Course Title: Production Operations Management

Course Code: OM345

Prerequisites: Operations Management
Department: Operations and Supply Chain

HSM Vision

HSM envisions its success in the sustainable contribution that it will make to the industry,
academia and research in public and private sector. HSM will lead by providing professionally
competent and ethically conscious human resources engaged in the global and local context to
foster socio-economic growth and sustainability for the society. HSM envisages having faculty
with high research potential and a deep desire for cutting edge research including collaboration
with national and international partners.

HSM Mission

Being a research-oriented and student-centric business school, we emphasize research

publications in impact journals as well as state-of -the-art learning methodologies. We will
prepare our students to become the future ethical business leaders and the guiding post for the
society, while equipping them with the knowledge and skills required by world-class
professionals. We will be the leading choice for organizations seeking highly talented human
resource. HSM will foster internationalization with key stakeholders and actively work to
exchange best practices with business schools across Pakistan through collaborations,
workshops, conferences and other means.
CAPSULE STATEMENT
The global business system is changing the way everyone communicates, lives, and works. The
pace of technological change is quickening as computers and communication networks make it

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possible for firms to react faster to innovations and shifts in demand. The new global
information links connect customers, retailers, and manufacturers with a touch of button. The
use of technology in this new information age has collapsed the traditional barriers that once
existed. Companies now make worldwide products.
These changes have a tremendous impact on the production operations of companies.
Effective management of these operations has become an area of growing concern.
Continuous improvement of products, services and processes, and elimination of all forms of
waste, have become inevitable for companies who aim to remain competitive in the global
market.
Operations Management is a discipline and profession that studies and practices the process of
planning, designing, and operating production systems and subsystems, in both manufacturing
and services, to achieve the goals of the organization.
LEARNING OBJECTIVES
The purpose of the course is to develop ability in the participants to:
 Appreciate the role of Operations Management in an organization
 Formulate and communicate production processes in the terminology of OM
 Use quantitative and qualitative methods to make better decisions as managers
 Effectively utilize various tools and techniques to improve the products and services,
and thus enhance the competitiveness of an organization
LEARNING METHODOLOGY
Following instructional tools and methodologies may be utilized during the course.

Lectures In-class Skill Development Exercises Simulations

Computer Software Tools Case Studies & Presentations Guest speakers

COURSE ASSESSMENT

Quizzes 10%
Assignments and Cases 15%
Class Participation & Case Discussion 10%
Project 10%

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 Midterm 20%
Final Exam (Comprehensive) 35%

REQUIRED TEXT BOOK

Heizer, Jay and Render, Barry, Operations Management, 12th Edition.
REFERENCES
Chase, Richard B., Aquilano, Nicholas J., and Jacobs, F. Roberts, Operations Management for
Competitive Advantage, McGraw Hill, New York, 2006.
Raturi, Amitabh S., Evans, James R, Principals of Operations Management, South-Western,
2005.

Production Operations Management

CLASS POLICY
PARTICIPATION
Each course participant shall be expected to participate fully in class discussions. You will be
expected to contribute significantly to in-class analysis and discussion of readings and case
studies.
Ways to effectively contribute include:
• Responding to questions.
• Asking questions that contribute towards constructive discussions.
• Performing assigned class exercises
Disruptive behavior such as talking during the class without permission, coming late, leaving
class during discussion or lecture and using mobile phones in class will count as negative
participation.
TEAM WORK
Teamwork is a very important part of your learning experience and you are expected to learn to
do tough assignments in teams (not chosen by you) and meet the deadlines and quality
standards. Groups of 4-5 members will be finalized before the end of third week. The
assignments, projects and presentations during the course will be based on the group work
unless otherwise specified. Once formed participants will not be allowed to change the group
without the resource person’s permission. It is recommended that all students should equally

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participate in the group assignments in order to avoid undue burden on some group members.
If due to any reason any member of the group is unable to participate in the assignment, it is
suggested that this member should contact me BEFORE the class personally or through email.
The participant will be provided extension or alternative.
ASSIGNMENTS
Group and individual assignments will be assigned related to each session. These assignments
are to be submitted in the beginning of the next session. Assignments should be uploaded on
Moodle before the deadline.
MID TERM PROJECT
Teams will be assigned a Midterm project in the third session. Your midterm project is a small
exercise for developing understanding about process strategy& analysis. For the project you are
required to choose one process of any company and do the following;
• Explain the process using process mapping techniques
• Identify the flaws in the existing processes
• On the basis of process analysis techniques learned in the class suggest improvements in
the process.
• Prove that your solution will improve the situation.

Dead line for the project submission is beginning of the 7th session. Teams will also be
required to present their projects in 15 minutes (including the time for questions and answers)
during the 8th session after the midterm.
QUIZZES
1. Quizzes may be taken unannounced
2. From a total of (n) quizzes, best (n -1) quizzes may be considered for the final grade.
3. No make-up quizzes will be allowed.
USE OF MOBILE PHONES AND OTHER ELECTRONIC DEVICES
1. Use of mobile phones and any other electronic device (except calculators) is prohibited
during the class time.

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2. All mobile phones should be turned-off and secured in pockets or bags during the class
time, and may not be used for ANY purpose, including calculations, time-keeping, etc
COUNSELING HOURS
Counseling hours will be displayed on the office door after the first week. Please follow the
displayed timings for your visits. In case you need time other than the counseling hours, you
may take the appointment through email.
If you find the course difficult I suggest that you should contact me in the first quarter of the
course. Because the concepts usually build upon each other, understanding the basics is
absolutely necessary.

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 Course Content
Learning Outcomes Assessment
Week Topics Chapters
Tools
OPERATIONS & PRODUCTIVITY Define OM, Understand the role of
Role of Operations Management (OM) as one OM in business Management
of the Three Core Functions in an Understand the role of productivity in
1 Organization History of OM, Significant 1 Operations
Assignment
Contributions in field of OM, Future trends in Calculate single factor and multifactor
OM, , Difference b/w goods and services, productivity
Productivity
Define mission and strategy, Identify
OPERATIONS STRATEGY IN GLOBAL and explain three strategic
ENVIRONMENT approaches to competitive
Developing Mission & OM Strategies, Critical advantage, Identify and define the 10
2 Success Factors (CSF), Aligning Core 2,4 decisions of operations management,
Competencies with CSF, Ten OM Decisions Identify and explain four global
DESIGN OF GOODS & SERVICES operations strategy options Assignment
Issues for product design Understand design issues in products
and services
Describe four production process Presentations
PROCESS STRATEGY
strategies, Compute crossover points ,
Four Process Strategies, Process Analysis and
for different processes, Describe Assignment,
3 Design, Process Mapping, Flow Diagrams, 6
customer interaction in process Project
Process Charts, Service process design,
design, Ability to analyze and improve Assignment
Process Re-engineering
a process Class Activity
Define capacity, Determine design
CAPACITY PLANNING
capacity, effective capacity, and Presentations
Design & Effective Capacity, Capacity
utilization, Compute break-even, ,
Cushion, Capacity considerations, Managing
Apply decision trees to capacity Assignment,
4 demand, Capacity Planning, Leading vs Sup-6
decisions, Compute net present Case
Lagging Strategies, Single & Multiple Product
value, Understand the Submission &
Break Even Analysis for Capacity Planning,
appropriateness of different Discussion
Using Decision Trees for Capacity Decisions
strategies for capacity enhancement.
LOCATION STRATEGIES Identify and explain major factors
Factors Affecting Location Decisions, that affect location decisions, Apply Presentations
Methods for Evaluating Location Alternatives, the factor-rating method, location ,
Factor Rating Method, Load-Distance break-even analysis and center-of- Assignment,
5 7
Methods, Center of Gravity Method, Using gravity method Case
Linear Programming Transportation Models Discussion
for Location Decisions, Service location
Strategy
Discuss important issues in different
types of layouts, modern warehouse
management and terms such as
LAYOUT STRATEGIES
cross-docking, and random stocking,
Types of Layout, Layout Design, Fixed
Identify when fixed-position layouts
Position Layout, Process- Oriented Layouts, Presentations
6 8 are appropriate, Explain how to
Office Layout, Retail Layout, Repetitive and ,
achieve a good process-oriented
Product-Oriented Layout, Assembly Line Assignment,
facility layout, Define product-
Balancing
oriented layout , balance production
flow in a repetitive or product-
oriented facility

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 Introduction to various concepts
related to supply chain management. Presentations
,
7 Supply Chain Management
Project
Submission

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MIDTERM EXAM
PROJECT PRESENTATIONS
Conduct an ABC analysis
INVENTORY MANAGEMENT Explain and use cycle counting
Role of Inventory in Operations, ABC analysis, Explain and use the EOQ model for Presentations
9 Record accuracy, Cycle counting, Inventory 11 independent inventory demand ,
Models, Fixed Period Systems, Continuous Compute a reorder point and explain Assignment,
Review Systems, Basic EOQ Inventory Model safety stock
Apply the production order quantity
INVENTORY MANAGEMENT model, Explain and use the quantity
Safety Stock, Service Level, Probabilistic discount model, Understand service
Presentations
Models: Constant Lead Time (LT)-Probabilistic levels and probabilistic inventory
10 11 ,
Demand Models, Probabilistic LT-Constant models
Assignment,
Demand Models, Probabilistic LT-Probabilistic
Demand Models, and,
Define aggregate planning, Identify Presentations
AGGREGATE PLANNING strategies for developing an ,
The planning Process, AP Strategies, Level aggregate plan, Prepare AP using
11 12 Case
Strategy, Chase Strategy, Methods for AP, AP chase, level and mixed strategies, Submission &
in Services Understand yield management Discussion
MATERIAL REQUIREMENTS PLANNING (MRP) Develop a product structure, Build a
Presentations
& ERP gross requirements plan, Build a net
,
Master Production Schedule, Bill of Materials, requirements plan, Determine lot
12 13 Case
MRP structure, MRP Tables, Lot Sizing sizes for lot-for-lot, EOQ, and PPB,
Submission &
Techniques, Extensions of MRP, MRP in Describe MRP II, Describe closed-loop
Discussion
Services, Enterprise Resource Planning (ERP) MRP, Describe ERP.

Define just-in-time, TPS, and lean

JIT & LEAN OPERATIONS operations, Define the seven wastes Case
13 JIT layout, inventory, Scheduling and quality. 15 and the 5Ss, Explain JIT partnerships Discussion
Lean operations

Explain the relationship between

short-term scheduling, capacity
SHORT TERM SCHEDULING
planning, aggregate planning, and a
Strategic Importance of Scheduling,
master schedule, Draw Gantt loading
Scheduling Process-focused Facilities, Loading
14-15 13 and scheduling charts, Apply the Assignment
Jobs, Sequencing Jobs, Finite Capacity
assignment method for loading jobs,
Scheduling, Theory of constraints, Scheduling
Name and describe each of the
repetitive facilities, Scheduling Services
priority sequencing rules, Use the
cyclical scheduling technique