Lahore University of Management Sciences

DISC 230: Operations Management

Spring 2021

Instructor Dr. Zehra Waheed

Room No. 4-0045 (SDSB)
Office Hours TBD
Email/ Telephone zehra.waheed@lums.edu.pk/ extension 8426
Secretary Arfa Hamad, extension 8403, email: arfa.hamad@lums.edu.pk
Course URL (if any) Course outline uploaded on LMS within the DISC 230 tab

COURSE BASICS
Credit Hours 3
Lecture(s) No of lectures per week 2 Duration 75 mins
Teaching methodology Mostly synchronous - with a splattering of asynchronous sessions (just for some lame fun!)

COURSE DISTRIBUTION
Core/ Elective Core

COURSE DESCRIPTION

Operations transform resource or data inputs into desired goods, services, or results to create value for customers and
the manufacturer/service provider. An operation in automotive industry may involve an automotive assembly. In
banking, an operation may involve providing teller services to the customers. Similarly, at McDonalds an operation may
involve producing Big Mac or french fries. A primary objective of any manager (regardless of the industry type) is to
design, plan, execute, and continuously improve the operation— for which he/she is responsible for, in a cost-effective
manner. A thorough understanding of the intricacies involved is a requisite for cost effective and efficient management
of manufacturing and service operations.
This is core business course that aims to provide an overview of fundamental operations management concepts as well
as an in‐depth understanding of proven techniques and best practices. During the course, the similarities and differences
in operations management for various types of commercial sectors (such as manufacturing, services, etc.) shall be
specifically highlighted.
After completing this course student will potentially be able to understand key concepts in operations management and
would be able to choose and apply operations management tools and techniques.

COURSE PREREQUISITE(S)
MATH 101 Calculus, Statistics (Note: in the past, students without these backgrounds have very happily survived the
course! So, no need to fret!)

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COURSE OBJECTIVES

Major objectives of this course are:

• To develop an understanding of the basic concepts, methods and techniques of operations management in the
contexts of manufacturing and service operations
• To be able to analyze and solve real life operations management related problems using the concepts and methods
learned in this course
• To observe and experience operations of some real-life business organizations and reflect on their performance

After taking this course, the students will get acquainted with the basic concepts, methods and techniques of operations
management and will develop an ability to apply these concepts for analyzing and improving operations management related
issues in real world organizations.

LEARNING OUTCOMES

After completing this course student will potentially be able to:

• Understand key concepts in operations management
• Choose and apply operations management tools and techniques

UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES

General Learning Goals & Objectives
Goal 1 –Effective Written and Oral Communication
Objective: Students will demonstrate effective writing and oral communication skills
Goal 2 –Ethical Understanding and Reasoning
Objective: Students will demonstrate that they are able to identify and address ethical issues in an
organizational context.
Goal 3 – Analytical Thinking and Problem-Solving Skills
Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions.
Goal 4 – Application of Information Technology
Objective: Students will demonstrate that they are able to use current technologies in business and
management context.
Goal 5 – Teamwork in Diverse and Multicultural Environments
Objective: Students will demonstrate that they are able to work effectively in diverse environments.
Goal 6 – Understanding Organizational Ecosystems
Objective: Students will demonstrate that they understand Economic, Political, Regulatory, Legal, Technological, and
Social environment of organizations.

Major Specific Learning Goals & Objectives

Goal 7 (a) – Discipline Specific Knowledge and Understanding
Objective: Students will demonstrate knowledge of key business disciplines and how they interact including
application to real world situations (Including subject knowledge).
Goal 7 (b) – Understanding the “science” behind the decision‐making process (for MGS Majors)
Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate
decision‐support tools, interpret results and make meaningful recommendations to support the decision‐maker.

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Indicate below how the course learning objectives specifically relate to any program learning goals and objectives

PROGRAM LEARNING GOALS AND COURSE LEARNING COURSE ASSESSMENT ITEM

OBJECTIVES OBJECTIVES
Goal 1 –Effective Written and Oral Not directly covered Project, CP
Communication
Goal 2 –Ethical Understanding and Somewhat covered through CP, quizzes, exams
Reasoning objectives 1 & 2
Goal 3 – Analytical Thinking and Problem- Covered through objective 2 & 3 CP, quizzes, exams
Solving Skills
Goal 4 – Application of Information Technology Covered through objective 2 & 3 CP, quizzes, exams
Goal 5 – Teamwork in Diverse and Multicultural Covered through objective 2 & 3 Project
Environments
Goal 6 – Understanding Organizational Covered through objectives 1 & 2 Project
Ecosystems
Goal 7 (a) – Discipline Specific Knowledge and Covered through objectives 1 ‐ 4 CP, quizzes, exams, Project
Understanding
Goal 7 (b) – Understanding the “science” behind Covered through objective 2 Project
the decision‐making process

GRADING BREAKUP AND POLICY

• Attendance: 5%. First four absents - no penalty, next four - 1 percent reduction per absence from final
score, beyond 8 - letter grade reduction
• Class Participation (CP): 5%
• Quizzes: 20% announced/ unannounced. n-1 policy for quizzes beyond 5 quizzes. No retake.
• Group Project: 20%
• Midterm Examination: 25%
• Final Examination: 25%

Class Participation Policy

• 0 for being absent from the class
• 1 for attending the class (and not falling asleep!)
• 2 for little participation in the class discussion (awarded for engaging in a discussion, asking questions
relevant to a discussion, describing case facts, giving an opinion or idea in relation to the discussion)
• 3 for good participation in the class discussion (awarded for giving a valid contradictory viewpoint, reasoning,
bringing critical thinking in or comprehensive argument or rationale behind a concept)
• 4 for very good participation in the class discussion (awarded for hitting multiple “ds” as mentioned above)
• 5 for excellent participation in the class discussion (awarded for bringing to the class and supporting with
solid argument some concepts which even instructor does not know)

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Group Project
Students will develop a group project. The group size will be decided based on enrolment. Students will identify an
operations management related problem in an organization and apply course concepts, thus formulating and analysing
the problem. Following this they will synthesize and suggest an appropriate solution to the problem. They will share their
solution with the organization under study and understand from company personnel the likely problems in implementing
their solutions. The feedback obtained from the company personnel will be incorporated in the final project report.

A detailed description on group project will be provided once the course starts.

EXAMINATION DETAIL

Yes/No: Yes
Midterm Combined/ Separate: TBD
Exam Duration: 80-120 minutes (TBD nearer the time)
Exam Specifications: Pre‐Mid Syllabus, Close Book & Notes, Calculators Allowed

Yes/No: Yes
Combined/ Separate: TBD
Final Exam Duration: 80-120 minutes (TBD nearer the time)
Exam Specifications: Post‐Mid Syllabus, Close Book & Notes, Calculators Allowed

COURSE OVERVIEW
Recommended Objectives/
Lecture Topics
Readings Application
Introduction, Scope of OM, OM & Decisions Stevenson - Chapter 1 Understanding the need for OM
1,2 Making, Evolution of OM (Introduction to
Operations Management)
Competitiveness, Operations Strategy, Stevenson - Chapter 2 Understanding why productivity
3 Productivity, Productivity Improvement (Competitiveness, Strategy matters in OM
& Productivity)
Steps in Forecasting Process, Qualitative &
Quantitative Forecasting, Time-Series Models, Understanding Forecasting
Seasonality, Associative Forecasting Stevenson - Chapter 3 Techniques & Data Requirements,
4,5,6
Techniques, Comparing Forecasting (Forecasting) Measuring Forecast Accuracy
Techniques, Errors in Forecasting

Need for Product Design or Redesign, Human Understanding the Objectives of

Factors, Legal & Environmental Factors, Stevenson - Chapter 4 Product & Service Design, impact
Product Life Stages, Standardization & Mass (Product and Service of internal & external factors on
Customization, Phases in Product Design & Design) design
7,8 Development,
Service Design Vs. Product Design,

Supplement to Chapter 4-Reliability:

Probability of Functioning When Activated,
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Probability of Functioning for a Given Length
of Time

Capacity Decisions, Defining & Measuring Understanding how to measure

Capacity, Capacity Planning, When to Stevenson - Chapter 5 capacity, developing capacity
9 Outsourcing, Developing Capacity Strategies, (Strategic Capacity alternatives, deciding between
Cost-Volume Analysis & Break-Even Point Planning for Products & alternative capacity options
Services)
Case Study: Understanding process flows, Gantt
Kirsten’s Cookie Company charts, capacity, lead times,
10
throughput & flow times,
bottlenecks etc.
Process Selection, Process Strategy, Repetitive
Processing (Product Layouts), Non-Repetitive Stevenson - Chapter 6 Understanding the types of
11,12 Processing (Process Layouts), Fixed- (Process Selection processing layouts, line balancing
Position/Combination/ Cellular/Service & Facility Layout) advantages
Layouts, Line Balancing
Working Conditions, Job Design, Process Flow Understanding the impact of
Charts, Motion Study, Work Measurement, Stevenson - Chapter 7 working conditions, time & motion
13,14 Work Sampling, Supplement to Chapter 7- (Work Design & study, learning curves application
Learning Curves: Concept of Learning Curves, Measurement)
Criticism

Mid-Term Exam

Understanding the factors affecting

Location Decisions, Evaluating Alternative Stevenson - Chapter 8 location decisions, understanding
15 Locations (Cost-Profit-Volume Analysis, (Location Planning & the location decision process & how
Factor Rating, Center of Gravity Method) Analysis) to decide between different location
options
Dimensions of Quality, Determinants of
Quality, Poor Quality, Costs of Quality, Gurus Stevenson - Chapter 9 Understanding what quality and
16 of Modern Quality Management, Total Quality (Management of Quality) TQM; costs of quality & poor
Management, Introduction to Quality Tools quality,

Inspections, Statistical Process Control,

Control Charts for Variables & Attributes, Run Understanding the need for
Tests, Process Capability Analysis Stevenson - Chapter 10 inspections, statistical quality
17,18,19
Extra Reading: Excerpts on “Quality Control” (Quality Control) control techniques & how they
from “The Goal: A Process of Ongoing differ
Improvement” by Eliyahu M. Goldratt
Nature/importance/functions of inventories, Understanding the importance of
inventory costs, inventory ordering policies Stevenson - Chapter 13 inventory, introduction to inventory
(EOQ, EPQ & quantity discount models), (Inventory Management) systems & models including
reorder point, single-period model (continuous perishable goods
20,21,22
& discrete stocking levels), extra reading:
excerpts on “inventory management” from
“the goal: a process of ongoing improvement”
by Eliyahu m. Goldratt
The seven wastes, additional wastes, building Stevenson - Chapter 14 Understanding the objectives of
23 blocks, manufacturing planning & control, (JIT & Lean Operations) JIT, basic requirements & issues in
what is value stream mapping? Lean systems JIT
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Supply chain and logistics, supply chain Understanding scheduling
management, current trends in supply chain Stevenson - Chapter 15 techniques & rules, sequencing
management, outsourcing, global supply (Supply Chain priority rules & benefits
24,25
chains, ethical issues in supply chains, Management)
procurement, supplier management

Presentations of Group Term-Projects or Vivas

26,27,28

Final Exam

TEXTBOOK(S)/SUPPLEMENTARY READINGS
Primary text:
Stevenson, W.J., (2015), Operations Management, 13th Edition, McGraw Hill International Edition
The book is also uploaded onto LMS for students’ convenience.

Good luck!

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