UNIVERSITY OF JOHANNESBURG FACULTY OF ENGINEERING AND BUILT ENVIRONMENT DEPARTMENT OF QUALITY AND OPERATIONS MANAGEMENT

LEARNING GUIDE MODULE NAME: OPERATIONS MANAGEMENT MODULE CODE: COM001 MODULE DURATION: 12 WEEKS

FOR THE CERTIFICATE IN: OPERATIONS MANAGEMENT NQF LEVEL 5

ACADEMIC YEAR: 2013

Compiled by Mr S Mukwakungu

COPYRIGHT RESERVED: University of Johannesburg January 2013

CONTENTS Page 1. INTRODUCTION 1.1 1.2 EXPECTATIONS & INSTRUCTIONAL APPROACH RECOMMENDED SOURCES 1.2.1 2 INTERNET RESEARCH 3 3 3 4 4 4 4 4 4 5 5 5 6 6 6 8

SUBJECT ADMINISTRATION 2.1 GENERAL INFORMATION 2.1.1 2.1.2 2.1.3 2.2 TEACHING STRATEGY LECTURE DAY, TIME, VENUE AND ASSESSOR CONSULTATION

ADMINISTRATION 2.2.1 OTHER IMPORTANT CONTACT DETAILS

2.3

ASSESSMENTS 2.3.1 METHOD OF ASSESSMENT 2.3.1.1 FORMAL ASSESSMENTS

3 4 5

COURSE WORK SCHEDULE OFFICIAL SYLLABUS AND SPECIFIC OUTCOMES PUBLIC HOLIDAYS AND OTHER DAYS ON WHICH THE UNIVERSITY WILL BE CLOSED IN 2013

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1. INTRODUCTION Welcome to the Operations Management Short Learning Programme This course explores a wide variety of production and operations management topics. Topics considered include: (1) Introduction to Operations Management and Operations Strategies; (2) Forecasting; (3) Capacity Planning for Products and Services; (4) Operations Process Design and Improvement; (5) Product and Service Design; (6) Project Management; (7) Total Productive Maintenance; (8) Operations Scheduling; (9) Inventory Management, MRP and ERP and; (10) Aggregate Planning. Upon completion of this course, you should be able to: 1. Understand and actively participate in the production planning process. 2. Identify the operations management aspects of your own organisation or others. 3. Apply the transformation model to identify the inputs, transformation processes and outputs of an organisation. 4. Develop appropriate production and capacity strategies based on suitable forecasting methods for a given product or service, using correct inventory level. 5. Identify the operational and administrative processes in your own organisation 6. Use the basic knowledge of project management in order to plan and schedule projects. 1.1 EXPECTATIONS & INSTRUCTIONAL APPROACH This course may include readings, cases, discussion, problem sets, review questions, quizzes, group assignments with presentation, projects, peer-assessment and examination. Emphasis on intellectual inquiry, scholarship, problem solving, critical thinking, and mastery of terms expected of students in an upper level undergraduate introductory course in Operations Management is expected. Note that the course emphasizes management of service business such as restaurants, insurance companies, financial institutions, small service businesses and retail establishments. The operations function manages the processes and resources that produce whatever it is that the firm sells, and the operations function interacts closely with almost all of the other major functions such as marketing and finance. In order to foster a climate conducive to learning, please join us in treating your classmates with respect. It is encouraged that students ask questions, seek help when needed, and help classmates understand the material. 1.2 RECOMMENDED SOURCES Although this module does not have prescribed textbooks, it is recommended that students read the following text books: Principles of Operations Management Jay Heizer and Barry Render, 8th Edition Operations Management Jay Heizer and Barry Render, 10th Edition Operations Management Stevenson, 2008 edition Operations Management Nigel Slack and others. International Ed. Operations Management Reid and Sanders, 5th Edition, 2013. All of the above recommended materials can be found at the universitys library. Page 3 of 13

1.2.1

INTERNET RESEARCH

It is expected of the learner to become efficient in the use of the Internet for research purposes. Ask the librarian for assistance. This learning guide, which accompanies this module, has been designed as a road map to guide and direct each of the sessions. Each session states the learning outcomes to be achieved and refers to the relevant subtopics. 2. SUBJECT ADMINISTRATION 2.1 GENERAL INFORMATION 2.1.1 TEACHING STRATEGY

The short course in Operations Management will consist of 1 formal lecture sessions of 6 hours 30 minutes each per day during which all the topics related to the module will be covered. Learners are strongly encouraged to engage in discussions with the lecturer as well as with fellow learners. These lecture sessions will be supported by tutorial sessions during formal class time, which form an important part of the modules assessment of learning outcomes. During the tutorial sessions, learners will have to do a series of quizzes and practical problems related to the topics covered during formal lecture session. 2.1.2 LECTURE DAY, TIME, VENUE AND ASSESSOR Saturdays 6 Hours 30 minutes Session/week per group with 1 hour break

Lecture Day: Class Room Sessions per week:

Assessors: Assessors Name Ms Khathu Mushavhanamadi Contact Details Room 209.3 Concowan Building Tel: 011 559 1055 e-mail: kmushavhanamadi@uj.ac.za Room 209.6 Concowan Building Tel: 011 559 1201 e-mail: sambilm@uj.ac.za

Mr Sambil Charles Mukwakungu

2.1.3

CONSULTATION

LECTURER CONSULTATION TIMES ARE AS FOLLOWS: Although the consultation times are indicated on the lecturers timetable posted on his office door, they are as follow:

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Mr Sambil C. Mukwakungu: MONDAYS: 10H00 TO 12H00 FRIDAYS: 10H00 TO 12H00

Ms Khathu Mushavhanamadi: TUESDAYS: 12H00 TO 14H00 THURSDAYS: 14H00 TO 15H00

Because of availability constraint you are more than welcome to contact your lecturer via email as it is the proper way to obtain prompt reply to your queries. 2.2 ADMINISTRATION If your marks are not correct, put your complaint down in writing, keep a copy of it and please date it. Give the short course coordinator in order to attend to problem. Please check after each assessment that your mark is entered correctly and notify your lecturer of any errors immediately because any error in any one assessment will affect your final mark. Do not wait after your final marks are published to realise that your marks have been entered incorrectly. You will be given all your test scripts back after they have been marked. Make sure that you collect your script as it is not the lecturers duty to keep your script. If you send your friend to collect your script, please put this in writing. 2.2.1 OTHER IMPORTANT CONTACT DETAILS

Should you require more information within the Department of Quality and Operations Management, you can contact the Secretary in the second floor at the Con Cowan Building or phone her on: You can also contact Mr Nelson Mpyana, who is the Short Course Administrator. His contact details are below: Room 208 Concowan Building 011 559 1204 E-mail: nelsonm@uj.ac.za 2.3 ASSESSMENTS Please consult your work schedule in this learning guide regularly to be aware of your assessment dates and criteria. Make sure that you know when assessment will take place, on what work, what type of assessment method will be used, as well as the criteria you will be evaluated on. ALL ASSESSMENTS ARE COMPULSORY!

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2.3.1

METHOD OF ASSESSMENT

All assessments contribute towards your final mark. The following types of assessment will be used to compute the final mark: 2.3.1.1 Formal Assessments Assessment No.1 Closed book weighting 40% Assessment No.2 Closed book weighting 40% Assessment No.3 Group Assignment weighting 20% Note: The venue and time of the formal assessment will be announced in the class. Timely submission of the Assignments is essential, late submission will attract a penalty of 10% per working day. Assessments weights may change depending on necessary mark adjustments.

3. COURSE WORK SCHEDULE The draft schedule is as follows but may be subjected to amendments due to extraordinary circumstances:
Week Activity 1. INTRODUCTION TO OPERATIONS AND COMMUNICATION IN THE WORKPLACE Learning Outcomes

REFER TO WEEK 1 ATTACHED LEARNING OUTCOMES REFER TO WEEK 2 2. CAPACITY PLANNING FOR PRODUCTS AND SERVICES ATTACHED LEARNING 3. FORECASTING OUTCOMES REFER TO WEEK 3 ATTACHED LEARNING OUTCOMES REFER TO WEEK 4 ATTACHED LEARNING OUTCOMES

4. PROJECT MANAGEMENT 5. OPERATIONS PROCESS DESIGN AND IMPROVEMENT

6. PRODUCT AND SERVICE DESIGN 7. TOTAL PRODUCTIVE MAINTENANCE Assessment No.1 Closed book weighting 40% Scope: Introduction to operations and operations strategies Related case studies, discussion questions and problems Forecasting Related discussion questions and problems Capacity planning for products and services Related case studies, discussion questions and problems Operations process design and improvement Related case studies, discussion questions and problems

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Week

Activity 8. OPERATIONS SCHEDULING Group Assignment issued in class weighting 20% Scope: Project Management Case study Product and service design Case study Total Productive Maintenance Related case studies, discussion questions and problems 9. INVENTORY MANAGEMENT

Learning Outcomes REFER TO WEEK 6 ATTACHED LEARNING OUTCOMES

7 Feedback on Assessment 1 8 10. MRP AND ERP

REFER TO WEEK 7 8 ATTACHED LEARNING OUTCOMES SAME AS ABOVE REFER TO WEEK 9 ATTACHED LEARNING OUTCOMES

11. AGGREGATE PLANNING Group Assignment is submitted before the test Assessment No.2 Closed book weighting 40% Scope: Operations Scheduling Related case studies, discussion questions and problems Inventory Management, MRP & ERP Related discussion questions and problems Aggregate Planning Related case studies, discussion questions and problems Feedback on Group Assignment

10

11

Feedback on Test 2 Revision for Examinantion Examination Weight 50%

12 Scope: Everything covered in Week 1 to 4 and from Week 6 to 9

Note that the group assignment is compulsory and strongly encouraged because it can help students develop a host of skills that are increasingly important in the professional world (Caruso & Woolley, 20081; Mannix & Neale, 20052). Positive group experiences, moreover,
1

Caruso, H.M., & Wooley, A.W. (2008). Harnessing the power of emergent interdependence to promote diverse team collaboration. Diversity and Groups. 11, 245-266 2 Mannix, E., & Neale, M.A. (2005). What differences make a difference? The promise and reality of diverse teams in organizations. Psychological Science in the Public Interest, 6(2), 31-55.

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have been shown to contribute to student learning, retention and overall college success (Astin, 19973; Tinto, 19984; National Survey of Student Engagement, 20065). Properly structured, group assignments can reinforce skills that are relevant to both group and individual work, including the ability to: Break complex tasks into parts and steps Plan and manage time Refine understanding through discussion and explanation Give and receive feedback on performance Challenge assumptions Develop stronger communication skills. An assessment date will be announced for students who might have been unable to write the scheduled tests due to illness. Please take note that only a valid doctors certificate will be acceptable to allow one to sit for the Sick Test. It is your responsibility to ensure that you have the correct venue, date and time for the tests. Students who arrive 30 minutes after the test has started will not be allowed to write that test. Furthermore, please ensure that you have signed the test attendance register before you leave the test venue. A student must get a minimum of 40% average for the four assessments combined to get access to the examination. 4. OFFICIAL SYLLABUS AND SPECIFIC OUTCOMES WEEK 1: INTRODUCTION TO OPERATIONS COMPETENCIES AND LEARNING OUTCOMES Competencies: This section introduces the students to Operations Management and its different strategies. You, the student, will understand what Operations Management is, and what Operations Managers responsibilities are in any given organisation. You will also appreciate the need to develop and implement a product strategy that meets the demands of the market. Learning Outcomes: Discuss the activities of operations managers Describe why operations management exists, and why there is a need for the study of operations management Know and understand the interrelationship between the operations function and other functions within an organisation Compute productivity (single-factor & multifactor productivity) List some of the reasons for poor productivity and some ways of improving it. Identify the critical variables in enhancing productivity What are the challenges of Productivity in the service sector What are the ethical challenges facing operations managers nowadays?
3 4

Astin, A. (1993). What matters in college? Four critical years revisited. San Francisco: Jossey-Bass. Tinto, V. (1987). Leaving college: Rethinking the causes and cures of student attrition. Chicago: University of Chicago Press. 5 National Survey of Student Engagement Report. (2006). http://nsse.iub.edu/NSSE_2006_Annual_Report/docs/NSSE_2006_Annual_Report.pdf.

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WEEK 2: FORECASTING COMPETENCIES AND LEARNING OUTCOMES Competencies: This section introduces the learner to one of the critical part of the operations managers function. Students must be able to choose and apply any one of the variety of qualitative and quantitative techniques in order to forecast sales, demand or any other data. FORECASTING LEARNING OUTCOMES Learning Outcomes: Define and understand forecasting Why is forecasting important? How can we evaluate future demand? Identify the different types of forecasts Determine the steps in the forecasting process Apply the different types of forecasting methods How do we make mistakes in forecasting? Compute forecast accuracy

WEEK 2: CAPACITY PLANNING FOR PRODUCTS AND SERVICES COMPETENCIES AND LEARNING OUTCOMES Competencies: This section introduces the student to capacity planning and control for services and products. The student will learn about the importance of capacity decisions, the measurement of capacity, how capacity requirements are determined, and the evaluation of capacity alternatives. Learning Outcomes: Define capacity Summarize the importance of capacity planning Discuss ways of defining and measuring capacity Describe the determinants of effective capacity Determine design capacity, effective capacity, and utilization Perform bottleneck analysis Compute break-even Determine expected monetary value of a capacity decision Discuss the major considerations related to developing capacity alternatives Briefly describe approaches that are useful for evaluating capacity alternatives

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WEEK 3: OPERATIONS PROCESS DESIGN AND IMPROVEMENT COMPETENCIES AND LEARNING OUTCOMES Competencies: The decision covered in this particular section is one of the most basic and strategic decisions operations managers make because of the long-term consequences for business organisations. The students will be able to establish the link between process selection and operations strategy, forecasting and capacity decisions. OPERATIONS PROCESS DESIGN AND IMPROVEMENT LEARNING OUTCOMES Learning Outcomes: Explain the strategic importance of process design and selection Describe the influence that process selection has on organization Compare the basic process types Use the tools of process analysis Describe customer interaction in the process design Why is improvement so important? Discuss the key elements of operations improvement What techniques can be used for improvement

WEEK 3: PROJECT MANAGEMENT COMPETENCIES AND LEARNING OUTCOMES Competencies: This chapter is concerned with the planning and control of operations that occupy the lowvolumehigh-variety end of the continuum. Project planning and control is important because all managers will, at some point, get involved with managing projects. Learning Outcomes: Students should be able to discuss what is a project, its behavioural aspects in terms of project personnel and project manager Explain what makes project management successful Discuss project planning and its importance Explain the nature and importance of a Work Breakdown Structure (WBS) in project management Construct simple network diagrams List the kinds of information that a PERT or CPM analysis can provide Analyse networks with deterministic times as well as with probabilistic times Determine a critical path of a project Describe activity crashing and solve typical problems

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WEEK 4: PRODUCT AND SERVICE DESIGN COMPETENCIES AND LEARNING OUTCOMES Competencies: The decision covered in this particular section is one of the most basic and strategic decisions operations managers make because of the long-term consequences for business organisations. The students will be able to establish the link between process selection and operations strategy, forecasting and capacity decisions. Learning Outcomes: Explain the strategic importance of product and service design Describe the stages in product and service design? Explain why should product and service design be considered interactively? Identify some key reasons for design and redesign Recognise the key questions of product and service design Explain the purpose and goal of life cycle assessment

WEEK 4: TOTAL PRODUCTIVE MAINTENANCE COMPETENCIES AND LEARNING OUTCOMES Competencies: This chapter introduces the students to the concepts of maintenance and reliability. Students will understand how reliability improvement can be obtained through the use of preventive maintenance and excellent repair facilities. TOTAL PRODUCTIVE MAINTENANCE COMPETENCIES AND LEARNING OUTCOMES Learning Outcomes: Distinguish between the terms maintenance and reliability Describe how to improve system reliability Determine system reliability Distinguish between preventive and breakdown maintenance Compare preventive and breakdown maintenance costs Motivate total productive maintenance How can operations assess the potential causes of, and risks from failure? How can failures be prevented? How can operations mitigate the effects of failure? How can operations recover from the effects of failure? Describe the techniques for enhancing maintenance

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WEEK 6: OPERATIONS SCHEDULING COMPETENCIES AND LEARNING OUTCOMES Competencies: In this section, the student acquires the ability to construct a basic Gantt Chart, understand the assignment method, sequencing rules, and the Johnsons Rule. Learning Outcomes: The student should demonstrate detailed understanding of what scheduling involves and the importance of short-term scheduling. Explain the relationship between short-term scheduling, capacity planning, and a master schedule Apply the assignment method for loading jobs Demonstrate a detailed understanding of steps involved in Johnsons Rule and use the Johnsons Rule. Explain scheduling issues Group Assignment issued in class weighting 20% Scope: Project Management Case study Product and service design Case study Total Productive Maintenance Related case studies, discussion questions and problems Instructions: Form groups with minimum 3 students and maximum 5 students WEEK 7 8: INVENTORY MANAGEMENT, MRP AND ERP COMPETENCIES AND LEARNING OUTCOMES Competencies: In this section, the student acquires the ability to construct a basic MRP schedule and understand all the theory concerning MRP and ERP. The students will also acquire the knowledge of how to best manage resources to effectively match supply and demand. Learning Outcomes: Explain and use cycle times Explain and use EOQ model for independent inventory demand Compute a re-order point Apply the production order quantity model Explain and use the quantity discount model Define MRP Develop a product structure tree Build a gross requirement plan Build a net requirement plan Describe ERP, what it provides, and its hidden costs Page 12 of 13

WEEK 9: AGGREGATE PLANNING COMPETENCIES AND LEARNING OUTCOMES Competencies: In this section, the student acquires the ability to understand the assignment method, priority rules, and the Johnsons Rule. Learning Outcomes: Explain what aggregate planning is and how it is useful Identify optional strategies for developing an aggregate plan Prepare an aggregate plan via trial-and-error technique using graphs and spread sheet, and compute the associated costs.

5. PUBLIC HOLIDAYS AND OTHER DAYS ON WHICH THE UNIVERSITY WILL BE CLOSED IN 2013 Please note that the University will be closed on the following days in 2013 and that no services will be rendered with regard to venues and related matters. Exceptions will be made in highly exceptional cases. All Sundays All public holidays and University holidays, namely: REASON New Years Day Human Rights Day University holiday University closed long weekend Good Friday University closed Easter weekend Family Day Freedom Day Workers Day Youth Day Public holiday National Womens Day University closed long weekend University holiday Heritage Day University closed DAY Tuesday Thursday Friday Saturday Friday Saturday Monday Saturday Wednesday Sunday Monday Friday Saturday Monday Tuesday Saturday Tuesday DATE 1 January 2013 21 March 2013 22 March 2013 23 March 2013 29 March 2013 30 March 2013 1 April 2013 27 April 2013 1 May 2013 16 June 2013 17 June 2013 9 August 2013 10 August 2013 23 September 2013 24 September 2013 14 to 31 December 2013

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