BBSD672 – Operations Management

Module code
Module title
Operations Management
The purpose of this module is to have the student examine activities that focus on the design and subsequent improvement of services and goods, and the processes used in their production.
  • BS0671
  • BS1054
  • SC0901
NZQA Level
Level 6
NZQA Credits
Delivery method
  • Not Web enabled
Learning hours
Directed hours
Self directed hours
Total learning hours
Resources required
Learning Outcomes
1. Identify, discuss and evaluate the role of the Operations function in an organisation and the relationship to other functions:
- Define operations management and what operations managers do
- Overview key Operation Management (OM) decisions
- Understand the differences between goods and services
- Understand the meaning of productivity and how to measure it
- Understand new challenges of OM

2. Explain the concepts of strategy and the implications for operations management:
- Identify & define; Mission, Strategy,
- Define & explain; Specific approaches used by operation managers to achieve strategies; Differentiation and Low cost
- Describe & explain global operations strategies and global issues

3. Discuss the nature and demonstrate the use of project management techniques within operations:
- Define; Work breakdown structure, critical path, Activity on Arrow (AOA) & Activity on Nodes (AON) networks
- Describe and explain Performance Evaluation Review Technique (PERT) and Critical Path Method (CPM)
- Construct Network Diagrams
- Perform a critical path analysis
- Identify critical paths
- Provide a Gantt (schedule) chart

4. Examine approaches for forecasting:
- Describe and explain the difficulties of forecasting.
- Use moving averages, exponential smoothing, or regression, with seasonal adjustments to forecast.
- Measure the accuracy of forecasts.

5. Discuss the considerations for an effective layout of service and manufacturing facility:
- Discuss the options and types of manufacturing and service (including warehouse) facility layouts
- Explain layout tools and models
- Demonstrate methods for analysing and improving these different types of layouts
- Understand what layout works best for various facility types
- Understand the strategic importance of layout decisions

6. Discuss business location decisions and process strategies for manufacturing and service organisations:
- Explain and describe process strategies
- Recognise process analysis tools
- Define business process reengineering
- Recognise and identify location issues
- Define clustering
- Use methods of location evaluation

7. Evaluate the use of specific quality systems in improving service and manufacturing operations:
- Understand the concept of Quality and Total Quality Management.
- Discuss how the ISO 9000 series can assist in production.
- Evaluate the use of specific quality systems in improving service and manufacturing operations that may include:
oISO 9000:
oISO 14000:
oBaldridge Awards:
oNZ Business Excellence Awards:
- Investigate issues of compliance with environmental requirements
- Use various tools to identify and illustrate causes of quality issues

8. Discuss operational issues concerning the design and improvement of operational processes used in the production of services and goods:
- Identify and define Robust and modular design.
- Conduct quality function deployment.
- Define Computer aided design (CAD) & Computer aided manufacturing (CAM).
- Define Value analysis.
- Explain concurrent engineering.
- Apply decision trees to product design and calculate expected value.
- Explain the options available for designing new products: Purchasing, joint ventures, alliances

9. Discuss the operations management (OM) contribution to, and involvement with, staff related activities and practices:
- Understand the objectives of a human resource strategy
- Understand the meaning of Job specialization, Job expansion, & Ergonomics
- Understand & describe the requirements of good job design

10. Examine supply chain management:
- Understand & describe supply chain strategies & the effect on negotiations
- Recognise issues in supply chain management

11. Implement a system to plan and control inventory and compare inventory management systems:
- Classify inventory costs
- Calculate the mean inventory and order points
- Calculate the costs of inventory
- Determine when inventory orders need to be placed
- Describe push and pull inventory systems

12. Demonstrate the use of aggregate planning strategies:
- Explain aggregate resource planning
- Apply capacity and demand planning strategies
- Provide level and chase strategies
- Evaluate available aggregate planning options
- Explain Materials Requirements Planning (MRP) & Enterprise Resource Planning (ERP)

13. Examine and demonstrate scheduling optimisation and discuss the importance of maintenance:
- Explain forward and backward scheduling
- Determine the sequence of jobs through prioritising
- Determine the sequence of jobs through minimising throughput
- Determine the sequence of jobs through servicing cycles
- Explain the tactics of maintenance and repair
Assessment Criteria
Candidates must achieve a minimum result of 40 in the final examination or nominated assessment/s of each module. They must also achieve a minimum C grade pass overall from all assessments to receive a passing grade for the module.
- Introduction to the Operations Function
- Operations and Productivity
- Operations Strategy
- Project Management
- Forecasting
- Design
- Quality
- Process and Location Strategies
- Layout
- Human Resources
- Supply Chain
- Inventory
- Aggregate Planning
- Scheduling
Teaching and Learning Strategy
Teaching methods will involve theoretical and practical classes including lectures, tutorials, workshops, group activities and assignments.