MANAGEMT 7031 - Services and Operations Management

North Terrace Campus - Trimester 2 - 2017

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 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Restrictions Available to Certificate, Graduate Diploma and Master of Business Administration students only - other students must first meet with program director for enrolment approval
    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, mining, 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, IT 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 8303 5525/ Fax: +61 8 8223 4782.
    Email: max.zornada@adelaide.edu.au
    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:

    1. Apply key operational levers to the management of service operations and the proactive management of customer experience.
    2. Critically analyse the impact operational capabilities have on decision making.
    3. Demonstrate excellent communication skills and a collaborative approach to work.
    4. Identify different types of operational process and explain on which operational capability it can be based.
    5. Explain supply chain management.
    6. Develop skills in the development of an Acceptance Sampling Based Quality Control Strategy.
    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)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1, 2, 3, 5 & 6
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    2
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    3
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1 & 6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • Able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    3
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1 & 3
  • Learning Resources
    Required Resources
    REQUIRED RESOURCES
    Recommended textbook for this subject is:
    Greasley, Andrew (2013), Operation Management, 3rd Edition (or later if available), John Wiley and Sons Ltd.
    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 3 x 2 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 : Introduction to Operations Management

    Readings:
    Zornada, M.A. (2016), Operations Management Topic Note, “Introduction to Operations Management”.

    Textbook : Chapter 1

    Topic 2: Operations Strategy - Process Type and Process Operation

    Readings: Zornada, M.A. (2016), 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.

    Textbook : Chapter 3

    Topic 3: Operations Strategy - Organisation and Control, Linking Operations Strategy to Competitive Advantage

    Readings: Hayes, Robert H. and Upton, David M. (1998) "Operations Based Strategy', California Management Review, Volume 40, Number 4, Summer 1998. CMR 123.

    Textbook : Chapter 2

    Topic 4: Operations Strategy Implementation

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Operations Strategy Implementation”.

    Textbook : Chapter 5

    Topic 4: Operations Strategy Implementation - Job Design, Process Design

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Workforce Management”.

    Textbook : Chapters 8 and 9

    Topic 4: Operations Strategy Implementation – Facility Layout

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Operations Strategy Implementation”.

    Textbook : Chapter 4
     
    Topic 5: Service Operations Strategy

    Reading: Zornada, M.A. (2016), 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 6: Strategic Operations Planning

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Strategic Operations Planning”.

    Textbook : Chapter 11

    Topic 7: Managing Manufacturing Systems - Inventory Management (Independent Demand Inventory)

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Inventory Management”.

    Textbook : Chapter 12

    Topics 7: Managing Manufacturing Systems - Dependent Demand Inventory Management (MRP and MRPII) and Scheduling and Work Control

    Textbook : Chapter 14

    Topic 8: Operations Scheduling

    Reading: Zornada, M.A. (2016), Operations Management Topic Note, “Scheduling Operations”.

    Textbook : Chapter 10

    Topic 9: Managing Manufacturing Systems - Just in Time and Lean Production Systems
    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.

    Textbook : Chapter 13

    Topic 10: Managing Quality - Acceptance Testing & Statistical Process Control

    Readings: Zornada, M.A. (2016), Operations Management Topic Note, Quality Control”.

    Textbook : Chapter 17

    Topic 11: Supply Chain Management – Elements: Procurement

    Readings: Zornada, M.A. (2016), Operations Management Topic Note, “Supply Chain Management, Miscellaneous Topics”.
    Purchasing Management, ICMA - MIS Report, October 1988, Vol20/No10.

    Textbook : Chapter 15

    Topic 11: 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 : 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

    Textbook : Chapter 15

    Topic 12: Managing Service Operations

    Reading: Swank, Cynthia Karen (2016) " The Lean Service Machine", Harvard Business Review, October 2016. 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 13: Operations Improvement

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

    Textbook : Chapter 18
  • 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
    Assessment Task Task Type Weighting Learning Outcome
    Assignment 1 Individual 30%
    Assignment 2 Individual 30%
    Project Group 15%
    Presentation Group 15%
    Participation Individual 10%
    Total 100%
    For specific information about assignments and due dates please see MyUni.
    Assessment Detail
    Individual Assignment

    Two individual assignments will be distributed during the lectures.

    Assignment 1 will be distributed during the 1st intensive lecture session will be due 2 weeks later. Word limit is 2,500 words.

    Assignment 2 will be distributed during the 3rd intensive lecture session and will be due 2 weeks later. 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 intensive 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 (afternoon of the 2nd day of the final intensive). All members of the team will be required to present. Time keeping will be strictly enforced.

    Submission of Assignments and Project Report

    Assignments and project reports should be submitted in softcopy as pdf files. If an assignment is made up of multiple documents, these should be compiled into a single pdf file.

    Please name your file with your name or initials and what it is. (Eg. Mz-assign1.pdf).
    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.
    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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