ISOM 2700 Syllabus - HKUST Business School

Course Description
ISOM 2700 OPERATIONS MANAGEMENT
Spring 2012
Department of Information Systems, Business Statistics &
Operations Management
Operations Management studies the critical business processes by which inputs of materials,
labor, capital and information are transformed into products and services which customers
want and are willing to pay for. This course will provide you with the concepts and tools
needed to understand and articulate the impact of an organization’s business processes, and
the ability to analyze and continuously improve these business processes to make things work
better, faster and cheaper.
Learning Goals
This course is designed in such a way that, after completing it, you will be able to 1
1. Describe the design and delivery of product/service in different organizations and
evaluate the systems for measurement and improvement of operations. [1,4]
2. Identify and select crucial variables and measurements in decision modeling. [1]
3. Identify and describe operations management as one of the core business functions. [3]
4. Integrate operations management with other business functions to support a coherent
corporate strategy. [3]
5. Determine how operation management decisions impact other business functions. [3]
6. Identify a wide range of contemporary and pervasive business issues, as well as
technology advancement that impact the management of operations. [4]
7. Apply a range of appropriate quantitative and qualitative methods and tools to solve
business problems in which the management of operations is a critical issue. [4,7]
8. Discuss the role of operations management in sustainability and social responsibility. [8]
Class Schedule
Teaching Staff
ISOM2700 L1: Tue and Thu 9:00 – 10:20 at Room 3007
ISOM2700 L4: Tue and Thu 10:30 – 11:50 at Room 3007
Instructor: Man Yu (manyu@ust.hk)
Office: Room 4426 (Lift 17-18)
Phone: 2358-7728
Office hours: Tuesday 15:30 – 17:30 pm or by appointment
Teaching Assistant: Elvis Lee (imelvis@ust.hk)
Office: Room 4351 (Lift 13-15)
Phone: 2358-8543
Office hours: Monday 14:30 – 16:30 pm or by appointment
1 The numbers at the end of each learning goal refer to the goals in the Program Intended Learning Objectives
for the OM BBA Program (http://ihome.ust.hk/~bbaom/program/PILO_BBAOM%20_Aug26_.pdf).
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ISOM 2700 Syllabus Spring 2012
Course Materials
1) Two recommended textbooks:
Jacobs and Chase, “Operations and Supply Management”, McGraw-Hill, 2009.
Slack et.al, “Operations and Process Management”, Prentice Hall, 2009.
Note: It is not required to buy the textbooks, but it is good to have at least one of the two
books for study reference.
2) Notes and reading materials from course website at LMES (http://lmes2.ust.hk).
Performance Evaluation
Quiz 1 – Feb 28 (Tuesday) 20%
Quiz 2 – April 10 (Tuesday) 20%
Cumulative Final Exam 50%
Class Participation 10%
(1) Both quizzes last for 80 minutes and take place 7:00 – 8:20pm on the quiz date.
(2) The final exam lasts for 3 hours and takes place on the university assigned exam date.
(3) The quizzes and the final exam are closed book. One A4 size note sheet (2-sided) is
allowed for each quiz; Two A4 size note sheets (2-sided) is allowed for the final exam.
All note sheets must be handed in together with the quizzes and the final exam.
(4) Each quiz only tests materials that have not been tested in the other quiz.
(5) The final exam covers all materials in this course.
(6) Class participation is evaluated based on in-class exercises randomly distributed over the
semester. A total of six to eight in-class exercises will be assigned. For each student, the
five highest scores will be counted, each carrying 2% of the final grade.
Important Policies
1) All mobile phones and ringing devices should be turned off or silent in class.
2) Students who miss any of the exams will not be given “make-up” exams.
3) If you miss a quiz due to emergency, the weight of the quiz will be added to the final
exam only if convincing evidence is presented. Otherwise, a zero score will be given.
4) If you miss the final exam, the score for the final exam will be zero in any case.
Academic Honor Code
Personal integrity and professionalism are fundamental values of the university community.
To help ensure that these values are upheld and to maintain equitability in the evaluation of
your work, this course will be conducted in strict conformity with HKUST Academic Honor
Code (see http://www.ust.hk/vpaao/integrity/). Anyone caught cheating or plagiarizing will fail
the course and there will be no acceptable excuses.
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ISOM 2700 Syllabus Spring 2012
Module 0: Introduction and Overview
Course Outline
Feb 2 Introduction
Definition and strategic framework of Operations Management
Course structure and expectation
Module I: Performance Evaluation
Feb 7&9 Process Analysis
Terminology and tools used to describe, analyze, and evaluate processes
Process improvement and redesign
Feb 14&16 Quality Management
Concepts of TQM, quality control, and six-sigma
Acceptance sampling plan and process control charts
Module II: Strategic Design
Feb 21&23 Capacity Planning
Capacity planning concepts
Decision tree method
Feb 28 Quiz 1 7:00 – 8:20pm
Mar 1 Supply Chain Strategies
Bullwhip effects and counteracts
Match products with supply chains
Mar 6 Process & Layout Design
Process types and product-process matrix
Layout formats and assembly line balancing
Mar 8 Service Design
Service types and properties
Service positioning and design
Module III: Tactical Management
Mar 13&15 Project Management
Concepts of project management and CPM
Time-cost tradeoff problems
Mar 20&22 Response Time Management
Effects of variability and utilization
Queuing models
Mar 27&29 Resource Management
Linear programming: graphical methods and Microsoft Excel
Sensitivity analysis
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ISOM 2700 Syllabus Spring 2012
Apr 10 Quiz 2 7:00 – 8:20pm
Apr 12&17 Inventory Management
ABC classification, EOQ
Fixed-order quantity and fixed-time period models
Apr 19&24 Revenue Management
Newsvendor model
Applications: price differentiation, overbooking, buyback contract
Apr 26&May 3 Forecasting
Qualitative and quantitative forecasting techniques
Time series analysis
Linear regression
Module IV: A Comprehensive View
May 8 Lean & Green Operations
Lean manufacturing concepts and practices
Role of OM in social responsibility and sustainability
May 10 Course Review
Note: The instructor reserves the right to modify the course outline during the term
when needed.
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ISOM 2700 Syllabus Spring 2012
Topics with Book References
Lecture
No.
Topic
Book References (page range)
Jacob & Chase (the
Core, 1 st Jacob & Chase (the
Edition) Core, 2 nd Slack et al.
Edition)
1 Introduction and Overview 4 – 17 25 – 31 48 – 49, 53 – 56
2-3 Process Analysis 69 – 71 140 -146, 154 – 156 *
4-5 Quality Management 136 – 168 132 – 166 392 – 403, 412- 421, 443
6-7 Capacity Planning 53 – 70 44 – 56 248 – 268 #
8 Supply Chain Strategies 182 – 197 222 – 234
212-213, 218-219, 226, 232 –
235
9 Process & Layout Design 80 – 83, 85 – 93 72–73, 75– 81, 110 – 116, 118 – 119
10 Service Design 108 – 111 100 – 105 479
11-12 Project Management 22 – 40 179 – 203 498 – 515
13-14 Response Time Management 111 – 127 106 – 122 170 – 177
15-16 Resource Management 202 – 213, 380 – 399 250 – 260, 462 – 470 230 – 231
17-18 Inventory Management 312 – 314, 318 – 336
389 – 391, 396 – 408,
410 – 414
280 –291, 294 – 301
19-20 Revenue Management 298 – 299, 315 – 318 372 – 374, 393 – 396 264, 292 – 293
21-22 Forecasting 248 - 272
307 – 314, 320 – 331,
333 – 335
96 – 104
23 Lean & Green Operations 223 - 241 271 – 275, 280 – 288 350 - 367
* Some of the concepts may be defined differently in the book. Always follow the
definitions in the lecture notes.
# Supplementary readings
5