Operations Management, 14th Edition PDF by William J. Stevenson

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Operations Management, Fourteenth Edition

By William J. Stevenson

Operations Management, 14th Edition

Contents

Preface vii

1 Introduction to Operations Management 2

Introduction 4

Production of Goods Versus Providing Services 8

Why Learn About Operations Management? 10

Career Opportunities and Professional Societies 12

Process Management 13

The Scope of Operations Management 14

Reading:

Why Manufacturing Matters 17

Operations Management and Decision Making 18

Reading:

Analytics 20

The Historical Evolution of Operations Management 21

Operations Today 24

Reading:

Agility Creates a Competitive Edge 26

Key Issues for Today’s Business Operations 27

Readings:

Sustainable Kisses 28

Diet and the Environment: Vegetarian Nonvegetarian 29

Operations Tour:

Wegmans Food Markets 33

Summary 36

Key Points 36

Key Terms 36

Discussion and Review Questions 36

Taking Stock 37

Critical Thinking Exercises 37

Case:

Hazel 38

Selected Bibliography and Further Readings 38

Problem-Solving Guide 39

2 Competitiveness, Strategy, and

Productivity 40

Introduction 42

Competitiveness 42

Mission and Strategies 44

Readings:

Amazon Ranks High in Customer Service 45

Low Inventory Can Increase Agility 50

Operations Strategy 51

Implications of Organization Strategy for Operations Management 54

Transforming Strategy into Action: The Balanced Scorecard 54

Productivity 56

Readings:

Why Productivity Matters 59

Dutch Tomato Growers’ Productivity Advantage 60

Productivity Improvement 62

Summary 62

Key Points 63

Key Terms 63

Solved Problems 63

Discussion and Review Questions 64

Taking Stock 64

Critical Thinking Exercises 65

Problems 65

Cases:

Home-Style Cookies 67

Hazel Revisited 68

“Your Garden Gloves” 69

Girlfriend Collective 69

Operations Tour:

The U.S. Postal Service 70

Selected Bibliography and Further Readings 73

3 Forecasting 74

Introduction 76

Features Common to All Forecasts 78

Elements of a Good Forecast 78

Forecasting and the Supply Chain 79

Steps in the Forecasting Process 79

Approaches to Forecasting 80

Qualitative Forecasts 80

Forecasts Based on Time-Series Data 82

Associative Forecasting Techniques 98

Reading:

Lilacs 104

Forecast Accuracy 104

Reading:

High Forecasts Can be Bad News 106

Monitoring Forecast Error 107

Choosing a Forecasting Technique 111

Using Forecast Information 112

Computer Software in Forecasting 113

Operations Strategy 113

Reading:

Gazing at the Crystal Ball 114

Summary 115

Key Points 117

Key Terms 117

Solved Problems 118

Discussion and Review Questions 124

Taking Stock 125

Critical Thinking Exercises 125

Problems 125

Cases:

M&L Manufacturing 136

Highline Financial Services, Ltd. 137

Selected Bibliography and Further Readings 137

4 Product and Service Design 138

Reading:

Design as a Business Strategy 140

Introduction 140

Reading:

Dutch Boy Brushes Up Its Paints 142

Idea Generation 142

Reading:

Vlasic’s Big Pickle Slices 143

Legal and Ethical Considerations 144

Human Factors 145

Cultural Factors 145

Reading:

Green Tea Ice Cream? Kale Soup? 146

Global Product and Service Design 146

Environmental Factors: Sustainability 146

Readings:

Kraft Foods’ Recipe for Sustainability 148

China Clamps Down on Recyclables 149

Recycle City: Maria’s Market 150

Other Design Considerations 151

Readings:

Lego A/S in the Pink 152

Fast-Food Chains Adopt Mass Customization 155

Phases in Product Design and Development 162

Designing for Production 163

Service Design 165

Reading:

The Challenges of Managing Services 169

Operations Strategy 170

Summary 170

Key Points 171

Key Terms 171

Discussion and Review Questions 171

Taking Stock 172

Critical Thinking Exercises 172

Problems 172

Operations Tour:

High Acres Landfill 174

Selected Bibliography and Further Readings 174

SUPPLEMENT TO CHAPTER 4: Reliability 176

5 Strategic Capacity Planning for Products and Services 190

Introduction 191

Reading:

Excess Capacity Can Be Bad News! 192

Capacity Decisions Are Strategic 193

Defining and Measuring Capacity 194

Determinants of Effective Capacity 196

Strategy Formulation 197

Forecasting Capacity Requirements 198

Additional Challenges of Planning Service Capacity 200

Do It In-House or Outsource It? 201

Reading:

My Compliments to the Chef, Er, Buyer 202

Developing Capacity Strategies 202

Constraint Management 207

Evaluating Alternatives 207

Operations Strategy 213

Summary 213

Key Points 214

Key Terms 214

Solved Problems 214

Discussion and Review Questions 216

Taking Stock 217

Critical Thinking Exercises 217

Problems 217

Case:

Outsourcing of Hospital Services 221

Selected Bibliography and Further Readings 221

SUPPLEMENT TO CHAPTER 5: Decision

Theory 222

6 Process Selection and Facility Layout 244

Introduction 246

Process Selection 246

Operations Tour:

Morton Salt 250

Technology 252

Readings:

Foxconn Shifts Its Focus to Automation 254

Zipline Drones Save Lives in Rwanda 258

Self-Driving Vehicles 259

Process Strategy 260

Strategic Resource Organization: Facilities

Layout 260

Reading:

A Safe Hospital Room of the Future 269

Designing Product Layouts: Line Balancing 272

Reading:

BMW’s Strategy: Flexibility 280

Designing Process Layouts 281

Summary 285

Key Points 286

Key Terms 286

Solved Problems 286

Discussion and Review Questions 290

Taking Stock 291

Critical Thinking Exercises 291

Problems 291

Selected Bibliography and Further Readings 298

7 Work Design and Measurement 300

Introduction 301

Job Design 301

Quality of Work Life 305

Methods Analysis 310

Reading:

Taylor’s Techniques Help UPS 311

Motion Study 315

Work Measurement 316

Operations Strategy 327

Summary 328

Key Points 328

Key Terms 329

Solved Problems 329

Discussion and Review Questions 330

Taking Stock 331

Critical Thinking Exercises 331

Problems 331

Selected Bibliography and Further Readings 334

SUPPLEMENT TO CHAPTER 7: Learning

Curves 336

8 Location Planning and Analysis 348

The Need for Location Decisions 350

The Nature of Location Decisions 350

Global Locations 352

Reading: Coffee? 355

General Procedure for Making Location

Decisions 355

Identifying a Country, Region, Community, and

Site 356

Service and Retail Locations 363

Evaluating Location Alternatives 364

Summary 370

Key Points 370

Key Terms 371

Solved Problems 371

Discussion and Review Questions 372

Taking Stock 372

Critical Thinking Exercises 373

Problems 373

Case:

Hello, Walmart? 377

Selected Bibliography and Further Readings 377

9 Management of Quality 378

Introduction 379

The Evolution of Quality Management 380

The Foundations of Modern Quality Management: The Gurus 381

Insights on Quality Management 383

Readings:

American Fast-Food Restaurants Are Having

Success in China 386

Hyundai: Exceeding Expectations 389

Quality and Performance Excellence Awards 391

Quality Certification 392

Quality and the Supply Chain 393

Total Quality Management 394

Problem Solving and Process Improvement 398

Quality Tools 401

Operations Strategy 409

Summary 409

Key Points 409

Key Terms 410

Solved Problem 410

Discussion and Review Questions 411

Taking Stock 412

Critical Thinking Exercises 412

Problems 412

Cases:

Chick-n-Gravy Dinner Line 414

Tip Top Markets 415

Selected Bibliography and Further Readings 416

10 Quality Control 418

Introduction 419

Inspection 420

Reading:

Falsified Inspection Reports Create Major Risks

and Job Losses 424

Statistical Process Control 425

Process Capability 443

Readings:

RFID Chips Might Cut Drug Errors in

Hospitals 448

Operations Strategy 448

Summary 449

Key Points 450

Key Terms 450

Solved Problems 450

Discussion and Review Questions 454

Taking Stock 455

Critical Thinking Exercises 455

Problems 456

Cases:

Toys, Inc. 462

Tiger Tools 462

Selected Bibliography and Further Readings 463

11 Aggregate Planning and Master

Scheduling 464

Introduction 466

Reading:

Duplicate Orders Can Lead to Excess Capacity 470

Basic Strategies for Meeting Uneven Demand 473

Techniques for Aggregate Planning 476

Aggregate Planning in Services 484

Disaggregating the Aggregate Plan 485

Master Scheduling 486

The Master Scheduling Process 487

Summary 491

Key Points 491

Key Terms 492

Solved Problems 493

Discussion and Review Questions 496

Taking Stock 496

Critical Thinking Exercises 496

Problems 496

Case:

Eight Glasses a Day (EGAD) 501

Selected Bibliography and Further Readings 501

12 Inventory Management 502

Introduction 503

Reading:

$$$ 504

The Nature and Importance of Inventories 504

Requirements for Effective Inventory

Management 507

Readings:

Radio Frequency Identification (RFID) Tags 509

Catch Them Before They Steal! Reducing Inventory

Loss With an Assist From AI 510

Drones Can Help With Inventory Management in

Warehouses 513

Inventory Ordering Policies 513

How Much to Order: Economic Order Quantity

Models 514

Reorder Point Ordering 525

How Much to Order: Fixed-Order-Interval

Model 530

The Single-Period Model 533

Operations Strategy 538

Summary 538

Key Points 538

Key Terms 540

Solved Problems 540

Discussion and Review Questions 545

Taking Stock 545

Critical Thinking Exercises 545

Problems 546

Cases:

UPD Manufacturing 553

Grill Rite 554

Farmers Restaurant 554

Operations Tours:

Bruegger’s Bagel Bakery 556

PSC, INC. 557

Selected Bibliography and Further Readings 559

13 MRP and ERP 560

Introduction 561

An Overview of MRP 562

MRP Inputs 563

MRP Processing 566

MRP Outputs 573

Other Considerations 574

MRP in Services 576

Benefits and Requirements of MRP 576

MRP II 577

Capacity Requirements Planning 579

ERP 581

Readings:

The ABCS of ERP 583

11 Common ERP Mistakes and How to

Avoid Them 587

Operations Strategy 589

Summary 589

Key Points 590

Key Terms 590

Solved Problems 590

Discussion and Review Questions 599

Taking Stock 599

Critical Thinking Exercises 600

Problems 600

Cases:

Promotional Novelties 605

DMD Enterprises 606

Operations Tour:

Stickley Furniture 606

Selected Bibliography and Further Readings 609

14 JIT and Lean Operations 610

Introduction 612

Reading:

Toyota Recalls 614

Supporting Goals 615

Building Blocks 616

Reading:

General Mills Studied NASCAR Pit Crew to Reduce

Changeover Time 619

Lean Tools 632

Reading:

Gemba Walks 635

Transitioning to a Lean System 635

Lean Services 637

JIT II 638

Operations Strategy 638

Summary 639

Key Points 639

Key Terms 640

Solved Problems 640

Discussion and Review Questions 641

Taking Stock 642

Critical Thinking Exercises 642

Problems 642

Case:

Level Operations 643

Operations Tour:

Boeing 644

Selected Bibliography and Further Readings 645

SUPPLEMENT TO CHAPTER 14: Maintenance 646

15 Supply Chain Management 654

Introduction 656

Trends in Supply Chain Management 657

Readings:

Walmart Focuses on Its Supply Chain 660

Supply Chain Transparency 661

At 3M, a Long Road Became a Shorter Road 662

Global Supply Chains 663

ERP and Supply Chain Management 663

Ethics and the Supply Chain 664

Small Businesses 664

Management Responsibilities 665

Procurement 667

E-Business 670

Supplier Management 671

Inventory Management 674

Order Fulfillment 675

Logistics 676

Operations Tour:

Wegmans’ Shipping System 677

Readings:

UPS Sets the Pace for Deliveries and Safe

Driving 679

Springdale Farm 680

Active, Semi-Passive, and Passive RFID Tags 681

Creating an Effective Supply Chain 681

Readings:

Clicks or Bricks, or Both? 683

Easy Returns 684

Strategy 686

Summary 687

Key Points 687

Key Terms 687

Discussion and Review Questions 687

Taking Stock 688

Critical Thinking Exercises 688

Problems 688

Case:

Mastertag 689

Selected Bibliography and Further Readings 690

16 Scheduling 692

Scheduling Operations 694

Scheduling in Low-Volume Systems 697

Scheduling Services 715

Operations Strategy 719

Summary 719

Key Points 719

Key Terms 720

Solved Problems 720

Discussion and Review Questions 724

Taking Stock 724

Critical Thinking Exercises 724

Problems 725

Case:

Hi-Ho, Yo-Yo, Inc. 731

Selected Bibliography and Further Readings 731

17 Project Management 732

Introduction 734

Project Life Cycle 734

Behavioral Aspects of Project Management 736

Reading:

Artificial Intelligence Will Help

Project Managers 740

Work Breakdown Structure 741

Planning and Scheduling with Gantt Charts 741

PERT and CPM 742

Deterministic Time Estimates 745

A Computing Algorithm 746

Probabilistic Time Estimates 753

Determining Path Probabilities 756

Simulation 758

Budget Control 759

Time–Cost Trade-Offs: Crashing 759

Advantages of Using PERT and Potential

Sources of Error 762

Critical Chain Project Management 763

Other Topics in Project Management 763

Project Management Software 764

Operations Strategy 764

Risk Management 765

Summary 766

Key Points 767

Key Terms 767

Solved Problems 767

Discussion and Review Questions 774

Taking Stock 774

Critical Thinking Exercises 774

Problems 774

Case:

Time, Please 781

Selected Bibliography and Further Readings 782

18 Management of Waiting Lines 784

Why Is There Waiting? 786

Reading:

New Yorkers Do Not Like Waiting in Line 787

Managerial Implications of Waiting Lines 787

Goal of Waiting-Line Management 788

Characteristics of Waiting Lines 789

Measures of Waiting-Line Performance 792

Queuing Models: Infinite-Source 793

Queuing Model: Finite-Source 807

Constraint Management 813

The Psychology of Waiting 813

Reading:

David H. Maister on the Psychology of Waiting 814

Operations Strategy 814

Reading:

Managing Waiting Lines at Disney World 815

Summary 815

Key Points 816

Key Terms 816

Solved Problems 816

Discussion and Review Questions 818

Taking Stock 818

Critical Thinking Exercises 818

Problems 818

Case:

Big Bank 822

Selected Bibliography and Further Readings 822

19 Linear Programming 824

Introduction 825

Linear Programming Models 826

Graphical Linear Programming 828

The Simplex Method 840

Computer Solutions 840

Sensitivity Analysis 843

Summary 846

Key Points 846

Key Terms 846

Solved Problems 846

Discussion and Review Questions 849

Problems 849

Cases:

Son, Ltd. 853

Custom Cabinets, Inc. 854

Selected Bibliography and Further Readings 856

APPENDIX A Answers to Selected Problems 858

APPENDIX B Tables 870

APPENDIX C Working with the Normal

Distribution 876

APPENDIX D Ten Things to Remember Beyond the Final

Exam 882

Company Index 883

Subject Index 884

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