Operations Management in the Supply Chain: Decisions and Cases, Eighth Edition
By Roger G. Schroeder and Susan Meyer Goldstein
Contents:
About the Authors iv
Preface v
Part One
Introduction 1
Chapter 1
Introduction to Operations 2
1.1 Definition of Operations and Supply Chain Management 3
1.2 The Role of Operations and Supply Chain Management 4
1.3 Why Study Operations and Supply Chain Management? 6
1.4 Decisions at Pizza U.S.A. 9
1.5 Operations Decisions in the Supply Chain—A Framework 10
1.6 Cross-Functional Decision Making 12
1.7 Operations as a Process 13
1.8 Trends in Operations and Supply Chain Mangement 15
Services 15
Digital Technologies 16
Integration of Decisions Internally and Externally 16
Globalization of Operations and the Supply Chain 17
1.9 Key Points and Terms 17
Learning Enrichment 18
Discussion Questions 18
Chapter 2
Operations and Supply Chain Strategy 20
2.1 Operations Strategy Model 22
Corporate and Business Strategy 23
Operations Mission 24
Operations Objectives 24
Strategic Decisions 25
Distinctive Competence 26
2.2 Competing with Operations Objectives 27
2.3 Cross-Functional Strategic Decisions 28
2.4 Global Operations and Supply Chains 30
2.5 Supply Chain Strategy 31
2.6 Environment and Sustainable Operations 33
2.7 Key Points and Terms 34
Learning Enrichment 35
Discussion Questions 36
Chapter 3
Product Design 37
3.1 Strategies for New Product Introduction 38
3.2 New Product Development Process 39
Concept Development 40
Product Design 40
Pilot Production/ Testing 41
3.3 Cross-Functional Product Design 42
3.4 Supply Chain Collaboration 43
3.5 Quality Function Deployment 45
Customer Attributes 46
Engineering Characteristics 46
3.6 Modular Design 48
3.7 Key Points and Terms 49
Learning Enrichment 50
Discussion Questions 50
Part Two
Process Design 53
Chapter 4
Process Selection 54
4.1 Product-Flow Characteristics 55
4.2 Approaches to Order Fulfillment 60
4.3 Process Selection Decisions 63
4.4 Product-Process Strategy 64
4.5 Focused Operations 66
4.6 Mass Customization 67
4.7 3D Printing and Additive Manufacturing 69
4.8 Environmental Concerns 70
4.9 Cross-Functional Decision Making 71
4.10 Key Points and Terms 72
Learning Enrichment 74
Discussion Questions 74
Chapter 5
Service Process Design 76
5.1 Defining Service 78
5.2 Service-Product Bundle 79
5.3 Service Delivery System Matrix 80
5.4 Customer Contact 83
5.5 Service Recovery and Guarantees 86
5.6 Technology for Services 87
5.7 Globalization of Services 90
5.8 Service Profitability and Employees 92
5.9 Key Points and Terms 94
Learning Enrichment 95
Discussion Questions 96
Chapte 6
Process-Flow Analysis 97
6.1 Process Thinking 98
6.2 The Process View of Business 99
6.3 Process Flowcharting 100
6.4 Process-Flow Analysis as Asking Questions 104
6.5 Process Analytics 106
6.6 Analyzing Process Flows at Pizza U.S.A. 108
6.7 Process Redesign 110
6.8 Key Points and Terms 112
Learning Enrichment 113
Solved Problems 113
Discussion Questions 115
Problems 115
Chapter 7
Lean Thinking and Lean Systems 118
7.1 Evolution of Lean 119
7.2 Lean Tenets 120
Create Value 120
Value Stream 121
Ensure Flow 122
Customer Pull 123
Strive for Perfection 124
7.3 Ensure Flow 126
Stabilize Master Schedule 127
Reducing Setup Time and Lot Sizes 127
Changing Layout and Maintenance 129
Cross-Training and Engaging Workers 130
7.4 Customer Pull 130
7.5 Changing Relationships with Suppliers 133
7.6 Implementation of Lean 135
7.7 Key Points and Terms 137
Learning Enrichment 138
Solved Problems 138
Discussion Questions 139
Problems 140
Part Three
Quality 141
Chapter 8
Managing Quality 142
8.1 Quality as Customer Requirements 143
8.2 Product Quality 144
8.3 Service Quality 146
8.4 Quality Planning, Control, and Improvement 146
8.5 Mistake-Proofing 149
8.6 Ensuring Quality in the Supply Chain 150
8.7 Quality, Cost of Quality, and Financial Performance 151
8.8 Quality Pioneers 154
- Edwards Deming 154
Joseph Juran 154
8.9 ISO 9000 Standards 156
8.10 Malcolm Baldrige Award 158
8.11 Why Some Quality Improvement Efforts Fail 160
8.12 Key Points and Terms 161
Learning Enrichment 162
Discussion Questions 162
Chapter 9
Quality Control and Improvement 163
9.1 Design of Quality Control Systems 164
9.2 Process Quality Control 167
9.3 Attribute Control Chart 169
9.4 Variables Control Chart 170
9.5 Using Control Charts 171
9.6 Process Capability 172
9.7 Continuous Improvement 174
9.8 Six Sigma 178
9.9 Lean and Six Sigma 180
9.10 Key Points and Terms 182
Learning Enrichment 183
Solved Problems 183
Discussion Questions 186
Problems 186
Part FOUR
Capacity and Scheduling 189
Chapter 10
Forecasting 190
10.1 Forecasting for Decision Making 192
10.2 Qualitative Forecasting Methods 193
10.3 Time Series Analytics 195
10.4 Moving Average 196
10.5 Exponential Smoothing 198
10.6 Forecast Accuracy 201
10.7 Advanced Time-Series Forecasting 203
10.8 Causal Forecasting Analytics 204
10.9 Selecting a Forecasting Method 206
Big Data 207
10.10 Collaborative Planning, Forecasting, and Replenishment 208
10.11 Key Points and Terms 209
Learning Enrichment 210
Solved Problems 210
Discussion Questions 212
Problems 213
Supplement: Advanced Methods 215
Chapter 11
Capacity Planning 220
11.1 Capacity Defined 221
11.2 Facilities Decisions 223
Amount of Capacity 224
Size of Facilities 225
Timing of Facility Decisions 226
Facility Location 226
Types of Facilities 227
11.3 Sales and Operations Planning 228
11.4 Cross-Functional Nature of S&OP 230
11.5 Planning Options 231
11.6 Basic Aggregate Planning Strategies 233
11.7 Aggregate Planning Costs 234
11.8 Aggregate Planning Example 235
11.9 Key Points and Terms 239
Learning Enrichment 240
Solved Problems 240
Discussion Questions 245
Problem 246
Chapter 12
Scheduling Operations 249
12.1 Batch Scheduling 250
12.2 Gantt Charts 251
12.3 Finite Capacity Scheduling 254
12.4 Theory of Constraints 256
12.5 Priority Dispatching Rules 258
12.6 Planning and Control Systems 260
12.7 Key Points and Terms 262
Learning Enrichment 263
Solved Problems 263
Discussion Questions 265
Problems 265
Chapter 13
Project Planning and Scheduling 267
13.1 Objectives and Trade-offs 268
13.2 Planning and Control in Projects 269
13.3 Scheduling Methods 272
13.4 Constant-Time Networks 273
13.5 CPM Method 279
13.6 Use of Project Management Concepts 281
13.7 Key Points and Terms 282
Learning Enrichment 283
Solved Problems 284
Discussion Questions 287
Problems 287
Part FIVE
Inventory 291
Chapter 14
Independent Demand Inventory 292
14.1 Definition of Inventory 293
14.2 Purpose of Inventories 295
14.3 Costs of Inventory 296
14.4 Independent versus Dependent Demand 297
14.5 Economic Order Quantity 298
14.6 Continuous Review System 302
14.7 Periodic Review System 306
14.8 Using P and Q Systems in Practice 309
14.9 Vendor Managed Inventory 311
14.10 ABC Classification of Inventory 312
14.11 Key Points and Terms 313
Learning Enrichment 314
Solved Problems 315
Discussion Questions 317
Problems 317
Supplement: Advanced Models 320
Chapter 15
Materials Requirements Planning and ERP 323
15.1 The MRP System 324
15.2 MRP versus Order-Point Systems 326
15.3 Parts Explosion: How an MRP System Works 327
15.4 MRP System Elements 332
Master Scheduling 332
Bill of Materials (BOM) 333
Inventory Records 333
Capacity Planning 334
Purchasing 334
Shop-Floor Control 334
15.5 Operating an MRP System 335
15.6 The Successful MRP System 336
15.7 Enterprise Resource Planning Systems 337
15.8 Key Points and Terms 340
Learning Enrichment 341
Solved Problem 341
Discussion Questions 343
Problems 344
Part SIX 347
Supply Chain Decisions 347
Chapter 16
Supply Chain Management 348
16.1 Supply Chain and Supply Chain Management 349
16.2 Measuring Supply Chain Performance 351
16.3 Supply Chain Dynamics—The Bullwhip Effect 355
16.4 Improving Supply Chain Performance 358
16.5 Supply Chain Structural Improvements 358
16.6 Supply Chain System Improvements 361
16.7 Technology and Supply Chain Management 362
E-commerce and Omni-channel Marketing 364
Blockchain Technology 364
16.8 Supply Chain Risk and Resilience 366
Analysis of Supply Chain Risk 367
16.9 Sustainability of the Supply Chain 369
16.10 Key Points and Terms 372
Learning Enrichment 374
Discussion Questions and Problems 374
Chapter 17
Sourcing 376
17.1 Importance of Sourcing 377
17.2 Sourcing Goals 378
17.3 Insource or Outsource? 378
Advantages of Outsourcing 379
Disadvantages of Outsourcing 380
Total Cost Analysis 381
17.4 Offshoring 382
Costs of Offshoring 382
Reshoring 383
17.5 Global Sourcing 384
17.6 Supply Base Optimization 385
Spend Analysis 385
Total Number of Suppliers 385
Single or Multiple Suppliers 386
17.7 The Purchasing Cycle 387
Internal User-Buyer Interface 387
Sourcing Make-Buy Decision 388
Find Suppliers 388
Supplier Selection 388
Supplier Relationship Management 389
17.8 Challenges Facing Purchasing 389
17.9 Key Points and Terms 391
Learning Enrichment 392
Solved Problems 393
Discussion Questions 394
Problems 394
Chapter 18
Global Logistics 397
18.1 Role of Logistics in Supply Chain Management 398
18.2 Transportation 400
Transportation Economics 400
Modes of Transportation 401
Selecting the Transportation Mode 404
18.3 Distribution Centers and Warehousing 405
18.4 Logistics Networks 408
Location 408
Number of Warehouses (Distribution Centers) 411
18.5 Global Logistics 412
18.6 Third-Party Logistics Providers 414
18.7 Logistics Strategy 416
18.8 Key Points and Terms 418
Learning Enrichment 419
Solved Problems 419
Discussion Questions 421
Problems 421
PART SEVEN
CASE STUDIES
Introduction 423
Operations Strategy at BYD of China, Electrifying the World’s
Automotive Market 424
Early Supplier Integration for John Deere Skid-Steer Loader 430
Process Design
Eastern Gear, Inc.: Job Shop 432
Sage Hill Inn Above Onion Creek: Focusing on Service Process and Quality 435
U.S. Stroller: Lean 439
The Westerville Physician Practice: Value Stream Mapping 445
Quality
Mayo Clinic and the Path to Quality 449
Toledo Custom Manufacturing: Quality Control 455
The Evolution of Lean Six Sigma at 3M, Inc. 457
Capacity and Scheduling
Best Homes, Inc.: Forecasting 463
Polaris Industries Inc.: Global Plant Location 465
Lawn King, Inc.: Sales and Operations Planning 470
Inventory
Consolidated Electric: Inventory Control 474
Southern Toro Distributor, Inc. 479
ToysPlus, Inc.: MRP 485
Supply Chain
Amazon Revolutionizes Supply Chain Management 489
Altimus Brands: Managing Procurement Risk 496
Murphy Warehouse Company: Sustainable Logistics 499
ShelterBox: A Decade of Disaster Relief 503
APPENDIXES
A Areas Under the Standard Normal Probability Distribution 507
B Random Number Table 508
INDEX 509
ACRONYMS 519
Online Technical Chapters
Technical Chapters available in the Instructor’s Resource Library in
Connect
Waiting Lines
Simulation
Transportation Method
Linear Programming