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
 1 Introduction to operations and supply Chain management......Page 18
  Introduction......Page 19
  1.1 Why Study Operations and Supply Chain Management?......Page 20
   Operations Management......Page 21
   Supply Chain Management......Page 23
  1.2 Important Trends......Page 26
   Relationship Management......Page 27
   Professional Organizations......Page 28
   Cross-Functional and Interorganizational Linkages......Page 29
  1.4 Purpose and Organization of This Book......Page 30
  Key Terms......Page 31
  Case Study......Page 32
  References......Page 33
 2 Operations and supply Chain strategies......Page 35
  2.2 Strategy......Page 37
  2.3 Operations and Supply Chain Strategies......Page 40
   Customer Value......Page 41
   Four Performance Dimensions......Page 42
   Order Winners and Order Qualifiers......Page 44
   Stages of Alignment with the Business Strategy......Page 45
   Core Competencies in Operations and Supply Chains......Page 46
  Key Formula......Page 48
  Solved Problem......Page 49
  Discussion Questions......Page 50
  Problems......Page 51
  Case Study......Page 52
  References......Page 53
 3 Process Choice and layout decisions in manufacturing and services......Page 54
  Introduction......Page 55
  3.1 Manufacturing Processes......Page 56
   Production Lines and Continuous Flow Manufacturing......Page 57
   Job Shops......Page 58
   Hybrid Manufacturing Processes......Page 59
   Linking Manufacturing Processes across the Supply Chain......Page 60
  3.2 Product Customization within the Supply Chain......Page 61
   The Customization Point......Page 62
  3.3 Service Processes......Page 64
   Service Packages......Page 65
   Service Customization......Page 66
   Customer Contact......Page 67
   Service Positioning......Page 70
   Services within the Supply Chain......Page 71
   Line Balancing......Page 72
   Assigning Department Locations in Functional Layouts......Page 76
  Chapter Summary......Page 79
  Solved Problem......Page 80
  Problems......Page 83
  Case Study......Page 86
  References......Page 87
 4 Business Processes......Page 88
  Introduction......Page 89
   Improving Business Processes......Page 90
   Process Maps......Page 93
   Swim Lane Process Maps......Page 96
   Productivity......Page 98
   Efficiency......Page 100
   Cycle Time......Page 101
   Benchmarking......Page 102
   The Six Sigma Methodology......Page 103
   Continuous Improvement Tools......Page 104
   How Standardized Should Processes Be?......Page 112
   The SCOR Model......Page 113
  Key Formulas......Page 115
  Solved Problem......Page 116
  Problems......Page 118
  Case Study......Page 120
  References......Page 121
 5 Managing Quality......Page 122
  5.1 Quality Defined......Page 124
  5.2 Total Cost of Quality......Page 127
  5.3 Total Quality Management......Page 129
   TQM and the Six Sigma Methodology......Page 131
   Process Capability......Page 132
   Six Sigma Quality......Page 134
   Control Charts......Page 135
   Acceptance Sampling......Page 141
   Taguchi’s Quality Loss Function......Page 143
   ISO 9000 Family......Page 144
  Key Formulas......Page 145
  Key Terms......Page 147
  Solved Problem......Page 148
  Discussion Questions......Page 149
  Problems......Page 150
  Case Study......Page 154
  References......Page 155
 6 Managing Capacity......Page 156
  6.1 Capacity......Page 157
   Measures of Capacity......Page 158
  6.2 Three Common Capacity Strategies......Page 159
   Cost......Page 161
   Expected Value......Page 164
   Decision Trees......Page 165
   Break-Even Analysis......Page 167
   Learning Curves......Page 168
   Other Considerations......Page 171
   The Theory of Constraints......Page 172
   Waiting Line Theory......Page 175
   Little’s Law......Page 179
  Key Formulas......Page 181
  Using Excel in Capacity Management......Page 183
  Solved Problem......Page 184
  Problems......Page 185
  References......Page 189
 6s Advanced Waiting line theory and simulation modeling......Page 190
  6S.1 Alternative Waiting Lines......Page 191
   Waiting Line Formulas for Three Different Environments......Page 192
  6S.1 Simulation Modeling......Page 196
   Monte Carlo Simulation......Page 197
   Building and Evaluating Simulation Models with SimQuick......Page 199
  Supplement Summary......Page 202
  References......Page 203
 7 Supply management......Page 204
  Introduction......Page 205
   Financial Impact......Page 206
   Performance Impact......Page 209
   Step 1: Assess Opportunities......Page 210
   Step 2: Profile Internally and Externally......Page 211
   Step 3: Develop the Sourcing Strategy......Page 214
   Step 4: Screen Suppliers and Create Selection Criteria......Page 220
   Step 5: Conduct Supplier Selection......Page 221
   Step 6: Negotiate and Implement Agreements......Page 223
   Receipt and Inspection......Page 225
   Sustainable Supply......Page 226
   Supply Chain Disruptions......Page 227
  Key Terms......Page 228
  Solved Problem......Page 229
  Problems......Page 230
  Case Study......Page 232
  References......Page 233
 8 Logistics......Page 234
  8.1 Why Logistics is Critical......Page 236
   Transportation......Page 237
   Selecting a Transportation Mode......Page 238
   Multimodal Solutions......Page 239
   Warehousing......Page 240
   Logistics Information Systems......Page 243
   Material Handling and Packaging......Page 245
   Owning versus Outsourcing......Page 246
   Measuring Logistics Performance......Page 248
   Landed Costs......Page 249
   Reverse Logistics Systems......Page 250
   Weighted Center of Gravity Method......Page 251
   The Assignment Problem......Page 253
  Chapter Summary......Page 258
  Key Terms......Page 259
  Solved Problem......Page 260
  Problems......Page 261
  Case Study......Page 264
  References......Page 265
 9 Forecasting......Page 266
  Introduction......Page 267
   Price Forecasts......Page 268
  9.2 Laws of Forecasting......Page 269
  9.3 Selecting a Forecasting Method......Page 270
  9.4 Qualitative Forecasting Methods......Page 271
  9.5 Time Series Forecasting Models......Page 272
   Last Period......Page 273
   Moving Average......Page 274
   Exponential Smoothing......Page 276
   Adjusted Exponential Smoothing......Page 279
   Linear Regression......Page 280
   Seasonal Adjustments......Page 284
   Linear Regression......Page 288
   Multiple Regression......Page 290
  9.7 Measures of Forecast Accuracy......Page 293
  9.9 Collaborative Planning, Forecasting, and Replenishment (CPFR)......Page 295
  Key Formulas......Page 300
  Solved Problem......Page 302
  Problems......Page 305
  Case Study......Page 309
  References......Page 310
 10 Sales and operations Planning (aggregate Planning)......Page 311
  10.1 S&OP in the Planning Cycle......Page 312
  10.2 Major Approaches to S&OP......Page 314
   Top-Down Planning......Page 315
   Level, Chase, and Mixed Production Plans......Page 317
   Bottom-Up Planning......Page 321
   Cash Flow Analysis......Page 323
   Choosing between Alternative Plans......Page 325
   Rolling Planning Horizons......Page 326
   Implementing S&OP in an Organization......Page 327
   Making Sales Match Capacity......Page 328
   Making Capacity Match Sales......Page 329
  10.5 Linking S&OP throughout the Supply Chain......Page 330
  10.6 Applying Optimization Modeling to S&OP......Page 331
  Key Formulas......Page 334
  Solved Problem......Page 335
  Problems......Page 336
  Case Study......Page 341
  References......Page 342
 11 Managing inventory throughout the supply Chain......Page 343
  Introduction......Page 345
   Inventory Types......Page 346
   Inventory Drivers......Page 348
  11.2 Periodic Review Systems......Page 350
   Restocking Levels......Page 351
  11.3 Continuous Review Systems......Page 352
   The Economic Order Quantity (EOQ)......Page 353
   Reorder Points and Safety Stock......Page 355
   Quantity Discounts......Page 357
  11.4 Single-Period Inventory Systems......Page 359
   Target Service Level......Page 360
   Target Stocking Point......Page 361
   The Bullwhip Effect......Page 363
   Inventory Positioning......Page 364
   Transportation, Packaging, and Material Handling Considerations......Page 365
  Chapter Summary......Page 366
  Key Formulas......Page 367
  Using Excel in Inventory Management......Page 368
  Discussion Questions......Page 369
  Problems......Page 370
  Case Study......Page 373
  References......Page 374
 12 Managing Production across the supply Chain......Page 375
  Introduction......Page 376
  12.1 Master Scheduling......Page 377
   The Master Schedule Record......Page 378
   Using the Master Schedule......Page 383
  12.2 Material Requirements Planning......Page 384
   The MRP Record......Page 386
   Special Considerations in MRP......Page 391
   Job Sequencing......Page 393
   Monitoring and Tracking Technologies......Page 394
   Distribution Requirements Planning......Page 395
  Chapter Summary......Page 398
  Key Terms......Page 400
  Discussion Questions......Page 401
  Problems......Page 402
  References......Page 409
 12s Supply Chain information systems......Page 410
   Differences across Organizational Levels......Page 411
  12S.2 Supply Chain Information Systems......Page 413
  12S.3 Trends to Watch......Page 415
   Cloud Computing......Page 416
  Discussion Questions......Page 417
  References......Page 418
 13 Jit/Lean Production......Page 419
  Introduction......Page 421
  13.1 The Lean Perspective on Waste......Page 422
  13.2 The Lean Perspective on Inventory......Page 423
  13.3 Recent Developments in Lean Thinking......Page 424
  13.4 Kanban Systems......Page 425
   Controlling Inventory Levels Using Kanbans......Page 430
   Synchronizing the Supply Chain Using Kanbans......Page 432
   Using MRP and Kanban Together......Page 433
  Key Formula......Page 434
  Solved Problem......Page 435
  Problems......Page 436
  Case Study......Page 437
  References......Page 439
 14 Managing Projects......Page 440
  Introduction......Page 441
  14.1 The Growing Importance of Project Management......Page 442
   Project Definition Phase......Page 443
   Postcompletion Phase......Page 444
   Gantt Charts......Page 445
   Constructing a Network Diagram......Page 447
   Crashing a Project......Page 451
  14.4 Project Management Software......Page 453
  Key Formulas......Page 456
  Solved Problem......Page 457
  Discussion Questions......Page 458
  Problems......Page 459
  References......Page 461
 15 Developing Products and services......Page 462
   Four Reasons for Developing New Products and Services......Page 464
  15.1 Operations and Supply Chain Perspectives on Design......Page 465
   Production Volumes......Page 466
   Match with Existing Capabilities......Page 467
   A Model of the Development Process......Page 468
  15.3 Organizational Roles in Product and Service Development......Page 470
   Designers......Page 471
   Suppliers......Page 472
   DMADV (Define–Measure–Analyze– Design–Verify)......Page 473
   Quality Function Deployment (QFD)......Page 474
   The “Design for …” Approaches......Page 475
   Target Costing and Value Analysis......Page 476
  Key Terms......Page 477
  Case Study......Page 478
  References......Page 479
Appendices......Page 480
Glossary......Page 486
Index......Page 498