Practice Operations Student Manual PDF

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Student Manual Updated March 2019

McGraw-Hill Practice Operations

Table of Contents Introduction...............................................................................................................................................................................3 Game Description............................................................................................................................................................................................ 3 How to Win........................................................................................................................................................................................................ 3 Gameplay............................................................................................................................................................................................................ 3 Learning Outcomes........................................................................................................................................................................................ 4 Overview of Modules...................................................................................................................................................................................... 4 Module 1: The Production Process...................................................................................................................................................... 4 Module 2: Managing Suppliers............................................................................................................................................................. 4 Module 3: Forecasting and Contracts................................................................................................................................................ 4 Module 4: Human Resources and Capacity Planning................................................................................................................. 4 Module 5: The New Branch.................................................................................................................................................................... 4 Module 6: Maximize Net Worth........................................................................................................................................................... 4 System Requirements.................................................................................................................................................................................... 5 Registering and Logging In...................................................................................................................................................6 Module 1: The Production Process....................................................................................................................................8 Make-to-Order Processes............................................................................................................................................................................. 9 Operations Management: Priority and Utilization........................................................................................................................ 10 Follow the Tutorial for Module 1........................................................................................................................................................... 12 Module 2: Managing Suppliers.........................................................................................................................................13 The “Lean or “Just-In-Time” Strategy................................................................................................................................................... 14 Quality Inspection........................................................................................................................................................................................ 16 Quantity Flexibility and Supplier Capacity....................................................................................................................................... 17 Creating a Vendor Scorecard................................................................................................................................................................... 18 Follow the Tutorial for Module 2........................................................................................................................................................... 20 Module 3: Forecasting and Contracts.............................................................................................................................21 Research........................................................................................................................................................................................................... 21 Make-to-Order vs. Make-to-Stock.......................................................................................................................................................... 21 Bids..................................................................................................................................................................................................................... 21 Work Request Analysis............................................................................................................................................................................... 22 Batch Manufacturing.................................................................................................................................................................................. 24 Forecasting and Specialization.............................................................................................................................................................. 25 Follow the Tutorial for Module 3........................................................................................................................................................... 25 Module 4: Human Resources and Capacity Planning................................................................................................26 Human Resources......................................................................................................................................................................................... 26

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McGraw-Hill Practice Operations

Training....................................................................................................................................................................................................... 27 Hiring............................................................................................................................................................................................................ 27 Managing the Organization Chart................................................................................................................................................... 28 Capacity Planning........................................................................................................................................................................................ 29 Scheduling a Job Shop with a Spreadsheet........................................................................................................................................ 30 Gather Basic Information.................................................................................................................................................................... 30 Prepare a Schedule................................................................................................................................................................................. 31 Compare Schedules using Different Priorities............................................................................................................................. 32 Matching Capacity to Demand............................................................................................................................................................... 32 Maximizing Throughput....................................................................................................................................................................... 33 Constraints and Bottlenecks.................................................................................................................................................................... 34 Routing Pathways................................................................................................................................................................................... 34 Finding Bottlenecks................................................................................................................................................................................ 34 End of the Tutorial....................................................................................................................................................................................... 37 Module 5: The New Branch................................................................................................................................................38 Hiring vs. Training....................................................................................................................................................................................... 38 Analyzing Employee Expenses........................................................................................................................................................... 39 Reputation....................................................................................................................................................................................................... 43 Module 6: Maximizing Profits...........................................................................................................................................44 Long-Term Perspective............................................................................................................................................................................... 44 Total Cost of Ownership........................................................................................................................................................................ 45

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Introduction

Game Description Practice Operations puts players in the role of an operations decision maker for a clothing manufacturing company. Operations is the engine that drives a business. Play begins with an overview of the heart of that engine – managing the production process. Players review the contract specifications as well as the production process by walking through the Production Floor and Shipping area. Players then analyze the receiving department functions of managing the supply chain and material inventories to ensure client needs can be met. In order to grow the business, players choose which new contracts to pursue and then optimize their receiving, production, and shipping departments accordingly. As the business grows, players manage both the human and facility resources in order to meet capacity challenges. Customer satisfaction is a key metric for success. In the final stages of the game, the company puts players in complete control over all areas of operations at the New Branch, with the challenge to build the most profitable company possible.

How to Win Your goal is to make the most money possible. This will happen if you run your operation efficiently. Getting orders out to customers on time, with the correct quantity and quality will make your customers happy, which in turn raises your reputation. As your reputation increases, you will be able to successfully bid on contracts from a larger pool of customers, which will generate more revenue. If you run your operation poorly and your customers receive orders late or with errors in quality or amount, your sales force will lose bids to your competitors and you will make less money, or even run a deficit!

Gameplay The game is turn-based. Each turn is one week. Each module is a specific length and has objectives that must be achieved before time runs out.

Learning Outcomes 

The interactive experience focuses on gaining experience through trial and error and learning how the elements of operations and production come together.

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Supports online, out-of-class play and competition between you and your fellow students.

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Features game-world data and situations that reflect real world operational situations.

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Highlights the inherently interdisciplinary nature of business by demonstrating that the various functional areas of the company – Human Resources, Manufacturing, Accounting, and Sales – must work together in order to meet company goals.

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Opportunity for actual hands-on practice as an operations manager in a manufacturing scenario

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Analyze and evaluate quality considerations in the production process.

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Stresses both customer satisfaction and financial results as the key success metrics.

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Provides reporting features that make it easy for instructors and students to review and assess your performance and decision-making.

Overview of Modules Module 1: The Production Process Operations is the engine that drives a business. This module focuses on the heart of that engine, managing the production process. Module 1 should take 25-45 minutes to complete.

Module 2: Managing Suppliers This module unlocks the receiving department, putting players in charge of managing the supply chain and material inventories to meet client needs. Module 2 should take 25-45 minutes to complete.

Module 3: Forecasting and Contracts In this module, players choose which contracts to pursue, and optimize their receiving, production, and shipping departments accordingly. Module 3 should take 25-45 minutes to complete.

Module 4: Human Resources and Capacity Planning In this challenging scenario, players will manage both human and facility resources to meet capacity challenges. Module 4 should take 35-55 minutes to complete.

Module 5: The New Branch In this module, players will have complete control over all areas of their operations, and will be challenged to reach a net worth of $50,000 as quickly as possible. Module 5 should take 1 to 2 hours to complete.

Module 6: Maximize Net Worth In this capstone module, players again have complete control over all areas of their operations. The goal is to maximize the net worth of the firm over 50 turns. Module 6 should take 2 to 3 hours to complete.

System Requirements Computers used to run Practice Operations must meet the Technical Requirements listed below. Windows OS: 1. Operating systems: Windows XP with Service Pack 3 / Windows Vista SP2 / Windows 7 / Windows 8. 2. Internet Browser: Firefox version 31 or above OR Internet Explorer 11 or above OR Google Chrome version 31 or above 3. Memory: 512MB RAM 4. Processor: Intel Pentium 3-4 processor or equivalent/better 5. Video: NVIDIA GeForce 6600 or better OR ATI Radeon 8500, 9250 or better OR Intel 945 chipset or better, 1024 x 768 resolution minimum 6. Internet: 128kbit/s Cable/DSL/LAN connection per computer 7. Hard Disk Space: 500MB free 8. Direct X: DirectX 9.0c Mac OSX: 1. Operating system: Must have OS X 10.6 (Snow Leopard) or later. 2. Processor: Intel Core 2 Duo (PowerPC not supported) 3. RAM: 1GB System Memory 4. Video Memory: 256MB graphics card or decent integrated graphics chip. Must support OpenGL 1.5+ 5. Internet Browser: Firefox version 31 or above OR Safari 7.1 or above OR Google Chrome version 31 or above Apple iPad: 1. Model: iPad2 or later. 2. Operating System: iOS 8 or later. 3. Screen Resolution: 1024x768 or greater. Android Tablet: 1. Operating System: Android 4 or later.

Registering and Logging In Practice Operations can be accessed directly through the McGraw-Hill Connect system. Practice Operations assignments will be listed with all other assignments for your course. Practice Operations assignments will be designated by the Application-Based Activity icon (

).

You also may be able to access Practice Operations assignments directly from your learning management system, if your instructor chooses to add the links.

To start working on a Practice Operations assignment, simply click the arrow ( ) located at the righthand side of the assignment. A window will appear displaying the assignment information (see below). In addition to the assignment title, the window will also show the start and due dates for the assignment, the number of attempts you are allowed and the total points associated with the assignment. Click the Continue button to enter the simulation.

The Launch Assignment window will open. This window includes basic information about the module and will also show you the instructions your instructor has included with this assignment. To start an attempt, click the Play Attempt button. To return to the previous screen without starting an attempt, click the Previous button.

You can start the simulation by clicking the Play Attempt button. This will start the Practice Operations simulation. Each module starts with an introduction that describes the goal of the module. You can click on the View Objectives button to see the specific learning objectives for the current module.

For example, module 1 is designed to familiarize you with production processes and the Practice Operations simulation itself.

When you have read the learning objectives, click the Play button to enter the simulation. Each module starts a little differently, so pay close attention to the introduction that is presented at the beginning of the module.

Module 1: The Production Process In this module, you will learn to manage the basic production process. This product flow appears in the Production Floor panel (below), and you can also see the progression of products through the various machines. The managers in the game will help guide you through the process. In Practice Operations, the production floor uses a workcenter (or job shop) layout, where machines are grouped by type, with products traveling from one machine to the next as they are completed. Products start in Cutting and then move through Sewing, Press Transfer (for some products), and finally arrive at Packaging. Additional workcenters will be added in later modules, and each station can be upgraded for a one-time cost to increase the speed and maximum amount that can be processed.

Make-to-Order Processes By following the screen prompts, a production order that precisely matches the customer order is started on the production floor. This 1:1 relationship between customer orders and production orders is a key characteristic of a make-to-order process. For example, review the open contract from Stallion Apparel (below), highlighting the importance of individual orders in a make-to-order system. In particular, the key elements are the client, item ordered, order quantity, unit price, and due date.

Once your production is underway, you can view the details by looking at the Current Production Runs panel. The side arrows let you quickly cycle through all products currently in production. The icons under Production Tasks let you see which machines are required for the specific product. You can view the material required per unit and see how much of that material you have in stock. You can view the current status, the amount being produced, what priority you have it set for, and finally the quantity of finished product you have in stock.

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