Operations Management

Welcome to SCM B370 Operations Management! This ten-credit, one-year undergraduate course within HKMU's Bachelor of Business Administration programmes introduces you to concepts, principles, and analytical tools that will help you understand and analyse various aspects of operations management. This course focuses on management of both manufacturing and service operations with a view to improving quality and productivity and reducing operation costs.

China has earned the title of 'the world's factory floor' mainly because of its comparative advantage in terms of its cheap labour force. However, the cheap labour argument may not hold for the long term because of the constantly increasing wages across the provinces. In order to maintain a high level of sustainability, continued improvements in production processes and quality must be made. Many essential concepts of production and operations management are in fact designed to help organizations to keep up with the increasing demand for productivity and quality. This course emphasizes both the theories and the applications. The underlying logic of the techniques for operations management will be examined to enable you to understand the principles upon which your approach and strategies to operations management are based.

SCM B370 is delivered using a custom textbook, supplemented by a Study Guide and face-to-face tutorial sessions.

Course aims

The overall aims of SCM B370 Operations Management are to:

• Provide you with a contemporary overview of operations management and its strategies.
• Equip you with the concepts and decision-making tools which underpin quality and productivity.
• Extend your existing knowledge of production and process management, and your capacity to apply problem-solving tools and modern methodologies to optimize systems in both the manufacturing and service sectors.
• Enlighten you on the contemporary challenges and issues faced by operations managers, and the approaches needed to model these issues strategically and mathematically.

Course learning outcomes

Upon completion of MKT B370 Operations Management, you should be able to:

• Discuss the role of operations strategies and formulate them to improve competitiveness.
• Plan ways to develop products, services and processes to achieve higher operational efficiency and profitability.
• Design production plans and controls to meet different forms of demand.
• Apply decision-making tools and methodologies for refining and optimizing operations and systems.

In this custom textbook approach, different learning modules have been carefully selected by the course team from various textbooks on operations management and organized into six volumes specifically designed for SCM B370 students. By incorporating the latest editions of book chapters, cases, exercises and self-tests from different texts, the custom textbook provides you with coverage of the developments in operations management and strategy that underpin business success in the area.

In addition to the customized textbook, you will be working through the course using an HKMU-produced Study Guide. The Study Guide leads you through your study pathway unit by unit, providing commentary on each textbook chapter and supplementary self-assessment opportunities.

The third main place you will refer to for learning resources during the course is HKMU's Online Learning Environment (OLE). There, you will have access to multimedia materials such as PowerPoint slides, and you will be able to discuss topics with other students and your tutor on the course discussion board.

This course is further supported by regular live online tutorials.

To start off, you should read the Study Guide for the course. Then turn to the custom textbook as indicated in the Study Guide for further reading as you work through the course.

The custom textbook

The chapters of the SCM B370 custom textbook are selected from the following textbooks:

• Jacobs, F R and Chase R B (2021) Operations and Supply Chain Management, 16th Global edn, McGraw-Hill Education.
• Stevenson, W J and Chuong, S C (2021) Operations Management, 14th edn, McGraw-Hill Education.

The Study Guide will indicate clearly at which point you should read each chapter of the custom textbook.

The Study Guide

The Study Guide sets out your study pathway through the customized textbook and other course learning resources, and provides supplementary material and additional self-assessment opportunities. You'll therefore need to keep it by your side as you work through the course.

The Study Guide is divided into ten units. The titles of the units and the textbook chapters they will cover are set out in the following table.

E-Library E-Reserve readings

In the Study Guide, you may be instructed to read articles in the E-Library E-Reserve. To read these items, go to the University's E-Library and click on 'E-Reserve'. Log in, click 'Accept/Agree' on the Copyright Restrictions page, fill in the 'Course Code' box, and click 'Search'.

The Online Learning Environment (OLE)

A dedicated area for SCM B370 students has been set up in HKMU's OLE. You will need to log on regularly to the OLE to access the course discussion board and online learning components such as PowerPoint slides.

Learning support

Students will be supported throughout the course by regular live online tutorials. Details of the dates and times of these sessions can be found in the Presentation Schedule on the OLE.

Assessment

This course is designed to assist you in moving easily from stated objectives, through the study units, readings and materials, to the assignments. You will be expected to apply concepts and techniques acquired during the course when completing your assignments. You will also undertake regular activities and self-tests while working your way through the study units, textbook, and readings.

Formative assessment includes various activities and self-tests that you will undertake while working your way through the study units, textbook and readings.

Summative assessment consists of assignments and a final examination.

Assessment summary

The summative assessment items are outlined in the following table.

Assignments

There are three compulsory assignments for the course.

• Assignment 1, worth 10% of the total marks for the course, evaluates material covered in Units 1 to 3 and is due at the end of Unit 3.
• Assignment 2, worth 15%, evaluates material covered in Units 4 to 6 and is due at the end of Unit 6.
• Assignment 3, worth 15%, evaluates material covered in Units 6 to 9 and is due at the end of Unit 9.

How to submit assignments

You must use word processing software (such as Microsoft Word) to prepare the assignments, and submit the assignments via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.

Failure to upload an assignment in the required format to the OLE may result in the score of the assignment being adjusted to zero.

Assignment submission extension policy

The assignment policy of the University as stated in the Student Handbook should beobserved. You are required to submit assignments for this course in accordance with the datescommunicated by your Course Coordinator. You may apply for a submission extension on thegrounds of illness, accident, disability, bereavement or other compassionate circumstances.

Applications for extensions must be submitted online via the OLE. Please note the following:

Supporting documents must be submitted to justify applications for extensions of over seven days.

• Applications for extensions should normally be lodged before or on the due date.

• Applications are considered by:
  • your tutor for extensions of up to seven days;
  • the Course Coordinator for extensions of 8 to 21 days; and
  • the Dean for extensions of over 21 days.

After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.

According to the University's policy, no extension of the due date will be allowed for the final assignment. This policy will be strictly enforced. Any late submission of the final assignment will result in the score of the assignment being adjusted to zero.

Examination

The final examination for SCM B370 Operations Management will be of two hours' duration and is worth 60% of the total course grade. The examination will consist of questions that reflect the types of practice exercises and assignments students have previously experienced, covering Units 1 to 10.

The following table gives a general overview of the course structure. It suggests the amount of time you should allow for completing units and provides a broad schedule for you to plan your work. This estimation includes time for reading the units and custom textbook, completing activities, self-tests, assignments and attending live online tutorials.

Case studies are a useful and increasingly popular form of learning and assessment in HKMU's School of Business and Administration. In this section we will look at why case studies are used and then suggest some learning strategies that you can use to approach case studies. We will also briefly discuss some problems that you may encounter as you learn from case studies.

What is a case study approach to learning?

One main purpose of a case study is to explore an issue or a number of issues in relation to an organization. The intention is to get you to carefully diagnose an organization; to focus on key problems, and to suggest how these might be resolved. Often the case is a real-life account of an organization which you are required to analyse in order to focus on a problem. Usually, the information that is provided is incomplete and you are often expected to observe developments in the organization over a period of time. The case study approach is an excellent opportunity to actively apply material that you have read and conceptual knowledge to the reality of an organization.

At HKMU, case studies may be used as part of assignments, exams, study units, or day-school exercises. You normally are given some information about a company (this could be both text and graphical information, such as figures and tables). You are then asked to think about some problems related to the company and to use concepts and apply theories that you have learned in your course to propose possible solutions for the company.

Let's have a look at two kinds of case study questions that you might be asked to work through in your courses. The first example is quite structured, while the second is much more open-ended.

Two examples of case study questions

1. Read the case study entitled 'ABC Consultants' and consider the following issues:
   • Using your understanding of the resource-based model, what measures could be taken to improve ABC's returns?
   • Drawing on your broad understanding of the consultancy industry, assess ABC's relative competitiveness and its profit potential.
   • To what extent do internal factors account for ABC's financial weaknesses?
   • Based on your assessment of ABC's financial weaknesses, formulate a new strategic intent and develop a mission statement for ABC.
2. Read the case study entitled 'XYZ Industries'.
   • Identify the key problems that are currently faced by XYZ's management.
   • Propose viable solutions to these problems.

Why case studies?

As you can see from the above examples, a case study approach to learning requires a great deal of thinking and often will not easily yield a quick 'wrong' or 'right' answer. However, case studies are also good preparation for dealing with real-life business problems. Cases may be short and relatively simple, or longer and complex. The purpose is the same for both types: to give you an opportunity to develop your skills in analysing the strengths and weaknesses of the organization under examination, to consider the processes at work within the organization, and to make decisions about future actions.

Case studies are not meant to replace textbooks, but rather to ask you to draw connections between theories and practice and to apply abstract ideas, concepts, and principles to specific concrete situations. Consequently, case analysis develops a number of skills that are crucial in business. In particular, they help you to:

• analyse complex, unstructured, sometimes ambiguous situations;
• identify critical issues and problems;
• question your own and others' assumptions;
• improve your problem-solving skills;
• develop your ability to find alternatives and make informed decisions;
• make decisions with incomplete information and think strategically;
• self-educate yourself and draw on a broad range of resources and knowledge; and
• present and justify recommendations in writing.

You may find that there are many possible 'right' answers to the questions in a case study. This illustrates that there is often no single best way to responsibly manage and solve real-life business problems.

Some guidelines for analysing case studies

The following strategies should help you to successfully analyse case studies:

1 Read the case and become familiar with the facts

First, skim read the case to obtain a general understanding of the main point(s). Highlight or underline the pertinent points as you read.

Read the case again, and this time note down critical facts (such as names, time sequences, and where events occurred). Try to understand how events have influenced decisions. Identify the important individuals or stakeholders, and try to assess the importance of supporting information in the case. How reliable is this supporting information? Are there any gaps in the information that is given?

Make a note of any questions that you have as you read the case.

2 Assess the context of the case

Try to understand the environment of the organization and the wider context of the case.
Ask yourself questions about:

• The state of the organization: What is the state of this organization: good, bad or in-between? Usually this involves thinking about interpersonal relationships, and assessing production or financial problems.
• Key players and systems: How do systems and people operate in this organization? Why do they operate like this? Are the systems undergoing change? How successful are the changes? Is there someone who could sabotage any future strategy? Is there someone who can ensure the success of a future strategy?
• Significant trends: How does this industry operate? What are the main or unique characteristics of the industry? What were they five or ten years ago, and what are they likely to be in the future? What impact are trends likely to have on the organization under investigation? How does this organization's performance compare with that of competitors?
• Constraints: Clearly identify all constraints in the case. A constraint may be viewed as anything (usually beyond the control of the organization) that may prevent an otherwise feasible course of action from becoming a success. What is outside the control of individuals in the case study? For example, it is unlikely that any company or individual in Hong Kong could prevent a foreign government from imposing tariff barriers on imports.

A SWOT analysis is a good way to get a better understanding of the organization and the context or environment in which it is operating.A SWOT analysis considers the Strengths and Weaknesses of the organization, and the Opportunities and Threats which the organization faces in the external environment.

3 Recognize the case's symptoms

Read the case again and as you read, try listing all the symptoms of the case. The symptoms of a case are not the problems, but they may help you to identify the problems. Symptoms are all the things that are undesirable or that are not as expected. For example, falling sales could be a symptom of several problems such as poor market segmentation, poor product quality, or problems in a supply chain. At this stage of your analysis, you should just try to observe all the symptoms, and avoid prematurely identifying problems or suggesting solutions. Like a doctor who consults a patient, you first need to observe and note all the symptoms before you can give a definite diagnosis of the problem. Think about how the symptoms may be interrelated. Relationship diagrams, like the one below, may help you to see the relationships between symptoms.

4 Diagnose the case's problems

After you have a good sense of the symptoms, you're ready to determine key issues that need to be analysed more closely. You are now diagnosing the situation, like a doctor diagnosing a patient's symptoms. Ask yourself 'what seems to be the trouble in this organization?' and make a list of what you now perceive to be the key problem(s). You will probably need to go back to the details of the case and as you do this, you may add to or refine your list of potential problems.

If there are several problems, you need to order and prioritize them. You might want to number problems according to how you perceive their importance, or make a matrix, like the one below, which shows relationships between various criteria and each problem.

Also try to establish if there are relationships or themes in common among the various problems. Perhaps different problems in your list are actually variations of a broader central problem.

Ask yourself what assumptions you have made about the case. Are these assumptions reasonable, and are they supported by the facts? Would other people objectively suggest the same problems, based on the facts that you have? Are you suggesting problems that are not supported by the facts of the case?

After you have considered and put into order the possible problems and questioned your assumptions relating to these problems, you should write a statement of the problems as you perceive them. Avoid suggesting solutions at this stage.

Once you have a problem statement, you need to find evidence in the case to support your problem diagnosis. Also, try to identify ideas, concepts and theories from your textbook and course units which help to explain what is happening in the case.

5 Formulate criteria for a 'good' solution and identify possible constraints to solutions

Before you propose a solution, you need to consider the characteristics of a 'good' solution. Obviously, your solution should bring benefits such as improved productivity, reduced costs or greater profits. However, it also needs to be viable and to accommodate the constraints that you have already identified, i.e. Is the solution legal? Is there a budget for this solution? Does it conflict with the organization's culture?

Try to brainstorm alternative solutions. Aim to generate a broad and creative range of options and then try to rate each according to various criteria.

The following matrix demonstrates how this can be done.

Also refer to ideas, concepts and theories from your course materials as you consider and assess each possible solution.

It's often wise to propose a solution that allows for plausible alternatives if it should fail. Managers use the term satisfice when they are considering acceptable alternative solutions, that is, the solution is able to satisfy the situation while also making some realistic sacrifices to existing constraints. Therefore, it is a satisficing rather than a maximizing solution.

Finally, don't forget to consider the possibility of taking no action. What will actually happen if no action is taken? Are any (or all) of the solutions less viable than taking no action at all?

6 Recommend a viable solution

After you have assessed the merits and pitfalls of each alternative solution, select the best solution for the situation.

Remember that the solution needs to be viable. Can the recommended solution be introduced? Are there the resources and the willingness to implement it? Be realistic about what may work. Explain why it is the best solution within the constraints of the existing context and explain how it can be applied to the organization. Suggest a time-frame for the solution's implementation.

Outline possible strategies for implementing your solution, either partially or completely. As many feasible courses of action as possible should be considered before you choose the one that seems the most likely to succeed. The more ideas you have, the greater your chance will be of finding a solution that will work well. The complexity of most organizational problems means that it is highly unlikely that one idea alone will correct the situation. Usually a combination of actions is required, and these need to be funded differently, timed carefully and staffed as necessary.

7 Present your solution as a written recommendation

Review your final solutions and then prepare a set of written recommendations. These should clearly outline your proposed solution in relation to the problems that you have identified. Your recommendations should also include details of why these solutions are the most appropriate given the circumstances and constraints of the case. Finally, you need to clearly state how and when your proposals will be implemented.

Your tutor and your course Assignment File can provide some guidelines on how to present your recommendations.

Some mistakes to avoid as you analyse cases

When you first tackle case studies, you should be careful to guard against the following mistakes:

1. One of the most common mistakes made in case analysis is repeating or simply summarizing the facts of the case. Your tutor is already very familiar with the case details, so you do not have to restate them. You are required to use and analyse the facts, not repeat them. Your analysis should contain only enough case material to support your arguments. Therefore, be analytical!
2. You may often be tempted to just deal with symptoms and ignore the causes of the problem. It is very important to analyse the background of the case (and the climate in which the events of the case unfold).
3. Avoid discussing problems in isolation and do not overlook their interrelatedness. If you try to think in terms of 'systems' rather than in terms of individual problems, you are more likely to avoid this pitfall.
4. Students often fail to state the assumptions underlying their analysis. If any important assumptions have been made, have you questioned them and are they reasonable and appropriate? Avoid selectively using and interpreting case material in order to justify a preconceived solution.
5. Practical limitations and constraints may sometimes be overlooked. For example, a recommendation that a whole team be fired is probably unrealistic.
6. A very common mistake is poor integration of the facts in the case with the concepts, principles, and theories in the textbook. Such integration is vital. Ask yourself if relevant theories from your course have been fully and constructively applied.
7. Finally, recommendations are too often not spelled out in detail or are unrealistic. A timetable for implementing them is also often not given.

Analysing cases poses many challenges, and this is one reason the case study method is so rewarding. It is a very active form of learning. It offers you a risk-free opportunity to gain managerial and organizational experience and should greatly increase your confidence to make informed decisions in the real world.

Good luck and we hope you enjoy working through the cases that you encounter!

SCM B370 Operations Management presents different operational approaches and tactics that operations managers can adapt. You will learn about how to design, organize and manage operations; and how to arrange resources and processes to maximize output and productivity. Managing every part of the transformation process strategically allows an organization to achieve its objectives more effectively, and can enable it to improve product quality and customer satisfaction without sacrificing productivity, profitability or sustainability. Eventually, you should be able to apply the concepts and principles learned in the course to your own experiences and observations.

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to your Student Handbook. If you have applied for deferment of studies you should continue with your studies of this course and submit the required assignments until formal approval is given by the University.

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