MANAGEMT 7031NA - Services and Operations Management

Ngee Ann Academy - Trimester 2 - 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 7031NA
    Course Services and Operations Management
    Coordinating Unit Business School
    Term Trimester 2
    Level Postgraduate Coursework
    Location/s Ngee Ann Academy
    Units 3
    Prerequisites MANAGEMT 7086NA & MANAGEMT 7100NA
    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 is a Management Educator and Consultant with extensive experience teaching MBA, Executive Education 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 “Business Fundamentals” modules in the Professional Management Program and the Lean Six Sigma Yellow Belt Advanced, Green Belt and Black Belt 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, and aerospace industries. In recent years, a major focus of his consulting activity has been Lean Six Sigma and Process Improvement implementation.

    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 1044, 10 Pulteney Street
    Course Website: www.myuni.adelaide.edu.au
    Course Timetable

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

    1st Intensive
    Topic 1
    Friday
    7:00pm - 8:15pm Introduction to Operations Management
    Topic 2
    Friday
    8:30pm - 10:00pm Operations Strategy

    Process Type and Process Operation
    Topic 3
    Saturday
    1:00pm - 2:30pm Operations Strategy (Cont)
    • Organisation and Control
    Linking operations Strategy to Competitive Advantage
    Topic 3
    Saturday
    2:45pm - 4:15pm Operations Strategy Implementation

    Facility Location
    Topic 4
    Saturday
    4:30pm - 6:00pm Operations Strategy Implementation

    Job Design, Process Design
    Topic 4
    Saturday
    6:15pm - 7:45pm Operations Strategy Implementation

    Facility Layout
    Topic 5
    Sunday
    9:00am - 10:30am Service Operations Strategy

    Case Study: Benihana of Tokyo
    Topic 5
    Sunday
    10:45am - 12:30pm Service Operations Strategy
    Topic 6
    Sunday
    1:30pm - 3:00pm Strategic Operations Planning
    • Capacity Management
    Topic 7
    Sunday
    3:15pm - 4:30pm Managing Manufacturing Systems
    • Inventory Management (Independant Demand Inventory)
    Cases to be prepared before the 1st Intensive Class Session
    • Benihana of Tokyo

    2nd Intensive

    Topic 7
    Friday
    7:00pm - 8:15pm

     Managing Manufacturing Systems

    • Dependent Demand Inventory Management (MRP and MRPII)
    • Scheduling and Work Control
     Topic 7
    Friday
    8:30pm - 10:00pm Managing Manufacturing Systems
    Case Study: TBA
    Topic 8
    Saturday
    2:00pm-3:30pm Operations Scheduling
    Topic 9
    Saturday
    3:45pm - 5:00pm Just in Time and Lean Production Systems
    The Toyota Production System
    Case Study: Toyota Motor Manufacturing USA, Inc.
    Topic 10
    Saturday
    5:15pm - 6:30pm Managing Quality
    • Acceptance Testing
    • Statistical Process Control
    Topic 11
    Saturday
    6:45pm - 8:00pm Supply Chain Management – Elements
    • Procurement
    Topic 11
    Sunday
    9:00am - 10:30am Supply Chain Management
    • Simulation: The Beer Game
    Topic 12
    Sunday
    10:45am - 12:30pm Managing Service Operations
    Transaction Based Services Work Flow Management
    Operations Improvement
    Topic 13
    Sunday
    1:30pm - 3:00pm Group Presentations
    Cases to be prepared before the 2nd Intensive Class Session
    • Toyota Motor Manufacturing USA, Inc.



  • 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:

    Nigel Slack, Alistair Brandon-Jones, Robert Johnston and Alan Betts, Operations and Process Management, Principles and Practices for Strategic Impact, 3rd Edition, Pearson, 2012


    Additional Supplementary Reading:

    Goldratt, Eliyahu M. and Cox, Jeff. The Goal, Gower, (latest available edition)
    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
    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 11 Topic: Supply Chain Management
    Simulation: The Beer Game
    Topic 12 Topic : Managing Service Operations
    Reading: The Lean Knowledge Work - Upton, David M. and Staats, Bradly R. (2011), Harvard Business Review, October, 2011, Reprint R111OG
    Topic 13 Topic: Operations Improvement




  • 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 (25% each)   50%
    Case Study Executive Summaries             10%
    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 the 1st Intensive and is due on Friday evening of the 2nd Intensive. Word limit is 2,500 words.
    Assignment 2 will be distributed during the 2nd Intensive and is due on Monday 1st September. Word limit is 2,500 words.

    Case Study Executive Summaries
    An executive summary of approximately one page in length will be required for each of the cases to be discussed in class. The cases and due dates are as follows: Benihana of Tokyo - Due Friday evening of 1st Intensive
    Toyota Motor Manufacturing - Due Friday evening of 2nd Intensive
    Note: No Executive Summaries will be accepted late. Any Executive Summaries not handed up at the above mentioned sessions will receive zero marks.

    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 Wednesday 6th July. The final group report is due in on the Sunday 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.

    Group assessment tasks have a maximum 30% weighting. A minimum of seventy percent (70%) of the total value of a course’s assessment will be devoted to individually submitted work, which may be in the form of assignments, examinations or presentations.

    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

    Attendance

    Statutory obligations in Singapore are such that attendance in person is a compulsory condition of passing a course. Our specific requirements are that students must attend at least 80% of class sessions to be graded for that course. For these purposes each intensive weekend is defined as comprising 5 sessions with 1 on Friday evening and 2 on each of Saturday and Sunday.
    Assessment Detail

    No information currently available.

    Submission
    Presentation of Assignments:
    The preferred format for submission of assignments is hardcopy to be handed in during class at the designated times except for assignment 2 which should be emailed.
    Assignments should be written on A4 paper, stapled together with a staple in the top left hand corner of the paper.
    Do not place assignments in folders, binders, plastic envelopes or bind into booklet form. This just makes it more difficult to mark.
    Please must retain a copy 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.

    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 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.
    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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