Operations and supply management the core robert jacobs, richard chase 2ed

www.elsolucionario.net INSTRUCTOR’S RESOURCE MANUAL to accompany Prepared by F Robert Jacobs www.elsolucionario.net Operations and Supply Management – The Core Second Edition www.elsolucionario.net ACKNOWLEDGEMENTS I am indebted to all of my colleagues who have contributed to this manual Very few of the ideas contained in here are totally original Thanks much to all of you for spending so much time discussing how you things in class and allowing me to share your ideas in this manual www.elsolucionario.net F Robert Jacobs i www.elsolucionario.net TABLE OF CONTENTS Introduction Videos included on the student DVD Additional pedagogical resources that come with the book Chapter Outlines, Tips, Case Teaching Notes and Extra Cases Chapter – Operations and Supply Chain Management www.elsolucionario.net Internet Exercise: Harley-Davidson Motorcycles Wyatt Earp – The Buffalo Hunter! (Extra Case) Chapter - Strategy and Sustainability Case: The Tao of Timbuk2 – Teaching Note Chapter – Strategic Capacity Management Case: Shouldice Hospital – A Cut Above – Teaching Note Chapter 4– Production Processes Case: Designing Toshiba’s Notebook Computer Line – Teaching Note Extra Case: Manufacturing – The Great Crapshoot Chapter – Service Processes Case: Community Hospital Evening Operating Room – Teaching Note Extra Case: Listen-Up.com Chapter – Quality Management and Six-sigma Hank Kolb – Director of Quality Assurance – Teaching Note Classroom Exercise – M&M’s – Process Capability for the Halloween Packs (Extra Case) Chapter – Projects Case: Cell Phone Design – Teaching Note Chapter – Global sourcing and Procurement ii www.elsolucionario.net Case: Pepe Jeans – Teaching Note Internet Exercise: Playing the Beer Distribution Game Over the Internet – Overview and Instructions Chapter – Location, Logistics and Distribution Case: Applichem – The Transportation Problem – Teaching Note Case: Quality Parts Company – Teaching Note Case: Value Stream Mapping – Teaching Note Case: Pro Fishing Boats – A Value Stream Mapping Exercise – Teaching Note Internet Exercise: The E-Ops Game – Instruction (Extra Case) Chapter 11 – Demand Management and Forecasting Case: Altavox Electronics – Teaching Note Chapter 12 – Aggregate Operations Planning Case: Bradford Manufacturing – Planning Plant Production – Teaching Note Chapter 13 – Inventory Control Case: Hewlett-Packard – Supplying the DeskJet Printer in Europe – Teaching Note Case: Finish Line (Extra Case) Chapter 14 – Material Requirements Planning Case: Brunswick Motors, Inc – An Introductory Case for MRP – Teaching note Appendix The McGraw-Hill/Irwin Video Series iii www.elsolucionario.net Chapter 10 – Lean and Sustainable Supply Chains www.elsolucionario.net INTRODUCTION This book is the result of our research into what instructors what to teach in the core OSCM course The title, Operations and Supply Management: The Core, reflects current interest in Supply Chain Management The book is designed to include topics that are appropriate for an overview of Operations Management while emphasizing Supply Chain concepts It is our view that operations management and supply chain management is an integrated topic that spans the traditional Operations Management, Purchasing and Logistics fields Supply chain management focuses on the flows of material through the network all the way from fourth and third tier supplies all the way out to the final customer Supply chain management seems to place less emphasis on “internal” factory operations which has traditionally been a core operations management focus (i.e MRP and scheduling) Traditional operations management focuses on coordination from first tier suppliers, through the factory, and out to the warehouse “n” tier suppliers …… 1st tier suppliers Distribution Customer Operations Management Supply Chain Management This book reflects the shift in interest to supply chain We have included a chapter on MRunication of causes of defects, and close communications with suppliers Interviews with team leaders and plant managers are included (Chapter 9—Management of Quality) A Day in the life of Quality at Honda (Approx minutes) This segment shows specific quality oriented workings at the East Liberty Ohio plant The day begins with a manager meeting outlining manufacturing results and variations that might lead to defects, then follows as they are tracked down and examined in closer detail Several examples of operations methods used to improve quality are shown along with some discussion of different control methods for specific types of operations at Honda (Chapter 10— Quality Control; Chapter 9—Management of Quality) Statistical Process Control—Featuring Honda (Approx minutes) This segment describes Honda’s SPC efforts in several areas, and then focuses on one process test for door closing speeds In the ‘case study’ portion of the segment, an out of control situation is discovered and remedied (Chapter 10—Quality Control) 122 www.elsolucionario.net Project Management—Building the Alton ‘Super Bridge’ (12:52 minutes) This segment follows the story of building of the Alton, Illinois super bridge across the Mississippi River and is based on a two-hour PBS documentary on the subject Highlights include descriptions of design, the construction process, and even weather issues that project managers had to deal with in completing the project Interviews with managers and contractors are included (Chapter 17—Project Management) www.elsolucionario.net Volume (ISBN # 0-07-250472-2) “Made for You” Process Implementation featuring McDonald’s (12:21 minutes) This program describes the implementation and change over to the new McDonald’s “Made for You” System, a massive project completed in only 18 months Claire Babrowski, Executive Vice President of World-Wide Restaurant Systems and Bob Marshal, Assistant Vice President of US Operations discuss local store and organizational issues they faced during the implementation process and how they dealt with them (Chapter 6—Process Selection and Facility Layout; Chapter 17—Project Management) Robotics and Technology featuring Genesis Systems Group (11:52 minutes) This segment features the manufacturing process design done by Genesis Systems Group, a maker of robotic manufacturing equipment System criteria, customer demands, analysis, design specifications and simulations are used in developing a new automated robotic welding system for an auto industry supplier, American Axle and Manufacturing (AAM), a Genesis client (Chapter 6—Process Selection and Facility Layout; Chapter 7— Design of Work Systems) Volume (Cassette tape ISBN # 0-07-287088-5; DVD ISBN # 0-07-2870893) Enterprise Resource Planning at Hillerich & Bradsby (16:15 minutes) Hillerich and Bradsby—maker of Louisville Slugger baseball equipment, Powerbilt golf, Louisville hockey equipment, over 300 different products in one manufacturing plant alone, had outgrown legacy operations management systems and so adopted an ERP system from SAP to integrate, centralize, streamline and better support their supply chain and customer service This video features frank comments from owners Tom and John Hillerich along with interviews with plant managers and supervisors describing the implementation challenges, along with examples of their production processes (Chapter 13—MRP and ERP) Queueing—featuring the National Association of Realtors and Apropos Technology (12:54 minutes) The National Association of Realtors manages a Call Center named ‘Information Central’ for members that provides a high variety of research and information services via 7,500 calls and 2000 web inquiries per month This video describes how the NAR staffs, manages, and delivers these services and how it handles queueing issues Apropos Technology designs and sells call center management software which Info Central uses to prioritize and handle queueing and delivery of customized service-both ‘e-service’ and normal call queries (Chapter 18—Waiting Lines) 123 www.elsolucionario.net JIT at McDonald’s (12:03 minutes) This video describes market, production, and service issues that McDonald’s evaluated and considered in designing its new “Made For You” production system Interviews with Claire Babrowski, Executive Vice President of World-Wide Restaurant Systems and Bob Marshall, Assistant Vice President of US Operations, as well as illustrations and demonstrations of the processes in the new JIT kitchen system are included (Chapter 14—JIT and Lean Operations) www.elsolucionario.net Service Design at Hotel Monaco Chicago (12:38 minutes) Hotel Monaco in Chicago, a Kimpton Group property, is a boutique class Loop property which competes for both business and leisure travel business by way of careful service design innovations matched to its market niche This video provides an overview of all of Monaco’s services and examples of how it distinguishes its “3 T’s” of service from competitors Staffing, ‘experience’ services, training, and the use of ‘guestware’ software are all illustrated along with interviews with managers (Chapter 1—Introduction; Chapter 4—Product and Service Design) Louisville Slugger Aluminum Bats: Plant Tour (8:35 minutes) This video takes a tour of the high tech aluminum bat manufacturing plant of Hillerich and Bradsby in Ontario California H & B now make over 5000 bats a day and over 300 different models in this plant This video walks through the manufacturing process from start to finish showing each step and treatment (Chapter 6—Process Selection and Facility Layout) Operations Management: featuring St Alexius Medical Center (17:07 minutes) This program presents an overview and interviews describing the service specialization of St Alexius, a Chicago based hospital, particularly their pediatrics and pediatric emergency systems The hospital utilizes operations concepts such as strategic planning, process analysis, layout design, quality and safety monitoring and tracking, capacity planning, work design, and customer satisfaction and staff training to provide specialty care and emergency treatment for acute child patients (Chapter 1—Introduction; Chapter 4—Product and Service Design) Process System Improvement: Strategy and Planning featuring Gortrac (12:11 minutes) First of two parts, this segment describes Gortrac, a manufacturer of flexible tracks for housing cable and hoses in industrial applications, and the strategy it used to improve their process and system Gortrac management identified 3-year goals and objectives involving inventory levels, quality, product diversification, and throughput A key component of the strategy was employee and team participation (Chapter 2—Competitiveness, Strategy, and Productivity) Process System Improvement: Implementation featuring Gortrac (10:17 minutes) This second of two segments describes and illustrates specific implementation accomplishments such as redesigned work cells, techniques used to reduce WIP and parts inventory, and several employee suggested kan-bans and card systems to reduce waste and rework and increase productivity In addition, Gortrac successfully added a new product earlier than called for in the company strategic goals (Chapter 7—Design of Work Systems; Chapter 9—Management of Quality) Queueing: Featuring Disney World (9:45 minutes) This video provides an overview of a variety of methods of managing and improving customer satisfaction by reducing waiting time and perceived waiting time in Disney theme parks worldwide The concept, testing, implementation, and results of one ‘imagineering’ initiative at Disney World—the innovative Fast Pass system is described and highlighted Fast Pass reduced waiting time, increased ‘rides per capita’ a Disney management measure, and redistributed traffic flows, all leading to improved customer satisfaction at Disney World (Chapter 18— Waiting Lines) Volume 11 (ISBN # 0-07-304515-2); DVD with scene selection menus 124 www.elsolucionario.net Volume 10 (Cassette tape ISBN # 0-07-297063-4; DVD ISBN # 0-07-296631-9) www.elsolucionario.net What is Operations Management? (13:57 minutes) This video provides an introductory survey of the applications of operations management concepts in a wide variety of service and manufacturing industries Brief examples from companies such as McDonalds, Hillerich and Bradsby, Disney, and Honda are used to introduce students to the filed of OM and its importance in companies The Service System Design Matrix: featuring Chase Bank (10:55 minutes) This video features Chase Bank to illustrate and provide the variety of customer contact systems used in service industries Onsite examples and interviews are included describing the entire range of Chase Bank services, from the low contact methods such as mail, onsite technology and Internet banking, all the way up to the highly customized and unique “Private Client Services” that Chase delivers to top end investment clients Volume 12 (ISBN # 0-07-326881-X; DVD with scene selection and special features Flexible Manufacturing: featuring Ford-Chicago Assembly Plant (14:40 minutes) This video examines the new Ford Chicago Assembly plant that manufactures multiple models including the Ford 500 The CAP and the related Supplier Campus constitute the largest and newest facility in North America and flexibility has been built into the system, which reduces model changeover times from months to less than month Interviews and onsite footage describe the planning and start up activities, the use of PLC robots and Geostations, common vehicle architecture and supplier coordination needed to achieve such flexibility Ford-Supplier Relationships: Ford’s CAP Supplier Campus featuring SY (10:30 minutes) In the Ford CAP Supplier campus the company partnered with Tier suppliers to plan coordinated flows, reduce travel distance and time, and improve quality overall SY is both a Tier supplier of wiring systems for Ford but also a Tier supplier to other Tier suppliers in the CAP campus The video features system overviews, onsite footage and interviews with both SY and Ford managers describing how 77 items (versus in other Ford plants) are sequenced into the Ford assembly system from suppliers Ford-Total Supply Chain Management (10:50 minutes) This video overviews the Ford Supply chain as it has been improved at CAP, including interviews with Ford executives In the CAP Ford used an criteria ranking system to work with Suppliers and sub-suppliers, and at the same time designated lead suppliers to coordinate and manage flow into the new plant At the Chicago plant, inventory turns are double what they were at the previous Taurus plant, spare parts are only percent of total campus inventory (versus 97 percent previously), and the “in line vehicle sequencing” system keeps only 90 minutes of any supplier part within the plant Service Management Featuring Levin BMW (11:30 minutes) Levin BMW sells and services BMWs in Northwestern Indiana and this segment walks through its overall system Topics discussed include interaction with BMW, design and layout choices intended to delight customers, staffing and scheduling, and the Levin dealership’s overall emphasis on customer satisfaction as a competitive strategy 125 www.elsolucionario.net The Product Process Matrix (14:10 minutes) This segment presents the classic Hayes Wheelwright product process matrix, illustrating the concept of matching products with processes in manufacturing The high volume standardized continuous processes of British Petroleum are contrasted with mass production at Honda, batch processes at Caterpillar, and the job shop of ADE vision Onsite footage and descriptions of the system process and capacity is included for all f4 examples www.elsolucionario.net DHL-Global Delivery Service (12:45 minutes) DHL is the leading global delivery company servicing over 200 countries and generating over $50 billion in revenue annually This video provides an overview and the metrics of their global network as well as onsite interviews and illustrations from the Miami Gateway location Their total system is illustrated step by step DHL executives also describe strategic decisions such as the acquisition of Airborne, and service design innovations such as partnering with US and Canadian Customs Project Management at Six Flags, New Jersey (11:23) This video highlights the key components of successful project management through a look at the construction of Kingda Ka, the world’s tallest and fastest roller coaster, at the Six Flags theme park in New Jersey Larry Chickola, Chief Corporate Engineer on the project, discusses the planning, scheduling, and logistics that went into the roller coaster’s timely completion He also touches on the constraints and challenges of the project, including delays caused by weather conditions and the vast number of workers at the site Service Processing at BuyCostumes.com (10:24) BuyCostumes.com, the fastest growing online apparel company, is featured in this video on service processing Interviews with the company’s purchasing director, costumer service manager, warehouse manager, and logistics coordinator provide insight into the processes and procedures necessary for effective order fulfillment, such as stocking, sales and inventory projections, warehouse & customer service staffing, purchasing and forecasting Since over 50% of the company’s sales occur weeks before Halloween, the unique challenges of buying with a long lead time are illustrated in particular Six Sigma at Caterpillar (12:27) The quality improvement strategy of Six Sigma is explained through Peoria, Illinois-based company Caterpillar and its broad implementation of the process on over 40,000 projects since 2001 Focusing on the tools and benefits of Six Sigma in improving quality and performance by decreasing defects and costs, special note is given to the development of Caterpillar’s ACERT technology to reduce emissions in response to Clean Air Act regulations Also featured is supplier Solar Turbines and their application of Six Sigma and value-stream mapping to reduce inventory and improve cycle time, capacity, and delivery performance (from 10-20 days to 4-5) Volume 14 (ISBN 978-0073278780); DVD Service at Zappos.com (13:14) Zappos.com currently stocks more than million shoes, handbags, clothing items and accessories from over 1,100 brands Their slogan, “Powered by Service” highlights their emphasis on a service culture Featured in this video is the company’s employee training process as well as their random access inventory system and distinctive spider-merge conveyor system which speeds shipping time Green Manufacturing at Xerox (9:42) This video focuses on Xerox’s goal to use energy and raw materials as efficiently as possible while reducing the amount of waste through sustainable product design Xerox’s Green Manufacturing takes back end-of-life equipment from its customers, and then either remanufactures the equipment or reuses and recycles the parts Using a process called Signature Analysis, Xerox determines the useful life of parts and whether they can be reused or should be disassembled It includes discussion of quality assurance and the company’s adherence to ISO standards 126 www.elsolucionario.net Volume 13 (ISBN 978-0073278261); DVD ... what instructors what to teach in the core OSCM course The title, Operations and Supply Management: The Core, reflects current interest in Supply Chain Management The book is designed to include... overview of Operations Management while emphasizing Supply Chain concepts It is our view that operations management and supply chain management is an integrated topic that spans the traditional Operations. .. Operations Management, Purchasing and Logistics fields Supply chain management focuses on the flows of material through the network all the way from fourth and third tier supplies all the way out to the