Lecture plan: MBAFT FT-6206/Production and Operations Management (2020-21)

MBA 1st year, 2nd Semester

Instructor: Prof. Debadyuti Das/Dr. Damayanti Datta

Course objectives:
This course is designed to help the students understand the role of operations in improving the
efficiency of an organization including both manufacturing and service one and also help them
appreciate the linkage of operations with corporate strategy and other functional domains
including marketing and finance. It would help them understand the business problems relating
to operations and equip them with the application of appropriate tools and techniques for
addressing the same.

The course is highly intensive which places great demand on students. A major portion of the
sessions would be covered through case discussions for which the cases and or relevant reading
material would be sent/distributed to the students in advance. The students are required to go
through the cases/reading material thoroughly before coming to the class. This is a minimum
pre-requisite for a healthy case discussion. Students with no prior preparation should not attend
the session in order to avoid embarrassment in the class. They would be continuously evaluated
on case discussions and case exercises. Thus a substantial portion of internal assessment is
devoted towards their active involvement in case discussions/case exercises. Those abstaining
from a particular session would lose marks on both case discussion component and also on the
component of attendance.

Contents
• Introduction to Operations Management
• Operations Strategy
• Facilities location
• Strategic capacity planning
• Process and capacity analysis
• Process selection
• Layout strategy
• Inventory management (Deterministic & Probabilistic models)
• Aggregate Production Planning
• Quality Management
• Statistical process control (SPC) and Six Sigma
• Theory of constraints (TOC)
• Just-in-time & Lean manufacturing

Internal assessment scheme

 Components of Evaluation Max marks

Participation in case discussion/exercises 05

Submission of group projects 05

Quiz 1 (Dr. Damayanti) 10

Quiz 2 (Prof. Das) 10

Total 30

Session-wise schedule:
Day 1: Course overview & Key issues of POM D. Das
Session 1 & 2: Brief introduction about the structure of the course, tentative coverage, session
plan and the teaching pedagogy involved. Overview on Production and Operations Management.
Background Reading: Ch.1: OM by Stevenson

Day 2 D. Das
Session 3: Operations Strategy
Case: Cambridge Cooling Systems: Global Operations Strategy (Richard Ivey Case)
Background Reading: Ch. 2 by Mahadevan
Session 4: Operations Strategy: Linking practice with theory
Background Reading: Ch. 2 by Mahadevan
Ch. 2 by Stevenson

Day 3 D. Datta
Session 5: Process and Capacity analysis
Case: Dooly County Doughnuts
Discussion Questions:
1. Calculate the capacities of each step of the doughnut-making process. What is the bottleneck
of the process? What is the overall capacity of the process?
2. How would your answers in question 1 change if the batch size was doubled to 16 lb? You
may assume that the cycle times and setup times of each step do not change due to change in
batch size.
3. If Johnson decides to keep the batch size at 8 lb and instead focus on reducing the setup time
for the extrusion process, by how much time must he reduce the setup time in order to meet his
demand?
4. If Johnson decides to invest in the set of 6 cutters, what set up time would be needed for
Johnson to meet demand with 6 cutters using the standard 8 lb batch?
5. What are your recommendations?

Background Reading: Ch. 2 & Ch. 3 by Cachon & Terwiesch

Ch. 3 & Ch. 5 by Anupindi et al.
Ch. 8 by Mahadevan
Session 6: Theoretical concepts on Process and Capacity analysis

Day 4 D. Datta
Session 7: Process and Capacity analysis: Relevant Numerical Exercises
Background Reading: Ch. 2 & Ch. 3 by Cachon & Terwiesch
Ch. 3 & Ch. 5 by Anupindi et al.
Ch. 8 by Mahadevan
Session 8: Strategic Capacity Planning: Concepts and tools
Background Reading: Ch. 5 by Stevenson

Day 5 D. Das
Session 9: Facilities Location
Case: Electrosteel Castings Ltd. (Richard Ivey Case)
Background Reading: Ch. 8 by Stevenson
Session 10: Facilities location: Relevant tools & exercises
Background Reading: Ch. 8 by Stevenson

Day 6 D. Datta
Session 11: Strategic Capacity Planning
Case: Designing optimal capacity planning strategies (Richard Ivey Case)
Background Reading: Ch. 5 by Stevenson

Session 12: Process Strategy

Brief case: 1. Process strategy at Wheeled Coach
2. Rochester Manufacturing Corporation
Background Reading: Ch. 6 by Stevenson
 Ch. 7 by Heizer and Render

Day 7 D. Datta
Session 13: Layout Strategy
Brief case: Facility layout at Wheeled Coach
Background Reading: Ch. 6 by Stevenson
Ch. 9 by Heizer & Render
Session 14:
Numerical exercises on assembly line balancing & load-distance formulation
Background Reading: Ch. 6 by Stevenson
Ch. 9 by Heizer & Render

Day 8 D. Das
Session 15: Inventory Management (I)
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.
Session 16: Inventory Management (II) Contd.
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.

Day 9 D. Das
Session 17: Contd. Inventory Management (II)
Session 18: Brief cases on Inventory Management
(1) Zhou Bicycle Company
(2) Sturdivant Sound Systems
(3) Inventory control at Wheeled Coach
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.

Day 10 D. Das
Session 19: Exercises on Inventory Management
Background Reading: Ch. 13 by Stevenson
Ch. 20 by Chase et al.
Session 20: Inventory Management: (Single-period Inventory Model)
Background and Concepts
Background Reading: Ch. 11 by Cachon & Terwiesch

Day 11 D Das
Session 21: Inventory Management: Single-period Inventory Model
Numerical exercises
Background Reading: Ch. 11 by Cachon & Terwiesch
Session 22: Case: Macpherson Refrigeration Ltd. (Richard Ivey case)
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.

Day 12 D. Das
Session 23: Numerical exercises on Aggregate Production Planning (APP)
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.
Session 24: Aggregate Production Planning (APP): Theoretical Background
Background Reading: Ch. 11 by Stevenson
Ch. 19 by Chase et al.

Day 13 D. Datta
Session 25: Quality Management
Brief cases: The culture of quality at Arnold Palmer Hospital
Background Reading: Ch. 9 by Stevenson
Session 26: Statistical Process Control (SPC)
Brief cases: Bayfield Mud Company & Alabama Airline’s on-time schedule
Background Reading: Ch. 10 by Stevenson

Day 14 D. Datta
Session 27: Statistical Process Control (SPC)
Tools, techniques and exercises
Background Reading: Ch. 10 by Stevenson
Session 28: Process capability and Six Sigma
Background Reading: Ch. 10 by Stevenson & Ch. 12 by Chase et al.

Day 15 D. Datta
Session 29: Theory of constraints (TOC): Concepts & exercises
Background Reading: Ch. 23 by Chase et al.
Session 30: Just-in-time & Lean manufacturing
Background Reading: Ch. 14 by Stevenson

Text book:
1. Stevenson, W.J., ‘Operations Management’, McGraw Hill, 12th ed., New Delhi, 2018.

Supplemental Readings:
2. Anupindi, R., Chopra, S., Deshmukh, S., Mieghem, J.A.V. and Zemel, E., ‘Managing
Business Process Flows’, Pearson Education, 3rd edition, New Delhi.
3. Cachon, G. and Terwiesch, ‘Matching supply with demand’, McGraw Hill, 2nd ed., New
Delhi, 2013.
4. Chase, Richard B., Shankar, R. and Jacobs Robert F., ‘Operations and Supply Chain
Management’, McGraw Hill, 15th ed., New Delhi, 2018.
5. Heizer, J, Render, B. and Rajashekhar J, ‘Operations Management’, Pearson Education,
11th ed., New Delhi, 2014.
6. Mahadevan, B.,‘Operations Management’, Pearson Education, 3rd edition, New Delhi,
2015.
7. Russell, R.S. and Taylor (III), B.W., ‘Operations and Supply Chain Management’, Wiley,
8th edition, Delhi, 2014.