UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGH Digitized by the Internet Archive in 2011 with funding from University of Illinois Urbana-Champaign http://www.archive.org/details/evaluationofsubj722hino Faculty Working Papers College of Commerce and Business Administration University of Illinois at Urbana-Champaign V. FACUITY WORKING PAPERS College of Commerce and Business Administration University of Illinois at Urbana-Champaign October 24, 1980 EVALUATION OF SUBJECTS POSSIBLY INCLUDED IN COURSES ON PRODUCTION AKD OPERATIONS MANAGEMENT ~ REPORT QF THE RESULT OF THE SURVEY Hirohide Hinomoto, Professor, Department of Business Administration #72: Summary A questionnaire survey was conducted to assess the relevance of subjects discussed in texts on production and operations management. The questionnaire was distributed to members of the Advisory Council of our College and Vice Presidents of manufacturing of Fortune 500 industrial firms in Illinois. Seventy persons responded to the questionnaire. This report lists the frequency distribution of ratings of each subject given by the respondents and the weighted average of these ratings. EXPLANATION OF THE REPORT The MBA program at the University of Illinois, Urb ana-Champaign, currently includes twelve courses as the core requirements for all students. Of these requirements, B.A. 467 (Production and Operations Management) is the only course dealing with subjects related to indus- trial operations. Since all MBA students are asked to take the course regardless of their future career interests, its main objective might appropriately be to provide students with a general background in indus- trial operations management rather than to train them to become experts on production management techniques. In the Spring of 1980, a questionnaire survey was conducted to learn the thoughts of experienced professionals in industry on what mathematical- type fields should an MBA program include and what speci- fic topics should a course on production and operations management like B.A. 467 encompass. The questionnaire was distributed to members of the Advisory Council of our College whose firms were directly or in- directly related to industrial operations and Illinois firms that were listed amoung the Fortune 500 industrial organizations. Some 70 firms responded to the questionnaire. From the data collected in the survey, we have computed the fre- quency distribution of usefulness ratings of each topic given by the respondents and the weighted average of these ratings. The computed results are listed in two parts: Part 1. Evaluation of subject areas (page 1): This part, lists the result of the respondents' evaluation regarding whether expertise on mathematically oriented subjects is necessary for MBA students. Part 2. Evaluation of individual topics (page 2-11): This part lists the result of the survey on topics related to production and operations management. Interrelated topics are grouped together. In each group, the first topic represents the general discussion or over- view of the topical area and the rest represents specific topics be- longing to the topical area. Part 1. Usefulness Ratings Given to Expertise on Subject Areas Frequency Distribution Knowledge or Ability Weighted Average Rating Essent' 1 Very '1 Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total .. Knowledge on Production. Problems in General 2.3 15 22.1% 24 35.3% 24 35.3% 3 4.4% 2 2.9% 68 lOOX ,. Knowledge on General Operational Problems of an Industrial Firm 2.0 19 27.9% 33 48.6% 13 19.1% 2 2.9% 1 1.5% 68 1003 . Knowledge on Management Science Techniques 2.5 8 11.9% 23 34.3% 31 46.3% 4 6.0% 1 1.5% 67 lOOX . Ability to Use Management Science Techniques to Solve Corporate Problems 2.6 8 11.9% 24 35.8% 24 35.8% 9 13.5% 2 3.0% 67 1002 . Knowledge on Statistics 2.8 7 10.3% 18 26.5% 28 41.2% 15 22.0% 0% 68 100^ . Ability to Use Statistical Techniques 3.0 3 4.3% 19 27.5% 26 37.8% 18 26.1% 3 4.3% 69 lOOX . Ability to Analyze Corporate Problems with Financial Mathematics 2.4 13 19.1% 28 41.2% 19 28.0% 6 8.8% 2 2.9% 68 1002 . Knowledge on Use of Computers in Business 2.1 16 23.2% 32 46.4% 19 27.5% 2 2.9% 0% 69 1002 -2- Part 2. Usefulness Ratings Given to Topics in Production and Operations Management Frequency Distribution Topic Weighted Average Rating Essent'l 1 Very Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 2.6 12 17.1% 14 20.0% 35 50.1% 5 7.1% 4 5.7% 70 100% 3.2 4 5.7% 10 14.3% 28 40.0% 21 30.0% 7 10.0% 70 100% 2.5 2 2.9% 14 20.3% 25 36.2% 23 33.3% 5 7.3% 69 100% 010. Overview of the t3rpes of Industrial Organization Oil. The Detailed Organizational Structure of a Typical Industrial Firm 012. The Detailed Organizational Structure of a Typical Plant 013. Activities of a Production Planning and Control Department 2.6 12 25 21 11 1 70 17.1% 35.8% 30.0% 15.7% 1.4% 100% 014. Activities of a Manu- facturing Department . 2.6 8 11.4% 22 31.4% 27 38.6% 13 18.6% 0% 70 100% 020. Overview of Product Design and Development 2.6 8 11.8% 18 26.9% 33 49.3% 6 9.0% 2 3.0% 67 100% 021. Product Demand Analysis 2.8 5 7.7% 19 29.2% 30 46.2% 8 12.3% 3 4.6% 65 100% 022. Product Research and Development 3.2 0% 13 18.8% 33 47.9% 19 27.5% 4 5.8% 69 100% 023. Product Selection Analysis 3.0 3 4.5% 18 26.9% 23 34.3% 20 29.9% 3 4.4% 67 100% 024. Product Quality and Characteristics Decision 2.7 6 8.8% 28 41.2% 16 23,5% 16 23.5% 2 3.0% 68 100% 025. Computer Assisted Product Design (CAD) 3.6 2 3.2% 8 12.7% 19 30.2% 21 33.3% 13 20.6% 63 100% -3- Toplc Weighted Average Rating Frequency Distribution Very Slightly Not Essent'l Useful Useful Useful Useful Total 12 3 4 5 Economic Analysis: 031. Break-even Analysis in Production 2.0 032. Evaluation of Alternative Capital Investment Projects 1.8 033. Ranking Capital Invest- ment Projects 2.1 034. Buy or Lease Analysis for Acquiring Production 2.6 Machines 035. Make or Buy Analysis of Products or Parts 2.4 26 37.1% 26 37.1% 13 18.6% 5 7.2% 0% 70 100% 32 45.7% 25 35.7% 7 10.0% 6 8.6% 0% 70 100% 18 26.1% 34 49.4% 11 15.9% 5 7.2% 1 1 .4% 69 100% 7 10.3% 22 32.4% 28 41.1% 10 14.7% 1 1 .5% 68 100% 13 18.6% 27 38.5% 21 30.0% 7 10.0% 2 2 .9% 70 100% 036. Make or Buy Analysis of Products or Parts 2.5 9 18.0% 17 34.0% 16 32.0% 6 12.0% 2 4.0% 50 100% 040. Overview of Plant Location 2.7 9 13.9% 18 27.7% 27 41.5% 8 12.3% 3 4.6% 65 100% 041. Legal, Social, Economic, and Labor Considerations 2.8 of Plant Location 042. Plant Location in Relation to Markets or Sources of 2.9 Raw Materials 043. Centralization and Decen- tralization of Production 2.8 Operations 044. Logistic Analysis of Plant Location 3.0 9 19 24 12 4 68 13.2% 27.9% 35.4% 17.6% 5.9% 100% 4 22 25 11 6 68 5.9% 32.4% 36.7% 16.2% 8.8% 100% 5 7.5% 1 1.5% 24 35.8% 22 32.4% 23 34.3% 26 38.2% 9 13.4% 13 19.1% 6 9.0% 6 8.8% 67 100% 68 100% -4- Frequency Distribution Topic Weighted Average Rating Essent' 1 Very '1 Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 050. Overview of Demand Forecasting 2.5 13 20.0% 23 35.4% 18 27.7% 8 12.3% 3 4.6% 65 100% 051. Moving Average Method 3.1 3 4. 92 11 18.0% 26 42.7% 16 26.2% 5 8.2% 61 100% 052. Exponential Smoothing Method 3.1 3 5.1% 12 20.3% 22 37.3% 18 30.5% 4 6.8% 59 100% 053. Time Series Analysis 3.2 2 3.4% 10 16.9% 26 44.1% 15 25,4% 6 10.2% 59 100% 060. Overview of Product Processing 2.6 12 18.2% 18 27.3% 23 34.8% 10 15.2% 3 4.5% 66 100% 061. Selection of Processing Methods 3.1 6 9.0% 10 14.9% 29 43.3% 17 25.4% 5 7.4% 57 lOOZ 062. Process or Assembly Charting Techniques 3.5 1 1.5% 10 15.2% 24 36.3% 20 30.3% 11 16.7% 66 100% 063. Cost Consideration of Production Methods 2.4 19 28.3% 18 26.9% 20 29.8% 6 9.0% 4 6.0% 67 100% 064. Process Control by Computer 3.2 3 4.7% 13 20.3% 24 37.5% 19 29.7% 5 7.8% 64 100% 065. Computer Aided Manu- facturing (CAM) 3.1 3 4.8% 14 22.2% 26 41.3% 15 23.8% 5 7.9% 63 100% 070. Overview of Types of Plant Layout and Work Design 2.9 7 10.3% 14 20.6% 31 45.6% 13 19.1% 3 4.4% 68 100% 071. Layout of Physical Facilities 3.2 4 6.0% 12 17.9% 24 35.8% 20 29.9% 7 10.4% 67 100% 072. Management Science Tech- niques Applied to 3.3 6 9.1% 6 9.1% 23 34,8% 25 37.9% 6 9.1% 66 100% Plant Layout 073. Work Place Design 3.3 4 11 18 26 7 66 6.0% 16.7% 27.3% 39.4% 10.6% 100% -5- Topic Weighted Average Rating Frequency Distribution Very Slightly Not Essent'l Useful Useful Useful Useful Total 1 2 3 4 5 080. Overview of Product Quality Control 2.3 081. Inspection Function in Production Organization 2.8 082. Economics of Quality Assurance 2.5 083. Statistical Quality Control - Acceptance 2.8 18 26.1% 5 7.4% 10 14.7% 6 8.8% 22 31.9% 22 . 32.4% 25 36.8% 18 26.5% 19 27.5% 25 36.8% 22 32.3% 28 41.2% 8 11.6% 11 16.2% 8 11.8% 14 20.6% 2 2.9% 5 7.4% 3 4.4% 2 2.9% 69 100% 68 100% 68 100% 68 100% 090. Overview of Aggregate Production Planning 091. Various Methods of De- veloping Master Pro- duction Schedules 2.3 2.7 17 25.0% 9.0% 23 33.8% 21 31.3% 23 33.8% 27 40.3% 3 4.4% 10 14.9% 2 3.0% 3 4.5% 68 100% 67 100% 092. Graphical and Charting Methods of Production Planning 093. Productive Capacity Planning 094. Judgmental Approaches for Planning Such as the Delphi Method 095. Planning Manpower Requirements 3.1 1 16 28 17 4 66 1.5% 24.2% 42.4% 25.8% 6.1% 100% 2.3 14 20.9% 25 37.3% 24 35.8% 3 4.5% 1 1.5% 67 100% 3.3 1 1.8% 15 26.3% 17 29.8% 16 28.1% 8 14.0% 57 100% 2.5 14 20.3% 21 30.4% 22 31.9% 10 14.5% 2 2.9% 69 100% -6- Frequency Distribution Topic Weighted Average Rating Essent' 1 Very •l Useful 2 Useful 3 Slightly Useful 4 ^k5t Useful 5 Total 100. Overview of Production Scheduling 2.3 18 26.1% 18 26.1% 26 37.7% 5 7.2% 2 2.9% 69 100% 101. Various Job-Shop Scheduling Methods 3.2 3 4.5% 11 16.7% 31 47.0% 15 21.2% 7 10.6% 66 100% 102. Management Science Applied to Job-Shop Scheduling 3.4 1 1.5% 11 16.4% 24 35.8% 22 32.9% 9 13.4% 67 100% 103. Batch Scheduling by the Run-Out Method 3.6 0% 6 10.4% 22 37.9% 22 37.9% 8 13.8% 58 100% 104. Conputer Packages for Scheduling 3.3 3 4.5% 10 15.2% 27 40.9% 19 28.8% 7 10.6% 66 100% 105. Mass Production Scheduling by the Line-of-Balance Method 3.5 1 1.8% 4 7.0% 26 45.6% 19 33.3% 7 12.3% 57 lOOJi 106. "Methods of Scheduling Flow- Process Production 3.1 4 6.5% 14 22.6% 19 30.6% 19 30.6% 6 9.7% 62 100% 110. Overview of Inventory Control 1.9 32 4 7.1% 13 19.1% 20 29.4% 3 4.4% 0% 68 100% 111. Inventory Control Policy 2.1 18 27.3% 26 39.4% 18 27.3% 3 4.5% 1 1.5% 66 100% 112. Economic Order Quantity Under Known Demand 2.6 8 12.1% 25 37.9% 21 31.8% 9 13.6% 3 4.6% 66 100% 113. Economic Order Quantity Under Uncertain Demand 2.6 7 10.6% 27 40.9% 19 28.8% 10 15.2% 3 4.5% 66 100% 114. ABC Classlf cation Method 2.7 7 11.5% 16 26.2% 27 44.3% 9 14.7% 2 3.3% 61 100% 115. Commercial Computer Pro- grams for Inventory Control Such as IMPACT 2.8 7 11.3% 16 25.8% 22 35.5% 15 24.2% 2 3.2% 62 100% -7- Frequency Distribution Tonic Weighted Average Rating Essent'l 1 Very Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 120. Overview of Material Requirements Planning (MRP) 2,2 21 32.3% 16 24.6% 22 33.9% 3 4.6% 3 4.6% 65 100% 121. Content of Bills-of- Materials File 3.0 6 9.2% 14 21.5% 26 40.0% 14 ' 21.6% 5 7.7% 65 100% 122. Detailed Steps in Material Requirements Planning (MRP) 2.9 9 13.6% 10 15.2% 30 45.4% 10 15.2% 7 10.6% 66 100% 123. Computer Programs for MRP 3.1 6 8 33 14 5 66 9.1% 12.1% 50.0% 21.2% 7.6% 100% 130. Overview of Management Science Techniques 2.6 5 7.8% 21 32.8% 33 51.6% 3 4.7% 2 3.1% 64 100% 131. Linear Programming (LP) 3.2 2 3.2% 13 20.6% 26 41.3% 17 27.0% 5 7.9% 63 100% 132. Transportation Method of LP 3.3 2 3.2% 7 11.3% 28 45.2% 19 30.6% 6 9.7% 62 100% 133. Queueing Theory 3.3 1 1.7% 10 16.7% 28 46.6% 15 25.0% 6 10.0% 60 100% 134. Dynamic Programming 3.4 2 3.5% 5 8.8% 28 49.1% 15 26.3% 7 12.3% 57 100% 135. Non-linear Programming 3.4 2 3.5% 5 8.8% 25 43.8% 18 31.6% 7 12.3% 57 100% 136. Integer Programming 3.5 2 3.6% 4 7.1% 25 44.6% 16 28.6% 9 16.1% 56 100% -8- Frequency Distribution Topic Weighted Average Rating Essent'l 1 Very Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 3.0 5 7.6% 14 21.2% 29 43.9% 14 21.2% 4 6.1% 66 100% 3.2 3 4.7% 10 15.6% 27 42.2% 18 28.1% 6 9.4% 64 100% 3.2 4 6.1% 10 15.4% 25 38.5% 20 30.8% 6 9.2% 65 100% 3.5 2 3.2% 6 9.7% 16 25.8% 33 53.2% 5 8.1% 62 100% 140. Overview of Analysis of Complex Systems 141. Resource Planning and Management (RPM) Networks 142. Computer Simulation Modeling 143. Use of Commercial Simula- tion Packages such as Industrial Dynamics 150. Overview of Job Design 151. Problems of Labor Specializations 152. Job Enrichment 153. Socio- technical Guidelines for Job Design 154. Physical Consideration in Job Design 155. Learning Curve 2.5 11 16.4% 22 32.8% 25 37.3% 8 12.0% 1 1.5% 67 100? 2.8 5 7.4% 18 26.9% 28 41.8% 15 22.4% 1 1.5% 67 100% 2.9 7 10.5% 16 23.8% 27 40.3% 13 19.4%- 4 6.0% 67 100% 3.1 7 10.6% 12 18.2% 19 28.8% 23 34.8% 5 7.6% 66 100% 3.0 3 4.5% 16 23.9% 24 35.8% 23 34.3% 1 1.5% 67 100% 2.5 8 12,1% 23 34.9% 28 42.4% 7 10.6% 0% 66 100% -9- Topic Weighted Average Rating Essent' 1 Very '1 Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 160. Overview of Methods, Measurement and Wage Payment 2.4 13 19.7% 21 31.8% 25 37.9% 6 9.1% 1 1.5% 66 100% 161. Work Methods Design 3.1 2 3.0% 11 16.4% 36 53.7% 16 23.9% 2 3.0% 67 100% 162. Time Study 3.2 1 1.5% 8 11.9% 37 55.2% 16 23.9% 5 7.5% 67 100% 163. Elementary Standard Time such as Work Factor Analysis 3.5 0% 5 7.7% 30 46.1% 23 35.4% 7 10.8% 65 100% 164. Predetermined Motion- Time Systems such as MTM and BMT 3.5 0% 7 10.9% 25 39.1% 24 37.5% 8 12.5% 64 100% 165. Work Sampling 3.3 0% 8 11.9% 36 53.7% 18 26.9% 5 7.5% 67 100% 166. Wage Incentive Plans 2.9 3 4.3% 18 26.1% 36 52.2% 10 14.5% 2 2.9% 69 100% 170. Overview of Plant and Machine Maintenance 2.8 8 11.8% 19 27.9% 27 39.7% 10 14.7% 4 5.9% 68 100% 171. Economic Analysis of Maintenance Programs 3.0 3 4.5% 19 28.3% 24 35.8% 16 23.9% 5 7.5% 67 100% 172. Equipment Replacement Analysis 3.0 5 7.7% 16 24.6% 26 40.0% 13 20.0% 5 7.7% 65 100% 173. Computerized Systems for Maintenance 3.4 4 6.2% 7 10.8% 24 36.9% 22 33.8% 8 12.3% 65 100% 174. Maintenance Policy 3.0 6 9.1% 11 16.7% 28 42.4% 16 24.2% 5 7.6% 66 100% -10- Frequency Distribution Topic Weighted Average Rating Essent' 1 Very '1 Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 180. Overview of Productivity 1.9 25 37.3% 26 38.8% 14 20.9% 1 1.5% 1 1.5% 67 100% 181. Factors, Effects, and Measurements of Productivity 2.1 18 26.9% 26 38.8% 20 29.8% 3 4.5% 0% 67 100% 182. Productivity Patterns 2.6 9 14.1% 17 26.5% 27 42.2% 10 15.6% 1 1.6% 64 100% 183. Productivity in Manufacturing 2.4 14 20.9% 19 28.3% 28 41.8% 5 7.5% 1 1.5% 67 100% 184. Productivity in Service Industries 2.8 9 14.1% 16 25.0% 23 35.9% 13 20.3% 3 4.7% 64 100% 190. Overview of Project Management - Network Scheduling Techniques 2.6 • 6 9.5% 27 42.9% 22 34.9% 5 7.9% 3 4.8% 63 100% 191. PERT 2.9 3 4,9% 19 31.2% 23 37.7% U 18.0% 5 8.2% 61 100% 192. CPM 3.0 3 5.0% 16 26.7% 24 40.0% 12 20.0% 5 8.3% 60 100% 193. Graphical Approaches such as Gantt Charts 3.0 2 3.3% 20 32.8% 19 31.1% 15 24.6% 5 8.2% 61 100% -11- Frequency Distribution Topic Weighted Average Rating Essent'l 1 Very Useful 2 Useful 3 Slightly Useful 4 Not Useful 5 Total 2.4 13 19.4% 23 34.3% 25 37.3% 4 6.0% 2 3.0% 67 100% 2.9 3 4.5% 20 30.3% 27 40.9% 12 18.2% 4 6.1% 66 100% 200. Overview of Production Information Systems 201. Computer Packages on Production and Inventory Control such as PICS or copies 202. Data Base Systems 203. Bills-of-Materials Systems 2.8 6 9.1% 19 28.8% 25 37.9% 12 18.2% 4 6.0% 66 100% 3.0 4 6.2% 17 26.6% 24 37.5% 14 21.9% 5 7.8% 64 100% 2.3 13 19.4% 27 40.3% 21 31.3% 5 7.5% 1 1.5% 67 100% 2.6 4 6.0% 27 40.3% 26 38.8% 10 14.9% 0% 67 100% 2.8 5 7.3% 17 25.0% 31 45.6% 14 20.6% 1 1.5% 68 100% 210. Overview of Functions Supporting Production 211. Purchasing Organization and Function 212. Warehouse Management iM/C/233 w