A practical approach to teaching the aspects of plant closing in an undergraduate operations management course
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In light of the recent economic downturn, the introduction and instruction of methods and practices related to plant and facility closings are topics that are long overdue as part of the Operations Management course content presented in our Business Schools. Operations Management textbooks provide little to no coverage of operations shutdown for plant closing. As a result, this topic is frequently excluded from Operations Management courses. Two elements missing from most OM courses are a textbook chapter covering the closing process and inclass exercises/activities related to applying that process. This paper addresses the key topics needed for a textbook chapter dealing with the operational aspects of closing a facility. Such topics include employee impact (and dealing with employee retraining), the WARN act (including ERISA issues), inventory disposition, and quality control. Teaching notes for each section are included, with an overall discussion of class activities related to the topics. We provide educators with a best practices approach to teaching students how to handle the operation of the plant in this difficult time. There are activities that the operations manager should start doing, stop doing and keep doing. A frank, practical experience-based perspective is given.
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