Operations Management In The Supply Chain: Decisions And Cases / Edition 6

by Susan Meyer Goldstein, Roger G Schroeder, M. Johnny Rungtusanatham

Overview

Operations Management in the Supply Chain: Decisions and Cases is an ideal book for the instructor seeking a short text with cases. This book employs a cross-functional perspective that emphasizes strategy and critical thinking, appealing to non-majors and practical for use in an MBA level or undergraduate course in operations management. The size and focus of the book also make the text attractive for the cross-functional curriculum where students are required to purchase more than one text. The sixteen cases offer variety in length and rigor; and several are from Ivey, Stanford, and Darden. This mix makes the book appropriate for both undergraduates and MBA students.

Product Details

ISBN-13:	9780073525242
Publisher:	McGraw-Hill Higher Education
Publication date:	12/14/2012
Edition description:	List
Pages:	576
Product dimensions:	7.90(w) x 10.00(h) x 1.00(d)
Age Range:	18 Years

About the Author

Susan Meyer Goldstein is Associate Professor in the Supply Chain and Operations Department at the Curtis L. Carlson School of Management, University of Minnesota. She earned a B.S. degree in Genetics and Cell Biology and an M.B.A. at the University of Minnesota and worked in the health care industry for several years. She later obtained a Ph.D. in operations management from Fisher College of Business at The Ohio State University. She has served on the faculty at the University of Minnesota since 1998 and was a Visiting Professor at the Olin Business School at Washington University in St. Louis for two years. Her current research investigates the link between service process design and process performance, and she is currently working with a Minnesota hospital that has been achieving one of the lowest heart attack mortality rates in the United States. She is also interested in issues related to aging service workers, operations strategy, and service quality. Her research has been published in Decision Sciences, Journal of Operations Management, and Production and Operations Management, among others. She is Associate Editor at Journal of Operations Management, Decision Science Journal, Quality Management Journal, and Service Industries Journal and serves on the editorial boards of many operations and service journals. She is the recipient of several research awards and research grants, and received the 2011 Carlson School of Management Teaching Award.
Donaldson Chair in Operations Management at the Curtis L. Carlson School of Management, University of Minnesota. He is also the Co-Director of the Juran Center for Leadership in Quality and has earned an appointment as a Distinguished Teaching Professor. He received the B.S. degree in Industrial Engineering with high distinction from the University of Minnesota, MSIE University of Minnesota and Ph.D. from Northwestern University. Prior to joining the University of Minnesota, he taught at the U.S. Naval Postgraduate School, Monterey, California, and was an analyst for the office of the Assistant Secretary of Defense. Professor Schroeder has received research grants from the Ford Foundation, American Production and Inventory Control Society, Exxon Education Foundation and the National Science Foundation. He is a recipient of the Morse Award for outstanding teaching at the University of Minnesota.
M. Johnny Rungtusanatham is Professor of Management Sciences at the Fisher College of Business, The Ohio State University. He has held faculty positions at the University of Minnesota— Twin Cities, Arizona State University, and the University of Wisconsin—Madison. He is an award-winning faculty member in both teaching and research, having been selected in 2000 to be the first recipient of the John Teets Outstanding Graduate Professor Award from the W. P. Carey School of Business and, in the same year, having received the distinction of Foreign Professor of High Qualification from the Università di Padova, Italy. His co-authors and he also have won three best paper awards. His research has appeared in a number of prestigious academic and practitioner journals, including the Academy of Management Review, Decision Sciences, Journal of Operations Management, Production and Operations Management, and Sloan Management Review, among others. He is the Co-Department Editor, Operations Strategy & Flexibility, Production and Operations Management and an Associate Editor for Decision Sciences, Journal of Operations Management, Journal of Business Logistics, and Journal of Supply Chain Management. He has served or is serving on the Board of Directors of the Decision Sciences Institute and the APICS Educational & Research Foundation. While at Arizona State University, he founded and directed the W. P. Carey MBA–Online Program. He has conducted research with, consulted with, and provided executive training for Arizona Public Services, Chevron

Corporation

Deere & Company, e-Bags.com, E-Source, Honeywell, Intel, LG Electronics, Medtronics, ON Semiconductor, Phelps Dodge, Seaquist Closures, United Technologies, and Zytec.

Table of Contents

About the Authors vi

Preface viii

Part 1 Introduction 1

Chapter 1 The Operations Function 2

1.1 Why Study Operations Management? 3

1.2 Definition of Operations Management and Supply Chains 4

1.3 Decisions at Pizza U.S.A. 7

1.4 Operations Decisions-A Framework with Contingencies 9

1.5 Cross-Functional Decision Making 11

1.6 Operations as a Process 12

1.7 Contemporary Operations Themes 15

Services and Manufacturing 15

Customer-Directed Operations 15

Lean 15

Integration of Operations with Other Functions 15

Environmental Concerns and Sustainability 16

Supply Chain Management 16

Globalization of Operations 16

1.8 Key Points and Terms 18

Student Internet Exercises 19

Discussion Questions 19

Selected Bibliography 20

Chapter 2 Operations and Supply Chain Strategy 21

2.1 McDonald's Operations Strategy 22

2.2 Operations Strategy Model 24

Corporate and Business Strategy 25

Operations Mission 26

Operations Objectives 26

Strategic Decisions 27

Distinctive Competence 28

2.3 Emphasis on Operations Objectives 29

2.4 linking Strategies: Operations Strategic Decisions 31

2.5 Competitive Advantage through Operations 33

2.6 Global Scope of Operations and Supply Chains 34

2.7 Supply Chain Strategy 35

2.8 Environment and Sustainable Operations 37

2.9 Key Points and Terms 38

Student Internet Exercises 40

Discussion Questions 40

Selected Bibliography 41

Chapter 3 Product Design 42

3.1 Strategies for New-Product Introduction 43

3.2 New-Product Development Process 44

Concept Development 45

Product Design 45

Pilot Production/Testing 46

3.3 Cross-Functional Product Design 47

3.4 Supply Chain Collaboration 48

3.5 Quality Function Deployment 50

Customer Attributes 50

Engineering Characteristics 52

3.6 Value Analysis 54

3.7 Modular Design 56

3.8 Key Points and Terms 57

Student Internet Exercises 58

Discussion Questions 59

Selected Bibliography 59

Part 2 Process Design 61

Chapter 4 Process Selection 62

4.1 Product-Flow Characteristics 63

4.2 Approaches to Order Fulfillment 68

4.3 Process Selection Decisions 72

4.4 Product-Process Strategy 74

4.5 Focused Operations 76

4.6 Mass Customization 77

4.7 Environmental Concerns 79

4.8 Cross-Functional Decision Making 81

4.9 Key Points and Terms 82

Student Internet Exercises 83

Discussion Questions 84

Selected Bibliography 85

Chapter 5 Service Delivery System Design 86

5.1 Defining Service 88

5.2 Service-Product Bundle 89

5.3 Service Delivery System Matrix 91

5.4 Customer Contact 94

5.5 Service Recovery and Guarantees 96

5.6 Globalization of Services 99

5.7 Employees and Service 102

5.8 Key Points and Terms 105

Student Internet Exercises 107

Discussion Questions 107

Selected Bibliography 108

Chapter 6 Process-Flow Analysis 110

6.1 Process Thinking 111

6.2 The Process View of Business 112

6.3 Process Flowcharting 114

6.4 Process-Flow Analysis as Asking Questions 119

6.5 Measuring Process Flows 121

6.6 Measuring Process Flows at Pizza U.S.A. 123

6.7 Process Redesign 125

6.8 Key Points and Terms 128

Student Internet Exercises 129

Solved Problems 129

Discussion Questions 131

Problems 131

Selected Bibliography 133

Chapter 7 Lean Thinking and Lean Systems 134

7.1 Evolution of Lean 135

7.2 Lean Tenets 137

7.3 Stabilizing the Master Schedule 142

7.4 Controlling Flow with the Kanban System 143

7.5 Reducing Setup Time and Lot Sizes 147

7.6 Changing Layout and Maintaining Equipment 148

7.7 Cross-Training, Rewarding, and Engaging Workers 149

7.8 Guaranteeing Quality 150

7.9 Changing Relationships with Suppliers 151

7.10 Implementation of Lean 152

7.11 Key Points and Terms 155

Student Internet Exercises 156

Solved Problems 156

Discussion Questions 157

Problems 158

Selected Bibliography 159

Part 3 Quality 161

Chapter 8 Managing Quality 162

8.1 Quality as Customer Judgments 163

8.2 Manufacturing Quality 164

8.3 Service Quality 166

8.4 Quality Planning, Control, and Improvement 167

8.5 Ensuring Quality in the Supply Chain 171

8.6 Quality, Cost of Quality, and Financial Performance 173

8.7 Quality Pioneers 176

W. Edwards Deming 177

Joseph Juran 178

8.8 ISO 9000 Standards 179

8.9 Malcolm Baldrige Award 181

8.10 Why Some Quality Improvement Efforts Fail 183

8.11 Key Points and Terms 185

Student Internet Exercises 186

Discussion Questions 186

Selected Bibliography 187

Chapter 9 Quality Control and Improvement 189

9.1 Design of Quality Control Systems 190

9.2 Process Quality Control 193

9.3 Attribute Control Chart 195

9.4 Variables Control Chart 196

9.5 Using Control Charts 197

9.6 Process Capability 198

9.7 Continuous Improvement 200

9.8 Six Sigma 204

9.9 Lean and Six Sigma 207

9.10 Quality Control and Improvement in Industry 208

9.11 Key Points and Terms 210

Student Internet Exercises 211

Solved Problems 211

Discussion Questions 214

Problems 214

Selected Bibliography 218

Part 4 Capacity and Scheduling 221

Chapter 10 Supply Chain Management 222

10.1 Supply Chain and Supply Chain Management 223

10.2 Purchasing and Logistics 227

10.3 Measuring Supply Chain Performance 230

10.4 Supply Chain Dynamics-the Bullwhip Effect 232

10.5 Improving Supply Chain Performance 235

10.6 Supply Chain Structural Improvements 236

10.7 Supply Chain Infrastructural Improvements 240

10.8 Technology and Supply Chain Management 242

10.9 Supply Chain Risk and Resilience 245

10.10 Key Points and Terms 247

Student Internet Exercises 249

Discussion Questions 249

Selected Bibliography 250

Chapter 11 Forecasting 251

11.1 Forecasting for Decision Making 253

11.2 Qualitative Forecasting Methods 255

11.3 Time-Series Forecasting 257

11.4 Moving Average 258

11.5 Exponential Smoothing 260

11.6 Forecasting Accuracy 263

11.7 Advanced Time-Series Forecasting 265

11.8 Causal Forecasting Methods 267

11.9 Selecting a Forecasting Method 268

11.10 Collaborative Planning, Forecasting, and Replenishment 271

11.11 Key Points and Terms 273

Student Internet Exercises 274

Solved Problems 274

Discussion Questions 276

Problems 276

Selected Bibliography 279

Supplement: Advanced Methods 280

Chapter 12 Capacity Planning 285

12.1 Facilities Decisions 288

12.2 Facilities Strategy 288

Amount of Capacity 289

Size of Facilities 290

Timing of Facility Decisions 291

Facility Location 292

Types of Facilities 293

12.3 Sales and Operations Planning Definition 294

12.4 Cross-Functional Nature of S&OP 296

12.5 Planning Options 297

12.6 Basic Aggregate Planning Strategies 297

12.7 Aggregate Planning Costs 301

12.8 Aggregate Planning Example 302

12.9 Key Points and Terms 307

Student Internet Exercises 308

Solved Problems 308

Discussion Questions 313

Problems 314

Selected Bibliography 318

Chapter 13 Scheduling Operations 320

13.1 Batch Scheduling 321

13.2 Gantt Charting 323

13.3 Finite Capacity Scheduling 326

13.4 Theory of Constraints 328

13.5 Priority Dispatching Rules 330

13.6 Planning and Control Systems 332

13.7 Key Points and Terms 334

Student Internet Exercises 335

Solved Problems 335

Discussion Questions 337

Problems 338

Selected Bibliography 339

Chapter 14 Project Planning and Scheduling 341

14.1 Objectives and Trade-Offs 342

14.2 Planning and Control in Projects 343

14.3 Scheduling Methods 346

14.4 Constant-Time Networks 347

14.5 PERT Method 352

14.6 CPM Method 356

14.7 Use of Project Management Concepts 358

14.8 Key Points and Terms 360

Student Internet Exercises 361

Solved Problems 361

Discussion Questions 365

Problems 365

Selected Bibliography 367

Part 5 Inventory 369

Chapter 15 Independent Demand Inventory 370

15.1 Purpose of Inventories 373

15.2 Costs of Inventories 374

15.3 Independent versus Dependent Demand 376

15.4 Economic Order Quantity 377

15.5 Continuous Review System 381

15.6 Periodic Review System 386

15.7 Using P and Q Systems in Practice 389

15.8 Vendor Managed Inventory 391

15.9 ABC Classification of Inventory 392

15.10 Key Points and Terms 393

Student Internet Exercises 394

Solved Problems 394

Discussion Questions 397

Problems 397

Selected Bibliography 400

Supplement: Advanced Models 401

Chapter 16 Materials Requirements Planning and ERP 404

16.1 The MRP System 406

16.2 MRP versus Order-Point Systems 409

16.3 Parts Explosion-How an MRP System Works 410