BUAD 802: Production and Operations Management

BUAD 802: Production and Operations Management Study Notes

Course Overview

  • Course Code: BUAD 802
  • Course Title: Production and Operations Management
  • Credit Units: 3
  • Year of Study: 1
  • Semester: Two

Course Introduction and Description

  • Production and operations management combines and transforms various resources used in the production and operations subsystem of an organization into value-added products/services under the organization's policies.
  • Key focus areas include manufacturing and service management, referred to as production management and operations management respectively.
  • Core activities include process analysis, quality management, procurement, and product development.
  • The course involves theoretical and practical analyses, culminating in a virtual factory management project.

Course Prerequisites

  • No specific subject prerequisites, but expected competencies include:
    • Satisfactory English proficiency
    • Basic computer operations proficiency

Course Learning Outcomes

After completing this course, students should be able to:

  1. Explain theories and concepts in global business environments.
  2. Synthesise logistics and transportation processes.
  3. Compare production and service operations.
  4. Assess operations functions and the operations manager's role.
  5. Utilize key operations management aspects in decision-making.

Activities to Meet Course Objectives

  • Significant reading, writing, and case analysis will be involved.
  • Group assignments and tasks simulating actual team-based operations management scenarios will be conducted.
  • Classroom activities will focus on seminar and video conferencing discussions on assigned readings.

Grading Criteria and Scale

  • Formative Assessment:
    • Individual assignments/tests (20%)
    • Group assignments (10%)
    • Discussions/Quizzes/Engagement (10%)
  • Summative Assessment:
    • CBT (30%)
    • Essay-Based (30%)
  • Total: 100%
  • Grading Scale:
    • A = 70-100
    • B = 60-69
    • C = 50-59
    • D = 45-49
    • F = 0-44

Introduction to Study Modules

Module 1: Review of Fundamental Concepts of Operations Management

  1. Study Session 1: Operations Management
  2. Study Session 2: Operations Strategy
  3. Study Session 3: Process Analysis
  4. Study Session 4: Data Protection Policy and Basic Economic Decisions

Module 2: Plant Location and Layout, Inventory Management and Forecasting

  1. Study Session 1: Plant Location and Layout
  2. Study Session 2: Inventory Management
  3. Study Session 3: Forecasting
  4. Study Session 4: Business Forecasting

Module 3: Evaluation and Review Techniques

  1. Study Session 1: Network Analysis
  2. Study Session 2: Critical Path Method (CPM)
  3. Study Session 3: Project Evaluation and Review Technique (PERT)
  4. Study Session 4: Linear Programming (LP)
  5. Study Session 5: Developments in Operations Management

In-Depth Module Notes

Module 1: Review of Fundamental Concepts of Operations Management

Study Session 1: Operations Management
  • Definition of Operations Management
    • It is the management of the productive or transformational processes to achieve goals of profitability, market share, and social responsibility.
    • Encompasses both production management (for tangible products) and operations management (for services).
  • Importance of Operations Management
    • Influences quality, cost, and availability of an organization’s products or services.
    • Directly affects economic performance concerning resource utilization.
  • Activities in Operations Management:
    • Planning, designing, controlling, and improving production processes.
    • Assessing multi-plant allocation, forecasting demand, and managing supply chain relations.
Study Session 2: Operations Strategy
  • Evolution of Strategy
    • Strategies must adapt to industry changes and technology advancements.
  • Key Concepts
    • Operations Strategy supports broader business strategies, focusing on developing process capabilities to fulfill organizational goals.
Study Session 3: Process Analysis
  • Goals of Process Analysis
    • Understand and improve current processes to help achieve business objectives.
  • Types of Process Analysis
    • Strategic (top-down) and tactical (bottom-up) perspectives.
Study Session 4: Data Protection Policy and Basic Economic Decisions
  • Data Protection
    • Importance of adhering to the Data Protection Act to safeguard personal data.
    • Organizational implications for data collection, storage, and processing complying with privacy standards.
  • Economic Decision Making
    • Defining economic decision-making processes and their relevance to organizational sustainability and competitive advantage.

Module 2: Plant Location and Layout, Inventory Management, and Forecasting

Study Session 1: Plant Location and Layout
  • Importance of Location
    • Strategic location decisions impact operational efficiency and market access.
  • Locational Analysis
    • Techniques used to evaluate site options based on demographic, competitive, traffic, and operational economics.
Study Session 2: Inventory Management
  • Types of Inventory
    • Merchandise and manufacturing inventories, with further breakdowns into raw materials, work-in-progress, and finished goods.
  • Economic Order Quantity (EOQ)
    • Optimal order quantity minimizing total holding costs and ordering costs.
Study Session 3: Forecasting
  • Definition of Forecasting
    • A predictive process using historical data to estimate future events and market demands.
  • Forecasting Techniques
    • Qualitative and quantitative methods including time series analysis and explanatory methods.
Study Session 4: Business Forecasting
  • Types of Business Forecasting
    • Sales forecasts, production requirements, financial projections, and strategic planning based on anticipated economic conditions.

Module 3: Evaluation and Review Techniques

Study Session 1: Network Analysis
  • Network Diagram
    • Visual representation of project tasks showing relationships and dependencies.
  • Critical Path
    • The sequence of stages determining the shortest path for project completion.
Study Session 2: Critical Path Method (CPM)
  • Application of CPM
    • Used to visualize project timelines, identify potential delays, and reroute resources.
Study Session 3: Project Evaluation and Review Technique (PERT)
  • Definition of PERT
    • A statistical tool analyzing the timing of various tasks to identify project completion times.
  • Overview of Method Steps
    • Activity listing, sequence determination, network diagram construction, time estimate requirements, and critical path identification.
Study Session 4: Linear Programming (LP)
  • Definition
    • A mathematical technique for optimizing resource allocation subject to linear constraints.
  • Usage Scenarios
    • Manufacturing, resource allocation, finance management, and transportation optimization.

Study Session 5: Developments in Operations Management

  • Total Quality Management (TQM)
    • Comprehensive approach focusing on continuous improvement, customer satisfaction, and involvement of all members of an organization in improving services, processes, and culture.

References and Further Readings

  • A collection of references listed at the end of each module, including academic texts, research papers, and relevant web resources to aid in further understanding of the operations management concepts discussed.