Introduction to operations and supply chain management

Cover......Page 1
Title Page......Page 2
Copyright Page......Page 3
About the Authors......Page 5
Brief Contents......Page 6
Contents......Page 7
Preface......Page 12
Acknowledgments......Page 19
 1. Introduction to Operations and Supply Chain Management......Page 22
  Introduction......Page 23
  1.1. Why Study Operations and Supply Chain Management?......Page 24
   Operations Management......Page 25
   Supply Chain Management......Page 27
  1.2. Important Trends......Page 30
   People......Page 31
  1.3. Operations and Supply Chain Management and You......Page 32
   Professional Organizations......Page 33
   Cross-Functional and Interorganizational Linkages......Page 34
   Critical Thinking......Page 35
  1.5. Purpose and Organization of This Book......Page 36
   Problems......Page 38
   Case Study......Page 39
   References......Page 40
 2. Operations and Supply Chain Strategies......Page 41
  2.2. Strategy......Page 43
  2.3. Operations and Supply Chain Strategies......Page 46
   Customer Value......Page 47
   Four Performance Dimensions......Page 48
   Order Winners and Order Qualifiers......Page 50
   Stages of Alignment with the Business Strategy......Page 51
   Core Competencies in Operations and Supply Chains......Page 53
  Chapter Summary......Page 54
  Solved Problem......Page 55
  Problems......Page 57
  Case Study......Page 59
  References......Page 60
 3. Process Choice and Layout Decisions in Manufacturing and Services......Page 61
  Introduction......Page 62
  3.1. Manufacturing Processes......Page 63
   Production Lines and Continuous Flow Manufacturing......Page 64
   Job Shops......Page 65
   Hybrid Manufacturing Processes......Page 66
   3D Printing......Page 67
   The Product-Process Matrix......Page 68
   The Customization Point......Page 69
  3.3. Service Processes......Page 72
   Service Customization......Page 73
   Customer Contact......Page 74
   Service Positioning......Page 77
   Services within the Supply Chain......Page 78
  3.4. Layout Decision Models......Page 79
   Line Balancing......Page 80
   Assigning DePartment Locations in Functional Layouts......Page 83
  Key Formulas......Page 87
  Solved Problem......Page 88
  Discussion Questions......Page 90
  Problems......Page 91
  Case Study......Page 93
  References......Page 94
 4. Business Processes......Page 95
  Introduction......Page 96
   Improving Business Processes......Page 97
   Process Maps......Page 100
   Swim Lane Process Maps......Page 103
   Productivity......Page 105
   Efficiency......Page 107
   Cycle Time......Page 108
   Benchmarking......Page 109
   The Six Sigma Methodology......Page 110
   Continuous Improvement Tools......Page 112
   How Standardized Should Processes Be?......Page 119
   The SCOR Model......Page 120
  Key Formulas......Page 122
  Solved Problem......Page 123
  Problems......Page 125
  Case Study......Page 127
  References......Page 128
 5. Managing Quality......Page 129
  5.1. Quality Defined......Page 131
  5.2. Total Cost of Quality......Page 134
  5.3. Total Quality Management......Page 135
   Process Capability......Page 138
   Six Sigma Quality......Page 141
   Control Charts......Page 142
   Acceptance Sampling......Page 148
   Taguchi’s Quality Loss Function......Page 150
   ISO 9000 Family......Page 151
  Key Formulas......Page 152
  Key Terms......Page 154
  Solved Problem......Page 155
  Discussion Questions......Page 156
  Problems......Page 157
  Case Study......Page 161
  References......Page 162
 6. Managing Capacity......Page 163
  Introduction......Page 164
   Measures of Capacity......Page 165
  6.2. Three Common Capacity Strategies......Page 166
   Cost......Page 167
   Expected Value......Page 170
   Decision Trees......Page 171
   Break-Even Analysis......Page 173
   Learning Curves......Page 174
   Other Considerations......Page 177
   The Theory of Constraints......Page 178
   Waiting Line Theory......Page 181
   Little’s Law......Page 185
  Key Formulas......Page 187
  Using Excel in Capacity Management......Page 189
  Solved Problem......Page 190
  Problems......Page 191
  References......Page 195
 6S. Advanced Waiting Line Theory and Simulation Modeling......Page 196
  6S.1. Alternative Waiting Lines......Page 197
   Waiting Line Formulas for Three Different Environments......Page 198
  6S.2. Simulation Modeling......Page 202
   Monte Carlo Simulation......Page 203
   Building and Evaluating Simulation Models with SimQuick......Page 205
  Supplement Summary......Page 208
  References......Page 209
 7. Supply Management......Page 210
  Introduction......Page 211
   Global Sourcing......Page 212
   Financial Impact......Page 213
   Performance Impact......Page 215
   Step 1: Assess Opportunities......Page 216
   Step 2: Profile Internally and Externally......Page 218
   Step 3: Develop the Sourcing Strategy......Page 221
   Step 4: Screen Suppliers and Create Selection Criteria......Page 228
   Step 5: Conduct Supplier Selection......Page 229
   Step 6: Negotiate and Implement Agreements......Page 231
   Receipt and Inspection......Page 233
   Sustainable Supply......Page 234
   Supply Chain Disruptions......Page 235
  Key Terms......Page 236
  Solved Problem......Page 237
  Problems......Page 238
  Case Study......Page 240
  References......Page 241
 8. Logistics......Page 242
  8.1. Why Logistics Is Critical......Page 244
   Transportation......Page 246
   Selecting a Transportation Mode......Page 247
   Multimodal Solutions......Page 248
   Warehousing......Page 249
   Logistics Information Systems......Page 252
   Material Handling and Packaging......Page 254
  8.3. Logistics Strategy......Page 255
   Owning versus Outsourcing......Page 256
   Measuring Logistics Performance......Page 257
   Landed Costs......Page 258
   Reverse Logistics Systems......Page 259
   Weighted Center of Gravity Method......Page 260
   The Assignment Problem......Page 262
  Chapter Summary......Page 267
  Key Terms......Page 268
  Solved Problem......Page 269
  Discussion Questions......Page 270
  Problems......Page 271
  Case Study......Page 273
  References......Page 274
 9. Forecasting......Page 275
  Introduction......Page 276
   Price Forecasts......Page 277
  9.2. Laws of Forecasting......Page 278
  9.3. Selecting a Forecasting Method......Page 279
  9.4. Qualitative Forecasting Methods......Page 280
  9.5. Time Series Forecasting Models......Page 281
   Last Period......Page 282
   Moving Average......Page 283
   Exponential Smoothing......Page 285
   Adjusted Exponential Smoothing......Page 288
   Linear Regression......Page 289
   Seasonal Adjustments......Page 293
   Linear Regression......Page 297
   Multiple Regression......Page 299
  9.7. Measures of Forecast Accuracy......Page 302
  9.9. Collaborative Planning, Forecasting, and Replenishment (CPFR)......Page 304
  Key Formulas......Page 309
  Solved Problem......Page 311
  Problems......Page 314
  Case Study......Page 318
  References......Page 319
 10. Sales and Operations Planning (Aggregate Planning)......Page 320
  10.1. S&OP in the Planning Cycle......Page 321
  10.2. Major Approaches to S&OP......Page 323
   Top-Down Planning......Page 324
   Level, Chase, and Mixed Production Plans......Page 326
   Bottom-Up Planning......Page 330
   Cash Flow Analysis......Page 332
   Choosing between Alternative Plans......Page 334
   Rolling Planning Horizons......Page 335
   Implementing S&OP in an Organization......Page 336
   Making Sales Match Capacity......Page 337
   Making Capacity Match Sales......Page 339
  10.6. Applying Optimization Modeling to S&OP......Page 340
  Solved Problem......Page 344
  Problems......Page 346
  Case Study......Page 350
  References......Page 351
 11. Managing Inventory throughout the Supply Chain......Page 352
  Introduction......Page 354
   Inventory Types......Page 355
   Inventory Drivers......Page 357
  11.2. Periodic Review Systems......Page 359
   Restocking Levels......Page 360
  11.3. Continuous Review Systems......Page 361
   The Economic Order Quantity (EOQ)......Page 362
   Reorder Points and Safety Stock......Page 364
   Quantity Discounts......Page 367
   Target Service Level......Page 369
   Target Stocking Point......Page 371
   The Bullwhip Effect......Page 373
   Inventory Positioning......Page 374
   Transportation, Packaging, and Material Handling Considerations......Page 375
  Key Formulas......Page 376
  Using Excel in Inventory Management......Page 377
  Solved Problem......Page 378
  Problems......Page 379
  Case Study......Page 383
  References......Page 384
 12. Managing Production across the Supply Chain......Page 385
  Introduction......Page 386
  12.1. Master Scheduling......Page 387
   The Master Schedule Record......Page 388
   Using the Master Schedule......Page 393
  12.2. Material Requirements Planning......Page 394
   The MRP Record......Page 396
   Special Considerations in MRP......Page 401
   Job Sequencing......Page 403
   Monitoring and Tracking Technologies......Page 404
   Distribution Requirements Planning......Page 405
  Chapter Summary......Page 408
  Key Terms......Page 410
  Discussion Questions......Page 411
  Problems......Page 412
  References......Page 419
 12S. Supply Chain Information Systems......Page 420
  Introduction......Page 421
   Differences across Organizational Levels......Page 422
  12S.2. Supply Chain Information Systems......Page 423
   Cloud Computing......Page 426
  Supplement Summary......Page 427
  References......Page 428
 13. JIT/Lean Production......Page 429
  Introduction......Page 431
  13.1. The Lean Perspective on Waste......Page 432
  13.2. The Lean Perspective on Inventory......Page 433
  13.3. Recent Developments in Lean Thinking......Page 434
  13.4. Kanban Systems......Page 435
   Controlling Inventory Levels Using Kanbans......Page 440
   Synchronizing the Supply Chain Using Kanbans......Page 442
   Using MRP and Kanban Together......Page 443
  Key Formula......Page 444
  Solved Problem......Page 445
  Problems......Page 446
  Case Study......Page 447
  References......Page 449
 14. Managing Projects......Page 450
  Introduction......Page 451
  14.1. The Growing Importance of Project Management......Page 452
   Project Definition Phase......Page 453
   Postcompletion Phase......Page 454
   Gantt Charts......Page 455
   Constructing a Network Diagram......Page 457
   Crashing a Project......Page 461
  14.4. Project Management Software......Page 463
  Key Formulas......Page 466
  Solved Problem......Page 467
  Discussion Questions......Page 468
  Problems......Page 469
  References......Page 471
 15. Developing Products and Services......Page 472
   Four Reasons for Developing New Products and Services......Page 474
  15.1. Operations and Supply Chain Perspectives on Design......Page 475
   Product Costs......Page 476
   Match with Existing Capabilities......Page 477
   A Model of the Development Process......Page 478
   Sequential Development versus Concurrent Engineering......Page 480
   Finance......Page 481
   Purchasing......Page 482
   DMADV (Define–Measure–Analyze–Design– Verify)......Page 483
   Quality Function Deployment (QFD)......Page 484
   The “Design for . . . ” Approaches......Page 485
  Chapter Summary......Page 487
  Case Study......Page 488
  References......Page 489
Appendices......Page 490
Glossary......Page 496
Index......Page 508
Back Cover......Page 516