Free Essay

Process Management

In: Business and Management

Submitted By mgsm123
Words 2041
Pages 9
Version 0.99
University of Illinois at Urbana-Champaign
College of Commerce and Business Administration

BADM 467 - Process Management

Summer 2003

Dilip Chhajed Nick Petruzzi
323 DKH 328D DKH office hours: office hours:

Process Management includes a myriad of activities: insuring that a product or service is of high quality, choosing the appropriate design and technology for producing a good or service, planning and controlling the flow of materials or customers so that lead times are minimized, and distributing finished goods or services. Relevant decisions range from how much material to order for making a product, to determining how much capacity is needed to provide a good level of service, to evaluating which technology will best meet a company's needs. In short, this course focuses primarily on developing and applying tools and techniques to ensure that the right products and resources are at the right place at the right time so as to maximize profit within a business process or supply chain. The “products” could be either goods, services, or both; and the “resources” could be either material, people, money, information, or any combination of the four.

In the first part of this course, we will focus on process design and improvement issues by studying the relationships between key process parameters such as capacity and throughput, and by analyzing processes in order to identify and eliminate bottlenecks. And, in the second part of the course, we will focus on process coordination issues by studying methods for the efficient planning and controlling of critical resources.

Specific objectives are:
To describe an operating system or a business process and how it can be used as a competitive weapon in a variety of manufacturing and service organizations.
To understand decisions faced by operations managers, the skills required to make these decisions effectively, and how these decisions integrate with the overall strategy of the firm.
To highlight many of the interfaces between the operations function and other functions of the firm such as finance, accounting, and marketing.
To develop skills in analyzing operating processes, assessing economic trade-offs, and defining planning and control mechanisms.


The approach to this course is both lecture and case analysis. We will develop concepts and tools in class, but the true test in learning a new concept or tool is whether or not it can be applied.

Working in teams of 5, you will have the opportunity to hone skills and explore application possibilities through homework problem sets and case studies. The team aspect is important because group deliberation often opens avenues of thought otherwise not considered even to exist. Of the cases that we study, some are geared toward stimulating thinking about an issue (e.g., Toyota Motor Manufacturing), and others present a business problem that requires diagnosis, analysis, and development of a plan of action (e.g., Sea Pines Racquet Club). However, all cases have been chosen to illustrate basic concepts of process management as they apply to a variety of organizations and to stimulate discussion between you and your classmates. Therefore, class participation is a necessary element in the process.
You may organize yourself into teams of 5, but try to have your team in place by the second session so that you will have sufficient time to collaborate before the first assignment is due. If your team is not established by the third session, please let me know by the beginning of class; I will help.

Materials (Required)

(1) Ritzman and Krajewski (2003), Foundations of Operations Management, First Edition, Prentice-Hall, New York. (Abbreviated as KR.)

(2) Goldratt, E.M. (1992), The Goal: A Process of Ongoing Improvement, Second Edition, North River Press.

(3) Readings and Cases: “Michigan Manufacturing,” HBS Case Study (# 9-694-051) “Dore Dore” HBS Case Study (# 6-689-030) “Manzana Insurance –Fruitvale Branch,” HBS Case Study (#9-692-015) “Toyota Motor Manufacturing, U.S.A., Inc.,” HBS Case Study (# 9-693-019) “Benihana of Tokyo,” HBS Case Study (# 9-673-057) “Sea Pines Racquet Club,” HBS Case Study (# 9-674-011) “Johnson Controls, Automotive Systems Group” HBS Case Study (# 9-693-086)


Your course grade will be based on two exams and 4 homework assignments. The homework assignments comprise problem sets and case reports; they are to be completed by your team. Each exam must be an individual effort (surprise, surprise).

A letter grade for the course (A+, A, A-, B+, B, B-, C+, C, C-, F) will be assigned based on a relative scale. Homework Assignments 40% Exam I 30% Exam II 30% TOTAL 100%

Homework Assignments

Each team is required to submit 5 homework assignments (each case is worth 5% and each problem set is worth 10% of the grade). The purpose of the homework is to provide a structured framework for applying concepts and tools from class and to serve as practice for the exams.

The due date for each assignment is as follows: Homework 1: Case Report (Dore-Dore) Sessions 6 (Jun 24) Homework 2: Case Report (Manzana) Sessions 9 (Jun 30) Homework 3: Problem Set Session 10 (Jul 1) Homework 4: Problem Set Session 18 (Jul 15) Homework 5: Problem Set Session 25 (Jul 28)

All assignments are due at the beginning of class. You may want to bring an extra copy for yourself.

Case Reports and Preparation. Some of the homework assignments will be in the form of case reports. In addition, cases often will be assigned as preparation for classroom discussion.

Case reports should not be more than one page in length (single-spaced, font size 12, one inch margins) with up to two additional pages of exhibits. Divide your report into three sections:
Background (What is the case about? Identify one or two major problems.); Analysis (what are the causes of the problem(s) identified? What are the alternatives to solve the problem? , and Recommendations (what is your recommendation to solve the problem in short term and long term? Address any implementation concerns.). A grading penalty will be assessed for reports/outlines that do not conform to these formats. Additional pages will be ignored, so please adhere to the page limits.
A list of “case discussion questions” has been prepared to guide your analyses of the cases, both written and otherwise. In general, these questions are not all-inclusive or exhaustive. They are intended to guide your analysis of the case, but not preclude you from exploring other avenues or questions that may occur to you. On the other hand, it is usually true that clear and comprehensive answers to the assigned questions will comprise a good written analysis of a case. So, if in doubt, cover the questions thoroughly first, then explore other avenues for an excellent report.

No outside research is expected for any of the case reports.

Case Discussion Questions

Michigan Manufacturing
1. Study Exhibit 2 in the case carefully. Can you explain why overhead costs vary so greatly from plant to plant in Michigan Manufacturing’s system?
2. Why have managers in the Heavy Equipment Division under invested in the Pontiac Plant?
3. Should Noelle Allen close the Pontiac plant? If so, what should she do with the products currently manufactured in Pontiac? Should she follow the recommendations of her task force? If you believe she should continue to operate the plant, what if anything, should she do to transform it into a profitable operation?

Dore Dore

1. How does the performance of the traditional operation and cellular manufacturing system in the children’s knitwear operations differ?
2. Should Dore-Dore implement cells in its hosiery production area? If so, would you suggest any changes to the cell design as currently proposed by M. Enfert? If not, what alternative approaches could Dore-Dore take to address the concerns M. Marguet raises in the case?

Manzana Insurance

1. What is the basis for competition in the market that Fruitvale serves?
2. What is your assessment of the rules used to assign priorities at Fruitvale?
3. What are the important measures of operating performance for the Fruitvale branch? How well has the branch been performing according to these measures?
4. Why have profits been deteriorating over the past year?
5. What are your recommendations for managerial action? In particular, how should Manzana respond to Golden Gate’s new policy of one-day service?

Toyota Motor Manufacturing

1. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts?
2. What options exist? What would you recommend? Why?
3. Where, if at all does the current routine for handling defective seats deviate from the principle of the Toyota Production System?
4. What is the real problem facing Doug Friesen?

Benihana of Tokyo
1. What is the Benihana concept (what differentiates Benihana from other restaurants)?
2. Consider the typical flow of customers through Benihana’s. How well thought out is Benihana’s operating system?

Sea Pine Racquet Club
1. What is the dilemma facing John Baker? What are his options? (Think in terms of supply and demand.)
2. What should he do for the coming season? For next year?

Johnson Controls
1. Analyze the process flow at the Georgetown Plant. How does the flow of information fit in?

Tentative Course Outline

Jun 16 Session 1 Topic: Introduction to Process Management Readings: 1. Chapter 1 (KR).

Jun 17 Session 2 Topic: Process Types Readings: Chapter 2 (KR); LFKHS and Chaparral Steel plant tours in CD-ROM

Jun 18 Session 3 Topic: Process Strategy Case: Michigan Manufacturing, prepare answers to the “Case Discussion Questions” Readings: Chapter 2 (KR)

Jun 19 Session 4 Topic: Process Management: Bottlenecks Readings: Chapters 1-12 of The Goal

Jun 23 Session 5 Topic: Process Analysis; Line Flow Readings: Chapters 13-20 of The Goal

Jun 24 Session 6 Topic: Process Analysis I: Cell Process Case: Dore Dore, prepare answers to the “Case Discussion Questions” Submit: Case Report

Jun 25 Session 7 Topic: Process Quality Management Case: Cranston Nissan in CD-ROM. Prepare questions at the end of the case Readings: 1. Chapter 5 (KR)

Jun 26 Session 8 Topic: Process Quality Management: Statistical Process Control Readings: 1. Chapter 5 (KR)

Jun 27 Plant Trip (8:00 am – 12:00 noon)

Jun 30 Session 9 Topic: Process Analysis II: Service Application Readings: 1. Chapter 6 (KR) Case: Manzana Insurance, prepare answers to the “Case Discussion Questions” Submit: Case Report

Jul 1 Session 10 Topic: Lean Production Readings: Chapter 13 (KR) Submit: Homework 1 (Problem Set)

Jul 2 Session 11 Topic: Lean Production Case: Toyota Motor Manufacturing

Jul 3 Session 12 Topic: Exam I Readings:

Jul 7 Session 13 Topic: No class in lieu of the plant trip

Jul 8 Session 14 Topic: Integrated Operations Case: Benihana

Jul 9 Session 15 Topic: Waiting Line Management Reading: 1. Supplement 6S, pages 181 – 186 (KR)

Jul 10 Session 16 Topic: Capacity Planning Case: Sea Pines Racquet Club

Jul 14 Session 17 Topic: Coordinating Supply and Demand

Jul 15 Session 18 Topic: Resources Planning Reading: 1. Chapter 12, pages 399 – 409 (KR) Submit: Homework 2 (Problem Set)

Jul 16 Session 19 Topic: EOQ Decision Framework Readings: 1. Chapter 10, pages 323 – 334 2. CD-ROM Supplement H, H.4 – H.7

Jul 17 Session 20 Topic: EOQ Application Challenge: To be issued

Jul 21 Session 21 Topic: Continuous Review Systems Readings: 1. Chapter 10, pages 335 – 342 (KR)

Jul 22 Session 22 Topic: Periodic Review Systems Readings: 1. Chapter 10, pages 342 – 347 (KR)

Jul 23 Session 23 Topic: Short Life-Cycle Systems Readings: 1. CD-ROM Supplement H, H.7 – H.10 (KR)

Jul 24 Session 24 Topic: Just-In-Time Manufacturing Case: Johnson Controls, Automotive Systems Group Readings: 1. Chapter 13 (KR)

Jul 28 Session 25 Topic: Revenue Management Part I Activity: Yield Management Game Submit: Homework 3 (Problem Set)

Jul 29 Session 26 Topic: Revenue Management Part II

Jul 30 Session 27 Topic: Supply Chain Incentives and Control

Jul 31 Session 28 Topic: Supply Chain Incentives and Control

Aug 4 Session 29 Topic: Supply Chain Coordination Readings: Beer game (Class in 370 WH at 8:30 am)

Aug 5 Session 30 Topic: Supply Chain Coordination

Aug 6 Session 31 Topic: Review Session

Aug 7 Session 32 Topic: Exam II

Similar Documents

Premium Essay

Management Process

...Describe the management process. Explain how managers use their roles and skills to carry out their management functions? * Describe the basic management process * Discuss manager roles and skills used in performing management functions * Use an organisation to provide examples for your discussion beginning to end. Management is the process of reaching organizational goals by working with and through people and other organizational resources. It is a process or series of continuing and related activities, involves and concentrates on reaching organizational goals and it reaches these goals by working with and through people and other organizational resources. The key managerial functions are planning, organizing, leading and controlling and are all crucial to the success of any manager. Managers exist in every business. In fact, managers do the same types of tasks in all businesses. Whether a person manages a hair salon or a factory, the manager’s job consists of similar tasks. Planning, organizing, leading and controlling all serve an important part in achieving management’s vision. Each component is important and one cannot function well without the others. Planning is preparing a sequence of action steps to achieve some specific goal. It is usually short term and stresses on the formulation of functional plans such as day-to-day operation plans. It is foreseeing future circumstances and requirements....

Words: 4181 - Pages: 17

Premium Essay

Process Management

...Process Management (Evaluate) Please use the following 6 criteria to evaluate the attached paper on Human Resource and hiring process at HFHS. Also check for grammar and punctuation including structure of the paper. Corrected grammar and punctuation in original document I attached. I am using that to enter the evaluation information you requested. 1) Provide background information on the organization, why the process was selected for study, and the approach used to complete this assignment   Covered 2) Describe, Document and Flowchart the existing process. You may use a software tool for flowcharting (see information on flowcharting in the Course Content area). The paper describes the recruitment process but you need to detail the flowchart. If you look up flowcharts, you will find a flow chart more like this one that you can find at the following web location: The following is an example of a detail of the Application Process in HR. 3) Identify performance measures that you would use to determine the baseline performance for the current process in order to assess any improvements.       Covered very well. 4) Research the Web and other sources for benchmark information (best practices) on the selected process and/or similar processes. Summarize your research findings....

Words: 3880 - Pages: 16

Premium Essay

Management Process

...Strengthen the communication process of the organization. 9 2. The company should identify human resource as a strategic resource. 10 Introduction This case study is based on a TV set manufacturing and assembling company named Super TV. Melani is the head of the department that manufactures and assembles of television receivers. Her department consists of talented employees who have knowledge about all the phases of the production at the same time her department usually walk off with honor award for their excellent work in every year. At the same time Mr leelarathne her immediate supervisor and Mr ariyasena the vice president of the division have started a poor management practice they did not inform Melini on their decisions on time. Due to that fact performance of her department has gone down number of rejections and customers complain have gone up. Recently Mr Leelarathna and ariyasena have decided to introduce new sopheficated model which they have test it with outside contractor. They...

Words: 2066 - Pages: 9

Premium Essay

Management Process

...It also highlights the relationship between accounting and management information systems. Finally, accountants, information system professionals, lectures, students and the general public are recommended to get copies. CHAPTER 2 LITERATURE REVIEW Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations. AIS TECHNOLOGY Input The input devices commonly associated with AIS include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come "Web-enabled" to allow devices to connect to the World Wide Web. Process Basic processing is achieved through computer systems ranging from individual personal computers to large-scale enterprise servers. However, conceptually, the underlying processing model is still the "double-entry" accounting system initially introduced in the fifteenth century. Output devices used include computer displays, impact and nonimpact printers, and electronic communication devices for EDI and e-commerce....

Words: 2206 - Pages: 9

Free Essay

Process Management

...A particular program becomes a process when an executable file is loaded into memory. The two most common techniques used for loading the executable files are either by double clicking the icon which represents the executable file or by entering the executable file name on the command line. ABSTRACT Process management is an integral part of any operating system now a days. The operating...

Words: 515 - Pages: 3

Premium Essay

Process Management

...Business process is the skeleton of a certain business activity. It involves the description of...

Words: 773 - Pages: 4

Premium Essay

The Management Process

...The Management process entails 4 essential managerial tasks. Each task holds a certain importance to the process and essentially aids in achieving a managers highest goal: setting high performance. Each of these tasks adds to the efficiency and effectiveness of a manager’s unique managing style and process. The four essential managerial tasks are planning, controlling, leading, and organizing. In order to understand how each are important let’s first explain each task. Planning deals with choosing appropriate organizational goals and courses of action to best achieve those goals. In this task, managers decide which goals the organization will pursue, what strategies to adopt to attain those goals, and how to allocate organizational resources to pursue the strategies that attain those goals. Lack of proper planning in an organization can lead to inefficiency and ineffectiveness in the organization. Without proper planning it is seemingly impossible to hit a peak level of performance. Planning sets the tone for an organizations success and opens the door to new heights in a manager’s career. Organizing is structuring working relationships so organizational members interact and cooperate to achieve organizational goals. It is the manager’s job to be able to successfully organize the people into departments according to the kinds of job-specific tasks they will perform....

Words: 458 - Pages: 2

Free Essay

Process Management

...PROCESS MANAGEMENT b.1) Multitasking is when there is two or more programs running at the same time and both are working. The processor will allocate some resources to each program. The processor switching back and forth between tasks so quickly that might look like the processor doing the two things at once. It is also means performing more than one process on a single CPU. Multiple processes are queued and wait for their turn to be executed on CPU, but it appears as if they are running in parallel. Each process provides the resources needed to execute a program and at least one thread of execution. A thread is entity within a process that can be scheduled for execution. Windows are supporting preemptive multitasking which creates the effect of simultaneous execution of multiple threads from multiple processes. To allow groups of processes to be managed as a unit, the job object is being used. The job objects are namable, securable, sharable objects that control attributes of the processes associated with them. A multithreaded process can manage mutually exclusive tasks with threads, such as providing a user interface and performing background calculations. Creating a multithreaded process can also be a convenient way to structure a program that performs several similar or identical tasks concurrently. For example, a named pipe server can create a thread for each client process that attaches to the pipe....

Words: 657 - Pages: 3

Premium Essay

Management Process

...Strategic Management Process Effective management practices by Riordan Manufacturing (Hangzhou, China) operations will reward the organization's owners with additional value and sound management practices will result in the manufacture and sale of high quality products. Both attributes contribute to Riordan’s ability to enlarge market share, and expand into the Indian market. However, prior to any expansion, Riordan Manufacturing must be "able to deliver the same benefits as Riordan’s competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage)" (Wang, Lin & Chu, 2011, p. 100). The delivery of cost and differentiation advantages, coupled with a strong core strategic management process will support Riordan’s business model regardless of where the company operates. Riordan's management will go through the entire strategic management process for the proposed Indian operations by the incorporating ethics and corporate responsibility (taken into account during the strategic management process). The different phases of the strategic management process include the following: 1. Formulation 2. Implementation 3....

Words: 940 - Pages: 4

Premium Essay

Process Management

...Practical implications – This mutual dependency, bridging individual and organizational learning, enables an improvement loop to become a key aspect for successful business process improvement (BPI) and business process reengineering (BPR), enabling closure of, at the same time, the learning and knowledge loops at individual, group and organization levels. Originality/value – The proposed improvements are relevant with respect to the state of the art and respond to a real need felt by enterprises and further commercial solutions and research projects on the theme. Keywords...

Words: 7954 - Pages: 32

Premium Essay

Management Process

...MGMT 310-50 | Manager Interviews | Individual Project | | | 8/15/2015 | Individual Project: Manager Interviews Executive Summary/Introduction As a process, management is a series of connected functions. Management does not take place in any particular order; it is a continuous process in which managers adjust what they are doing if a situation requires them to do so. The management process consists of the four functions, planning, organizing, and controlling, performed in order to achieve business objectives. The management function of planning is the practice of setting performance goals and identifying what actions should be used to meet them. The function of organizing includes assembling duties, individuals, and other assets to complete business objectives. Motivating people to work hard to achieve good performance standards is a key element in the leading function of the management process. The function of controlling entails calculating performance and taking action to guarantee results (Schermerhorn, 2011, p. 11). Background I chose to interview three managers of different management levels. The first manager is Valerie; she is a mid-level manager in the department of payroll. Valerie works for a government agency, the U.S. Postal Service, which has over 600,000 employees in total. Valerie has 22 employees who report directly to her....

Words: 3379 - Pages: 14

Premium Essay

Business Process Management

...Business Process Management Methodology 1 Introduction From Wikipedia, we copy: «A business process is a set of linked activities that create value by transforming an input into a more valuable output. Both input and output can be artifacts and/or information and the transformation can be performed by human actors, machines, or both. There are three types of business processes: 1. Management processes - the processes that govern the operation. Typical management processes include "Corporate Governance" and "Strategic Management". 2. Operational processes - these processes create the primary value stream, they are part of the core business. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales. 3. Supporting processes - these support the core processes. Examples include Accounting, Recruitment, IT-support. A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. Activities are parts of the business process that do not include any decision making and thus are not worth decomposing (although decomposition would be possible), such as "Answer the phone", "produce an invoice".»...

Words: 8923 - Pages: 36

Premium Essay

Risk Management Process

...A condition where the likelihood is high and the impact is significant, extensive management is required. This is how a certain priority can be established in dealing with the risk.Apart from this, typically most of the organizations follow a risk management cycle. Refer diagram below:According to this cycle there are four steps in the process of risk management. The first step is the assessment of risk,...

Words: 1191 - Pages: 5

Premium Essay

Strategic Management Process

...Strategic Management Process By: MGT/498 Date: Strategic Management Process Below I will describe what the purpose of strategic planning or management is and why it is so important to have a strategic management process within the organization. I will also take a look at Johnson & Johnson and describe their strategic management process. According to Hunger and Wheelen strategic management is “a set of managerial decisions and actions that determines the long-run performance of a corporation” (Hunger, D.J. & Wheelen T.L, 2010, p. 5). This process includes checking for internal and external drivers, long range planning, implementation, and evaluating how the plan is working (Hunger, D.J. & Wheelen T.L., 2010). Every possible route and influence must be looked at when developing the plan. The strategic management process has four phases. First there must be financial planning. No matter what the strategic plan is, there must be money allocated in the budget. Secondly, long-range plans are developed usually on a five or three year term. Thirdly, after the internal drivers are thoroughly examined the external drivers must be scanned. Some of those drivers could be the economy and competitors. Finally the last phase is the strategic management, which incorporates input from lower level management. (Hunger, D.J. & Wheelen T.L., 2010). The strategic management process is important because it enables organizations to plan for the future....

Words: 574 - Pages: 3

Premium Essay

Strategic Management Process

...These characteristics are associated with strategic management such as who will run the business? How will the business make money? Will the business sell items? What items and who will be the target buyers? Or what is the purpose of the business. These questions are in line with the strategic management process and why the process is needed. Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation (Wheelen & Hunger, 2008, p. 5). A strategic management plan primary components generally will include environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Environmental scanning helps a business identify current and future issues along with “monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2008, p. 10). Strategy formulation is the most imperative portion of the plan mainly because it focuses on “effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses” (Wheelen & Hunger, 2008, p. 12). Management is a key component; without effective management theirs no one to implement, enforce and enhance the company. Managers also work with associated whom generally find the flaws that will ultimately help the business....

Words: 465 - Pages: 2