Operations and Supply Chain Management, 17th Edition

Cover
Title
Copyright
Dedication
Brief Contents
Contents
Preface
Acknowledgments
Note to Instructors
Walkthrough
Section One: Strategy, Products, and Capacity
   1 Introduction
      Introduction—The Elements of OSCM
         What Is Operations and Supply Chain Management?
         Distinguishing Operations versus Supply Chain Processes
         Categorizing Operations and Supply Chain Processes
         Differences between Services and Goods
         The Goods–Services Continuum
         Product–Service Bundling
      Careers in OSCM
      The Major Concepts that Define the OSCM Field
         Current Issues in Operations and Supply Chain Management
      Efficiency, Effectiveness, and Value
      Concept Connections
      Discussion Questions
      Objective Questions
      Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures
      Practice Exam
   2 Strategy
      What Is Operations and Supply Chain Strategy?
         Competitive Dimensions
         The Notion of Trade-Offs
         Order Winners and Order Qualifiers: The Marketing–Operations Link
      Strategies Are Implemented Using Operations and Supply Chain Activities—IKEA’s Strategy
      Assessing the Risk Associated with Operations and Supply Chain Strategies
         Risk Management Framework
      Productivity Measurement
      A Sustainable Operations and Supply Chain Strategy
      Concept Connections
      Solved Problem
      Discussion Questions
      Objective Questions
      Case: The Tao of Timbuk2
      Analytics Exercise: The Carbon Footprint Quiz (LO2-5)
      Practice Exam
   3 Design of Products and Services
      Product Design
         Product Development Process
      Product Design Criteria
         Designing for the Customer
         Value Analysis/Value Engineering
         Designing Products for Manufacture and Assembly
      Designing Service Products
      Economic Analysis of Product Development Projects
         Build a Base-Case Financial Model
         Sensitivity Analysis to Understand Project Trade-Offs
      Measuring Product Development Performance
      Concept Connections
      Solved Problem
      Discussion Questions
      Objective Questions
      Case: IKEA: Design and Pricing
      Case: Comparison of Competing Products
      Practice Exam
   4 Projects
      What Is Project Management?
         Organizing the Project Team
         Pure Project
         Functional Project
         Matrix Project
         Organizing Project Tasks
      Managing Projects
         Earned Value Management (EVM)
      Network-Planning Models
         Critical Path Method (CPM)
         CPM with Three Activity Time Estimates
         Time–Cost Models and Project Crashing
      Project Management Information Systems
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Product Design Project
      Practice Exam
   5 Strategic Capacity Management
      Capacity Management in Operations and Supply Chain Management
         Capacity Planning Concepts
         Economies and Diseconomies of Scale
         Capacity Focus
         Capacity Flexibility
      Capacity Planning
         Considerations in Changing Capacity
         Determining Capacity Requirements
      Using Decision Trees to Evaluate Capacity Alternatives
      Planning Service Capacity
         Capacity Planning in Services versus Manufacturing
         Capacity Utilization and Service Quality
      Concept Connections
      Solved Problem
      Discussion Questions
      Objective Questions
      Case: Shouldice Hospital—A Cut Above
      Practice Exam
   5S Investment Analysis
      Investment Analysis
         Concepts and Definitions
         Activity-Based Costing
         The Effects of Taxes
         Choosing among Investment Proposals
         Methods of Ranking Investments
         Sample Problems: Investment Decisions
      Concept Connections
   6 Learning Curves
      What Are Learning Curves?
      How Are Learning Curves Modeled?
         Logarithmic Analysis
         Learning Curve Tables
         Estimating the Learning Percentage
         How Long Does Learning Go On?
      In Practice, How much Learning Occurs?
         Individual Learning
         Organizational Learning
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Tesla’s Model 3 Learning Curve
      Practice Exam
Section Two: Manufacturing and Service Processes
   7 Manufacturing Processes
      Manufacturing Technology plus AI = Innovation
      What Are Manufacturing Processes?
      How Manufacturing Processes Are Organized
         Break-Even Analysis
      Manufacturing Process Flow Design
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Case: Circuit Board Fabricators, Inc.
      Practice Exam
   7S Manufacturing Technology
      Manufacturing Technology
         Technologies in Manufacturing
         Computer-Integrated Manufacturing
      Concept Connections
      Discussion Questions
   8 Facility Layout
      Facility Layout
      Analyzing the Four Most Common Layout Formats
         Workcenters (Job Shops)
         Systematic Layout Planning
         Assembly Lines
         Assembly-Line Design
         Splitting Tasks
         Flexible and U-Shaped Line Layouts
         Mixed-Model Line Balancing
         Cells
         Project Layouts
      Retail Service Layout
         Servicescapes
         Signs, Symbols, and Artifacts
         Office Layout
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Advanced Problems
      Analytics Exercise: Designing a Manufacturing Process
      Practice Exam
   9 Service Processes
      The Nature of Services
         An Operational Classification of Services
      Designing Service Organizations
         Structuring the Service Encounter: The Service-System Design Matrix
         Web Platform Businesses
         Managing Customer-Introduced Variability
         Applying Behavioral Science to Service Encounters
      Service Blueprinting and Fail-Safing
      Three Contrasting Service Designs
         The Production-Line Approach
         The Self-Service Approach
         The Personal-Attention Approach
         Seven Characteristics of a Well-Designed Service System
      Concept Connections
      Discussion Questions
      Objective Questions
      Case: South Beach Pizza: An Exercise in Translating Customer Requirements into Process Design Requirements
      Practice Exam
   9S Health Care
      The Nature of Health Care Operations
         Classification of Hospitals
         Hospital Layout and Care Chains
         Capacity Planning
         Workforce Scheduling
         Quality Management and Process Improvement
         Health Care Supply Chains
         Inventory Management
      Performance Measures
         Performance Dashboards
      Trends in Health Care
      Concept Connections
      Discussion Questions
      Objective Questions
      Case: Managing Patient Wait Times at a Family Clinic
      Practice Exam
   10 Waiting Line Analysis and Simulation
      The Waiting Line Problem
         The Practical View of Waiting Lines
         The Queuing System
      Waiting Line Models
         Approximating Customer Waiting Time
      Simulating Waiting Lines
         Example: A Two-Stage Assembly Line
         Spreadsheet Simulation
         Simulation Programs and Languages
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Case: Community Hospital Evening Operating Room
      Analytics Exercise: Processing Customer Orders
      Practice Exam
   11 Process Design and Analysis
      Process Analysis
         Example: Analyzing a Las Vegas Slot Machine
         Process Flowcharting
      Understanding Processes
         Buffering, Blocking, and Starving
         Make to Stock vs. Make to Order
         Measuring Process Performance
         Production Process Mapping and Little’s Law
      Job Design Decisions
         Behavioral Considerations in Job Design
         Work Measurement and Standards
      Process Analysis Examples
         A Bread-Making Operation
         A Restaurant Operation
         Planning a Transit Bus Operation
         Process Flow Time Reduction
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Case: Runners Edge–Call Center Process Analysis
      Practice Exam
   11S Operations Consulting
      What is Operations Consulting?
         The Management Consulting Industry
         Economics of Consulting Firms
         When Operations Consulting is Needed
      The Operations Consulting Process
         Operations Consulting Tool Kit
         Problem Definition Tools
         Data Gathering
         Data Analysis and Solution Development
         Cost Impact and Payoff Analysis
         Implementation
      Concept Connections
      Discussion Questions
      Objective Questions
      Practice Exam
   12 Quality Management
      Total Quality Management
         Quality Specifications and Quality Costs
         Developing Quality Specifications
         Cost of Quality
      Six Sigma Quality
         Six Sigma Methodology
         Analytical Tools for Six Sigma
         Six Sigma Roles and Responsibilities
         The Shingo System: Fail-Safe Design
      ISO 9000 and ISO 14000
         External Benchmarking for Quality Improvement
      Concept Connections
      Discussion Questions
      Objective Questions
      Case: Tesla’s Quality Challenge
      Practice Exam
   13 Statistical Quality Control
      Statistical Quality Control
         Understanding and Measuring Process Variation
         Measuring Process Capability
      Statistical Process Control Procedures
         Process Control with Attribute Measurements: Using p-Charts
         Process Control with Attribute Measurements: Using c-Charts
         Process Control with Variable Measurements: Using X- and R-Charts
         How to Construct X- and R-Charts
      Acceptance Sampling
         Design of a Single Sampling Plan for Attributes
         Operating Characteristic Curves
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Hot Shot Plastics Company
      Analytics Exercise: Quality Management—Toyota
      Practice Exam
Section Three: Supply Chain Processes
   14 Lean Supply Chains
      Lean Manufacturing Practices and the COVID-19 Pandemic
      Lean Production
         The Toyota Production System
      Lean Supply Chains
      Value Stream Mapping
      Lean Supply Chain Design Principles
         Lean Concepts
         Lean Production Schedules
         Lean Supply Chains
      Lean Services
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Case: Quality Parts Company
      Case: Value Stream Mapping
      Case: Pro Fishing Boats—A Value Stream Mapping Exercise
      Practice Exam
   15 Logistics and Distribution Management
      Logistics
      Decisions Related to Logistics
         Transportation Modes
         Distribution Facilities
         Distribution Facility Processes
      Locating Logistics Facilities
         Plant Location Methods
         Centroid Method
         Locating Service Facilities
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Distribution Center Location
      Practice Exam
   16 Global Sourcing and Procurement
      Strategic Sourcing
         The Bullwhip Effect
         Supply Chain Uncertainty Framework
      Outsourcing
         Logistics Outsourcing
         Framework for Supplier Relationships
      Green Sourcing
      Total Cost of Ownership
      Measuring Sourcing Performance
      Concept Connections
      Discussion Questions
      Objective Questions
      Analytics Exercise: Global Sourcing Decisions—Grainger: Reengineering the China/U.S. Supply Chain
      Practice Exam
Section Four: Supply and Demand Planning and Control
   17 The Internet of Things and ERP
      Intelligent Devices Connected through the Internet
      What Is ERP?
         Consistent Numbers
         Software Imperatives
         Routine Decision Making
      How ERP Connects the Functional Units
         Finance
         Manufacturing and Logistics
         Sales and Marketing
         Human Resources
         Customized Software
         Data Integration
      How Supply Chain Planning and Control Fits within ERP
         Simplified Example
         SAP Supply Chain Management
         SAP Supply Chain Execution
         SAP Supply Chain Collaboration
         SAP Supply Chain Coordination
      Performance Metrics to Evaluate Integrated System Effectiveness
         The “Functional Silo” Approach
      Concept Connections
      Discussion Questions
      Objective Questions
      Practice Exam
   18 Forecasting
      Forecasting in Operations and Supply Chain Management
      Quantitative Forecasting Models
         Components of Demand
         Time Series Analysis
         Forecast Errors
         Causal Relationship Forecasting
      Qualitative Techniques in Forecasting
         Market Research
         Panel Consensus
         Historical Analogy
         Delphi Method
      Web-Based Forecasting: Collaborative Planning, Forecasting, and Replenishment (CPFR)
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Forecasting Supply Chain Demand—Starbucks Corporation (LO18-2)
      Analytics Exercise: Forecasting Demand at Sebastian River Farms (LO18-2)
      Practice Exam
   19 Sales and Operations Planning
      What Is Sales and Operations Planning?
         An Overview of Sales and Operations Planning Activities
         The Aggregate Operations Plan
      Aggregate Planning Techniques
         A Cut-and-Try Example: The JC Company
         Aggregate Planning Applied to Services: Tucson Parks and Recreation Department
      Yield Management
         Operating Yield Management Systems
      Concept Connections
      Solved Problem
      Discussion Questions
      Objective Questions
      Analytics Exercise: The Pudding Manufacturing Aggregate Plan
      Practice Exam
   19S Linear Programming Using the Excel Solver
      Linear Programming
         The Linear Programming Model
         Linear Programming Using Microsoft Excel
      Concept Connections
      Solved Problem
      Objective Questions
   20 Inventory Management
      Understanding Inventory Management
         Purposes of Inventory
         Inventory Costs
         Independent versus Dependent Demand
      Inventory Control Systems
         A Single-Period Inventory Model
         Multiperiod Inventory Systems
         Fixed–Order Quantity Models
         Fixed–Time Period Models
         Inventory Turn Calculation
         Price-Break Model
      Inventory Planning and Accuracy
         ABC Classification
         Inventory Accuracy and Cycle Counting
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: Inventory Management at Big10Sweaters.com
      Analytics Exercise: Inventory Control at Sebastian River Farms
      Practice Exam
   21 Material Requirements Planning
      Understanding Material Requirements Planning
         Where MRP Can Be Used
         Master Production Scheduling
      Material Requirements Planning System Structure
         Demand for Products
         Bill-of-Materials
         Inventory Records
         MRP Computer Program
      An Example Using MRP
         Forecasting Demand
         Developing a Master Production Schedule
         Bill-of-Materials (Product Structure)
         Inventory Records
         Performing the MRP Calculations
      Lot Sizing in MRP Systems
         Lot-for-Lot
         Economic Order Quantity
         Least Total Cost
         Least Unit Cost
         Choosing the Best Lot Size
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Analytics Exercise: An MRP Explosion—Brunswick Motors
      Practice Exam
   22 Workcenter Scheduling
      Workcenter Scheduling
         The Nature and Importance of Workcenters
         Typical Scheduling and Control Functions
         Objectives of Workcenter Scheduling
         Job Sequencing
      Priority Rules and Techniques
         Scheduling n Jobs on One Machine
         Scheduling n Jobs on Two Machines
         Scheduling a Set Number of Jobs on the Same Number of Machines
         Scheduling n Jobs on m Machines
      Shop-Floor Control
         Gantt Charts
         Tools of Shop-Floor Control
         Principles of Workcenter Scheduling
      Personnel Scheduling in Services
         Scheduling Daily Work Times
         Scheduling Hourly Work Times
      Concept Connections
      Solved Problems
      Discussion Questions
      Objective Questions
      Case: Keep Patients Waiting? Not in My Office
      Practice Exam
   22S Theory of Constraints
      Eli Goldratt’s Theory of Constraints
         The Goal of the Firm
         Performance Measurements
         Unbalanced Capacity
      Bottlenecks, Capacity-Constrained Resources, and Synchronous Manufacturing
         Basic Manufacturing Building Blocks
         Methods for Synchronous Control
      Comparing Synchronous Manufacturing (TOC) to Traditional Approaches
         MRP and JIT
         Relationship with Other Functional Areas
      Theory of Constraints—Problems About What to Produce
      Concept Connections
      Solved Problem
      Discussion Questions
      Objective Questions
      Practice Exam
Appendices
   A Interest Tables
   B Negative Exponential Distribution: Values of e–x
   C Areas of the Cumulative Standard Normal Distribution
   D Uniformly Distributed Random Digits
   E Answers to Selected Objective Questions
Index