Operation Management ( Credits 3 )
Course Title: Operations Management
Code No: CO 524
Area of Study: Core Area
The course aims at equipping students with the knowledge of operations management as applied to
product and service design, location decisions, technology decisions, new facility decisions at
strategic level, quality control and layout planning at the tactical level and operations scheduling and
inventory management at the operational level of management.
UNIT I: Introduction to Operations Management LH.3 hrs
1 Introduction, Scope, Importance.
2 The operations manager and the management process.
3 Operations management and decision making.
4 Trends in operations management
5 Competitiveness, productivity
UNIT II: Operations Strategy LH.3 hrs
1 Operations strategy across the organization.
2 Developing a customer driver operations strategy.
3 Corporate strategy
4 Global Strategy
5 Market analysis
6 Competitive priorities and capabilities
UNIT III: Forecasting LH.5 hrs
1 Elements of a good forecast
2 Steps in the forecasting process
3 Approaches to forecasting: Judgmental and opinion, Time series, linear regression,
associative forecasting technique.
4 Accuracy and control of forecast
5 Choosing a forecasting technique
UNIT IV: Product and Service Design LH.5 hrs
1 Issues in product and service design
2 Phases in the product design and development.
3 Designing for manufacturing
4 Quality Function development
5 Service design
UNIT V: Process Selection and facility layouts LH.7 hrs
1 Process selection
2 Facilities layout
3 Designing product layout : line balancing
4 Designing process layouts
UNIT VI: Location Planning and analysis LH.5 hrs
1 Need and nature of location decisions
2 General Procedures for making location decisions
3 Factors affecting location decisions
4 Evaluating location alternatives
UNIT VII: Management of Quality and Quality control LH.7 hrs
1 Foundations of modern quality management
2 Quality awards and certifications
3 Total quality management
4 Process improvements
5 Quality tools
6 Inspection for quality control
7 Statistical process control
8 Process capabilities
9 Acceptance Sampling
UNIT VIII: Inventory Management LH.4 hrs
1 Requirements for effective inventory management
2 Inventory Models: EOQ model, Fixed order interval model, single period model
UNIT IX: MPS, MRP and ERP LH.5 hrs
1 IMPS and MRP in manufacturing and services
2 Benefits and requirements of MRP
3 MRP II
4 Capacity requirements planning
UNIT X: JIT and Lean Operations LH.4 hrs
1 Transitioning to a JIT system
2 JIT in services
3 JIT II
4 Lean system across the organization
5 Characteristics of lean systems for services and manufacturing
6 Flexible workforce
7 Line flows
At the end of the course, students are required to present a case study covering important topics of
operations management in Nepalese context.
1 William J. Stevenson, “Operations Management”, Tata McGraw Hill
2 Lee Krajewski, Larry Ritzman, Manoj Malhotra, “Operations Management, Process and value
Chains”, Pearson Practice Hall.
3 Richard B. Chase, F Robert Jacobs, Nicholas J. Aquillaw, Nitin K Agarwal, “Operations
Management, for Competitive Advantage”, Tata McGraw Hill
4 Ferry Hill, “Operations Management, Strategic Context and Manager and Analysis”, Palgrave