MANAGEMT 7031 - Services and Operations Management

North Terrace Campus - Trimester 1 - 2014

Services and Operations Management addresses the design and management of effective and efficient systems for proper conveyance of services. In today's world of global competition and shrinking margins, the place and importance of successful service operations cannot be over-emphasized. Customers expect and demand, among other things, timely and correct deliveries, reliable logistical information, competitive prices, quick response to service calls, as well as friendly and collaborative behaviour, be it in the B2B and/or the B2C context. However, unlike manufacturing, services require a "co-production" activity to take place through the involvement of both the customer and the service-provider in a significant part of (and often throughout) the "realization" of any service. Whilst customer involvement in manufacturing is quite limited, it is often the opposite in services. Furthermore, services are not transferable, cannot be stored, and service operations have perishable capacity, to mention a few salient characteristics to keep in mind in designing service systems. Hence, service systems should be designed with careful consideration given to such unique characteristics that services have, also observing that, in services, quality, economy, satisfaction, and their interactions are heavily "people-centric" and subjective factors, posing particular difficulties in managing service systems, and identifying and/or measuring the effectiveness and efficiencies of service operations. This course provides a careful study of service operations from the point of view of designing and managing a system that is efficient and effective in the "realization" of the service deemed by its customer. In this connection, behavioural/psychological, quantitative, physical, physiological, technological, as well as evolutionary perspectives will be explored towards developing a clear understanding of service operations, and service systems, and how to improve them, and/or to build them better.

  • General Course Information
    Course Details
    Course Code MANAGEMT 7031
    Course Services and Operations Management
    Coordinating Unit Business School
    Term Trimester 1
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Prerequisites MANAGEMT 7086 & MANAGEMT 7100
    Course Description Services and Operations Management addresses the design and management of effective and efficient systems for proper conveyance of services. In today's world of global competition and shrinking margins, the place and importance of successful service operations cannot be over-emphasized. Customers expect and demand, among other things, timely and correct deliveries, reliable logistical information, competitive prices, quick response to service calls, as well as friendly and collaborative behaviour, be it in the B2B and/or the B2C context. However, unlike manufacturing, services require a "co-production" activity to take place through the involvement of both the customer and the service-provider in a significant part of (and often throughout) the "realization" of any service. Whilst customer involvement in manufacturing is quite limited, it is often the opposite in services. Furthermore, services are not transferable, cannot be stored, and service operations have perishable capacity, to mention a few salient characteristics to keep in mind in designing service systems. Hence, service systems should be designed with careful consideration given to such unique characteristics that services have, also observing that, in services, quality, economy, satisfaction, and their interactions are heavily "people-centric" and subjective factors, posing particular difficulties in managing service systems, and identifying and/or measuring the effectiveness and efficiencies of service operations. This course provides a careful study of service operations from the point of view of designing and managing a system that is efficient and effective in the "realization" of the service deemed by its customer. In this connection, behavioural/psychological, quantitative, physical, physiological, technological, as well as evolutionary perspectives will be explored towards developing a clear understanding of service operations, and service systems, and how to improve them, and/or to build them better.
    Course Staff

    Course Coordinator: Mr Max Zornada

    Max Zornada B.E. (Mech), Hons. M.B.A.

    Max is a Management Educator and Consultant with extensive experience teaching MBA, Executive Education (since 1993) and Management Development Seminars and as a hands-on practitioner, consulting to major corporations on issues related to the achievement of Operational Excellence, throughout Australia, the US, Middle East, UK, Western Europe and Asia.

    Max Zornada is an Adjunct Lecturer in the University of Adelaide Business School where he currently teaches the Operations Management and Business Performance Improvement in the MBA Program.  He has also taught Quality Management, E-Business, Project Management and Managing Innovation and Technology, and Statistical and Quantitative Analysis Subjects. He also delivers the Yellow Belt Advanced modules in the Professional Management Program and the Lean Six Sigma Yellow Belt Advanced, Green Belt and Black Belt Public Programs.

    He has presented the TQM and Data Analysis and Statistical Business Modelling subjects in the Australian Graduate School of Management's (AGSM), University of New South Wales, Executive MBA. Max was a Visiting Professor in the MBA program at the Consorzio MIP at the Politecnico di Milano in Milan early in 1998, where he taught Business Process Reengineering.

    Max is also the Director of the Australian based Management Consulting and Education firm Henley Management Group. In this capacity he has presented many in-house Executive Programs for major corporations on Operational Excellence related topics such as Six Sigma, Lean Thinking, Lean Six Sigma, The Balanced Scorecard, Business Process Improvement, Project Management, Work Management both throughout Australia and internationally in Asia, the US, UK, Italy and the Middle East.

    Prior to founding HMG, Max spent several years with the London based international management and technology consultancy PA Consulting Group, after holding various managerial and professional engineering positions in the chemicals processing and petrochemicals industry with Adelaide and Wallaroo Fertilisers, ICI and Santos.

    From his base in Adelaide, South Australia, Max maintains an active local, Australian and International consulting and Management Education practice, with a focus on capital intensive (petrochemical, energy and chemicals) businesses, and back-office operations in financial services and services organisations. In recent years, a major focus of his consulting activity has been Lean Six Sigma and Process Improvement implementation in Aerospace, Mining and Insurance industry contexts.

     

    Max Zornada may be contacted at

    The University of Adelaide Business School

    Level 10 10 Pultney Street, Adelaide, 5005, South Australia.

    Tel: +61 8 8303 5525/ Fax: +61 8 8223 4782.

    Email: max.zornada@adelaide.edu.au

    Office Location: Room 10.44, 10 Pulteney Street

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Session

    Date

    What’s planned:

    1

    Feb 06

    Topic 1: Introduction to Operations Management

    Topic 2: Operations Strategy

    ·         Process Type and Process Operation

     

    2

    Feb 13

    Topic 3: Operations Strategy (continued)

    ·         Organisation and Control

    • Linking Operations Strategy to Competitive Advantage

    Topic 4: Operations Strategy Implementation

    •  

    3

    Feb 20

    Topic 4: Operations Strategy Implementation

    ·         Facility Location, Job Design

    ·         Process Design & Facility Layout

    4

    Feb 27

    Topic  5: Service Operations Strategy

    ·         Case Study: Benihana of Tokyo

    Topic 6: Strategic Operations Planning

    ·         Capacity Management

    5

    Mar 06

    Topic 7: Managing Manufacturing Systems

    ·         Inventory Management (Independent Demand Inventory)

    ·         Dependent Demand Inventory Management (MRP and MRPII)

    6

    Mar 13

     

    Topic 7: Managing Manufacturing Systems (Continued)

    ·         Dependent Demand Inventory Management (MRP and MRPII)

    ·         Case Study: The DEC End Point Model (A)

    Topic 8: Operations Scheduling

    7

    Mar 20

    Topic 9: Lean and the Toyota Production System

    ·         Case Study: Toyota Motor Manufacturing USA, Inc.

    8

    Mar 27

    Topic 10: Managing Quality

    ·         Acceptance Testing

    ·         Statistical Process Control

    ·         Total Quality Management and Six Sigma

    ·         Quality Systems/ISO 9000

    9

    April 3

    Topic 11: Supply Chain Management

    ·         Procurement

    ·         Logistic and Distribution

    ·         Simulation:The Beer Game

    10

    April 10

    Topic 12: Managing Service Operations

    Transaction Based Services Work Flow Management

    11

    April 17

    Topic 13: Operations Improvement

    12

    April 24

    Group presentations

     

  • Learning Outcomes
    Course Learning Outcomes
     The objectives of this subject are to provide students with:
    1. An overview of Service and Operations Management as management function in general.
    2. An understanding of the impact Operational Capability has on decision making and options in Business Strategy and the linkage to Operations Strategy.
    3. An understanding of the different types of operations process types on which operational capability can be based and the strategic implications of the process choice decision.
    4. An understanding of the relationship between Business Strategy, Operations Strategy, Process Type, Organisation and Control structures the impacts these have on managerial decision making and choices.
    5. An understanding of the key operations strategy factors addressed in points 2-4 specifically applied to Service Operations.
    6. Knowledge and understanding of the key operational levers that can be applied to the management of service operations and the proactive management of customer experience.
    7. Knowledge and understanding of how an operations strategy is implemented, including facility location, process design and process layout decisions.
    8. Knowledge and skills in the application of key operations strategy implementation tools and techniques including work and time analysis, development of standard times, development of process layout and assembly line balancing.
    9. An appreciation of the role of strategic operations planning and skill in constructing and optimising a strategic operations plan.
    10. An appreciation of the key inventory and materials management techniques applied in operations including independent demand methods (EOQ) and dependent demand methods (MPR, MRP II and ERP);
    11. An appreciation of the role of IT systems such as MRP II and ERP in operations.
    12. Knowledge and skills required to determine and optimal inventory management policy.
    13. Knowledge and skills in the application of key operations scheduling methods to various types of processes.
    14. An understanding of Lean Thinking, concepts, tools and techniques including Toyota Production System concepts/Just in Time manufacturing.
    15. Knowledge and understanding of the application of strategic and value based approaches to procurement.
    16. Knowledge and understanding of key issues pertaining to Supply Chain Management, including the “Bull Whip Effect”
    17. Knowledge and understanding of key concepts, tools and techniques pertaining to the management of transaction based service processes.
    18. Knowledge, understanding and skills in the development of an Acceptance Sampling based Quality Control strategy.
    19. An overview and appreciation of statistical process control.
    20. An overview and appreciation of approaches to improving business performance through operations.

    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. Objectives 1-20
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. Objectives 4, 5, 6, 8, 9, 10,11, 12, 13, 16, 17
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. Objectives 4, 5, 6, 8, 9, 10,11, 12, 13, 16, 17, 20
    Skills of a high order in interpersonal understanding, teamwork and communication. Objectives 4, 5, 6, 8, 12, 13, 17, 18
    A proficiency in the appropriate use of contemporary technologies. Objectives 1-20
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. Objectives 1-5, 7, 8, 10,11,14, 16, 17, 20
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. Objectives 1-5, 7, 8, 10,11,14, 16, 17, 20
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. Objectives 1-7, 16, 17, 20
  • Learning Resources
    Required Resources

            The text for this course is:

     Slack, Nigel., Chambers, Stuart., Johnston, Robert and Betts, Alan., Operations and Process Management, Principles and Practices for Strategic Impact, 2nd Edition, FT Prentice Hall, 2009. (or later edition if available)

    Optional additional supplementary reading:

    Goldratt, Eliyahu M. and Cox, Jeff. The Goal, Gower, (latest available edition)

     

    Recommended Resources
    Not applicable.
    Online Learning

    Powerpoint slides and additional resources in the form of spreadsheet models, additional readings and worksheets in support of the lecture session activities during the intensive sessions will be made available for download in softcopy from myUni.

  • Learning & Teaching Activities
    Learning & Teaching Modes

     

    Operations Management is offered as a 2 x 3 day intensive program and use a mix of learning methods.

    Participants will be introduced to certain concepts, techniques or issues through formal lecture presentations. It is expected that lecture presentations will be interwoven with questions, comments and discussion initiated by participants.

    Management games/simulations, group work, individual work, case studies and presentations will be used to provide opportunities to reinforce concepts and practice techniques or skills.

    Two theory assignments and a practical “real world” application project will be used to reinforce the learnings in this subject.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students should allocate approximately eight hours per week of study time to do appropriate readings, project work and assignments in addition to attendance at scheduled lecture sessions.

    Learning Activities Summary

    Topic 1

     

    Topic : Introduction to Operations Management

    Textbook: Chapter 1: Operations and Processes

    Readings: Zornada, M.A. (2003), Operations Management Topic Note, “Introduction to Operations Management”.

    Topic 2

     

    Topic : Operations Strategy - Process Type and Process Operation

    Textbook: Chapter 4: Process Design 1 - Positioning

    Readings: Zornada, M.A. (2003), Operations Management Topic Note, “Operations Strategy”.

    Hayes, Robert H. & Wheelright, Steven G.(1979) The Dynamics of Product-Process Lifecycles HBR Reprint No. 79201

    Case Studies:  Matthews Yachts, Inc and STE Electronics,  reproduced from Schmenner, Roger W. (1993), Production and Operations Management, MacMillan.

    Topic 3

     

    Topic : Operations Strategy - Organisation and Control, Linking Operations Strategy to Competitive Advantage

    Textbook: Chapter 4: Process Design 1 – Positioning and Chapter 2: Operations Strategy

    Topic 4

     

    Topic : Operations Strategy Implementation

    Textbook: Chapter 3: Supply Network Design

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Operations Strategy Implementation”.

    Textbook: Chapter 5: Process Design 2 – Analysis

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Workforce Management”.

    Topic: Operations Strategy Implementation – Facility Layout

    Textbook: Chapter 5: Process Design 2 – Analysis

    Topic 5

     

    Topic: Service Operations Strategy

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Service Operations Strategy”.

    Product Design and Process Selection - Services  - from Chase, Richards B., Jacobs, Robert F. and Aquilano, Nicholas J. (2004) Operations Management for Competitive Advantage. Irwin, McGraw-Hill

    Retail Space Layout  - from Chase, Richards B., Jacobs, Robert F. and Aquilano, Nicholas J. (2004), Operations Management for Competitive Advantage. Irwin, McGraw-Hill

    Case Study: Benihana of Tokyo

     

    Topic 6

    2nd Intensive, Day 1

    1:00pm - 2:15pm

     

    Topic: Strategic Operations Planning

    Textbook: Chapter 8: Capacity Management

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Strategic Operations Planning”.

    Topic 7

     

    Topic : Managing Manufacturing Systems - Inventory Management (Independent Demand Inventory)

    Textbook: Chapter 9: Inventory Management

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Inventory Management”.

    Topics : Managing Manufacturing Systems - Dependent Demand Inventory Management (MRP and MRPII) and Scheduling and Work Control

    Textbook: Chapter 10: Supplement to Chapter 10: Materials Requirements Planning (MRP) – read this first

    Chapter 10: Resource Planning and Control

    Topic 8

     

     

    Operations Scheduling

    Reading: Zornada, M.A. (2003), Operations Management Topic Note, “Scheduling Operations”.

    Topic 9

     

    Topic: Managing Manufacturing Systems - Just in Time and Lean Production Systems

    Textbook: Chapter 11: Lean Synchronisation

    Spear, Steven and Bowen, Kent H (1999) “Decoding the DNA of the Toyota Production System”, Harvard Business Review, Sept-Oct 1999.

    Case Study: Toyota Motor Manufacturing USA, Inc.

    Topic 10

     

    Topic : Managing Quality -  Acceptance Testing & Statistical Process Control

    Textbook: Chapter 12: Quality Management

    Supplement to Chapter 12 : Statistical Process Control

    Readings: Zornada, M.A. (2003), Operations Management Topic Note, Quality Control”.

    Topic 11

     

    Topic: Supply Chain Management – Elements:  Procurement

    Textbook: Chapter 7: Supply Chain Management

    Readings: Zornada, M.A. (2003), Operations Management Topic Note, “Supply Chain Management, Miscellaneous Topics”.

    Topic 11

     

    Topic: Supply Chain Management

    Simulation: The Beer Game

    Readings:

    Lee, Hau L., Padmanabhan, V. & Whang, Suengjin., (1997) “The Bullwhip Effect in Supply Chains”, Sloan Management Review, No.3, Vol 38, reprint SMR029.Topic : Supply Chain Management

    Readings: Fisher, Marshall L., Hammond, Janice H., Obermeyer, Walter R., Raman, Ananth (1994) Making Supply Meet Demand in an Uncertain World, HBR Article Reprint 94302.

    Topic 12

     

     

    Topic 13

     

    Topic : Managing Service Operations

    Reading: Swank, Cynthia Karen (2003) " The Lean Service Machine", Harvard Business Review, October 2003. Reprint R0310J.

    Topic: Operations Improvement

    Reading: Kaufman, Robert S. (1992) “Why Operations Improvement Programs Fail: Four Managerial Contradictions, Sloan Management Review, Fall 1992, pages 83-92.

    Specific Course Requirements
    Not applicable.
    Small Group Discovery Experience
    Not applicable.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
                Two Individual assignments (30% each)              60%

    Group Project                                                       15%

    Group Project Presentation                                  15%

    Participation                                                          10%

    Individual Assignment

    Two individual assignments will be distributed during the lectures.

    Assignment 1 will be distributed during lecture session 2 and is due at lecture session 4. Word limit is 2,500 words.

    Assignment 2 will be distributed during the week 7 lecture and will be due in at the week 9 lecture. Word limit is 2,500 words.

    Group Project

    A team based field report on how some selected organisation has approached a particular operations management problem or issue, how they apply a particular or various operations management principles to their specific operational environment eg. Supply Chain Management, Operations Scheduling, Quality Management etc. will be required to be submitted by the final intensive session.

    This will ideally be based on a “live” company example that students have access to or alternately, could be research based. Eg. consider a well known company where there is a lot of information available in the public domain. The report should attempt to provide a critical assessment based on concepts and principles learning during the subject and make recommendations for improvement.

    Each group should submit a brief (half a page at the most) write up of what they propose to do for the group project component by the end of week 2. The final group report is due in at the final lecture session. Word limit 2,500 words.

    Group Presentation

    Teams will be required to prepare a 20 minute presentation on their project to be delivered during the final scheduled lecture session. All members of the team will be required to present. Time keeping will be strictly enforced.

     

    In addition to achieving a course mark of at least 50%, students need to attain an average of fifty percent (50%) across all the individually assessed items, considered as a whole, in order to pass the course.

     

    For information on the University’s Assessment for Coursework Programs Policy refer to:

    www.adelaide.edu.au/policies/700/

     

     

    Assessment Related Requirements

    Presentation of Assignments

    · Please be sure to retain a copy for yourself of all assignments submitted.

    · Please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission.

    · All group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment.

    · Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

    Assignment Guidelines including Referencing Details

    A copy of the Postgraduate Programs: Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. A copy of the guide can also be downloaded from http://www.business.adelaide.edu.au/current/mba/download/2009MBACommSkillsGuide.pdf

    This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc.

    In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)

    The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide.

    Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

    Late Assignment Submission

    Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course no less than 36 hours before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.

    Return of Assignments

    Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from either their tutorials or lectures. If assignments aren’t collected after two (2) weeks, the assignments will be available at the Student Hub for two (2) weeks. The remaining assignments will only be posted out to the students, if the correct mailing addresses are on the assignments.

    Assessment Detail

    No information currently available.

    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.