OM Project Tips

Here are some notes on the OM project. Your mission is to choose an organization, or a part of an organization, and analyze its operations. You need to identify the choices that the operation has made regarding the key OM decision categories that we have discussed in class. You then want to tell me how these decisions do or don't support the organization's overall strategy.

I like to see diagrams and examples. This shows me that you can connect the concepts we talk about in class with real life. Even if you can't get real data from the organization, it does not hurt to make some data up in the context of the organization, and work through an example. Diagrams would be particularly useful when explaining process choice and layout. Examples could help your observations on productivity, capacity, location, planning and scheduling, and inventory.

Format. Mostly your choice. Single or double space. Cover page ok. No page maximum or minimum. Do not use binders, folders, or other report cover. A staple will do. Do utilize headings to separate OM decision categories.

1. Background. Provide a brief background on the company you are studying. Also, tell me how you may be concentrating on a particular division, department, or operation to narrow the scope to a more manageable level.

2. Business strategy. How is the organization trying to compete--cost, differentiation, stuck-in-middle, etc? Where is the organization or industry in the product life cycle?

3. Strategic operations. Are there particular themes (such as low cost/efficiency, quality, speed, service, etc) that tend to pervade operating activities? Do they appear connected to the business strategy? Draw a block diagram that identifies the key lower-value inputs, the transformation process, and the key higher-value outputs (both products and services).

4. Productivity and its measurement. Do you think measuring productivity is important to this operation. Why or why not? Provide an example of a productivity measurement appropriate for this operation.

5. Process choice. What is the dominant type of operating process present in the operation? (job, flow, etc) How does this support or constrain the organization's ability to compete?

6. Product choice. Describe the variety of products and services produced by this operations. How does the variety relate to the process choice?

7. Capacity. What is the maximum amount of output possible from the operation? What are the units of capacity for this operation? (e.g., beds, tons per day, etc) Has capacity been designed to handle peak or average demand? Any approaches to demand management or use of flexible capacity? What is the typical capacity utilization? Use examples.

8. Location. What are the strategic issues that were (or should be) associated with the location of this operation? Can you cite any location techniques that could be applied to this operation?

9. Layout. Draw a diagram of the operation's layout. How does the layout relate to process choice? Could layout be improved through the use of OM layout techniques?

10. HR & OM. How are work system concepts such as teams, empowerment, scientific management, or learning curves applied to the operation? Do they support the business strategy?

11. Inventory management. Where is inventory held in the process? (e.g., materials, WIP, finished goods) Provide examples. What are the plusses and minuses of holding inventory for this operation? What inventory management techniques are, or could be, applied to this operation? Can you provide an example?

12. Planning and scheduling. Are operations planned using a level production or chase demand approach? What types of resources must be planned? Does this operation use MRP? What OM scheduling techniques are, or could be, applied to this operation?

13. Just-in-time. How is just-in-time philosophy applied in this operation? Give examples. Cite opportunities where JIT could be more effectively employed.

14. Quality management. How is quality management applied to this operation? Give examples. Cite opportunities where quality management could be better employed.

15. Materials and supply chain management. What are the operations key inputs and how are they managed? Can you draw the supply chain (including upstream and downstream 'links' in the chain) that expresses this operation's industry?

16. Asset management. What are the operation's day of sales in inventory or its inventory turnover? How can this operation be a better asset manager?

17. Summary. The key strengths and weakness of this operation. How well is the operation supporting the business strategy? How would you improve? Be critical here--I like it when you are critical of current operations and identify ways the organization can improve.

Remember, you are trying to demonstrate how well you can connect with the material we've discussed during the quarter. The more examples, the better.