Operations and Supply Chain Management, 16th Edition PDF by Robert Jacobs and Richard B. Chase

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Operations and Supply Chain Management, Sixteenth Edition

By Robert Jacobs and Richard B. Chase

Operations and Supply Chain Management, Sixteenth edition

Contents:

Section One

STRATEGY, PRODUCTS, AND CAPACITY

1 INTRODUCTION 2

Introduction—The Elements of OSCM 3

What Is Operations and Supply Chain Management? 3

Distinguishing Operations versus Supply Chain Processes 4

Categorizing Operations and Supply Chain Processes 6

Differences between Services and Goods 7

The Goods–Services Continuum 8

Product–Service Bundling 9

Careers in OSCM 9

The Major Concepts that Define the OSCM Field 10

Current Issues in Operations and Supply Chain Management 13

Efficiency, Effectiveness, and Value 13

Concept Connections 14

Discussion Questions 15

Objective Questions 16

Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures 16

Practice Exam 19

2 STRATEGY 20

What Is Operations and Supply Chain Strategy? 21

Competitive Dimensions 22

The Notion of Trade-Offs 24

Order Winners and Order Qualifiers: The Marketing–

Operations Link 24

Strategies Are Implemented Using Operations and

Supply Chain Activities—IKEA’S Strategy 25

Assessing the Risk Associated with Operations and Supply Chain Strategies 25

Risk Management Framework 27

Productivity Measurement 28

A Sustainable Operations and Supply Chain Strategy 30

Concept Connections 31

Solved Problem 33

Discussion Questions 33

Objective Questions 34

Case: The Tao of Timbuk2 36

Practice Exam 37

3 DESIGN OF PRODUCTS AND SERVICES 39

Product Design 40

Product Development Process 41

Product Design Criteria 46

Designing for the Customer 47

Value Analysis/Value Engineering 48

Designing Products for Manufacture and Assembly 49

Designing Service Products 53

Economic Analysis of Product Development Projects 54

Build a Base-Case Financial Model 55

Sensitivity Analysis to Understand Project Trade-Offs 57

Measuring Product Development Performance 58

Concept Connections 59

Solved Problem 60

Discussion Questions 63

Objective Questions 63

Case: IKEA: Design and Pricing 66

Case: Comparison of Competing Products 68

Practice Exam 70

4 PROJECTS 71

What Is Project Management? 72

Organizing the Project Team 73

Pure Project 73

Functional Project 73

Matrix Project 74

Organizing Project Tasks 75

Managing Projects 76

Earned Value Management (EVM) 78

Network-Planning Models 81

Critical Path Method (CPM) 82

CPM with Three Activity Time Estimates 86

Time–Cost Models and Project Crashing 88

Project Management Information Systems 92

Concept Connections 93

Solved Problems 95

Discussion Questions 99

Objective Questions 99

Analytics Exercise: Product Design Project 105

Practice Exam 107

5 STRATEGIC CAPACITY MANAGEMENT 108

Capacity Management in Operations and Supply Chain Management 109

Capacity Planning Concepts 110

Economies and Diseconomies of Scale 110

Capacity Focus 111

Capacity Flexibility 111

Capacity Planning 112

Considerations in Changing Capacity 112

Determining Capacity Requirements 113

Using Decision Trees to Evaluate Capacity Alternatives 115

Planning Service Capacity 118

Capacity Planning in Services versus Manufacturing 118

Capacity Utilization and Service Quality 119

Concept Connections 120

Solved Problem 121

Discussion Questions 123

Objective Questions 123

Case: Shouldice Hospital—A Cut Above 125

Practice Exam 127

5S INVESTMENT ANALYSIS 128

Financial Analysis 128

Concepts and Definitions 128

Activity-Based Costing 131

The Effects of Taxes 132

Choosing among Investment Proposals 133

Methods of Ranking Investments 139

Sample Problems: Investment Decisions 140

Concept Connections 143

7S MANUFACTURING TECHNOLOGY 182

Technologies in Manufacturing 182

Computer-Integrated Manufacturing 185

Concept Connections 187

Discussion Questions 188

8 FACILITY LAYOUT 189

Analyzing the Four Most Common Layout Formats 191

Workcenters (Job Shops) 191

Systematic Layout Planning 195

Assembly Lines 195

Assembly-Line Design 195

Splitting Tasks 199

Flexible and U-Shaped Line Layouts 200

Mixed-Model Line Balancing 200

Cells 202

Project Layouts 202

Retail Service Layout 204

Servicescapes 204

Signs, Symbols, and Artifacts 206

Office Layout 206

Concept Connections 207

Solved Problems 208

Discussion Questions 213

Objective Questions 213

Advanced Problems 219

Analytics Exercise: Designing a Manufacturing Process 220

Practice Exam 222

9 SERVICE PROCESSES 223

The Nature of Services 224

An Operational Classification of Services 225

Designing Service Organizations 225

Structuring the Service Encounter: The Service- System Design Matrix 227

Web Platform Businesses 228

Managing Customer-Introduced Variability 230

Applying Behavioral Science to Service Encounters 230

Service Blueprinting and Fail-Safing 233

Three Contrasting Service Designs 234

The Production-Line Approach 235

The Self-Service Approach 236

The Personal-Attention Approach 236

Seven Characteristics of a Well-Designed Service System 237

Concept Connections 239

Discussion Questions 240

Objective Questions 241

Case: South Beach Pizza: An Exercise in Translating

Customer Requirements into Process Design Requirements 241

Practice Exam 243

9S HEALTH CARE 244

The Nature of Health Care Operations 244

Classification of Hospitals 245

Hospital Layout and Care Chains 246

Capacity Planning 247

Workforce Scheduling 248

Quality Management and Process Improvement 248

Health Care Supply Chains 249

Inventory Management 251

Performance Measures 251

Performance Dashboards 252

Trends in Health Care 252

Concept Connections 254

Discussion Questions 254

Objective Questions 255

Case: Managing Patient Wait Times at a Family Clinic 255

Practice Exam 257

10 WAITING LINE ANALYSIS AND SIMULATION 258

The Waiting Line Problem 259

The Practical View of Waiting Lines 259

The Queuing System 260

Waiting Line Models 267

Approximating Customer Waiting Time 273

Simulating Waiting Lines 276

Example: A Two-Stage Assembly Line 276

Spreadsheet Simulation 279

Simulation Programs and Languages 282

Concept Connections 283

Solved Problems 285

Discussion Questions 288

Objective Questions 288

Case: Community Hospital Evening Operating Room 293

Analytics Exercise: Processing Customer Orders 293

Practice Exam 296

11 PROCESS DESIGN AND ANALYSIS 301

Process Analysis 302

Example—Analyzing a Las Vegas Slot Machine 302

Process Flowcharting 304

Understanding Processes 305

Buffering, Blocking, and Starving 305

Make-to-Stock vs. Make-to-Order 306

Measuring Process Performance 309

Production Process Mapping and Little’s Law 311

Job Design Decisions 313

Behavioral Considerations in Job Design 314

Work Measurement and Standards 314

Process Analysis Examples 315

A Bread-Making Operation 315

A Restaurant Operation 316

Planning a Transit Bus Operation 318

Process Flow Time Reduction 320

Concept Connections 322

Solved Problems 324

Discussion Questions 326

Objective Questions 327

Case: Runners Edge–Call Center Process Analysis 331

Practice Exam 333

11S OPERATIONS CONSULTING 334

What is Operations Consulting? 334

The Management Consulting Industry 334

Economics of Consulting Firms 335

When Operations Consulting is Needed 336

The Operations Consulting Process 337

Operations Consulting Tool Kit 338

Problem Definition Tools 338

Data Gathering 340

Data Analysis and Solution Development 341

Cost Impact and Payoff Analysis 341

Implementation 342

Concept Connections 342

Discussion Questions 343

Objective Questions 343

Practice Exam 343

12 SIX SIGMA QUALITY 344

Total Quality Management 345

Quality Specifications and Quality Costs 346

Developing Quality Specifications 346

Cost of Quality 347

Six Sigma Quality 349

Six Sigma Methodology 350

Analytical Tools for Six Sigma 351

Six Sigma Roles and Responsibilities 354

The Shingo System: Fail-Safe Design 355

ISO 9000 and ISO 14000 356

External Benchmarking for Quality Improvement 357

Concept Connections 358

Discussion Questions 359

Objective Questions 360

Case: Tesla’s Quality Challenge 361

Practice Exam 362

13 STATISTICAL QUALITY CONTROL 363

Statistical Quality Control 364

Understanding and Measuring Process Variation 365

Measuring Process Capability 367

Statistical Process Control Procedures 371

Process Control with Attribute Measurements: Using p-Charts 372

Process Control with Attribute Measurements: Using c-Charts 374

Process Control with Variable Measurements: Using X–- and R-Charts 375

How to Construct X–- and R-Charts 376

Acceptance Sampling 379

Design of a Single Sampling Plan for Attributes 379

Operating Characteristic Curves 380

Concept Connections 382

Solved Problems 383

Discussion Questions 386

Objective Questions 386

Analytics Exercise: Hot Shot Plastics Company 391

Analytics Exercise: Quality Management—Toyota 392

Practice Exam 393

Section Three

SUPPLY CHAIN PROCESSES

14 LEAN SUPPLY CHAINS 396

Lean Production 397

The Toyota Production System 398

Lean Supply Chains 399

Value Stream Mapping 401

Lean Supply Chain Design Principles 403

Lean Concepts 404

Lean Production Schedules 405

Lean Supply Chains 409

Lean Services 410

Concept Connections 412

Solved Problems 414

Discussion Questions 418

Objective Questions 418

Case: Quality Parts Company 419

Case: Value Stream Mapping 421

Case: Pro Fishing Boats—A Value Stream Mapping Exercise 422

Practice Exam 423

15 LOGISTICS, DISTRIBUTION, AND TRANSPORTATION 424

Logistics 425

Decisions Related to Logistics 426

Transportation Modes 426

Warehouse Design 427

Locating Logistics Facilities 427

Plant Location Methods 429

Centroid Method 433

Locating Service Facilities 434

Concept Connections 437

Solved Problems 438

Discussion Questions 442

Objective Questions 442

Analytics Exercise: Distribution Center Location 445

Practice Exam 447

16 GLOBAL SOURCING AND PROCUREMENT 448

Strategic Sourcing 449

The Bullwhip Effect 450

Supply Chain Uncertainty Framework 451

Outsourcing 454

Logistics Outsourcing 454

Framework for Supplier Relationships 455

Green Sourcing 457

Total Cost of Ownership 460

Measuring Sourcing Performance 462

Concept Connections 464

Discussion Questions 465

Objective Questions 466

Analytics Exercise: Global Sourcing Decisions—

Grainger: Reengineering the China/U.S. Supply Chain 468

Practice Exam 470

Section Four

SUPPLY AND DEMAND PLANNING AND CONTROL

17 THE INTERNET OF THINGS AND ERP 472

Intelligent Devices Connected through the Internet 473

What is ERP? 473

Consistent Numbers 474

Software Imperatives 474

Routine Decision-Making 475

How ERP Connects the Functional Units 475

Finance 476

Manufacturing and Logistics 476

Sales and Marketing 477

Human Resources 477

Customized Software 477

Data Integration 477

How Supply Chain Planning and Control Fits Within ERP 479

Simplified Example 479

SAP Supply Chain Management 479

SAP Supply Chain Execution 480

SAP Supply Chain Collaboration 480

SAP Supply Chain Coordination 481

Performance Metrics to Evaluate Integrated System Effectiveness 481

The “Functional Silo” Approach 482

Concept Connections 483

Discussion Questions 484

Objective Questions 484

Practice Exam 484

18 FORECASTING 485

Forecasting in Operations and Supply Chain Management 486

Quantitative Forecasting Models 487

Components of Demand 487

Time Series Analysis 488

Forecast Errors 501

Causal Relationship Forecasting 504

Qualitative Techniques in Forecasting 506

Market Research 507

Panel Consensus 507

Historical Analogy 507

Delphi Method 507

Web-Based Forecasting: Collaborative Planning, Forecasting, and Replenishment (CPFR) 508

Concept Connections 509

Solved Problems 511

Discussion Questions 515

Objective Questions 516

Analytics Exercise: Forecasting Supply Chain Demand— Starbucks Corporation (LO18-2) 524

Practice Exam 525

19 SALES AND OPERATIONS PLANNING 526

What Is Sales and Operations Planning? 527

An Overview of Sales and Operations Planning Activities 527

The Aggregate Operations Plan 529

Aggregate Planning Techniques 533

A Cut-and-Try Example: The JC Company 533

Aggregate Planning Applied to Services: Tucson Parks and Recreation Department 538

Yield Management 540

Operating Yield Management Systems 541

Concept Connections 542

Solved Problem 543

Discussion Questions 546

Objective Questions 546

Analytics Exercise: Developing an Aggregate Plan— Bradford Manufacturing 549

Practice Exam 550

19S LINEAR PROGRAMMING USING THE EXCEL SOLVER 552

The Linear Programming Model 553

Linear Programming Using Microsoft Excel 554

Concept Connections 557

Solved Problem 557

Objective Questions 564

20 INVENTORY MANAGEMENT 566

Understanding Inventory Management 567

Purposes of Inventory 569

Inventory Costs 570

Independent versus Dependent Demand 570

Inventory Control Systems 571

A Single-Period Inventory Model 572

Multiperiod Inventory Systems 573

Fixed–Order Quantity Models 576

Fixed–Time Period Models 582

Inventory Turn Calculation 584

Price-Break Model 585

Inventory Planning and Accuracy 588

ABC Classification 588

Inventory Accuracy and Cycle Counting 589

Concept Connections 591

Solved Problems 593

Discussion Questions 596

Objective Questions 596

Analytics Exercise: Inventory Management at Big10Sweaters.com 605

Practice Exam 607

21 MATERIAL REQUIREMENTS PLANNING 609

Understanding Material Requirements Planning 610

Where MRP Can Be Used 610

Master Production Scheduling 610

Material Requirements Planning System Structure 613

Demand for Products 613

Bill-of-Materials 614

Inventory Records 616

MRP Computer Program 617

An Example Using MRP 618

Forecasting Demand 618

Developing a Master Production Schedule 618

Bill-of-Materials (Product Structure) 619

Inventory Records 619

Performing the MRP Calculations 619

Lot Sizing in MRP Systems 622

Lot-for-Lot 623

Economic Order Quantity 623

Least Total Cost 624

Least Unit Cost 625

Choosing the Best Lot Size 625

Concept Connections 626

Solved Problems 628

Discussion Questions 633

Objective Questions 633

Analytics Exercise: An MRP Explosion—Brunswick Motors 637

Practice Exam 639

22 WORKCENTER SCHEDULING 640

Workcenter Scheduling 641

The Nature and Importance of Workcenters 641

Typical Scheduling and Control Functions 643

Objectives of Workcenter Scheduling 644

Job Sequencing 644

Priority Rules and Techniques 645

Scheduling n Jobs on One Machine 645

Scheduling n Jobs on Two Machines 648

Scheduling a Set Number of Jobs on the Same Number of Machines 649

Scheduling n Jobs on m Machines 651

Shop-Floor Control 651

Gantt Charts 651

Tools of Shop-Floor Control 652

Principles of Workcenter Scheduling 654

Personnel Scheduling in Services 655

Scheduling Daily Work Times 655

Scheduling Hourly Work Times 656

Concept Connections 657

Solved Problems 659

Discussion Questions 664

Objective Questions 664

Case: Keep Patients Waiting? Not in My Office 669

Practice Exam 671

22S THEORY OF CONSTRAINTS 672

Eli Goldratt’s Theory of Constraints 672

The Goal of the Firm 673

Performance Measurements 673

Unbalanced Capacity 675

Bottlenecks, Capacity-Constrained Resources, and Synchronous Manufacturing 676

Basic Manufacturing Building Blocks 677

Methods for Synchronous Control 677

Comparing Synchronous Manufacturing (Toc) to Traditional Approaches 686

MRP and JIT 686

Relationship with Other Functional Areas 687

Theory of Constraints—Problems About What to Produce 688

Concept Connections 695

Solved Problem 696

Discussion Questions 698

Objective Questions 698

Practice Exam 702

APPENDICES

A Interest Tables 703

B Negative Exponential Distribution: Values of E−X 707

C Areas of the Cumulative Standard Normal Distribution 708

D Uniformly Distributed Random Digits 709

E Answers to Selected Objective Questions 710

INDEX 712

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