Course Syllabus of ISOM 2700 Operations Management

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1 Course Syllabus of ISOM 2700 Operations Management Fall 2017 CLASS SCHEDULE INSTRUCTOR TEACHING ASSISTANT L6: Monday, 15:00-16:20 and Friday 10:30-11:50, Room 4620 L7: Monday, 13:30-14:50 and Friday 09:00-10:20, Room 4620 L8: Monday, 16:30-17:50 and Friday 12:00-13:20, Room 4620 Prof. Xuan Wang Office: LSK 4079 Phone: Office hours: Wednesday 5 p.m. 6 p.m. and by appointment xuanwang@ust.hk Ms. Jing Jia Office: LSK 4065 Phone: Office hours: Thursday 2 p.m. 3 p.m. and by appointment imjing@ust.hk COURSE MATERIALS Lecture notes will be distributed in class, and an electronic version will also be posted on Canvas after each session. All the materials and topics covered in the lecture notes are required for the exams. There is NO required textbook for this course. The following book is optional for your reference: Jacobs and Chase, Operations and Supply Chain Management: The Core, 4th Edition, International Edition, McGraw-Hill. 1

2 GRADING SCHEME Class participation and In-class Quizzes 15% Homework 15% Midterm Exam 30% Comprehensive Final Exam 40% Total 100% Note: (1) No makeup exam will be given. If you miss the midterm exam for a valid and verifiable reason that is approved by the instructor in advance, the weight of the mid-term will be added to the final exam. Otherwise, a zero mark will be assigned as your mid-term grade. This policy also applies to quizzes and homework. (2) Both exams are closed book and closed notes. However, you can bring a 2- page A4 size formula sheet. (3) Re-grading Policy: The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor s grading system and are discouraged from pursuing arbitrary challenges to it. If you believe an inadvertent error has been made in the grading of individual assignments or exams, a request to have the grade reevaluated may be submitted. In the event that you would like to request a re-grade: the TA and me within 3 days of receiving your grade, including a brief written statement of why you believe that an error in grading has been made. Late requests will not be entertained. I will re-grade your assessment/examination in its entirety. That is, I will re-grade all the items in your assessment/examination. Please note that your grade for this assignment/exam may not necessarily be higher after regrading. ACADEMIC INTEGRITY Students at HKUST are expected to observe the Academic Honor Code at all times (see for more information). Zero tolerance is shown to those who are caught cheating on any quiz or exam. In addition to 2

3 receiving a zero mark on the quiz or exam involved, the final course grade will appear on your record with an X, to show that the grade resulted from cheating. This X grade will stay with your record until graduation. If you receive another X grade, you will be dismissed from HKUST. COURSE OVERVIEW & OBJECTIVE 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. 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). Unlike many courses in the core, which tend to treat the firm as a "black box", we will be primarily concerned with "opening up" the black box and discovering what makes a firm "tick" --- or, for that matter, "stop ticking". In contrast to your management courses, our focus is on the technological rather than human dimension of a firm's internal operations. In contrast to the measurement focus of your accounting courses, our concern is to understand what elements of a firm's operations enable it to produce quality outputs at a competitive cost structure. That is, we will focus on how the "physics" of material, work and information flows and the design and management of a firm's processes interact to determine a firm's cost structure and its ability to compete effectively in terms of non-cost measures such as quality, variety and speed. 3

4 TEACHING APPROACH The general teaching approach is lecturing, case discussions, as well as problem solving and demonstrations in the classroom. Lecture notes, additional reading articles, and learning resources are posted on Canvas. For many topics, we will 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 and discuss managerial insights based on the analysis. ATTENDANCE & CLASSROOM ETIQUETTE Your attendance is expected for every class session. Please notify the professor 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, , reading the newspaper, etc. during class. 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. COURSE OUTLINE 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. Process and Resource: Process analysis and its applications; Monitoring a Process using Control Charts and Quality Management; Optimizing resource allocation and resource portfolio. 2. Service System: Coping with variability of service system; Queueing Models and Service System Design; Simulating service systems. 3. Matching Supply with Demand: Forecasting; EOQ Model; Newsvendor model; Inventory Management; Revenue management. 4. Supply Chain: Supply chain distortion and Beer Game; Achieving strategic fit; Supply Chain Coordination via risk sharing contracts; Sales and Operations Planning. 4

5 Course Schedule (Subject to minor change) Module Topics Dates Laptop Process and Resource Service System Matching supply with demand supply chain Introduction to Operations Management Sep 1 No Process Analysis Sep 4 No Application of Process Analysis: The Goal Sep 8 No Monitoring a Process using Control Charts Sep 11 No Quality Management Sep 15 No Resource Allocation Decisions (I): Decision Tree Sep 18 No Resource Allocation Decisions (II): Linear Programming (LP) Sep 22 No LP Solver and Sensitivity Analysis Sep 25 Yes Coping with Variability of Service System Sep 29 Yes Queueing Models Oct 6 Yes Service System Design Oct 9 Yes Simulating Service Systems Oct 13 Yes Midterm Exam Review Oct 16 No Midterm Exam TBD No Forecasting Oct 20 No EOQ Model Oct 23 No Newsvendor Model Oct 27 No Inventory Management: Service level and Safety stock Case Study: Hewlett-Packard Company Supply Chain Nov 3 Yes Revenue Management Nov 6 No Supply Chain Management: Introduction Nov 10 No Beer Game Nov 13 Yes Beer Game Debrief Supply Chain Strategies: Achieving strategic fit Nov 17 Coordinating Supply Chain: Risk Sharing Contracts Nov 20 Yes Sales and Operations Planning Nov 24 Yes Final Exam Review Nov 27 No Final Exam TBD No No 5