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2. SCHOOL OF MANAGEMENT AND PUBLIC ADMINISTRATION
MG202 Operations Management (Face to Face)
Semester 1, 2013
Course Outline
1.0 General Information
MG202: Operations Management
1.1 Names of Course Coordinator and Tutor
Course Coordinator: Mr Parmod Achary
Course Tutor: Ms Suwastika Naidu
1.2 Contact Details of the Course Coordinator and Tutor
Name: Parmod Achary
E-mail: achary_p@usp.ac.fj
Room: S209
Phone: 3232094
Consultation hours: Tuesday 10-12pm
Wednesday 10-11am
Name: Suwastika Naidu
E-mail: naidu_s@usp.ac.fj
Room: S205
Phone: 3232245
Consultation hours: To be announced in the tutorials
1.3 Pre-requisite of this Course
MG101 & MG103
1.4 Lecture Times and Venue
Lecture Times and Venue (Laucala Campus)
No. Day Time Room
1 Tuesday 2pm -3pm 092-003
2 Wednesday 1pm-2pm 092-003
3 Thursday 6pm-7pm 092-003
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3. 1.5 Tutorial Times and Venue
2.0 Brief Course Description
Operations Management (OM) can be viewed as the management of the direct resources that are
required to provide an organisation’s goods and services (Aquilano, et al. 1999:5). An operation
is where the organisation’s goods and services are produced and provided to customers
(Schonberger & Knod Jr, 1997:4). The Operations function, therefore, provides the goods and
services that the customer receives from the organisation (Dilworth 2000:5). Operations
management is a discipline that studies (and practices) the process of planning, designing and
operating production systems and sub-systems to achieve the goals of organizations (Martinich,
1999: 11).
The first section of this course will examine the various techniques used by organisations to
increase productivity, efficiency and effectiveness. The two main techniques that will be studied
in this course are productivity and forecasting. The second section of this course will examine
systems design, reliability, capacity planning, process selection and facility layout. Particularly,
systems design is concerned with the various operation strategies used in designing a product.
Once a product is designed the reliability of the product needs to be determined to ensure that it
remains successful in the market. Capacity planning is primarily concerned with the ability of
the organization to meet future demands for products and services (Stevenson, 2007:178).
Process selection refers to deciding on the way production of goods and services will be
organized (Stevenson, 2007:227). Facility layout is dependent on process selection.
The third section of this course will examine design of work systems, learning curves, location
planning and analysis, quality, inventory management and project management. Design of work
systems will focus on issues such as job design, work measurement, establishment of time
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Tutorial
No.
Tutorial Times and Venue (Laucala Campus)
Day Time Room
1 Monday 8am -9am 014-009A
2 Monday 2pm-3pm 093-203
3 Tuesday 8am -9am 014-114
4 Tuesday 3pm -4pm 093-205
5 Wednesday 8am -9am 093-207
6 Wednesday 3pm -4pm 014-014B
7 Wednesday 4pm -5pm 093-002
8 Thursday 8am -9am 014-113
9 Thursday 10am -11am 093-003
10 Thursday 2pm -3pm 014-113
11 Friday 10am -11am 093-203
12 Friday 11am -12noon 093-205
13 Friday 12noon -1pm 093-002

4. standards, worker motivation and compensation (Stevenson, 2007:311). Inventory management
practices plays one of the key roles in determining the quality of the product. Finally project
management is concerned with determining stages of activities that needs to be undertaken in
completing a project.
In line with the structure of USP’s management program, this course focuses on the Operations
function of organizations. It discusses the main tasks and problems faced by operations
managers. Moreover, it provides insights on how the OM function is integrated into the functions
of marketing (MG206/303), finance (AF100), human resource management (MG204/302), etc.
3.0 Learning Outcomes
On completion of this course the students will be able to:
a. To gain an understanding of operations management and demonstrate that operations
management addresses issues in both manufacturing and service organizations.
b. To appreciate the role of operations managers and introduce the application of OM tools
to other functional areas within an organization such as marketing, finance and human
resource.
c. To gain an understanding of why a process focus (in conjunction with a product focus) is
necessary for excellence in organizational performance either in manufacturing of goods
or in customer-related aspects of delivery of services.
d. To acquaint with various factors, both quantitative and qualitative, that should be taken
into consideration when selecting a location for a manufacturing or service organization.
e. To become familiar with time-cost trade-offs involved in expediting the completion of a
project.
f. To clarify the strategies for developing aggregate plans and ways to identify their
strength and weaknesses.
g. To identify the various costs associated with carrying and maintaining inventories and
deciding on the economic order quantities.
h. To identify different dimensions of quality in both goods and services and show how they
relate to a firm’s overall strategy.
4.0 Course Materials
4.1 Prescribed Textbook
Stevenson, W.J. (2011). Operations Management (11th
Ed.). NY: McGraw-Hill.
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5. 4.2 Recommended Readings
4.2.1Textbook Readings
Listed below are some of the textbooks that students could refer to for better understanding of
the course. The textbooks have been arranged depending on the order of importance to the
course.
1. Davis, Mark M., Aquilano, Nicholas J., & Chase, Richard B. (1999), Fundamentals of
Operations Management (3rd
Ed.) Irwin/ McGraw-Hill, Chicago.
2. Finch, B. J. ((2006). Operations Now. Profitability, Processes, Performance (2nd
Ed.).
NY: McGraw-Hill.
3. Greasley, A. (2006). Operations Management. Chichester: John Wiley & Sons, Ltd.
4. Reid, R.D. & Sanders, N.R. (2005). Operations Management. An Integrated Approach
(2nd
Ed.). Hoboken, NJ: John Wiley & Sons, Inc.
5. Schonberger & Knod Jr. (1997). Operations Management. Customer-Focused Principles
(6th
Ed.). Chicago: Irwin.
6. Chand, A. (2011). Global Supply Chains in the South Pacific Region: A Study of Fiji’s
Garment Industry. Nova Science Publishers: USA.
4.2.2 Journal Article Readings
Listed below are some of the journal articles that students could read to get better understanding
of the course. There are numerous good articles published in the Operations Management
Journal, hence students can also refer to these articles whilst discussing case study presentations
in the tutorials.
1. Barratt, M., Choi, T.Y., and Li, M. (2011). Qualitative Case Studies in Operations
Management: Trends, Research Outcomes, and Future Research implications. Journal of
Operations Management, 29(4), 329-342.
2. Flynn, B.B., Schroeder, R.G., Sakakibara, S. (1995). The Impact of Quality Management
Practices on Performance and Competitive. Decision Sciences, 26(5), 659-691.
3. Goodale, J.C., Kuratko, D.F., Hornsby, J.S., and Covin, J.G. (2011). Operations
Management and Global Entrepreneurship: The Moderating Effect of Operations Control
on the Antecedents of Corporate Entrepreneurial Activity in Relation to Innovation
Performance. Journal of Operations Management, 29(1-2), 116-127.
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6. 4. Sighal, K., and Singhal, J. (2011). Opportunities for Developing the Science of
Operations and Supply Chain Management. Journal of Operations Management (In
Press).
5.0 Course Content
Weeks Chapter Course Content Chapter
Readings
1 Introduction to
Operations
Management
• Operations management and three major
functional areas of organisations.
• Service and manufacturing operations.
• Operations function and the nature of the
operations manager’s job.
• Design and operation of production
systems.
1
2 Introduction to
Operations
Management
• Key aspects of operations management
decision-making.
• Historical evolution of operations
management.
• Current trends that impact operations
management.
1
3 Operations Strategy
and Competitiveness
• Primary ways that business organisations
compete.
• Poor competitiveness of some companies.
• Strategy and tactics.
• Organisation strategy and operations
strategy
• Time-based strategies and productivity.
2
4 Forecasting Demand • Good forecast, forecasting process, at
least three qualitative forecasting
techniques.
• Qualitative and quantitative approaches to
forecasting.
• Averaging techniques, trend and seasonal
techniques, and regression analysis, and
solve typical problems.
• Two measures of forecast accuracy.
• Two ways of evaluating and controlling
forecasts.
• Major factors to consider when choosing
a forecasting technique.
3
5 Product and Service
Design
• Strategic importance of product and
service design.
• Key reasons for design or redesign.
4&4S
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7. • Main objectives of product and service
design.
• Standardization.
• Importance of legal, ethical, and
environmental issues in product and
service design.
• Phases in product design and
development.
• Main sources of design ideas.
• Manufacturing design and service design.
• Phases in service design.
• Well-designed service systems.
• Challenges of service design.
Reliabilty
• Reliability
• Reliability computations.
• Redundancy in a system.
6 Capacity Planning • Strategic importance of process selection.
• Influence that process selection has on an
organisation.
• Basic processing types.
• Automated approaches to processing.
• Need for management of technology.
• Reasons for redesign of layouts.
• Basic layout types.
• Main advantages and disadvantages of
product layouts and process layouts.
• Simple line-balancing problems.
• Develop simple process layouts.
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7 Process selection and
Facility Layout
• Strategic importance of process selection.
• Influence that process selection has on an
organization.
• Basic processing types.
• Automated approaches to processing.
• Need for management technology.
• Reasons for redesign of layouts.
• Basic layout types.
• Advantages and disadvantages of product
layouts and process layouts.
• Simple process layouts.
6
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8. MID SEMESTER EXAM
MID SEMESTER BREAK
(This week will not be counted as week 8)
8 Design of Work
Systems
• Work design.
• Two basic approaches to job design.
• Advantages and disadvantages of
specialization.
• Knowledge-based pay.
• Methods analysis.
• Four commonly used techniques for
motion study.
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9 Location Planning
and Analysis
• Reasons organisations need to make
location decisions.
• Location decisions are important.
• Options available for location decisions.
• Some of the major factors that affect
location decisions.
• Decision process for making these kinds
of decisions.
• Techniques presented to solve typical
problems.
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10 Quality • Quality and consequences of poor
quality.
• Determinants of quality.
• Costs associated with quality.
• Quality awards.
• Philosophies of quality gurus.
• TQM
• Problem solving, process improvement
and use various quality tools.
9 & 10
11 Inventory
Management
• Major reasons for holding inventories.
• Requirements for effective inventory
management.
• Nature and importance of service
inventories.
• Periodic and perpetual review systems.
• Objectives of inventory management.
• A-B-C approach.
• Basic EOQ model and its assumptions.
• Economic production quantity model.
• Quantity discount model.
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9. • Reorder point models.
• Situations in which the single-period
model would be appropriate.
12
&
13
Project Management  Behavioral aspects of projects in terms of
project personnel and the project
manager.
 Nature and importance of a work
breakdown structure in project
management.
 General description of PERT/CPM
techniques.
 Construct simple network diagrams.
 Kinds of information that a PERT or
CPM analysis can provide.
 Networks with deterministic times.
 Networks with probabilistic times.
 Activity “crashing” and solve typical
problems.
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14 Revision and Format for Final Exam
6.0 Teaching Methods
This course will be taught in face to face mode this semester. In order to pass the course,
students need to attend all the lectures and one tutorial per week. The tutorial signup sheets will
be placed in the noticeboard outside room s205 so please go and sign up for one tutorial after
your first lecture. Students are also requested to visit the moodles regularly and download the
lecture notes that are discussed in the class. A set of calculation questions will be will be placed
in the moodles for tutorial discussions. It is very important for students to answer these
questions before coming to the tutorials, as similar kinds of questions will be appearing in the
exams. There will be 5 quizzes given in the lecture times and out of these 5 quizzes 3 will be
counted for the final exam coursework. Some discussion questions will also be posted in the
moodles and students are requested to actively participate in these discussion questions. There
will also be case study presentations in the class. Students will be divided into groups of 3
students and case study topics will be from the textbook. The tutor will discuss more about the
case study presentation in the tutorials.
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10. 7.0 Assignments and Evaluation
Note: Minimum of 40% marks (20 out of 50) is required in both the course work and final
examination separately, in addition to an overall pass mark in the course (50 out of
100) to pass this course.
7.1 Class quiz (15%)
There will be no written assignments in this course. Students will be required to do five quizzes
during the lecture times. Each quiz will be worth 5 marks and additional quizzes may be given to
the students who missed the class for genuine reasons. Out of the 5 quizzes that students will do
in the lectures, only 3 will be counted for the final coursework.
7.2 Seminar and Case Study Presentations (10%)
Students will be required to divide themselves up into groups consisting 3 members within each
tutorial group. Each group will be doing one (1) case study presentation. All the team members
will need to present. No oral presentations are to be read (note- cards can be permitted as
reference guide). Student presentations are to be made in a relaxed, confident and professional
manner. All team members should actively engage in the presentation and discussion that
follows the presentation. The use of visual aids (laptop/projector; overhead projector, charts,
whiteboard and handouts) is recommended. Bookings for the use of visual aid need to be
arranged with USP Media Centre. Full details of case study topics will be specified in the
tutorial outline posted on class share.
7.3 Tutorial overall attendance & participation (5%)
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Components Weeks and Due Dates Percentage
1 Quiz X 5 Announced in the lectures 15%
2 Case Study presentation Announced in the tutorials 10%
3 Attendance & Participation 5%
3 Mid Semester Test Announced in the lectures 20%
Continuous assessment total 50%
Final Examination 50%
Total 100%

11. The tutorials will focus on developing people skills and competencies. Students will be working
in groups as well as individually within their tutorial groups. Every week, there will be group
discussions/presentations, etc. on a particular topic. There are several methods of active class
participation and some of them are listed below which shall be used as a criteria for assessing
participation.
• Asking questions about text or case material,
• Making observation about text or case material,
• Making insightful comments or asking penetrating questions during tutorials or at
appropriate time during case and seminar presentations, and
• Relating assigned material to other areas of study or current events in the Pacific
region.
7.4 Mid Semester Test (20%)
Mid semester test is compulsory and all students are expected to sit for the mid semester test.
The date and the venue of the mid semester test will be announced in the lecture. The mid
semester test will incorporate questions ranging from definitions to calculations. Hence
students should be well prepared to do these types of questions.
7.5 Final Examination (50%)
Your final examination is 3 hours long. It will make up the other 50% of your final score. We
will post past year final examination papers in moodle shell for revision purposes. Remember
that your final examination may differ in content and structure from the past year sample papers.
Revision classes will be conducted in tutorials in advance to prepare students for final
examination.
7.6 Grades
The letter grade which you will receive for the course will be determined according to the
following numerical equivalents:
Your course results will be graded on the following basis:
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12. Note: If you fail to sit the final examination, you will receive an EX grade, which is a FAIL
grade. If you were sick and unable to sit the final exam, and you have done well in your
coursework (at least a B grade), you may apply for an Aeogrotat Pass. If you could not sit the
exam because of a death in the family or any other personal reasons, you may apply for a
Compassionate Pass. Check with Student Academic Services (SAS) for the appropriate forms
which you need to complete very soon after the examination date. For both types of applications,
you will need evidence, such as a medical certificate. If you do not turn up for your final
examination, you will get an EX grade, which is a fail grade.
8.0 Course Policy
8.1 Policy for Late Assignments
Please note that the due dates for assignments are to be strictly followed. The School of
Management and Public Administration policy of 10% penalty per day for any late submission of
assignment will be strictly followed.
8.2 Plagiarism and Dishonest Practice in Coursework:
If you are found copying, you will be totally penalised and will be awarded ‘zero marks’.
(a) Plagiarism in coursework is the taking and using of another person’s thoughts, writings,
inventions or other work as one’s own. It includes copying from a current or past student
or using someone else’s work without indicating the source.
(b) Dishonest practice in coursework is cheating or being party to cheating or misconduct in
tests, laboratory work or any other type of coursework. It includes submitting work for
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13. assessment that is to be counted towards a final mark if that work has been previously
submitted for the same or other course(s).
(c) Plagiarism and dishonest practice in coursework are punishable academic offences.
(d) Where a member of academic staff has reasonable grounds to believe a student has been
guilty of plagiarism or dishonest practice in coursework, that student shall be liable to:
(i) be reprimanded by the Head of School; and/or
(ii) have their marks for the relevant piece of work reduced by the Head of School;
and/or
(iii) be awarded zero marks by the Dean or nominee for the relevant piece of work;
and/or
(iv) be reported to the Dean.
(e) The Dean shall have discretion to refer the offence to the Student Development
Committee.
(Source: University of the South Pacific. 2012. USP Calendar. University of the South
Pacific, Suva, Fiji: 455-459).
8.3 Student and Staff Conduct
The University has statutes and regulations on the expected behaviour of students as well as its
staff members. It is important that you familiarize yourself with these regulations. The whole
idea is to ensure that the members of the University community are able to work, study, learn,
participate and share in the academic and social aspects of the University life in a respectful and
safe environment. These statutes and regulations could be obtained from the Student Union body
or at the Counseling Centre. In short, have respect for all.
8.4 Academic Grievances
Should this course not meet your academic expectations, please talk to your tutor, the course
coordinator or the Head of School.
8.5 Student Support
The staff at the SLS centre will provide assistance on your academic performance should you
need help. However, if you are experiencing personal problems, the people at the Counseling
Centre will be available to provide assistance and counseling. Don’t forget that the USP staff
would like every student to have a positive experience while studying at the University.
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14. 8.6 Graduate Attributes
USP’s academic programs will promote the development of the following five attributes in all its
graduates:
(1) academic excellence; (2) intellectual curiosity and integrity; (3) capacity for leadership and
working with others; (4) appreciation of the cultures of the Pacific islands; and (5) cross-cultural
competencies.
Prepared by:
Parmod Achary
Lecturer
School of Management and Public
Administration
The University of the South Pacific
Suva, FIJI.
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