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Introduction to Operations and Supply Chain Management

ISBN: 9780139446207 | 0139446206
Format: Hardcover
Publisher: Prentice Hall
Pub. Date: 1/1/2006

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SummaryTable of ContentsAuthor Biography
For the core course in Operations Management. This is the first text to provide an integrated and comprehensive treatment of both operations and supply chain management. Students learn how firms must link with their supply chain partners in order to gain a market advantage.
Prefacexix
PART I Creating Value through Operations and Supply Chains
1(118)
Introduction to Operations and Supply Chain Management
1... MORE
Introduction
2(2)
Why Study Operations and Supply Chain Management?
4(6)
Operations Management
5(2)
Supply Chain Management
7(3)
Important Trends
10(1)
Electronic Commerce
10(1)
Increasing Competition and Globalization
11(1)
Relationship Management
11(1)
Operations and Supply Chain Management and You
11(3)
Professional Organizations
12(1)
Cross-functional and Interorganizational Linkages
13(1)
Purpose and Organization of This Book
14(7)
Chapter Summary
16(1)
Key Terms
16(1)
Discussion Questions
16(1)
Problems
17(1)
Case Study
17(2)
References
19(2)
Operations and Supply Chain Strategies
21(22)
Dell Computer Corporation
22(1)
Introduction
23(1)
Elements of the Business
23(1)
Strategy
23(2)
Operations and Supply Chain Strategies
25(18)
Customer Value
27(1)
Four Performance Dimensions
28(2)
Trade-Offs Among Performance Dimensions
30(1)
Order Winners and Order Qualifiers
31(1)
Stages of Alignment with the Business Strategy
32(1)
Core Competencies in Operations and Supply Chains
33(2)
Chapter Summary
35(1)
Key Formulas
35(1)
Key Terms
36(1)
Solved Problem
36(2)
Discussion Questions
38(1)
Problems
38(2)
Case Study
40(1)
References
41(2)
Business Processes
43(28)
Procter & Gamble
44(1)
Introduction
45(1)
Business Processes
46(2)
Improving Business Processes
47(1)
Mapping Business Processes
48(7)
Relationship Maps
49(2)
Process Maps
51(4)
Measuring Process Performance
55(4)
Productivity
55(2)
Efficiency
57(1)
Cycle Time
58(1)
Reducing Cycle Times
59(2)
Cycle Time Drivers
59(1)
Organizing for Cycle Time Reduction
60(1)
Benchmarking
61(1)
Strategies for Business Process Improvement
62(9)
Internal and External Business Processes
62(1)
Continuous Improvement and Business Process Reengineering (BPR)
62(1)
Chapter Summary
63(1)
Key Formulas
64(1)
Key Terms
64(1)
Solved Problem
64(2)
Discussion Questions
66(1)
Problems
67(2)
Case Study
69(1)
References
70(1)
Managing Quality
71(48)
Decatur Trust Bank
72(1)
Introduction
73(1)
Quality Defined
73(2)
Total Cost of Quality
75(2)
Total Quality Management
77(5)
Continuous Improvement Tools
82(5)
Process Mapping
82(1)
Root Cause Analysis
82(4)
PDCA Cycle
86(1)
Statistical Quality Control
87(15)
Process Capability
87(3)
Six-Sigma Quality
90(1)
Control Charts
91(8)
Acceptance Sampling
99(2)
Taguchi's Quality Loss Function
101(1)
Managing Quality Across the Supply Chain
102(17)
ISO 9000
102(1)
External Failures in the Supply Chain
103(1)
Chapter Summary
104(1)
Key Formulas
104(2)
Key Terms
106(1)
Using Excel in Quality Management
107(1)
Solved Problem
107(2)
Discussion Questions
109(1)
Problems
110(6)
Case Study
116(2)
References
118(1)
PART II Establishing the Operations Environment
119(124)
Managing Projects
119(26)
Bechtel Group
120(1)
Introduction
120(1)
The Growing Importance of Project Management
121(1)
Project Phases
122(2)
Concept Phase
122(1)
Project Definition Phase
123(1)
Planning Phase
123(1)
Performance Phase
124(1)
Postcompletion Phase
124(1)
Project Management Tools
124(11)
Gantt Charts
124(2)
Network Diagrams
126(1)
Constructing a Network Diagram
127(4)
Crashing a Project
131(4)
Project Management Software
135(10)
Chapter Summary
138(1)
Key Formulas
138(1)
Key Terms
138(1)
Solved Problem
139(1)
Discussion Questions
140(1)
Problems
141(3)
Case Study
144(1)
References
144(1)
Developing Products and Services
145(22)
Whirlpool
146(1)
Introduction
147(1)
Product Design and the Development Process
147(1)
Four Reasons for Developing New Products and Services
147(2)
Operations and Supply Chain Perspectives on Design
149(3)
Robust Design, Testability, and Serviceability
149(1)
Product Volumes
150(1)
Product Costs
150(1)
Match with Existing Capabilities
151(1)
The Development Process
152(3)
A Model of the Development Process
153(1)
Sequential Development versus Concurrent Engineering
154(1)
Organizational Roles in Product and Service Development
155(3)
Engineering
155(1)
Marketing
156(1)
Accounting
156(1)
Finance
156(1)
Designers
156(1)
Purchasing
157(1)
Suppliers
158(1)
Who Leads?
158(1)
Approaches to Improving Product and Service Designs
158(9)
Quality Function Deployment (QFD)
158(2)
Computer-Aided Design (CAD) and Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM)
160(1)
Design for Manufacturability (DFM), Design for Maintainability (DFMt), and Design for the Environment (DFE)
160(1)
Target Costing and Value Analysis
161(3)
Chapter Summary
164(1)
Key Terms
164(1)
Discussion Questions
164(1)
Case Study
165(1)
References
166(1)
Process Choice and Layout Decisions in Manufacturing and Services
167(40)
Bliven Furniture Company
168(1)
Introduction
169(1)
Manufacturing Processes
169(8)
Production Lines and Continuous Flow Manufacturing
170(2)
Job Shops
172(1)
Batch Manufacturing
173(1)
Fixed-Position Layout
174(1)
Hybrid Manufacturing Processes
174(1)
Linking Manufacturing Processes across the Supply Chain
174(1)
Selecting a Manufacturing Process
175(1)
The Product-Process Matrix
175(2)
Product Customization within the Supply Chain
177(3)
Four Levels of Customization
177(1)
The Customization Point
177(3)
Service Processes
180(5)
The Service Package
180(1)
Service Customization
181(1)
Customer Contact
182(1)
Service Positioning
183(1)
Services within the Supply Chain
184(1)
Layout Decision Models
185(22)
Line Balancing
186(4)
Assigning Department Locations in Functional Layouts
190(4)
Chapter Summary
194(1)
Key Formulas
194(1)
Key Terms
195(1)
Solved Problem
195(3)
Discussion Questions
198(1)
Problems
199(4)
Case Study
203(2)
References
205(2)
Managing Capacity
207(36)
Merck and Crixivan
208(1)
Introduction
209(1)
Capacity
209(2)
Measures of Capacity
209(1)
Factors That Affect Capacity
210(1)
Supply Chain Considerations
211(1)
Three Common Capacity Strategies
211(1)
Methods of Evaluating Capacity Alternatives
212(9)
Cost
212(3)
Demand Considerations
215(1)
Expected Value
216(1)
Decision Trees
217(3)
Break-Even Analysis
220(1)
Other Considerations
220(1)
Advanced Perspectives on Capacity
221(22)
The Theory of Constraints (TOC)
221(1)
Waiting Line Theory
222(6)
Learning Curves
228(3)
Chapter Summary
231(1)
Key Formulas
231(2)
Key Terms
233(1)
Using Excel in Capacity Management
233(1)
Solved Problem
234(1)
Discussion Questions
235(1)
Problems
235(5)
Case Study
240(1)
References
241(2)
PART III Establishing Supply Chain Linkages
243(130)
Forecasting
243(48)
Ford's Palladium Debacle
244(1)
Introduction
245(1)
Forecast Types
245(1)
Demand Forecasts
245(1)
Supply Forecasts
245(1)
Price Forecasts
246(1)
Laws of Forecasting
246(1)
Law 1: Forecasts Are Almost Always Wrong
246(1)
Law 2: Forecasts for the Near Term Tend to Be More Accurate
246(1)
Law 3: Forecasts for Groups of Products or Services Tend to Be Accurate
246(1)
Law 4: Forecasts Are No Substitute for Calculated Values
246(1)
Selecting a Forecasting Method
247(1)
Qualitative Forecasting Methods
248(1)
Time Series Forecasting Methods
248(19)
Last Period
250(1)
Moving Average
251(2)
Weighted Moving Average
253(1)
Exponential Smoothing
254(3)
Adjusted Exponential Smoothing
257(2)
Linear Regression
259(4)
Seasonal Adjustments
263(4)
Causal Forecasting Models
267(6)
Linear Regression
268(3)
Multiple Regression
271(2)
Measures of Forecast Accuracy
273(3)
Computer-Based Forecasting Packages
276(1)
Collaborative Planning, Forecasting, and Replenishment (CPFR)
276(15)
Chapter Summary
277(1)
Key Formulas
278(2)
Key Terms
280(1)
Solved Problem
281(3)
Discussion Questions
284(1)
Problems
284(6)
Case Study
290(1)
References
290(1)
Sourcing Decisions and the Purchasing Process
291(44)
Dell Computer Corporation
292(1)
Introduction
292(1)
Why Purchasing Is Critical
293(4)
The Changing Global Competitive Landscape
293(1)
Financial Impact
293(3)
Performance Impact
296(1)
The Sourcing Decision
297(5)
Advantages and Disadvantages of Insourcing and Outsourcing
298(2)
Total Cost Analysis
300(2)
Sourcing Strategies
302(3)
The Purchasing Process
305(7)
Needs Identification
306(1)
Description
306(1)
Supplier Identification and Evaluation
307(2)
Supplier Selection
309(1)
Purchase Order Preparation
310(1)
Follow-Up and Expediting
311(1)
Receipt and Inspection
311(1)
Invoice Clearance and Payment
311(1)
Records Maintenance
312(1)
Multicriteria Decision Models in Sourcing and Purchasing
312(10)
Analytic Hierarchy Process
312(8)
Weighted Point Evaluation System
320(2)
Trends in Purchasing Management
322(13)
Long-Term Contracts and Consolidation
322(1)
Supply Base Reduction
322(1)
Global Purchasing
323(1)
Supplier Performance Measurement
323(1)
Supplier Technology
323(1)
Information Technology
323(1)
Professionalism in Purchasing
324(2)
Chapter Summary
326(1)
Key Formulas
326(1)
Key Terms
327(1)
Solved Problem
327(1)
Discussion Questions
328(1)
Problems
329(4)
Case Study
333(1)
References
334(1)
Logistics
335(38)
Kraft Foods
336(1)
Introduction
337(1)
The Logistics Renaissance
337(1)
Why Logistics Is Critical
338(1)
Logistics Decision Areas
339(11)
Transportation
340(2)
Selecting a Transportation Mode
342(1)
Multimodal Solutions
343(1)
Warehousing
344(3)
Improving Operational Flexibility
347(1)
Logistics Information Systems
348(1)
Material Handling and Packaging
349(1)
Inventory Management
349(1)
Logistics Strategy
350(4)
Owning versus Outsourcing
351(1)
Measuring Logistics Performance
351(2)
Landed Costs
353(1)
Logistics Decision Models
354(19)
Weighted Center of Gravity Method
355(2)
Optimization Models
357(1)
The Assignment Problem
357(6)
Chapter Summary
363(1)
Key Formulas
363(1)
Key Terms
364(1)
Solved Problem
365(1)
Discussion Questions
366(1)
Problems
367(3)
Case Study
370(1)
References
371(2)
PART IV Planning and Controlling Operations and Supply Chains
373(154)
Sales and Operations Planning (Aggregate Planning)
373(38)
Covolo Diving Gear, Part 1
374(1)
Introduction
374(1)
S&OP in the Planning Cycle
375(1)
Major Approaches to S&OP
376(13)
Top-Down Planning
378(3)
Level, Chase, and Mixed Production Plans
381(4)
Bottom-Up Planning
385(2)
Cash Flow Analysis
387(2)
Organizing for and Implementing S&OP
389(4)
Choosing between Alternative Plans
389(2)
Rolling Planning Horizons
391(1)
Implementing S&OP in the Organization
391(2)
Services Considerations
393(2)
Making Sales Match Capacity
393(1)
Making Capacity Match Sales
394(1)
Linking S&OP throughout the Supply Chain
395(1)
Applying Optimization Modeling to S&OP
396(15)
Chapter Summary
400(1)
Key Formulas
400(1)
Key Terms
400(1)
Solved Problem
401(1)
Discussion Questions
402(1)
Problems
403(6)
Case Study
409(1)
References
410(1)
Managing Inventory throughout the Supply Chain
411(40)
Amazon.com
412(1)
Introduction
412(1)
The Role of Inventory
413(5)
Inventory Types
414(2)
Inventory Drivers
416(2)
Independent versus Dependent Demand Inventory
418(1)
Periodic Review Systems
418(2)
Restocking Levels
419(1)
Continuous Review Systems
420(9)
The Economic Order Quantity (EOQ)
421(3)
Reorder Points and Safety Stock
424(3)
Quantity Discounts
427(2)
Single Period Inventory Systems
429(4)
Target Service Level
430(1)
Target Stocking Point
431(2)
Inventory in the Supply Chain
433(4)
The Bullwhip Effect
433(1)
Inventory Positioning
434(3)
Transportation, Packaging, and Material Handling Considerations
437(1)
Proactive Management of Independent Demand Inventory
437(14)
Chapter Summary
438(1)
Key Formulas
439(1)
Key Terms
440(1)
Using Excel in Inventory Management
440(1)
Solved Problems
441(1)
Discussion Questions
442(1)
Problems
443(5)
Case Study
448(2)
References
450(1)
Managing Production across the Supply Chain
451(38)
Herman Miller
452(1)
Introduction
453(1)
Master Scheduling
454(7)
The Master Schedule Record
455(4)
Using the Master Schedule
459(2)
Material Requirements Planning
461(10)
The MRP Record
463(6)
The Advantages of MRP
469(1)
Special Considerations in MRP
469(2)
Production Activity Control and Vendor Order Management Systems
471(2)
Job Sequencing
471(2)
Monitoring and Tracking Technologies
473(1)
Synchronizing Planning and Control across the Supply Chain
473(16)
Distribution Requirements Planning
474(2)
Chapter Summary
476(1)
Key Formulas
476(1)
Key Terms
477(1)
Solved Problem
478(1)
Discussion Questions
479(1)
Problems
479(9)
Case Study
488(1)
References
488(1)
JIT/Lean Production
489(20)
Toyota Motor Company
490(1)
Introduction
491(1)
The JIT Perspective on Waste
492(1)
The JIT Perspective on Inventory
493(2)
Kanban Systems
495(14)
Controlling Inventory Levels Using Kanbans
498(2)
Synchronizing the Supply Chain Using Kanbans
500(1)
Using MRP and Kanban Together
501(1)
Chapter Summary
502(1)
Key Formulas
503(1)
Key Terms
503(1)
Solved Problem
503(1)
Discussion Questions
504(1)
Problems
505(1)
Case Study
506(2)
References
508(1)
Managing Information Technologies across the Supply Chain
509(18)
SciQuest
510(1)
Introduction
511(1)
Understanding Information Needs
511(3)
Differences across Organizational Levels
511(2)
Direction of Linkages
513(1)
Diagnosing and Improving Supply Chain Information Flows
514(3)
The Information Flow Profile
514(3)
Supply Chain Information Systems
517(3)
Software Vendor Profiles
520(7)
SAP AG
520(1)
Seibel Systems
520(1)
i2
521(1)
SAS
522(1)
Chapter Summary
522(1)
Key Terms
523(1)
Discussion Questions
523(1)
Case Study
524(1)
References
525(2)
Appendices527(6)
Glossary533(14)
Index547
Robert Handfield is the Bank of America Professor and a Distinguished University Professor at N.C. State University.

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