executive MBA subject 15
Global Operations Management
Year 2, term B. 5.0 ECTS, about 125 hours, 6 parts. Part 1 is free.
task, condition, standard
What you will be able to do
Task, condition and standard
Task
Redesign one process and its supply network to improve cost, speed and reliability.
Condition
Given process data, demand forecasts and supplier locations.
Standard
Bottleneck, capacity and lean measures are correct and the network choice is justified with costs.
Who it is for: Managers who run processes, plants, service centres or supply networks.
how this subject works
Free entry, voice and your learning style
Part 1 is free to try. Read it, listen to it and answer it before you decide. Join the programme, or this subject on its own, to open the other parts.
- Listen. Every part has a Listen button that reads it aloud.
- Speak or type. Answer each part by talking (press Speak) or by typing. Your answers stay on this device only.
- Learn your way. Every part has a See, Hear, Do and Read-and-write route. Not sure which suits you? Take the eight-question learning-style check.
6 parts
The parts, with worked examples
Part 1 Operations strategy 21 hUnderstand: explain
Operations compete on cost, quality, speed, reliability or flexibility. You cannot be best at all; choose what matters most to customers.
- Order winners and order qualifiers
- Trade-offs between cost and flexibility
- Align operations with strategy
Worked example: Worked-example figures, in your currency. Customers rank on-time delivery first. On-time is 85%; a competitor is at 95%. Raising it is worth more than a 2% price cut.
Activity: Name the order winner for your product and its current level.
Standard: Winner chosen with evidence and current level measured.
Learn your way
- See. Sketch "operations strategy" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Name the order winner for your product and its current level.
Part 2 Process design 21 hAnalyse: find the bottleneck
A process is only as fast as its slowest step, the bottleneck. Improve the bottleneck first.
- Map each step and its time
- Capacity = time available / time per unit
- Bottleneck sets the output of the whole line
Worked example: Worked-example figures, in your currency. Steps take 4, 6 and 3 minutes per unit. The 6-minute step is the bottleneck: 480 minutes a day / 6 = 80 units a day.
Activity: Map a process and find its bottleneck and daily capacity.
Standard: All step times shown and capacity correct.
Learn your way
- See. Sketch "process design" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Map a process and find its bottleneck and daily capacity.
Part 3 Lean process improvement 21 hApply: remove waste
Lean removes waste: waiting, extra movement, overproduction, defects, extra stock, extra processing and unused skills.
- Walk the process and spot waste
- Measure lead time before and after
- Fix causes, not symptoms
Worked example: Worked-example figures, in your currency. Lead time 10 days, of which actual work is 1 day. Value-added share = 10%. Removing two waiting stages cuts lead time to 6 days.
Activity: Find three wastes in a process and estimate the time saved.
Standard: Wastes named and before and after times shown.
Learn your way
- See. Sketch "lean process improvement" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Find three wastes in a process and estimate the time saved.
Part 4 Capacity management 21 hApply: plan
Capacity must meet demand without too much idle cost. Use utilisation and a buffer for peaks.
- Utilisation = output / capacity
- Plan for peaks with overtime, stock or partners
- Very high utilisation causes queues
Worked example: Worked-example figures, in your currency. Capacity 1,000 a week, demand 920: utilisation 92%. Peak demand 1,100 needs 100 extra units from overtime or stock built earlier.
Activity: Plan capacity for a 12-week demand forecast with one peak.
Standard: Utilisation correct and the peak covered.
Learn your way
- See. Sketch "capacity management" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Plan capacity for a 12-week demand forecast with one peak.
Part 5 Supply network design 21 hEvaluate: choose locations
Where to make, store and buy affects cost, speed and risk. Compare total landed cost, not just the purchase price.
- Landed cost = price + freight + duty + holding
- Near suppliers are faster and often less risky
- Dual sourcing reduces disruption
Worked example: Worked-example figures, in your currency. Far supplier: price 10, freight 2, duty 1, holding 1 = 14. Near supplier: price 12, freight 0.5, duty 0, holding 0.3 = 12.8. The near supplier is cheaper overall.
Activity: Compare landed cost for two suppliers.
Standard: Both totals correct and the choice includes risk.
Learn your way
- See. Sketch "supply network design" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Compare landed cost for two suppliers.
Part 6 Operations integrative case 21 hCreate: recommend
Combine strategy, process, lean, capacity and network into one plan for the case firm.
- Answer first
- Figures from earlier chapters
- Implementation steps with owners
Worked example: Worked-example figures, in your currency. "Fix the 6-minute step, cut lead time to 6 days, move to the near supplier at 12.8 landed cost."
Activity: Write a two-page operations plan.
Standard: Plan is consistent and all figures are correct.
Learn your way
- See. Sketch "operations integrative case" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Write a two-page operations plan.
ten checks
Check yourself
Say or write your answer first, then read the model answer.
- Q1. Name five things operations can compete on.
Model answer: Cost, quality, speed, reliability, flexibility. (Covered in part 1: Operations strategy.) - Q2. What is an order winner?
Model answer: The factor that makes customers choose you. (Covered in part 1: Operations strategy.) - Q3. Steps 4, 6 and 3 minutes. Bottleneck?
Model answer: The 6-minute step. (Covered in part 2: Process design.) - Q4. 480 minutes / 6 minutes per unit. Capacity?
Model answer: 80 units a day. (Covered in part 2: Process design.) - Q5. Lead time 10 days with 1 day of work. Value-added share?
Model answer: 10%. (Covered in part 3: Lean process improvement.) - Q6. Name three kinds of waste.
Model answer: Waiting, movement, overproduction, defects, stock, processing or unused skills. (Covered in part 3: Lean process improvement.) - Q7. Output 920, capacity 1,000. Utilisation?
Model answer: 92%. (Covered in part 4: Capacity management.) - Q8. Why avoid utilisation near 100%?
Model answer: Queues and delays grow fast. (Covered in part 4: Capacity management.) - Q9. Price 12, freight 0.5, duty 0, holding 0.3. Landed cost?
Model answer: 12.8. (Covered in part 5: Supply network design.) - Q10. Why use dual sourcing?
Model answer: To reduce the impact of disruption. (Covered in part 5: Supply network design.)
slides L1 to L7
The seven-level ladder, slide by slide
- Slide 1: L1 Operations. Making and delivering. Speaker note: Say: put "operations" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 2: L2 Strategy. Order winners. Speaker note: Say: put "strategy" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 3: L3 Process. Bottlenecks. Speaker note: Say: put "process" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 4: L4 Lean. Removing waste. Speaker note: Say: put "lean" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 5: L5 Capacity. Utilisation and peaks. Speaker note: Say: put "capacity" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 6: L6 Networks. Landed cost and risk. Speaker note: Say: put "networks" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 7: L7 Operations leadership. An integrated plan. Speaker note: Say: put "operations leadership" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
how it is judged
Marking rubric
| Criterion | Not yet | Meets | Exceeds |
|---|---|---|---|
| Accuracy | Several figures or facts are wrong. | Main figures are correct and the working is shown. | Figures are correct and checked a second way. |
| Use of global operations management tools | Tools are named but not used. | The right tools are used for each step. | Tools are adapted to the case and their limits are stated. |
| Recommendation | No clear answer. | A clear answer backed by the analysis. | A clear answer that also says what would change it. |
| Communication | Hard to follow. | Answer first, clear and short. | Clear, short and persuasive under questions. |
jobs this leads to
Where this takes you
- Operations manager. Runs processes day to day.
- Supply chain manager. Designs and manages the network.
- Continuous improvement lead. Runs lean projects.
language
Choose your language
This subject is in English first. Choose any language and the page is translated for you by machine, with the English kept as the official text.
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Keep going
Draft for review. Not live. Credit values are aligned with the European credit system for orientation only and are not an accreditation.