Category: Teaching Tips

Our insights on teaching from our years of experience.

Teaching Tip: Helping Your Students Start a Career in Supply Chain Management

It’s an exciting time to start a career in supply chain. This dynamic field is constantly evolving, providing countless opportunities and potential career paths. But with so many choices, it can be overwhelming for young people to know where to start. Suggest to your students that they attend a free webinar on Nov. 14th. 2-3pm EST, to learn from members of Association for Supply Chain Management’s Young Professional Committee, who will discuss their career journeys and provide insightful advice. Students will gain tips for developing skills and knowledge, valuable networking strategies, achieving their goals, and more.

Here is the registration link:

https://register.gotowebinar.com/register/5930037178654070877

The presenters are:

Moderator: Matt Schuetz, CPIM, Integrated Program Planning Manager at Lockheed Martin

Panelists: Alan Peterson, CSCP, Procurement Agent for Strategic Contracting at Boeing

João Paisana, CSCP, Operational Excellence and Analytics Manager at Triumph

Brenna Newell-Bailly, CPIM, Supply Chain Manager at Sandoz

Olivia Atkin, CPIM, Owns Achieving Success, LLC; is the author of “Achieving Success in Career Development;” and hosts the podcast Achieving Success with Olivia Atkin

Riken Pandya, CSCP, Senior Commodity Manager at Belden Inc.

Teaching Tip: Unleashing the Power of Active OM Learning

The key to educational success in online OM education lies in the integration of active learning strategies, writes Faculty Focus (Aug. 9, 2023).  Consider the following recommendations to better engage students in online or hybrid learning environments:

Collaborative tools such as virtual whiteboards and group projects. Whiteboards enable students to brainstorm ideas and collaborate to solve problems, draw diagrams, and illustrate operations processes. Group projects serve as powerful vehicles for promoting collaboration and teamwork skills. Groups allow them to engage in shared decision-making, divide tasks, and collaborate on a common OM project.

Interactive activities. We have many interactive activities in our text that can help keep students engaged and motivated in online learning. Take our five MyLab simulations (details how to use them in this 9 minute video): inventory (Ch. 12), quality (Ch. 6), project management (Ch. 3), forecasting (Ch. 4), and supply chains (Ch. 11). Students can manipulate variables, observe outcomes, and analyze data, all within a controlled digital environment. Simulations are particularly beneficial for OM decisions, allowing students to gain hands-on experience and develop critical thinking skills.

Quizzing tools are effective in reinforcing key concepts and assessing student understanding. You can create online quizzes with multiple-choice, true/false, or fill-in-the-blank questions using platforms such as Kahoot!, Quizizz, or Google Forms. These tools often offer features like timed quizzes, leaderboards, and instant feedback, creating a gamified experience that motivates students to actively participate and strive for improvement.

Feedback mechanisms play a crucial role in the learning process. Our MyLab homework system provides instant feedback on whether a student’s answer is correct or incorrect, along with an explanation or hints to guide their understanding.

Opportunities for reflection. Reflection is an important part of active learning, as it allows students to think critically about what they’ve learned and how they can apply it. Writing assignments provide a platform for students to express their ideas and insights. For instance, after completing an OM in the News reading or watching a lecture, students can be assigned reflective essays where they critically analyze the content, connect it to real-world examples, and express their own perspectives.

Multimedia content. Our 50+ company video case studies can be used to engage students and help them visualize real-world concepts. These videos not only make the content more relatable and engaging but also enable students to observe that which cannot be shown in a classroom setting.

By using these tools, we think you can create a dynamic and engaging online learning environment for your students.

Guest Post: Aggregate Planning with Excel OM

Today’s Guest Post comes from Dr. Albena Ivanova, who is Professor of OM at Robert Morris University in Pennsylvania.

Excel OM software, which comes free with your Heizer/Render/Munson text, is an excellent tool for students to learn the various concepts of Operations Management. I have been using this software in conjunction with MyOMLab ever since I started teaching. I have found that using this software has not only made the homework completion process smoother but also helped students gain a better understanding of the course concepts.

 

The first thing that I do is show students how to arrange their tabs so they can have the two screens open at the same time next to each other. I usually pick algorithmic problems for class practice, where we are all working on the same problem, but with different numbers. I use the Study Plan for class practice and then give similar questions (but with different numbers) for homework and for the exam. My homework is not time limited, however, the students have only one (1) attempt. If they need to practice, they can do that in the Study Plan before completing the homework.

 

In the attached video I explain the process of using the Excel OM software to complete an Aggregate Problem homework in MyOMLab. The software has been slightly modified, and I have explained these modifications in detail in the video. I think that these small edits provide additional learning experience for the students, as they can see how to create or edit their own templates.

 

Overall, using Excel OM software has been a game-changer in my classroom. It has helped students better understand the course concepts. I hope my experience and the attached video will be helpful to fellow operations management professors in their efforts to enhance the learning of their students.

Teaching Tip: Glossary of Supply Chain Terms

The Financial Times  (Nov. 22, 2022) has just issued a report called How Technology Can Help Redraw the Supply Chain Map . In it, the newspaper provides this useful glossary of current SCM terms for your students to keep handy.

Internet of things (IoT) The IoT consists of sensors that make goods “smart”. These can both send information and communicate with each other. The IoT is used in the supply chain for tracking and monitoring. (See p. 451 in your Heizer/Render/Munson text).

Blockchain Blockchain is also known as distributed ledger technology. It allows for the digital recording of transactions and tracking assets in a business network. It introduces trust where this is scarce. The verifiability of transactions can help to reduce fraud. (See p. 451 and 591).

Artificial intelligence (AI) and data analytics These involve statistics at a huge scale processed at a blistering speed. They can help with warehousing and inventory, improving sourcing relationships and predicting demand AI and machine learning. (See p. 823-831).

Machine Learning (ML) is a facet of AI that applies an algorithm to data. It then taps into previous experience and then accomplishes tasks without human involvement. The algorithms can, for instance, make predictions, form personalized recommendations and recognize images in photos. Examples of ML with which you may be familiar include TikTok recommendations, photo portrait recognition and sentence completion.

Robots and automation This covers the physical side of distribution centers and includes optimizing storage, moving stock and picking and packing. It is increasingly sophisticated. (See p. 277, 292, 371, 490).

3D printing This involves the creation of three-dimensional objects by a machine that uses a computer model. It applies layers of substrate (plastics, liquids or powders) to create physical goods. It allows for the making and replication of extremely complex shapes that cannot be constructed by hand. (See p. 170).

Teaching Tip: Those End-of-Term Surveys

Although universities’ end-of-term evaluations are important, they are often too generic to guarantee detailed insights into our OM classes and our teaching. If we want to get specific feedback from students—about our assignments, MyLab, case studies, guest speakers, projects, readings—we must ask specific questions. And the best way to do that is by issuing our own surveys as well.

Harvard Business School’s Faculty Lounge (Nov. 15, 2022) has 3 suggestions to consider:

1. Ask specific questions to yield actionable feedback– including feedback on the materials you use, the approach you take, or the subjects you cover. Perhaps even ask what students would have done differently if they had been in your shoes and what topics they wished you had time to explore. You might also be wondering whether a particular guest speaker resonated with your students. And while you’re at it, list all the guest speakers in a survey question and request that students rate each one on a 1–5 scale, explaining their rating. You can ask similar questions about assignments, case studies, readings, and projects. Perhaps ask:  “What are you most proud of achieving this term?”

2.  Share the why—and be mindful of the when and how. You want students to understand that their feedback really means something to you—and that you’re thinking through what will lead to their most candid responses. To ensure that students will give your survey their full attention, let them know the “why”—that you’re including your own survey because their specific feedback is incredibly valuable and that you’d appreciate honesty, thoughtfulness, and thoroughness. If you’re worried about survey fatigue, keep your questionnaire short. Also, anonymous surveys build trust and inclusion. Online tools like Google Forms, Qualtrics, and Canvas offer anonymous survey options.

3.  Learn to shrug off unproductive comments.  Anonymous feedback can improve teaching—but also destroy educators’ confidence and innovation. If all your students think your course was wonderful, easy, and absolutely what they expected, it may be a sign that perhaps you’re not challenging students and pushing them beyond their comfort zones. Still, take some comments with a grain of salt, narrowing in on the feedback that is most productive and adjusting accordingly. If you end up surprised by some of your students’ responses, take opportunities to ask for feedback earlier in future terms.

The advantages of creating your own end-of-term survey are plentiful. But an important benefit is that it gives your students a voice.

Teaching Tip: How to Deliver a More Exciting OM Lecture

When preparing a slide presentation for an OM  lecture, we’re not always thinking about the most compelling way to deliver it, says Harvard’s Faculty Lounge (Sept. 13, 2022). We load up our slides, and then sometimes read them aloud to our students.

But no one—especially a student—is wired to engage with bullet points on a slide. They’re wired for story, a narrative that has a theme, attention-grabbing moments, and a satisfying conclusion. On their own, presentation programs like PowerPoint or Google Slides are not storytelling tools. So we need to be the inspiring narrators.

Understanding the difference between presenting and storytelling is critical to our ability to engage students and stir their excitement. Here are 4 strategies to help grab your students’ attention and ensure they are retaining what you’re teaching.

1. Craft a narrative that brings the topic to life. There’s absolutely nothing wrong with using PowerPoints for classroom learning, but slides shouldn’t be designed to replace the instructor—the storyteller. The narrative must come first, and slides should complement the story.  First identify a story that brings the topic to life and then create or select the slides. It can be a consulting experience, a blog from this site, a WSJ article, or a case study.

2. Animate your story with pictures or videos. Students recall only 10% of the content they hear. But if you add a picture, they’ll retain 65%. So use one of our 50+videos, a YouTube clip, graphics, or photos to help bring the stories to life.

3. Add a few surprises. Some PowerPoints are boring because they’re predictable. Your students know what comes next—another slide of bullet points, followed by another. A good story, however, has the element of surprise. The human brain pays attention to novelty—twists and turns and unexpected events. This means your students will perk up when they detect something that breaks a pattern.

4. Rehearse the story before sharing with your class. A great lecture should inform, inspire, engage, and entertain, and should therefore be rehearsed–out loud. While it’s not realistic or necessary to practice every minute of a 1-hour lecture, at least rehearse the opening, conclusion, and stories you plan to share. Students won’t recall every piece of information they heard in class, but they’ll remember the moments you choose to spotlight.

We all strive make our OM course topics compelling–and we are lucky that ours is a field that allows us to bring teaching to life.

Teaching Tip: Why Are Students Disengaged?

Lack of student engagement is one of the biggest challenges OM educators face. And whether you’re teaching in person or online seems to make little difference. As educators, it’s difficult to be sure why students are disengaged unless you ask them directly. To help, Harvard Business Publishing (Aug., 2022) reached out to four students to learn: What is something a professor does that makes you disengage, and what can they do to improve your engagement?

First student (from London): “I disengage in classes where the professors just lecture with no energy or passion for the topic. I would feel more engaged if professors relied less on lectures and leaned into more opportunities that allow students to actually apply the learning to projects or case studies.”

Second student (from India): “Some professors read the content directly from the presentation slides without explaining it further. This can make for a boring lecture. My three ideas are: (1) Make room for breaks during longer lectures so students can refuel.; (2) Crack some jokes to grab students’ attention; (3) Use real-world activities that allow students to apply their knowledge and solve problems.

Third student (from UNC): “Rather than extensive reading assignments and large cumulative tests, professors should consider integrating timely current events or discussions into their material.  Courses can also be taught more effectively through project-based application. Also, provide help sheets, links, online videos, and recommendations for external resources so there are various methods for learning the material. This shows that professors are intentional about wanting students to have opportunities to succeed in their courses.”

Fourth student (from Portland State U.): “I disengage when a professor hasn’t introduced or taught concepts during lectures that are included in homework. I’m more engaged with professors who seem like real people and who have global awareness. The best professors speak to their lives outside of the classroom.”

Based on these responses, it appears that for students to care about what we are covering in our OM class, there needs to be less focus on the grades and more on the learning, as well as ample opportunities for course concepts to be applied to the real world–such as the simulations in MyLab. We will want to stay up to speed on new teaching methodologies and be realistic about what our students value.

Teaching Tip: A 5-Question Checklist for Better OM Course Design

Whether you’re a veteran or new OM educator, Harvard Business Publishing  (June 21, 2022) offers the following syllabus checklist to ensure you set clear, measurable course objectives that align with your graded assignments and instruction topics. Answer yes to the 5 questions below and you’ll have a well-designed course that will more effectively teach students what you want them to learn.

1. Are my course objectives clearly defined and relevant? Take a fresh perspective every semester.

2. What do your students want? Try a pre-course survey. Ask: “Where do you want to work? What do you want to do? What are your goals and aspirations for your career?”  Perhaps use some of our text’s 100+ case studies that relate to specific goals.

3. What do businesses want? Try connecting with people in the field and asking, “What do you wish you’d learned when you were an undergrad or grad OM student?” Ask the same of your alumni.

4. Do your assessments adequately measure student progress? Find a way to measure whether students are grasping the material and meeting their goals. Try giving quick, ungraded assessments consisting of a few short questions. Or do entry tickets before students sit down or exit tickets at the end of class, depending on whether you want to assess how well they grasped the reading assignment or what they just learned in class.

5. Do instructional experiences align with the objectives? Students don’t like busy work. So when you’re planning out assignments, discussion topics, lectures, and guest speakers, be clear about how they all align with the course objectives. For example, if you’ve assigned a group project for a case study or a MyOMLab simulation, explain to your students how this will help them learn. Let them know this exercise is teaching them to collaborate, work in teams, and be a leader—skills they will need in their future careers.

One big complaint from students is that we can go off on tangents with topics that don’t end up on tests or graded assignments. This occurs when there’s a lack of alignment between your course objectives and your instruction, assignments, and assessments. If you use your end goals as drivers for planning, your syllabus will have purpose, structure, and transparency—and your students may be more willing and active participants in your class.

 

Teaching Tip: Join Jay, Barry, and Chuck for a Teaching Webinar on Tuesday March 1st

Please join us next Tuesday, March 1st, at 3 pm EST for 1/2 hour as we dive into resources to help Operations Management students not only analyze data to make decisions, but to also understand the importance of these skills in their future careers.

We will discuss the challenges of guiding students on the path to critical thinking, the need for lifelong skills and connecting to the real world to make them hirable.

And for those of you unfamiliar with our package of over 1,000 algorithmic homework problems, our virtual office hours, company videos, simulations, and new “Creating Your Own Excel Videos,” this is a chance for us to highlight some really helpful tools to bring to your course.

Our 20 minute presentation will allow for 10 minutes of Q&A.

Registration is free and all you need to do is click on this link:

https://www.pearson.com/us/about/news-events/events/2022/03/digital-tools-to-help-operations-management-students-succeed.html

The 14th Edition of Operations Management Has Arrived!

Jay, Chuck, and I are excited to announce that the 14th edition of our Operations Management text is now available! (To order your desk copy, click here). There are many changes that we hope you will be pleased to incorporate into your course that I will detail in a few blogs over the coming weeks.

New Coverage and Examples
Here are two new topics we are discussing in the 14th edition:
◆ Industry 4.0, (the Fourth Industrial Revolution), with extensive digitalization and pervasive impact on OM, is now introduced throughout the text via discussion, photos, and cases.
◆ COVID-19 had, of course, a major impact of lives, education, work habits, and global supply chains. Not every aspect of business will return to normal immediately, and we address the fallouts throughout the text and in two new case studies.

Video Cases—Nautique Boat Company. As with each prior edition, we offer integrated Video Cases as a valuable teaching tool for students. These 46 short videos help students see and understand operations in action within a variety of industries. With this edition, we are pleased to take you behind the scenes of Nautique Boat Company, maker of the iconic Ski Nautique and other premium pleasure boats. Our four new video cases explore operations strategy (Ch. 2), product design (Ch.5), supply chain issues (Supp. 11), and inventory (Ch. 12). In addition, we continue to offer our previous Video Cases that cover Celebrity Cruises, Alaska Airlines, the Orlando Magic basketball team, Frito-Lay, Darden/Red Lobster Restaurants, Hard Rock Cafe, Arnold Palmer Hospital, and Wheeled Coach Ambulances. If you choose to assign the video cases as homework on-line, there are 4 multiple choice questions for each in MyOMLab.

New Videos to Help Students Build Their Own Excel Spreadsheets
Excel use in the OM course is more and more important. Instructors often ask their students to develop their own Excel spreadsheet models. We include “Creating Your Own Excel Spreadsheets” examples toward the end of numerous chapters to illustrate how students can build their own spreadsheets to solve OM problems, and in this edition, we’ve created 12 new step-by-step videos to accompany these examples.

More Homework Problems—Quantity, Algorithmic, and Conceptual
We know that a vast selection of quality homework problems, ranging from easy to challenging, is critical for both instructors and students. Instructors need a broad selection of problems to choose from for homework, quizzes, and exams—without reusing the same set from semester to semester. We take pride in having more problems—by far, with 850—than any other OM text. For this edition, we have added scores of new algorithmic problems and concept questions in MyOMLab.

Algorithmic Test Bank Questions
About 200 numerical multiple choice test bank questions have been converted to algorithmic so that every student sees different numbers and a different set of answers for these questions.

For those of you using our Principles of OM (11th ed.) version, note that with the explosion of etexts, we have merged the book with our longer OM text (which includes 7 business analytics modules). In effect, students will have access to a broader range of topics without paying a higher price.

Teaching Tip: No Satisfaction on Student Ratings of Instruction

If your college is like mine, student teaching evaluations are taken very seriously for both pay raises and promotion and tenure decisions. But yet another study is challenging the idea that student evaluations of teaching reliably measure what they’re intended to measure: instructional quality.

The new study, reported by Inside Higher Education (Jan, 19, 2022), builds on the well-documented correlation between students’ grades and how they rate teachers (i.e., students who earned better grades in a course tend to rate those instructors more highly than peers who got lower grades). After testing and eliminating other possible drivers of this correlation, the study, conducted at Ohio State U., asserts that it’s not about instructional quality, workload or grading stringency or leniency–instead, it is student grade satisfaction that drives this correlation.

Like other studies before it, the research (based on 19,158 evaluations in 2021) poses urgent questions about how institutions should use student evaluations of teaching, if at all. Many colleges and universities still widely use them for high stakes personnel decisions. One co-author said, “The burden of proof is really on the wrong side right now. Proponents of student evaluations of teaching should show that they actually improve student outcomes—achievement, persistence, completion. The best prior evidence that has been presented—that evaluations are positively correlated with student grades—clearly do not establish that, as our study shows once again.”

Educators have over the years toyed with the idea of somehow adjusting student ratings for grades given, to mitigate the known grade-rating effect. Some proponents of student evaluations have mused that better grades simply reflect better teaching. But several studies have discredited that idea. Crucially, the OSU study also rules out the notion that students simply reward easier classes with better ratings for the instructor, as the analysis takes students’ class sections, and what it calls “class fixed effects,” into account.

Compared to students who got an A, students who got an A-minus rated the class 0.22 points lower over all, on average, on a 5-point scale used at OSU. Students who got a B rated the class 0.34 points lower. Scores fell further for lower passing grades, to about 0.5 points lower than reported by A students. Students who failed rated their course more than 0.7 points lower than A students.

Teaching Tip: Assessing Your OM Students and Academic Integrity

Academic integrity has long been a necessary consideration for educators, but last year’s abrupt move to online learning intensified questions about just how much students may take advantage of outside help. Whether in person or online, then, what can you do to minimize cheating in the first place? As we near the end of the year, here are some ways you can adjust your assessment approach to better support students and give them the confidence to succeed.

While there will always be a few students who plan to cheat no matter what, many students are driven to do so by fear. So the solution is not to amp up your cheating-detection skills. Instead, Harvard Business Publishing (Dec. 6. 2021) suggests that educators can reduce students’ inclination to cheat in the first place by better engaging them in class and giving them more opportunities to confidently showcase their knowledge. Here are some strategies OM profs can use to reduce academic dishonesty and assess student learning more effectively.

Four ways to adjust exams to discourage cheating:

  1. Give students more assessment opportunities throughout the semester by breaking up larger exams into smaller unit-, chapter-, or topic-specific tests.
  2. Use the Heizer/Render/Munson bank of 2,000+ test questions (and some 400 are algorithmic) and mix them up on your exams—if each student receives a different set of questions, it will be harder to share answers.
  3. Use problems or questions that ask students to explain, analyze, and infer—to prompt unique responses.
  4. Use some of the 850 problems from MyOMLab instead of multiple-choice testing.

Three tips for boosting test-taking confidence:

  1. Provide practice questions so students can learn what their strengths and weaknesses are before the pressure of a real exam.
  2. Help students monitor their own progress by using low-stakes quizzes, or one-minute paper questions immediately following the introduction of new material to give them the practice they need to retrieve and rehearse information.
  3. Offer students the opportunity to self-correct their answers after a quiz rather than directly giving them immediate feedback. This sets the tone that quizzes are learning opportunities.

Our goal is to prepare students to demonstrate and retain knowledge through exams, not heighten their anxiety or increase their proclivity to cheat. So it’s important to consider the purpose that each question serves toward the course objectives. Exams should help students fully understand concepts and analyze ideas on their own.

Teaching Tip: How to Answer Student Questions in Your OM Class

We get asked a lot of questions when we are teaching. Having taught for 40 years, I am now (finally) pretty comfortable with most that come my way. But that wasn’t the case in my first few years in academia. Some questions were scary smart and I am not sure I handled them with comfort and confidence. Faculty Focus (Nov. 1, 2021)  suggests these 5 strategies for mastering the art of answering questions in class.

1. Smile-Breathe-Think-Talk. Begin by smiling. The smile is not really for the class (although it may help us connect), but allows us to calm down, and to view the Q&A interaction more positively. Then breathe. This allows provides a pause so that we do not rush into an answer to the question. After considering our answer, we relay our carefully considered answer.

2. Validate and thank the questioner. It is easy to forget that students asking us questions may be anxious about doing so in public. So first genuinely thank the student. Then validate the question as interesting and important. This will let students know that we want to hear their thoughts and questions.

3. Be aware of your body language. Making eye contact with the student who asked the question, turning your body toward them, taking a small step toward them, and/or smiling can let the student know that we are listening and respect the question. If we break eye contact, cross our arms, turn or walk away, or frown, we convey that we are uncomfortable with the question.

4. Say “I Don’t Know” in productive ways.  In reality, if our students have good questions, we may not always know the answers. But we can still demonstrate our thoughtfulness and knowledge to the class. We can say that while we do not know the answer in that moment, we will find and relay the answer to them later (and then do that). Taking a moment to write the question down conveys that the question is important to us. Another strategy is to brainstorm and crowdsource the answer, suggesting we use research resources.

5. Embrace questions. If we are asked questions while we are teaching, our students are using their voices to gather more information, to show investment in our content, and to pay us a compliment. These questions allow us to teach better by allowing us to fill in gaps in our lecture, re-explain confusing material, or extend the content in ways that are interesting and relevant.

Teaching Tip: Assigning Case Studies through MyOMLab

With close to 100 short  (1/2 -1 1/2 page) case studies in our text and on MyOMLab, Jay, Chuck, and I are big believers in the benefit of cases for both undergrad and MBA students. They bring a real world sense to the classroom and encourage students to analyze OM issues on a deeper level than that in homework problems. But, of course, grading case study solutions in a large class is an onerous task that may detract from the advantages of assigning them. So, for fall semester, we propose a solution. We have selected 1-2 case studies in each chapter and created four multiple choice MyLab questions for each case. The questions are not trivial and require a thoughtful analysis before responding. The idea is to provide you with more pedagogical options. And if you like the idea, please email us (or comment below) and we will add this feature to all of the text’s cases. Here is a list of the MyLab coded cases available by chapter:

Ch 1 Zychol Chemical

Ch 2 Rapid-Lube

Ch 3 Southwestern University: (A)

Ch 4 Southwestern University: (B)

Ch 5 DeMar’s Product Strategy

Ch 6 Southwestern University: (C) and Westover Wire

Supp. 6 Bayfield Mud Co.

Ch 7 Rochester Manufacturing’s Process Decision

Supp. 7 Southwestern University: (D)

Ch 8 Southern Recreational Vehicle

Ch 9 State Automobile License Renewals

Ch 10 Jackson Manufacturing

Ch 11 Premier Bicycle’s COVID Problem

Supp. 11 JIT after a Catastrophe

Ch 12 Zhou Bicycle Co.

Ch 13 Andrew-Carter

Ch 14 Hill’s Automotive

Ch 15 Old Oregon Wood Store

Ch 16 Mutual Insurance

Ch 17 Worldwide Chemical

Module A Tom Thompson’s Liver Transplant

Module B Coastal States Chemicals

Module C Custom Vans

Module D New England Foundry

Module E SMT Negotiation with IBM

Module F Alabama Airlines’ Call Center

Teaching Tip: Forget Finance–OM/SCM is the Degree to Have

The toilet paper aisle at a Florida pharmacy.

Stores with no toilet paper. Colossal cargo ships run aground in the Suez Canal. Factory shutdowns in Vietnam. Ports closed in China. It almost seems that not a day goes by without reports of another supply-chain snafu wrought by the pandemic, which dismantled JIT inventory systems that couldn’t cope with massive, simultaneous disruptions of supply and demand–topics we cover in Chapter 11 and Supp. 11, SCM and SCM Analytics.

Companies have struggled to adapt, with some taking unusual steps. Walmart and Home Depot are chartering their own private cargo vessels so they don’t get caught short as the holiday season approaches, as disruptions from congested ports won’t end anytime soon. The tumult has forced companies to lavish more attention on their SCM professionals, writes Bloomberg Businessweek (Sept.3, 2021). It’s also prompted B schools to refresh their OM/SCM curricula to make sure the next generation of logistics managers are prepared for future crises. “For years, we had sort of taken logistics for granted,” says the dean of Harvard Business School. “The pandemic caused us to rethink it.”

Incoming business students who once defaulted to finance or marketing now want to explore OM/SCM. This academic year more than 400 juniors in Penn State’s undergrad program have declared their intent to major in it, up from 270 the previous year.

Students who pursue OM/SCM degrees this fall are certain to get an earful about the limitations of JIT inventory systems, which grew in popularity during the 1990s. For some companies, though, getting lean became a religion and their undoing when the pandemic hit and there was no surplus stock to be found. Covid-19 exposed the weaknesses of legacy inventory systems, which typically emphasize cost reduction above all else. At Walmart, U.S. inventory rose 20% last quarter as it doesn’t want product shortages come Christmastime. Still, shuttered factories, port congestion, and trucker shortages have brought more chaos to already overtaxed supply chains, raising prices on groceries and jeopardizing the delivery of millions of presents for the holidays.

Classroom discussions may now delve into the downsides of sourcing too much from China or any single country, while they also explore the role that new technologies like machine learning and AI can play in manufacturing and inventory decisions. “Any company that says they fully understand their supply chain is lying,” says one Harvard prof. “The 20th century was about finance. The 21st century should be about supply chains.”