Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England. and Associated Companies throughout the world

Transcription

1

2 Editorial Director: Sally Yagan Editor in Chief: Donna Battista Senior Acquisitions Editor: Chuck Synovec Senior Acquisitions Editor, Global Edition: Steven Jackson Editorial Project Manager: Mary Kate Murray Editorial Assistant: Ashlee Bradbury Director of Marketing: Maggie Moylan Executive Marketing Manager: Anne Fahlgren Marketing Manager, International: Dean Erasmus Senior Managing Editor: Judy Leale Production Project Manager: Mary Kate Murray Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Peterson Creative Director: Blair Brown Senior Art Director, Interior: Kenny Beck Art Director, Cover: Steve Frim Text Designer: Tamara Newnam Cover Designer: Jodi Notowitz Manager, Visual Research: Karen Sanatar Photo Researcher: PreMediaGlobal Manager, Rights and Permissions: Hessa Albader Cover Art: DigitalGenetics Fotolia.com Associate Media Project Manager: Sarah Petersen Media Project Manager: John Cassar Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: Pearson Education Limited 2013 The right of Lee Krajewski, Larry P. Ritzman and Manoj K. Malhotra, to be identified as authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act Authorised adaptation from the United States edition, entitled Operations Management, Processes and Supply Chains, ISBN by Lee Krajewski, Larry P. Ritzman and Manoj K. Malhotra, published by Pearson Education All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6 10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided as is without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services.the documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified. ISBN-10: X ISBN-13: British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Typeset in 9/11 Utopia by PreMediaGlobal USA Inc. Printed and bound by Courier/Kendallville in United States of America The publisher s policy is to use paper manufactured from sustainable forests.

3 Operations Management:Processes and Supply Chains: Global Edition Cover Contents Preface PART 1 Competing with Operations 1 USING OPERATIONS TO COMPETE Scholastic and Harry Potter Operations and Supply Chain Management across the Organization Historical Evolution of Operations and Supply Chain Management A Process View How Processes Work Nested Processes Service and Manufacturing Processes The Supply Chain View Core Processes Support Processes Operations Strategy Corporate Strategy Market Analysis Competitive Priorities and Capabilities Order Winners and Qualifiers Using Competitive Priorities: An Airline Example Operations Strategy as a Pattern of Decisions Trends in Operations Management Productivity Improvement Global Competition Managerial Practice 1.1 Japanese Earthquake and its Supply Chain Impact Ethical, Workforce Diversity, and Environmental Issues Operations Management as a Set of Decisions Computerized Decision-Making Tools Addressing the Challenges in Operations Management Part 1: Competing with Operations Part 2: Designing and Managing Processes Part 3: Designing and Managing Supply Chains Adding Value with Process Innovation in Supply Chains Managerial Practice 1.2 ZaraFast Fashion Operational Innovation Key Equation Advanced Active Model Exercise

4 Video Case: Operations as a Competitive Weapon at Starwood Case: Theorganicgrocer.com SUPPLEMENT A: Decision Making Models Break-Even Analysis Evaluating Services or Products Evaluating Processes Preference Matrix Decision Theory Decision Making under Certainty Decision Making under Uncertainty Decision Making under Risk Decision Trees 2 MANAGING EFFECTIVE PROJECTS XBOX Project Management across the Organization Defining and Organizing Projects Defining the Scope and Objectives of a Project Selecting the Project Manager and Team Recognizing Organizational Structure Planning Projects Defining the Work Breakdown Structure Diagramming the Network Developing the Schedule Analyzing CostTime Trade-Offs Assessing Risks Managerial Practice 2.1 Deadline 2004 Analysis Monitoring and Controlling Projects Monitoring Project Status Monitoring Project Resources Controlling Projects

5 Advanced Active Model Exercise Video Case: Project Management at the Phoenician Case: The Pert Mustang PART 2 Designing and Managing Processes 3 DEVELOPING A PROCESS STRATEGY ebay Process Strategy across the Organization Supply Chains Have Processes Processes Are Not Just in Operations Process Strategy Decisions Process Structure in Services Nature of Service Processes: Customer Contact Customer-Contact Matrix Service Process Structuring Process Structure in Manufacturing Product-Process Matrix Manufacturing Process Structuring Production and Inventory Strategies Layout Gather Information Develop a Block Plan Applying the Weighted-Distance Method Design a Detailed Layout Customer Involvement Possible Disadvantages Possible Advantages Resource Flexibility Workforce Equipment Capital Intensity Automating Manufacturing Processes Automating Service Processes Economies of Scope Strategic Fit Managerial Practice 3.1 DP World Steps Up International Shipping Decision Patterns for Service Processes Decision Patterns for Manufacturing Processes Gaining Focus Strategies for Change Process Reengineering Process Improvement

6 Active Model Exercise Case: Sims Metal Management 4 ANALYZING PROCESSES McDonalds Corporation Process Analysis across the Organization A Systematic Approach Step 1: Identify Opportunities Step 2: Define the Scope Step 3: Document the Process Step 4: Evaluate Performance Step 5: Redesign the Process Step 6: Implement Changes Documenting the Process Flowcharts Swim Lane Flowcharts Service Blueprints Work Measurement Techniques Evaluating Performance Data Analysis Tools Redesigning the Process Generating Ideas: Questioning and Brainstorming Benchmarking Managerial Practice 4.1 Baptist Memorial Hospital Managing and Implementing Processes Advanced Active Model Exercise Video Case: Process Analysis at Starwood Case: Josés Authentic Mexican Restaurant 5 MANAGING QUALITY Verizon Wireless Quality and Performance across the Organization Costs of Quality Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs Ethics and Quality Total Quality Management

7 Customer Satisfaction Employee Involvement Managerial Practice 5.1 Quality and Performance at Omega Continuous Improvement Six Sigma Six Sigma Improvement Model Acceptance Sampling Statistical Process Control Variation of Outputs Control Charts Statistical Process Control Methods Control Charts for Variables Control Charts for Attributes Process Capability Defining Process Capability Using Continuous Improvement to Determine the Capability of a Process Quality Engineering International Quality Documentation Standards The ISO 9001:2008 Documentation Standards ISO 14000:2004 Environmental Management System ISO 26000:2010 Social Responsibility Guidelines Benefits of ISO Certification Baldrige Performance Excellence Program Advanced Active Model Exercise Video Case: Process Performance and Quality at Starwood Hotels & Resorts Experiential Learning: Statistical Process Control with a Coin Catapult 6 PLANNING CAPACITY Sharp Corporation Planning Capacity across the Organization Planning Long-Term Capacity Measures of Capacity and Utilization Economies of Scale Diseconomies of Scale Capacity Timing and Sizing Strategies Sizing Capacity Cushions Timing and Sizing Expansion Managerial Practice 6.1 Expansionist Capacity Strategy in the Ethanol Industry Linking Capacity and Other Decisions A Systematic Approach to Long-Term Capacity Decisions Step 1: Estimate Capacity Requirements Step 2: Identify Gaps

8 Step 3: Develop Alternatives Step 4: Evaluate the Alternatives Tools for Capacity Planning Waiting-Line Models Simulation Decision Trees Advanced Video Case: Gate Turnaround at Southwest Airlines Case: Fitness Plus, Part A SUPPLEMENT B: Waiting Line Models Why Waiting Lines Form Uses of Waiting-Line Theory Structure of Waiting-Line Customer Population The Service System Priority Rule Probability Distributions Arrival Distribution Service Time Distribution Using Waiting-Line Models to Analyze Operations Single-Server Model Multiple-Server Model Littles Law Finite-Source Model Waiting Lines and Simulation Decision Areas for Management Solved Problem Advanced 7 MANAGING PROCESS CONSTRAINTS The Radcliffe Infirmary Managing Constraints across the Organization

9 The Theory of Constraints Key Principles of the TOC Identification and Management of Bottlenecks Managing Bottlenecks in Service Processes Managing Bottlenecks in Manufacturing Processes Managerial Practice 7.1 The Drum-Buffer-Rope System at a U.S. Marine Corps Maintenance Center Managing Constraints in a Line Process Line Balancing Managerial Considerations Advanced Experiential Learning: Min-Yo Garment Company Video Case: Constraint Management at Southwest Airlines 8 DESIGNING LEAN SYSTEMS Panasonic Corporation Lean Systems across the Organization Continuous Improvement Using a Lean Systems Approach Supply Chain Considerations in Lean Systems Close Supplier Ties Small Lot Sizes Process Considerations in Lean Systems Pull Method of Work Flow Quality at the Source Uniform Workstation Loads Standardized Components and Work Methods Flexible Workforce Automation Five S Practices Total Preventive Maintenance (TPM) Toyota Production System House of Toyota Designing Lean System Layouts One Worker, Multiple Machines Group Technology Value Stream Mapping The Kanban System General Operating Rules Determining the Number of Containers Other Kanban Signals Operational Benefits and Implementation Issues Organizational Considerations Managerial Practice 8.1 Lean Systems at the University of Pittsburgh Medical

10 Center Shadyside Process Considerations Inventory and Scheduling Key Equation Advanced Video Case: Lean Systems at Autoliv Case: Duraweld Ltd. PART 3 Designing and Managing Supply Chains 9 MANAGING INVENTORIES Inventory Management at Walmart Inventory Management across the Organization Inventory and Supply Chains Pressures for Small Inventories Pressures for Large Inventories Types of Inventory Inventory Reduction Tactics ABC Analysis Economic Order Quantity Calculating the EOQ Managerial Insights from the EOQ Inventory Control Systems Continuous Review System Periodic Review System Managerial Practice 9.1 The Supply Chain Implications of Periodic Review Inventory Systems at Celanese Comparative Advantages of the Q and P Systems Hybrid Systems Advanced Active Model Exercise Experiential Learning: Swift Electronic Supply, Inc. Case: Parts Emporium SUPPLEMENT C: Special Inventory Models Noninstantaneous Replenishment

11 Quantity Discounts One-Period Decisions Key Term 10 DESIGNING EFFECTIVE SUPPLY CHAINS Nikon Supply Chain Design across the Organization Supply Chains for Services and Manufacturing Services Manufacturing Measures of Supply Chain Performance Inventory Measures Financial Measures Inventory Placement Mass Customization Competitive Advantages Supply Chain Design for Mass Customization Outsourcing Processes Vertical Integration Outsourcing Managerial Practice 10.1 Building a Supply Chain for the Dreamliner Strategic Implications Efficient Supply Chains Responsive Supply Chains The Design of Efficient and Responsive Supply Chains Solved Problem Advanced Experiential Learning: Sonic Distributors Case: Brunswick Distribution, Inc. 11 LOCATING FACILITIES Bavarian Motor Works (BMW) Location Decisions across the Organization Factors Affecting Location Decisions Dominant Factors in Manufacturing Dominant Factors in Services

12 Geographical Information Systems and Location Decisions Managerial Practice 11.1 How Fast-Food Chains Use GIS to Select Their Sites Locating a Single Facility Comparing Several Sites Applying the LoadDistance Method Using Break-Even Analysis Locating a Facility Within a Supply Chain Network Managerial Practice 11.2 General Electrics Expansion in India The GIS Method for Locating Multiple Facilities The Transportation Method Advanced Active Model Exercise 12 INTEGRATING THE SUPPLY CHAIN Eastman Kodak Supply Chain Integration across the Organization Supply Chain Dynamics External Causes Internal Causes Implications for Supply Chain Design Integrated Supply Chains New Service or Product Development Process Design Analysis Development Full Launch Supplier Relationship Process Sourcing Design Collaboration Negotiation Buying Information Exchange The Order Fulfillment Process Customer Demand Planning Supply Planning Production Logistics Managerial Practice 12.1 Order Fulfillment aboard the Coral Princess The Customer Relationship Process Marketing Order Placement Customer Service Levers for Improved Supply Chain Performance

13 The Levers Performance Measures Advanced Video Case: Sourcing Strategy at Starwood Case: Hassia Waters 13 MANAGING SUSTAINABLE SUPPLY CHAINS FedEx Sustainability across the Organization Supply Chains and Environmental Responsibility Reverse Logistics Managerial Practice 13.1 Recycling at Hewlett-Packard and Walmart Energy Efficiency Supply Chains, Social Responsibility, and Humanitarian Logistics Disaster Relief Supply Chains Supply Chain Ethics Managing Sustainable Supply Chains Video Case: Supply Chain Sustainability at Clif Bar & Company 14 FORECASTING DEMAND Motorola Mobility Forecasting across the Organization Demand Patterns Key Decisions on Making Forecasts Deciding What to Forecast Choosing the Type of Forecasting Technique Forecast Error Computer Support Judgment Methods Causal Methods: Linear Regression Time-Series Methods Naïve Forecast Estimating the Average

14 Trend Projection with Regression Seasonal Patterns Choosing a Quantitative Forecasting Method Criteria for Selecting Time-Series Methods Tracking Signals Using Multiple Techniques Managerial Practice 14.1 Combination Forecasts and the Forecasting Process Putting It All Together: Forecasting as a Process A Typical Forecasting Process Adding Collaboration to the System Forecasting as a Nested Process Advanced Video Case: Forecasting and Supply Chain Management at Deckers Outdoor Corporation Case: Yankee Fork and Hoe Company Experiential Learning 14.1 Forecasting with Holdout Sample Experiential Learning 14.2 Forecasting a Vital Energy Statistic 15 PLANNING AND SCHEDULING OPERATIONS Air New Zealand Operations Planning and Scheduling across the Organization Stages in Operations Planning and Scheduling Aggregation The Relationship of Operations Plans and Schedules to Other Plans Managing Demand Demand Options Managerial Practice 15.1 Singapore Airlines Group Sales and Operations Plans Information Inputs Supply Options Planning Strategies Constraints and Costs Sales and Operations Planning as a Process Using Spreadsheets Scheduling Gantt Charts Scheduling Employees Sequencing Jobs at a Workstation Software Support

15 Active Model Exercise Video Case: Sales and Operations Planning at Starwood Case: Memorial Hospital 16 PLANNING SUFFICIENT RESOURCES Dow Corning Resource Planning across the Organization Enterprise Resource Planning How ERP Systems Are Designed Material Requirements Planning Dependent Demand Bill of Materials Master Production Scheduling Inventory Record Planning Factors Outputs from MRP Managerial Practice 16.1 Material Requirements Planning at Winnebago Industries MRP, Core Processes, and Supply Chain Linkages MRP and the Environment Resource Planning for Service Providers Dependent Demand for Services Bill of Resources Advanced Active Model Exercise Case: Flashy Flashers, Inc. SUPPLEMENT D: Linear Programming Models Basic Concepts Formulating a Problem Graphic Analysis Plot the Constraints Identify the Feasible Region Plot an Objective Function Line

16 Find the Visual Solution Find the Algebraic Solution Slack and Surplus Variables Sensitivity Analysis Computer Solution Simplex Method Computer Output The Transportation Method Transportation Method for Production Planning Applications Case: R.U. Reddie for Location Appendix 1 Normal Distribution Appendix 2 Table of Random Numbers Glossary A B C D E F G H I J K L M N O P Q R S

17 T U V W X Name Index A B C D E F G H J K L M N O P Q R S T U V W X Y Z Subject Index A B C D E

18 F G H I J K L M N O P Q R S T U V W X Y Z