MANAGEMT 7031PT - Services and Operations Management

North Terrace Campus - Trimester 2 - 2015

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 7031PT
    Course Services and Operations Management
    Coordinating Unit Business School
    Term Trimester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    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 also presented in MBA programs for the University of New South Wales, Southern Cross University and Politecnico di Milano.

    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 9 10 Pultney Street, Adelaide, 5005, South Australia.

    Tel: +61 8 8313 5525/ Fax: +61 8 8223 4782.

    Email: max.zornada@adelaide.edu.au

    Office Location: Room 9.20 10 Pulteney Street

    Course Timetable

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

    1st Intensive

    Day 1:
    Friday 29th May 
    9:00am - 10:15am

    Introduction to Service and Operations Management
    Day 1:
    Friday 29th May 
    10:30am - 12:00noon

    Operations Strategy
    Process Type and Process Operation
    Day 1:
    Friday 29th May 
    1:00pm-2:15pm

    Operations Strategy
    Organisation and Control Linking Operations Strategy to Competitive Advantage
    Day 1:
    Friday 29th May 
    2:30pm-3:30pm

    Operations Strategy
    Organisation and Control Linking Operations Strategy to Competitive Advantage (Continued)
    Day 2:
    Saturday 30th May 
    9:00am - 10:30am

    Operations Strategy Implementation : Facility Location

    Day 2:
    Saturday 30th May 
    10:45am - 12:00noon

    Operations Strategy Implementation : Job Design, Process Design
    Day 2:
    Saturday 30th May 
    1:00-2:15pm

    Operations Strategy Implementation : Job Design, Process Design (continued).
    Day 2:
    Saturday 30th May 
    2:30-3:00pm

    Operations Strategy Implementation : Job Design, Process Design (continued).

    2nd Intensive

    Day 1:
    Friday 24th July
    9:00am - 10:30am

    Students must read and prepare the case study Benihana of Tokyo before thisclass session.
    Service Operations Strategy
    Day 1:
    Friday 24th July 
    10:45am - 12:00noon

    Service Operations Strategy (continued)
    Day 1:
    Friday 24th July 
    1:00pm - 2:15pm

    Strategic Operations Planning
    Day 1:
    Friday 24th July 
    2:30pm-3:30pm

    Managing Manufacturing Systems
    Inventory Management (Independent Demand Inventory)
    Day 2:
    Saturday 25th July 
    9:00am-10:30am

    Managing Manufacturing Systems
    Dependent Demand Inventory Management (MRP and MRPII)
    Day 2:
    Saturday 25th July 
    10:45am-12:00noon

    Managing Manufacturing Systems
    Enterprise Resource Planning Systems (ERP)
    Operations Scheduling
    Day 2:
    Saturday 25th July
    1:00pm-2:15pm

    Just in Time and Lean Production Systems The Toyota Production System
    Students must read and prepare the case study Toyota Motor Manufacturing USA, Inc.before this class session
    Day 2:
    Saturday 25th July 
    2:30pm-3:30pm

    Just in Time and Lean Production Systems The Toyota Production System (continued)

    3rd Intensive

    Day 1:
    Friday 7th August
    9:00am-10:30am

    Managing Quality
    Acceptance Testing
    Statistical Process Control
    Day 1:
    Friday 7th August
    10:45am-12:00noon

    Supply Chain Management : Focus on Procurement
    Day 1:
    Friday 7th August
    1:00pm-2:15pm

    Supply Chain Management: Focus on Supply Chain
    Simulation: The Beer Game
    Day 1:
    Friday 7th August
    2:15pm-3:30pm

    Supply Chain Management: Focus on Supply Chain
    Simulation: The Beer Game
    Day 2:
    Saturday 8th August
    9:00am-10:30am

    Managing Service Operations
    Transaction Based Services Work Flow Management
    Day 2:
    Saturday 8th August
    10:45am- 12:00noon

    Operations Improvement
    Conclusion
    Day 2:
    Saturday 8th August
    1:00 pm onwards

    Group Project 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

            There will be no prescribed text for this course. A comprehensive student manual will be provided, supplemented by relevant handouts and the lecturer's powerpoint slides.

    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
    To ensure the concepts introduced during this course are understood, they will be reinforced through a mix of learning methods,
    including lecture style presentation, open class discussion and case study analysis, simulations and group work.



    Workload

    No information currently available.

    Learning Activities Summary

    Topic 1 - 1st Intensive 
    Day 1: 9:00- 10:15am
    Topic : Introduction to Operations Management
    Readings: Zornada, M.A., Operations Management Topic Note, “Introduction to Operations Management”.

    Topic 2 - 1st Intensive 
    Day 1:  10:30am- 12:00nn
    Topic : Operations Strategy - Process Type and Process Operation
    Readings: Zornada, M.A., 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 - 1st Intensive
    Day 1: 1:00pm-3:30pm
    Topic : Operations Strategy - Organisation and Control, Linking Operations Strategy to Competitive Advantage

    Topic 4  - 1st Intensive
    Day 2: 9:00am-10:15am
    Topic : Operations Strategy Implementation
    Reading: Zornada, M.A. Operations Management Topic Note, “Operations Strategy Implementation”.

    Topic 4 - 1st Intensive
    Day 2: 10:45am - 12:00noon
    Topic: Operations Strategy Implementation - Job Design, Process Design Reading: Zornada, M.A., Operations Management Topic Note, “Workforce Management”.

    Topic 4 - 1st Intensive
    Day 2: 1:00pm – 3:30pm
    Topic: Operations Strategy Implementation – Facility Layout Reading: Zornada, M.A., Operations Management Topic Note, “Operations Strategy Implementation”.
    Chase, Richards B., Jacobs, Robert F. and Aquilano, Nicholas J. (2004) “Retail Space Layout” from Operations Management for Competitive Advantage, pages 203-206 (included in course manual).

    Topic 5 - 2nd Intensive
    Day 1: 9:00-10:15am
    Topic: Service Operations Strategy
    Reading: Zornada, M.A. , Operations Management Topic Note, “Service Operations Strategy”.
    Chase, Richards B., Jacobs, Robert F. and Aquilano, Nicholas J. (2004) “Chapter 6: Product Design and Process Selection for Services” from Operations Management for Competitive Advantage, pages 218-238 (included in course manual).
    Case Study: Benihana of Tokyo

    Topic 5 - 2nd Intensive
    Day 1: 10:45am - 12:00noon
    Topic : Service Operations Strategy Readings "Same as above."

    Topic 6 - 2nd Intensive
    Day 1: 1:00pm - 2:15pm 
    Topic: Strategic Operations Planning
    Reading: Zornada, M.A., Operations Management Topic Note, “Strategic Operations Planning”.

    Topic 7 - 2nd Intensive
    Day 1: 2:30pm - 3:30pm
    Topic : Managing Manufacturing Systems - Inventory Management (Independent Demand Inventory) Reading: Zornada, M.A., Operations Management Topic Note, “Inventory Management”.

    Topic 7 - 2nd Intensive
    Day 2: 9:00am-10:15am
    Topics : Managing Manufacturing Systems - Dependent Demand Inventory Management (MRP and MRPII) and Scheduling and Work Control
    Reading: Zornada, M.A., Operations Management Topic Note, “Inventory Management”.

    Topic 8 - 2nd Intensive
    Day 2: 10:30am-12:00noon
    Operations Scheduling
    Reading: Zornada, M.A., Operations Management Topic Note, “Scheduling Operations”.

    Topic 9 - 2nd Intensive
    Day 2: 1:00pm-3:30pm 
    Topic: Managing Manufacturing Systems - Just in Time and Lean Production Systems
    Readings: 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 - 3rd Intensive
    Day 1: 9:00am-10:15am
    Topic : Managing Quality - Acceptance Testing & Statistical Process Control
    Readings: Zornada, M.A., Operations Management Topic Note, Quality Control”.

    Topic 11 - 3rd Intensive
    Day 1: 10:30am-12:00noon
    Topic: Supply Chain Management – Elements: Procurement
    Readings: Zornada, M.A., Operations Management Topic Note, “Supply Chain Management, Miscellaneous Topics”.
    Purchasing Management, ICMA - MIS Report, October 1988, Vol20/No10.(included in student manual)

    Topic 11- 3rd Intensive
    Day 1: 1:00pm-3:30pm
    Topic: Supply Chain Management Simulation: The Beer Game
    Readings: Stuart, Ian F. & McCutcheon, David M. (2004) The Manager's Guide to Supply Chain Management, Business Horizons BH044. Lee, Hau L., Padmanabhan, V. & Whang, Suengjin., (1997) “The Bullwhip Effect in Supply Chains”, Sloan Management Review, No.3, Vol 38, reprint SMR029.

    Topic 12 - 3rd Intensive
    Day 2: 9:00am-11:00am
    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.
    Fisher, l. Marshall (1997) “ What is the Right Supply Chain for Your Product”, Harvard Business Review, March-April 1997, reprint 97205

    Topic 13 - 3rd Intensive
    Day 2: 11:00am-12:00noon
    Topic : Managing Service Operations
    Readings: Swank, Cynthia Karen (2003) " The Lean Service Machine", Harvard Business Review, October 2003. Reprint R0310J.
    Staats, Bradley R. and Upton, David M. (2011) “Lean Knowledge Work”, Harvard Business Review, October 2011, Reprint R111OG
    Case Study: Smiths Auto Service – Part 2

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


    3rd Intensive
    Day 2 Afternoon
    Project Presentations
  • 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 Report 15%
    Group Project Presentation 15%
    Participation 10%


    Assessment Detail
    Individual Assignment

    Two individual assignments will be distributed during the lectures.

    Assignment 1 will be distributed during the 1st Intensive and will be due 2 weeks later on Monday 15th June. Word limit is 2,500 words.

    Assignment 2 will be distributed during the 2nd Intensive and will be due on the Friday of the 3rd Intensive, ie. 7th August.
    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 Friday tth June. The final group report is due in on the Saturday of the final intensive 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. ie. Saturday afternoon of the 3rd Intensive.


    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.

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    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.

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  • Policies & Guidelines
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