BA 3320 - INTRODUCTION TO OPERATIONS MANAGEMENT

Summer Session 1,  2005


 
"When you try to pull just one thing out of the Universe, you find it attached to everything else." --John Muir 


Prerequisites: Econ. 1001, Stat. 3300, Acctg. 2410
Text: Operations Management by Heizer/Render, Fifth, Sixth or Seventh Edition ( currently, the "flexible edition"), including the POM for Windows disk. (There are two CD's with the book.)
EXTEND Lite Simulation Software, Videos and other course materials on the  Course CD's-- This is different from the CD's that came with the book. The course videos and software are widely available from student volunteers who burn a set of four CDs or a DVD and charge a nominal amount for media and copying costs.

You may need access to a computer where you can install the software from the book to do the exercises. You should also have a copy of Microsoft Office on your computer so you can do the EXCEL assignments at home. Try the bookstore for the Academic version Office Pro at a very reasonable price.


Tentative Grading:
Dr. Bud Banis
Campus CCB 230, 314-516-6136 off-campus, 636-394-4950 (nights and weekends)
E-mail: ba3320 (at) bud banis . com   WebPages, http://www.umsl.edu/~rbanis
Monica Farrell in Business Advising sometimes has a list of people who offer Private Tutoring in this course
Dr. James Campbell has a useful set of Powerpoint slides and problem sets/solutions related to the Heizer-Render textbook
 
 

Special announcements go here:

 Selected Overheads as PDF's and EXCEL Files

Previous semester first exam examples are on the overheads page

You will need the Course CD's to do exercises 3 and 4

Online sources: Excellent EXCEL Videotutorials from DataPigTechnologies 
 

For each exercise, submit paper copies for grading, and put a copy of the file into the mygateway dropbox for reference. Remember to send after submitting or I won't get it.
Exercise 1--Budgets--due Monday, May 23, 2005 up to three pages. See the video on how to keep a spreadsheet from printing over more than one page
Exercise 2--Factor Rating Due Monday, May 23, 2005 up to three pages.
Exercise 3--LP diet problem due Thursday, June 2. This should be three pages. 
Exercise 4--Simulation with EXTEND due Monday, June 6. This must be a one sheet printout see example
Application Research Project-- Simulation in EXTEND or with Macros in EXCEL, LP with POM-QM or Solver. Real data, novel problem. don't pull something out of a textbook.   Due last day of Class, Thursday, June 9. I won't accept any assignments after June 9, as I am committed to getting everything graded and grades in on time.
 



Approx Week                                     Topics                                                      Chapter
Week 1     Introduction & Overview of tools

Making Quality Decisions

                Decision models: risk avoidance vs. risk management
                Interactive Powerpoint show on risk management (660K)--this has a different set of numbers than used in class to give a little more practice.
                Decision trees and value of information      PDF on EVSI
                (shift click or right click to download pdf's instead of viewing them in acrobat add-in)
                Joint events-reliability and redundancy                                        Chapter 17
 

Week 3     Cost Structures                                                                             Chapter 7
                Spreadsheet Budgeting (NIB)             Excercise 1 budgets PDF
                "Location" Break even Analysis                                                     Chapter 8
                Factor rating                                        Excercise 2 jobrate PDF
 
 
 
 
 


 

1)  Here are EXCEL sheets for budgets and factor rating: these should also open in recent versions of LOTUS 
jobrate.xls  and budget.xls   The parts of the sheets that you can change are shown in blue. I protected it so that people wouldn't inadvertantly mess up the formulas. You can deprotect it by simply copy and paste to the same place on another spreadsheet file.

2)Make your own EXCEL, LOTUS or QUATTROPRO sheet
If you'd rather make your own spreadsheet, See the EXCEL Factor Rating Exercise in BA 103
note the formula design tips there. This spreadsheet can be assembled in less than 15 minutes if you design the formulas for copying. If you already did this assignment with me in BA 103, you can take this opportunity to expand on your experience. For the Budget exercise, see the formulas in the handout. 
 

                    Game theory, the cooperation dilemma (NIB)     Game Theory PDF
                     Statistical Process Control                                                             Ch 6 supp. (6th Edn) Chapter 4 supplement (5th Edn)
                    & Total Quality Management (TQM)     Total Quality Management

Week 6       Optimization models
                    Linear Optimization Models                                                         Module B
                    Computer Solutions using Excel Solver                                     p.759 (6th Edn)    p. 724 (5th Edn), packet
                     The X-Y Company as an EXCEL Lp model
           Videotutorials for solving the X-Y Lp problem in EXCEL Solver
                    Problems can also be solved in POM-Win (the second CD that came with the Heizer-Render text) Install it on your machine.
 
 
 


Exam 1 


Historical Course Grade Distribution

  Facilities /Capacity and Location Planning:
                    Transportation Model                                                                 Module C
                    Greedy solutions and opportunity cost
                    The company that wrote solver for Microsoft has a web page at  http://www.frontsys.com

            EXCEL spreadsheet of a transportation model  generic
           EXCEL Transportation Model set up in class
           Modified EXCEL Technician travel model to explore shadow prices of hiring more technicians
            Tech Travel description and tables for manual solution

                   EXCEL transportation model for exploring extra plant capacity expansion
 
 
 


 

Computer Exercise 3--use of EXCEL Solver with Sensitivity analysis and comparison to POM-WIN LP module 
You will solve the same diet problem in both systems to see how they relate to each other. They should be the same. though the format and terms are a little different. See the description of the diet project.

Week 7                      Microscheduling/ job sequencing:
                   Joe Gantt's auto repair schedule
                 Job Matching -Assignment Method-Excel                                     Chapter 15
                    Assigning jobs--an example, as a PDF file, (you need the free add-in, Adobe Acrobat for this)
                    and an EXCEL Solver solution by Bill Cacheris of the MBA online program
                    What does it Mean?
Week 9         Process Priority Rules-Excel/ POM-Win excel sheet for FCFS.
                        pdf for Johnson's rule.  Description of Johnson's rule procedure. 


  

Memorial Day Holiday, Monday, May 30
Week 11
           Queuing: Infinite Source                                                             Module D
                           Simulation modeling                                                                      Module F 

  

Excused grades available until Last drop Day,
June 4 (note advising is closed June 4.

 

Computer Excercise 5 -- simulation using the EXTEND Light Modeling system that is on the supplementary CD. 
PDF of the assignment
macdog.exe file to be used in the assignment This is a self- extracting archive, so execute it  and it will extract in the same directory to give you macdog2.mox which you can then use with the EXTEND program to do the assignment. It's small (20 K archive, 35 K extracted) so you can save it and extract it anyplace, even on a floppy disk. 
Videos on the project
There is a manual on EXTEND lite in the EXTENDLT directory, manual.pdf, 70 pp.. I've printed a few if someone wants to dig into it further. There are also larger manuals, User Guide.pdf, 738 pp., and a Developer Reference.pdf, 335 pp that extract if you install the software. I have other books from the previous version, BPR.pdf on Business Process Reengineering applications, 264 pp, and MFG.pdf on manufacturing applications, 320 pp. Installing EXTEND6LT also provides a number of example models with descriptions.
 
 
You will need access to a computer to do the computer exercises. Extend software is distributed on the Course CD's with permission of the Publisher of the Heizer- Render text, Prentice Hall. If you don't have a computer that you can install it on, there is a second version on the 4th CD ROM that has the software installed in a way so it can be run directly from the CD. Use this on the school machines. Unlike all my materials on the first 3 CD's, you do not have permission to distribute the software on the 4th CD to people outside the course.

    Scheduling & Inventory Management
          Inventory Formulas, PDF   Inventory powerpoint #1 (modified from Dr. Campbell)
          Inventory Overheads
                    Aggregate Planning - scheduling                                                     Chapter 13
                    EOQ Model & Quantity discounts                                                  Chapter 12
                    Service Level, Safety Stock & shortages; Reorder Point vs. Fixed Interval
Week 14    Economic Run Size (ERS), Make vs. Buy & JIT
                    Single Period Model
                    Just in Time Philosophy
Week 15     Project management, CPM & PERT powerpoint                             Chapter 3 (16 in older editions)

Week 16         Learning Curves                                                                                 Module E
                      Efficiency, Time & Motion Studies                                               Ch.10 scan
 
 


Exam #2


Ref. no./Section Time Room Exam 2-date/time
14020/ D01 MW  09:30-10:45 SSB216 Monday May 9  / 7:45-9:45 am 
14030/ D02  MW 11:00-12:15 SSB216  Monday May 9  /  10:00-12:00 Noon
35640 /E01  W 6:55--9:35pm SSB216  Wednesday May 11 / 7:45-9:45 pm
No  switching sections without prior permission and a good reason

 some typical second-exam questions:
Inventory: 
ersveoq.pdf
note: cost of the good is included in total cost because it is different between making and buying. so this difference has to be included in the decision.
ropvfoi.pdf
Note: we didn't cover expected shortage this semester (E(z) and E(n), thus don't worry about how the number short was estimated, just focus on Pstockout and safety stock.  another way to phrase a question on this issue is "How much safety stock would you have to keep to have equivalent service level in the FOI approach?"
1period

Project schedules
A typical exam problem might also have a list of activities, durations, precedence relationships and a predrawn PERT chart for you to fill in.
Project schedule and Bathroom solutions

learning curve data and the real world.
two features about learning curves:
One is the doubling of experience gives a constant % reduction.  Thus, divide the times required T2/T1; T4/T2; T6/T3; T8/T4 This will reveal a second feature, that the first time you do something, the data usually doesn't fit the theory (i.e. it is "anomalous").
Use the table factors to figure out how much experience you must have before the time to do it is 72 hours or less. The lesson is that it takes time to implement a  process change and realize the projected benefit.
Answers to Macdog output and learning curves and the real world.
 

Merge lanes game
A linear Programming problem with solver output to interpret.
similar to expan LP above
 Solution to merge and Solver output

Bathroom queuing

Interpretation of MacDog output

miscellaneous MC questions
solutions have been added

Note that most of the critical overheads used in class are on the web at this point, so if you need to review something that you missed, there is the book and all the materials on the web.


 
 
Due dates for Computer exercises:  Due    
#1 budgets- May 23 2.5%  
#2 factor rating May 23 2.5%  
#3 EXCEL&POM-WIN LP June 2 10%  
#4 simulation June 6 5%  
Original research using  LP or Simulation last class day 
June 9
5% and used for borderline decisions  
       


 
A few administrative issues ("The Rules"):

Attendance at Classes:
No grade will be assigned for attendance directly, but the exams and exercises do a pretty good job of weeding out people who aren't interested enough to come to class. My philosophy on exam questions is that if it is important enough to put on an exam, it's important enough to cover in class. The book is likely to be much less focused and material in the book that isn't covered in class won't be on exams.  Exams follow very much what is covered in class, and much of the material is either not treated in the book, or has a different approach. 
It is very difficult to get a passing grade in this course if you skip classes. There is no make-up tutoring for people who can't make it to class. If you miss a class, get notes from someone who takes good notes. 

Computer Exercises:
My vision for this course is as a hands-on learning experience. To achieve this, everyone must do their own assignments. Drop Dead dates for the assignments allow extra time for the myriad difficulties inherent in technological pursuits (i.e. %$#@! computers), illness, and other delays. Plan to finish and turn in assignments before these "drop-dead" dates to avoid getting zeroes for late and missing assignments. Late assignments won't be accepted or will be discounted unless there is prior permission. 

Extra credit is sometimes awarded for doing something novel on one of the regular assignments. Extra credit isn't awarded to people who don't complete the basic assignments. 

Working together can be very useful, but it is very important to actually do the exercises yourself and understand what's going on. Consult with others, but generate your own data and submit only your own work. Note that the exercises are designed to be personalized to some degree to encourage this. If assignments submitted are very similar in form and substance to someone else's then both parties will share a zero for the assignment. 

Exams
cover books, lectures, supplemental readings, handouts and exercises. Exams are closed book but allow one sheet of notes. No make-up exams or switching sections without prior permission. A grade of zero will be assigned for exams missed without prior consent. You are expected to know definitions and terms.  Study groups are beneficial. 
Exams or other assignments submitted for review of parts may be subject to more thorough review and a grade might go down. "Selective recounts" are often unfair to other students and encourage churning and biased results.
Exams and Computer exercises are designed and analyzed to detect copying and other cheating.  Cheating on exams or assignments is not tolerated and will result in formal disciplinary action. 

reporting final grades: 
Grade breaks are at 90, 80, 70, and 60 with few pluses and minuses as I believe they penalize good studemts.  Instead, I use the application report to decide borderline cases. 

Final grades are reported on time and available online.  Please do not call me to get your final grade. Please especially don't call to "discuss your grade" while I am working on it. I will probably not be very accessible by phone. If you want, or need more detail, E-mail me so I can send you a copy and paste from my grade sheet. Grades are not adjusted by offering students opportunities to do "extra credit assignments" or regrade selected assignments or redo work after the end of the semester. 
Historical Course Grade Distribution

Excused grades
are available until the last drop day.  After that, the grade assigned reflects performance.  Excused grades are not available to students caught cheating. 

Delayed Grades
On rare occasions, a delayed grade is assigned because an extraordinary circumstance prevents a student who is doing well from completing some requirement by the time grades are due.  Example- someone delivers a baby on the day of the last exam and makes a reasonable judgement call to do it at the hospital instead of while taking the exam.   Delayed grades are not an open opportunity to  procrastinate on assignments, get more time to study for exams, or try again for free when things aren't going well. 

Course Evaluation:
This course is important to me, and I want to make it better. I learn a lot by teaching this course and from student suggestions.  Written comments are much more useful than the summary statistics I get from filled in bubbles. The comments you write on the course evaluations don't get to me until months after grades are in and are anonymous, so you should feel comfortable to write what you think.  I routinely share these comments with my area coordinator ("boss") Dr. Robert Nauss.  If you would rather make a comment to him directly, his E-mail address is robert_nauss@umsl.edu
 


E-mail: ba3320 (at) bud banis . com
Campus office CCB 230
On-campus phone 314-516-6136
Off-campus 636-394-4950
Return to Bud's Page
 
 
 
 

 

 Bud's Statistics Book sites:
heuristicbooks.com
statisticsbook.com
statisticsbooks.com
std-statistics.com
winningwithstatistics.com
questionnairehints.com
questionnairetips.com
statisticsisforwinners.com
 howslotswork.com
 understandingslots.com
 understandtheslots.com
 


You are person number  to access this page since September 9, 1997 


Go to UM-St. Louis Home Page

Go to UM-St. Louis School of Business Page 


last modified February 9, 2005 ~~ comments and suggestions to rbanis @ jinx . umsl . edu