Business Operations

Credit value: 10 credits

1. Class Purpose

The purpose of this class is to introduce operations management, in service and manufacturing
organisations, as the transformation of system inputs to value-added outputs.

2. Class description/introduction
This class will introduce the methods and techniques used in the practice of Operations Management.
It will begin by describing the organisation as a conversion process. It then goes on to explore how firms
set-up their operations and make them coherent with their overall corporate strategy. Key aspects of
design, planning and control of operations systems will be addressed and an understanding of
operations management in a global context will be established. The theme of this class is to provide a
theoretical framework for thinking about operations in both manufacturing and service contexts and to
describe some practical applications of operations management.

3. Learning outcomes:

(i) Subject specific knowledge and skills including:

• An appreciation of the history of operations management as a subject and the challenges

facing operations managers.
• The ability to develop an Operations strategy and an understanding of its relationship to
business strategy.
• The ability to model organisations using the operational conversion process.
• An appreciation of how operations management integrates with other management functions.
• An appreciation of the different approaches which may be taken in the design of products,
services and processes.
• The ability to apply quality management tools and techniques.
• An appreciation of the importance of supply chain management and how suppliers and
customers work together in an increasingly integrated way.
• The ability to design and implement performance management systems.

(ii) Cognitive abilities and non-subject specific skills including:

• Creativity – ideas generation and problem solving

• Leadership and critical thinking

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 • Group interaction
• Presentation and communication

4. Class Topics:

• Introduction to Business Operations

• Product Design
• Process Design
• Quality Management
• Supply Chain Management
• Operations Strategy

5. Reading List
The required text book is:

• Slack, N. Chambers, S. and Johnston, R. Operations Management, (8th or 9th Edn). Pearsons.

The following chapters are applicable:

Session Slack 8th or 9th edition

Introduction 1, 5
Product Design 4
Process Design 6, 7
Quality Management 17
Supply Chain Management & Operations Strategy 12 ,13
Operations Strategy and Performance Management 2, 3
Other 10, 11, 14, 15, 16

Notes: Chapters 8, 9, 18 and 19 are not part of the course material

The chapter supplements are not part of the course material

Extended Reading

Introduction
• Books:
o Taylor, FW (1911) Principles of Scientific Management.
o Wren, DA & Bedeian, AG (1994) The Evolution of Modern Management.
o Munsterberg, H (1913) Psychology and Industrial Efficiency.
o Ritzer, G (2000) The McDonaldization of Society.
• Journal Articles:
o Voss, C (2007) Learning from the first Operations Management Textbook, Journal of
Operations Management, 25, 239-247.
o Sprague, LG (2007) Evolution of the field of Operations Management, Journal of
Operations Management, 25, 219-238.
o Chase, RB (2007) A history of research in service operations, Journal of Operations
Management, 25, 375-386.

Product Design
• Books:

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 o Nicholas, JM & Steyn, H (2011) Project Management for Engineering, Business and
Technology.
o Gottlieb, MR (2007) The Matrix Organisation Reloaded.
• Journal Articles:
o Hong, P (2005) Role Change of Design Engineers in Product Development, Journal of
Operations Management, 24, 63-79.
o Zomerdijk, L.G. & Vries, J.D. (2007) Structuring front and back office work in service
delivery systems, International Journal of Operations and Production Management, 27,
108-131.

Process Design
• Books:
o Womack, JP Jones, DT & Roos, D (2007) The Machine that Changed the World.
• Journal Articles:
o Schmenner, RW (1986) How Can Service Businesses Survive and Prosper? Sloan
Management Review, 27, 21-32.
o Holweg, M (2007) The Genealogy of Lean Production, Journal of Operations
Management, 25, 420-437.

Quality Management
• Books:
o Evans, JR (2010) Statistics, Data Analysis and Decision Modelling.
o George, ML, Rowlands, D, Price, M & Maxey, J (2005) The Lean Six Sigma Pocket
Tool-book.
• Journal Articles:
o Zu, X, Frendendall, LD & Douglas, TJ (2007) The evolving theory of Quality
Management: The Role of 6 Sigma, Journal of Operations Management, 25, 630-650.
o Beer, M. (2003) Why quality management programs do not persist: the role of top
management quality and implications for leading a TQM transformation, Decision
Sciences, 34, 623-642.

Supply Chain Management

• Books:
o Burt, D, Petcavage, S, & Pinkerton, R (2010) Supply Management.
• Journal Articles:
o Mabert, VA (2007) The Early Road to Material Requirements Planning, Journal of
Operations Management, 25, 246-356.
o Jacobs, FR & Weston, FC (2007) Enterprise Resource Planning: A Brief History,
Journal of Operations Management, 25, 357-363.
o Chen, I.J. & Paulraj, A. (2004) Towards a theory of Supply Chain Management: the
constructs and measurements, Journal of Operations Management, 22, 119-150.

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 o Cousins, P.D. (2005) The alignment of appropriate firm and supply strategies for
competitive advantage, International Journal of Operations and Production
Management, 5, 143-155.

Operations Strategy
• Books:
o Slack, N. & Lewis, M. (2011) Operations Strategy
• Journal Articles:
o Skinner, W. (2007) Manufacturing Strategy: The story of its evolution, Journal of
Operations Management, 25, 328-335.
o Martinez, V. et al. (2010) ‘Challenges in transforming manufacturing organisations into
product-service providers,’ Journal of Manufacturing Technology, 21, 449-469.

Performance Management
• Books:
o Kaplan, RS & Norton, DP (2004) Strategy Maps.
• Journal Articles:
o Bourne, M Neely, A Platts, K & Mills, J (2002) The success and failure of performance
measurement initiatives – perceptions of participating managers, International Journal
of Operations & Production Management, 22, 1288-1310.
o Neely, A.D. (2005) The evolution of performance measurement research:
developments in the last decade and a research agenda for the next, International
Journal of Operations & Production Management, 25, 1264-1277.

Relevant Journals:

• Journal of Operations Management

• International Journal of Operations and Production Management

6. Assessment Instructions

This class is assessed by one individual assignment.

The assignment focuses on practical issues and encourages reading and reflection. Its purpose is to
test your skill in analysing the operations of a business.

I want you to select a company, this maybe a company that you work within or it may be a company
that you are particularly interested in for another reason. The key thing is that you are able to gain
access to information about this company. I want you to carry out an analysis of this company’s
operational performance. In doing this I need you to demonstrate understanding of how this company
works from a practical point of view and also demonstrate understanding of selected models and
theories covered in the class material and how these can be used, where appropriate, to characterise
and analyse the company.

In addition to full adherence to proper academic practice a good assignment will demonstrate:

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 • confident and skilful writing,
• strong analytical ability,
• a strong grasp of the class material
• the ability to select and apply the most appropriate tools and methods from the class material.
• some exploration of the subject (beyond the core class text book),
• deep understanding of the operations and business of the chosen company,

In contrast a poor assignment would:

• be difficult to read and interpret,

• contain only a descriptive account of the company,
• rely only on the basic material covered in the class,
• demonstrate poor judgement in the use of tools and methodologies from the class,
• demonstrate no further reading beyond the class material.

This is a very broad assignment brief that provides you the scope to approach this in a number of ways.
The key thing is that you demonstrate the ability to investigate a company, analyse its operations
through application of tools and methodologies and communicate the results in a clear and concise
way.

Requirements:

• Word count: 1800 - 2000 (not including diagrams, tables, references or appendices)
• Executive summary/abstract is not required
• Referenced in the Harvard style

Note - there are a number of ways to structure your report the key point is that you structure it in a way
that tells the ‘story’ in the clearest way possible. The only requirements are that you include both an
introduction and a conclusion.

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 Assignment Marking Guide
Excellent Very good Good Acceptable Marginal Unacceptable
>75% 65-74% 55-64% 50-54% 40-49% <40%
Structure
Logical structure and relevant Coherent and sensible structure. An acceptable structure and Evidence of structure and Difficult to identify a coherent No clear structure or narrative.
And discussion, and absence of Clear and balanced view of the organisation. Discussion that organisation but not entirely structure and organisation.
Organisation repetition. Clear and balanced issues. Relevant and non- covers the primary issues. Some appropriate or not sufficiently Irrelevant and repetitious
view of issues. repetitious discussion. limited weaknesses in relation to maintained. Evidence of discussion.
coherence, focus, relevance or repetitious and irrelevant material,
repetitious. and weaknesses of judgement in
the emphasis given to
issues/arguments.

Expression &
Very clear exposition, with Clearly expressed with some Clearly expressed and easy to Adequately expressed for the Some clarity. Grammatical faults Lack of clarity. Poor choice of
presentation excellent use of examples and evidence of an attempt to write in read and understand. most part but poses some evident. words and sentence structure.
analogies. Good choices of a lively and interesting style. difficulties for understanding. Difficult to follow and understand.
words/phrases.

Knowledge and
Demonstrates an excellent Demonstrates a very good Demonstrates good appreciation Demonstrates a limited Demonstrates some awareness Demonstrates inadequate
source material appreciation of the relevant class appreciation of the relevant class and understanding of the relevant awareness and understanding of and understanding of the relevant understanding of relevant class
material. material. class material. the relevant class material. class material. material.
Knowledge extends beyond the A firm grasp of the recommended Minimal evidence of further study. Minimal or no evidence of further Demonstrates no evidence of
core material. Demonstrates readings, evidence of some reading. further reading.
initiative and curiosity. Able to further reading of relevant articles,
place the academic literature into and to refer to them as appropriate
context. in the discussion

Analysis
Demonstrates an excellent Demonstrates a good Demonstrates a reasonable A reasonable working knowledge Some awareness of the concepts A weak and limited awareness of
understanding of the relevant understanding of the relevant understanding of the relevant of the relevant concepts and and models and errors suggesting the concepts and models and
concepts and models, and the concepts and models, and an concepts and models, and some models but presentation is limited incomplete understanding. errors suggesting incomplete
ability to develop and present the appreciation of the strengths and evidence the ability to assess the or indicative that understanding is understanding.
analysis in a logical and coherent weakness of the analysis. analysis. incomplete.
way. Exhibits clarity of thought
and an appreciation of the
strengths/weaknesses of the
analysis.

Conclusion Conclusion that provides a clear Conclusion that reflects and is Conclusion provides a reasonable Demonstrates some ability to Some evidence of a coherent Fails to produce either an
overall perspective; reflecting the logically derived from the summary of arguments and a draw inferences from discussion. summary and some attempt made adequate summary of the
And preceding discussion, an ability to discussion. Demonstrates ability statement that sensibly Limited or incomplete summary. to draw conclusions. discussion or to develop any
Overall differentiate between theory, to differentiate between objective differentiates between personal coherent inferences from the
evidence and judgement. analysis and personal opinion. views and objective evidence. discussion.
Perspective Evidence of independent thought.

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