Operations Project Management MSOM 306 001 Course Introduction

Operations & Project Management MSOM 306. 001 Course Introduction & Lecture 1 Al Baharmast, Ph. D.

Course Introduction Agenda • Who’s Here? – Any Area of Operations or Project Management that Interests you Most (… or interests you at all)? • • Syllabus Overview & Course Administration Andon Card The World is Flat? Introductory Lecture – Fundamental Concepts

Who’s Here? – Name – Are You Currently Working? Part-Time/Full-Time? Where? – Any Area of Operations that Interests you Most (or At All)? • • • Operations Strategy Global Operations Management Project Management -What about it? What are you thinking of doing? Quality Management Business Process Management Facility Location Facility Layout HR and Job Design Supply Chain Management Inventory Management Enterprise Business Systems (ERP/CRM) – Favorite Food/Drink/Restaurant

Syllabus Overview & Course Administration

Syllabus Overview & Course Administration Key Resources – Skillport - https: //gmu. skillport. com Computer Based Training on Project Management and Microsoft Project Skillport Administrator mshoup@gmu. edu Microsoft Developer’s Network Academic Alliance https: //msdn 06. eacademy. com/gmu_mgmt. Microsoft Software MDSNAA Administrator sommsdn@gmu. edu

Syllabus Overview & Course Administration Team Project I – Staging an Event Project Your team is vying to win a contract to support the preparations for and management of a major local event. The event is to raise money to a national charity. The event financiers would like to hire a firm to plan, organize and run this event. Their only guidelines are as follows – The event must accommodate a minimum of 10, 000 attendees. Food and drink must be provided (whether by concession or made available as part of the entry fee). The event project team must plan the venue, promotions, security, music/entertainment, food/drinks services and the cleaning services during and after the event. They must also make this event profitable! Assignment – Prepare a presentation to sell the event project team’s services. The team must have a project manager and its members must each be assigned at least one area of responsibility among the team’s assigned tasks. Artifacts that must be included the presentation include – -Event & Project overview -Description of project team qualifications/capabilities -Proposed venue, promotions, security, entertainment, food/drink and cleaning plan -Project financial proposal (realistic assumptions for revenues, costs & net income) -Project risk overview -Project plan (WBS and GANTT Chart to be provided as hand-outs) -Assessment of the critical path and critical tasks

Syllabus Overview & Course Administration Individual Project II – Product Design Project You are tasked to manage a new product design for an actual company. You will be responsible for assembly of your product design team, planning of your product design project and development of a House of Quality as a preliminary deliverable. Since this is to be a realistic project, you must research a product idea (either a tangible good or service) that a specified company might bring to market (not one that has already been brought to market by that company). • Start by clearly identifying – • Your company • Your proposed product • The target customer segment/segment group (identifying where the customer is and who the customer is) There are, then, two key elements to this project – • Planning for Product Design • Identification of the product design team – describe who will be assigned to this project (identify their roles in the company and be sure to make this a cross functional team) • Development of a project plan (a Work Breakdown Structure that is at least 30 lines long with an accompanying GANTT Chart); this plan will identify key product development tasks at a high level and the associated task durations and dependencies • Developing a Product Design • Identification of Customer Needs/Wants (minimum of six) • Development of a House of Quality with all its Facets

Syllabus Overview & Course Administration • Exam Policies: Exam dates are indicated on the course calendar (above). Makeup exams will only be provided for documented emergencies. • Class Attendance: Attendance is essential. In addition to clarifying and reinforcing readings, lectures will introduce new information that will be covered in exams. Moreover, guest lectures may add further, practical perspectives on the topics presented in the readings. • Honor Code: Student members of the George Mason University community pledge not to cheat, plagiarize, steal, or lie in matters related to academic work. Any action that appears to violate the University’s honor code will be reported. • Students with Disabilities: If you are a student with a disability and you need academic accommodations, please see me and contact the Disability Resource center (DRC) at 993 -2474. All academic accommodations must be arranged through the DRC.

ANDON CARD Purpose: • • Allows a student to immediately get the instructor’s attention. May be used as often as necessary. – Beware, excessive use will diminish its value. Use when: • • You have noticed a quality issue (i. e. , a question) that requires production activities stop. You are really confused and need immediate clarification. Instructions for use: • • Hold card in hand Wave it above your head Response: • • Classmates will clap to congratulate you for serving the interest of the entire class. Classmates will raise their hands to offer help/suggestions/answers to questions. Historical Background: • • The “Andon Cord” is a rope strung above an assembly line and is one of the elements of the Toyota Production System. When the Andon Cord is pulled, the line stops so that a problem can be addressed immediately. Empowers the workforce to stop the process in case corrective action is needed. Makes problems visible.

The World is Flat? Thomas Friedman’s perspectives on the impacts of globalization and technology on business, society and economic evolution Tom Friedman – NY Times Columnist and Bethesda, MD native Video: 1: 27 – 2: 03 (Runtime – 20 minutes)

The World is Flat? • • • World Trade Organization - The WTO develops ground-rules for international commerce, mediates trade disputes. Competitive Playing Field “Offshoring” (ref. Foreign Direct Investment, National Perspective and Globalizing Operations, Firm Perspective) Economic Rights & Obligations: Equal Treatment Competitive Flattening – Tax Breaks, Education Incentives, Subsidies, Low Cost Labor (and political stability) Progression of Production Capabilities from Sold in China… to … Made in China… to … Designed in China… to … Dreamed Up in China Contribution of Profits back to Onshore Activities Offshoring not just to get access to low wage labor but access to foreign markets – 90% of offshore activities result in foreign sales 1/3 of foreign trade is within Multi-National Companies (MNCs) Do Others Offshore to America?

The World is Flat? • • Supply-Chaining – Collaborating (not Horizontally, but…) Vertically Common Standards in the Supply Chain Removal of Supply Chain Frictions – Goal “Frictionless” Supply Network Adoption of Efficiencies – Best Practices Emulation Global Collaboration Efficiency Can Come with Controversy Walmart’s “Vendor-ville” – Supply Chain Clustering Walmart – World’s Biggest and Most Profitable Retailer • • • Get an Edge by Cutting Out the Middlemen – “Disintermediation” Centralization of Distribution Centers Focused on – – Supplier’s Product Cost Reduction – Supply Chain Cost Reduction – Technology Improvement – Learn what the customer wants and when they want it and get that information to suppliers • Scale (Efficiency) and Scope (Product/Market Breadth & Synergy)

The World is Flat? • • The logistics revolution & those guys in the ‘funny brown shorts” In-sourcing – horizontal value creation through logistics business process outsourcing - a function called 3 PL (Third-party logistics) UPS and FEDEX as managers of your company’s global supply chain or some aspect of that supply chain Enabling small businesses to compete globally 2% of the world’s GDP on the back on UPS vehicles on any given day Not only supporting the supply chain, but financing the supply chain End of runway services; enabling ‘postponement’

Fundamentals Efficiencies of Scale and Scope • Returns on Scale and Scale Efficiencies – Supply Side Consideration – Can I increase my scale of production to achieve greater returns? – Examples of increased scale - Greater factory production capacity, more restaurant seat, more call center employees. – Scale efficiencies are finite – how much more capacity do I provide for in order to stay in step with demand? • Returns on Scope and Scope Efficiencies – Demand Side Consideration – Can I increase the products I carry and markets I reach to achieve greater returns? – Efficiencies – I can use the same marketing/sales resources to sell a broader range of products. – Synergies – I can satisfy customers by offering complementary goods/services. – Examples of increased scope – Not just three ice cream flavors, but 52. Arm and Hammer is not just for cooking but for cleaning and deodorizing. – Scope efficiencies are finite – how much can I increase my scope before my brand is impacted, my scalability is effected.

Fundamentals Vertical and Horizontal Integration • Vertical Integration – Relates to control over acquisition of inputs, production of good and services and delivery of outputs – The greater the control (including collaborative control), the more vertically integrated – If a firm’s value chain is integrated with that of its suppliers (and their suppliers), its transportation logistics partners and its customers, it is said to be vertically integrated • Horizontal Integration – Relates to control over the same level of the value chain • If I am an audio electronics retailer, do I have all the products I need to attract and retain customers? Should I add complementaries, substitutes? Did I complete the product line? Should I invest in e-tailing as well as a retailing? – The greater the control over the level of the value chain, the horizontally integrated. – Think economies of scope.