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INTERNATIONAL ISSUES

ROBERT E. MARKLAND, Feature Editor, College of Business Administration, University of South Carolina



A Survey of Operations Management Programs in New Zealand Universities

by David J. Robb, Department of Management Science and Information Systems, The University of Auckland, New Zealand

In recent years, Production and Operations Management has consolidated its position as a vital functional area in contributing towards the survival and prosperity of many enterprises. This trend is also apparent in the emergence of a variety of new Operations Management (OM) offerings within New Zealand universities. This paper presents the current level of interest and activity in OM education, with the hope of encouraging further curriculum/program development, as well as cooperative ventures in advanced education and industry.

For the purpose of the survey, OM is viewed as a functional field of management involving "the design, operation and improvement of the production systems that create the firm's primary products or services" (Chase and Aquilano, 1995). Thus, there is both a distinction (in terms of breadth and managerial focus) as well as an overlap (in terms of application of mathematical models) with the field of OR/MS.

Survey data sources include faculty from the seven universities (see note 1), 1996 university calendars, departmental Internet home pages (see note 2), and the New Zealand Ministry of Education.

OM Faculty

New Zealand's universities currently have 36.5 full-time equivalent (FTE) academic faculty regarded as teaching primarily in the field of Production/Operations Management (see Table 1). This equates to 0.8% of university-wide academic staff, a figure similar to that in North America. With the equivalent of 16 positions added in the past 6 years, the annual average growth rate in OM faculty has been more than double the university-wide rate (4.5% per annum, compounded). New OM positions are expected in most universities over the next two years.

Academic positions typically involve a teaching load of three courses per year (a course typically requiring a total of 36 or 48 lecture hours). One half of the positions are at the level of senior lecturer (equivalent to associate professor in North America), with only three at higher levels (cf. 20% university-wide).

The Role of OM in Programs

At the undergraduate level, no OM courses are required as part of any general bachelor's degree. Rather, students generally take OM courses as part of a "major"þoften in "management" or "management systems" (although Auckland has recently defined an OM major). In contrast, all MBA programs (except for Waikato) have a required OM component (either as a core course, or contributions in several courses).

Based on enrollment figures in OM courses, a measure of the magnitude of OM can be calculated for each institution in terms of Equivalent-Full-Time Students (EFTS) (see note 3). These figures appear in Table 1 and Figure 1 (the latter providing breakdown by level). Although 60% of OM EFTS are associated with undergraduate courses (which themselves comprise 9% of undergraduate commerce EFTS in NZ), there is a significant proportion in executive programs (in particular, the MBA at Massey and the Diplomas in Business and Management at Auckland). The interest in adult education may well be attributed to the increased competition resulting from the deregulation of the NZ economy (see Everett, 1995; Heyl, 1996), as well as competition from a growing number of undergraduates (output doubling over the past decade).

Courses for research-based graduate students in OM comprise less than 3% of total OM EFTS. This, coupled with a scarcity of OM doctoral students (4 out of a total of 2356 across all programs in NZ (Ministry of Education, 1996), is cause for concern, both in terms of research and faculty recruitment.

The introductory/core OM undergraduate courses are second-year courses on all programs except the four-year BTech at Massey and BMS at Waikato (where they are third-year). A wide variety of texts are used, the most popular being Chase and Aquilano (1995), used in three universities.

The considerable breadth of OM courses is illustrated in Exhibit 1, which classifies some 89 courses by program and institution. Among the elective offerings, there is a strong representation of courses in Quality and Operations/Manufacturing Strategy. Given recent trends (e.g., Australian Manufacturing Council, 1994; Campbell-Hunt and Corbett, 1996; Hyde et al., 1995) it is disappointing that there are few courses dedicated to areas such as time-based competition, flexibility, new product/service development, process improvement, project management, and international OM.

OM Highlights from Around the Country

At the University of Auckland, OM is taught on numerous programs, including the successful post-experience Diploma in Business Programs in both OM and Quality Management. An undergraduate OM major requires three OM and two MS courses.

Waikato University is well-known in the business community for its four-year Bachelor of Management Studies. It also has the largest total enrollment in OM courses contributing to research-based masters degrees.

At Massey University, OM is taught in both the Department of Management Systems (where teaching is predominantly in the Year 1 of a large MBA program), as well as the Department of Production Technology, where many students enrolled in the BTech program options of "Manufacturing and Industrial Technology" and "Engineering and Automation" take 5 to 10 OM courses. There is wide use of non-traditional (i.e., non-lecture) methods in teaching, and an emphasis on the Theory of Constraints.

Case studies and applied projects play a key role in most OM courses at Victoria University. A Master of Management Studies (Decision Sciences) has been recently introduced, with a required course in "Quality Management and Continuous Improvement."

Lincoln University's commerce program has experienced rapid growth in recent years. A new BCom (Manufacturing and Technology Management) has been established in conjunction with the Canterbury Manufacturers' Association and linked to NZPICS and the CPIM certification program.

The University of Canterbury engages a systems view of OM in its courses, with a second year undergraduate P/OM "Methods" course followed by "Modelling" and "Managing" courses in the final year (the Managing course making extensive use of case studies).

Otago University has a large undergraduate offering, and employs case studies in all courses. A new third-year OM applications course in 1996 has been specifically targeted to Accounting students. Applied projects are part of the MBA core course in OM.

Trends and Recommendations

Recent improvements in the employment prospects for university graduates (New Zealand Vice-Chancellors' Committee, 1995) have been parallelled in excellent opportunities for OM graduates. Typical entry-level positions include production planning, purchasing, inventory control, quality management, as well as analyst positions requiring strong quantitative skills. Many graduates (and particularly those with strengths in MS or general business administration) end up in jobs that are not strictly "OM" and this causes some faculty to question the value of specialisation (e.g., an OM major).

University faculty are clearly conscious of, and are responding to, demands of employers for skills in modelling, analysis, problem solving/creative thinking, and strategic thinking, as well as the ability to communicate and work in groups. Graduates are increasingly expected to be familiar with new technologies, practices, and applications software, as well as being well-versed in the management of operations in both manufacturing and service environments. This trend clearly supports a recent call by the Manufacturing Advisory Group for increased managerial skills in the manufacturing sector and increased interaction between the sector and education providers (Manufacturing Advisory Group, 1993).

For the future, there remains considerable scope for enhancing OM education in NZ through such means as:

  • Beefing up exposure to OM in first-year undergraduate courses and secondary schools.
  • Developing and publishing New Zealand-based cases.
  • Investigating employer needsþupdating and extending the report of Turner and Radford (1981)þpossibly in conjunction with a management consulting/recruitment organisation.
  • Fostering affiliations with related professional societies such as ORSNZ, NZPICS, and the New Zealand chapter of the PMI.

Acknowledgements

The author thanks the following for their contributions to this survey: Chuda Basnet (The University of Waikato), Tom Batley (University of Otago), Lawrie Corbett (Victoria University of Wellington), Jeff Heyl (Lincoln University), Ross James (University of Canterbury), and Tony Vitalis and Alan Wright (Massey University).

Notes

1. A questionnaire was completed by a representative from each of the departments in which OM is taught. Each of the seven university faculties of business/management/commerce is represented, along with Massey's Faculty of Technology. Manufacturing/engineering management programs in engineering faculties, and OM programs in New Zealand's 25 polytechnics were not surveyed at this time.

2. Links to these sites are provided at the following URL: http://www.business.auckland.ac.nz/faculty/staff/DRobb/drobb.htm

3. Differences in units of measurement between programs/institutions have been accounted for by defining the number of courses constituting full-time enrollment. There is no extra weight for higher-level courses as may arise in funding formulae. Several part-OM courses have discounted weights.

4. OM data from the Departments of Management Systems and Production Technology are combined.

References

Australian Manufacturing Council and Manufacturing Advisory Group (NZ), Leading the Way: A Study of Best Manufacturing Practice in Australia and New Zealand, 2nd Edition, November 1994.

Campbell-Hunt, C. and Corbett, L.M., A Season of Excellence? An Overview of New Zealand Enterprises in the Nineties, NZ Institute of Economic Research (Inc), Wellington, 1996.

Chase, R.B. and Aquilano, N.J., Production and Operations Management: A Life Cycle Approach, 7th Ed., Irwin, Homewood, IL, 1995.

Everett, A.M., "From Mutton to Mungo: Revitalizing the Management of New Zealand," Decision Line, 1995, 26(5), 4-6.

Heyl, J.E., "Well, Mate, There's a Little More to It Than That!", Decision Line, 1996, 27(1), 6-7.

Hyde, A., Basnet, C. and Foulds, L., "Progress Towards World Class Manufacturing In New Zealand: A Survey of Current Practice," New Zealand Journal of Business, 1995, 17(1), 41-58.

Manufacturing Advisory Group, Manufacturing for GrowthþThe Strategic Agenda 1994, 1993.

Ministry of Education, Education Statistics 1996, Ministry of Education, Wellington, 1996.

Ministry of Education, Tertiary Education Statistics 1995, Ministry of Education, Wellington, 1995.

New Zealand Vice-Chancellors' Committee, Graduate Employment in New Zealand, New Zealand Vice-Chancellors' Committee, Wellington, 1995.

Turner, R. and Radford, R., "The New Zealand Production Executive," New Zealand Journal of Business, 1981, 3, 105-125.


Download TIF files of table, figure, and exhibit in zipped file (intl28_2.zip)



from Decision Line, March 1997, 28(2)