In this study, we are going to discuss the operations management of an online education provider. Internet Education Institute (iEdu) is as an online education provider which provides online courses and certificates in cooperation with universities all over the world.

1. Operations Management Case Study
of an
Online Education Provider
Eng. Baker Khader Abdallah, MBA
Feb 2018

2. Introduction
Many educational institutions are considering online degree programs as avenues for expanding
the scope of their operations. Given the relatively recent emergence of online education as a
major market, online education is in the early stages of what is commonly referred to as the
product life cycle. There are a large number of competitors in the e-learning market, and no
single organization has claimed a role that can be described as dominant.
The utilization of the internet in education started as the internet became popular and had a wide
spread all over the world. The instructional environments which are supported by the internet are
called “Online Learning”. It comprises programs and resources that use the Internet within and
beyond school to provide access to instructional materials and to allow students to interact with
their teachers without the need to go the school or university. Online learning can be fully online
or with face-to-face interactions. (Bakia et al. 2012)
The online education market is actually comprised of several markets, including markets for
students at the undergraduate and graduate study levels, a market for instructors, researchers,
faculty, funding, and other components of higher education. For a higher education organization
to be successful it is necessary to consider market forces such as what customers will be served,
how the service will be delivered, and what is actually the product and service. The complex
forces involved in the online education market, seen in part by the many different components
that exist within the market, has an important role in determining the survival of an organization
entering into the market (Caudill 2009).
Contributing to the expansion of the online education market is the lack of geographic constraint
for the market. When the market expands, it provides opportunities to many market participants
and allows for globalization of the market to occur. Because the market is growing globally and
new competitors are incorporated, it is increasingly important for organizations participating in
online education to use. For any competitive market, a major component of analysis is the
operations management analysis. (Caudill 2009).
In this study, we are going to discuss the operations management of an online education
provider. Internet Education Institute (iEdu) is as an online education provider which provides
online courses and certificates in cooperation with universities all over the world.

3. Operations Management
Value chain analysis
The online learning operations of iEdu can be analysed using the value chain analysis. Value
chain analysis concerned with inbound, operations and outbound logistics activities in addition to
marketing, sales and accounting which are known as linkages across activities. It focuses on
value flows across these activities the effect of these activities on each other. (Lauridsen, 2011).
The value chain model is a way of thinking in strategy analysis and strategic development. The
value chain concept was originally used in accounting analysis. Professor Michael Porter (1985)
the founder of the value chain suggested that the concept could be used for strategy analysis too.
The value chain analysis identifies where the value is added and connects the process with the
main functional units of the organization. The value is defined by the customer of the
organisation’s services such as students of the education organizations. (Hansen, 2014)
Porter identified two types of activities: the primary activity, which is directly involved in
logistic product flow, and support activity, which though indirect, play a very useful role in the
success or effectiveness of primary activities. The main concern of the value chain is focusing on
value added by each activity, and the contribution of these activities to the organisation’s
competitive advantage. It is difficult to apply the value chain to organisations which are
delivering different kind of services (Dambudzo 2013).
The value chain analysis identifies where the value is added and links the process with the main
functional units of the organization. In iEdu many actors and players are involved in the
educational process. These are faculty, course editors and coordinators, technology specialists,
instructional designers, academic experts, examination developers and invigilators, technical and
other administrative personnel. Though these work in distinct administrative units, inter- and
intra- departmental linkages are vital for the efficient and effective operation.
Operations Analysis

4. Learners are the primary inputs to the iEdu e-learning organization and the primary outputs are
the 'transformed' learners who got additional knowledge and proofs of that knowledge
(certificates). There are other inputs and outputs beside these two primary inputs and outputs in
addition to the operations and processes which they are involved in. (Dambudzo 2013) analysed
the main inputs, operations and outputs of the organization as the following:
 Inbound logistics (Inputs) :
o Purchasing, acquiring and preparation of learning specific hardware (LSH), learning
management systems (LMS), and learning content management systems (LCMS);
software and tools.
o Preparation of instructional materials, Lectures, course information,
o Hiring authors/writers, teachers, technicians
o Ordering textbooks and references,
o Formation of internal course teams.
o Learning technologies
 Operations:
o Development process of courses and design of course instructions.
o Creation, editing and formatting of multimedia resources.
o Design and printing of graphics and Web publishing.
o Content editing.
o Student manual and study guide development.
o Integrated information exchange
 Outbound (Outputs) :
o Packaging and storage of courses,
o Processing mail and delivery materials to students,
o Access to courses for students.
In addition to the above operational analysis of the online operations for iEdu, following are
supporting operations:

5.  Delivery (sales):
o Collaborating and marketing preparation of advertising materials, brochures,
university calendar as marketing strategies.
o Communicate attributes, culture and benefits
 Service:
o Coaching and mentoring
o Testing and assessment.
o Support services.
o Technical support
o Learner self-service.
o Support of academic experts
o Tutor support and marking,
o Counselling,
o Granting awards. (Dambudzo 2013).

6. Supply Chain Management
Introduction
The supply chain of products or services has three parts: The supply, the manufacturing and the
distribution. The supply is how raw materials are procured and where from and when they are
supplied to next part, manufacturing. Manufacturing is the process of converting these raw
materials to finished products. The Distribution ensures that the finished products reach
customers through a network of warehouses, retailers and distributors.
Most of the organizations are concentrating on the supply chain process and relying on their
suppliers for supplying them with components, products and parts in terms of goods, services
and products on time every time at the right quality and cost. (Hardaker et. al 2013)
SCM for Online Learning
Information is the “blood” of the online learning business processes, through which virtual value
chains are emerged. The online learning environment can be referred to as marketspace rather
than marketplace. The supply chain for an online learning environment encompasses the
procurement, manufacturing and distribution of information related activities like electronic
programs and courses and services and the technologies related to these activities.
The supply side consists of all activities that are related to the process of purchasing, acquiring,
collecting and writing material that could be published online for remote teaching and revising it
to be sure that it meets the accepted quality level. Manufacturing process is the process of
converting this raw material into an e-material that could be published on an e-learning tool and
the online instruction of this material matches the manufacturing side of the supply chain.
Distribution in the digital industry and especially in e-learning is done in most cases through e-
catalogue that are published online so that it can be accessed directly through the online stores of
the e-learning websites or distributed by other medium like e-mail. Students can browse
available courses and choose from which most suit their needs. They can access the published e-

7. material either by buying them or accessing free content which are offered by free online sources
(Fattah et al. 2013).
Suppliers
Suppliers of the online learning operations include most levels of supplier products and services
relating to e-learning. Across all segments, the majority of suppliers are small, usually micro-
businesses. Supplier list include providers of authoring and development tools, publishers,
enterprise systems, distributors, portal integrators, and delivery partners, governmental sources,
other educational institutions and learners as buyers of educational services (Anderson et al.
2013)
Main suppliers of the online learning operations are the suppliers which provide software tools
and applications that are used to manage the online learning process. The main component of
online learning operations is the learning management system (LMS). LMS is a composite of
applications and tools that can be provided from different suppliers or from a single supplier.
Some of the LMS features include eLearning course launching and tracking, Classroom
instructions management, Communication and collaboration tools, eLearning development tools,
Content management of internal course materials, Assessment and testing, Virtual classrooms, e-
Commerce and mobile learning (Don McIntosh, 2013).

8. Quality Management
Quality is defined as 'fitness for purpose' and it is related to the needs of the user or customer
which indicates that quality of a certain product depends upon a subject's view of what is the
purpose of that phenomenon. Another definition of quality is that the ‘product comply with
defined requirements’. Consequently, purpose, requirements and needs, should be defined by the
significant stakeholders.
Education and specially e-learning differs from other products in that e-learning is not a product
that the consumer buys directly. It constitutes a process that they have to carry out by
themselves. As per (Rekkedal, 2006), the subjective quality requirements for e-learners can be
structured into seven fields of quality:
 Tutor support.
 Collaboration.
 Applied Technology.
 Cost-expectation benefits,
 Information transparency of provider and courses,
 Course structure/presence courses,
 Didactics.
Quality Assurance
Making QA everyone‘s business hence every employee and unit of the university is an active
player in establishing and maintaining quality. In order to assure, monitor and report on quality
activities and issues on a regular basis, the following activities will be performed:
- The appointment of QA personnel and give them the required training of all the personnel
in QA in order to create university-wide awareness of the need for quality
- Setting up a QA Committee comprising senior management.
- Regular auditing process to keep quality issue up to date.
- Conducting regular students’ surveys and evaluations of tutorials, tutors and online
services for students to keep abreast with students’ views about quality of services they
receive from.

9. This will further enhance the organization’s position in the market as an online education
provider.
Total Quality Management
Total Quality Management (TQM) is a concept that was introduced by business and industry to
establish quality standards and techniques that ensure total, continues and sustainable quality of
products or services through continuous actions rather than through one final inspection. It relies
on the commitment and experiences of all members of an organization to improve the processes
by which customers are served. The TQM concept concentrates on creating quality awareness
and building quality concepts in every task and activity that is performed in the organization.
Doing everything right the first time and encouraging continuous improvement throughout all the
tasks, processes and operations are two important messages that TQM program focuses on. TQM
means building quality into everything in the organization (Mishra et. al. 2005).
TQM evolved from quality control concepts. Quality was determined by the time spent in
training to give the workers the required skills and to instil in them the pride for producing
quality products. Quality control means "best for certain conditions” and it does not have the
popular meaning of "best" in its absolute nature."
Control represents a management tool with the following four steps:
 Setting quality standards.
 Evaluating conformance to these standards
 Taking proper actions when the standards are exceeded,
 Better planning for standards improvement.
Total quality management means that quality level is sustained during all product phases starting
at the design of the product or service and end when the product or service has been placed in the
hands of the Customer who remains satisfied. (Mishra et al. 2005).
TQM for Online Learning Environment

10. If we were to formulate a TQM policy for e-Learning, it would ideally be a tool that will
differentiate say an OSHA course designed/created by provider X and a similar course
designed/created by provider Y with both courses being SCORM and AICC compliant. It will
also have to take into consideration the modes of delivery. Hence TQM can be a deciding tool to
differentiate which content has a better output as a package. Output being the ease and amount of
lesson grasped by the student.
The five pillars of TQM as introduced by Creech (1994) are worth highlighting as they provide
a strong foundation for TQM managed organizations. This can become the main point of
improvement in e-Learning. As per Creech, the product (or service) is the focal point for
organization purpose and achievement. Product quality is not possible without assuring quality in
the process. Quality in the process cannot be obtained without the right organization. Right
organization without the proper leadership is meaningless. Strong, bottom-up commitment is the
support for all the rest. Each one of them depends upon the others, and if one is weak, all are.
Here we will try to superimpose organizational requirements and make it as an invisible
requirement to define TQM in online Learning.
Online Learning is a undergoing a paradigm change and it has become inevitable for the survival
of the content developers to innovate and lead the change if they have to survive and be
responsive for the development of quality courseware. There are many factors that have to be
taken into account for shifting of training from Instructor LED to e-Learning. Apart from their
traditional orientation, they also have to be apart from other e-Learning coursewares. Some of
the important factors are:-
1. Interoperability – (SCORM + AICC).
2. Instructional Design (The Pedagogy)
3. Availability and accessibility (Dependent upon the service/course provider).
4. Support (Blended Learning OR learning support)
5. Relevance (Recent updates with respect to the content)
When we consider applying the philosophy and concept of TQM in online Learning
organization, it is appropriate to think of the following aspects:
 Outstanding teachers
 Excellent examination results

11.  Specialization
 High moral values
 Adequate resources
 Use of best and latest technology
 Strong and purposeful leadership
 Support of parents, industry and major stakeholders
 Care for students and better concern to them.
 Balanced need-based curricula.
 Good teamwork
 Staff recruitment, evaluation, promotion, rewarding and development.
 Student examination and assessment.
 Industrial placement.
Successful implementation of TQM means that all the elements of the organization should be
committed to quality. That TQM is a new and different way of thinking about organizations. Its
primary goal is to meet and satisfy the end-users' requirements - quality product or service. It
believes in continuous improvement.
All these are fertile grounds for exploration in online learning and there is a great potential of
implementing TQM in online learning. With a relatively new and ever-changing industry
environment, it is a challenge we all have to face in the coming years.

12. Conclusion
The operations management for online learning system should take into account the whole cycle
of on-line learning design, production and management in order to satisfy current and future
academic industry requirements (Caudill 2009).
It is important to cover the operations management, supply chain management and total quality
management areas for online learning organization in order to design and apply an efficient
operational model. It is also important for any operations manager to think of the organization
customers and their satisfactions of his organization performance and quality and take into
account their point of view and do the necessary operational actions. Business best practise,
operational experience and customer point of view are all integrated parts in developing an
efficient and effective operational model for iEdu Online operations to continue growing and
success in the market.

13. References
Marianne Bakia, Linda Shear, Yukie Toyama, Austin Lasseter, (2012). Understanding the
Implications of Online Learningfor Educational Productivity, U.S. Department of Education,
Office of Educational Technology.
Jason Caudill (2009). A Financial Model for the Launch and Operation of an Online Degree
Program by a Public Higher Education System, University of Tennessee, Knoxville
Barbara Lauridsen (2011). Shifting the Paradigm: Value-Chain Analysis Applied to Online
Learning. National University, School of Engineering and Technology
Ignatius Isaac Dambudzo (2013). Application of the value chain analysis framework to enhance
understanding of competitive advantage at an Open and Distance Learning (ODL) Institution.
Zimbabwe Open University.
Heba Abdel Fattah, Mohamed Saleh, Pål Davidsen (2013). Modeling E-Material Supply Chain,
Cairo University.
Terry Anderson, Fathi Elloumi (2013). Theory and Practice of Online Learning, Athabasca
University.
Don McIntosh (2013). Vendors of Learning Management and E-learning Products. Trimeritus
eLearning Solutions Inc.
(Rekkedal, 2006), Torstein Rekkedal 2006, State of the Art Report on Distance Learning and E-
learning Quality for SMEs, NKI, Norway.
Shabd Saran Mishra & Prof. R.C. Katiyar (2013). Total Quality Management in E-Learning.
Institute of Business Management, CSJM University, Kanpur
Glenn Hardaker & Gary Graham (2014). Energising your Supply Chain for e-Commerce.
School of Business, University of Huddersfield, UK
Hans Hansen (2014). The value chain and life-long learning. VIA University College. Horsens,
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