COMMGMT 7019OL - Operations Management (M)

Online - Quadmester 2 - 2014

The planning, execution, and control of activities involved in converting resources into value-added and desired goods and services constitute the Operations Management (OM) function of an organisation. This course examines the role of Operations Management in supporting effective strategy execution and how it may be leveraged as a sustainable source of competitive advantage. Topics covered include, among others, operations strategy formulation, inventory control, MRPII/ERP, scheduling, facility location and layout, quality management, and process and technology decisions. Manufacturing and service industry contexts are both considered, and OM versus Supply Chain Management (SCM) is also discussed.

  • General Course Information
    Course Details
    Course Code COMMGMT 7019OL
    Course Operations Management (M)
    Coordinating Unit Adelaide Business School
    Term Quadmester 2
    Level Postgraduate Coursework
    Location/s Online
    Units 3
    Course Staff
    Max Zornada B.E. (Mech), Hons. M.B.A.

    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. In recent years, a major focus of his consulting activity has been Six Sigma, Lean 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.
    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.

    The full timetable of all activities for this course can be accessed from the Course Planner at
  • Learning Outcomes
    Course Learning Outcomes
    At the end of this course, students will be able to:
    1. Describe what the Operations Management is, as applied to manufacturing, process and service organisations.
    2. Describe how Operational Capability determines the range of Business Strategies that can successfully be executed.
    3. Describe the operational impacts of a chosen business strategy in terms of operational capabilities on which the successful execution of business strategy is dependent on.
    4. Describe the main process types on which operations can be based and the practical implications of each choose.
    5. Describe the optimal organisation structure depending on the choice of process type.
    6. Describe the key operations strategy decision factors as applied to service operations.
    7. Describe the Expectations-Perceptions Model for understanding customer experience and satisfaction.
    8. Apply the RATER framework to design a customer experience in a service process and determine the operational capabilities required to deliver this experience.
    9. Describe what factors have to be considered in determining the optimal facility location, process design and process layout.
    10. Determine the standard times through work and time analysis and work sampling. Use the standard times for job design.
    11. Design and balance an assembly line for manufacturing a simple product.
    12. Describe and determine the optimal layouts for manufacturing and service processes.
    13. Apply work and time study methods to determine standard times for tasks and apply to job design.
    14. Develop, assess and optimise a strategic operations plan.
    15. Describe the two types of inventory control situations that one may encounter in an operations environment.
    16. Determine Economic Order Quantity and/or Economic Batch Quantity equation to determine an inventory management policy for an item of inventory.
    17. Describe the workings of an MRP and MRPII systems.
    18. Describe what an ERP system is and the ways in which it can organizational benefits.
    19. Describe the methods and techniques used to schedule operations for line flow and intermittent flow processes.
    20. Construct a schedule for operating a line flow processes.
    21. Construct a schedule for operating an intermittent flow process and assess the quality of the schedule using appropriate metrics.
    22. Describe what a dispatching rule is and how it is applied.
    23. Describe the key elements of Lean Thinking derived from the Toyota Product System as applied to managing operations. Describe the key differences between the Toyota Production System approach and traditional MRPII based approaches.
    24. Describe how a Just-in-Time system that links two work stations works.
    25. Determine the number of containers required to operate a Just-in-time system between two work stations.
    26. Describe the key principles of strategic procurement management as distinct from adversarial procurement. In particular, describe how a “Large Order of Magnitude Expenditure (LOME)” contract is developed, and how it improved procurement effectiveness for an organization.
    27. Describe what a supply chain is, and the key decision factors that impact supply chain performance.
    28. Describe what the “Bullwhip Effect” is and propose strategies for reducing its impact or eliminating it completely.
    29. Describe the “water bucket model” for representing a transaction based service process and identify key management decision factors about which proactive management decision are required to management a service process effectively.
    30. Apply the “water bucket model” to establish the key settings for a service process so as to guarantee an agree service level to customers.
    31. Describe the key elements of an Acceptance Sampling approach and a Statistical Process Control approach to quality control, how and when each should be applied.
    32. Use a nomograph to determine an acceptance sampling based quality control plan.
    33. Describe some of the key factors that lead to dysfunctional operations as well as the actions required to address each. 
    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. 1, 4,6,7,9,10,12,15,17,18,19, 23, 26, 27,31,33
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1,3,5,9,14,1823,26,28,33
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 2,3,4,5,6,7,9,10,11,12,13,14, 16,20,21,22,23,24,25,26,29,30,31,32,33
    Skills of a high order in interpersonal understanding, teamwork and communication. 2,3,5,15,23,26,27,33
    A proficiency in the appropriate use of contemporary technologies. 14,17,18, 27
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1,2,3,4,5,6,23,33.
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1,2,3,4,5,6,7,14,23,33
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1,2,3,4,5,6,7,14,23,33
  • Learning Resources
    Required Resources
    Slack, Nigel., Chambers, Stuart., Johnston, Robert and Betts, Alan., Operations and Process Management, Principles and Practices for Strategic Impact, 2nd Edition, FT Prentice Hall, 2008. ISBN-10: 0273718517 | ISBN-13: 978-0273718512
    Recommended Resources
    Goldratt, Eliyahu M. and Cox, Jeff. The Goal, Gower, (latest available edition)
    Online Learning
    This subject is offered on an online basis. All required resources with the exception of the subject textbook can be found at the subject website.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Operations Management is offered as an online subject over 10 weeks.
    Participants will be introduced to certain concepts, techniques or issues through formal powerpoint presentations, supported by appropriate readings, textbook references and exercises.
    Two theory assignments and a practical “real world” application project will be used to reinforce the learnings in this subject.

    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
    W1 Zornada, M.A. (2003), Operations Management Topic Note, “Introduction to Operations Management”. 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 reproduced from Schmenner, Roger W. (1993), Production and Operations Management, MacMillan.
    W2 Zornada, M.A. (2003), Operations Management Topic Note, “Operations Strategy”. (continued) Case Studies:

    STE Electronics, reproduced from Schmenner, Roger W. (1993), Production and Operations Management, MacMillan.
    W3 Zornada, M.A. (2003), Operations Management Topic Note, “Operations Strategy Implementation”.

    Zornada, M.A. (2003), Operations Management Topic Note, “Workforce Management”.
    W4 Zornada, M.A. (2003), Operations Management Topic Note, “Service Operations Strategy”.

    Case Study: Benihana of Tokyo
    W5 Zornada, M.A. (2003), Operations Management Topic Note, “Strategic Operations Planning”. Zornada,

    M.A. (2003), Operations Management Topic Note, “Inventory Management”.
    W6 Zornada, M.A. (2003), Operations Management Topic Note, “Inventory Management” (continued).

    Zornada, M.A. (2003), Operations Management Topic Note, “Scheduling Operations”.
    W7 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.
    W8 Zornada, M.A. (2003), Operations Management Topic Note, Quality Control”.

    Swank, Cynthia Karen (2003) "The Lean Service Machine", Harvard Business Review, October 2003. Reprint R0310J.
    W9 Zornada, M.A. (2003), Operations Management Topic Note, “Supply Chain Management, Miscellaneous Topics”. Simulation: The Beer Game

    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

    Fisher, Marshall L., Hammond, Janice H., Obermeyer, Walter R., Raman, Ananth (1994) Making Supply Meet Demand in an Uncertain World, HBR Article Reprint 94302.
    W10 Kaufman, Robert S. (1992) “Why Operations Improvement Programs Fail: Four Managerial Contradictions, Sloan Management Review, Fall 1992, pages 83-92.
  • 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

    Assignment Description % Weight
    Individual Assignment 1 25%
    Individual Assignment 2 25%
    Case Study Executive Summaries
    Week 4: Benihana of Tokyo
    Week 6: DEC: The Endpoint Model (A) 10%
    Week 7: Toyota Motor Company, USA Inc.
    Project Report and Presentation 30%
    Discussion Contribution 10%
    Assessment Detail
    Individual Assignments

    Two individual assignments will be distributed during the term. Both will involve the analysis of cases studies and have a word limit of 2,500 words, excluding diagrams.

    Students should commence assignment 1 at the beginning of week 2 and submit by email at the end of week 4, 11th May 2014.

    Assignment 2 is due at the end of week 7, on 1st June 2014.

    Case Study Executive Summaries

    An executive summary of approximately one page in length will be required for each of the cases to be discussed during the subject. The cases and due dates are as follows:

    Benihana of Tokyo - Due 11th May 2014.

    DEC: The Endpoint Model – Due 25th May 2014

    Toyota Motor Manufacturing - Due 1st June 2014.

    Note: No Executive Summaries will be accepted late. Any Executive Summaries not submitted on the above mentioned dates will receive zero marks.

    Individual Project

    The individual project will be based on a 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.

    Students should submit a brief (half a page at the most) write up of what they propose to do for their project component by the end of week 2. The final report is due on 15th September 2013.

    Word limit 2,500 words.

    Project Presentation

    Students will be required to prepare a 20 minute presentation on their project to be submitted during the final scheduled week, 22nd June 2014. The presentation should be structured as if your were giving a presentation to the management team of the organisation you have made the focus of your project, in the same way a consultant would give after a review.
    Presentation of Assignments:

    Assignments should be written on A4 paper.

    Please must retain a copy of all assignments submitted.

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

    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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    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 ( 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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