Master of Science in Business Administration

SUSTAINABLE SUPPLY CHAIN MANAGEMENT

Syllabus

Updated A.Y. 2016-2017

PROCESS IMPROVEMENT & SUSTAINABILITY

Dr Haritha Saranga
Airbus Group Endowed Chair Professor of Sourcing and Supply Management
Indian Institute of Management Bangalore, INDIA
(harithas@iimb.ernet.in)

Context of the course
Increasingly the success of business is dictated by the degree of efficiency and quality of the business processes that lie beneath the core competencies of an organization. Successful organizations are constantly improving their processes to stay ahead taking advantage of latest technologies, while the followers are not far behind in catching up with the frontier firms. Organizations that are not in the race soon cease to exist in today’s world of global competition. As a result, there is a greater need for managers and consultants to not only know how to design and analyze a business process but to be able to identify ways to improve the process and sustain the improvements in the long run to meet the organizational objectives more effectively.

Objectives of the Course
This course focuses on analysis and improvement of processes used for production and delivery of products and services, with a performance orientation. The learning objectives of this course are (i) provide a clear understanding of various business processes, (ii) learn to identify scope for potential improvements, (iii) learn existing tools and techniques for performance enhancement in organizations and (iv) be able to design a framework to implement the process improvement strategies in a variety of contexts.

Content of the Course
Concepts like Factory Physics, Product Process Matrix, Theory of cumulative capabilities and the Theory of performance frontiers will be used to create a greater understanding of inherent nature of operating processes. Various case studies from manufacturing and service operations will be used to further the understanding and scope for improvement. Benchmarking tools like Balanced Score Card, Pareto analysis, statistical process control and quality improvement tools like TQM, TPS, Lean Manufacturing and Six Sigma will be studied to analyze, evaluate and improve processes. Usefulness and challenges faced by IT enabled advanced manufacturing technologies and role of Flexible Manufacturing Systems (FMS) in improving business processes will be explored with the help of case studies of organizations that embraced these systems and technologies across the globe. Learning from this course will enable a systematic method of asking questions, collecting data, and analyzing that data to learn how processes work, how to improve them and how to sustain the improvements in the longer run.

Attendance
Much of the learning happens both during your preparation and discussion in class involving mutual exchange of ideas. Hence, attendance and participation in all sessions is expected. Part of the class participation marks will be awarded through attendance. Each session will carry 0.5 marks weightage.

CALENDAR OF LESSONS

Module I: Business Process Fundamentals

27th April
Operations as a Source of Competitive Advantage; Performance Measures for Analysing Operations, MTO & MTS
Reading: Chapter 1 (MBPF)
27th April
Process analysis: Concept of Bottleneck, Cycle Time, Resource Interference; Factors affecting Operations Performance
Case: Kristen’s cookie
Readings: Chapter 3 (MBPF)
28th April
Topic: A Dynamic approach to Operations Management
Readings: Jaikumar and Bohn “A Dynamic approach to Operations Management: An alternative to Static optimisation” International Journal of Production Economics. 1992, 27, pp: 265-272.
28th April
Topic: Gaining Process Knowledge in a Process Industry
Case: Solagen: Process Improvement in the Manufacture of Gelatine at Kodak
Reading: Michael Hammer, “Deep Change – How Operational Innovation Can Transform Your Company”. HBR, April 2004.
3rd May
Topic: Understanding Process Flexibility
Case: Stermon Mills Incorporated
Reading: David M Upton, “The Management of Manufacturing Flexibility”, California Management Review. 1994, 36(2).
3rd May
Topic: Challenges in Process Transformation – The Product Process Matrix
Case: Flow Line in a Job Shop – The story of Ace Designers
Readings: Benchmarking: How to learn from Best-In-Class Practices, National Productivity Review (1986-1998); Summer 1992; 11(3); pg: 301-315.
4th May
Supply Chain Coordination
Reading: Beer Game hand out
4th May
Beer Game and Analysis
Readings: Chapter 10 (MBPF) pg: 315-321 (Sec # 10.5)
5th May
Topic: Need for streamlining IT systems and internal organizational functions
Case: Process Reengineering in Emerging markets – An Automaker’s Experience
Reading: Steven Spear and Kent Bowen, “Decoding the DNA of the Toyota Production System”, HBR, September – October, 1999.
5th May
Just-in-Time Systems; Lean Management
Case: Toyota Motor Manufacturing
Readings: Chapter 10 (MBPF) pg: 298-315; 321-327
The DNA of the Toyota Production System

Module II: Process Measures and Improvement methodologies

10th May
Topic: Need for Metrics and measurement techniques – The Balanced Scorecard
Reading: Robert S Kaplan and David P Norton “The Balanced Scorecard: Measures That Drive Performance” HBR Classic, July 2005
10th May
Topic: Role of Quality in Process Improvement
Case: Hank Kolb, Director of Quality Assurance
Readings: David A Garvin, “A Note on Quality: The views of Deming, Juran and Crosby” HBR, February 1990.
11th May
Topic: How to use Statistical Process Control (SPC) in a Service Context?
Case: Deutsche Allgemeinversicherung
Reading: Statistical Quality control for process development, HBS
11th May
Topic: How exactly does Six-Sigma Capability help?
Case: Six Sigma Quality at Flyrock Tires
Reading: Michael Hammer, “Process Management and the Future of Six- Sigma” MIT Sloan Management Review, Winter 2002, Vol. 43(2).
12th May
Topic: Role of Six Sigma in Improving Customer Experience
Case: Apollo Hospitals: Differentiation through Hospitality, IMB 425
Reading: Govindarajan, V, and Ramamurthi, R. “Delivering World-Class Healthcare, Affordably”, HBR November, 2013.

Module III – Sustainable Processes to improve Operations

12th May
Topic: Process Designs that exploit Economies of Scope
Case: Polyface: The Farm of Many Faces
Reading: Kleindorfer, Singhal, Van Wassenhove “Sustainable Operations Management”, Production and Operations Management, 14(4), 2005.
17th May
Topic: Environmental sustainability and its implications
Case: Cradle to cradle design and Herman Miller: Moving towards environmental sustainability
Reading: Unruh, Gregory C. The Biosphere rules, Harvard Business Review, February 2008; pp. 1-8
17th May
Topic: Balancing environmental and social objectives with shareholder objectives
Case: Amanco - Developing Sustainability Scorecard
Reading: Robert S Kaplan and David P Norton “Scorecard from Performance Measurement to Strategic Management: Part I,” Accounting Horizons (March 2001): 87–104.
19th May
Topic: three-step approach to managing greenhouse emissions
Case: Sustainability at Millipore
Reading: Emily Rochon and Paul Dickinson, “Are Corporate Carbon Intensity Targets Greenwash?” Ethical Corporation, March 2009.
19th May
Topic: Tools for building commitment to sustainability
Case: Governance and Sustainability at Nike (A)

Module IV – Designing and implementing operations improvement strategies

24th May
Topic: Framework for implementation of process improvement strategies
Readings: Michael Hammer, “The Process Audit”, HBR, April 2007.
24th May
Topic: Pitfalls in Process Improvement without Ownership
Case: Micom Caribe (A)
Reading: Harold Sirkin and George Stalk, Jr. “Fix the Process, Not the Problem” HBR, July – August 1990
26th May
Topic: Course Review & Wrap-up
Readings: Nelson P. Repenning and John D. Stermon, “Nobody Ever Gets Credit for Fixing Problems that Never Happened: Creating and Sustaining Process Improvement”, CMR, 2001, 43(4).
26th May
Project Presentations

Course material
Text book (MBPF): Anupindi, Chopra, Deshmukh, Van Mieghem and Zemel, (2013), Managing Business Process Flows, Prentice Hall. 3rd Edition.

Course pack: Rest of the course contents (other than MBPF) that are listed in the session plan will be provided in a course pack.

Pedagogy
The course predominantly is case-based. Each session is of 90 minute duration. The students have to form groups of size four each. Each group has to submit two case analyses. The groups have to turn-in the case analyses (soft copy) before the respective class begins. Also each group has to take up a project for the term, submit the report and make a presentation at the end of the term.

Instructions regarding timelines for group formation and project work
It is required to form groups of four and inform by e-mail at the end of first week. The schedule of case submissions by the groups would then be announced. All the groups are required to decide and submit their project proposal by the end of 2nd week, which will be taken up for discussion in the subsequent week. The final project reports and presentations (soft copy) have to be submitted by the end of 5th week.

Evaluation:

Case Analyses (2)        20%
In class Quizzes           10%
Class Participation        20%
Project                           25%
End Term Examination 25%