and control issues in manufacturing and service operations.
2) Obtaining insights into implementation of well-established practices of operations in
manufacturing and service organizations.
 3) Exploring and understanding world-class practices in improving the operations from
strategic and tactical perspectives, and also strengthening a firm's internal operations in
view of external systems in order to develop the competitive advantage.

LEARNING OUTCOMES

At the end of the course student is expected to accomplish the following learning outcomes (CLO).
Alignment of CLO with the Programme Level Goals & Objectives and Assessment of the learning
outcomes of the course is presented below.

Assessment
Course Learning Outcome Programme Level Goals & Outcomes
Tools
1. Building analytical decision Goal 1: Develop Critical Thinking Ability Already mapped
perspective to address short,
medium and long term 1.2 Identify the decision problem along
planning and control issues with sources
and further develop the ability Goal 1: Develop Critical Thinking Ability Already mapped
use well-established practices
of operations in manufacturing 1.3 Identifies and presents appropriate
and service organization
evidence supporting the analysis of
alternatives
2. Will be able to explore and
Goal 1: Develop Critical Thinking Ability Already mapped
understand world-class
practices in improving
operations and strengthening 1.4 Evolves one’s own perspective or
the firm’s internal operations takes a position / makes judgement
to external system Goal 3: Develop Competence in Already mapped
Quantitative Analysis

3.1 Identifies the right set of data with

correct calculations to facilitate
decision making in business

PEDAGOGY/TEACHING METHOD:
Mix of lectures, cases, discussions and class exercises.

TEXT BOOK for OM COURSE

Author Title Publisher Edition Remarks

Chase, R. B., Operations and McGraw-Hill (2014), Same title
Shankar, R. and Supply Chain Education, New Delhi. 14th edition used for OM I
Jacobs, F.R. Management (CSJ) in Term 1

EVALUATION

Individual Component Group Component Weightage

Class Participation 15
Quizzes 30
End – Term examination 45
Group Assignments 10
Total 100%

ACADEMIC DISHONESTY
IIM Indore believes in Academic honesty.
Academic dishonesty or misconduct is cheating that relates to an academic activity. It is a
violation of trust between the Institute and its stakeholders. Plagiarism, fabrication, deception,
cheating and sabotage are examples of unacceptable academic conduct. Please consult the
Programme manual for the section on academic dishonesty.

SCHEDULE OF SESSIONS

Module I INVENTORY MANAGEMENT

Module Objective: Exploring the importance of inventory management, associated costs,

techniques for controlling inventories, expected service level, optimal inventory levels with
respect to demand and supply uncertainty.

Session 1, 2 Introduction to inventory management, ABC analysis, EOQ models

Objective: Understand the importance of inventory management and to introduce basic
EOQ model
Reading: Independent Demand Inventory Management, pp. 427-443(Chapter 12)
Case: Kraft, T., Chung, Y. T. & Erhun, F. (2012). KEY Electronics—Sourcing and
Warehouse Analysis, INFORMS Transactions on Education. 12 (2), 92-99.

Session 3 Introduction to review period

Objective: To introduce the review period concept in inventory model
Reading: Independent Demand Inventory Management, pp. 453 - 465(Chapter 12)
Case: Kraft, T., Chung, Y. T. & Erhun, F. (2012). KEY Electronics—Sourcing and
Warehouse Analysis, INFORMS Transactions on Education. 12 (2), 92-99.

Session 4, 5 Inventory control under uncertainty

Objective: To compute various service level parameters in inventory
Reading: Independent Demand Inventory Management, pp. 453 - 465(Chapter 12)
Case: Kraft, T., Chung, Y. T. & Erhun, F. (2012). KEY Electronics—Sourcing and
Warehouse Analysis, INFORMS Transactions on Education. 12 (2), 92-99.

Module II QUALITY MANAGEMENT

Module Objective: Exploring the importance of quality and evaluating and monitoring quality
based performance of manufacturing and service organizations.

Session 6 Perspectives and tools for quality

Objective: To introduce the various concepts and importance of quality Six
Reading: Sigma Quality, pp. 362-368, 370-374 (Chapter 12, CSJ)

Session 7 & 8 Quality Management Tools: Statistical process control

Objective: To study the use of process control charts for different situation
Reading: Statistical Quality Control, pp. 397-406 (Chapter 13, CSJ)
Case: Deodhar, S., & Tirupati, D. (2002). Indian Food Specialties Limited. IIMA No.
CMA0805, IIM Ahmedabad

Session 9 Process capability and Six Sigma

Objective: To compute and interpret process capability to meet customer requirements
Readings: Six Sigma Quality, pp. 369-371 (Chapter 12, CSJ)
Statistical Quality Control, pp. 392-397 (Chapter 13, CSJ)
Case: Mumbai Dabbawallah, pp. 371, 6Sigma in service, (Chapter 12, CSJ)

Module III BEST PRACTICES IN OPERATIONS MANAGEMENT

Module Objective: Introducing the world-class best practices such lean system in designing and
managing operations system and demonstrating how these practices improve the overall
efficiency and effectiveness of firms.

Session 10 Toyota Production System (TPS)

Objective: To introduce and discuss TPS best practices such as pull system, quality, setup
time reduction, KANBAN etc.
Case: Mishina, K. (1995).Toyota Motor Manufacturing, U.S.A., Inc. HBS No.
9693019. Harvard Business School Publishing

Session 11 Just in Time (JIT) implementation

Objective: To design the road map for JIT implementation and understand the various
issues involved in linking suppliers to customer through JIT.
Case: Collins, R. (2004). Sunwind A.B. (A), IMD No. 631, IMD International
Publishing
Reading: Lean Supply Chain, pp. 426-438, 441-444 (Chapter 14, CSJ)
 Session 12 Lean Operations : Application in Service
Objective: To introduce lean application in service company
Reading: Wipro’s Lean Journey, pp. 4, Upton, D. and Staats, B. (2011). Lean knowledge
work. R1110G. Harvard Business Review, pp. 1-8

Module IV DESIGN OF SERVICE SYSTEM: APPLICATION OF QUEUEING THEORY

Module Objective: Discussing various aspect of managing waiting line, evaluating the tradeoff
between cost of waiting and cost of providing service; and applying waiting line models in
service industry.

Session 13, 14 Models of waiting line in service and manufacturing

Objective: To study the single (M/M/1) & multiple servers (M/M/S) waiting line models in
the business situation and understand the available tradeoff
Reading: 1. Maister, D. (1995). Note on the Management of Queues, HBS
No. 9680053, pp.1-14, Harvard Business School Publishing
2. Waiting Line Analysis, pp. 272-288 (Chapter 10,CSJ) Class
Problem: exercise

Session 15 Waiting line management in services

Objective: To apply the waiting line concepts in service industry
Case: Whetsel, J. (1995). Megacard Corporation, Darden No. UV0329. Darden
Business Publishing

Additional Readings

The following books are recommended for supplementary reading:

1. Nahmias, S. (1997). Production and Operations Analysis, 3rd Edition, Irwin.

2. Chase, R. B., Shankar, R. and Jacobs, F.R. (2014). Operations and Supply Management, 14th
edition, McGraw-Hill Education.
3. Krajewski, L. J., Ritzman, L. R., Malhotra, M. K. and Srivastava, S. K. (2010). Operations
Management - Processes and supply chain, 9th edition, Pearson.
4. Stevenson, W. J. (2014). Operations Management, 9th edition, McGraw-Hill Education.
5. Mahadevan, B. (2010). Operations Management - Theory and Practice, 2nd edition,
Pearson.
6. Heizer, J., Render, B., and Rajashekhar, J. (2009) Operations Management, 9th edition,
Pearson.
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