Operations and Supply Management: The Core

Tittle
Contents
S E C T I O N O N E STRATEGY AND SUSTAINABILITY
	1 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
		Quick Supply Chains Enable Retailers to Get Fashions to Market Quickly
			What Is Operations and Supply Management?
			Operations and Supply Processes
			Differences between Services and Goods
				The Goods–Services Continuum
				Servitization Strategies
			Efficiency, Effectiveness, and Value
			Careers in Operations and Supply Management
				Chief Operating Officer
			Historical Development of Operations and Supply Management
			Current Issues in Operations and Supply Management
			Key Terms 19 Review and Discussion Questions 19 Internet Exercise: Harley-Davidson Motorcycles
			Super Quiz 20 Selected Bibliography 20 Footnotes
	2 STRATEGY AND SUSTAINABILITY
		How IKEA Designs Its Sexy Prices
		A Sustainable Strategy
		What Is Operations and Supply Strategy?
			Competitive Dimensions
			The Notion of Trade-Offs
			Order Winners and Order Qualifiers: The Marketing–Operations Link
		Strategic Fit: Fitting Operational Activities to Strategy
		Productivity Measurement
		How Does Wall Street Evaluate Operations Performance?
		Summary
		Key Terms 35 Solved Problem 35 Review and Discussion Questions 35 Problems
		Case: The Tao of Timbuk2 38 Selected Bibliography 39 Super Quiz
		Footnote
S E C T I O N T W O MANUFACTURING AND SERVICE PROCESSES
	3 STRATEGIC CAPACITY MANAGEMENT
		Shouldice Hospital: Hernia Surgery Innovation
			Capacity Management in Operations
			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 Service versus Manufacturing
				Capacity Utilization and Service Quality
			Summary
			Key Terms 57 Formula Review 57 Solved Problem 57 Review and Discussion Questions 58 Problems 59 Case: Shouldice Hospital—A Cut Above 60 Super Quiz
			Selected Bibliography
	4 PRODUCTION PROCESSES
		Toshiba: Producer of the First Notebook Computer
		Production Processes
			Production Process Mapping and Little’s Law
		How Production Processes Are Organized
		Break-Even Analysis
		Designing a Production System
			Project Layout
			Workcenters
			Manufacturing Cell
			Assembly Line and Continuous Process Layouts
		Assembly-Line Design
			Splitting Tasks
			Flexible and U-Shaped Line Layouts
			Mixed-Model Line Balancing
		Summary
		Notebook Computer Line 93 Super Quiz 96 Selected Bibliography
	5 SERVICE PROCESSES
		Supply Chain Services at DHL
		An Operational Classification of Services
		Designing Service Organizations
		Structuring the Service Encounter: Service-System Design Matrix
			Virtual Service: The New Role of the Customer
		Service Blueprinting and Fail-Safing
		Economics of the Waiting Line Problem
			The Practical View of Waiting Lines
		The Queuing System
			Customer Arrivals
			Distribution of Arrivals
			The Queuing System: Factors
			Exiting the Queuing System
		Waiting Line Models
		Computer Simulation of Waiting Lines
		Summary
		Key Terms 123 Formula Review 123 Solved Problems 124 Review and Discussion Questions 125 Problems 125 Case: Community Hospital Evening Operating Room 130 Super Quiz 130 Selected Bibliography 131 Footnote
	6 QUALITY MANAGEMENT AND SIX SIGMA
		GE Six-Sigma Supply Chain Processes
		Total Quality Management
		Quality Specifications and Quality Costs
			Developing Quality Specifications
			Cost of Quality
		ISO 9000 and ISO 14000
		Six-Sigma Quality
			Six-Sigma Methodology
			Analytical Tools for Six Sigma
		Statistical Quality Control
			Variation Around Us
			Process Capability
		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
			Summary
			Key Terms 166 Formula Review 167 Solved Problems 168 Review and Discussion Questions 169 Problems 170 Advanced Problem 174 Case: Hank Kolb, Director of Quality Assurance 174 Footnotes 176 Super Quiz 176 Selected Bibliography
	7 PROJECTS
		National Aeronautics and Space Administration’s Constellation Program May Land Men on the Moon By 2020
		What Is Project Management?
		Structuring Projects
			Pure Project
			Functional Project
			Matrix Project
		Work Breakdown Structure
		Project Control Charts
			Earned Value Management (EVM)
		Network-Planning Models
			Critical Path Method (CPM)
			CPM with Three Activity Time Estimates
			Time–Cost Models and Project Crashing
		Managing Resources
			Tracking Progress
		Summary
		Key Terms 205 Formula Review 206 Solved Problems 207 Review and Discussion Questions 211 Problems 211 Advanced Problem 217 Case: Cell Phone Design Project 217 Super Quiz 218 Selected Bibliography 219 Footnote
S E C T I O N T H R E E SUPPLY CHAIN PROCESSES
	8 GLOBAL SOURCING AND PROCUREMENT
		The World Is Flat
			Flattener 5: Outsourcing
				Flattener 6: Offshoring
			Strategic Sourcing
				The Bullwhip Effect
			Outsourcing
			Green Sourcing
			Total Cost of Ownership
			Measuring Sourcing Performance
		Summary
		Key Terms 243 Formula Review
		Review and Discussion Questions
		Problems 244 Case: Pepe Jeans
		Footnotes 247 Super Quiz 247 Selected Bibliography
	9 LOCATION, LOGISTICS, AND DISTRIBUTION
		FedEx: A Leading Global Logistics Company
		Logistics
		Decisions Related to Logistics
			Cross-Docking
		Issues in Facility Location
		Plant Location Methods
			Factor-Rating Systems
			Transportation Method of Linear Programming
			Centroid Method
		Locating Service Facilities
		Summary
		Key Terms 264 Formula Review 264 Solved Problem 264 Review and Discussion Questions 265 Problems 265 Case: Applichem—The Transportation Problem 267 Footnote 268 Super Quiz 268 Selected Bibliography
	10 LEAN AND SUSTAINABLE SUPPLY CHAINS
		Green Is the New Black
			Survey Suggests that Enviro-Conscious Manufacturers are the Best Risk for Investors
		Lean Production
		Lean Logic
		The Toyota Production System
			Elimination of Waste
			Respect for People
		Lean Supply Chains
		Value Stream Mapping
		Lean Supply Chain Design Principles
			Lean Layouts
			Lean Production Schedules
			Lean Supply Chains
		Lean Services
		Summary
		Key Terms 291 Formula Review
		Solved Problem 1 292 Solved Problem 2
		Review and Discussion Questions
		Problems 296 Case: Quality Parts Company 297 Case: Value Stream Mapping 298 Case: Pro Fishing Boats—A Value Stream Mapping Exercise
		Super Quiz 300 Selected Bibliography
		Footnotes
S E C T I O N F O U R SUPPLY AND DEMAND PLANNING
	11 DEMAND MANAGEMENT AND FORECASTING
		Walmart’s Data Warehouse
			Demand Management
			Types of Forecasting
			Components of Demand
			Time Series Analysis
				Linear Regression Analysis
				Decomposition of a Time Series
				Simple Moving Average
				Weighted Moving Average
				Exponential Smoothing
				Forecast Errors
				Sources of Error
				Measurement of Error
			Causal Relationship Forecasting
				Multiple Regression Analysis
			Qualitative Techniques in Forecasting
				Market Research
				Panel Consensus
				Historical Analogy
				Delphi Method
			Web-Based Forecasting: Collaborative Planning, Forecasting, and Replenishment (CPFR)
			SUMMARY
			Key Terms 337 Formula Review 338 Solved Problems 339 Review and Discussion Questions 343 Problems 343 Case: Altavox Electronics 352 Super Quiz 352 Selected Bibliography 353 Footnotes
	12 SALES AND OPERATIONS PLANNING
		What Is Sales and Operations Planning?
		Overview of Sales and Operations Planning Activities
		The Aggregate Operations Plan
			Production Planning Environment
			Relevant Costs
		Aggregate Planning Techniques
			A Cut-and-Try Example: The JC Company
			Aggregate Planning Applied to Services: Tucson Parks and Recreation Department
		Level Scheduling
		Yield Management
			Operating Yield Management Systems
		Summary
		Key Terms 374 Solved Problem 375 Review and Discussion Questions 378 Problems
		Case: Bradford Manufacturing—Planning Plant Production 381 Super Quiz 382 Selected Bibliography 383 Footnotes
	13 INVENTORY CONTROL
		Direct to Store—The UPS Vision
			The UPS Direct Approach
		Definition of Inventory
		Purposes of Inventory
		Inventory Costs
		Independent versus Dependent Demand
		Inventory Systems
			A Single-Period Inventory Model
			Multiperiod Inventory Systems
		Fixed–Order Quantity Models
			Establishing Safety Stock Levels
			Fixed–Order Quantity Model with Safety Stock
		Fixed–Time Period Models
			Fixed–Time Period Model with Safety Stock
		Inventory Control and Supply Chain Management
		Price-Break Models
		ABC Inventory Planning
			ABC Classification
		Inventory Accuracy and Cycle Counting
		Summary
		Key Terms 415 Formula Review 415 Solved Problems 417 Review and Discussion Questions 418 Problems 419 Case: Hewlett-Packard—Supplying the DeskJet Printer in Europe 425 Super Quiz
		Selected Bibliography 429 Footnotes
	14 MATERIAL REQUIREMENTS PLANNING
		From Push to Pull
		Master Production Scheduling
			Time Fences
		Where MRP Can Be Used
		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
		Summary
		Key Terms 451 Solved Problems
		Review and Discussion Questions
		Problems 453 Case: Brunswick Motors, Inc.—An Introductory Case for MRP
		Super Quiz 458 Selected Bibliography
APPENDIX A Linear Programming Using the Excel Solver
APPENDIX B Learning Curves
APPENDIX C Answers to Selected Problems
APPENDIX D Present Value Table
APPENDIX E Negative Exponential Distribution: Values of e–x1
APPENDIX F Areas of the Cumulative Standard Normal Distribution
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