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Operations Management: Processes and Supply Chains / Edition 11 by Lee J. Krajewski EBOOK PDF Instant Download
Table of Contents
Operations Management PROCESSES AND SUPPLY CHAINS
Brief Contents
Contents
Preface
Creating Value through Operations Management
What’s New in the Eleventh Edition?
Helping You Learn
Teaching and Learning Support
1 Using Operations to Create Value
Disney
Learning Goals
Role of Operations in an Organization
Historical Evolution and Perspectives
A Process View
How Processes Work
Nested Processes
Service and Manufacturing Processes
Differences
Similarities
A Supply Chain View
Core Processes
Support Processes
Supply Chain Processes
Operations Strategy
Corporate Strategy
Environmental Scanning
Developing Core Competencies
Developing Core Processes
Developing Global Strategies
Market Analysis
Market Segmentation
Needs Assessment
Competitive Priorities and Capabilities
Order Winners and Qualifiers
Using Competitive Priorities: An Airline Example
Identifying Gaps between Competitive Priorities and Capabilities
Addressing the Trends and Challenges in Operations Management
Productivity Improvement
Measuring Productivity
Example 1.1 Productivity Calculations
Solution
Decision Point
The Role of Management
Global Competition
Comparative Cost Advantages
Disadvantages of Globalization
Ethical, Workforce Diversity, and Environmental Issues
Designing and Operating Processes and Supply Chains
Part 1: Managing Processes
Part 2: Managing Customer Demand
Part 3: Managing Supply Chains
Adding Value with Process Innovation
Learning Goals in Review
Key Equations
Addressing the Trends and Challenges in Operations Management
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Addressing the Trends and Challenges in Operations Management
Active Model Exercise
Questions
Video Case Using Operations to Create Value at Crayola
Questions
Case Chad’s Creative Concepts
Questions
Supplement A Decision Making
Break-Even Analysis
Learning Goals
Evaluating Services or Products
Example A.1 Finding the Break-Even Quantity
Solution
Decision Point
Example A.2 Sensitivity Analysis of Sales Forecasts
Solution
Decision Point
Evaluating Processes
Example A.3 Break-Even Analysis for Make-or-Buy Decisions
Solution
Decision Point
Preference Matrix
Example A.4 Evaluating an Alternative with a Preference Matrix
Solution
Decision Point
Decision Theory
Decision Making under Certainty
Example A.5 Decisions under Certainty
Solution
Decision Point
Decision Making under Uncertainty
Example A.6 Decisions under Uncertainty
Solution
Decision Point
Decision Making under Risk
Example A.7 Decisions under Risk
Solution
Decision Point
Decision Trees
Example A.8 Analyzing a Decision Tree
Solution
Decision Point
Learning Goals in Review
Key Equations
Break-Even Analysis
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Problems
Break-Even Analysis
Preference Matrix
Decision Theory
Decision Trees
Part 1 Managing Processes
2 Process Strategy and Analysis
McDonald’s Corporation
Learning Goals
Process Structure in Services
Customer-Contact Matrix
Customer Contact and Customization
Process Divergence and Flow
Service Process Structuring
Front Office
Hybrid Office
Back Office
Process Structure in Manufacturing
Product–Process Matrix
Manufacturing Process Structuring
Job Process
Batch Process
Line Process
Continuous-Flow Process
Production and Inventory Strategies
Design-to-Order Strategy
Make-to-Order Strategy
Assemble-to-Order Strategy
Make-to-Stock Strategy
Layout
Process Strategy Decisions
Customer Involvement
Possible Advantages
Possible Disadvantages
Resource Flexibility
Workforce
Equipment
Capital Intensity
Automating Manufacturing Processes
Automating Service Processes
Economies of Scope
Strategic Fit
Decision Patterns for Service Processes
Decision Patterns for Manufacturing Processes
Gaining Focus
Focus by Process Segments
Focused Service Operations
Focused Factories
Strategies for Change
Process Reengineering
Process Improvement
Process Analysis
Documenting and Evaluating the Process
Flowcharts
Swim lane flowchart
Service Blueprint
Work Measurement Techniques
Time Study Method
Elemental Standard Data method
Example 2.1 Time Study of Watch Assembly Process
Solution
Decision Point
Predetermined Data method
Work Sampling Method
Learning Curve Analysis
Process Charts
Data Analysis Tools
Checklists
Histograms and Bar Charts
Pareto Charts
Example 2.2 Pareto Chart for a Restaurant
Solution
Decision Point
Scatter Diagrams
Cause-and-Effect Diagrams
Example 2.3 Analysis of Inadequate Production of Headers
Solution
Decision Point
Graphs
Example 2.4 Identifying Causes of Poor Headliner Process Failures
Solution
Decision Point
Redesigning and Managing Process Improvements
Questioning and Brainstorming
Benchmarking
Implementing
Learning Goals in Review
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Discussion Questions
Problems
Process Strategy Decisions
Documenting and Evaluating the Process
Active Model Exercise
Questions
Video Case Process Analysis at Starwood
Questions
Case Custom Molds, Inc.
Production Processes
The Changing Environment
Questions
Case José’s Authentic Mexican Restaurant
Questions
3 Quality and Performance
QVC
Learning Goals
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
Customer Satisfaction
Employee Involvement
Continuous Improvement
Six Sigma
Acceptance Sampling
Statistical Process Control
Variation of Outputs
Performance Measurements
Sampling
Sampling Distributions
Common Causes
Assignable Causes
Control Charts
Control Charts for Variables
R-Chart
x¯-Chart
Example 3.1 Using x¯ and R-Charts to Monitor a Process
Solution
Decision Point
Example 3.2 Designing an x¯-Chart Using the Process Standard Deviation
Solution
Decision Point
Control Charts for Attributes
p-Charts
Example 3.3 Using a p-Chart to Monitor a Process
Solution
Decision Point
c-Charts
Example 3.4 Using a c-Chart to Monitor Defects per Unit
Solution
Decision Point
Process Capability
Defining Process Capability
Process Capability Index
Process Capability Ratio
Using Continuous Improvement to Determine the Capability of a Process
Example 3.5 Assessing the Process Capability of the Intensive Care Unit Lab
Solution
Decision Point
International Quality Documentation Standards and Awards
The ISO 9001:2008 Documentation Standards
The ISO 140001:2004 Environmental Management System
Benefits of ISO Certification
Benefits of the Baldrige Performance Excellence Program
Learning Goals in Review
Key Equations
Statistical Process Control
Process Capability
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Discussion Questions
Problems
Statistical Process Control
Process Capability
Active Model Exercise
Questions
Video Case Process Performance and Quality at Starwood Hotels & Resorts
Questions
Experiential Learning Statistical Process Control with a Coin Catapult
Exercise A: Control Charts for Variables
Materials
Tasks
Practice
Exercise B: Control Charts for Attributes
Materials
Tasks
Practice
4 Capacity Planning
Tesla Motors
Learning Goals
Planning Long-Term Capacity
Measures of Capacity and Utilization
Output Measures of Capacity
Input Measures of Capacity
Utilization
Economies of Scale
Spreading Fixed Costs
Reducing Construction Costs
Cutting Costs of Purchased Materials
Finding Process Advantages
Diseconomies of Scale
Capacity Timing and Sizing Strategies
Sizing Capacity Cushions
Timing and Sizing Expansion
Expansionist Strategy
Wait-and-See Strategy
Linking Capacity and Other Decisions
A Systematic Approach to Long-Term Capacity Decisions
Step 1: Estimate Capacity Requirements
Using Output Measures
Using Input Measures
Example 4.1 Estimating Capacity Requirements When Using Input Measures
Solution
Decision Point
Step 2: Identify Gaps
Step 3: Develop Alternatives
Step 4: Evaluate the Alternatives
Qualitative Concerns
Quantitative Concerns
Example 4.2 Evaluating the Alternatives
Solution
Decision Point
Tools for Capacity Planning
Waiting-Line Models
Simulation
Decision Trees
Learning Goals in Review
Key Equations
Planning Long-Term Capacity
Capacity Timing and Sizing Strategies
A Systematic Approach to Long-Term Capacity Decisions
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Planning Long-Term Capacity
A Systematic Approach to Long-Term Capacity Decisions
Tools for Capacity Planning
Video Case Gate Turnaround at Southwest Airlines
Questions
Case Fitness Plus, Part A
Questions
Supplement B Waiting Lines
Structure of Waiting-Line Problems
Customer Population
The Service System
Number of Lines
Arrangement of Service Facilities
Priority Rule
Probability Distributions
Arrival Distribution
Example B.1 Calculating the Probability of Customer Arrivals
Solution
Decision Point
Service Time Distribution
Example B.2 Calculating the Service Time Probability
Solution
Decision Point
Using Waiting-Line Models to Analyze Operations
Single-Server Model
Example B.3 Calculating the Operating Characteristics of a Single-Channel, Single-Phase System with the Single-Server Model
Solution
Example B.4 Analyzing Service Rates with the Single-Server Model
Solution
Decision Point
Multiple-Server Model
Example B.5 Estimating Idle Time and Hourly Operating Costs with the Multiple-Server Model
Solution
Decision Point
Little’s Law
Finite-Source Model
Example B.6 Analyzing Maintenance Costs with the Finite-Source Model
Solution
Decision Point
Waiting Lines and Simulation
SimQuick
Decision Areas for Management
Learning Goals in Review
Key Equations
Structure of Waiting-Line Problems
Using Waiting-Line Models to Analyze Operations
Key Terms
Solved Problem
Solution
Problems
Structure of Waiting-Line Problems
Using Waiting-Line Models to Analyze Operations
5 Constraint Management
British Petroleum Oil Spill in Gulf of Mexico
Learning Goals
The Theory of Constraints
Key Principles of the TOC
Managing Bottlenecks in Service Processes
Example 5.1 Identifying the Bottleneck in a Service Process
Solution
Decision Point
Managing Bottlenecks in Manufacturing Processes
Identifying Bottlenecks
Example 5.2 Identifying the Bottleneck in a Batch Process
Solution
Decision Point
Relieving Bottlenecks
Drum-Buffer-Rope Systems
Applying the Theory of Constraints to Product Mix Decisions
Example 5.3 Determining the Product Mix Using Contribution Margin
Solution
Decision Rule 1: Traditional Method
Decision Rule 2: Bottleneck Method
Decision Point
Managing Constraints in Line Processes
Line Balancing
Precedence Diagram
Example 5.4 Constructing a Precedence Diagram
Solution
Decision Point
Desired Output Rate
Cycle Time
Theoretical Minimum
Idle Time, Efficiency, and Balance Delay
Example 5.5 Calculating the Cycle Time, Theoretical Minimum, and Efficiency
Solution
Decision Point
Finding a Solution
Rebalancing the Assembly Line
Managerial Considerations
Pacing
Behavioral Factors
Number of Models Produced
Cycle Times
Learning Goals in Review
Key Equations
Managing Constraints in Line Processes
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Managing Bottlenecks in Service Processes
Managing Bottlenecks in Manufacturing Processes
Applying the Theory of Constraints to Product Mix Decisions
Managing Constraints in Line Processes
Experiential Learning Min-Yo Garment Company
Products
Licensed Brands
Subcontracted Brands
Special Garments
Manufacturing Process
Scheduling the Garment Maker
Notes
The Simulation
Video Case Constraint Management at Southwest Airlines
Questions
6 Lean Systems
Aldi
Learning Goals
Continuous Improvement Using a Lean Systems Approach
Strategic Characteristics of Lean Systems
Supply Chain Considerations in Lean Systems
Close Supplier Ties
Small Lot Sizes
Process Considerations in Lean Systems
Pull Method of Work Flow
Quality at the Source
Uniform Workstation Loads
Standardized Components and Work Methods
Flexible Workforce
Automation
Five S Practices
Total Preventive Maintenance (TPM)
Toyota Production System
House of Toyota
Designing Lean System Layouts
One Worker, Multiple Machines
Group Technology
Value Stream Mapping
Example 6.1 Determining the Value Stream Map, Takt Time, and Total Capacity
Solution
Decision Point
The Kanban System
General Operating Rules
Determining the Number of Containers
Example 6.2 Determining the Appropriate Number of Containers
Solution
Decision Point
Other Kanban Signals
Container System
Containerless System
Operational Benefits and Implementation Issues
Organizational Considerations
The Human Costs of Lean Systems
Cooperation and Trust
Reward Systems and Labor Classifications
Process Considerations
Inventory and Scheduling
Schedule Stability
Setups
Purchasing and Logistics
Learning Goals in Review
Key Equations
The Kanban System
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Strategic Characteristics of Lean Systems
Value Stream Mapping
The Kanban System
Video Case Lean Systems at Autoliv
Questions
Case Copper Kettle Catering
Questions
7 Project Management
XBOX 360
Design
Analysis
Development
Launch
Learning Goals
Defining and Organizing Projects
Defining the Scope and Objectives of a Project
Selecting the Project Manager and Team
Recognizing Organizational Structure
Constructing Project Networks
Defining the Work Breakdown Structure
Diagramming the Network
Establishing Precedence Relationships
Estimating Activity Times
Example 7.1 Diagramming the St. John’s Hospital Project
Solution
Developing the Project Schedule
Critical Path
Project Schedule
Example 7.2 Calculating Start and Finish Times for the Activities
Solution
Decision Point
Activity Slack
Analyzing Cost–Time Trade-Offs
Cost to Crash
Minimizing Costs
Example 7.3 Find a Minimum-Cost Schedule
Solution
Stage 1
Stage 2
Stage 3
Stage 4
Decision Point
Assessing and Analyzing Risks
Risk-Management Plans
Simulation?
Statistical Analysis
Example 7.4 Calculating Means and Variances
Solution
Decision Point
Analyzing Probabilities
Near-Critical Paths
Example 7.5 Calculating the Probability of Completing a Project by a Given Date
Solution
Decision Point
Monitoring and Controlling Projects
Monitoring Project Status
Open Issues and Risks
Schedule Status
Monitoring Project Resources
Controlling Projects
Learning Goals in Review
Key Equations
Developing the Project Schedule
Analyzing Cost–Time Trade-Offs
Assessing and Analyzing Risks
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Developing the Project Schedule
Analyzing Cost–Time Trade-Offs
Assessing and Analyzing Risks
Active Model Exercise
Questions
Video Case Project Management at the Phoenician
Questions
Case The Pert Mustang
Questions
Part 2 Managing Customer Demand
8 Forecasting
Kimberly-Clark
Learning Goals
Managing Demand
Demand Patterns
Demand Management Options
Complementary Products?
Promotional Pricing?
Prescheduled Appointments?
Reservations?
Revenue Management?
Backlogs?
Backorders and Stockouts?
Key Decisions on Making Forecasts
Deciding What to Forecast
Level of Aggregation?
Units of Measurement?
Choosing the Type of Forecasting Technique
Forecast Error
Cumulative Sum of Forecast Errors
Dispersion of Forecast Errors
Mean Absolute Percent Error
Example 8.1 Calculating Forecast Error Measures
Solution
Decision Point
Computer Support
Judgment Methods
Causal Methods: Linear Regression
Example 8.2 Using Linear Regression to Forecast Product Demand
Solution
Decision Point
Time-Series Methods
Naïve Forecast
Horizontal Patterns: Estimating the Average
Simple Moving Averages
Example 8.3 Using the Moving Average Method to Estimate Average Demand
Solution
Decision Point
Weighted Moving Averages?
Exponential Smoothing?
Example 8.4 Using Exponential Smoothing to Estimate Average Demand
Solution
Decision Point
Trend Patterns: Using Regression
Example 8.5 Using Trend Projection with Regression to Forecast a Demand Series with a Trend
Solution
Seasonal Patterns: Using Seasonal Factors
Example 8.6 Using the Multiplicative Seasonal Method to Forecast the Number of Customers
Solution
Decision Point
Criteria for Selecting Time-Series Methods
Using Statistical Criteria
Using a Holdout Sample?
Using a Tracking Signal?
Forecasting as a Process
A Typical Forecasting Process
Using Multiple Forecasting Methods
Adding Collaboration to the Process
Forecasting as a Nested Process
Learning Goals in Review
Key Equations
Forecast Error
Causal Methods: Linear Regression
Time-Series Methods
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Discussion Questions
Problems
Causal Methods: Linear Regression
Time-Series Methods
Video Case Forecasting and Supply Chain Management at Deckers Outdoor Corporation
Questions
Case Yankee Fork and Hoe Company
Planning Bow Rake Production
The Problem
Questions
Experiential Learning 8.1 Forecasting a Vital Energy Statistic
In-Class Exercise–Part 1
In-Class Exercise–Part 2
In-Class Exercise–Parts 3 and beyond
Chapter 9 Inventory Management
Inventory Management at Netflix
Learning Goals
Inventory Trade-Offs
Pressures for Small Inventories
Cost of Capital
Storage and Handling Costs
Taxes, Insurance, and Shrinkage
Pressures for Large Inventories
Customer Service
Ordering Cost
Setup Cost
Labor and Equipment Utilization
Transportation Cost
Payments to Suppliers
Types of Inventory
Accounting Inventories
Operational Inventories
Cycle Inventory
Safety Stock Inventory
Anticipation Inventory
Pipeline Inventory
Example 9.1 Estimating Inventory Levels
Solution
Decision Point
Inventory Reduction Tactics
Cycle Inventory
Safety Stock Inventory
Anticipation Inventory
Pipeline Inventory
ABC Analysis
Economic Order Quantity
Calculating the EOQ
Example 9.2 The Cost of a Lot-Sizing Policy
Solution
Decision Point
Example 9.3 Finding the EOQ, Total Cost, and TBO
Solution
Decision Point
Managerial Insights from the EOQ
Continuous Review System
Selecting the Reorder Point When Demand and Lead Time Are Constant
Example 9.4 Placing a New Order When Demand and Lead Time Are Constant
Solution
Decision Point
Selecting the Reorder Point When Demand Is Variable and Lead Time Is Constant
Example 9.5 Placing a New Order When Demand Is Variable and Lead Time Is Constant
Solution
Decision Point
Step 1: Service Level Policy
Step 2: Distribution of Demand during Lead Time
Step 3: Safety Stock and Reorder Point
Example 9.6 Reorder Point for Variable Demand and Constant Lead Time
Solution
Decision Point
Selecting the Reorder Point When Both Demand and Lead Time Are Variable
Example 9.7 Reorder Point for Variable Demand and Variable Lead Time
Solution
Decision Point
Systems Based on the Q System
Two-Bin System
Base-Stock System
Calculating Total Q System Costs
Advantages of the Q System
Periodic Review System
Example 9.8 Determining How Much to Order in a P System
Solution
Decision Point
Selecting the Time between Reviews
Selecting the Target Inventory Level When Demand Is Variable and Lead Time Is Constant
Example 9.9 Calculating P and T
Solution
Decision Point
Selecting the Target Inventory Level When Demand and Lead Time Are Variable
Systems Based on the P System
Single-Bin System
Optional Replenishment System
Calculating Total P System Costs
Advantages of the P System
Learning Goals in Review
Key Equations
Types of Inventory
Economic Order Quantity
Continuous Review System
Periodic Review System
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Solved Problem 5
Solution
Solved Problem 6
Solution
Discussion Questions
Problems
Types of Inventory
Inventory Reduction Tactics
ABC Analysis
Economic Order Quantity
Continuous Review System
Periodic Review System
Active Model Exercise
Questions
Video Case Inventory Management at Crayola
Questions
Experiential Learning Swift Electronic Supply, Inc.
Industry and Company Preview
Dram
Simulation
Case Parts Emporium
Questions
Supplement C Special Inventory Models
Learning Goals
Noninstantaneous Replenishment
Example C.1 Finding the Economic Production Lot Size
Solution
Decision Point
Quantity Discounts
Example C.2 Finding Q with Quantity Discounts at St. LeRoy Hospital
Solution
Decision Point
One-Period Decisions
Example C.3 Finding Q for One-Period Inventory Decisions
Solution
Decision Point
Learning Goals in Review
Key Equations
Noninstantaneous Replenishment
Quantity Discounts
One-period Decisions
Key Term
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Problems
Noninstantaneous Replenishment
Quantity Discounts
One-Period Decisions
Chapter 10 Operations Planning and Scheduling
Cooper Tire and Rubber Company
Learning Goals
Levels in Operations Planning and Scheduling
Level 1: Sales and Operations Planning
Aggregation
Information inputs
Related Plans
Level 2: Resource Planning
Level 3: Scheduling
S&OP Supply Options
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
Spreadsheeets for a Service Provider
Example 10.1 Using the Chase and Level Strategies as Starting Points
Solution
Decision Point
Scheduling
Job and Facility Scheduling
Gantt progress chart
Gantt workstation chart
Workforce Scheduling
Constraints
Developing a Workforce Schedule
Example 10.2 Developing a Workforce Schedule
Solution
Decision Point
Sequencing Jobs at a Workstation
Priority Sequencing Rules
Performance Measures
Example 10.3 Using the FCFS and EDD Priority Sequencing Rules
Solution
Decision Point
Software Support
Learning Goals in Review
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Discussion Questions
Problems
S&OP Strategies
Spreadsheets for Sales and Operations Planning
Scheduling
Active Model Exercise
Questions
Video Case Sales and Operations Planning at Starwood
Questions
Case Memorial Hospital
Questions
Supplement D Linear Programming
Characteristics of Linear Programming Models
Formulating a Linear Programming Model
Example D.1 Formulating a Linear Programming Model
Solution
Graphic Analysis
Plot the Constraints
Example D.2 Plotting the Constraints
Solution
Identify the Feasible Region
Example D.3 Identifying the Feasible Region
Solution
Plot the Objective Function Line
Find the Visual Solution
Find the Algebraic Solution
Example D.4 Finding the Optimal Solution Algebraically
Solution
Decision Point
Slack and Surplus Variables
Sensitivity Analysis
Computer Analysis
Simplex Method
Computer Output
Example D.5 Using Shadow Prices for Decision Making
Solution
Decision Point
The Transportation Method
Transportation Method for Sales and Operations Planning
Example D.6 Preparing a Production Plan with the Transportation Method
Solution
Decision Point
Learning Goals in Review
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Formulating a Linear Programming Model
Graphic Analysis
Computer Analysis
The Transportation Method
11 Resource Planning
Philips
Learning Goals
Material Requirements Planning
Dependent Demand
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
Gross Requirements
Scheduled Receipts
Projected On-Hand Inventory
Planned Receipts
Planned Order Releases
Planning Factors
Planning Lead Time
Lot-Sizing Rules
Fixed Order Quantity
Periodic Order Quantity
Lot for Lot
Comparing Lot-Sizing Rules
Safety Stock
Outputs from MRP
Material Requirements
Action Notices
Resource Requirements Reports
Performance Reports
MRP and the Environment
MRP, Core Processes, and Supply Chain Linkages
Enterprise Resource Planning
How ERP Systems Are Designed
Resource Planning for Service Providers
Dependent Demand for Services
Restaurants
Airlines
Hospitals
Hotels
Bill of Resources
Learning Goals in Review
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Discussion Questions
Problems
Master Production Scheduling
MRP Explosion
Resource Planning for Service Providers
Active Model Exercise
Questions
Case Flashy Flashers, Inc.
Production and Inventory Control Manager
Shop Supervisor
Purchasing
Your Assignment
Part 3 Managing Supply Chains
12 Supply Chain Design
Amazon.com
Learning Goals
Creating an Effective Supply Chain
Supply Chains for Services and Manufacturing
Services
Manufacturing
Measuring Supply Chain Performance
Inventory Measures
Example 12.1 Calculating Inventory Measures
Solution
Decision Point
Financial Measures
Total Revenue
Cost of Goods Sold
Operating Expenses
Cash Flow
Working Capital
Return on Assets
Strategic Options for Supply Chain Design
Efficient Supply Chains
Common Designs
Responsive Supply Chains
Common Designs
Designs for Efficient and Responsive Supply Chains
Mass Customization
Competitive Advantages
Supply Chain Design for Mass Customization
Assemble-to-Order Strategy
Modular Design
Postponement
Outsourcing Processes
Vertical Integration
Make-or-Buy Decisions
Example 12.2 Using Break-Even Analysis for the Make-or-Buy Decision
Solution
Decision Point
Learning Goals in Review
Key Equations
Measuring Supply Chain Performance
Outsourcing Processes
Key Terms
Solved Problem
Solution
Discussion Questions
Problems
Measuring Supply Chain Performance
Outsourcing Processes
Video Case Supply Chain Design at Crayola
Questions
Experiential Learning Sonic Distributors
Scenario
Materials (available from instructor)
Setup
Tasks
Costs and Conditions
Costs
Conditions
Delays
Run the Exercise
Retailers
Distributor
Factory
Case Brunswick Distribution, Inc.
Background
Concerns
Market
Financial
Operations
Strategic Issues
Investing in New Infrastructure
Streamlining the Distribution System
The Decision
13 Supply Chain Logistic Networks
Bavarian Motor Works (BMW)
Learning Goals
Factors Affecting Location Decisions
Dominant Factors in Manufacturing
Favorable Labor Climate
Proximity to Markets
Impact on Environment
Quality of Life
Proximity to Suppliers and Resources
Proximity to the Parent Company’s Facilities
Utilities, Taxes, and Real Estate Costs
Other Factors
Dominant Factors in Services
Proximity to Customers
Transportation Costs and Proximity to Markets
Location of Competitors
Site-Specific Factors
Load–Distance Method
Distance Measures
Calculating a Load–Distance Score
Center of Gravity
Example 13.1 Finding the Center of Gravity for an Electric Utilities Supplier
Solution
Decision Point
Break-Even Analysis
Example 13.2 Break-Even Analysis for Location
Solution
Decision Point
Transportation Method
Setting Up the Initial Tableau
Dummy Plants or Warehouses
Finding a Solution
Example 13.3 Interpreting the Optimal Solution
Solution
Decision Point
Geographical Information Systems
Using GIS
The GIS Method for Locating Multiple Facilities
Inventory Placement
A Systematic Location Selection Process
Example 13.4 Calculating Weighted Scores in a Preference Matrix
Solution
Learning Goals in Review
Key Equations
Load–Distance Method
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Solved Problem 4
Solution
Discussion Questions
Problems
Load–Distance Method
Break-Even Analysis
Transportation Method
A Systematic Location Selection Process
Active Model Exercise
Questions
Video Case Continental Tire: Pursuing a Winning Plant Decision
Questions
Case R.U. Reddie for Location
Background
Rhonda’s Concerns
Data
Questions
Addendum
14 Supply Chain Integration
Coral Princess
Learning Goals
Supply Chain Disruptions
Causes of Supply Chain Disruptions
External Causes
Internal Causes
Supply Chain Dynamics
Integrated Supply Chains
New Service or Product Development Process
Design
Analysis
Development
Full Launch
Supplier Relationship Process
Sourcing
Supplier Selection
Example 14.1 Total Cost Analysis for Supplier Selection
Solution
Decision Point
Example 14.2 Using a Preference Matrix for Selecting Suppliers
Solution
Decision Point
Supplier Certification and Evaluation
Design Collaboration
Negotiation
Competitive Orientation
Cooperative Orientation
Buying
Electronic Data Interchange
Catalog Hubs
Exchanges
Auctions
Locus of Control
Information Exchange
Radio Frequency Identification
Vendor-Managed Inventories
Order Fulfillment Process
Customer Demand Planning
Supply Planning
Production
Logistics
Example 14.3 Using the Expected Value Decision Rule for Truck Capacity
Solution
Decision Point
Customer Relationship Process
Marketing
Business-to-Consumer Systems
Business-to-Business Systems
Order Placement
Customer Service
Supply Chain Risk Management
Operational Risks
Financial Risks
Security Risks
Performance Measures
Learning Goals in Review
Key Equations
Supplier Relationship Process
Order Fulfillment Process
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Solved Problem 3
Solution
Discussion Questions
Problems
Supplier Relationship Process
Order Fulfillment Process
Supply Chain Risk Management
Video Case Sourcing Strategy at Starwood
Questions
Case Wolf Motors
Questions
15 Supply Chain Sustainability
FedEx
Learning Goals
The Three Elements of Supply Chain Sustainability
Reverse Logistics
Supply Chain Design for Reverse Logistics
Financial Implications
Energy Efficiency
Transportation Distance
Example 15.1 Finding an Energy-Efficient Route Using the Nearest Neighbor Heuristic
Solution
Decision Point
Freight Density
Example 15.2 Evaluating an Increase in Freight Density
Solution
Decision Point
Transportation Mode
Disaster Relief Supply Chains
Organizing for Disaster Relief
Managing Disaster Relief Operations
Supply Chain Ethics
Buyer–Supplier Relationships
Facility Location
Inventory Management
Managing Sustainable Supply Chains
Learning Goals in Review
Key Equation
Energy Efficiency
Key Terms
Solved Problem 1
Solution
Solved Problem 2
Solution
Discussion Questions
Problems
Energy Efficiency
Video Case Supply Chain Sustainability at Clif Bar & Company
Questions
Appendix Normal Distribution
Selected References
Glossary
Name Index
Subject Index
Supplement E Simulation
Reasons for Using Simulation Models
The Monte Carlo Simulation Process
Simulation with Excel Spreadsheets
Simulation with SimQuick Software
Learning Goals in Review
Key Terms
Solved Problem 1
Solved Problem 2
Problems
Selected References
Supplement F Financial Analysis
Time Value of Money
Methods of Financial Analysis
Using Judgment with Financial Analysis
Learning Goals in Review
Key Equations
Key Terms
Selected References
Supplement G Acceptance Sampling Plans
Acceptance Sampling Quality and Risk Decisions
Sampling Plans
Operating Characteristic Curves
Selecting a Single-Sampling Plan
Average Outgoing Quality
Learning Goals in Review
Key Equation
Key Terms
Solved Problem
Problems
Selected References
Supplement H Measuring Output Rates
Work Standards
Time Study Method
Elemental Standard Data Method
Predetermined Data Method
Work Sampling Method
Managerial Considerations in Work Measurement
Learning Goals in Review
Key Equations
Key Terms
Solved Problem 1
Solved Problem 2
Problems
Supplement I Learning Curve Analysis
The Learning Curve Concept
Developing Learning Curves
Using Learning Curves
Managerial Considerations in the Use of Learning Curves
Learning Goals in Review
Key Equation
Key Term
Solved Problem
Problems
Selected References
Supplement J Operations Scheduling
Performance Measures for Scheduling Processes
Job Shop Scheduling
Flow Shop Scheduling
Labor-Limited Environments
Learning Goals in Review
Key Equations
Key Terms
Solved Problem 1
Solved Problem 2
Solved Problem 3
Discussion Question
Problems
Active Model Exercise
Selected References
Supplement K Layout
Step 1: Gather Information
Step 2: Develop a Block Plan
Step 3: Design a Detailed Layout
Learning Goals in Review
Key Equation
Key Terms
Solved Problem
Problems
Active Model Exercise
Selected References
