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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