MGMT20002 Managing Processes and Projects
Lecture 1 – Introduction to
Operations/Processes Management
Misagh Alidost
Department of Management and Marketing
Faculty of Business and Economics
The Spot, Level 6
alidostm@unimelb.edu.au
• 11 lectures + 1 revision
• 11 tutorials (Start in WEEK 2)
• 2 recommended textbook
– Heizer, J. and Render, B. (2020), Operations Management,
13th edition, Pearson
– Larson and Gray (2018), Project Management: The
Managerial Process, 7th edition, McGraw-Hill.
• LMS
– Copy of lecture slides
– Copy of all subject related documents
• Tutorial exercises (essay & calculation)
• Quizzes (self-assessed multiple choice)
• Exam preparation (important equations & key topics)
Studying for MGMT20002
• Each week
– Prepare for lecture and tutorial:
• Read through equivalent book chapter(s)
– After lecture and tutorial:
• Attempt quiz
• Re-read, try problems for any part of lecture and
tutorial which is not clear
• Assessments
– An individual assignment: 20%
–A Group assignment: 30%
– A 2-hour closed book examination: 50%
Studying for MGMT20002
• The assignment will involve using process management concept and analytical
skills to solve process management problems.
• In this assessment, students should demonstrate sufficient understanding of the
theoretical principles, including problem identification, and the ability to draw
meaningful inferences based on the problem.
• This assignment will be available on LMS (Canvas) during week 6.
Assignment 1 is due During Week 6
Assignment 1 – Individual (20%)
• As a group you are required you to firstly choose a pair of companies (see the
choices provided). Choices:
A. Zara - H&M
B. Qantas – Jetstar
C. Aldi – Woolworths
D. Toyota - Tesla
• Next, you are expected to carry out a detailed analysis of the chosen companies
operating system and to examine its impact on the company’s overall
performance. In your report, the following questions need to be answered:
1. Critically analyse the operating system (or business model) adopted by your
chosen companies? A detailed discussion and comparison is expected. In your
discussion, you must also analyse the business models.
Assignment 2 – Group of 3-4 students (30%)
2. What key aspects of the business model have been attributed to each
company’s success? Provide ample support/evidence for your answer(s) and
claim(s). In your answer, you must also comment on the competitive
dimensions realised by the chosen companies and its importance for both
companies.
3. Develop a cause-and-effect diagram or the so-called fish-bone diagram for one
of the companies identifying potential problems that can make the company’s
customers dissatisfied. Based on your ongoing research, these would be any
significant problems that you see as current/ongoing and imminent or has been
highlighted by the company/media etc.
4. Applying the concepts of lean operations and JIT philosophy, discuss how
chosen companies are managing to reduce inventory, waste and increase
responsiveness. Based on your findings, what are your recommendations for
these companies continued success (discuss at least three recommendations
with one of them being centred around sustainability/triple bottom line).
Assignment 2 – Group of 3-4 students (30%)
Expected Contents of Report:
Introduction – brief companies background, description of the product/service,
justification of selection, etc.
Methodology – briefly discuss your data collection techniques and sources etc.
Main body – address each of the 4 questions. These need to be under separate
sections and clearly marked
Conclusions – a brief conclusion on the company
References
Appendices – including the minutes/notes of meetings.
Assignment 2 – Group of 3-4 students (30%)
Word Limits and Submission Due:
Word limits – – The total length of the report is a maximum of 4,000 words
(excluding figures, tables, references, and appendices).
Submission due – 4:59pm, 19 May 2023
Assignment 2 – Group of 3-4 students (30%)
Assignment – Marking Criteria
In the entire report, you will also be judged for structure and presentation, use of appropriate language,
spelling, grammar, and punctuation and correct resources/materials
Criteria Possible Mark
Companies background, description of the product/service,
justification of selection, etc.
2 (7%)
Methodology 2 (6%)
Question 1 6 (20%)
Question 2 6 (20%)
Question 3
Question 4
6 (20%)
6 (20%)
Structure and presentation. Use of appropriate language,
spelling, grammar, and punctuation
2 (7%)
Total 30 (100%)
• To explain what operations management is
• To state the key operations management
decisions
• To identify the importance of studying operations
management
• To recognize the new challenges in operations
management
Objectives of Lecture
Production is the creation of goods
Operations/Process management is
the set of activities that adds value in
the form of goods and services by
transforming inputs into outputs
What is OM?
The objective of the OM is to add value
during the transformation process.
What is value-added?
Activity 1
• Cost
– Providing low-cost products/services
• Quality
– Providing high-quality products/services
• Speed
– Fast products/services delivery
– Quick response to customers
• Flexibility
– Providing a wide variety of products/services
– Ability to respond to changes
• Services
Competitive Dimensions
Priorities should be determined by ......
IMPROVEMENT PRIORITIES
Your
PERFORMANCE
in each of
competitive
objectives
The
IMPORTANCE
of each
competitive
objective
Prioritizing Competitive Objectives
2 - Provide an important advantage with most customers
3 - Provide a useful advantage with most customers
4 - Need to be up to good industry standard
5 - Need to be around median industry standard
6 - Need to be within close range of the rest of the industry
7 - Not usually important but could become more so in future
8 - Very rarely rate as being important
9 - Never come into consideration
For this product group does this performance objective ......
ORDER
WINNING
OBJECTIVES
QUALIFYING
OBJECTIVES
LESS
IMPORTANT
OBJECTIVES
1 - Provide a crucial advantage with customers
9-Point Importance Scale
1 - Consistently considerably better than our nearest competitor
4 - Often marginally better than most competitors
For this product group is achieved performance ........
2 - Consistently clearly better than our nearest competitor
3 - Consistently marginally better than our nearest competitor
5 - About the same as most competitors
6 - Often close to main competitors
7 - Usually marginally worse than main competitors
8 - Usually worse than most competitors
9 - Consistently worse than most competitors
BETTER
THAN
COMPETITORS
SAME
AS
COMPETITORS
WORSE
THAN
COMPETITORS
9-Point Performance Scale
better
than
same
as
worse
than
less
important qualifying
order
winning
1
2
3
4
5
6
7
8
9
123456789
IMPORTANCE
FOR
CUSTOMERS
LOW HIGH
PE
R
FO
R
M
AN
C
E
AG
AI
N
ST
C
O
M
PE
TI
TO
R
S
G
O
O
D
BA
D
URGENT
ACTION
IMPROVE
APPROPRIATE
EXCESS ?
The Importance-Performance Matrix
After reading the case of Apple Inc, please
identify how Apple Inc has managed its four OM
activities (Product and Service Design, Process
and Layout Design, Quality Management and
Control, Inventory Management) successfully to
add value to its products/services?
Case Study – Apple Inc
• Product and Service Design
– Continuous breakthrough
– Rapid time to market (TTM)
– Customer-focused design and development
• Process and Layout Design
– Simple and intuitive
– Store is split logically
– Plenty of space for experiencing products and services
• Quality Management and Control
– Advanced and improved product functionalities
– Extensive product training and workshops
• Inventory Management
– Shifting sales to Apple Website and
online iTunes store
– Outsourcing operations
Activities that Add Value – Apple Inc
• Product and service design
• Quality management and control
• Location decisions
• Process and layout design
• Forecasting
• Inventory management
• Aggregate production planning
• Material requirements planning
• Project management
Key Operations/Processes Activities
• Product and service design (Lecture 2)
– What products or services should we offer?
– How should we design products and services?
– How can products and services be improved?
• Quality management and control & Facility Location
(Lectures 3 & 4)
– Are the processes performing adequately?
– How do we monitor and measure process quality?
– How do we improve process quality?
– Where should we put the facility?
– On what criteria should we base this location decision?
Decisions of Key Operations/Processes
Activities
• Process and layout design (Lecture 5)
– How should we arrange the facility in order to
maximize the efficiency?
• Forecasting and Inventory management intro (Lecture 6)
– Which forecasting technique should be used?
– How much products or services will be required?
• Inventory management and Lean Operation(Lecture 7 )
– How much inventory of each item should we have?
– When do we re-order?
– Which items should get the most attention?
Decisions of Key Operations/Processes
Activities
• Aggregate production planning and Material requirements
planning (Lecture 8)
– How much quantity of production is required?
– When should we produce in order to meet forecasted
demand?
– How much materials, parts, and subassemblies of a
dependent demand will be needed, and when?
• Introduction to Project Management, Aligning Projects
with Organisation Strategy(Lecture 9)
– What is a project?
– The importance of project management Aligning
Projects with Organisation Strategy Project selection
procedures.
– Project priority systems and linkage to strategy
– Project Management Organisation
Decisions of Key Operations/Processes
Activities
• Defining Project (Lecture 10)
– What is project scope?
– Work Breakdown Structure (WBS) & Gantt charts
– 5-process steps for defining projects
– Introduction: Project Management Leadership
• Project management (Lecture 11)
– What is the planned starting and end time for each
activity of a project?
– Which activities are the most critical to the success of
a project?
– What is the probability of project completion?
Decisions of Key Operations/Processes
Activities
How do the key Operations/Processes activities
enhance the competitive advantages of an organisation?
Activity 2
Product and
service design
Quality
management
and control
Cost
Quality
Speed
Flexibility
Services
How about
the others?
.
.
.
Inventory
management
OM Activities and
Competitive Objectives Mapping
• Operations is one of three major functions of
any organization.
• Operations is such a costly part of an
organization.
• We want (and need) to know how goods and
services are produced in order to:
– Add value on them;
– Increase competitive advantages.
Why Study Operations/Processes Management?
• It provides you a wide variety of job selection.
– Operations manager
– Supply chain consultant
– Supplier quality engineer
– Transport/distribution controller
– Demand planner
– Inventory warehouse manager
– Resource planning analyst
– Logistics project manager
Source: The Chartered Institute of Logistics and Transport
Why Study Operations/Processes Management?
Local or
national
focus
Growth of low-cost, reliable
worldwide communication
and transportation networks
Global focus;
international
collaboration
Lengthy
product
development
Shorter life cycles; growth of
global communication;
computer-aided design;
Internet
Rapid product
development;
collaborative
designs
Low-cost
production
with little
concern for
environment
Public sensitivity to
environment; ISO14000
standard; increasing
disposal costs
Green
manufacturing;
sustainability
Past Causes Current
Trends in Operations/Processes Management
“In-house”
production;
Low-bid
purchasing
Rapid technology
change; increasing
competitive forces
Supply-chain
partnering; strategic
sourcing;
joint ventures;
alliances
Low-cost
standard
products
Rise of consumerism;
increased affluence;
worldwide markets;
increasingly flexible
production processes
Mass customization
with added emphasis
on quality
Large lot
production
Shorter product life
cycles; increasing need
to reduce inventory
Just-in-time; lean
Past Causes Current
Trends in Operations/Processes Management
Which of the followings is NOT a new trend
in operations management?
A) Batch shipments
B) Supply chain partners
C) Globalization
D) Mass customization
E) Rapid product development
Quiz
• The European Operations Management Associations
(http://www.euroma-online.org)
• The Production and Operations Management Society
(http://www.poms.org)
• The Chartered Institute of Logistics and Transport
(https://www.cilta.com.au)
• The Chartered Institute of Purchasing and Supply
(http://www.cips.org/en-AU)
• The Australasian Production and Inventory Control Society
(http://www.apicsau.org.au)
Professional Organizations
• Explained what is Operations
Management (OM)
• Stated the key OM activities/decisions
• Identified the importance of studying OM
• Recognized the new challenges in OM
Summary of Lecture
1) Readings
- Chapters 1 and 2 (Heizer and Render)
2) Tutorial
- Question 1
3) Self-assessed MCQs
- Will be uploaded to the LMS by today
4) Office hours
By Appointment
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