Course Syllabus of Operations Management
Spring 2016 (DRAFT from Spring 2015)
Instructor: Wenqiang Xiao
Office hours: 12:30-1:30pm Tuesday
Office: KMC 8-72
Email:
[email protected]Telephone: 212-998-0945
What is Operations Management
Operations is one of the primary functions of a firm. Whereas marketing focuses on the demand
for the product, and whereas finance provides the capital for the product, operations produces
and delivers the product. Operations management is about designing, analyzing, and improving
the whole transformation process, including procurement, production, distribution, warehousing,
and retailing, with the objective of creating competitive advantage for the enterprise.
Course Objective
This course provides a foundation for understanding the operations of a firm. Our objective by
the end of the course is to provide you with the analytical skills and managerial insights
necessary to critically analyze a firm's operations decisions and practices. Such knowledge is
important for careers in a variety of areas, including general management, entrepreneurship,
investment banking (e.g. business restructurings, mergers and acquisitions), venture capital (e.g.
evaluating new business plans) and management consulting (business restructuring
improvement).
Course Content
This course has the following four modules, each of which consists of several topics that are
connected to some extent and share the common theme of the module.
1. Managing Process and Resource: Process analysis and its applications; optimal resource
allocation method; optimal resource portfolio; value of resource flexibility; control charts.
2. Managing Service System: Coping with variability of service system; simulating service
system; separating vs. pooling servers.
3. Managing Supply and Demand Mismatch Risks: inventory management; risk pooling; risk
hedging.
4. Managing Supply Chains: contracts, integrating sales and operations planning, global supply
chain, bullwhip effect.
Teaching Approach
Here is the typical approach to covering a topic. First we start with an example (which can be a
real business problem or a simplified version) with concrete numbers and clearly defined
questions that are often of managerial relevance. Then we provide rigorous Excel spreadsheet
analysis to solve the problem. Finally we discuss managerial insights based on the spreadsheet
analysis.
1
Grading Scheme
Homework & In-Class Exercises 30%
Midterm Exam 35%
Final Exam 35%
Homework and In-Class Exercises
Homework should be submitted either in class at the beginning of the class on the due date, or by
email before the deadline. A penalty of 30 percent deduction applies to any late submission.
Exams
Midterm Exam: In Class, Mar 12 (Thursday).
Final Exam: In Class, May 7 (Thursday).
The final exam is non-accumulative. Open notes.
Laptop Policy
Many students (and this professor) find the use of laptops during class to be distracting.
Therefore, except when instructed by the professor, please refrain from using your laptop during
class.
Attendance and Classroom Etiquette
Your attendance is expected for every class session. Please notify me in advance if you have to
miss a class due to a legitimate reason. When you attend, you will be expected to conduct
yourself professionally and respectfully during class, which means being attentive and
considerate of others in the class. This means refraining from the use of cell phones, text
messaging, email, reading the newspaper, etc. during class.
2
Course Schedule
Module Session Title Dates Laptop
Managing Introduction to Operations Management Jan 29 No
Process and Process Analysis Feb 3 No
Resource Applications of Process Analysis: Panama Canal Feb 5 No
Applications of Process Analysis: The Goal Feb 10 Yes
Managing Resource: Optimal Allocation Feb 12 Yes
Managing Resource: Seagate Case Study Feb 17 Yes
Managing Resource: Value of Flexibility Feb 19 Yes
Monitoring Process Using Control Charts Feb 24 Yes
Managing Coping with Variability of Service System Feb 27 Yes
Service Simulating Service System Mar 3 Yes
System Separating vs. Pooling Servers Mar 5 Yes
Review Mar 10 No
Midterm Exam Mar 12 No
Managing Newsvendor Model Mar 24 No
Risk of LL Bean Case Study Mar 26 No
Demand Order-up-to Policy Mar 31 Yes
and Supply Demand Risk Pooling April 2 Yes
Mismatch HP Case Study April 7 Yes
Operational Hedging and Financial hedging April 9 Yes
Managing Supply Chain Contracts: Returns Contract April 14 Yes
Supply Supply Chain Contracts: Revenue Sharing Contract April 16 Yes
Chain Sales & Operations Planning April 21 Yes
Global Supply Chain April 23 No
Beer Game April 28 No
Debrief of Beer Game April 30 No
Review May 5 No
Final Exam May 7 No
