INDIAN INSTITUTE OF MANAGEMENT TIRUCHIRAPPALLI

POST GRADUATE PROGRAMME IN MANAGEMENT

AY 2018-19 | Term 4

SALES AND OPERATIONS PLANNING

Name of the Facilitator: Sivakumar S

No. of Credits: 1

Contact Details:
Email: sivakumar.s@iimtrichy.ac.in
Office: 0431-2505074
Mobile: 831-041-1639

Consultation Hours: Participants may seek prior appointment through email for
consultation regarding the course.

Course Introduction:

Product manufacturing firms are increasingly adopting a combination of push and

pull based marketing strategies to fulfill the dynamic demands of their target
markets. This poses a business challenge that requires superior integration and
coordination between sales and operations functions to plan, produce, and fulfill
this demand. The objective of this course is to help future managers appreciate the
cycle of sales and operations planning and understand relevant models/frameworks
for executing this cyclical process.

This course is structured for application in both manufacturing and service

businesses; with an emphasis on the former. This course will cover several aspects
of sales & operations planning cycle at both strategic and tactical levels. This will
include topics such as the need for operations planning & control, demand
forecasting, capacity planning, aggregate operations planning, master operations
scheduling, and material requirements planning.

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This course will prepare students for operations management roles that they plan to
take up in the future. The key learnings in this course will come from a systematic
analysis of a mini case-let and by participating in a simulation game. Students may
want to take note that the simulation game involved in this course is extremely
addictive and may take a disproportionate amount of your after-class hours (far
more than a typical 1 credit course). But if students are serious about a career as an
Operations Manager, these hours may just be the time well invested!

Course Objectives:

This elective course on Sales and Operations Planning is aimed at providing post
graduate students specializing in Operations and Marketing disciplines with an
awareness of the Sales and Operations planning cycle and its application.

At the end of the course the students will:-

 Appreciate the cycle of sales and operations planning that happens at both
strategic and tactical levels in an inter-functional manner within an
organization
 Become familiar with certain sales demand forecasting techniques and how
they dovetail into the operations planning exercise.
 Understand the relevant models for conducting aggregate operations
planning, capacity requirements planning, master operations scheduling and
material requirements planning.
 Equip themselves with necessary mathematical tools & techniques for
participating in sales and operations planning exercises in organizations.

Pedagogy:

The pedagogy is designed to strike a balance between theoretical treatise,

application orientation and practitioner knowledge. The course will use a single
custom created case-let authored by the instructor to develop a ringside view of the
entire sales and operations planning cycle. This course would require students to
pre-read a specified number of articles before the class and come prepared for class
discussions. Students would be able to take away maximum learning from the
classes and secure superior grades only by pre-reading the specified content. During

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the entire duration of this course, student groups will participate in a custom
created simulation game (outside class hours) and attempt to achieve superior
operational excellence. The act of participation and performance in the simulation
game, along with the key learnings student groups will share as a part of their final
presentation, will also constitute key learning.

Course material:

The course material will constitute the following items:-

 A customized case-let that will drive class discussions.
 APICS Overview of S&OP Process (Click here)
 A list of other pre-reading material available in public domain.
 A customized work book that will be used during the course.
 Microsoft Excel based Simulation game

Course prerequisites:

The course assumes that the student has completed PGP level core courses on
Operations Management and Operations Research (Quantitative Methods-II).

Evaluation scheme:

Evaluation Component Type Weightage Remarks

In-class Quizzes (2) Individual 50% Pre-announced 10
minute quizzes.
S&OP Simulation Game Group 50% Game + Presentation

Session-wise course outline:

Session Topic Case (if any) Pre-class

Number readings
1 Overview of the Sales & Operations Planning
(S&OP) Process
2 Demand Forecasting involving trends and TBC
seasonality and its impact on S&OP process.

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 3 Facility Requirements Planning (FRP) TBC
using Linear Programming models. Mini Case-Let
4 Aggregate Operations Planning (AOP) Neutron TBC
using Linear Programming and Simulation. Brake lines
5 Master Operations Scheduling (MOS) & TBC
Capacity Requirements Planning (CRP)
using relevant mathematical models.
6 Material Requirements Planning (MRP) TBC
along with the utility and application of MRP
logic to ERP systems.
7 Final Presentations by Student groups based
on their performance in the Simulation game.

Any other information:

Recommended Reference Textbook: Manufacturing Planning and Control for

Supply Chain Management, By Vollmann T E, W L Berry, D C Whybark and F R Jacobs,
Tata McGraw Hill, Paperback edition, 2014.

About Simulation Game

This course will require students to form groups of maximum 6 members and
participate in an S&OP simulation game. This game will be Microsoft Excel based
and need to be played outside class hours by the student groups. The groups will
need to strategize and make many key decisions during the simulation game to
maximize operations performance. These operations decisions and the associated
trade-offs that need to be weighed in, will constitute important learning. The game
can be played by the student groups any number of times and they can submit their
best performance for final evaluation. In addition to submission of the simulation
results, student groups will also need to make a final presentation on the key
strategies they deployed to achieve superior performance and key learnings they
took from the simulation game. The grading for this component will be based on the
performance in the simulation game and the presentation.
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About the instructor:

Sivakumar S is an Assistant Professor in OM&QT Area at IIM Tiruchirappalli. He

brings a blend of outstanding academic and professional track record, high quality
research publications, with rich consulting and industry experience. He holds a
bachelor’s degree in Mechanical engineering from NIT Trichy, and a Post Graduate
Diploma in Management from IIM Bangalore. He is a doctoral fellow of IIM
Bangalore in the area of Production and Operations Management. He has a work
experience of 14 years with Wipro Technologies including 7 years of experience in
Europe and USA. During his professional career he played diverse roles in software
delivery, project mgmt, account mgmt, mining sales, domain competency
development, and corporate training. He was the winner of SAP Labs merit
scholarship during his doctoral program at IIM, Bangalore. He was also the winner
of Director’s merit list (DML) award for his academic performance at both doctoral
level and post-graduation level at IIM, Bangalore. He has also received Best People
Manager award, Best Project award, and Best Process Change award from the
Chairman of Wipro. His research interests include management of service
operations, coproduction systems, and service supply chains & outsourcing.