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15.778

Introduction to Operations Management

3-0-6 units · Graduate

Integrated approach to the analysis, design and management of supply networks for products and services. Provides a framework for analysis, design and operation of supply chains (SCs) that relies on fundamental concepts, such as the management of inventory, and operations and logistics planning. Discusses the value of (timely) information and of the need for collaboration and coordination between SC players. Also presents conceptual frameworks that focus on the emergence of a wide range of enabling services that are critical to the survival and growth of this class of system. Includes study and discussion of concepts, examples, and case studies from a wide range of industries. Guest speakers present personal experiences on various aspects of the service industry and supply chains. Restricted to Sloan Fellow MBA students.

Summer 2004 · Management of Supply Networks for Products and Services

Topics

  • Introduction to Supply Networks: Supply Chain Management
  • Supply Chain Management: Logistics
  • Service Vision and Characteristics
  • Service Encounter and Guarantees
  • Customer Satisfaction
  • Customer Retention and Loyalty
  • Creating and Sustaining Excellence
  • Matching Supply and Demand: Tug of War
  • Managing a Global Service Company
  • Introducing a New Service in a Distributed Environment
  • Introducing a New Service in a Distributed Environment (cont.)
  • Matching Supply and Demand: Procurement and Outsourcing
  • Matching Supply and Demand: Managing the Interface - Call Centers
  • Guest Speaker Topic: The Power of Management Capital
  • Supply Chain Management: Road-mapping and Value Chain Design
  • Supply Chain Management: Value of Information
  • Information Technology Services: Internal Organization, Supplier Management, and Outsourcing
  • Supply Chain Governance: UPS Project
  • Supply Chain Management: International Issues
  • Course Summary and Wrap-up

Readings

  • Required Readings
    Listed reading
  • Simchi-Levi, et al. “Introduction to Supply Chain Management.” Chapter 1 in Designing and Managing the Supply Chain . 2002, pp. 1-21. ISBN: 0072492562.
    Listed reading
  • Lee, Hau, Morris A. Cohen, Carl Cull, and Don Willen. “Saturn’s Supply-Chain Innovation: High Value in After-Sales Service.” MIT Sloan Management Review 41, no. 4 (Summer 2000): 93-101.
    Listed reading
  • Suggested Readings
    Listed reading
  • Kahn, G. “Made to Measure: Invisible Supplier Has Penney’s Shirts All Buttoned Up.” Wall Street Journal (September 2003): 2-5.
    Listed reading
  • Lee, Hau L., and Corey Billington. “Managing Supply Chain Inventory: Pitfalls and Opportunities.” MIT Sloan Management Review 33, no. 3 (Spring 1992): 65-73.
    Listed reading
  • McFarlane, Duncan, and Yossi Sheffi. “The Impact of Automatic Identification on Supply Chain Operations.” International Journal of Logistics Management 14, no. 1 (2003): 1-17.
    Listed reading
  • Sheffi, Yossi. “RFID and the Innovation Cycle.” Research Report, MIT Center for Transportation and Logistics . Cambridge, MA, April 2004, p. 1.
    Listed reading
  • van Biema, Michael, and Bruce Greenwald. “Managing Our Way To Higher Service-Sector Productivity.” Harvard Business Review (July-August 1997): 87-97. Reprint #97410: 87-95.
    Listed reading
  • Heskett, James L., Thomas O. Jones, Gary W. Loverman, W. Earl Sasser Jr., and Leonard A. Schlesinger. “Putting the Service-Profit Chain to Work.” Harvard Business Review (1994): 164-174. Reprint #94204.
    Listed reading
  • Bitran, G. R., and M. Lojo. “A Framework for Analyzing Service Operations.” European Management Journal 11, no. 3 (1993): 271-82.
    Listed reading
  • George, W. R. “Internal Marketing and Organizational Behavior: A Partnership in Developing Customer-Conscious Employees at Every Level.” Journal of Business Research 20 (January 1990): 63-70.
    Listed reading
  • Bitran, G. R., and L. Pedrosa. “A Structured Product Development Perspective on Service Operations.” European Management Journal 16, no. 2 (1998): 169-189.
    Listed reading
  • Hart, Christopher W. L. and Leonard A. Schlesinger. “Guarantees Come to Professional Service Firms.” MIT Sloan Management Review 33, no. 3 (Spring 1992): 19-29.
    Listed reading
  • Hart, C. “The Power of Unconditional Service Guarantees.” Harvard Business Review (July- August 1988): 54-61. Reprint #88405.
    Listed reading
  • Bitran, G. R., and M. Lojo. “A Framework for Analyzing the Quality of the Customer Interface.” European Management Journal 11, no. 4 (1993): 385-96.
    Listed reading
  • Reichheld, Frederick F., and W. Earl Sasser. “Zero Defections: Quality Comes to Services.” Harvard Business Review (September-October 1990): 105-111. Reprint #90508.
    Listed reading
  • Berry, Leonard L. “Discovering the Soul of Services.” Chapter 1 in The Nine Drivers of Sustainable Business Success . Free Press, 1999, pp. 1-18. ISBN: 0684845113.
    Listed reading
  • Zeithaml, Valarie A., Mary Jo. Bitner, and Dwayne D. Gremler. “The Gaps Model of Service Quality.” Services Marketing . Prentice-Hall, 2002, pp. 37-49. ISBN: 0072471425.
    Listed reading
  • Garbarino, Ellen, and Mark S. Johnson. “The Different Roles of Satisfaction, Trust, and Commitment in Customer Relationships.” Journal of Marketing 63 (April 1999): 70-87.
    Listed reading
  • Previous Class Readings
    Listed reading
  • Urban, Glen L. “The Emerging Era of Customer Advocacy.” MIT Sloan Management Review 45, no. 2 (Winter 2004): 77-82.
    Listed reading
  • Reichheld, Frederick. “Learning from Customers Defections.” Harvard Business Review (March-April 1996): 56-68. Reprint #96210.
    Listed reading
  • Jones, Thomas O., and W. Earl Sasser, Jr. “Why Satisfied Customers Defect.” Harvard Business Review (November-December 1995): 89-99. Reprint #95606.
    Listed reading
  • Schneider, Benjamin, and David E. Bowen. “Understanding Customer Delight and Outrage.” MIT Sloan Management Review 41, no. 1 (Fall 1999): 35-45.
    Listed reading
  • Stepanek, Marcia. “Weblining.” Business Week. April 3, 2000, e.biz, pp. 26-34.
    Listed reading
  • Adolf, Ruediger, Stacey Grant-Thompson, Wendy Harrington, and Marc Singer. “Current Research: What Leading Banks are Learning about Big Databases and Marketing.” McKinsey Quarterly, no. 3 (1997): 187-192.
    Listed reading
  • Tax, Stephen S., and Stephen W. Brown. “Recovering and Learning from Service Failure.” MIT Sloan Management Review 40, no. 1 (Fall 1998): 75-88.
    Listed reading
  • Bitran, G. R., and S. Mondschein. “Managing the Tug-of-War Between Supply and Demand in Service Industries.” European Management Journal 15, no. 5 (1997): 524-534.
    Listed reading
  • Larson, R. C. “Perspectives on Queues: Social Justice and Psychology of Queueing.” Operations Research 35, no. 6 (1987): 895-905.
    Listed reading
  • Cross, R. G. “The Core Concepts of Revenue Management.” Chapter 3 in Revenue Management: Hard-Core Tactics for Market Domination . Broadway Books, 1998, pp. 49-99. ISBN: 0767900332.
    Listed reading
  • Donald, William. “Omnicom Group’s Tasty Mix.” Insight From Standard and Poor, Business Week Online, November 10, 2003, pp. 1-3.
    Listed reading
  • Gresham, Stephen, and Evan Cooper. “A New Definition of Service.” Chapter 3 in Attract and Retain the Affluent Investor: Winning Tactics for Today’s Financial Advisor. 2001, pp. 45-64. ISBN: 0793144337.
    Listed reading
  • Simchi-Levi, et al. “Inventory Management and Risk Pooling.” Chapter 3 in Designing and Managing the Supply Chain. 2002, pp. 43-90. ISBN: 0072492562.
    Listed reading
  • Simchi-Levi, et al. “Procurement and Outsourcing Strategies.” Chapter 7 in Designing and Managing the Supply Chain . 2002, pp. 165-190. ISBN: 0072492562.
    Listed reading
  • Linder, Jane C. “Transformational Outsourcing.” MIT Sloan Management Review 45, no. 2 (Winter 2004): 52-58.
    Listed reading
  • Quinn, James Brian. “Outsourcing innovation: The new engine of growth.” MIT Sloan Management Review 41, no. 4 (Summer 2000): 13-28.
    Listed reading
  • Katz, Karen L., Blaire M. Larson, and Richard C. Larson. “Prescription for the Waiting in Line Blues: Entertain, Enlighten, and Engage.” MIT Sloan Management Review 32, no. 2 (Winter 1991): 44-55.
    Listed reading
  • Maister, David H. “Note on the Management of Queues.” Harvard Business Review (March 17, 1995): 1-14. Reprint #9-680-053.
    Listed reading
  • Fiegenbaum, A., and V. Fiegenbaum. The Power of Management Capital: Utilizing the New Drivers of Innovation Profitability and Growth in a Demanding Global Economy . McGraw-Hill Trade, 2003. ISBN: 0070217335.
    Listed reading
  • (a) “Capitalizing Management Power: Lessons from the Great Japanese Economy.” Chapter 2, pp. 17-34.
    Listed reading
  • (b) “Emphasizing Quality of Management Instead of Quantity of Management.” Chapter 3, pp. 35-55.
    Listed reading
  • (c) “Sustaining Business Growth by Recognizing and Reconnecting Management ‘Disconnects’.” Chapter 6, pp. 89-112.
    Listed reading
  • Fine, Charles, and Daniel Whitney. “Is the Make-or-Buy decision process a core competency?” In Logistics in the Information Age. Edited by Moreno Muffato and Kulwant Pawar. Padova, Italy: Servizi Grafici Editoriali, 1999, pp. 31-63.
    Listed reading
  • Fine, Charles, Roger Vardan, Robert Pethick, and Jamal El-Hout. “Rapid Response Capability in Value-Chain Design.” MIT Sloan Management Review 43, no. 2 (Winter 2002): 69-75.
    Listed reading
  • Dyer, Jeffrey H., and Nile W. Hatch. “Using Supplier Networks To Learn Faster.” MIT Sloan Management Review 45, no. 3 (Spring 2004): 1-9.
    Listed reading
  • Bitran, Gabriel, and Denis De Graeve. “Framework for the Governance in the Supply Networks of Wal-Mart: the ‘Enlightened Despot’ Model.” MIT Center for Transportation and Logistics Working Paper. 2004.
    Listed reading
  • Ulrich, William. “ System Transformation: Revolutionalizing Supply Chain Management through Holistic Governance Structures .” 2004. ↗
    Listed reading
  • Oliver, Keith, Anne Chung, and Nick Samanich. “Beyond Utopia: The Realist’s Guide to Internet-Enabled Supply Chain Management.” Strategy+Business , no. 23. Booz-Allen publication (May 2001): 1-10.
    Listed reading
  • Simchi-Levi, et al. “International Issues in Supply Chain Management.” Chapter 8 in Designing and Managing the Supply Chain . 2002, pp. 191-206. ISBN: 0072492562.
    Listed reading
  • Dussart, Christian. “Capitalism against Capitalism: Political and Economic Implications on Marketing Practices in Europe.” In Perspectives on Marketing Management. Vol 4. Edited by M. J. Baker. 1994: 119-134. ISBN: 0471943177.
    Listed reading
  • Camuffo, Arnaldo, Pietro Romano, and Andrea Vinelli. “Back to the future: Benetton transforms its global network.” MIT Sloan Management Review 43, no. 1 (Fall 2001): 46-52.
    Listed reading

Prerequisites & course information

Prereq: None G (Summer) 3-0-6 units Credit cannot also be received for 15.734 , 15.761 , 15.7611

Sources