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Operations Management (BE-786)

  • Instructor Name: Dr. Nadeem Khan

Prerequisites For this Course:

None

Text Book(s):

  • Operations Management by William J. Stevenson Edition 12

Reference Book(s):

  • OPERATIONS MANAGEMENT (11th Edition) Jay Heizer’s (11th edition) Operations Management book offers a broad but comprehensive introduction and overview of the field of operations. 
  • COMPETING AGAINST TIME- HOW TIME BASED COMPETING IS RESHAPING GLOBAL MARKETS (This Operations Management book by George Stalk, Jr., and Thomas M. Hout, has helped thousands of business people to make the final leap to success.)
  • Operations Management: Processes and Supply Chains (11th Edition) (Operations Management- Processes and Supply Chains by Rejewski, Malhotra and Ritz man offers students and readers with a complete framework for managerial styles to operations management and addresses operational process and supply chain problems.)
  • The Goal: A Process of Ongoing Improvement (Written in a fast-paced thriller style, The Goal, a gripping novel, is transforming management thinking throughout the world. It is part of the Operations Management books that I recommend for everyone.)
  • Execution: The Discipline of Getting Things Done (Larry Bossidy & Ram Charan’s ‘’The Discipline of getting things done’ has helped thousands of businesspeople to make the final leap to success.)
  • Operations Strategy: 3 (Third) Edition (This Operations Management book provides a comprehensive focus on the interaction between operational resources and external requirements. Companies such as Apple, Google and Tesco have transformed their prospects through the way they manage their operations resources strategically, turning their operations capabilities into a formidable asset.)
  • Operations Research: M. H. Taha

Course Description

Operations Management (OM) is concerned with the management of resources and activities that produce and deliver goods and services for customers.  Efficient and effective operations can provide an organization with major competitive advantages since the ability to respond to customer and market requirements quickly, at a low cost, and with high quality, is vital to attaining profitability and growth through increased market share.  As competition becomes fiercer in an increasingly open and global marketplace, a company’s survival and growth become greatly contingent on its ability to run its operations efficiently and to exploit its resources productively.

The course focuses on the basic concepts, issues, and techniques for efficient and effective operations.  Special emphasis is placed on process improvement and supply chain management. Topics include operations strategy, product and service design, process design and analysis, capacity planning, lean production systems, materials and inventory management, quality management and six sigma, project management, and supply chain management.

Course Objectives

By the end of this course, students should be able to:

  • Understand the strategic role of Operations Management (OM) in building and sustaining competitive advantages.
  • Comprehend the fundamental concepts, issues, and techniques in OM for both manufacturing and service organizations.
  • Recognize the interdependence between OM and other functional areas (e.g., marketing, finance, HR).
  • Develop and apply analytical, quantitative, and problem-solving skills to address operational challenges.
  • Evaluate process improvement and supply chain strategies for efficiency and effectiveness.

Learning Outcomes

After successfully completing this course, students will be able to:

  • Explain the principles and scope of operations management and its role in achieving organizational goals.
  • Analyze operational problems using quantitative techniques such as linear programming, queuing theory, and simulation.
  • Design inventory, project, and supply chain management systems to improve operational performance.
  • Apply quality management tools (e.g., Six Sigma, TQM, Kaizen) to enhance product/service quality.
  • Evaluate different operations strategies and propose appropriate solutions to real-world business cases.
  • Integrate operations management decisions with overall business strategies to achieve competitive advantage.

Lecture Plan

Week Topic Activity/CLO Case
1 Introduction to Operations Management

  • Why Study OM
  • Functions within Business Organization
  • The Scope of Operations Management
  • Trends in Business

·          

 Reading Material with Home Assignment

CLO 1 & 2

 Toyota Production System: Foundations of Modern OM

 
2 Competitiveness Strategy, and Productivity Reading

 

CLO 2, 5

 Southwest Airlines: Low-Cost Competitive Strategy

 
3 Linear Programming

·         Linear programming Models

·         Graphical Linear programming

·         The Simplex method

·         Tools (Tora, Solver)

·         Tora and Solver

·         Sensitivity Analysis

 Exercise/Numerical

Assignment

 

CLO 2, 5

  

Optimizing Production at Delta Steel Using LP

 
4 Project Management

·         Project life cycle

·         Work Breakdown Structure

·         Planning and Scheduling with Gantt Charts

·         PERT and CPM

  

 

Case Study

 

CLO 2 & 5

  

 

Delhi Metro Construction Scheduling

 
5 Project Management

·         Deterministic Time Estimates

·         A Computing Algorithm

·         Probabilistic Time Estimate

·         Time-Cost Trade Offs: Crashing

  

 

Quiz

 

CLO 2 & 3

  

Zara: Rapid-Fire Fulfillment System

 
6 Forecasting

Time Series Model

Linear Regression Models

Naïve Forecasting

 Numerical Exercise

 

CLO 2

  
7 Work Design and Measurement

Principles of Job Design

Ergonomics and Human Factors

Work Measurement Techniques

Productivity and Efficiency Analysis

Designing for Well-being and Safety

 

  

 

 

CLO 1, 3

  

 

Toyota Production System
8 Inventory Management

  • Nature and Importance of Inventory
  • Requirements for Effective Inventory Management

 

  

 

CLO 2, 3

  

 
9 Inventory Management

  • Models: EOQ, EPQ, Discounted
  • The single period Model
  • Operations Strategy
  • Numerical
  

Case Study

 

CLO 3, 5

  

Walmart’s EOQ-Based Inventory Model

 
10 Supply Chain Management

  • The Need for Supply Chain Management
  • Benefits of Effective Supply Chain Management
  • Creating and Effective SC
  • POCKET Analysis
  

 

 

Case Study

 

CLO 3, 5, 6

  

 

Apple’s Global Supply Chain Model

 
11 LOGISTICS

  • Delivering the Goods
  • Transportation:
    • Northwest Method
    • Least Cost Method
    • Modified Distribution for Optimal Solution
 Practice / Quiz

 

 

CLO 2, 4

  

 

DHL: Optimizing Logistics Network
12 Waiting Lines

  • Why is there Waiting?
  • Managerial Implications of waiting lines
  • Goals of Waiting LINE Analysis
  • System Characteristics
  

 

CLO 2, 3

 

On site Assignment

  

 

KFC, McDonald’s Queue Management System

 
13 AI-Enhanced Risk Management

  • Identifying operational and reputational risks through AI.
  • Early-warning systems using AI in logistics and production.

 

  

 

CLO 4, 5

  

Using machine learning for more accurate demand prediction.
 Case Study: Walmart
14 Simulation

  • Introduction
  • Steps in the Simulation Process
  • Monte Carlo Simulation
  • Computer Simulation
  • Advantages and Limitations of Using Simulations
  

Lab Assignment

 

CLO 2, 5

  

 

Simulating Call Center Operations for Staffing

 
15 TQM and Quality Tools

  • Introduction
    • Obstacles to Implementing TQM
    • Quality Philosophies of Gurus
    • Various Quality tools
      • Six Sigma
      • 5Ss
      • Kaizan
  

 

 

Reading

 

 

CLO 4, 5

  

 

 

 

Motorola’s Six Sigma Implementation

 
16 Project Presentation CLO 2,3,4,5  

 

Project Description

Students will select a real or simulated organization (manufacturing or service) and perform a comprehensive operations audit. They will identify operational challenges, analyze data using quantitative tools, and propose an optimization plan that improves efficiency, quality, and cost-effectiveness.

Key Components

  1. Company Profile & Process Mapping
    • Describe the organization, its products/services, and core processes.
    • Develop a process flow diagram showing major operational steps.
  2. Operations Analysis
    • Evaluate current performance in areas such as:
      • Capacity Planning (identify bottlenecks).
      • Inventory Management (calculating EOQ, safety stock).
      • Supply Chain Management (map suppliers, logistics).
      • Waiting Line Issues (apply queuing theory if applicable).
  3. Quantitative Modeling
    • Use at least two techniques from the course:
      • Linear Programming (e.g., cost minimization, production mix).
      • Simulation (e.g., Monte Carlo for demand variation).
      • Project scheduling (PERT/CPM for product launch).
  4. Quality and TQM Assessment
    • Identify existing quality control mechanisms.
    • Suggest appropriate tools (e.g., Six Sigma, 5S).
  5. Improvement Plan & Expected Impact
    • Recommend changes to improve operational efficiency.
    • Estimate potential cost savings, time reduction, or quality improvements.
  6. Final Deliverables
    • Written Report (15–20 pages) including data analysis, charts, and recommendations.
    • Presentation (10–12 minutes) summarizing findings and solutions.

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