Operations management : processes and supply chains

Cover
Title Page
Copyright
Dedication
Brief Contents
Contents
Preface
Acknowledgments
About the Authors
1. Using Operations To Create Value
	Apple Inc.
		Role of Operations in an Organization
			Historical Evolution and Perspectives
		A Process View
			How Processes Work
			Nested Processes
			Service and Manufacturing Processes
		A Supply Chain View
			Core Processes
			Support Processes
			Supply Chain Processes
		Operations Strategy
			Corporate Strategy
			Market Analysis
		Competitive Priorities and Capabilities
			Managerial Practice 1.1 Zara
			Order Winners and Qualifiers
			Using Competitive Priorities: An Airline Example
			Identifying Gaps Between Competitive Priorities and Capabilities
		Trends and Challenges in Operations Management
			Productivity Improvement
			Global Competition
			Ethical, Workforce Diversity, and Environmental Issues
		Fourth Industrial Revolution (Industry 4.0)
			The Internet of Things
			Additive Manufacturing
		Developing Skills for Your Career
			Adding Value with Process Innovation
	Learning Objectives in Review
	Key Equations
	Key Terms
	Solved Problems
	Discussion Questions
	Problems
	Case Chad’s Creative Concepts
	Video Case Using Operations to Create Value at Crayola
Supplement A. Decision Making
	Break-Even Analysis
		Evaluating Services or Products
		Evaluating Processes
	Preference Matrix
	Decision Theory
		Decision Making Under Certainty
		Decision Making Under Uncertainty
		Decision Making Under Risk
	Decision Trees
	Learning Objectives in Review
	Key Equations
	Key Terms
	Solved Problems
	Problems
Part 1. Managing Processes
	2. Process Strategy And Analysis
		CVS Pharmacy
			Process Structure in Services
				Customer-Contact Matrix
				Service Process Structuring
			Process Structure in Manufacturing
				Product-Process Matrix
				Manufacturing Process Structuring
				Production and Inventory Strategies
				Layout
			Process Strategy Decisions
				Customer Involvement
				Resource Flexibility
				Capital Intensity
			Strategic Fit
				Decision Patterns for Service Processes
				Decision Patterns for Manufacturing Processes
				Gaining Focus
				Managerial Practice 2.1 Plants-Within-a-Plant at Ford Camacari
			Strategies for Change
				Process Reengineering
				Process Improvement
				Managerial Challenge Marketing
				Process Analysis
			Defining, Measuring, and Analyzing the Process
				Flowcharts
				Work Measurement Techniques
				Process Charts
				Data Analysis Tools
			Redesigning and Managing Process Improvements
				Questioning and Brainstorming
				Benchmarking
				Implementing
		Learning Objectives in Review
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Case Custom Molds, Inc.
		Case José’s Authentic Mexican Restaurant
		Video Case Process Strategy and Analysis at Cleveland Clinic
	3. Quality And Performance
		Lego
			Costs of Quality
				Prevention Costs
				Appraisal Costs
				Internal Failure Costs
				External Failure Costs
				Ethical Failure Costs
			Total Quality Management and Six Sigma
				Total Quality Management
				Managerial Practice 3.1 Improving Quality Through Employee Involvement at Santa Cruz Guitar Company
				Six Sigma
			Acceptance Sampling
				Managerial Challenge Accounting
			Statistical Process Control
				Variation of Outputs
				Control Charts
				Control Charts for Variables
				Control Charts for Attributes
			Process Capability
				Defining Process Capability
				Using Continuous Improvement to Determine the Capability of a Process
			International Quality Documentation Standards and Awards
				The ISO 9001:2015 Documentation Standards
				Malcolm Baldrige Performance Excellence Program
			Systems Approach to Total Quality Management
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Experiential Learning 3.1 Statistical Process Control with a Coin Catapult
		Video Case Quality at Axon
	4. Lean Systems
		Nike, Inc.
			Continuous Improvement Using a Lean Systems Approach
				Managerial Challenge Finance
			Strategic Characteristics of Lean Systems
				Supply Chain Considerations in Lean Systems
				Process Considerations in Lean Systems
				Managerial Practice 4.1 Alcoa
				Toyota Production System
			Designing Lean System Layouts
				One Worker, Multiple Machines
				Group Technology
			The Kanban System
				General Operating Rules
				Determining the Number of Containers
				Other Kanban Signals
			Value Stream Mapping
				Current State Map
				Future State Map
			Operational Benefits and Implementation Issues
				Organizational Considerations
				Process Considerations
				Inventory and Scheduling
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Case Copper Kettle Catering
		Video Case Lean Systems at Autoliv
	5. Capacity Planning
		3M
			Planning Long-Term Capacity
				Measures of Capacity and Utilization
				Economies of Scale
				Diseconomies of Scale
			Capacity Timing and Sizing Strategies
				Sizing Capacity Cushions
				Timing and Sizing Expansion
				Linking Capacity and Other Decisions
				Managerial Challenge Operations
			A Systematic Approach to Long-Term Capacity Decisions
				Step 1: Estimate Capacity Requirements
				Step 2: Identify Gaps
				Step 3: Develop Alternatives
				Step 4: Evaluate the Alternatives
			Tools for Capacity Planning
				Managerial Practice 5.1 Capacity Planning at PacifiCorp
				Waiting-Line Models
				Simulation
				Decision Trees
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Case Fitness Plus, Part A
		Video Case Gate Turnaround at Southwest Airlines
	Supplement B. Waiting Lines
		Structure of Waiting-Line Problems
			Customer Population
			The Service System
			Priority Rule
			Probability Distributions
			Arrival Distribution
			Service Time Distribution
		Using Waiting-Line Models to Analyze Operations
			Single-Server Model
			Multiple-Server Model
			Little’s Law
			Finite-Source Model
		Waiting Lines and Simulation
			SimQuick
		Decision Areas for Management
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problem
		Problems
	6. Constraint Management
		Microsoft Corporation
			Managerial Challenge Marketing
			The Theory of Constraints
				Key Principles of the TOC
			Managing Bottlenecks in Service Processes
			Managing Bottlenecks in Manufacturing Processes
				Identifying Bottlenecks
				Relieving Bottlenecks
				Managerial Practice 6.1 Theory of Constraints (TOC) and Drum-Buffer-Rope (DBR) at Steelo Limited
			Applying the Theory of Constraints to Product Mix Decisions
			Managing Constraints in Line Processes
				Line Balancing
				Rebalancing the Assembly Line
				Managerial Considerations
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Experiential Learning 6.1 Min-Yo Garment Company
		Video Case Managing Constraints for Caregivers and Patients at Cleveland Clinic During COVID-19
	7. Project Management
		Burj Khalifa
			Defining and Organizing Projects
				Defining the Scope and Objectives of a Project
				Selecting the Project Manager and Team
				Recognizing Organizational Structure
				Managerial Challenge Marketing
			Constructing Project Networks
				Defining the Work Breakdown Structure
				Diagramming the  Network
				Managerial Practice 7.1 Cleveland Clinic
			Developing the Project Schedule
				Critical Path
				Project Schedule
				Activity Slack
			Analyzing Cost–Time Trade-Offs
				Cost to Crash
				Minimizing Costs
			Assessing and Analyzing Risks
				Risk-Management Plans
				Statistical Analysis
				Analyzing Probabilities
				Near-Critical Paths
				Risk Caused by Changing Requirements: Scrum
			Monitoring and Controlling Projects
				Monitoring Project Status
				Monitoring Project Resources
				Controlling Projects
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Case The Pert Mustang
		Video Case Project Management at Choice Hotels International
Part 2. Managing Customer Demand
	8. Forecasting
		Starbucks
			Managing Demand
				Demand Patterns
				Demand Management Options
			Key Decisions on Making Forecasts
				Deciding What to Forecast
				Choosing the Type of Forecasting Technique
				Managerial Challenge Information Technology
			Forecast Error
				Cumulative Sum of Forecast Errors
				Dispersion of Forecast Errors
				Mean Absolute Percent Error
				Computer Support
			Judgment Methods
			Causal Methods: Linear Regression
			Time-Series Methods
				Naïve Forecast
				Horizontal Patterns: Estimating the Average
				Trend Patterns: Using Regression
				Seasonal Patterns: Using Seasonal Factors
				Criteria for Selecting Time-Series Methods
			Big Data and the Forecasting Process
				Big Data
				Managerial Practice 8.1 Big Data and Health Care Forecasting
				A Typical Forecasting Process
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Experiential Learning 8.1 Forecasting a Vital Energy Statistic
		Case Yankee Fork and Hoe Company
		Video Case Forecasting and Supply Chain Management at Deckers Outdoor Corporation
	9. Inventory Management
		Ford’s Smart Inventory Management System (SIMS)
			Inventory Trade-Offs
				Pressures for Small Inventories
				Pressures for Large Inventories
				Managerial Challenge Finance
			Types of Inventory
				Accounting Inventories
				Operational Inventories
			Inventory Reduction Tactics
				Cycle Inventory
				Safety Stock Inventory
				Anticipation Inventory
				Pipeline Inventory
			ABC Analysis
			Economic Order Quantity
				Calculating the EOQ
				Managerial Insights from the EOQ
			Continuous Review System
				Selecting the Reorder Point When Demand and Lead Time Are Constant
				Selecting the Reorder Point When Demand Is Variable and Lead Time Is Constant
				Selecting the Reorder Point When Both Demand and Lead Time Are Variable
				Systems Based on the Q System
				Calculating Total Q System Costs
				Advantages of the Q System
			Periodic Review System
				Selecting the Time Between Reviews
				Selecting the Target Inventory Level When Demand Is Variable and Lead Time Is Constant
				Selecting the Target Inventory Level When Demand and Lead Time Are Variable
				Calculating Total P System Costs
				Advantages of the P System
				Systems Based on the P System
				Managerial Practice 9.1 Inventory Management at IKEA
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Experiential Learning 9.1 Swift Electronic Supply, Inc.
		Case Parts Emporium
		Video Case Inventory Management at Crayola
	Supplement C. Special Inventory Models
		Noninstantaneous Replenishment
		Quantity Discounts
		One-Period Decisions
		Learning Objectives in Review
		Key Equations
		Key Term
		Solved Problems
		Problems
	10. Operations Planning And Scheduling
		Cooper Tire and Rubber Company
			Levels in Operations Planning and Scheduling
				Level 1: Sales and Operations Planning
				Level 2: Resource Planning
				Level 3: Scheduling
			S&OP Supply Options
				Managerial Challenge Human Resources
			S&OP Strategies
				Chase Strategy
				Level Strategy
				Constraints and Costs
				Sales and Operations Planning as a Process
			Spreadsheets for Sales and Operations Planning
				Spreadsheets for a Manufacturer
				Spreadsheets for a Service Provider
			Workforce and Workstation Scheduling
				Workforce Scheduling
				Managerial Practice 10.1 Scheduling Major League Baseball Umpires
				Job and Facility Scheduling
				Sequencing Jobs at a Workstation
				Software Support
		Learning Objectives in Review
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Case Memorial Hospital
		Video Case Sales and Operations Planning at Starwood
	Supplement D. Linear Programming
		Characteristics of Linear Programming Models
		Formulating a Linear Programming Model
		Graphic Analysis
			Plot the Constraints
			Identify the Feasible Region
			Plot the Objective Function Line
			Find the Visual Solution
			Find the Algebraic Solution
			Slack and Surplus Variables
			Sensitivity Analysis
		Computer Analysis
			Simplex Method
			Computer Output
		The Transportation Method
			Transportation Method for Sales and Operations Planning
		Learning Objectives in Review
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
	11. Resource Planning
		Philips
			Material Requirements Planning
				Dependent Demand
				Managerial Challenge Operations
			Master Production Scheduling
				Developing a Master Production Schedule
				Available-to-Promise Quantities
				Freezing the MPS
				Reconciling the MPS with Sales and Operations Plans
			MRP Explosion
				Bill of Materials
				Inventory Record
				Planning Factors
				Outputs from MRP
				MRP and the Environment
				MRP, Core Processes, and Supply Chain Linkages
			Enterprise Resource Planning
				How ERP Systems Are Designed
				Managerial Practice 11.1 ERP Implementation at Valle del Lili Foundation
			Resource Planning for Service Providers
				Dependent Demand for Services
				Bill of Resources
		Learning Objectives in Review
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Case Wolverine, Inc.
		Video Case Resource Planning at Cleveland Clinic
Part 3. Managing Supply Chains
	12. Supply Chain Design
		Amazon.com
			Creating an Effective Supply Chain
				Managerial Challenge Operations
			Measuring Supply Chain Performance
				Inventory Measures
				Financial Measures
			Strategic Options for Supply Chain Design
				Efficient Supply Chains
				Responsive Supply Chains
				Designs for Efficient and Responsive Supply Chains
				Autonomous Supply Chains
			Mass Customization
				Competitive Advantages
				Supply Chain Design for Mass Customization
			Outsourcing Processes
				Managerial Practice 12.1 Outsourcing in the Food Delivery Business
				Outsourcing and Globalization
				Vertical Integration
				Make-or-Buy Decisions
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problem
		Discussion Questions
		Problems
		Experiential Learning 12.1 Sonic Distributors
		Case Brunswick Distribution, Inc.
		Video Case Supply Chain Design at Crayola
	13. Supply Chain Logistics Networks
		Airbus SAS
			Factors Affecting Location Decisions
				Dominant Factors in Manufacturing
				Dominant Factors in Services
				Managerial Challenge Human Resources
			Load–Distance Method
				Distance Measures
				Calculating a Load–Distance Score
				Center of Gravity
			Break-Even Analysis
			Transportation Method
				Setting Up the Initial Tableau
				Dummy Plants or Warehouses
				Finding a Solution
			Geographical Information Systems
				Using a GIS
				Managerial Practice 13.1 Fast-Food Site Selection Using GIS
				The GIS Method for Locating Multiple Facilities
			Warehouse Strategy in Logistics Networks
				Inventory Placement
				Autonomous Warehouse Operations
			A Systematic Location Selection Process
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Active Model Exercise
		Case R.U. Reddie for Location
		Video Case Continental Tire: Pursuing a Winning Plant Decision
	14. Supply Chain Integration
		Oasis of the Seas
			Supply Chain Disruptions
				Causes of Supply Chain Disruptions
				Supply Chain Dynamics
				Integrated Supply Chains
				Managerial Challenge Information Technology
			Supply Chain Risk Management
				Operational Risks
				Managerial Practice 14.1 Coronavirus and the Supply Chain: Where Is the Toilet Paper?
				Financial Risks
				Security Risks
			Cloud Computing and Blockchains
				Cloud Computing
				Blockchains
			New Service or Product Development Process
				Design
				Analysis
				Development
				Full Launch
			Supplier Relationship Process
				Sourcing
				Design Collaboration
				Negotiation
				Buying
				Vendor-Managed Inventories
				Key Performance Measures for the Supplier Relationship Process
			Order Fulfillment Process
				Customer Demand Planning
				Supply Planning
				Production
				Logistics
				Key Performance Measures for the Order Fulfillment Process
			Customer Relationship Process
				Marketing
				Order Placement
				Customer Service
				Key Performance Measures for the Customer Relationship Process
		Learning Objectives in Review
		Key Equations
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Case Wolf Motors
		Video Case Integrating the Supply Chain at Cleveland Clinic
	15. Supply Chain Sustainability
		Coca-Cola
			The Three Elements of Supply Chain Sustainability
			Reverse Logistics
				Supply Chain Design for Reverse Logistics
				Managerial Challenge Operations and Logistics
			Energy Efficiency
				Transportation Distance
				Freight Density
				Transportation Mode
			Disaster Relief Supply Chains
				Organizing for Disaster Relief
				Managing Disaster Relief Operations
				Managerial Practice 15.1 Using Drones in Disaster Relief
			Supply Chain Ethics
				Buyer–Supplier Relationships
				Facility Location
				Inventory Management
			Managing Sustainable Supply Chains
		Learning Objectives in Review
		Key Equation
		Key Terms
		Solved Problems
		Discussion Questions
		Problems
		Video Case Supply Chain Sustainability at Clif Bar & Company
Appendix. Normal Distribution
Selected References
Glossary
Name Index
Subject Index