Fundamentals of Business Organization

Knowledge and understanding (A1–A4) - By the end of the course, participants:

• possess the fundamental notions of Industrial and Managerial Engineering (expected learning outcome A1);

• know the principles, tools and logics of management control (expected learning outcome A2);

• know the basic concepts of cost and management accounting and the main cost categories (expected learning outcome A3);

• know the principles and methods for managing operations and supply chains in business systems and sustainable business networks (expected learning outcome A4).[unict]

Ability to apply knowledge and understanding - By the end of the course, those who have attended the learning activities are able to:

• apply consolidated and innovative quantitative and qualitative methods for cost measurement and analysis (e.g. break‑even point, contribution margin, full and direct costing methods, cost centers);

• use such tools to support management control and operational decision‑making in business systems and business networks;

• apply principles for managing operations and inventories in industrial contexts, with particular attention to lean systems and supply chains.[unict]

Making judgements - By the end of the course, those who have achieved the expected learning outcomes are able to:

• critically assess economic‑managerial information produced by management control systems;

• compare and choose alternative solutions for cost calculation and operations management on the basis of economic, organizational and sustainability criteria;

• interpret the impact of managerial decisions on business performance objectives and on the sustainability objectives of business networks

Communication skills - Participation in the learning activities makes it possible to develop the ability to:

• present, in written and oral form and using appropriate technical‑economic terminology, the results of cost analyses and performance evaluations;

• discuss case studies on management control and operations management, interacting effectively with teaching staff and peers during lectures, exercises and seminars.

Learning skills - The course provides the conceptual and methodological tools needed to:

• continue studying, in an autonomous way, subsequent courses in the area of management and operations;

• use textbooks, digital teaching materials and advanced information sources to deepen topics in management control, cost and management accounting and operations management, including in relation to the challenges of Sustainability and Circular Economy.

The knowledge acquired will be useful for managing and controlling operations in business systems and sustainable business networks, in line with Goals 7, 8, 9, 11, 12 and 13 of the 2030 Agenda for Sustainable Development.

The course includes lectures and in‑class exercises on Management Control in business systems and Operations Management in business networks, based on theoretical presentations, discussion of applied examples and numerical exercises.

• Expository Teaching (DE) consists mainly of lectures and classroom exercises, supported by teaching materials (slides, solved exercises, support documents) made available in the course’s MS Teams channel.

• Interactive Teaching (DI) includes guided exercises on management control cases, discussion of business cases and seminars delivered by industry professionals.

For successful participation in the course, the following are required:

• basic logical–mathematical skills (indispensable), necessary to understand quantitative methods for cost calculation and economic analysis;

• knowledge of the concept of derivative and its geometric meaning (important), for the application of economic optimization principles.

Part One - Elements of microeconomics, management accounting and cost calculation methods

• Elements of applied microeconomics (supply and demand, market imbalances and costs in the short and long term). 
• Management accounting (the company information system, the purposes of management accounting, the types of costs, the cost calculation objects, the classification of costs).
• Cost calculation methods (break-even point, first and second level contribution margin, simple and advanced direct costing, full costing, cost centers).

Part Two - Elements of Operations Management

• Operations strategy (operations and supply chain processes, the difference between goods and services, lean production and just-in-time). Supply chain strategies (the measure of supply chains performance, the bullwhip effect and information distortions). Strategic capacity management and inventory control (inventory purposes, inventory management systems). The Circular Economy.

Teaching materials, announcements, and any other course-related information are made available through the course MS Teams channel. To access it, you must enter the following password: hi29w2i. Please note that entering the password does not automatically enroll you in the channel, as access requests must first be approved by the group administrator. During the lecture period, requests will be reviewed on a weekly basis; thereafter, they will be reviewed on a biweekly basis.

The slides will be uploaded to the course’s MS Teams channel before the in-class lectures/exercises. In addition, after the classroom exercises, the exercise solutions will be published. Students are also kindly asked to carefully study all the support documents published in the 'Important Information' folder of the course’s MS Teams channel (e.g.: guidelines for requesting assistance, exam instructions, teaching material instructions, etc.).

Recommended textbooks for the first part, especially for those who do not attend the lectures:

1. Anna Maria Arcari (2019). Programmazione e controllo, Third edition. McGraw-Hill Education.

2. Cristina Cattaneo, Massimo Contraffatto (2018). Programmazione e Controllo. Principi e applicazioni. McGraw-Hill Education.

3. Robert N. Anthony, David Hawkins, Diego M. Macrì, Kenneth A. Merchant (2021). Sistemi di Controllo 15th Ed. McGraw-Hill Education.

Recommended textbooks for the second part, especially for those who do not attend the lectures:
4) Robert F. Jacobs, Richard B. Chase, Alberto Grando, Andrea Sianesi. Operations Management nella produzione e nei servizi – Fourth edition. McGraw-Hill Education

The examination consists of a 50‑minute written test, including theory questions and applied exercises on the contents of the syllabus, to be taken on the exam.net platform (the detailed specifications of the test are published in the course’s Teams channel). The Examination Committee, after marking the test carried out on exam.net, integrates the assessment through an oral examination, which is accessible only after passing the written test with a minimum score of 18 points.

The examination is designed to assess: (1) the correctness and completeness of knowledge of the topics indicated in the course syllabus; (2) the ability to apply cost calculation methods and operations management principles to practical cases; (3) clarity of exposition and logical rigor in argumentation.

For preparation purposes, it is essential to study all the materials available in the course channel (slides, sample exercises and their solutions), as well as all support documents published by the lecturer (e.g. “Guidelines on the examination”, “Guidelines on teaching materials, notices and various requests”, “Guidelines for requesting assistance/office hours”, “Frequently Asked Questions”). The content of these documents is examinable to the same extent as the lectures and the main teaching materials.

Below is a detailed grid illustrating the examination format.

Further details regarding the structure of the examination, the maximum score obtainable for each question, the corresponding set of rules for calculating points, the tools allowed during the examination, the procedures for booking exam sessions, booking the end‑of‑course test, accepting the grade and its recording, etc., are provided in the specific documents published in the course’s Teams channel, which should be read carefully.

Moreover, if the timetable allows, participants may take an end‑of‑course test (before the Christmas break), which will be held using the same assessment methods as the examination. Finally, before the end of the course, a mock examination will be organised in order to enable self‑assessment of individual preparation.

Information for students with disabilities and/or specific learning disorders (DSA): To ensure equal opportunities and in compliance with current legislation, those concerned may request a personal meeting in order to plan any compensatory and/or dispensatory measures, in line with the learning objectives and specific needs. It is also possible to contact the CInAP (Centre for Active and Participatory Integration – Services for Students with Disabilities and/or DSA) contact person for the Department.

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By way of example, examination tests may include:

Theoretical questions on:

• demand and supply, cost structure in the short and long run;

• purposes and tools of management accounting;

• definitions and classifications of the main cost types;

• principles of operations and supply chain management (lean production, just‑in‑time, bullwhip effect).

Numerical exercises on:

• calculation of the break‑even point and profitability analysis;

• determination of first‑ and second‑level contribution margin;

• application of full costing and direct costing methods to business cases.