Transcription
Operations and SupplyChain Management: The GoreFourth EditionF. ROBERT JACOBSIndiana UniversityRICHARD B. CHASEUniversity of Southern CaliforniaMcGrawHillEducation
xxiCONTENTS1 OPERATIONS AND SUPPLY CHAINMANAGEMENT 2Strategy, Processes, and Analytics 2What Is Operations and SupplyChain Management? 4Operations and Supply Chain Processes 6Differences between Services and Goods 8The Goods-Services Continuum 9Product-Service Bundling 9Efficiency, Effectiveness, and Value 10How Does Wall Street Evaluate Efficiency? 11Careers in Operations and SupplyChain Management 14Chief Operating Officer 16Historical Development of Operationsand Supply Chain Management 16Current Issues in Operations and Supply ChainManagement 19Concept Connections 19 Discussion Questions 21Objective Ouestions 21Analytics Exercise: Comparing Companies Using WallStreet Efficiency Measures 23Practice Exam 232 STRATEGY AND SUSTAINABILITY 24Mission Statements with Aspirations beyondMaking a Profit 24A Sustainable Operations and SupplyChain Strategy 26What Is Operations and Supply Chain Strategy? 27Competitive Dimensions 28The Notion of Trade-Offs 30Order Winners and Order Ouaiifiers:The Marketing-Operations Link 31Strategies Are Implemented UsingOperations and Supply ChainActivities—IKEA's Strategy 32Assessing the Risk Associatedwith Operations and SupplyChain Strategies 33Risk Management Framework 34Productivity Measurement 36Concept Connections 38 Solved Problem 39Discussion Questions 39 Objective Ouestions 40Case: The Tao of Timbuk2 42Practice Exam 433 FORECASTING 44From Bean to Cup: Starbucks Global Supply ChainChallenge 44Forecasting in Operations andSupply Chain Management 46Quantitative Forecasting Models 47Components ofDemand 48Time Series Analysis 49Simple Moving Average 50Weighted Moving Average 52Exponential Smoothing 53Exponentiai Smoothing with Trend 55Linear Regression Analysis 57Decomposition ofa Time Series 61Forecast Errors 67Sources of Error 67Measurement of Error 68Causai Reiationship Forecasting 70Multiple Regression Analysis 72Qualitative Techniques in Forecasting 73Market Research 73Panel Consensus 73Historical Anaiogy 73The Delphi Method 74Web-Based Forecasting: Collaborative Flanning,Forecasting, and Replenishment (CPFR) 74Concept Connections 76 Solved Problems 78Discussion Questions 83 Objective Questions 83Analytics Exercise: Forecasting Supply Chain Demand—Starbucks Corporation 92Practice Exam 934 STRATEGIC CAPACITY MANAGEMENT 94Shouldice Hospital: Hernia Surgery Innovation 95Capacity Management in Operationsand Supply Chain Management 96Capacity Planning Concepts 97Econom/es and D/seconom/es of Scale 97Capacity Focus 98Capacity Flexibility 98Capacity Planning 99Considerations in Changing Capacity 99Determining Capacity Requirements 101Using Decision Trees to EvaluateCapacity Alternatives 103
xxiiCONTENTSFlanning Service Capacity 106Capacity Planning in Services versusManufacturing 106Capacity Utiiization and Service Quaiity 107Concept Connections 108 Solved Problem 109Discussion Ouestions 111 Objective Ouestions 111Case: Shouldice Hospital—A Cut Above 113Practice Exam 1154A LEARNING CURVES M6The Learning Curve 116How Are Learning Curves Modeled? 118Concept Connections 122 SolvedProblems 122 Discussion Ouestions 123Objective Ouestions 126Manufacturing Cell 178Assembly-Line and Continuous Process Layouts 180Assembly-Line Design 180Splitting Tasks 184Flexible and U-Shaped Line Layouts 184Concept Connections 185 Solved Problems 187Discussion Ouestions 190 Objective Ouestions 190Advanced Problem 195Analytics Exercise: Designing a ManufacturingProcess 196Practice Exam 1986A BREAK-EVENANALYSIS 199Solved Problems 200 Objective Ouestions 2025 PROJECTS 128Can a 15-Story Hotel Be Built InLess Than a Week? 128What Is Project Management? 129Organizing the Project Team 131Pure Project 131Functional Project 131Matrix Project 132Organizing Project Tosks 133Managing Projects 134Earned Value Management (EVM) 136Network-Flanning Models 140Critical Path Method (CPMj 140CPM with Three Activity Time Estimates 144Time-Cost Models and Project Crashing 147Project Management Information Systems 152Concept Connections 153 Solved Problems 154Discussion Ouestions 159 Objective Ouestions 159Analytics Exercise: Product Design Project 166Practice Exam 1677 SERVICE PROCESSES 204Paying with a Wave of Your Phone 204The Nature of Services 205An Operational Classification of Services 206Designing Service Organizations 206Structuring the Service Encounter: Service-SystemDesign Matrix 207Virtual Sen/ice: The New Role ofthe Customer 209Service Blueprinting and Fail-Safing 210Economics ofthe Waiting Line Problem 212The PracticaI View of Waiting Lines 212The Queuing System 214Customer Arrivais 215Distribution of Arrivais 215Waiting Lines and Servers 218Waiting Line Models 221Computer Simulation of Waiting Lines 226Concept Connections 229 Solved Problems 231Discussion Ouestions 232 Objective Ouestions 233Analytics Exercise: Processing Customer Orders 237Practice Exam 2396 MANUFACTURING PROCESSES 168Three-Dimensional Printing—The TechnologyCould Be Used to Make Parts That Perform Betterand Cost Less 168Production Processes 169Production Process Mapping andLittle's Law 172How Production Processes Are Organized 175Designing a Production System 177Project Layout 177Workcenters 1778 SAJLES AND OPERATIONS PLANNING 240What Is Sales and Operations Planning? 242Overview of Sales and Operations PlanningActivities 242The Aggregate Operations Plan 244Production Planning Environment 245Relevant Costs 247Aggregate Planning Techniques 248A Cut-and-Try Example: The JC Company 248Aggregate Planning Applied to Services:Tucson Parks and Recreation Department 250
CONTENTSYield Management 256Operating Yield Management Systems 257Concept Connections 258 SolvedProblem 259 Discussion Ouestions 262Objective Ouestions 262Analytics Exercise: Developing an AggregatePlan—Bradford Manufacturing 266Practice Exam 267MATERIAL REQUIREMENTS PLANNING 268Inside the iPad 268Understanding Material Requirements Planning 269Where MRP Can Be Used 271Master Production Scheduling 271Time Fences 273Material Requirements PlanningSystem Structure 274Demand for Products 274BIII-of-Materials 275Inventory Records 277The MRP Computer Program 278An Example Using MRP 279Forecasting Demand 27911Developing a Master Production Scheduie 280Bill-of-Materiais (Product Structure) 280Inventory Records 281Performing the MRP Calculations 281Lot Sizing in MRP Systems 285Lot-for-Lot 285Economic Order Ouantity 286Least Total Cost 287Least Unit Cost 287Choosing the Best Lot Size 288Concept Connections 289 Solved Problems 290Discussion Ouestions 295 Objective Ouestions 296Analytics Exercise: An MRP Explosion—BrunswickMotors 300Practice Exam 301QUALITY MANAGEMENT AND SIX SIGMA 302GE Six Sigma Supply Chain Processes 302Total Quality Management 304Quality Specifications and Quality Costs 305Developing Quality Specifications 305Cost of Quality 307ISO 9000 and ISO 14000 309ExternaI Benchmarking for Quality Improvement 311xxiiiSix Sigma Quality 312Six Sigma Methodology 312Analytical Tools for Six Sigma 313Statistical Quality Control 317Understanding and Measuring Process Variation 318Process Capability 320Statistical Process Control Procedures 325Process Control with Attribute Measurements:Using p-Charts 327Process Control with Attribute Measurements: Usingc-Charts 328Process Control with Variable Measurements:Using X- and R-Charts 329How to Construct X- and R-Charts 330Acceptance Sampling 334Design ofa Single Sampling Plan for Attributes 334Operating Characteristic Curves 336Concept Connections 337 Solved Problems 340Discussion Questions 343 Objective Questions 344Analytics Exercise: Quality Management—Toyota 349Practice Exam 351INVENTORY MANAGEMENT 352Will Warehouses Be Needed in the Future? 352Understanding Inventory Management 354Definition of Inventory 356Purposes of Inventory 356Inventory Costs 357Independent versus Dependent Demand 358Inventory Systems 359A Single-Period Inventory Model 359Multiperlod Inventory Systems 363Fixed-Order Quantity Models 364Establishing Safety Stock Levels 367Fixed-Order Quantity Model with Safety Stock 368Fixed-Time Period Models 372Fixed-Time Period Model with Safety Stock 372Inventory Turn Calculations 374The Price-Break Model 375Inventory Planning and Accuracy 377ABC Classification 378Inventory Accuracy and Cycle Counting 379Concept Connections 381 Solved Problems 384Discussion Questions 387 Objective Ouestions 388Analytics Exercise: Inventory Management atBig10Sweaters.com 396Practice Exam 399
xxiv12CONTENTSLEAN SUPPLY CHAINS 400From Lean Supply Chain to Lean Design 400Lean Production 401The Toyota Production System 403Lean Supply Chains 404Value Stream Mapping 406Lean Supply Chain Design Principles 409Lean Concepts 409Lean Production Schedules 410Lean Supply Chains 416Lean Services 417Concept Connections 419 Solved Problems 420Discussion Ouestions 421 Objective Ouestions 425Case: Ouality Parts Company 427Case: Value Stream Mapping 428Case: Pro Fishing Boats—A Value Stream MappingExercise 430Practice Exam 43113 GLOBAL SOURCING AND PROCUREMENT 432The Factoryless Goods Producers 432Strategie Sourcing 433The Bullwhip Effect 435Supply Chain Uncertainty Framework 436Outsourcing 439Logistlcs Outsourcing 440Framework for Supplier Relationships 441Green Sourcing 442Total Cost ofOwnership 446Measuring Sourcing Performance 448Concept Connections 450 Discussion Ouestions 452Objective Ouestions 453Analytics Exercise: Global Sourcing Decisions—Grainger:Reengineering the China/U.S. Supply Chain 455Practice Exam 45714LOCATION, LOGISTICS, ANDDISTRIBUTION 458Panama Canal Widening May Impact Flow ofGoods to United States 458Logistics 459Decisions Related to Logistics 460Transportation Modes 461Warehouse Design 462Issues in Facility Location 462Plant Location Methods 464Factor-Rating Systems 465Transportation Method of Linear Programming 465Centroid Method 468Locating Service Facilities 470Concept Connections 473 Solved Problem 474Discussion Ouestions 478 Objective Ouestions 479Analytics Exercise: Distribution Center Location 482Practice Exam 484APPENDICESA Linear Programming Using theExcel Solver 485B Answers to Selected Objective Ouestions 508C Present Value Table 510D Negative Exponential Distribution:Values of e"x 511E Areas ofthe Cumulative Standard NormalDistribution 512NAME INDEX 513SUBJECT INDEX 514
Analytics Exercise: Forecasting Supply Chain Demand— Starbucks Corporation 92 Practice Exam 93 4 STRATEGIC CAPACITY MANAGEMENT 94 Shouldice Hospital: Hernia Surgery Innovation 95 Capacity Management in Operations and Supply Chain Management 96 Capacity Planning Concepts 97 Econom/es and D/seconom/es of Scale 97 Capacity Focus 98
