Master of Business Administration Operations Management STUDY GUIDE Copyright © 2016 MANAGEMENTCOLLEGE OF SOUTHERN AFRICA All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines, without the written permission of the publisher. Please report all errors and omissions to the following email address: [email protected] Operations Management MANCOSA – MBA Year 1 1 Operations Management TABLE OF CONTENTS Section Title of Section Page Introduction 3 1 Operations and Productivity 7 2 Operations Strategy in a Global Environment 26 3 Total Quality Management 38 4 Forecasting 54 5 Design of Goods and Services 72 6 Process Strategy and Capacity Planning 84 7 Location Strategies 102 8 Human Resources, Job Design and Organisational Effectiveness 117 9 Supply Chain Management 139 10 Inventory Management and JIT Systems 151 11 Aggregate Scheduling 167 12 Materials Resources Planning (MRPII) 177 13 Project Management 193 14 Bibliography 207 MANCOSA – MBA Year 1 2 Operations Management SECTION INTRODUCTION MANCOSA – MBA Year 1 3 Operations Management AIMS OF THIS MODULE The broad aims of this module are to: Understand the nature and scope of operations management functions Assess the requirements for making decisions related to each part of the operations function Make effective managerial decisions in order to ensure that effective utilisation of resources is achieved Understand how operations management decisions can influence the overall strategic objectives of an organisation Explain how effective operations strategies are developed. MANCOSA – MBA Year 1 4 Operations Management How to Use This Module This module should be studied using this unit and the recommended textbook(s). You should read about the topic that you intend to study in the appropriate chapter before you start reading in detail in the recommended textbook(s). Ensure that you make your own notes/summaries as you work through both the textbook(s) and this module. At the commencement of each chapter you will find a list of objectives. These objectives outline the main points that you should understand when you have completed the chapter with its accompanying section(s). Avoid reading all the material at once. Each study session should be no longer than two hours without a break. In the course module chapter, you will find the following symbols and instructions. These are designed to help you study. SELF-ASSESSMENT ACTIVITY You may come across self-assessment questions which will test your understanding of what you have learnt so far. Answers to these questions are given at the end of each chapter. You should refer to the textbook(s) when attempting to answer the question. ACTIVITY You may come across activities which ask you to carry out specific tasks. In most cases there are no right or wrong answers to these activities. The aim of these activities is to give you an opportunity to apply what you have learnt. MANCOSA – MBA Year 1 5 Operations Management READING At this point you should read the suggested reference. ? THINK POINT A think point asks you to stop and think about an issue. Sometimes you are asked to apply a concept to your own experience or to think of an example. READING The core texts for this module are: Heizer J and Render B (2014). Operations Management (11th Edition). New Jersey: Prentice Hall. Schroeder G, Goldstein S & Rungtusanatham M.J. (2011) Operations Management (5th Edition - International Edition) USA: McGraw Hill. Module Assessment Assignment You will be required to complete and submit an assignment. This assignment is assessed as part of your coursework. Therefore, it is very important that you complete it. Examination An examination will be written at the end of each semester. The assessment strategy will focus on application of theory to practice. MANCOSA – MBA Year 1 6 Operations Management SECTION 1 OPERATIONS AND PRODUCTIVITY MANCOSA – MBA Year 1 7 Operations Management CONTENTS Introduction to Operations Management The History of Operations Management Significant Events in the Field of Operations Management Why Study Operations Management? The Functions and Duties of Operations Managers Ten Critical Decisions of Operations Management Operations and Productivity Exciting New Trends in Operations Management Operations in the Service Sector Productivity. MANCOSA – MBA Year 1 8 Operations Management LEARNING OBJECTIVES After working through this section you should be able to: Outline the purpose and scope of Operations Management Understand what Operations Managers do Explain the differences between goods and services Calculate the Productivity of your organization Understand how to improve productivity within your organization. MANCOSA – MBA Year 1 9
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