OPERATION MANAGEMENT Creating Value Along The Supply Chain

Russell, Roberta.S and Taylor III, Bernard.W (2011) OPERATION MANAGEMENT Creating Value Along The Supply Chain. DHL.

Full text not available from this repository.

Abstract

PART ONE: Operations Management 1 1. Introduction to Operations and Supply Chain Management 1 S1. Operational Decision-Making Tools: Decision Analysis 33 2. Quality Management 54 3. Statistical Process Control 108 S3. Operational Decision-Making Tools: Acceptance Sampling 148 4. Product Design 156 5. Service Design 189 6. Processes and Technology 226 7. Capacity and Facilities Design 257 S7. Operational Decision-Making Tools: Facility Location Models 297 8. Human Resources 315 S8. Operational Decision-Making Tools: Work Measurement 348 9. Project Management 366 PART TWO: Supply Chain Management 420 10. Supply Chain Management Strategy and Design 420 11. Global Supply Chain Procurement and Distribution 450 S11. Operational Decison-Making Tools: Transportation and Transshipment Models 475 12. Forecasting 495 13. Inventory Management 553 S13. Operational Decision-Making Tools: Simulation 590 14. Sales and Operations Planning 607 S14. Operational Decision-Making Tools: Linear Programming 645 15. Resource Planning 678 16. Lean Systems 720 17. Scheduling 755 APPENDIX A—Normal Curve Areas 789 SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS 790 INDEX 798 Brief Contents E1FTOC01.qxd 8/5/10 2:30 PM Page vi Decision Making With Probabilities 38 Expected Value of Perfect Information 38 Sequential Decision Trees 39 Summary 41 Summary of Key Formulas 42 Summary of Key Terms 42 Solved Problems 42 Problems 42 Case Problem S1.1–Whither an MBA at Strutledge? 51 Case Problem S1.2–Transformer Replacement at Mountain States Electric Service 51 Case Problem S1.3–Evaluating Projects at Nexcom Systems 52 References 53 2. Quality Management 54 ■ Quality Management at Mars 54 What Is Quality? 55 Quality from the Customer’s Perspective 56 Dimensions of Quality for Manufactured Products 56 Dimensions of Quality for Services 56 Quality from the Producer’s Perspective 58 A Final Perspective on Quality 59 Quality Management System 59 The Evolution of Quality Management 59 ■ Applying Deming’s PDCA Cycle in Baldrige Award-Winning Schools and Hospitals 62 Quality Tools 62 Process Flowcharts 64 Cause-and-Effect Diagrams 64 Checksheets and Histograms 65 Pareto Analysis 65 Scatter Diagrams 66 Process Control Charts and Statistical Quality Control 67 TQM and QMS 67 The Focus of Quality Management—Customers 68 Quality Management in the Supply Chain 68 Measuring Customer Satisfaction 69 ■ Measuring Customer Satisfaction with “Voice of the Customer (VoC)” at Two Baldrige Award Winners 70 The Role of Employees in Quality Improvement 70 Kaizen and Continuous Improvement 71 Quality Circles 72 Process Improvement Teams 72 ■ Customer Focus and Employee Empowerment in a Baldrige Award-Winning City 73 Quality in Services 73 PART ONE: OPERATIONS MANAGEMENT 1 1. Introduction to Operations and Supply Chain Management 1 ■ Operations and Supply Chain Management for Chocolate 1 ■ What Do Operations and Supply Chain Managers Do? 3 The Operations Function 2 ■ OM Dialogue: Mark Jackson, Marketing Manager 6 The Evolution of Operations and Supply Chain Management 6 Globalization 9 The China Factor 10 ■ The Balancing Act at New Balance 12 India, The World’s Service Provider 13 Productivity and Competitiveness 14 Strategy and Operations 17 Primary Task 17 Core Competencies 18 Order Winners and Order Qualifiers 18 Positioning the Firm 19 Competing on Cost 19 Competing on Speed 19 ■ Trader Joe’s Unique Strategy 20 Competing on Quality 21 Competing on Flexibility 21 Strategy Deployment 21 Policy Deployment 21 Balanced Scorecard 23 Operations Strategy 25 Organization of this Text 25 Learning Objectives of this Course 26 Summary 26 Summary of Key Terms 27 Questions 27 Problems 28 Case Problem 1.1–Visualize This 30 Case Problem 1.2–Whither an MBA at Strutledge? 30 Case Problem 1.3–Weighing Options at the Weight Club 31 References 31 1. SUPPLEMENT Operational Decision-Making Tools: Decision Analysis 33 Decision Analysis With and Without Probabilities 33 Decision Making Without Probabilities 34 Decision Analysis With Excel 36 Decision Analysis With OM Tools 37 Contents E1FTOC01.qxd 8/5/10 2:30 PM Page vii viii Contents SPC Applied to Services 111 Where to Use Control Charts 112 Control Charts 112 Control Charts for Attributes 113 p-Chart 114 ■ Using Control Charts for Improving Health-Care Quality 116 c-Chart 117 Control Charts for Variables 119 Mean (x –) Chart 119 Range (R-) Chart 122 Using x –- and R- Charts Together 123 Control Chart Patterns 124 Sample Size Determination 125 SPC with Excel and OM Tools 126 Process Capability 127 Process Capability Measures 130 ■ Design Tolerances at Harley-Davidson Company 131 Process Capability with Excel and OM Tools 132 Summary 133 Summary of Key Formulas 133 Summary of Key Terms 133 Solved Problems 134 Questions 135 Problems 135 Case Problem 3.1–Quality Control at Rainwater Brewery 145 Case Problem 3.2–Quality Control at Grass, Unlimited 146 Case Problem 3.3–Improving Service Time at Dave’s Burgers 147 References 147 3. SUPPLEMENT Operational Decision-Making Tools: Acceptance Sampling 148 Single-Sample Attribute Plan 149 Producer’s and Consumer’s Risks 149 The Operating Characteristic Curve 150 Developing a Sampling Plan with OM Tools 151 Average Outgoing Quality 152 Double- and Multiple-Sampling Plans 153 Summary 154 Summary of Key Terms 154 Solved Problem 154 Questions 155 Problems 155 4. Product Design 156 ■ Product Design at Mars 156 The Design Process 157 Idea Generation 158 Feasibility Study 159 ■ Pixar’s Creativity 160 Rapid Prototyping and Concurrent Design 160 Quality Attributes in Services 74 ■ Ritz-Carlton Hotels: Two-Time Baldrige National Quality Award Winner 75 Six Sigma 76 The Six Sigma Goal—3.4 DPMO 76 ■ Motorola’s Six Sigma Quality 77 The Six Sigma Process 78 ■ Six Sigma Highlights 78 Improvement Projects 79 The Breakthrough Strategy: DMAIC 79 ■ North Shore University Hospital: A Six Sigma Project Example 79 Black Belts and Green Belts 80 Design for Six Sigma 80 Lean Six Sigma 80 The Bottom Line—Profitability 82 The Cost of Quality 83 The Cost of Achieving Good Quality 84 The Cost of Poor Quality 84 Measuring and Reporting Quality Costs 85 The Quality–Cost Relationship 87 The Effect of Quality Management on Productivity 87 Productivity 87 Measuring Product Yield and Productivity 88 The Quality–Productivity Ratio 90 Quality Awards 91 The Malcolm Baldrige Award 91 Other Awards for Quality 93 ■ Baldrige National Quality Award Winners: What It Takes 93 ISO 9000 94 Standards 94 Certification 95 Implications of ISO 9000 for U.S. Companies 95 ■ ISO 9001 Certification at Monarcas Morelia 96 ISO Registrars 97 Summary 98 Summary of Key Formulas 98 Summary of Key Terms 98 Solved Problems 99 Questions 99 Problems 102 Case Problem 2.1–Designing a Quality-Management Program for the Internet at D4Q 104 Case Problem 2.2–Quality Management at State University 105 Case Problem 2.3–Quality Problems at the Tech Bookstores 105 Case Problem 2.4–Product Yield at Continental Luggage Company 107 References 107 3. Statistical Process Control 108 ■ Statistical Process Control at Mars and Hershey’s 108 The Basics of Statistical Process Control 109 SPC in Quality Management 110 Quality Measures: Attributes and Variables 110 E1FTOC01.qxd 8/5/10 2:30 PM Page viii Contents ix Service Improvement Analysis 207 Solution of the Single-Server Model with Excel 209 Advanced Single-Server Models 209 Multiple-Server Model 210 The Basic Multiple-Server Model 210 Summary 214 Summary of Key Terms 214 Summary of Key Formulas 215 Solved Problems 215 Questions 216 Problems 217 Case Problem 5.1–Streamlining the Refinancing Process 222 Case Problem 5.2–Herding the Patient 223 Case Problem 5.3–The College of Business Copy Center 223 Case Problem 5.4–Northwoods Backpackers 224 References 225 6. Processes and Technology 226 ■ Processes and Technology for Chocolate Manufacturing 226 Process Planning 228 Outsourcing 228 Process Selection 229 Process Selection with Breakeven Analysis 230 Process Plans 235 Process Analysis 235 Process Flowcharts 236 ■ Making Fast Food Faster 238 Process Innovation 241 Steps in Process Innovation 241 ■ OM Dialogue: Anastasia Thatcher, Business Process Manager 244 Technology Decisions 245 Financial Justification of Technology 245 A Technology Primer 246 Summary 249 Summary of Key Terms 249 Summary of Key Formulas 249 Solved Problems 249 Questions 250 Problems 251 Case Problem 6.1–A Manager’s Woes 253 Case Problem 6.2–Wrong Meds, Again! 254 Case Problem 6.3–The DPA Protocol 255 References 255 7. Capacity and Facilities Design 257 ■ Capacity and Facilities Design at the New England Confectionery Company 257 Capacity Planning 258 Facilities 261 Objectives of Facility Layout 261 ■ Bank of America’s Towering Achievement in Green Design 261 Form Design 161 ■ Apple’s Design Process 162 Functional Design 163 Reliability 163 Maintainability 164 Usability 165 Production Design 165 Final Design and Process Plans 167 Technology in Design 167 Collaborative Product Design Systems 168 Design Quality Reviews 169 ■ Jugaad, Design for the Times 170 Design for Environment 170 Green Sourcing 172 Green Manufacture 172 Green Consumption 173 Recycling and Re-Use 173 Quality Function Deployment 173 ■ Nike’s Trash Talking Shoes 174 Design for Robustness 179 Summary 181 Summary of Key Terms 181 Summary of Key Formulas 182 Solved Problems 182 Questions 183 Problems 183 Case Problem 4.1–Greening Product Design 186 Case Problem 4.2–Lean and Mean 187 References 188 5. Service Design 189 ■ Service Design at Hershey’s 189 The Service Economy 190 Characteristics of Services 191 The Service Design Process 193 ■ Redbox Brings Self-Service to Movie Rentals 193 The Service-Process Matrix 195 Tools for Service Design 196 Service Blueprinting 198 Front Office and Back-Office Activities 199 Servicescapes 199 Quantitative Techniques 199 Waiting Line Analysis for Service Improvement 200 Elements of Waiting Line Analysis 200 Elements of a Waiting Line 200 The Calling Population 200 The Arrival Rate 201 Service Times 202 Queue Discipline and Length 202 Basic Waiting Line Structures 202 Operating Characteristics 204 Traditional Cost Relationships in Waiting Line Analysis 204 The Psychology of Waiting 205 Waiting Line Models 206 The Basic Single-Server Model 206 E1FTOC01.qxd 8/5/10 2:30 PM Page ix x Contents 8. Human Resources 315 ■ Human Resources at Hershey’s 315 Human Resources and Quality Management 317 The Changing Nature of Human Resources Management 318 The Assembly Line 318 Limitations of Scientific Management 319 Employee Motivation 319 ■ Human Resources Management at Baldrige National Quality Award-Winning Companies 320 Contemporary Trends in Human Resources Management 321 Job Training 321 Cross Training 321 ■ Employee Training at Kyphon, Inc., and Triage Consulting Group 322 Job Enrichment 322 Empowerment 323 Teams 323 ■ Reducing Costs by Going Green in the Workplace 324 Flexible Work Schedules 324 Alternative Workplaces and Telecommuting 324 Temporary and Part-Time Employees 325 ■ Telecommuting at Capital One 326 Employee Compensation 326 ■ Part-Time Employees at UPS 327 Types of Pay 327 Gainsharing and Profit Sharing 327 Managing Diversity in the Workplace 328 ■ English in the Workplace 328 Affirmative Action and Equal Opportunity 329 Diversity Management Programs 329 ■ A Commitment to Diversity at UPS and Kodak 330 Global Diversity Issues 331 ■ Developing a Skilled Workforce in China 331 Job Design 332 The Elements of Job Design 333 Task Analysis 333 Worker Analysis 333 Environmental Analysis 334 Ergonomics 334 Technology and Automation 334 Job Analysis 335 Process Flowchart 335 Worker-Machine Chart 336 Motion Study 337 Learning Curves 338 Determining Learning Curves with Excel 341 Learning Curves with OM Tools 342 Summary 342 Summary of Key Formulas 342 Summary of Key Terms 343 Solved Problems 343 Questions 343 Problems 344 Case Problem 8.1–Maury Mills 345 References 347 Basic Layouts 262 Process Layouts 262 Product Layouts 264 Fixed-Position Layouts 266 Designing Process Layouts 266 Block Diagramming 266 ■ The Health Benefits of Good Layout 267 Relationship Diagramming 269 Computerized Layout Solutions 271 ■ Urban Outfitters’ New Distribution Facility 272 Designing Service Layouts 273 Designing Product Layouts 274 Line Balancing 274 Computerized Line Balancing 278 Hybrid Layouts 278 Cellular Layouts 278 Advantages of Cellular Layouts 280 Disadvantages of Cellular Layouts 281 Flexible Manufacturing Systems 282 Mixed-Model Assembly Lines 282 Summary 284 Summary of Key Formulas 285 Summary of Key Terms 285 Solved Problems 286 Questions 287 Problems 287 Case Problem 7.1–Workout Plus 293 Case Problem 7.2–Photo Op–Please Line Up 294 Case Problem 7.3–The Grab ’n Go Café 294 References 296 7. SUPPLEMENT 7 Operational Decision-Making Tools: Facility Location Models 297 Types of Facilities 297 Site Selection: Where to Locate 298 Global Supply Chain Factors 299 Regional and Community Location Factors in the United States 299 Location Incentives 300 Geographic Information Systems 301 Location Analysis Techniques 302 Location Factor Rating 302 Location Factor Rating with Excel and OM Tools 303 Center-of-Gravity Technique 304 Center-of-Gravity Technique with Excel and OM Tools 305 Load-Distance Technique 305 Load-Distance Technique with Excel and OM Tools 307 Summary 308 Summary of Key Formulas 308 Summary of Key Terms 308 Solved Problems 309 Questions 309 Problems 310 Case Problem S7.1–Selecting a European Distribution Center Site for American International Automotive Industries 314 References 314 E1FTOC01.qxd 8/5/10 2:30 PM Page x Contents xi Probabilistic Time Estimates 389 ■ An Interstate Highway Construction Project in Virginia 392 CPM/PERT Analysis with OM Tools 393 Probabilistic Network Analysis 393 Microsoft Project 396 PERT Analysis with Microsoft Project 398 ■ The Corps of Engineers Hurricane Katrina New Orleans Restoration Project 399 Project Crashing and Time-Cost Tradeoff 400 Project Crashing 401 The General Relationship of Time and Cost 403 Summary 404 Summary of Key Formulas 405 Summary of Key Terms 405 Solved Problems 406 Questions 407 Problems 408 Case Problem 9.1–The Bloodless Coup Concert 417 Case Problem 9.2–Moore Housing Contractors 418 References 419 PART TWO: SUPPLY CHAIN MANAGEMENT 420 10. Supply Chain Management Strategy and Design 420 ■ Supply Chain Management Strategy and Design at Mars 420 Supply Chains 421 Supply Chains for Service Providers 423 Value Chains 425 The Management of Supply Chains 425 Supply Chain Uncertainty and Inventory 425 The Bullwhip Effect 426 Risk Pooling 427 ■ Eliminating the Bullwhip Effect at Philips Electronics 427 “Green” Supply Chains 428 ■ Going Green at Walmart 428 Sustainability and Quality Management 429 ■ Achieving Sustainability While Reducing Costs and Increasing Profits 430 Information Technology: A Supply Chain Enabler 431 Electronic Business 431 Electronic Data Interchange 432 ■ Strategic Supply Chain Design at 7-Eleven in Japan and the United States 432 Bar Codes 433 Radio Frequency Identification 433 The Internet 435 ■ Supply Chain Management at Gaylord Hotels 436 Build-To-Order (BTO) 437 Supply Chain Integration 437 Collaborative Planning, Forecasting, and Replenishment 437 8. SUPPLEMENT 8 Operational Decision-Making Tools: Work Measurement 348 Time Studies 348 Stopwatch Time Study 349 Number of Cycles 353 Elemental Time Files 354 Predetermined Motion Times 354 Work Sampling 356 Summary 358 Summary of Key Formulas 358 Summary of Key Terms 358 Solved Problems 359 Questions 359 Problems 360 Case Problem S8.1–Measuring Faculty Work Activity at State University 364 References 365 9. Project Management 366 ■ Project Management at Mars 366 Project Planning 367 Elements of a Project Plan 369 Project Return 369 The Project Team 370 ■ Cross-Cultural Project Teams 370 The Project Manager 371 Scope Statement 371 Work Breakdown Structure 371 Responsibility Assignment Matrix 372 ■ Green Projects on the Increase Around the World 372 Global and Diversity Issues in Project Management 373 ■ Project Management Diversity in China 374 Project Scheduling 375 The Gantt Chart 376 Project Control 377 Time Management 377 Cost Management 377 Quality Management 377 Performance Management 377 Communication 378 ■ Reconstructing the Pentagon after 9/11 378 Enterprise Project Management 379 CPM/PERT 379 The Project Network 380 AOA Network 380 AON Network 381 ■ British Airport Authority’s Terminal 5 Project at Heathrow Airport 382 The Critical Path 382 Activity Scheduling 383 Activity Slack 386 ■ A Couple of Iconic Building Renovation Projects 388 Probabilistic Activity Times 389 E1FTOC01.qxd 8/5/10 2:30 PM Page xi xii Contents Questions 473 Case Problem 11.1–Somerset Furniture Company’s Global Supply Chain–Continued 474 11. SUPPLEMENT 11 Operational Decision-Making Tools: Transportation and Transshipment Models 475 The Transportation Model 475 Solution of the Transportation Model with Excel 477 The Transshipment Model 480 Solution of the Transshipment Problem with Excel 481 Summary 482 Summary of Key Terms 482 Solved Problems 482 Problems 483 Case Problem S11.1–Stateline Shipping and Transport Company 492 Case Problem S11.2–Global Supply Chain Management at Cantrex Apparel International 493 References 494 12. Forecasting 495 ■ Forecasting at Hershey’s 495 The Strategic Role of Forecasting in Supply Chain Management 496 Supply Chain Management 496 ■ Sharing Forecasts at Boeing and Alcoa 498 Quality Management 498 Strategic Planning 499 ■ Supply Chain Forecasting at Heineken USA 499 Components of Forecasting Demand 499 Time Frame 499 Demand Behavior 500 Forecasting Methods 501 Forecasting Process 502 ■ Forecasting at Dell 503 Time Series Methods 503 Moving Average 504 Weighted Moving Average 506 Exponential Smoothing 507 Adjusted Exponential Smoothing 510 Linear Trend Line 512 Seasonal Adjustments 514 ■ The CPFR Process at Bayer Consumer Care in the EU 516 Forecast Accuracy 517 Mean Absolute Deviation 517 Cumulative Error 519 Forecast Control 520 ■ Forecasting Market Demand at NBC 523 Time Series Forecasting Using Excel 524 Forecasting with OM Tools 526 Regression Methods 526 Linear Regression 527 Correlation 529 Supply Chain Management (SCM) Software 438 Measuring Supply Chain Performance 439 Key Performance Indicators 439 ■ Apple’s Top-Ranked Supply Chain 441 Process Control 441 SCOR 442 Summary 444 Summary of Key Terms 444 Summary of Key Formulas 444 Solved Problems 444 Questions 445 Problems 447 Case Problem 10.1–Somerset Furniture Company’s Global Supply Chain 448 References 449 11. Global Supply Chain Procurement and Distribution 450 ■ Global Supply Chain Procurement and Distribution at Hershey’s 450 Procurement 451 Outsourcing 452 E-Procurement 453 E-Marketplaces 454 ■ Virtual Manufacturing at Palm Inc. 454 Reverse Auctions 454 Distribution 455 Speed and Quality 455 Internet Companies: Amazon.com 455 ■ Achieving Warehouse Efficiency and Sustainability at Genzyme Corporation 456 Distribution Centers and Warehousing 457 Postponement 457 ■ Supply Chain Management at Royal Caribbean 457 Warehouse Management Systems 458 Vendor-Managed Inventory 459 ■ Vendor-Managed Inventory (VMI) at Dell 459 Collaborative Logistics 459 Distribution Outsourcing 460 Transportation 460 ■ Supply Chain Operations at Food Distributor Sysco Corporation 462 Internet Transportation Exchanges 463 The Global Supply Chain 463 Obstacles to Global Supply Chain Management 464 Duties, Tariffs, and Global Trading Groups 464 Landed Cost 465 Web-Based International Trade Logistics Systems 465 ■ Achieving Global Sustainability at HP in China 467 Recent Trends in Globalization for U.S. Companies 468 China’s Increasing Role in the Global Supply Chain 468 ■ Brazil as a Potential Near Shore Supplier for the United States 470 Reverse Globalization 470 ■ Reverse Globalization at K’NEX 472 Effects of Terrorism on Global Supply Chains 472 Summary of Key Terms 473 E1FTOC01.qxd 8/5/10 2:30 PM Page xii Contents xiii Solved Problems 580 Questions 582 Problems 582 Case Problem 13.1–The Instant Paper Clip Office Supply Company 587 Case Problem 13.2–The Texas Gladiators Apparel Store Case 587 Problem 13.3–Pharr Foods Company 588 References 589 13. SUPPLEMENT 13 Operational Decision-Making Tools: Simulation 590 Monte Carlo Simulation 590 Computer Simulation with Excel 594 Decision Making with Simulation 596 Areas of Simulation Application 598 Waiting Lines/Service 599 Inventory Management 599 Production and Manufacturing Systems 599 Capital Investment and Budgeting 599 Logistics 599 Service Operations 599 Environmental and Resource Analysis 599 Summary 600 Summary of Key Terms 600 Solved Problems 600 Questions 602 Problems 602 References 606 14. Sales and Operations Planning 607 ■ Sales and Operations Planning at Hershey’s 607 The Sales and Operations Planning Process 608 ■ Disney’s Magic Numbers 611 Strategies for Adjusting Capacity 612 Level Production 612 Chase Demand 612 Peak Demand 613 Overtime and Undertime 613 Subcontracting 613 Part-Time Workers 613 ■ Meeting Demand for Panettones 613 Backlogs, Backordering, and Lost Sales 614 Strategies for Managing Demand 614 ■ The Bullwhip Effect in a Slowdown 615 Quantitative Techniques for Aggregate Planning 616 Pure Strategies 616 General Linear Programming Model 618 Mixed Strategies 619 The Transportation Method 623 Other Quantitative Techniques 623 The Hierarchical Nature of Planning 626 Collaborative Planning 628 Available-to-Promise 628 Regression Analysis with Excel 529 Multiple Regression with Excel 530 ■ Forecasting Airport Security Gate Arrivals at the Transportation Security Administration 533 Summary 534 Summary of Key Formulas 534 Summary of Key Terms 535 Solved Problems 535 Questions 537 Problems 538 Case Problem 12.1–Forecasting at State University 549 Case Problem 12.2–The University Bookstore Student Computer Purchase Program 549 Case Problem 12.3–Cascades Swim Club 550 Case problem 12.4–Forecasting Passenger Arrivals at the Gotham International Airport 551 References 552 13. Inventory Management 553 ■ Inventory Management at Mars 553 The Role of Inventory in Supply Chain Management 555 The Effects of Information Technology on Inventory Management 556 Inventory and Quality Management in the Supply Chain 556 The Elements of Inventory Management 557 Demand 557 Inventory Costs 557 Inventory Control Systems 559 Continuous Inventory Systems 559 Periodic Inventory Systems 560 The ABC Classification System 560 ■ Inventory Management at Dell 561 ■ Determining Supply Chain Strategy by Evaluating Inventory Costs at Hewlett-Packard 563 Economic Order Quantity Models 564 The Basic EOQ Model 564 The Production Quantity Model 567 Solution of EOQ Models with Excel 569 Solution of EOQ Models with OM Tools 570 Quantity Discounts 570 Quantity Discounts with Constant Carrying Cost 571 Quantity Discount Model Solution with Excel 573 Reorder Point 573 Safety Stocks 574 Service Level 574 Reorder Point with Variable Demand 575 Determining the Reorder Point with Excel 576 ■ Establishing Inventory Safety Stocks at Kellogg’s 577 Order Quantity for a Periodic Inventory System 577 Order Quantity with Variable Demand 578 Determining the Order Quantity for the Fixed-Period Model with Excel 578 Summary 579 Summary of Key Formulas 580 Summary of Key Terms 580 E1FTOC01.qxd 8/5/10 2:30 PM Page xiii xiv Contents Item Master File 687 ■ OM Dialogue: Vignesh Ramachandran, Systems Auditor 687 The MRP Process 688 Lot Sizing in MRP Systems 692 Economic Order Quantity 692 Periodic Order Quantity 692 MRP Outputs 694 Capacity Requirements Planning (CRP) 695 Calculating Capacity 696 Load Profiles 697 Overloads 698 Load Leveling 699 Relaxing MRP Assumptions 700 Enterprise Resource Planning (ERP) 700 ■ OM Dialogue: John Snead, Financial Planning and Analysis 701 ERP Modules 702 Finance/Accounting 702 Sales/Marketing 703 Production/Materials Management 703 Human Resources 703 ERP Implementation 704 ■ Under Armour at the Top of Their Game with ERP 704 Analyze Business Processes 706 Choose Modules to Implement 706 Align Level of Sophistication 706 Finalize Delivery and Access 707 Link with External Partners 707 Customer Relationship Management (CRM) 707 Supply Chain Management (SCM) 707 Product Lifecycle Management (PLM) 708 Connectivity, Integration, and Services 708 Summary 709 Summary of Key Terms 710 Questions 710 Solved Problems 711 Problems 712 Case Problem 15.1–Just ERP 717 Case Problem 15.2–Hosuki 717 References 718 16. Lean Systems 720 ■ Lean Production at Mars and Nestlé 720 The Basic Elements of Lean Production 722 Flexible Resources 723 Cellular Layouts 724 The Pull System 726 Kanbans 726 Small Lots 730 Quick Setups 730 Uniform Production Levels 732 ■ Production On-Demand at Conmed 735 Quality at the Source 735 Visual Control 735 Aggregate Planning for Services 630 Revenue Management 631 Overbooking 631 Fare Classes 631 ■ Revenue Management at Harrah’s 631 Single Order Quantities 632 Summary 634 Summary of Key Terms 634 Solved Problems 635 Questions 636 Problems 637 Case Problem 14.1–Seats for Sale 642 Case Problem 14.2–Erin’s Energy Plan 643 References 644 14. SUPPLEMENT 14 Operational Decision-Making Tools: Linear Programming 645 Model Formulation 646 Graphical Solution Method 648 Linear Programming Model Solution 652 The Simplex Method 652 Slack and Surplus Variables 653 Solving Linear Programming Problems with Excel 654 Sensitivity Analysis 655 Sensitivity Ranges 656 Summary 658 Summary of Key Terms 658 Solved Problems 658 Questions 659 Problems 659 Case Problem S14.1–Mosaic Tile Company 672 Case Problem S14.2–Summer Sports Camp at State University 673 Case Problem S14.3–Spring Garden Tools 674 Case Problem S14.4–Walsh’s Juice Company 674 Case Problem S14.5–Julia’s Food Booth 675 Case Problem S14.6–The Sea Village Amusement Park 676 References 677 15. Resource Planning 678 ■ Resource Planning at Hershey’s 678 Material Requirements Planning (MRP) 679 When to Use MRP 680 Dependent Demand 680 Discrete Demand 681 Complex Products 681 Erratic Orders 682 Assemble-to-Order 682 Master Production Schedule 682 Product Structure File 683 Phantom Bills 685 K-Bills 685 Modular Bills 685 Time-Phased Bills 686 E1FTOC01.qxd 8/5/10 2:30 PM Page xiv Contents xv Loading 757 The Assignment Method of Loading 758 Sequencing 761 Sequencing Jobs Through One Process 762 Sequencing Jobs Through Two Serial Processes 764 Guidelines for Selecting a Sequencing Rule 766 ■ Patient Scheduling 767 Monitoring 768 Gantt Charts 768 Input/Output Control 769 ■ OM Dialogue: Margie Deck, Plant Manager 772 Advanced Planning and Scheduling Systems 772 ■ When Good Genes Make Good Schedules 774 Theory of Constraints 774 Drum-Buffer-Rope 775 Process vs. Transfer Batch Sizes 775 Employee Scheduling 777 Automated Scheduling Systems 779 Summary 779 Summary of Key Formulas 780 Summary of Key Terms 780 Solved Problems 780 Questions 781 Problems 782 Case Problem 17.1–America Reads, America Counts 786 Case Problem 17.2–From a Different Perspective 787 References 788 Appendix A Normal Curve Areas 789 Solutions to Selected Odd-Numbered Problems 790 Index 798

Item Type:	Book
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User:	Unnamed user with email [email protected]
Date Deposited:	15 May 2023 09:08
Last Modified:	15 May 2023 09:08
URI:	http://eprint.ulbi.ac.id/id/eprint/1843

Actions (login required)

View Item