Giáo trình Operation management processes and supply chains 11e global edition by ritzman

Giáo trình Operation management processes and supply chains 11e global edition by ritzman Giáo trình Operation management processes and supply chains 11e global edition by ritzman Giáo trình Operation management processes and supply chains 11e global edition by ritzman Giáo trình Operation management processes and supply chains 11e global edition by ritzman Giáo trình Operation management processes and supply chains 11e global edition by ritzman

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based on his or her test results The Study Plan links directly to interactive tutorial exercises for topics the student has not mastered Operations Management PROCESSES AND SUPPLY CHAINS Eleventh Edition Global Edition LEE J KRAJEWSKI Professor Emeritus at The Ohio State University and the University of Notre Dame MANOJ K MALHOTRA University of South Carolina LARRY P RITZMAN Professor Emeritus at The Ohio State University and Boston College Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Vice President, Business Publishing: Donna Battista Acquisitions Editor: Daniel Tylman Senior Acquisitions Editor, Global Editions: Steven Jackson Associate Editor, Global Editions: Paromita Banerjee Editorial Assistant: Linda Albelli Vice President, Product Marketing: Maggie Moylan Director of Marketing, Digital Services and Products: Jeanette Koskinas Executive Product Marketing Manager: Anne Fahlgren Field Marketing Manager: Lenny Ann Raper Senior Strategic Marketing Manager: Erin Gardner Team Lead, Program Management: Ashley Santora Program Manager: Kathryn Dinovo Team Lead, Project Management: Jeff Holcomb Project Manager: Alison Kalil Senior Manufacturing Controller, Global Editions: Trudy Kimber Operations Specialist: Carol Melville Creative Director: Blair Brown Art Director: Jon Boylan Vice President, Director of Digital Strategy and Assessment: Paul Gentile Manager of Learning Applications: Paul DeLuca Digital Editor: Megan Rees Director, Digital Studio: Sacha Laustsen Digital Studio Manager: Diane Lombardo Digital Studio Project Manager: James Bateman Digital Content Team Lead: Noel Lotz Digital Content Project Lead: Courtney Kamauf Media Production Manager, Global Editions: Vikram Kumar Full-Service Project Management and Composition: Lumina Datamatics Interior Designer: Lumina Datamatics Cover Designer: Lumina Datamatics Cover Art: © welcomia/Shutterstock Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2016 The rights of Lee J Krajewski, Manoj K Malhotra, and Larry P Ritzman to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled Operations Management: Processes and Supply Chains, 11th Edition, ISBN 978-0-13-387213-2 by Lee J Krajewski, Manoj K Malhotra, and Larry P Ritzman, published by Pearson Education © 2016 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 ISBN 10: 1-292-09386-2 ISBN 13: 978-1-292-09386-4 Typeset in Utopia Std by Lumina Datamatics Printed and bound by Courier Kendallville in The United States of America Dedicated with love to our families ■ Judie Krajewski Christine and Gary; Gabrielle Selena and Jeff; Alex Lori and Dan; Aubrey, Madeline, Amelia, and Marianna Carrie and Jon; Jordanne, Alaina, and Bradley Virginia and Jerry Virginia and Larry ■ Maya Malhotra Vivek, Pooja, and Neha Santosh and Ramesh Malhotra Indra and Prem Malhotra; Neeti, Neil, and Niam Ardeshna; Deeksha Malhotra Sadhana Malhotra Leela and Mukund Dabholkar Aruna and Harsha Dabholkar; Aditee Mangala and Pradeep Gandhi; Priya and Medha ■ Barbara Ritzman Karen and Matt; Kristin and Alayna Todd; Cody, Cole, Taylor, and Clayton Kathryn and Paul Mildred and Ray This page intentionally left blank About the Authors Lee J Krajewski is Professor Emeritus at The Ohio State University and Professor Emeritus at the University of Notre Dame While at The Ohio State University, he received the University Alumni Distinguished Teaching Award and the College of Business Outstanding Faculty Research Award He initiated the Center for Excellence in Manufacturing Management and served as its director for four years At the University of Notre Dame, he held the William and Cassie Daley Chair in Management In addition, he received the National President’s Award and the National Award of Merit of the American Production and Inventory Control Society He served as president of the Decision Sciences Institute and was elected a Fellow of the Decision Sciences Institute in 1988 He received the Distinguished Service Award in 2003 Lee received his PhD from the University of Wisconsin Over the years, he has designed and taught courses at both graduate and undergraduate levels on topics such as operations strategy, introduction to operations management, operations design, project management, and manufacturing planning and control systems Lee served as the editor of Decision Sciences, was the founding editor of the Journal of Operations Management, and has served on several editorial boards Widely published himself, Lee has contributed numerous articles to such journals as Decision Sciences, Journal of Operations Management, Management Science, Production and Operations Management, International Journal of Production Research, Harvard Business Review, and Interfaces, to name just a few He has received five best-paper awards Lee’s areas of specialization include operations strategy, manufacturing planning and control systems, supply chain management, and master production scheduling Manoj K Malhotra is the Jeff B Bates Professor in the Darla Moore School of Business and has served as the chairman of the Management Science Department at the University of South Carolina (USC), Columbia, since 2000 He is also the founding director of the Center for Global Supply Chain and Process Management (GSCPM), which has been in operation since 2005 He earned an engineering undergraduate degree from the Indian Institute of Technology (IIT), Kanpur, India, in 1983, and a PhD in operations management from The Ohio State University in 1990 He is a Fellow of the Decision Sciences Institute (DSI) and the American Production and Inventory Management Society (APICS) Manoj has conducted seminars and consulted with firms such as Avaya, Continental, Cummins Turbo Technologies, John Deere, Metso Paper, Palmetto Health, Sonoco, Prysmian, Verizon, Walmart, and Westinghouse-Toshiba among others Apart from teaching operations management, supply chain management, and global business issues at USC, Manoj has also taught at the Terry School of Business, University of Georgia; Wirtschaftsuniversität Wien in Austria; and the Graduate School of Management at Macquarie University, Australia His research has thematically focused on the deployment of flexible resources in manufacturing and service firms, operations and supply chain strategy, and on the interface between operations management and other functional areas of business His work on these and related issues has been published in the leading refereed journals of the field such as Decision Sciences, European Journal of Operational Research, Interfaces, Journal of Operations Management, and Production and Operations Management Manoj has been recognized for his pedagogical and scholarly contributions through several teaching and discipline-wide research awards He is the recipient of the Michael J Mungo Outstanding Graduate Teaching Award in 2006, the Carolina Trustee Professor Award in 2014, and the Breakthrough Leadership in Research Award in 2014 from the University of South Carolina He is active in professional organizations such as Decision Sciences Institute (DSI) and Production and Operations Management Society (POMS), and has served as the program chair for international conferences at both DSI and POMS He also serves on the editorial boards of top-tier journals in the field ABOUT THE AUTHORS Larry P Ritzman is Professor Emeritus at The Ohio State University and Professor Emeritus at Boston College While at The Ohio State University, he served as department chairman and received several awards for both teaching and research, including the Pace Setters’ Club Award for Outstanding Research While at Boston College, he held the Thomas J Galligan, Jr chair and received the Distinguished Service Award from the School of Management He received his doctorate at Michigan State University, having had prior industrial experience at the Babcock and Wilcox Company Over the years, he has been privileged to teach and learn more about operations management with numerous students at all levels—undergraduate, MBA, executive MBA, and doctorate Particularly active in the Decision Sciences Institute, Larry has served as council coordinator, publications committee chair, track chair, vice president, board member, executive committee member, doctoral consortium coordinator, and president He was elected a Fellow of the Decision Sciences Institute in 1987 and earned the Distinguished Service Award in 1996 He has received three best-paper awards He has been a frequent reviewer, discussant, and session chair for several other professional organizations Larry’s areas of particular expertise are service processes, operations strategy, production and inventory systems, forecasting, multistage manufacturing, and layout An active researcher, Larry’s publications have appeared in such journals as Decision Sciences, Journal of Operations Management, Production and Operations Management, Harvard Business Review, and Management Science He has served in various editorial capacities for several journals Brief Contents USING OPERATIONS TO CREATE VALUE SUPPLEMENT A PART Process Management PROCESS STRATEGY AND ANALYSIS MANAGING QUALITY PLANNING CAPACITY SUPPLEMENT B PART DECISION MAKING MODELS WAITING LINE MODELS MANAGING PROCESS CONSTRAINTS DESIGNING LEAN SYSTEMS MANAGING EFFECTIVE PROJECTS 69 69 115 155 179 197 227 257 Customer Demand Management 295 FORECASTING DEMAND MANAGING INVENTORIES 11 EFFICIENT RESOURCE PLANNING 295 337 379 393 429 457 Supply Chain Management 503 12 DESIGNING EFFECTIVE SUPPLY CHAINS 15 MANAGING SUPPLY CHAIN SUSTAINABILITY 503 531 563 597 Appendix 619 SUPPLEMENT C SPECIAL INVENTORY MODELS 10 PLANNING AND SCHEDULING OPERATIONS SUPPLEMENT D PART 21 49 LINEAR PROGRAMMING MODELS 13 SUPPLY CHAINS AND LOGISTICS 14 INTEGRATING THE SUPPLY CHAIN Normal Distribution References 621 Glossary 629 Name Index 643 Subject Index 647 MYOMLAB SUPPLEMENTS Supplement E SIMULATION E-1 Supplement F FINANCIAL ANALYSIS F-1 Supplement G ACCEPTANCE SAMPLING PLANS G-1 Supplement H MEASURING OUTPUT RATES H-1 Supplement I LEARNING CURVE ANALYSIS I-1 Supplement J OPERATIONS SCHEDULING J-1 Supplement K LAYOUT K-1 This page intentionally left blank www.downloadslide.net 650 SUBJECT INDEX Customer demand planning (CDP), 578 Customer-induced volume changes, 566 Customer involvement advantages of, 76–77 decision patterns, 80–81 defined, 71 disadvantages of, 78 at eBay, 77 in process strategy, 76–78 Customer population, 180–181 Customer relationship process (CRM), 27 customer service, 582 marketing, 581 order placement, 581 Customer relationships, 515 Customers external, 25, 119 internal, 25, 119 proximity to, 536 Customer satisfaction, 119 conformance to specifications, 119 fitness for use, 119 psychological impressions, 119 support, 119 value, 119 Customer service, 340, 505, 582 Customer support, 119 Customization, 73, 515–516 Cycle counting, 346 Cycle inventory, 343, 345, 347, 348f, 380 Cycle-service level, 354 Cycle time, 191, 209, 212 Daiichi nuclear reactors, 39 Data base, 315 nonbase, 315 Data analysis tools, 90–95 bar charts, 90 cause-and-effect diagrams, 92 checklists, 90 graphs, 93–95 histograms, 90 Pareto charts, 91–92, 346 performance evaluation, 92–93 scatter diagrams, 92 Databases, 315 Data entry screens, 439–440, 439f Data snooping, 94 DBR (drum-buffer-rope) systems, 204–205, 204f DCs (distribution centers), 533, 546 Deceptive business practices, 118 Decision areas for management, 191–192 arrival rates, 191 line arrangement, 192 priority rule, 192 server efficiency, 192 service facilities, 191 Decision maker, project manager as, 260 Decision making break-even analysis, 49–53 under certainty, 55 decision theory, 54–57 decision trees, 57–59, 167 maximax, 55 maximin, 55 preference matrix, 53–54, 547–548 process strategy and, 76–80 under risk, 56–57 under uncertainty, 55–56 Decision-making tools, computerized, 42 Decision patterns for manufacturing processes, 81 for service processes, 80 Decisions on making forecasts, 300 forecasting technique, choosing the type of, 300 what to forecast, 300 Decision theory, 54–57 Decision trees, 57–59, 167 Decision variables, 429–430 Deckers Outdoor Corporation, 333–334 Dedication, project manager and, 260 Deepwater Horizon drilling rig, 197 Defects, 116, 229t rework, 117 scrap, 117 Degeneracy, 441 Delay, on process charts, 89 Delivery speed, 32t, 35 Delivery system needs, 31 Dell Computers, 165, 513, 515, 600, 602, 603 Delphi Automotive Plc, 574–575 Delphi method, 304 Delta Airlines, 160, 202 Demand distribution of during lead time, 354–355, 355f management options, 298–300 managing, 297–300 patterns of, 297–298, 298f reorder point and, 351–357, 352f target inventory level and, 359–360 Demand During the Protection Interval Simulator, 361 Demand management, 298 Demand management options, 298–300 backlogs, 299 backorders, 299–300 complementary products, 298 prescheduled appointments, 299 promotional pricing, 298–299 reservation systems, 299 revenue management, 299 stockouts, 299–300 Demand patterns, 297–298, 298f cyclical, 297, 298f horizontal, 297, 298f random, 297, 298f seasonal, 297, 298f trend, 297, 298f Deming Wheel, 121 Dependent demand, 459–460, 460f Dependent variables, 304 Deposit fee, 603 Derived values, 402 Design collaboration, 573–574 Design stage, new service/product development process, 569 Design team, 84, 95–96 Design-to-order (DTO) strategy, 76, 513, 513f Deterioration, 340 Development stage, new service/ product development process, 569–570 DHL, 597 Dillards, 342 Direct costs, 267 Disaster defined, 608 relief operations, 609 types of, 609 Disaster relief supply chains, 608–611 managing, 609–611 organizing, 608–609 Disciplinary practices, 611 www.downloadslide.net SUBJECT INDEX Discover, 228 Discrimination, 611 Diseconomies of scale, 158–159, 159f Disney World, 80 Distribution centers (DCs), 533, 546 DMAIC process, 84 Documentation of processes flowcharts, 84–85, 122 service blueprints, 86 swim lane flowcharts, 85–86, 85f work measurement techniques, 86–88 Dodge Grand Caravan, 212 Dogs-R-US, 524t Domino’s Pizza, 545 Donor independence, 610 Dow Chemical Company, 476–477 DOW Corning, 476–477 Downstream, in supply chain integration, 565, 565f, 582 Dreamliner plane, 518–519, 534 Drop shipping, 503–504 Drum-buffer-rope (DBR) systems, 204–205, 204f DTO (design-to-order) strategy, 76, 513, 513f Dummy plants, 543 Duraweld Ltd., 256 Dynamic sales volume, 505 Earliest due date (EDD), 410, 411–412 Earliest finish time (EF), 264 Earliest start time (ES), 264 Early supplier involvement, 573 Earthquake, in Japan, 39 eBay, 77, 576 E-commerce (electronic commerce), 581 Economic dependency, 574 Economic order quantity (EOQ) assumptions of, 347, 379 calculation of, 347–350, 348f managerial insights from, 351 sensitivity analysis, 351, 351f Economic production lot size (ELS), 380–381, 381f Economic Production Lot Size Solver, 381f Economies of scale, 158 Economies of scope, 80 EDD (earliest due date), 410, 411–412 EDLP (everyday low pricing), 583 EF (earliest finish time), 264 Efficiency, 210 Efficiency curve, for supply chains, 506, 506f Elastec, 198 Electronic commerce (e-commerce), 581 Electronic data interchange (EDI), 576 Elemental standard data approach, 86–87 ELS (economic production lot size), 380–381, 381f Emerging markets, 505–506, 505f, 506f Employee empowerment, 120–121 Employee involvement, in total quality management, 119–121 Employee-period equivalents, 403 Employees See Workforce End item, 464–465 Energy costs, 517 Energy efficiency example, 604–605 freight density, 605–607 transportation distance, 603–604 transportation mode, 607–608 Engineering changes, 567 Enterprise process, 475 Enterprise resource planning (ERP), 24, 475–477, 476f application modules, 476f defined, 475 designing of, 475–476 implementation by SAP, 476–477 Environment, and material resource planning, 474 Environmental disruptions, 566 Environmental impact, 534 Environmental issues, 40 Environmental protection, 598 Environmental responsibility, 599, 600t Environmental scanning, 29 EOQ (economic order quantity) See Economic order quantity (EOQ) Epson, 602 Equipment, 78 Equipment utilization, 341 ERP (Enterprise Resource Planning) Systems, 24 Error analysis, 301, 301f ES (earliest start time), 264 Ethical failure costs, 117–118 Ethical issues, 40 651 Ethics, quality and, 117–118 EU (European Union), 38, 39 Euclidean distance, 537 European Union (EU), 38, 39 Everyday low pricing (EDLP), 583 Excel spreadsheets, 180 Exchanges, 576 Execution phase, 277 Executive opinion, 304 Expansion, timing and sizing, 160–162 Expansionist strategy, 160, 160f at Sharp Corporation, 161 Expected payoff, 58 Expected value, 56 of an alternative, 579 Expected value decision rule, 579, 580 Expedia, 72 Expediting, 410 Exponential distribution, 183 Exponential smoothing, 308–309 External customers, 25, 119 External failure costs, 117 External suppliers, 25 Facilitator in process analysis, 95 project manager as, 259 Facilities, 30 Facility location, 533, 579, 612 See also Supply chain logistic networks FCFS (first-come, first-served), 410, 411–412 Feasibility, range of, 441 Feasible region, 430, 434–435f FedEx, 507, 597–598 Fee, 603 FG (finished goods), 342 Finance, integration of in a business, 23f Financial institutions, regulation and, 38 Financial measures, 199t, 510–511 Financial plan, 396 Financial responsibility, 599, 600t Financial risks, 583–584 Finished goods (FG), 342 Finish node, 208 Finish times, 264–266 Finite customer population, 180 Finite-source model, 189–190 First-come, first-served (FCFS), 410, 411–412 www.downloadslide.net 652 SUBJECT INDEX Fishbone diagram, 92 Fiskars Brands, Inc., 317 Fiskars Corporation, 317 Fitness for use, 119 Fitness Plus, 177–178 5S Kaizen Cycle, 235f 5S (Five S) practices, 234–235 Five S (5S) practices, 234–235 Fixed automation, 79 Fixed costs, 50, 158 Fixed interval reorder system, 358 Fixed order quantity (FOQ), 351, 468–469 Fixed schedule, 408 Flashy Flashers, Inc., 499–501 Flexible automation, 79, 345 Flexible flow, 73 Flexible workforce, 78, 234 Flextronics, 258 Floating bottlenecks, 202 Flowcharts, 84–85, 122 Flowers-on-Demand, 506–507 Flow time, 411 Focus by process segments, 81 strategic fit, 81–82 Focused factories, 82 Focused service operations, 82 Focus forecasting, 317 Follow the leader strategy, 161 FOQ (fixed order quantity), 351, 468–469 Forced labor, 611 Ford Motor Company, 310, 559 Forecast errors, 301–304 calculating measures of, 303 computer support, 304 cumulative sum of forecast errors (CFE), 301–302 definition of, 301 detailed calculations of, 302f, 311f dispersion of, 302 error measures, 302f mean absolute deviation (MAD), 302 mean absolute percent error (MAPE), 302 mean squared error (MSE), 302 standard deviation of the errors, 302 Forecasting, 295–336 causal methods, 304–306 collaboration and, 318 combination forecasts, 316, 317 computer support, 304 at Deckers Outdoor Corporation, 333–334 definition of, 297 demand management options, 298–300 demand patterns, 297–298 errors in, 301–304 estimating the average, 307–309 at Fiskars Corporation, 317 focus, 317 with holdout sample, 314 introduction to, 297 judgment methods, 304 key decisions in, 300 at Kimberly-Clark, 295–296 linear regression, 304–306 multiple techniques, using, 317–318 as a nested process, 318 as a process, 315–318 quantitative forecasting method, 300, 304 technique selection, 300 time-series methods, 306–315 with tracking signal, 314–315 what to forecast, 300 at Yankee Fork and Hoe Company, 334–335 Forecasting process, 315–318 See also Forecasting adding collaboration to, 318 combination forecasts and, 317 inputs of, 315 multiple forecasting methods, using, 316–318 as a nested process, 318 outputs of, 315 principles for, 316t typical, 315–316 Forecasting techniques, 300 causal methods, 300 judgment methods, 300 time-series analysis, 300 trend projection with regression, 300 Forward integration, 519 Forward placement, 546–547, 546f Forward Response Centers, 609 Freedom of association, 611 Freight costs, 570 Freight density, 605–607 Front-office, 73 Front-office processes, 73 FTD, 507 FUJIFILM Imaging Colorants, 402 Full launch, of new services/products, 570 Functional benchmarking, 96 Functional organizational structure, 260 Futures contract, 583 Future state drawing, 239, 239f Gantt chart, 266, 267f, 406 Gantt progress chart, 406, 406f Gantt workstation chart, 406–407, 407f Gap, Inc., 31 General Electric (GE), 122 General Motors (GM), 24, 39, 160, 246, 574–575 Geographical information system (GIS), 544–546 defined, 544 fast-food chains using, 545 method for locating multiple facilities, 546 using, 544–545 Gillette, 79, 505, 533 GIS (geographical information system) See Geographical information system (GIS) Given constant, 430 Global access, 581 Global competition, 37–39 comparative cost advantages and, 38 disadvantages of, 39 Globalization, 39 Global strategies, 30–31 locating abroad, 30–31 strategic alliances, 30 GM (General Motors), 24, 39, 160, 246, 574–575 Goods and services, demand for imports, 38 Goods sold, costs of, 509, 511 Goodyear Tire and Rubber, 393 Graphic analysis, 432–438 algebraic solution, 436–437 identify the feasible region, 430, 434–435, 434f–435f plot the constraints, 432–433 plot the objective function line, 435–436f sensitivity analysis, 438, 438t www.downloadslide.net SUBJECT INDEX slack and surplus variables, 437–438 visual solution, 436 Graphs, 93–95 Green Belts, 84 Green purchasing, 572 Gross requirements, 466, 466f Group technology (GT), 238, 345 GT (group technology), 238, 345 Gulf of Mexico oil spill, 197–198 Haipei, Inc., 377 Hallmark, 400f, 525 Handling costs, 340 Handoffs, 86 Harry Potter series, 22 HassiaWaters International, 595–596 Health and safety, 611 Heart to Heart International, 609 Hedging, 583, 584t Heijunka, 233–234, 237 Heuristic decision rules, 211t Hewlett-Packard, 82, 602 High employee turnover, 610 Hillary and Adams, Inc., 604 Hiring costs, 400t Histograms, 90 History file, 304, 315 Holdout sample, 314 Honda, 231 Honda Civic, 34 Hospitals, 478 Hotels, 478 House of Toyota, 236–237 Humanitarian logistics, 599 See also Logistics Humanitarian supply chain operations, 609, 609f Hurricane Sandy, 296 Hybrid-office, 73 Hybrid-office processes, 73 IBM, 257, 318 Idle time, 210 Immediate predecessors, 207 Imperial Chemical Industries PLC, 82 Import quotas, 38 Imports, demand for, 38 Inappropriate processing, 229t Independent demand items, 342 Independent variables, 305 India, 24, 38, 40 Indirect costs, 267 Industrial robot, 79 Infinite customer population, 180 Information exchange, 577–578 Information gathering, 83 Information technology, 24, 36–37 Innovation, 599 at Crayola, 47–48 operational, 22 supply chains and, 41–42 In-plant representative, 231 Input measures of capacity, 157–158 using, 162–163 Inputs, 23, 25 to forecasting process, 315 Input values, 402 Inspection, on process charts, 89 Insurance, on inventory, 340 Integer programming, 430 Interarrival times, 183 Intermediate item, 465 Intermodal shipments, 608 Internal benchmarking, 96 Internal customers, 25, 119 Internal failure costs, 117 Internal suppliers, 25 International Federation of Red Cross and Red Crescent Societies, 609 International Organization for Standardization, 137 Internet, 517 Invacare Corporation, 536 Inventory (I) accounting, 342–343 anticipation, 343, 345, 398 calculation and spreadsheet, 402 creation of, 339f cycle, 343, 345, 347, 348f, 380 definition of, 339 estimation of, 344 financial measures and, 199t holding, 400t insurance on, 340 large inventories, pressures for, 340–342 in lean systems, 246–247 operational, 343–344 pipeline, 344, 345–346 reduction tactics, 345–346 safety stock, 343, 345, 355 small inventories, pressures for, 340 of successive stocking points, 343f types of, 342–344 653 vendor-managed, 231 waste in, 229t Inventory control systems, 379–386 comparative advantages of Q and P systems, 361 continuous review (Q) system, 351–357 noninstantaneous replenishment, 379–381, 380f one-period decisions, 384–386, 385f periodic review (P) system, 358– 361, 358f quantity discounts, 341, 382–384, 382f, 384f Inventory costs, 570–571 Inventory holding cost, 340, 347 Inventory management, 337–361 ABC analysis, 346–347, 346f across the organization, 339 at Crayola, 374–375 economic order quantity, 347–351 inventory trade-offs, 339–342 at Netflix, 337–338 supply chain ethics, 612 at Walmart, 341–342 Inventory measures, 508–510 Inventory placement, 546–547, 546f Inventory pooling, 546 Inventory position (IP), 351 Inventory record, 465–468 defined, 466 gross requirements, 466, 466f planned order release, 467–468, 467f planned receipts, 467 projected on-hand inventory, 466–467 scheduled receipts, 466, 466f Inventory strategies, 75–76 Inventory turnover, 509 IP (inventory position), 351 ISO 9001:2008 standards, 137 ISO 28000: 2007, 586 ISO 140001:2004 Environmental Management System, 137–138 ISO certification, benefits of, 138 Iso-cost line, 435 Iso-profit line, 435 Japan, earthquake in, 39 JCPenney, 342, 351 JDA Software Group, 394 Jidoka, 232, 237 www.downloadslide.net 654 SUBJECT INDEX JIT II system, 231 JIT (just-in-time) philosophy, 229 JIT system, 230 Job process, 75 Johnson & Johnson, 318 Joint ventures, 30, 518 Jollibee Foods Corporation, 31 Judgmental adjustments, 317 Judgment methods, 300, 304 Delphi method, 304 executive opinion, 304 market research, 304 salesforce estimates, 304 Just-in-time (JIT) philosophy, 229 Just-in-time system (JIT), 612 K-9, Inc., Stores, 524t Kaizen, 121, 230, 255 Kanban system, 243–245 Kimberly-Clark, 295–296 KitchenHelper Corp., 527 Kitchen Tidy, 607 Knowledge, contextual, 304 Kvichak Marine, 198 L4L (lot-for-lot) rule, 469 Labor classification, 246 Labor climate, 534 Labor laws, 517 Labor productivity, 37 Labor utilization, 341 Land’s End, 513 Large batches, 75 Late deliveries of materials, 566 Latest finish time (LF), 264 Latest start time (LS), 264 Layoff costs, 400t Layout definition of, 71, 76 for lean systems, 237–238 plant, 112f in process strategy, 76 LCL (lower control limit), 126 Lead time definition of, 30 demand, distribution of, 354–355, 355f in line balancing, 209n reorder point and, 352–357, 352f target inventory level and, 359–361 Lean systems, 227–256 at Autoliv, 254–255 automation, 234 continuous improvement, 229–230 definition of, 228 Five S (5S) practices, 234–235 flexible workforce, 234 human costs of, 246 introduction to, 228–229 inventory and scheduling, 246–247 Kanban system, 243–245 layout design, 237–238 operational benefits and implementation issues, 245–247 at Panasonic Corporation, 239 process considerations, 232–236 pull method of work flow, 232 push method of work flow, 232 quality at the source, 232–233 standardization, 234 strategic characteristics of, 231–237 supply chain considerations, 231 Total Preventive Maintenance (TPM), 235–236 Toyota production system, 236–237 uniform workstation loads, 233–234 value stream mapping (VSM), 239–243 Learning curve, 88, 88f Learning curve analysis, 87–88 Lenovo, 39 Level strategy, 399–400, 403–405, 405f LF (latest finish time), 264 LG Electronics, 120 Life cycle, 277, 277f Linearity, 430 Linear programming, 429–445 computer analysis, 438–441 computer output, 439–441 definition of, 429 graphic analysis, 432–438 models characteristics, 429–430 problem formulation, 430–432 simplex method, 438–439 transportation method, 441–445 Linear regression, 304–306 dependent variable, 304 forecasting product demand by using, 305–306 independent variables, 305 Line balancing, 207–211 cycle time, 209 defined, 207 desired output rate, 209 idle time, efficiency, and balance delay, 210 output rate, 209 precedence diagram, 207–208 solution, 210–211 theoretical minimum, 209 Line charts, 93 Line flow, 73 Line process, 75, 207–212 Little’s law, 188–189, 244 Load–distance method, 537–540 center of gravity, 538–540 defined, 537 distance measures, 537 load–distance score, 538 Locating abroad, 30–31 Locus of control, 576–577 Logistics See also Humanitarian logistics; Reverse logistics capacity and, 579 costs, 517 humanitarian, 599 in lean systems, 247 order fulfillment process, 578–580 reverse, 600–603 Long-term capacity decisions alternatives, developing, 164 alternatives, evaluating, 164–165 capacity gaps, identifying, 164 capacity requirements, estimating, 162–164 Long-term capacity planning, 157–159 diseconomies of scale, 158–159, 159f economies of scale, 158, 159f measurement of capacity and utilization, 157–158 systematic approach, 162–165 Lot-for-lot (L4L) rule, 469 Lots, 231 Lot sizes, 231, 339 Lot sizing, 343, 349, 380f Lot-sizing rules, 468, 470 Low-cost hopping, 583 Lower control limit (LCL), 126 Lowe’s, 398f LS (latest start time), 264 Machine productivity, 37 Make-or-buy decisions, 519–520 Make-to-order (MTO) strategy, 76, 513, 513f www.downloadslide.net SUBJECT INDEX Make-to-stock (MTS) strategy, 76, 512, 512f Malcolm Baldrige National Quality Award, 138 Malcolm Baldrige National Quality Improvement Act, 138 Management decision areas for, 191–192 role of, 37 systems, 611 Manufacturing process structure in, 75 productivity, 36 supply chain designs for, 507–508, 508f supply chain location in, 534–535 Manufacturing firms, 397 Manufacturing processes, 25–26 automation, 79 bottlenecks, management of, 202–205 decision patterns for, 81 vs service processes, 25–26 Manufacturing resource planning (MRP II), 474 Manugistics, 318 MapInfo, 545 MapInfo’s Smart Site Solutions, 545 MapPoint, 545, 546 MapQuest, 545 Marco’s Franchising, 545 Market analysis, 31 market segmentation, 31 needs assessment, 31 Market effect, of offshoring, 517 Market Force Information, 228 Marketing, 23, 23f, 581 forecasting and, 297 Market needs, 31 after-sale technical support, 31 delivery system needs, 31 international financial markets, 31 service or product needs, 31 volume needs, 31 Market research, 304 Markets, proximity to, 534, 536 Market segmentation, 31 Mass customization, 76, 504, 515–516 competitive advantages, 515 supply chain design for, 516 Mass production, 24, 76 Master Black Belts, 84 MasterCard, 228 Master production schedule (MPS), 398, 460–464, 461f available-to-promise quantities, 463, 463f developing, 461–463, 462f–463f freezing, 463 and MRP explosion, 470–473 process, 461f reconciling with sales and operations plans, 464 timing and size of, 462 Master Production Scheduling Solver, 463f Material costs, 570 Material requirements planning (MRP), 398, 457–460, 459f Material Requirements Planning Solver, 472f, 473 Materials costs, 158 Materials handling, 88 Matrix, preference, 53–54 Matrix organizational structure, 260 Matsushita Corporation, 239 McDonald’s Corporation, 69–70, 179, 533 McDonnell Douglas, 158 Mean, 125 Mean absolute deviation (MAD), 302 Mean absolute percent error (MAPE), 302 Mean bias, 301 Mean squared error (MSE), 302 Memorial Hospital, 426–427 Metrics, 83 Michelin, 393 Micrografx, 85 Microsoft Corporation, 257–258, 259 Microsoft PowerPoint, 85 Microsoft Project, 266 Microsoft Visio, 85 Minimum-cost schedule, 268 Min-Yo Garment Company, 222–225 Mitsubishi, 82 Mixed-model assembly, 234 Mixed-model line, 212 Mixed strategy, 400, 403f Mode selection, 579 Modular design, 516 Moment of truth, 72 Most likely time, 273 Motion, 229t Motorola, 120, 122, 152 655 Motorola Mobility, 300 Moto X phone, 300 MPS (master production schedule) See Master production schedule (MPS) MRP (material requirements planning), 457–460, 459f MRP explosion, 459, 464–475 bill of materials, 464–465 and core processes, 474–475 and the environment, 474 inventory records, 465–468 and master production schedule, 470–473 output from, 471–474 planning factors, 468–471 and supply chain linkages, 474–475 MRP II (manufacturing resource planning), 474 MTO (make-to-order) strategy, 76, 513, 513f MTS (make-to-stock) strategy, 76, 512, 512f Muda, 229t Multi-Enterprise Demand Sensing (MDS) system, 296 Multifactor productivity, 37 Multiple-channel, multiple-phase arrangement, 182 Multiple-channel, single-phase arrangement, 182 Multiple forecasting methods, 316–318 Multiple regression analysis, 306 Multiple-server model, 187–188 Multiplicative seasonal method, 312–313 Mustang restoration, 293–294 NAFTA (North American Free Trade Agreement), 38, 39 Naïve forecast, 307 National Family Opinion, 152 National Institute of Standards and Technology (NIST), 138 National Labor Relations Board (NLRB), 534 NC (normal cost), 267 Near-critical paths, 276 Nearest neighbor (NN) heuristic, 604–605 www.downloadslide.net 656 SUBJECT INDEX Near-shoring, 517 Needs assessment, 31 Negotiation, 574–576 Nested processes, 25 Netflix, 337–338 Net income, 511 Network diagram, 261 Newsboy problem, 384 New service/product development process, 27, 568–570, 569f New service/product introduction, 567 Next-shoring, 517 99 Restaurants and Pubs, 545 NIST (National Institute of Standards and Technology), 138 NLRB (National Labor Relations Board), 534 Nocturne, 457–458 Nodes, 57 Nominal value, 134 Nonbase data, 315 Noninstantaneous replenishment, 379–381, 380f Nonnegativity, 430 Normal cost (NC), 267 Normal time (NT), 267 North American Free Trade Agreement (NAFTA), 38, 39 Northwest Airlines, 160 NT (normal time), 267 Number of Containers Solver, 245 Objective function, 429, 431, 435–436f Obsolescence, 340 OE (operating expense), 199t, 511 Offshoring, 517 OM Explorer, 42 computer support from, 304 Demand During the Protection Interval Simulator, 361 Economic Production Lot Size Solver, 381f One-Period Inventory Decisions Solver, 385f–386f Quantity Discounts Solver, 385f Regression Solver, 313 Sales and Operations Planning with Spreadsheets Solver, 402, 414 Seasonal Forecasting Solver, 313 sensitivity analysis, 386 Time Series Forecasting Solver, 310 One-period decisions, 384–386, 385f One-Period Inventory Decisions Solver, 385f–386f One-worker, multiple-machines (OWMM) cell, 237–238, 237f On-shoring, 517 On-time delivery, 32t Open issues, 277 Open order file, 223–224 Open orders, 351 Operating expense (OE), 199t, 511 Operation, definition of, 23, 88 Operational benefits, of lean systems, 245–247 Operational innovation, 22 Operational inventory, 343–344 Operational measures, financial measures, relationship with, 199t Operational risks, 582–583 Operations, 23, 76, 271 illustrative business processes outside of, 28t low-cost, 35, 35t processes and, 24–26, 25f role of, in an organization, 23–24 strategy, 28–31 Operations management, 21–48 challenges in, 36–42 competitive priorities and capabilities, 31–36 defined, 23 at Disney Corporation, 21–22 historical evolution of, 24 introduction to, 23 nested processes, 25 operations strategy, 28–31 as pattern of decisions, 34 process view, 24–26 role in an organization, 23–24 service and manufacturing processes, 25–26 supply chain view, 26–28 trends in, 36–42 value creation through, 21–48 Operations planning and scheduling See also Scheduling aggregation, 396 Cooper Tire and Rubber Company, 393–394 defined, 395 levels in, 395–398 relationship to other plans, 396–397 scheduling, 406–413 S&OP strategies, 399–402 S&OP supply options, 398–399 types of plans with, 395 Operations strategy, 28–31 corporate strategy, 29–31 defined, 28 market analysis, 31 Operations Terminal Information System (OTIS), 176 Opportunities, identification of, 83 Optimality, range of, 438t, 440 Optimistic time, 273 Optimization, 429 Optional replenishment system, 361 Order batching, 567 Order fulfillment process, 27 customer demand planning, 578 logistics, 578–580 production, 578 supply planning, 578 Ordering cost, 340, 347, 348f Order placement, 581 Order qualifiers, 33–34 Order winners, 33–34 Organization, role of operations in, 23–24 Organizational structure, 260 functional, 260 matrix, 260 pure project, 260 OTIS (Operations Terminal Information System), 176 Output measures of capacity, 157 Output rate, 209 Outputs, 23 desired rate of, 209 to forecasting process, 315 nature of in service vs manufacturing, 26 variation of, 123–126 Outsourcing processes, 516–520 decision factors, 517–518 defined, 517 make-or-buy decisions, 519–520 potential pitfalls, 518 vertical integration, 519 Overproduction, 229t Overtime cost, 399, 400t OWMM (one-worker, multiplemachines) cell, 237–238, 237f Ownership, 579 www.downloadslide.net SUBJECT INDEX Pacing, 212 Paid undertime, 399 Panasonic Corporation, 239 Parameters, 430 Parent, 459 Parent company facilities, proximity to, 535 Pareto charts, 91–92, 346 Part commonality, 465 Parts Emporium, Inc., 377–378 Part-time workers, 399 Past due, 411 Path, 263 Payments to suppliers, 341 Payoff table, 54 p-chart, 131–132 Performance, 124 See also Quality Performance measurements, 124, 411, 508–511, 510f Periodic order quantity (POQ), 469–470, 469f Periodic reorder system See Periodic review (P) system Periodic review (P) system, 358–361, 358f, 612 Perishable capacity, 299 Perpetual inventory system, 361 PERT (project evaluation and review technique), 262 Pessimistic time, 273 Phase, 181 Philips, 457–458 Phoenician, 292–293 Pie charts, 93 Pilferage, 340 Pinnacle Strategies, 197–198 Pipeline inventory, 344, 345–346 Plan-do-study-act cycle, 121 Planned order release, 467–468, 467f Planned receipts, 467 Planning See also Operations planning and scheduling cost–time trade-offs, analysis of, 267–271 network diagram, 261 risk assessment, 271–276 schedule development, 263–267 work breakdown structure, 261 Planning horizon, 162 Planning lead time, 468 Plants within plants (PWPs), 81 PlayStation, 257–258 Poisson distribution, 133 Poka-yoke, 233 Popeye’s Louisiana Kitchen, Inc., 545 POQ (periodic order quantity), 469– 470, 469f Postponement, 76, 516 Power of Innovation program, 111 PowerPoint, 85 Precedence diagram, 207–208 Precedence relationships, 262 Predetermined data method, 87 Preemptive discipline, 183 Preference matrix, 53–54, 547–548, 572–573 Prescheduled appointments, 299 Presourcing, 573 Prestige Products, 197–198 Prevention costs, 117 Priceline.com, 576 Pricing flexibility, 581 Priority rule, 180, 183 Priority sequencing rule, 410–411 Private carrier, 579 Probabilities, 275–276 Probability, 54 Probability distributions, 183 Problem-solving activities, 121 Problem-solving teams, 120 Problem-solving tools, 121 Process advantages, 158 Process analysis, 69–114 definition of, 71 documentation, 83–83 introduction to, 70–72 management and implementation, 95–98 at McDonald’s, 69–70 opportunities, identification of, 83 redesign, 95–98 scope, definition of, 83 Six Sigma Process Improvement Model, 83–84, 83f Process capability, 134–137 defining, 134–135 using continuous improvement to determine, 136 Process capability index, 135 Process capability ratio, 135 Process charts, 88–90 Process choice, 75 Process distribution, 124 Process divergence, 73, 85 Processes, 23 657 definition of, 23 designing and operating, 40 in lean systems, 232–236 managing, 40–41 nested, 25 service and manufacturing, 25–26 supply chain, 70–71 working of, 25 Process failure, 90 Process improvement, 83, 204 Process innovation, adding value with, 41–42 Process integration, 518 Process reengineering, 82–83, 204 Process segments, 81 Process simulation, 95 Process strategy, 69–114 capital intensity, 71, 78–80 customer involvement, 76–78 decisions, 76–80 definition of, 71 documenting and evaluating the process, 84–95 at eBay, 77 introduction to, 70–72 layout, 76 process structure in manufacturing, 74–76 process structure in services, 72–74 redesigning and managing process improvements, 95–98 resource flexibility, 71, 78 strategic fit, 80–82 strategies for change, 82–84 supply chains and, 71 Process strategy decisions, 76–80 capital intensity, 78–80 customer involvement, 76–78 resource flexibility, 78 Process structure, 71 Process structure in manufacturing layout, 76 manufacturing process structuring, 75 production and inventory strategies, 75–76 product-process matrix, 74 Process structure in services customer contact, 72 customer-contact matrix, 72–73 decision patterns for manufacturing processes, 81 www.downloadslide.net 658 SUBJECT INDEX service process structuring, 73–74 strategic fit, 80–82 Product family, 396 Production, order fulfillment process, 578 Production and inventory strategies, 75–76 assemble-to-order strategy, 76 design-to-order strategy, 76 make-to-order strategy, 76 make-to-stock strategy, 76 Production plan, 395t Production planning, transportation method for, 442–445 Production schedule, 224–225 Production shifting, 583 Production strategies, 75–76 Productivity, 36 calculating, 37 improvement in, 36–37 labor, 37 machine, 37 measuring, 37 multifactor, 37 role of management in, 37 Productivity improvement, 36–37, 599 Product mix, 566 Product mix decisions, 205–207 Product-mix problem, 430–432 Product needs, 31 Product–process matrix, 74, 74f Product promotions, 567 Product returns, 517 Profit and loss statement, 224 Program, definition of, 259 Programmable automation, 79 Project controlling, 278 defining the scope and objectives of, 259 definition of, 259 monitoring and controlling, 277–278 Projected on-hand inventory, 461, 466–467 Project evaluation and review technique (PERT), 262 Project management, 257–294 constructing project networks, 261–263 cost–time trade-offs, analyzing, 267–271 definition and organization of projects, 259–260 definition of, 259 introduction to, 259 monitoring and controlling, 277–278 at the Phoenician, 292–293 project schedule, development of, 263–267 risks, assessing and analyzing, 271–276 at Roberts Auto Sales and Service, 293–294 Xbox 380, 257–258 Project manager characteristics of, 260 as communicator, 259 as decision maker, 260 dedication and, 260 as facilitator, 259 selection of, 259–260 sensitivity and, 260 technical competence and, 260 Project networks, constructing, 261–263 network diagram, 261–262 work breakdown structure, defining, 261 Project objective statement, 259 Project resources, monitoring, 277 Project schedule, development of, 263–267 activity slack, 266–267 critical path, 263–264 project schedule, 264–266 Project status, monitoring, 277 open issues, 277 risks, 277 schedule status, 277 Project team capability, 271 Promotional campaigns, 298–299 Promotional pricing, 298–299 Protection interval, 354 Psychological impressions, 119 Publix, 228 Pull method, 232 Purchased item, 465 Purchased materials, cutting costs of, 158 Purchasing, 247 defined, 570 green, 572 Pure Project organizational structure, 260 Push method, 232 PWPs (plants within plants), 81 Qualitative concerns, 164–165 Qualitative factors, 547 Quality, 115–154 acceptance sampling, 122–123 Baldrige Performance Excellence Program, 138 costs of, 116–118 definition of, 119 ethics and, 117–118 expectations, 505 failures, 566 International Quality Documentation Standards and Awards, 137–138 introduction to, 116 process capability, 134–137 at QVC Inc., 115–116 Six Sigma, 121–122 at Starwood Hotels and Resorts, 152–154 statistical process control, 123–134 statistical process control methods, 123–134 total quality management, 118–121 at Verizon Wireless, 120 Quality at the source, 120, 232–233 Quality management, 137 Quality of life, 534 Quantitative concerns, 165 Quantitative factors, 547 Quantity discounts, 341, 382–384, 382f, 384f Quantity Discounts Solver, 385f QVC Inc., 115–116 Radio frequency identification (RFID), 342, 577, 611–612 Ramp-up, 570 Range, 125 Ranging screen, 440, 440f Raw materials (RM), 342 R-chart, 127 Real estate costs, 535 Rectilinear distance, 537 Recycling, 112–113, 601–602 Redesign of processes, 95–98 Reduction tactics, for inventory, 345–346 www.downloadslide.net SUBJECT INDEX Reengineering, 82 key elements of, 82t Regression, trend projection with, 300 Regression Solver, 313 Regular time, 400t Remnants, inventory, 470 Remuneration, 611 Reorder point (R) for constant demand and lead time, 352, 352f safety stock and, 355, 355f for variable demand and constant lead time, 352–354, 352f, 355–356 for variable demand and lead time, 356–357 Reorder point (ROP) system, 351 Repeatability, 345 Reservation systems, 299 Resource acquisition, 277 Resource allocation, 277 Resource flexibility, 71, 78 equipment, 78 workforce, 78 Resource leveling, 277 Resource plan, 395t Resource planning, 397–398 bill of resources, 478–481, 479f, 480t–481t defined, 458 dependent demand for services, 477–478 enterprise resource planning, 475–477, 476f master production schedule, 460–464 material requirements planning, 457–460, 459f MRP explosion, 459, 464–475 Philips, 457–458 for service providers, 477–481 Resources, proximity to, 535 Restaurants, 477 Results screen, 440, 440f Return on assets (ROA), 511 Returns processor, 601 Revenue flow increase, 581 Revenue management, 299 See also Yield management Reverse auction, 576 Reverse logistics, 600–603 See also Logistics defined, 600 and financial implications, 602–603 supply chain design for, 601 Reward systems, 246 Rework, 117, 517 RFID (radio frequency identification), 342, 577 Ricoh, 82 Risk assessment of, 271–276 decision making and, 56–57 definition of, 271 minimization of, 599 open issues and, 277 simulation, 271–272 statistical analysis, 273–275 Risk-management plans, 271–272 operations, 271 project team capability, 271 service/product attributes, 271 simulation and, 271–272 strategic fit, 271 RM (raw materials), 342 ROA (return on assets), 511 Roberts Auto Sales and Service, 293–294 Rolls-Royce, 82 Rope, 204 ROP (reorder point) system, 351 Rotating schedule, 408 Route planning, 603 R.R Donnelly & Sons, 79 R.U Reddie Corporation, 560–561 SA8000:2014, 611 Safety stock inventory, 343, 345, 355 Safety stocks, 470–471, 471f SAIC GM Wuling Automobile Co., Ltd., 518f Sales and operations planning (S&OP) constraints and costs, 400, 400t defined, 395t manufacturer’s plan using spreadsheet and mixed strategy, 403f as a process, 400–402 spreadsheets for, 402–405 at Starwood, 425 strategies, 399–402 supply options, 398–399 Sales and Operations Planning with Spreadsheets Solver, 402, 414 Salesforce estimates, 304 659 Sample coefficient of determination, 305 Sample correlation coefficient, 305 Sample mean, 124 Sample size, 124 Sampling, 124 Sampling distributions, 124–125, 134 Sampling plan, 124 Samsung, 120 SAP, 318, 476–477 SAS/GIS, 545 Scatter diagrams, 92 Schedule development of, 263–267 fixed, 408 rotating, 408 stability of, 246–247 status, 277 workforce, 398 Scheduled receipts (SR), 351, 466, 466f Scheduling See also Operations planning and scheduling at Air New Zealand, 407–408 defined, 395t Gantt charts, 406–407, 406f–407f job and facility, 406–407 jobs at a workstation, 410–412 in lean systems, 246–247 planning, 398 software support, 412–413 workforce, 407–410 Scope creep, 259 Scope of a project, 259 SCOR model, 568, 568f Scrap, 117 Seasonal factor, 312 Seasonal Forecasting Solver, 313 Seasons, definition of, 312 Security risks, 584–586 access control, 585 ISO 28000, 586 physical security, 585 shipping and receiving, 585–586 transportation service provider, 586 Self-managed teams, 120 Sensitivity, project manager and, 260 Sensitivity analysis, 51, 351, 351f Sequencing defined, 410 jobs at a workstation, 410–412 Service blueprints, 86 Service encounter, 72 Service facility, 180 www.downloadslide.net 660 SUBJECT INDEX Service level, 354 Service needs, 31 Service processes, 25–26 automation of, 79–80 decision patterns for, 80 vs manufacturing processes, 25–26 structuring, 73–74 Service/product attributes, 271 Service/product proliferation, 505 Service promotions, 567 Service providers, 397, 403–405 Services increasing perceived value of, 515 process structure in, 73–74 productivity and, 36 supply chain designs for, 506–507, 507f Service system, 180, 181–182 Service time distribution, 184 Setup cost, 341, 347 Setups, 247 Setup time, 163, 202 Shadow price, 438t, 441 Shanghai APEX Electronics, 457–458 Sharp Corporation, 161 Shine, 235f, 235t Shin-Etsu Chemical Company, 39 Shortest route problem, 603 Shrinkage, 340 Simple moving average method, 307–308 Simplex method, 438–439 SimQuick, 180, 190–191 SimQuick: Process Simulation with Excel, 191 Sims Metal Management, 112–114 Simul8 software, 212 Simulation, 190–191 in capacity planning, 167 process simulation, 95 risk and, 271–272 Single-bin system, 361 Single-channel, multiple-phase arrangement, 182 Single-channel, single-phase system, 181 Single-digit setup, 231 Single-Item MRP Solver, 469, 469f Single-server model, 185–187 Six Sigma, 121–122 Six Sigma Improvement Model, 122 Six Sigma Process Improvement Model, 83–84, 83f analyze, 83–84 control, 84 define, 83 improve, 84 measure, 83 Skewed distribution, 125 Skoda, 412 SKUs (stock-keeping units), 346, 514–515 Slack variables, 437–438 Small batches, 75 Small lot sizes, 231 SmartDraw, 85 Social responsibility, 599, 600t Software support for scheduling systems, 412–413 Sole sourcing, 576 Sonic Distributors, 526–527 Sonoco, 38 S&OP (sales and operations planning) See Sales and operations planning (S&OP) Sort, 235f, 235t Sourcing, 570–573 Southwest Airlines, 176–177 Special inventory models noninstantaneous replenishment, 379–381, 380f one-period decisions, 384–386, 385f quantity discounts, 382–384, 382f, 384f Special-purpose teams, 120 Spirit AeroSystems, 234 Spreadsheets for a manufacturer, 402–403, 403f in sales and operations planning, 402–405 for a service provider, 403–405 SR (scheduled receipts), 351, 466, 466f Staffing plan, 395t Standard deviation, 125 of the errors, 302 Standard error of the estimate, 305 Standardization, 234 Standardized components, 234 Standardized work methods, 238 Starbucks, 77, 533 Start node, 208 Start times, 264–266 Starwood, 425, 594 Statistical analysis, of risk, 273–275 Statistical process control (SPC) coin catapult, 153–154 control charts, 126–127 control charts for attributes, 131–134 control charts for variables, 127–130 defined, 123 lean systems and, 246 methods, 123–134 outputs, variation of, 123–126 Steering team, 84 Stock-keeping units (SKUs), 300, 315, 346, 514–515 Stockouts, 299–300, 340, 400t Storage, on process charts, 89 Storage costs, 340 Straighten, 235f, 235t Strategic alignment, 582 Strategic alliances, 30 Strategic fit, 80–82, 271 decision patterns for manufacturing processes, 81 decision patterns for service processes, 80 gaining focus, 81–82 Strategic Supplier Engagement Program, 575 Subassembly, 465 Subcontractors, 399 Successive stocking points, 343f Sunbelt Pool Company, 542, 543–544 Super sandwich bale (SSB), 602 Supplier certification and evaluation, 573 Supplier relationship process, 27, 570–578 buying, 576–577 design collaboration, 573–574 information exchange, 577–578 negotiation, 574–576, 575f sourcing, 570–573 Suppliers, 231, 247, 535 external, 25 internal, 25 Supplier selection, 570–573 Supply chain design Amazon.com, 458–504 assemble-to-order, 504 at Crayola, 525 definition of, 506 effective supply chains, creating, 505–506 financial measures, 510–511 inventory measures, 508–510 inventory placement, 546–547, 546f www.downloadslide.net SUBJECT INDEX for manufacturing, 507–508, 508f mass customization, 515–516 outsourcing processes, 516–520 performance measurements, 508– 511, 510f and processes and service/product characteristics, 514–515, 514f for reverse logistics, 601 for services, 506–507, 507f strategic options for, 511–515 Supply chain disruptions, 565–568 causes of, 565–567 external causes of, 566 integrated supply chains, 568 internal causes of, 566–567 supply chain dynamics, 567–568, 567f Supply chain ethics, 611–612 buyer–supplier relationships, 611–612 facility location, 612 inventory management, 612 Supply chain integration customer relationship process, 581–582 defined, 565 downstream, 565, 565f new product development, 568–570 new service development, 568–570 order fulfillment process, 578–580 supplier relationship process, 570–578 supply chain disruptions, 565–568 supply chain risk management, 582–586 upstream, 565, 565f Supply chain linkages, 474–475, 475f Supply chain logistic networks Bavarian Motor Works (BMW), 531–532 break-even analysis, 540–542 center of gravity, 538–540 distance measures, 537 factors affecting, 534–537 geographical information system (GIS), 544–546 inventory placement, 546–547, 546f load–distance method, 537–540 load–distance score, 538 in manufacturing, 534–535 in services, 535–537 systematic selection process, 547–548 transportation method, 542–544, 544f Supply chain management, 23, 506 Supply chain risk management, 582–586 defined, 565 financial risk, 583–584 operational risk, 582–583 performance measures, 586 security risk, 584–586 Supply chains, 23 closed-loop, 601, 601f close supplier ties, 231 complexity, 518, 566 core processes, 27 corporate strategy, 29–31 definition of, 23 designing and operating, 40 disaster relief, 608–611 for the Dreamliner, 518–519 efficiency curve, 506, 506f efficient supply, 512, 512t, 513–515, 514t in House of Toyota, 236, 237f innovation, adding value with, 41–42 integrated, 568 Japanese earthquake, 39 in lean systems, 231 management of, 41 operations strategy, 28–31 performance measurements, 508– 511, 510f, 586 processes in, 28, 28t process strategy and, 71 responsive, 512–515, 513f, 514t for services and manufacturing, 506–508, 507f, 508f small lot sizes, 231 support processes, 27–28 visibility, 566 Supply chain sustainability disaster relief supply chains, 608–611 energy efficiency, 603–608 environmental responsibility, 599, 600t examples of, 600t FedEx, 597–598 financial responsibility, 599, 600t humanitarian logistics, 599 managing, 612–613 reverse logistics, 600–603 661 social responsibility, 599, 600t supply chain ethics, 611–612 Supply planning, 578 Supply Pro, 198 Support, customer, 119 Support processes, 27–28 Surplus variables, 437–438 Sustain, 235f, 235t Sustainability, 598 See also Supply chain sustainability Swift Electronic Supply, Inc., 375–377 Swim lane flowcharts, 85–86, 85f Symmetric distribution, 125 Systematic location selection process, 547–548 Tableau, 441, 442f, 542 Take back, 603 Takt time, 233 Tardiness, 411 Target, 503 Target inventory level, 359–361 Tariffs, 517 Taxes, 340, 517, 535 TBO (time between orders), 350 Teams selection of, 259–260 total quality management, 120–121 Technical competence, project manager and, 260 Technological forecasting, 304 Technology advances in, 30 licensing, 30 transfer, 518 Teleflora, 507 Terra Technology, 296 Tesla Motors, 155–156 Texas Instruments, 232–233 Theoretical minimum (TM), 209 Theorganicgrocer.com, 48 Theory of constraints (TOC), 199–201 defined, 199 key principles of, 200–201, 200t practical application of, 200–201 product mix decisions, applying to, 205–207 3PL (third-party logistics provider), 579 Third-party logistics provider (3PL), 579 Three-period weighted moving average model, 308 www.downloadslide.net 662 SUBJECT INDEX Throughput (T), 199t, 201 Throughput time, 201, 411 Timberland, 40 Time, aggregation, 396 Time-based competition, 33 Time between orders (TBO), 350 Time-series analysis, 300 Time Series Forecasting Solver, 310, 317 Time-series methods, 306–315 additive seasonal method, 314 criteria for selecting, 314–315 exponential smoothing method, 308–309 horizontal patterns, 307–309 multiplicative seasonal method, 312–313 naïve forecast, 307 seasonal patterns, 312–314 simple moving average method, 307–308 trend patterns, 309–311 weighted moving average method, 308 Time study method, 86 TM (theoretical minimum), 209 TNT, 609 TOC (theory of constraints), 199–201 Tolerance, 134 Tommy Hilfiger, 513 Top quality, 32t, 35t Total cost analysis, for supplier selection, 571–572 Total Preventive Maintenance (TPM), 235–236 Total project costs, 267 Total quality management (TQM) continuous improvement, 121 customer satisfaction, 119 defined, 118 employee involvement, 119–121 Total revenue, 510–511 Toyota Corolla, 34 Toyota Corporation, 229, 533 Toyota Production System (TPS), 24, 236–237 TPM (Total Preventive Maintenance), 235–236 TPS (Toyota Production System), 24, 236–237 Tracking signal, 314–315, 315f Trade barriers, 38 Trade-in, 603 Trading blocks, 38, 39 Traditional method, 205 Trans Alaska Pipeline System, 579f Transocean Ltd., 197 Transportation, 229t costs of, 341, 536 globalization and, 38 on process charts, 88 Transportation distance, 603–604 nearest neighbor (NN) heuristic, 604–605 route planning, 603 shortest route problem, 603 traveling salesman problem, 603–604, 604f Transportation methods, 542–544, 544f in linear programming, 441–445, 442f for production planning, 442–445 Transportation mode, 607–608 Transportation problem, 441 Traveling salesman problem, 603–604, 604f Trend, definition of, 309 Trend-Adjusted Smoothing model, 310 Trend projection with regression, 300 Trend Projection with Regression Solver, 310 Two-bin system, 357 Type I error, 127 Type II error, 127 Typhoon Haiyan, 597–598 Usage quantity, 464 U.S Air Force health care system, 202 U.S Commerce Department, 138 U.S Congress, 138 Utilities, 535 Utilization, 158, 199t Utilized time, 402 UCL (upper control limit), 126 Uncertainty, decision making and, 55–56 Underfilled shipments, 566 Undertime, 399 UN Development Program, 609 Uniform workstation loads, 233–234 Unions, 517 United Airlines, 160, 202 United Parcel Service (UPS), 24, 234, 237, 597, 609 University of Pittsburgh Medical Center Shadyside, 246 Upper control limit (UCL), 126 UPS (United Parcel Service), 24, 234, 237, 597, 609 Upstream, in supply chain integration, 565, 565f, 582 WACC (weighted average cost of capital), 340 Wait-and-see strategy, 160–162, 160f Waiting-line models, 166, 166f finite-source model, 189–190 Little’s law, 188–189, 244 multiple-server model, 187–188 single-server model, 185–187 using to analyze operations, 184–190 Waiting-line problems arrival distribution, 183 customer population, 180–181 priority rule, 183 probability distributions, 183 service system, 181–182 service time distribution, 184 structure of, 180–184 Vacation schedules, 399 Value, 119 Value analysis, 574 Value stream mapping (VSM), 239–243 Variable cost, 50 Variables, 124 dependent, 304 independent, 305 Vendor-managed inventories (VMI), 231, 577–578 Verbots, 582 Verizon Wireless, 120 Vertical integration, 519 Visa, 228 Visual solution, in linear programming, 436 Visual system, 357 VMI (vendor-managed inventories), 231, 577–578 Volume flexibility, 32t, 35, 35t, 36t Volume needs, 31 VSM (value stream mapping), 239–243 www.downloadslide.net SUBJECT INDEX Waiting lines definition of, 179 multiple lines, 181 and simulation, 190–191 single line, 181 Walmart, 24, 47, 318, 341–342, 503, 533, 602, 608 Walt Disney World, 179 Warehouses, 543 Warner-Lambert, 318 Warranty, 117 Waste, 229t Watt, James, 24 WBS (work breakdown structure), 261 Weeks of supply, 509 Weighted average cost of capital (WACC), 340 Weighted moving average method, 308 Whirlpool, 398f Whitney, Eli, 24 WIP (work-in-process), 342 Wistron, 258 Work breakdown structure (WBS), 261 Work elements, 207 Work flow, 610 pull method of, 232 push method of, 232 Workforce adjustment, 398–399 aggregation, 396 core competencies, 30 diversity, 40 flexibility of, 78, 234 scheduling, 398, 407–410 underutilization of, 229t utilization, 399 Working capital, 511 Working hours, 611 Work-in-process (WIP), 188, 342 Work measurement techniques, 86–88 elemental standard data approach, 86–87 learning curve analysis, 87–88 predetermined data approach, 87 process charts, 88–90 time study method, 86 work sampling method, 87 Work sampling method, 87 Workstation loads, 233 World Food Program, 609 Xbox, 257 Xbox 380, 257–258 x-Chart, 128–130 Yahoo!, 72 Yankee Fork and Hoe Company, 334–335 Yield management, 299 See also Revenue management Zastava Corporation, 33 ZTE Corporation, 39 663 www.downloadslide.net Prepare, Apply, and Confirm with MyOMLab™ • Worked Solutions—Provide step-by-step explanations on how to solve select problems using the exact numbers and data that were presented in the problem Instructors will have access to the Worked Solutions in preview and review mode • Test Manager—Choose from the hundreds of available questions correlated to the textbook and AACSB standards to create and manage tests • Reporting Dashboard—View, analyze, and report learning outcomes clearly and easily Available via the Gradebook and fully mobileready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner • LMS Integration—Link from any LMS platform to access assignments, rosters, and resources, and synchronize MyLab grades with your LMS gradebook For students, new direct, 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States edition, entitled Operations Management: Processes and Supply Chains, 11th Edition, ISBN 978-0-13-387213-2 by Lee J Krajewski, Manoj K Malhotra, and Larry P Ritzman, published by Pearson... DEMAND MANAGEMENT Forecasting Demand Managing Inventories Planning and Scheduling Operations Efficient Resource Planning SUPPLY CHAIN MANAGEMENT Designing Effective Supply Chains Supply Chains and. .. student has not mastered Operations Management PROCESSES AND SUPPLY CHAINS Eleventh Edition Global Edition LEE J KRAJEWSKI Professor Emeritus at The Ohio State University and the University of Notre