Skill Statement

Week 8 Sheets

Knowledge/

Skill Statement

/ Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations

Performance

Element

/ Understand operation’s role and function in business to value its contribution to a company.

Performance

Indicator

/ Discuss the role of ethics in operations (OP:190)

Level

/ Specialist

SCANS

/ Information 5; Systems 15; Basic Skills 1-2; Thinking Skills 12

21st Century

Skills

/ Leadership & Responsibility 3; Communication & Collaboration 1; Critical Thinking & Problem Solving 1

Objectives

/ a.Explain the conflict in operations that results when businesses attempt to maximize profit at all costs.
b.Describe the conflict in operations that results when businesses attempt to minimize expenses at all costs.
c.Discuss ethical issues associated with the use of company equipment.
d.Explain ethical issues associated with inventory management.
e.Describe ethical issues associated with purchasing.
f.Discuss ethical issues associated with reporting safety violations.
g.Explain ethical issues associated with reporting environmental violations.

Sample

Activity

/ Ask students to work in groups of three to develop skits that illustrate ethical considerations in operations. Each group should be assigned a different ethical issue, including maximizing profits at all costs, minimizing expenses at all costs, reporting safety violations, reporting environmental violations, using company equipment for personal purposes, managing inventory, and purchasing goods and services for a business. Each group of students should present the assigned ethical issue and show how operations personnel should respond when faced with the dilemma. At the end of each skit, audience members should suggest other ways to handle the ethical issue at hand.

Resources

Textbooks

/ Bovée, C. L., Thill, J. V., & Mescon, M. H. (2007). Excellence in business (3rd ed.) [pp. 74, 86-87, 296, 310]. Upper Saddle River, NJ: Pearson Prentice Hall.
Ivancevich, J. M., & Duening, T. N. (2007). Business principles, guidelines, and practices (2nd ed.) [pp. 255-258]. Mason, OH: Thomson.
Krajewski, L.J., Ritzman, L.P., Malhotra, M.K. (2007). Operations management: Processes and value chains (8th ed.) [p. 16]. Upper Saddle River, NJ: Pearson Education.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management (4th ed.) [pp. 568-573]. South-Western Cengage Learning.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [pp. 55-56, 60-64]. Boston: Houghton Mifflin.

Magazines/

Journals / Rudnicka, E.W. (2005). Ethics in operations management course in Science and Engineering Ethics. Vol. 11, Issue 4l, pp. 645-654.

Software/

Online

/ Dominick, C. (2010, February 9). Purchasing ethics: 7 sensitive situations. Retrieved May 16, 2011, from
Harned, P. (2007, May 8). Cultivating the grassroots of ethics in Compliance Week. Retrieved May 16, 2011, from
Johannsen, M. (n.d.). Five core business concepts causing ethical problems for organizations. Retrieved May 16, 2011, from
O’Connor, T.J. (2010). Are business ethics or profits more important? Retrieved May 16, 2011, from
Sammer, J. (2004, August 1). United Technologies offers a model for reporting ethical issues. Retrieved May 16, 2011, from
Stanley, O. (2007, June 19). Operations management and ethics. Retrieved May 16, 2011, from
UC San Diego. (2010, June 1). Responsible buying practices. Retrieved May 16, 2011, from

Knowledge/

Skill Statement

/ Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations

Performance

Element

/ Understand operation’s role and function in business to value its contribution to a company.

Performance

Indicator

/ Discuss legal considerations in operations (OP:339)

Level

/ Specialist

SCANS

/ Information 5; Systems 15; Basic Skills 1-2; Thinking Skills 12

21st Century

Skills

/ Leadership & Responsibility 3; Communication & Collaboration 1; Critical Thinking & Problem Solving 1

Objectives

/ a. Discuss the overall purpose of operations regulations.
b. Identify the role of the federal and state governments in the regulation of business operations.
c. Discuss the role of industry-specific regulation of business operations.
d.Explain the role of operations in limiting legal liability.
e.Discuss ways in which intellectual property regulations affect operations.
f.Discuss consumer protection laws impacting operations activities.
g.Discuss the relationship of the Uniform Commercial Code and operations.

Sample

Activity

/ Divide the class into groups of four. Each group should research regulations impacting operations in an assigned/selected industry (e.g., retail, lodging, air transportation, construction, etc.). Ensure that multiple groups do not research the same industry. After completing its research, each group should give a short oral presentation in which it explains regulations impacting operations in its industry. Following the presentations, engage the students in a class discussion of similarities and differences among the regulations in the different industries.

Resources

Textbooks

Software/

Online

/ About.com. (2011). Legal, government, and regulations. Retrieved May 16,2011, from
BusinessKnowledgeSource.com. (2003-2010). How to reduce liability at your manufacturing plant. Retrieved May 16,2011, from
BusinessKnowledgeSource.com. (2003-2010). How to stay within commercial law regulations when manufacturing. Retrieved May 16,2011, from
BusinessKnowledgeSource.com. (2003-2010). Where to find government regulations for manufacturing. Retrieved May 16,2011, from
Chabon, G.M. (2007). The evolving legal response to supply chain management concerns. Retrieved May 16,2011, from
eHow. (1999-2011). Regulations for starting a small business. Retrieved May 16,2011 from
Knowledge/
Skill Statement /

Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations
Performance
Element / Understand operation’s role and function in business to value its contributions to a company.
PerformanceIndicator / Describe the use of technology in operations (OP:191)
Level / Specialist
SCANs / Information 5; Systems 15; Technology 18; Basic Skills 1-2; Thinking Skills 12
21st Century Skills / Critical Thinking & Problem Solving 1, 3; Information Literacy 1; ICT Literacy 1
Objectives / a.Explain benefits of using technology in operations (e.g., increased capacity of production, higher quality products, lower operating costs, shorter cycle times, mass customization of products, improved organizational effectiveness, greater agility and efficiency, development of seamless processes, etc.).
b.Discuss the use of Electronic Data Interchange (EDI) to automatically transmit data and documents between organizations.
c.Describe technology used in the production process (e.g., Flexible Manufacturing System [FMS], Computer-Aided Manufacturing [CAM], Material Requirements Planning [MRP], robotics, assembly systems, automated conveyor systems, etc.).
d.Explain ways in which Enterprise Resource Planning (ERP) software integrates different aspects of operations (e.g., product planning, procurement, inventory management, vendor/supplier communications, order tracking, etc.).
e.Explain operations technology used to track inventory.
f.Describe technology used to develop and store technical and engineering data (e.g., Computer-Aided Design [CAD], Technical Data Management Systems [TDMS], etc.).
Sample Activity / Make arrangements for students to take a guided tour at a local manufacturing plant. Ask the guide (a member of management at the plant) to identify and explain the different types of technology that the facility uses in production, procurement, inventory management, and other aspects of operations. Following the tour, each student should write a one-page report explaining the types, uses, and benefits of the business’s operations technology.
Resources
Textbooks / Bovée, C. L., Thill, J. V., & Mescon, M. H. (2007). Excellence in business (3rd ed.) [pp. 303-309]. Upper Saddle River, NJ: Pearson Prentice Hall.
Daft, R.L., & Marcic, D. (2009). Understanding management: Instructor’s edition (6th ed.) [p. 276-279]. Mason, OH: South-Western Cengage Learning.
Finch, B.J. (2008). Operations now: Supply chain profitability and performance (3rd ed.) [pp. 375-381, 555, 590]. New York: McGraw-Hill Irwin.
Ivancevich, J. M., & Duening, T. N. (2007). Business principles, guidelines, and practices (2nd ed.) [pp. 242, 244-246, 248-249]. Mason, OH: Thomson.
Krajewski, L.J., Ritzman, L.P., & Malhotra, M.K. (2007). Operations management: Processes and value chains (8th ed.) [pp. 391, 624-633, 645-646]. Upper Saddle River, NJ: Pearson Education.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management (4th ed.) [pp. 77, 254, 673-686]. South-Western Cengage Learning.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [pp. 290-291]. Boston: Houghton Mifflin.
Raturi, A.S., & Evans, J.R. (2005). Principles of operations management (pp. 77-79, 103-104, 200-201, 215, 230-250). Mason, OH: South-Western.
Software/
Online / Answers.com. (2011). Electronic data interchange. Retrieved May 16,2011, from
Piasecki, D. (2001, 2002, 2003). Software selection and implementation tips. Retrieved May 16,2011, from
Riley, J. (2008, October 27). Revision quiz—Using technology in operations. Retrieved May 16,2011, from
The Times 100. (2011). Production technology. Retrieved May 16,2011, from
Wailgum, T. (2008, April 17). ERP definition and solutions. Retrieved May 16,2011, from

Knowledge/Skill Statement

/ Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations

Performance Element

/ Implement purchasing activities to obtain business supplies, equipment, and services.

Performance Indicator

/ Describe types of purchase orders (OP:250)

Level

/ Career-sustaining

SCANS

/ Information 5-6; Systems 15; Basic Skills 1-2; Thinking Skills 12

21st Century Skills

/ Critical Thinking & Problem Solving 1, 3; Information Literacy 1

Objectives

/ a.Describe benefits of using purchase orders.
b.Identify common components of purchase orders.
c.Discuss situations in which single-use purchase orders are appropriate.
d.Explain purposes of blanket purchase orders (e.g., track money spent for a particular department, project, or class of products; limit spending during a certain timeframe or for a certain project; consolidate repetitive small purchases, etc.).
e.Explain standards used for electronic purchase orders (ANSI, EDIFACT, RosettaNet).

SampleActivity

/ Each student should contact a local business or business partner to determine what types of purchase orders are used to obtain specific goods and services for the company. Each student should determine reasons why the business uses different types of purchase orders to acquire different items. Students should share their findings with the class.

Resources

Textbooks

/ Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 220, 329]. Mason, OH: Thomson/South-Western.
Cash, R. P., Thomas, C., Wingate, J. W., & Friedlander, J. S. (2006). Management of retail buying (p. 208). Hoboken, NJ: John Wiley & Sons.
Clark, B., Sobel, J., & Basteri C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [pp. 340-341]. Tinley Park, IL: Goodheart-Willcox.
Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 348-349). Woodland Hills, CA: Glencoe/McGraw-Hill
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management (4th ed.) [p. 46-47, 60-65, 524-525]. South-Western Cengage Learning.
Payne-Palacio, J., & Theis, M. (2009). Introduction to foodservice [11th ed.] (pp. 210-214). Columbus, OH: Pearson Prentice Hall.
Van Weele, A.J. (2002). Purchasing and supply chain management: Analysis, planning and practice (3rd ed.) [pp. 83, 227,]. London: Thomson Learning.

Software/

Online

/ Anderson, W. (2006, July 28). How to use purchase orders to track purchases. Retrieved May 16,2011, from
Directory M Articles. (n.d.). Purchase order. Retrieved May 16,2011, from
Duff, V. (1999-2011). How does a purchase order system work? Retrieved May 16,20110, from
Link, S. (1999-2011). Define “purchase order system.” Retrieved May 16,2011, from
SmallBusiness.co.uk. (2006, July 19). Purchase orders explained. Retrieved May 16,2011,from
St. James, R. (1999-2011). What are the benefits of using a purchase order system? Retrieved May 16,2011, from
University of RochesterMedicalCenter. (2011). Purchase order types. Retrieved May 16,2011, from

Knowledge/Skill Statement

/ Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations

Performance Element

/ Implement purchasing activities to obtain business supplies, equipment, and services.

Performance Indicator

/ Discuss types of inventory (OP:336)

Level

/ Career-sustaining

SCANS

/ Information 5-6; Systems 15; Basic Skills 1-2; Thinking Skills 12

21st Century Skills

/ Critical Thinking & Problem Solving 1, 3

Objectives

/ a.Identify common types of inventory (e.g., raw materials, work-in-process, finished goods, MRO goods, transit inventory).
b.Describe inventory items that are typically categorized as raw materials.
c.Explain the benefits and disadvantages of keeping raw materials on hand.
d.Discuss inventory items that are typically categorized as work-in-process.
e.Explain the importance of keeping work-in-process inventory to a minimum.
f.Describe inventory items that are typically categorized as finished goods.
g.Describe inventory items that are typically categorized as maintenance, repair, and operating (MRO) goods.
h.Describe the importance of MRO goods inventory.
i.Discuss items that are considered to be part of a transit inventory.
j.Explain benefits and disadvantages of maintaining a buffer inventory.
k.Describe reasons to build up anticipation inventory.
l.Explain decoupling inventory’s role in avoiding production irregularities.
m.Discuss circumstances that may result in cycle inventory.

SampleActivity

/ While taking a tour at a local manufacturing plant, students should ask the guide (a member of management at the plant) to identify and describe the different types of inventory that the facility keeps on hand. The inventory might be raw materials, work-in-process, finished goods, MRO goods, etc. Following the tour, each student should write a half-page report that details the types of inventory that the manufacturing plant maintains and reasons that it does so.

Resources

Textbooks

/ Bovée, C. L., Thill, J. V., & Mescon, M. H. (2007). Excellence in business (3rd ed.) [p. 306]. Upper Saddle River, NJ: Pearson Prentice Hall.
Clark, B., Sobel, J., & Basteri C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [p. 216]. Tinley Park, IL: Goodheart-Willcox.
Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (p. 508). Woodland Hills, CA: Glencoe/McGraw-Hill.
Finch, B.J. (2008). Operations now: Supply chain profitability and performance (3rd ed.) [pp. 482, 487-488]. New York: McGraw-Hill Irwin.
Krajewski, L.J., Ritzman, L.P., & Malhotra, M.K. (2007). Operations management: Processes and value chains (8th ed.) [pp. 465-466]. Upper Saddle River, NJ: Pearson Education.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management (4th ed.) [pp. 587-588]. South-Western Cengage Learning.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [p. 290]. Boston: Houghton Mifflin.
Raturi, A.S., & Evans, J.R. (2005). Principles of operations management (pp. 202-205). Mason, OH: South-Western.

Software/

Online

/ eNotes. (2011). Inventory types. Retrieved May 16,2011, from
Global Supply Chain Management. (2009, May 9). Types of inventory. Retrieved May 16,2011, from
Inman, R.A. (2010). Inventory types. Retrieved May 16,2011, from
Loughran, M. (n.d.). Five types of inventory. Retrieved May 24, 2011, from
Murray, R. (2010, February 8). Intro to inventory management (types of inventory/stock). Retrieved May 16,2011, from

Knowledge/Skill Statement

/ Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Instructional Area

/ Operations

Performance Element

/ Implement purchasing activities to obtain business supplies, equipment, and services.

Performance Indicator

/ Manage the bid process in purchasing (OP:160)

Level

/ Specialist

SCANS

/ Resources 3; Information 5-8; Systems 15; Technology 18-19; Basic Skills 1-2,
5-6; Thinking Skills 12; Personal Qualities 13

21st Century Skills

/ Critical Thinking & Problem Solving 1, 2, 3; Communication & Collaboration 1, 3, 4; Information Literacy 1

Objectives

/ a.Explain the purposes of the bid process.
b.Describe different types of bidding (e.g., sealed bids, Dutch auctions, reverse auctions, etc.).
c.Discuss general information typically included in bid conditions and specifications.
d.Discuss procedures for preparing bid invitations/requests for proposals.
e.Discuss methods used to locate potential suppliers prior to soliciting bids.
f.Explain methods used to publicize bid invitations/requests for proposals.
g.Identify situations in which a pre-bid meeting with suppliers may be necessary.
h.Explain benefits of holding a pre-bid meeting with suppliers.
i.Demonstrate methods to manage the bid process in purchasing.

SampleActivity

/ Invite a purchasing/procurement professional to speak with the class about the bid process that s/he uses to acquire goods and services for his/her business. Encourage the guest speaker to share sample bid invitations and/or requests for proposals, as well as any other documents that s/he uses during the bid process. After listening to the speaker, students should write a short report in which they explain the bid process as it is used at that particular business.

Resources

Textbooks

/ Burrow, J.L. (2006). Marketing (2nd ed.) [p. 326]. Mason, OH: Thomson/South-Western.
Campbell, G.M., & Baker, S. (2007). The complete idiot’s guide to project management (4th ed.) [p. 126]. New York: Penguin Group.
Clark, B., Sobel, J., & Basteri C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [p. 219]. Tinley Park, IL: Goodheart-Willcox.
Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 495). Woodland Hills, CA: Glencoe/McGraw-Hill.
Finch, B.J. (2008). Operations now: Supply chain profitability and performance (3rd ed.) [p. 385]. New York: McGraw-Hill Irwin.
Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [pp. 170-171]. Upper Saddle River, NJ: Prentice-Hall.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and supply chain management (4th ed.) [pp. 54-58,] 78-79, 96-98]. South-Western Cengage Learning.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [pp. 125-126]. Boston: Houghton Mifflin.
Van Weele, A.J. (2002). Purchasing and supply chain management: Analysis, planning and practice (3rd ed.) [pp. 150-151, 158, 160-163, 276]. London: Thomson Learning.

Software/

Online

/ Clough, K. (2008, January). How to locate wholesale suppliers. Retrieved May 24, 2011, from
Office of Public Transit. (n.d.). Chapter 9: Procurement. Retrieved May 16,2011, from
Spaeder, K.E. (2011). How to find product sources. Retrieved May 16,2011, from
Tesla, A. (2011, April 29). Wholesale suppliers—here’s how to find the best ones. Retrieved May 24, 2011, from
University of Minnesota. (2009, June 2). Bid specifications. Retrieved May 16,2011, from
Woods Hole Oceanographic Institution. (2011, March 7). Management bids & negotiating prices. Retrieved May 16,2011, from