Operations and Supply Chain Management, Second Edition
By David A. Collier and James R. Evans
Contents:
Part 1
Basic concepts of OM and value chains
1 Operations Management and Value Chains 1
1-1 Operations Management 2
1-2 OM in the Workplace 3
1-3 Understanding Goods and Services 5
1-4 The Concept of Value 8
1-5 Customer Benefit Packages 8
1-6 Value Chains 11
1-7 Value Chain Frameworks 13
1-8 OM: A History of Change and Challenge 20
1-9 Current and Future Challenges 24
Chapter Case: Mickey Mouse: To Talk or Not? 29
Chapter Case: Zappos, A Subsidiary of Amazon 29
Integrative Case: Hudson Jewelers 30
2 Measuring Performance
in Operations and Value Chains 31
2-1 Types of Performance Measures 32
2-2 Analytics in Operations Management 38
2-3 Designing Measurement Systems in Operations 43
2-4 Models of Organizational Performance 44
Chapter Case: Rapido Burrito 56
Chapter Case: Greyhound Bank: Credit Card Division 57
Integrative Case: Hudson Jewelers 58
3 Operations Strategy 59
3-1 Gaining Competitive Advantage 60
3-2 Understanding Customer Wants and Needs 60
3-3 Evaluating Goods and Services 61
3-4 Competitive Priorities 63
3-5 OM and Strategic Planning 66
3-6 A Framework for Operations Strategy 71
Chapter Case: The Greater Cincinnati
Chamber of Commerce 80
Chapter Case: Sustainable Lawn Care 81
Integrative Case: Hudson Jewelers 82
4 Technology and Operations Management 83
4-1 Understanding Technology in Operations 84
4-2 Technology in Value Chains 88
4-3 Benefits and Challenges of Technology 90
4-4 Technology Decisions and Implementation 91
Chapter Case: RoboJet Car Wash 102
Chapter Case: Bracket International—The
RFID Decision 104
Integrative Case: Hudson Jewelers 105
Part 2
DESIGNING OPERATIONS AND SUPPLY CHAINS
5 Goods and Service Design 106
5-1 Designing Goods and Services 107
5-2 Customer-Focused Design 110
5-3 Designing Manufactured Goods 112
5-4 Service-Delivery System Design 121
5-5 Service-Encounter Design 123
5-6 An Integrative Case Study of LensCrafters 126
Chapter Case: Gulf Coast Bank: Service Guarantees 136
Chapter Case: Tom’s Auto Service 137
Integrative Case: Hudson Jewelers 139
6 Supply Chain Design 140
6-1 Global Supply Chains 141
6-2 Supply Chain Design Trade-Offs 145
6-3 A Global Supply Chain Example: Inditex/Zara 153
6-4 Location Decisions 156
6-5 Supply Chain Optimization 162
Chapter Case: Bookmaster: Value
Chain Design 170
Chapter Case: Boston Red Sox Spring Training Decision 171
Integrative Case: Hudson Jewelers 173
7 Process Selection, Design, and Improvement 174
7-1 Process Choice Decisions 175
7-2 The Product-Process Matrix 179
7-3 The Service-Positioning Matrix 180
7-4 Process Design 183
7-5 Mistake-Proofing Processes 189
7-6 Process Improvement 192
Chapter Case: Custom Drapes, Inc. 199
Chapter Case: Hickory Medical Clinic 200
Integrative Case: Hudson Jewelers 202
8 Facility and Work Design 203
8-1 Facility Layout 204
8-2 Designing
Product Layouts 208
8-3 Designing Process Layouts 215
8-4 Work Measurement 216
8-5 Workplace and Job Design 219
Chapter Case: Employee 842 versus The State 229
Chapter Case: BankUSA: Cash Movement 231
Integrative Case: Hudson Jewelers 233
Part 3
MANAGING OPERATIONS AND SUPPLY CHAINS
9 Forecasting and Demand Planning 234
9-1 Forecasting and Demand Planning 235
9-2 Basic Concepts in Forecasting 237
9-3 Statistical Forecasting Models 241
9-4 Regression as a Forecasting Approach 246
9-5 Judgmental
Forecasting 250
9-6 Forecasting in Practice 251
Chapter Case: United Dairies, Inc. 259
Chapter Case: BankUSA: Forecasting Help Desk Demand by Day 260
Integrative Case: Hudson Jewelers 261
10 Capacity Management 262
10-1 Understanding Capacity 263
10-2 Capacity Measurement 265
10-3 Long-Term Capacity Strategies 270
10-4 Short-Term Capacity Management 273
10-5 Learning Curves and Capacity Requirements 276
Chapter Case: Appleton Pulp and Paper Mill 284
Chapter Case: David Christopher, Orthopedic Surgeon 285
Integrative Case: Hudson Jewelers 286
11 Process Analysis and Resource Utilization 287
11-1 Resource Utilization 288
11-2 Process Throughput and Bottlenecks 290
11-3 Little’s Law 296
11-4 Managing Waiting Lines 299
11-5 Simulation Models for Analyzing Queueing Processes 306
11-6 The Theory of Constraints 310
Chapter Case: The University Rare Book Library Process 325
Chapter Case: Bourbon County Court 327
Integrative Case: Hudson Jewelers 329
12 Managing Inventories in Supply Chains 330
12-1 Understanding Inventory 331
12-2 Inventory Characteristics 335
12-3 ABC Inventory Analysis 337
12-4 Managing Fixed-Quantity Inventory Systems 340
12-5 Managing Fixed-Period Inventory Systems 350
12-6 Single-Period Inventory Model 353
12-7 Simulation Modeling of Inventory Systems 355
Chapter Case: Margate Hospital 370
Chapter Case: Hardy Hospital 371
Integrative Case: Hudson Jewelers 373
13 Supply Chain Management and Logistics 374
13-1 Managing Supply Chains 375
13-2 Logistics 379
13-3 Risk Management in Supply Chains 383
13-4 Supply Chains in E-Commerce 386
13-5 Measuring Supply Chain Performance 387
13-6 Sustainability in Supply Chains 394
Chapter Case: LCC Medical Manufacturing, Inc. 404
Chapter Case: J&L Packaging, Inc.: Cash-to-Cash Conversion Cycle 405
Integrative Case: Hudson Jewelers 406
14 Resource Management 407
14-1 Resource Planning Framework for Goods and Services 408
14-2 Aggregate Planning Options 412
14-3 Strategies for Aggregate Production Planning 414
14-4 Using Optimization Models for Resource Management 422
14-5 Disaggregation in Manufacturing 427
14-6 Capacity Requirements Planning 437
Chapter Case: Rocker Industries (A) 447
Chapter Case: Rocker Industries (B) 448
Chapter Case: Blue Note Mortgage 449
Integrative Case: Hudson Jewelers 450
15 Operations Scheduling and Sequencing 451
15-1 Understanding Scheduling and Sequencing 452
15-2 Scheduling Applications and Approaches 453
15-3 Sequencing 462
15-4 Dispatching Rules for Job Shop Scheduling 468
15-5 Two-Resource Sequencing Problem 470
15-6 Schedule Monitoring and Control 472
15-7 Vehicle Routing and Scheduling 473
Chapter Case: Luke’s Balloon Shop 483
Chapter Case: Midwest Frequent Flyer Call Center 484
Integrative Case: Hudson Jewelers 487
16 Quality Management 488
16-1 Understanding Quality 489
16-2 Influential Leaders in Modern
Quality Management 492
16-3 The Gap Model 494
16-4 ISO 9000 495
16-5 Six Sigma 496
16-6 Cost-of-Quality Measurement 501
16-7 The “Seven QC Tools” 503
16-8 Other Quality Improvement Strategies 508
Chapter Case: Bonnie Blaine, Director of Hospital Operations 515
Chapter Case: Sunshine Enterprises 518
Integrative Case: Hudson Jewelers 520
17 Quality Control and SPC 521
17-1 Quality Control Systems 522
17-2 Variation and Statistical Process Control 524
17-3 Constructing Control Charts 527
17-4 Practical Issues in SPC Implementation 534
17-5 Process Capability 535
Chapter Case: Eckhardt Hospital 543
Chapter Case: Goodman Tire and Rubber Company 544
Integrative Case: Hudson Jewelers 545
18 Lean Operating Systems 546
18-1 Principles of Lean Operating Systems 547
18-2 Lean Tools and Approaches 549
18-3 Lean Six Sigma 554
18-4 Lean Manufacturing and Service Tours 554
18-5 Just-in-Time Systems 557
18-6 Comparing Six Sigma, Lean, and the Theory of Constraints 562
Chapter Case: Kempfer Furniture, Inc. 569
Chapter Case: Community Medical Associates 570
Integrative Case: Hudson Jewelers 571
19 Project Management 572
19-1 The Scope of Project Management 574
19-2 Techniques for Planning, Scheduling, and Controlling Projects 576
19-3 Time/Cost Trade-Offs 585
19-4 Uncertainty in Project Management 589
Chapter Case: University Medical Center 602
Chapter Case: Alternative Water Supply 603
Integrative Case: Hudson Jewelers 605
Supplements
A Probability and Statistics 607
Descriptive Statistics 607
Spreadsheet Template for Statistical Analysis 608
Excel Data Analysis Tools 610
Sampling and Sample Size 610
Probability 611
Useful Probability Distributions 614
Regression and Correlation 617
B Decision Analysis 619
Selecting Decision Alternatives 621
C Break-Even Analysis 626
Profitability Analysis 626
Outsourcing Decisions 627
Technology Choice Decisions 628
Excel Break-Even Template 629
D Linear Optimization 631
Developing Linear Optimization Models 631
Solving Linear Optimization Models
with Excel Solver 634
E The Transportation and Assignment Problems 638
Modeling the Transportation Problem 638
Modeling the Assignment Problem 642
F Queuing Models 645
Queuing Systems 645
Multiple Server Queuing Model 652
G Simulation 655
Using Probability Distributions in Simulation 656
Appendix A Areas for the Cumulative Standard Normal Distribution 661
Appendix B Factors for x–- and R-Control Charts 664
Endnotes 665
Glossary 669
Index 677