Executive MBA



Executive MBA

Summer 2007

OPIM 953

OPERATIONS SIMULATION / Business Process Modeling

Instructor: Dave Goldsman

Office: FMAN 1161

Phone: (216) 483-9683 (Office)

(216) 483-9841 (Home)

Fax: (216) 483-9699

E-mail: sman@gatech.edu

Web: and isye.gatech.edu/~sman/courses

Class Times:

Saturday, June 9 12:30 p.m. – 7:00 p.m.

Weds., June 13 6:00 p.m. – 10:00 p.m.

Saturday, June 16 12:30 p.m. – 3:30 p.m.

Saturday, June 23 4:00 p.m. – 7:00 p.m.

Friday, June 29 6:00 p.m. – 9:00 p.m.

Saturday, June 30 9:00 a.m. – 12:00 p.m.

Friday, July 6 6:00 p.m. – 9:00 p.m.

Office Hours: by appointment

Course Objectives:

This course presents the concepts and tools required for modeling business processes via computer simulation methods. First the conceptual framework for business process design is introduced, followed by methods that can be used to decompose and analyze a business process as well as performance measures for evaluating efficiency of process models. Students get to use computer-based tools to design, re-design and edit business process models. The last part of the course covers event-based simulation concepts and tools for analyzing new business processes. Particular emphasis is granted to discrete-event simulation as it represents one of the most flexible and powerful tools available for modeling business processes.

Learning Outcomes:

The main objective of this course is to provide a comprehensive understanding of a number of tools — especially computer simulation — that can be used to understand, analyze, model and (re-)design business processes.

This course will help you to

▪ Understand business processes and their design, and moreover their importance in overall business performance and a firm’s strategic positioning.

▪ Learn fundamental principles for successful process management.

▪ Use a simulation-based methodology for business design projects from initialization to implementation.

▪ Exploit graphical tools for charting and describing business processes, which are extremely useful in analyzing existing processes.

▪ Understand fundamental design process design principles and associated analysis methods.

▪ Manage process flows with regard to performance measures.

▪ Explore a simulation software tool (Arena) to model business processes, where issues such as collecting data and using built-in tools for statistical analysis are also managed.

▪ Deal with statistical analysis such as input data analysis, which is used in determining input data distributions, and output data analysis, which is of particular importance in comparing the performance of alternative process designs.

Course Materials:

• I’ll provide all reading materials and notes.

• I’ll also provide everyone with a student version of the Arena simulation software. (When installing, you will be asked to supply a password, which happens to be “student”.) The student version of Arena is limited, but sufficient for realistic examples and in-class exercises. Bring your notebook computer to class.

• Other software will be handed out as needed.

• Optional Text: Laguna, M. and Marklund, J., Business Process Modeling, Simulation and Design, 1st Edition, Prentice Hall, 2004.

Instructional Design:

I will teach the course in traditional lecture style, but I’ll also assign numerous in-class exercises to complement the lectures.

Grading:

Grades will be based on in-class participation, in-class and homework exercises, a take-home exam, and a project. If you need to miss a class, please let me know, so we can deal with it.

|Participation |: 25% |

|In-class and HW exercises |: 25% |

|Exam |: 25% |

|Project |: 25% |

Academic Honesty:

Learning is enhanced through cooperation and as such you are encouraged to work in groups, ask for and give help freely in all appropriate settings. At the same time, as a matter of personal integrity, you should only represent your own work as yours. Any work that is submitted to be evaluated in this class should be an original piece of writing, presenting your ideas in your own words. Everything you borrow from books, articles, or web sites (including those in the syllabus) should be properly cited. Although you are encouraged to discuss your ideas with others (including your friends in the class), it is important that you do not share your writing (slides, MS Excel files, reports, etc.) with anyone. Using ideas, text and other intellectual property developed by someone else while claiming it is your original work is plagiarism. Copying from others or providing answers or information, written or oral, to others is cheating. Unauthorized help from another person or having someone else write one’s paper or assignment is collusion. Cheating, plagiarism and collusion are serious offenses that could result in an F grade and disciplinary action. Please pay utmost attention to avoid such accusations.

Course Schedule:

|Module |Topics |

|Module 1 |Whirlwind Tour of Simulation |

|Module 2 |Motivational Hand Simulation Exercise – Single-Server Queue |

|Module 3 |Introduction to Business Process Design (Ch. 1, L&M) |

|Module 4 |Motivational Hand Simulation Exercise – Multiple-Server Queue |

|Module 5 |Process Management & Process-Oriented Improvement (Ch. 2, L&M) |

|Module 6 |Introduction to Arena (Kim/Nelson notes) |

|Module 7 |Simulation Framework for Business Processes Design (Ch. 3, L&M) |

|Module 8 |Simple Queues in Arena (Example 3-1) |

|Module 9 |Managing Process Flows (Ch. 5, L&M) |

|Module 10 |Multiple Queues in Arena (Example 4-1) |

|Module 11 |Motivational Hand Simulation Exercise – Inventory System |

|Module 12 |Motivational Arena Exercise – Inventory System |

|Module 13 |Call Centers in Arena (Example 5-1) |

|Module 14 |Introduction to Queuing Theory (Ch. 6, L&M) |

|Module 15 |Modeling & Simulating Business Processes (Ch. 8, L&M) |

|Module 16 |Input Data Analysis (Ch. 9, L&M) |

|Module 17 |Motivational Case Study – Hospital Patient Flow |

|Module 18 |Output Data Analysis (Ch. 9, L&M) |

|Module 19 |Motivational Case Study – Call Center |

|Module 20 |Discussion of Potential Projects |

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