كتاب Operations Management - Sustainability and Supply Chain Management
منتدى هندسة الإنتاج والتصميم الميكانيكى
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منتدى هندسة الإنتاج والتصميم الميكانيكى
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 كتاب Operations Management - Sustainability and Supply Chain Management

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تاريخ التسجيل : 01/07/2009
الدولة : مصر
العمل : مدير منتدى هندسة الإنتاج والتصميم الميكانيكى

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مُساهمةموضوع: كتاب Operations Management - Sustainability and Supply Chain Management    كتاب Operations Management - Sustainability and Supply Chain Management  Emptyالأحد 08 أغسطس 2021, 3:05 am

أخواني في الله
أحضرت لكم كتاب
Operations Management - Sustainability and Supply Chain Management
Jay Heizer
Jesse H. Jones Professor of Business Administration Texas Lutheran University
Barry Render
Charles Harwood Professor of Operations Management Graduate School of Business
Rollins College
Chuck Munson
Professor of Operations Management Carson College of Business Washington State University

كتاب Operations Management - Sustainability and Supply Chain Management  O_m_s_12
و المحتوى كما يلي :


Table of Contents
About the Authors vi
Preface xxiii
Chapter 1 Operations and Productivity 1
GLOBAL COMPANY PROFILE: HARD ROCK CAFE 2
What Is Operations Management? 4
Organizing to Produce Goods and Services 4
The Supply Chain 6
Why Study OM? 6
What Operations Managers Do 7
The Heritage of Operations Management 8
Operations for Goods and Services 11
Growth of Services 11
Service Pay 12
The Productivity Challenge 13
Productivity Measurement 14
Productivity Variables 15
Productivity and the Service Sector 17
Current Challenges in Operations Management 18
Ethics, Social Responsibility, and Sustainability 19
Summary 20
Key Terms 20
Ethical Dilemma 20
Discussion Questions 20
Using Software for Productivity Analysis 21
Solved Problems 21
Problems 22
CASE STUDIES 24
Uber Technologies, Inc. 24
Frito-Lay: Operations Management in Manufacturing
Video Case 25
Hard Rock Cafe: Operations Management in Services
Video Case 25
Endnotes 26
Rapid Review 27
Self Test 28
Chapter 2 Operations Strategy in a Global
Environment 29
GLOBAL COMPANY PROFILE: BOEING 30
A Global View of Operations and Supply
Chains 32
Cultural and Ethical Issues 35
Developing Missions and Strategies 35
Mission 36
Strategy 36
Achieving Competitive Advantage Through
Operations 36
Competing on Differentiation 37
Competing on Cost 38
Competing on Response 39
Issues in Operations Strategy 40
Strategy Development and Implementation 41
Key Success Factors and Core Competencies 41
Integrating OM with Other Activities 43
Building and Staffing the Organization 43
Implementing the 10 Strategic OM Decisions 44
Strategic Planning, Core Competencies, and
Outsourcing 44
The Theory of Comparative Advantage 46
Risks of Outsourcing 46
Rating Outsource Providers 47
Global Operations Strategy Options 49
Summary 50
Key Terms 50
Ethical Dilemma 51
Discussion Questions 51
Using Software to Solve Outsourcing
Problems 51
Solved Problems 52
Problems 53
CASE STUDIES 55
Rapid-Lube 55
Strategy at Regal Marine Video Case 55
Hard Rock Cafe’s Global Strategy Video Case 55
Outsourcing Offshore at Darden Video Case 56
Endnotes 56
Rapid Review 57
Self Test 58
Chapter 3 Project Management 59
GLOBAL COMPANY PROFILE: BECHTEL GROUP 60
The Importance of Project Management 62
PART ONE Introduction to Operations Management 1
xixii TABLE OF CONTENTS
Project Planning 62
The Project Manager 63
Work Breakdown Structure 64
Project Scheduling 65
Project Controlling 66
Project Management Techniques: PERT and CPM 67
The Framework of PERT and CPM 67
Network Diagrams and Approaches 68
Activity-on-Node Example 69
Activity-on-Arrow Example 71
Determining the Project Schedule 71
Forward Pass 72
Backward Pass 74
Calculating Slack Time and Identifying the Critical
Path(s) 75
Variability in Activity Times 77
Three Time Estimates in PERT 77
Probability of Project Completion 79
Cost-Time Trade-Offs and Project Crashing 82
A Critique of PERT and CPM 85
Using Microsoft Project to Manage Projects 86
Summary 88
Key Terms 88
Ethical Dilemma 89
Discussion Questions 89
Using Software to Solve Project Management
Problems 89
Solved Problems 90
Problems 93
CASE STUDIES 98
Southwestern University: (A) 98
Project Management at Arnold Palmer Hospital
Video Case 99
Managing Hard Rock’s Rockfest Video Case 100
Endnotes 102
Rapid Review 103
Self Test 104
Chapter 4 Forecasting 105
GLOBAL COMPANY PROFILE: WALT DISNEY PARKS &
RESORTS 106
What is Forecasting? 108
Forecasting Time Horizons 108
Types of Forecasts 109
The Strategic Importance of Forecasting 109
Supply-Chain Management 109
Human Resources 110
Capacity 110
Seven Steps in the Forecasting System 110
Forecasting Approaches 111
Overview of Qualitative Method 111
Overview of Quantitative Methods 112
Time-Series Forecasting 112
Decomposition of a Time Series 112
Naive Approach 113
Moving Averages 114
Exponential Smoothing 116
Measuring Forecast Error 117
Exponential Smoothing with Trend Adjustment 120
Trend Projections 124
Seasonal Variations in Data 126
Cyclical Variations in Data 131
Associative Forecasting Methods: Regression
and Correlation Analysis 131
Using Regression Analysis for Forecasting 131
Standard Error of the Estimate 133
Correlation Coefficients for Regression Lines 134
Multiple-Regression Analysis 136
Monitoring and Controlling Forecasts 138
Adaptive Smoothing 139
Focus Forecasting 139
Forecasting in the Service Sector 140
Summary 141
Key Terms 141
Ethical Dilemma 141
Discussion Questions 142
Using Software in Forecasting 142
Solved Problems 144
Problems 146
CASE STUDIES 153
Southwestern University: (B) 153
Forecasting Ticket Revenue for Orlando Magic
Basketball Games Video Case 154
Forecasting at Hard Rock Cafe Video Case 155
Endnotes 156
Rapid Review 157
Self Test 158
PART TWO Designing Operations 159
Chapter 5 Design of Goods and Services 159
GLOBAL COMPANY PROFILE: REGAL MARINE 160
Goods and Services Selection 162
Product Strategy Options Support Competitive
Advantage 163
Product Life Cycles 164
Life Cycle and Strategy 164TABLE OF CONTENTS xiii
Product-by-Value Analysis 165
Generating New Products 165
Product Development 166
Product Development System 166
Quality Function Deployment (QFD) 166
Organizing for Product Development 169
Manufacturability and Value Engineering 170
Issues for Product Design 171
Robust Design 171
Modular Design 171
Computer-Aided Design (CAD) and Computer-Aided
Manufacturing (CAM) 171
Virtual Reality Technology 172
Value Analysis 173
Sustainability and Life Cycle Assessment (LCA) 173
Product Development Continuum 173
Purchasing Technology by Acquiring a Firm 174
Joint Ventures 174
Alliances 175
Defining a Product 175
Make-or-Buy Decisions 176
Group Technology 177
Documents for Production 178
Product Life-Cycle Management (PLM) 178
Service Design 179
Process–Chain–Network (PCN) Analysis 179
Adding Service Efficiency 181
Documents for Services 181
Application of Decision Trees to Product
Design 182
Transition to Production 184
Summary 184
Key Terms 185
Ethical Dilemma 185
Discussion Questions 185
Solved Problem 186
Problems 186
CASE STUDIES 189
De Mar’s Product Strategy 189
Product Design at Regal Marine Video Case 189
Endnotes 190
Rapid Review 191
Self Test 192
Supplement 5 Sustainability in the Supply
Chain 193
Corporate Social Responsibility 194
Sustainability 195
Systems View 195
Commons 195
Triple Bottom Line 195
Design and Production for Sustainability 198
Product Design 198
Production Process 200
Logistics 200
End-of-Life Phase 203
Regulations and Industry Standards 203
International Environmental Policies and
Standards 204
Summary 205
Key Terms 205
Discussion Questions 205
Solved Problems 206
Problems 207
CASE STUDIES 208
Building Sustainability at the Orlando Magic’s
Amway Center Video Case 208
Green Manufacturing and Sustainability at Frito-Lay
Video Case 209
Endnotes 210
Rapid Review 211
Self Test 212
Chapter 6 Managing Quality 213
GLOBAL COMPANY PROFILE: ARNOLD PALMER
HOSPITAL 214
Quality and Strategy 216
Defining Quality 217
Implications of Quality 217
Malcolm Baldrige National Quality Award 218
ISO 9000 International Quality Standards 218
Cost of Quality (COQ) 218
Ethics and Quality Management 219
Total Quality Management 219
Continuous Improvement 220
Six Sigma 221
Employee Empowerment 222
Benchmarking 222
Just-in-Time (JIT) 224
Taguchi Concepts 224
Knowledge of TQM Tools 225
Tools of TQM 226
Check Sheets 226
Scatter Diagrams 227
Cause-and-Effect Diagrams 227
Pareto Charts 227
Flowcharts 228
Histograms 229
Statistical Process Control (SPC) 229
The Role of Inspection 230
When and Where to Inspect 230
Source Inspection 231xiv TABLE OF CONTENTS
Service Industry Inspection 232
Inspection of Attributes versus Variables 233
TQM in Services 233
Summary 235
Key Terms 235
Ethical Dilemma 235
Discussion Questions 236
Solved Problems 236
Problems 237
CASE STUDIES 239
Southwestern University: (C) 239
The Culture of Quality at Arnold Palmer Hospital
Video Case 240
Quality Counts at Alaska Airlines Video Case 240
Quality at the Ritz-Carlton Hotel Company
Video Case 242
Endnotes 242
Rapid Review 243
Self Test 244
Supplement 6 Statistical Process Control 245
Statistical Process Control (SPC) 246
Control Charts for Variables 248
The Central Limit Theorem 248
Setting Mean Chart Limits (x-Charts) 250
Setting Range Chart Limits (R-Charts) 253
Using Mean and Range Charts 254
Control Charts for Attributes 256
Managerial Issues and Control Charts 259
Process Capability 260
Process Capability Ratio (C
p) 260
Process Capability Index (Cpk) 261
Acceptance Sampling 262
Operating Characteristic Curve 263
Average Outgoing Quality 264
Summary 265
Key Terms 265
Discussion Questions 265
Using Software for SPC 266
Solved Problems 267
Problems 269
CASE STUDIES 274
Bayfield Mud Company 274
Frito-Lay’s Quality-Controlled Potato Chips
Video Case 275
Farm to Fork: Quality at Darden Restaurants
Video Case 276
Endnotes 276
Rapid Review 277
Self Test 278
Chapter 7 Process Strategy 279
GLOBAL COMPANY PROFILE: HARLEY-DAVIDSON 280
Four Process Strategies 282
Process Focus 282
Repetitive Focus 283
Product Focus 284
Mass Customization Focus 284
Process Comparison 286
Selection of Equipment 288
Process Analysis and Design 288
Flowchart 289
Time-Function Mapping 289
Process Charts 289
Value-Stream Mapping 290
Service Blueprinting 292
Special Considerations for Service Process
Design 293
Production Technology 294
Machine Technology 294
Automatic Identification Systems (AISs) and RFID 295
Process Control 295
Vision Systems 296
Robots 296
Automated Storage and Retrieval Systems
(ASRSs) 296
Automated Guided Vehicles (AGVs) 296
Flexible Manufacturing Systems (FMSs) 297
Computer-Integrated Manufacturing (CIM) 297
Technology in Services 298
Process Redesign 298
Summary 299
Key Terms 299
Ethical Dilemma 300
Discussion Questions 300
Solved Problem 300
Problems 301
CASE STUDIES 302
Rochester Manufacturing’s Process Decision 302
Process Strategy at Wheeled Coach Video Case 302
Alaska Airlines: 20-Minute Baggage Process—
Guaranteed! Video Case 303
Process Analysis at Arnold Palmer Hospital
Video Case 304
Endnotes 304
Rapid Review 305
Self Test 306
Supplement 7 Capacity and Constraint
Management 307
Capacity 308
Design and Effective Capacity 309TABLE OF CONTENTS xv
Capacity and Strategy 311
Capacity Considerations 311
Managing Demand 312
Service-Sector Demand and Capacity
Management 313
Bottleneck Analysis and the Theory
of Constraints 314
Theory of Constraints 317
Bottleneck Management 317
Break-Even Analysis 318
Single-Product Case 319
Multiproduct Case 320
Reducing Risk with Incremental Changes 322
Applying Expected Monetary Value (EMV)
to Capacity Decisions 323
Applying Investment Analysis to Strategy-Driven
Investments 324
Investment, Variable Cost, and Cash Flow 324
Net Present Value 324
Summary 326
Key Terms 327
Discussion Questions 327
Using Software for Break-Even Analysis 327
Solved Problems 328
Problems 330
CASE STUDY 333
Capacity Planning at Arnold Palmer Hospital
Video Case 333
Endnote 334
Rapid Review 335
Self Test 336
Chapter 8 Location Strategies 337
GLOBAL COMPANY PROFILE: FEDEX 338
The Strategic Importance of Location 340
Factors That Affect Location Decisions 341
Labor Productivity 342
Exchange Rates and Currency Risk 342
Costs 342
Political Risk, Values, and Culture 343
Proximity to Markets 343
Proximity to Suppliers 344
Proximity to Competitors (Clustering) 344
Methods of Evaluating Location Alternatives 344
The Factor-Rating Method 345
Locational Cost–Volume Analysis 346
Center-of-Gravity Method 348
Transportation Model 349
Service Location Strategy 350
Geographic Information Systems 351
Summary 353
Key Terms 353
Ethical Dilemma 354
Discussion Questions 354
Using Software to Solve Location Problems 354
Solved Problems 355
Problems 357
CASE STUDIES 362
Southern Recreational Vehicle Company 362
Locating the Next Red Lobster Restaurant
Video Case 362
Where to Place the Hard Rock Cafe Video Case 363
Endnote 364
Rapid Review 365
Self Test 366
Chapter 9 Layout Strategies 367
GLOBAL COMPANY PROFILE: McDONALD’S 368
The Strategic Importance of Layout Decisions 370
Types of Layout 370
Office Layout 371
Retail Layout 372
Servicescapes 375
Warehouse and Storage Layouts 375
Cross-Docking 376
Random Stocking 377
Customizing 377
Fixed-Position Layout 377
Process-Oriented Layout 378
Computer Software for Process-Oriented Layouts 382
Work Cells 383
Requirements of Work Cells 383
Staffing and Balancing Work Cells 384
The Focused Work Center and the Focused
Factory 386
Repetitive and Product-Oriented Layout 386
Assembly-Line Balancing 387
Summary 392
Key Terms 392
Ethical Dilemma 392
Discussion Questions 392
Using Software to Solve Layout Problems 393
Solved Problems 394
Problems 396
CASE STUDIES 402
State Automobile License Renewals 402
Laying Out Arnold Palmer Hospital’s New Facility
Video Case 402
Facility Layout at Wheeled Coach Video Case 404
Endnotes 404
Rapid Review 405
Self Test 406xvi TABLE OF CONTENTS
Chapter 10 Human Resources, Job Design, and Work
Measurement 407
GLOBAL COMPANY PROFILE: RUSTY WALLACE’S NASCAR
RACING TEAM 408
Human Resource Strategy for Competitive
Advantage 410
Constraints on Human Resource Strategy 410
Labor Planning 411
Employment-Stability Policies 411
Work Schedules 411
Job Classifications and Work Rules 412
Job Design 412
Labor Specialization 412
Job Expansion 413
Psychological Components of Job Design 413
Self-Directed Teams 414
Motivation and Incentive Systems 415
Ergonomics and the Work Environment 415
Methods Analysis 417
The Visual Workplace 420
Labor Standards 420
Historical Experience 421
Time Studies 421
Predetermined Time Standards 425
Work Sampling 427
Ethics 430
Summary 430
Key Terms 430
Ethical Dilemma 431
Discussion Questions 431
Solved Problems 432
Problems 434
CASE STUDIES 437
Jackson Manufacturing Company 437
The “People” Focus: Human Resources at Alaska
Airlines Video Case 437
Hard Rock’s Human Resource Strategy
Video Case 438
Endnotes 438
Rapid Review 439
Self Test 440
PART THREE Managing Operations 441
Chapter 11 Supply Chain Management 441
GLOBAL COMPANY PROFILE: DARDEN RESTAURANTS 442
The Supply Chain’s Strategic Importance 444
Sourcing Issues: Make-or-Buy and
Outsourcing 446
Make-or-Buy Decisions 447
Outsourcing 447
Six Sourcing Strategies 447
Many Suppliers 447
Few Suppliers 447
Vertical Integration 448
Joint Ventures 448
Keiretsu Networks 448
Virtual Companies 449
Supply Chain Risk 449
Risks and Mitigation Tactics 450
Security and JIT 451
Managing the Integrated Supply Chain 451
Issues in Managing the Integrated Supply Chain 451
Opportunities in Managing the Integrated Supply
Chain 452
Building the Supply Base 454
Supplier Evaluation 454
Supplier Development 454
Negotiations 455
Contracting 455
Centralized Purchasing 455
E-Procurement 456
Logistics Management 456
Shipping Systems 456
Warehousing 457
Third-Party Logistics (3PL) 458
Distribution Management 459
Ethics and Sustainable Supply Chain
Management 460
Supply Chain Management Ethics 460
Establishing Sustainability in Supply
Chains 460
Measuring Supply Chain Performance 461
Assets Committed to Inventory 461
Benchmarking the Supply Chain 463
The SCOR Model 463
Summary 464
Key Terms 465
Ethical Dilemma 465
Discussion Questions 465
Solved Problems 465
Problems 466
CASE STUDIES 467
Darden’s Global Supply Chains Video Case 467TABLE OF CONTENTS xvii
Supply Chain Management at Regal Marine
Video Case 467
Arnold Palmer Hospital’s Supply Chain
Video Case 468
Endnote 468
Rapid Review 469
Self Test 470
Supplement 11 Supply Chain Management
Analytics 471
Techniques for Evaluating Supply Chains 472
Evaluating Disaster Risk in the Supply Chain 472
Managing the Bullwhip Effect 474
A Bullwhip Effect Measure 475
Supplier Selection Analysis 476
Transportation Mode Analysis 477
Warehouse Storage 478
Summary 479
Discussion Questions 480
Solved Problems 480
Problems 482
Rapid Review 485
Self Test 486
Chapter 12 Inventory Management 487
GLOBAL COMPANY PROFILE: AMAZON.COM 488
The Importance of Inventory 490
Functions of Inventory 490
Types of Inventory 490
Managing Inventory 491
ABC Analysis 491
Record Accuracy 493
Cycle Counting 493
Control of Service Inventories 494
Inventory Models 495
Independent vs. Dependent Demand 495
Holding, Ordering, and Setup Costs 495
Inventory Models for Independent Demand 496
The Basic Economic Order Quantity (EOQ)
Model 496
Minimizing Costs 497
Reorder Points 501
Production Order Quantity Model 502
Quantity Discount Models 505
Probabilistic Models and Safety Stock 508
Other Probabilistic Models 511
Single-Period Model 513
Fixed-Period (P) Systems 514
Summary 515
Key Terms 515
Ethical Dilemma 515
Discussion Questions 515
Using Software to Solve Inventory Problems 516
Solved Problems 517
Problems 520
CASE STUDIES 524
Zhou Bicycle Company 524
Parker Hi-Fi Systems 525
Managing Inventory at Frito-Lay Video Case 525
Inventory Control at Wheeled Coach Video Case 526
Endnotes 526
Rapid Review 527
Self Test 528
Chapter 13 Aggregate Planning and S&OP 529
GLOBAL COMPANY PROFILE: FRITO-LAY 530
The Planning Process 532
Sales and Operations Planning 533
The Nature of Aggregate Planning 534
Aggregate Planning Strategies 535
Capacity Options 535
Demand Options 536
Mixing Options to Develop a Plan 537
Methods for Aggregate Planning 538
Graphical Methods 538
Mathematical Approaches 543
Aggregate Planning in Services 545
Restaurants 546
Hospitals 546
National Chains of Small Service Firms 546
Miscellaneous Services 546
Airline Industry 547
Revenue Management 547
Summary 550
Key Terms 550
Ethical Dilemma 551
Discussion Questions 551
Using Software for Aggregate Planning 552
Solved Problems 554
Problems 555
CASE STUDIES 559
Andrew-Carter, Inc. 559
Using Revenue Management to Set Orlando Magic
Ticket Prices Video Case 560
Endnote 560
Rapid Review 561
Self Test 562
Chapter 14 Material Requirements Planning (MRP)
and ERP 563
GLOBAL COMPANY PROFILE: WHEELED COACH 564
Dependent Demand 566xviii TABLE OF CONTENTS
Dependent Inventory Model Requirements 566
Master Production Schedule 567
Bills of Material 568
Accurate Inventory Records 570
Purchase Orders Outstanding 570
Lead Times for Components 570
MRP Structure 571
MRP Management 575
MRP Dynamics 575
MRP Limitations 575
Lot-Sizing Techniques 576
Extensions of MRP 580
Material Requirements Planning II (MRP II) 580
Closed-Loop MRP 581
Capacity Planning 581
MRP in Services 583
Distribution Resource Planning (DRP) 584
Enterprise Resource Planning (ERP) 584
ERP in the Service Sector 587
Summary 587
Key Terms 587
Ethical Dilemma 587
Discussion Questions 588
Using Software to Solve MRP Problems 588
Solved Problems 589
Problems 592
CASE STUDIES 595
When 18,500 Orlando Magic Fans Come to Dinner
Video Case 595
MRP at Wheeled Coach Video Case 596
Endnotes 596
Rapid Review 597
Self Test 598
Chapter 15 Short-Term Scheduling 599
GLOBAL COMPANY PROFILE: ALASKA AIRLINES 600
The Importance of Short-Term Scheduling 602
Scheduling Issues 602
Forward and Backward Scheduling 603
Finite and Infinite Loading 604
Scheduling Criteria 604
Scheduling Process-Focused Facilities 605
Loading Jobs 605
Input–Output Control 606
Gantt Charts 607
Assignment Method 608
Sequencing Jobs 611
Priority Rules for Sequencing Jobs 611
Critical Ratio 614
Sequencing N Jobs on Two Machines: Johnson’s
Rule 615
Limitations of Rule-Based Sequencing Systems 616
Finite Capacity Scheduling (FCS) 617
Scheduling Services 618
Scheduling Service Employees with Cyclical
Scheduling 620
Summary 621
Key Terms 621
Ethical Dilemma 621
Discussion Questions 622
Using Software for Short-Term Scheduling 622
Solved Problems 624
Problems 627
CASE STUDIES 630
Old Oregon Wood Store 630
From the Eagles to the Magic: Converting the Amway
Center Video Case 631
Scheduling at Hard Rock Cafe Video Case 632
Endnotes 632
Rapid Review 633
Self Test 634
Chapter 16 Lean Operations 635
GLOBAL COMPANY PROFILE: TOYOTA MOTOR
CORPORATION 636
Lean Operations 638
Eliminate Waste 638
Remove Variability 639
Improve Throughput 640
Lean and Just-in-Time 640
Supplier Partnerships 640
Lean Layout 642
Lean Inventory 643
Lean Scheduling 646
Lean Quality 649
Lean and the Toyota Production System 649
Continuous Improvement 649
Respect for People 649
Processes and Standard Work Practice 650
Lean Organizations 650
Building a Lean Organization 650
Lean Sustainability 652
Lean in Services 652
Summary 653
Key Terms 653
Ethical Dilemma 653
Discussion Questions 653
Solved Problem 653
Problems 654TABLE OF CONTENTS xix
CASE STUDIES 655
Lean Operations at Alaska Airlines Video Case 655
JIT at Arnold Palmer Hospital Video Case 656
Endnote 656
Rapid Review 657
Self Test 658
Chapter 17 Maintenance and Reliability 659
GLOBAL COMPANY PROFILE: ORLANDO UTILITIES
COMMISSION 660
The Strategic Importance of Maintenance
and Reliability 662
Reliability 663
System Reliability 663
Providing Redundancy 665
Maintenance 667
Implementing Preventive Maintenance 667
Increasing Repair Capabilities 670
Autonomous Maintenance 670
Total Productive Maintenance 671
Summary 671
Key Terms 671
Ethical Dilemma 671
Discussion Questions 671
Using Software to Solve Reliability Problems 672
Solved Problems 672
Problems 672
CASE STUDY 674
Maintenance Drives Profits at Frito-Lay
Video Case 674
Rapid Review 675
Self Test 676
PART FOUR Business Analytics Modules 677
Module A Decision-Making Tools 677
The Decision Process in Operations 678
Fundamentals of Decision Making 679
Decision Tables 680
Types of Decision-Making Environments 681
Decision Making Under Uncertainty 681
Decision Making Under Risk 682
Decision Making Under Certainty 683
Expected Value of Perfect Information (EVPI) 683
Decision Trees 684
A More Complex Decision Tree 686
The Poker Decision Process 688
Summary 689
Key Terms 689
Discussion Questions 689
Using Software for Decision Models 689
Solved Problems 691
Problems 692
CASE STUDY 696
Warehouse Tenting at the Port of Miami 696
Endnote 696
Rapid Review 697
Self Test 698
Module B Linear Programming 699
Why Use Linear Programming? 700
Requirements of a Linear Programming
Problem 701
Formulating Linear Programming Problems 701
Glickman Electronics Example 701
Graphical Solution to a Linear Programming
Problem 702
Graphical Representation of Constraints 702
Iso-Profit Line Solution Method 703
Corner-Point Solution Method 705
Sensitivity Analysis 705
Sensitivity Report 706
Changes in the Resources or Right-Hand-Side
Values 706
Changes in the Objective Function Coefficient 707
Solving Minimization Problems 708
Linear Programming Applications 710
Production-Mix Example 710
Diet Problem Example 711
Labor Scheduling Example 712
The Simplex Method of LP 713
Integer and Binary Variables 713
Creating Integer and Binary Variables 713
Linear Programming Applications with Binary
Variables 714
A Fixed-Charge Integer Programming Problem 715
Summary 716
Key Terms 716
Discussion Questions 716
Using Software to Solve LP Problems 716
Solved Problems 718
Problems 720
CASE STUDIES 725
Quain Lawn and Garden, Inc. 725
Scheduling Challenges at Alaska Airlines
Video Case 726
Endnotes 726
Rapid Review 727
Self Test 728xx TABLE OF CONTENTS
Module C Transportation Models 729
Transportation Modeling 730
Developing an Initial Solution 732
The Northwest-Corner Rule 732
The Intuitive Lowest-Cost Method 733
The Stepping-Stone Method 734
Special Issues in Modeling 737
Demand Not Equal to Supply 737
Degeneracy 737
Summary 738
Key Terms 738
Discussion Questions 738
Using Software to Solve Transportation
Problems 738
Solved Problems 740
Problems 741
CASE STUDY 743
Custom Vans, Inc. 743
Rapid Review 745
Self Test 746
Module D Waiting-Line Models 747
Queuing Theory 748
Characteristics of a Waiting-Line System 749
Arrival Characteristics 749
Waiting-Line Characteristics 750
Service Characteristics 751
Measuring a Queue’s Performance 752
Queuing Costs 753
The Variety of Queuing Models 754
Model A (M/M/1): Single-Server Queuing Model with
Poisson Arrivals and Exponential Service Times 754
Model B (M/M/S): Multiple-Server Queuing
Model 757
Model C (M/D/1): Constant-Service-Time Model 762
Little’s Law 763
Model D (M/M/1 with Finite Source): Finite-Population
Model 763
Other Queuing Approaches 765
Summary 765
Key Terms 765
Discussion Questions 765
Using Software to Solve Queuing Problems 766
Solved Problems 766
Problems 768
CASE STUDIES 771
New England Foundry 771
The Winter Park Hotel 772
Endnotes 772
Rapid Review 773
Self Test 774
Module E Learning Curves 775
What Is a Learning Curve? 776
Learning Curves in Services and
Manufacturing 777
Applying the Learning Curve 778
Doubling Approach 778
Formula Approach 779
Learning-Curve Table Approach 779
Strategic Implications of Learning Curves 782
Limitations of Learning Curves 783
Summary 783
Key Term 783
Discussion Questions 783
Using Software for Learning Curves 784
Solved Problems 784
Problems 785
CASE STUDY 787
SMT’s Negotiation with IBM 787
Endnote 788
Rapid Review 789
Self Test 790
Module F Simulation 791
What Is Simulation? 792
Advantages and Disadvantages of Simulation 793
Monte Carlo Simulation 794
Simulation with Two Decision Variables:
An Inventory Example 797
Summary 799
Key Terms 799
Discussion Questions 799
Using Software in Simulation 800
Solved Problems 801
Problems 802
CASE STUDY 805
Alabama Airlines’ Call Center 805
Endnote 806
Rapid Review 807
Self Test 808
Appendix A1
Bibliography B1
Name Index I1
General Index I7TABLE OF CONTENTS xxi
ONLINE TUTORIALS
1. Statistical Tools for Managers T1-1
Discrete Probability Distributions T1-2
Expected Value of a Discrete Probability
Distribution T1-3
Variance of a Discrete Probability Distribution T1-3
Continuous Probability Distributions T1-4
The Normal Distribution T1-4
Summary T1-7
Key Terms T1-7
Discussion Questions T1-7
Problems T1-7
Bibliography T1-7
2. Acceptance Sampling T2-1
Sampling Plans T2-2
Single Sampling T2-2
Double Sampling T2-2
Sequential Sampling T2-2
Operating Characteristic (OC) Curves T2-2
Producer’s and Consumer’s Risk T2-3
Average Outgoing Quality T2-5
Summary T2-6
Key Terms T2-6
Solved Problem T2-7
Discussion Questions T2-7
Problems T2-7
3. The Simplex Method of Linear Programming T3-1
Converting the Constraints to Equations T3-2
Setting Up the First Simplex Tableau T3-2
Simplex Solution Procedures T3-4
Summary of Simplex Steps for Maximization
Problems T3-6
Artificial and Surplus Variables T3-7
Solving Minimization Problems T3-7
Summary T3-8
Key Terms T3-8
Solved Problem T3-8
Discussion Questions T3-8
Problems T3-9
4. The MODI and VAM Methods of Solving
Transportation Problems T4-1
MODI Method T4-2
How to Use the MODI Method T4-2
Solving the Arizona Plumbing Problem with
MODI T4-2
Vogel’s Approximation Method: Another Way to Find
an Initial Solution T4-4
Discussion Questions T4-8
Problems T4-8
5. Vehicle Routing and Scheduling T5-1
Introduction T5-2
Service Delivery Example: Meals-for-ME T5-2
Objectives of Routing and Scheduling
Problems T5-2
Characteristics of Routing and Scheduling
Problems T5-3
Classifying Routing and Scheduling Problems T5-3
Solving Routing and Scheduling Problems T5-4
Routing Service Vehicles T5-5
The Traveling Salesman Problem T5-5
Multiple Traveling Salesman Problem T5-8
The Vehicle Routing Problem T5-9
Cluster First, Route Second Approach T5-10
Scheduling Service Vehicles T5-11
The Concurrent Scheduler Approach T5-13
Other Routing and Scheduling Problems T5-13
Summary T5-14
Key Terms T5-15
Discussion Questions T5-15
Problems T5-15
Case Study: Routing and Scheduling of
Phlebotomists T5-17
Bibliography
General Index
A
ABC analysis, 491 – 492
Acceptable quality level (AQL), 263
Acceptance sampling, 262 – 265 , T2 – 1
to T2 – 7
average outgoing quality (AOQ),
264 – 265 , T2 – 5 to T2 – 6
erroneous conclusions and, 263 n
operating characteristic (OC) curve
and, 263 – 264
sampling plans, T2 – 2
Accurate inventory records, MRP
and, 570
Accurate pull data, 452
Activity charts, job design and, 418
Activity map, 43
Activity times, variability in, 77 – 82
Activity-on-arrow (AOA), 68 , 71
Activity-on-node (AON), 68 , 69 – 70 ,
90
Adaptive smoothing, forecasting and,
139
Additive manufacturing, 295
Advanced shipping notice (ASN), 454
Aggregate planning, 529 – 562
capacity options, 535 – 536
chase strategy and, 537
comparison of planning methods
for, 537
demand options and, 536 – 537
disaggregation and, 535
ethical dilemma, 551
graphical methods and, 538 – 543
level strategy and, 538
master production schedule and,
535
mathematical approaches and,
543 – 545
methods for, 538 – 543
mixing options to develop a plan
and, 537 – 538
nature of, 534 – 535
planning process and, 532 – 533
revenue management and, 547 – 550
sales and operating planning
(S&OP) and, 533 – 534
scheduling issues and, 603
services and, 545 – 547
software for, 552 – 553
S&OP defi nition, 533
strategies for, 535 – 538
transportation method of linear
programming and, 543 – 545
yield management and, 547 – 550
Aggregate scheduling. See Aggregate
planning
Agile project management, 67
Air Berlin, 257
Airbus, 31
Aircraft industry, 417
Airfreight, logistics management and,
457
Airline industry:
aggregate planning and, 547
capacity, matching to demand, 313
inventory, 652
organizational chart, 5
revenue management, 551
scheduling services in, 619
sustainability, 194
AirTran, 257
Alabama Airlines, 805 – 806
Alaska, long-range economic
forecasting, 111
Alaska Airlines:
baggage process strategy, 303 – 304
Global Company Profi le, 600 – 601
human resources, 437 – 438
inspection, 232
lean operations, 651 , 655 – 656
quality, 240 – 242
scheduling challenges, 726
short-term scheduling, 600 – 602
sustainability, 199
Alenia Aeronautica, 30–31
Algebraic approach, break-even
analysis and, 319 – 320
Align Technology, 285
Alliances, 175
time-based competition and, 175
Allowable ranges for objective
function coefficients, 708
Allstate Insurance, 163
All-units discount, 507
Amazon.com, 110
Global Company Profi le, 488 – 489
supply chain, 445
warehouse strategy, 376
Ambient conditions, 375
American Hardware Supply, 140
American National Can Company,
289 , 290
American Society for Quality (ASQ),
8 , 217
Amway Center, 208 – 209 , 631 – 632
Analysis and design, process strategy
and, 289
Andon, 637 , 642
Anheuser-Busch, 463
AOA (Activity-on-arrow), 68 , 71
AON (Activity-on-node), 68 , 69 – 70
APEC, 34
APICS (Association for Operations
Management), 8
APICS Supply Chain Council, 464
Apple, 41 , 45 , 109 – 110 , 162 , 195
Application of decision trees
evaluating disaster risk, 473–474
product design, 182–184
Appointment system, 314
Appraisal costs, quality and, 218
Approaches to forecasting, 111 – 112
Arby’s, use of GIS system, 353
ArcGIS, 353
Arcs, routing and scheduling vehicles
and, T5 – 3
Area under the normal curve, T1 – 4
to T1 – 5
Argentina, MERCOSUR and, 34
Arnold Palmer Hospital, 66
building construction, 66
capacity planning, 333 – 334
flowchart, 229
Global Company Profi le, 214 – 215
hospital layout, 402 – 404
inspection, 232
JIT, 656
labor standards and, 428
managing quality, 214 – 215
mission statement, 36
process analysis, 304
process focus, 283
project management, 99 – 100
supply chain, 468
Arrival characteristics, waiting line
systems and, 749 – 752
behavior of arrivals, 750
characteristics of, 749 – 750
pattern of arrivals and, 749 – 750
Poisson distribution, 737
Artifacts, servicescapes and, 375
Artifi cial variables, T3 – 8
ASRS, 296
Assembly chart, 178
Assembly drawing, 178
Assembly line
labor specialization, 412
product-oriented layout and, 386
regulations, 203 – 204
repetitive manufacturing, 280 – 281
scheduling, 605
sustainability, 203
Note: Page numbers beginning with a T refer to the Online Tutorial chapters that appear on our web site https://.pearsonhighered.com/heizer.I8 GENERAL INDEX
Assembly-line balancing, productoriented layout and, 386
Assets committed to inventory,
461 – 463
Assignable variations, statistical
process control and, 247
Assignment method, loading and,
608 – 610
Association for Operations
Management (APICS), 8
Associative forecasting methods, 112 ,
131 – 137
correlation coefficient for
regression lines, 134 – 136
linear-regression analysis, 131–136
multiple regression analysis, 136 –
137
regression analysis, 131 – 137
standard deviation of the estimate,
133 – 134
standard error of the estimate,
133 – 134
Assumptions, break-even analysis
and, 318 – 319
Atlas GIS, 353
AT&T, 218
Attract and retain global talent,
global view of operations and,
34 – 35
Attribute(s):
c-charts and, 257 – 259
control charts for, 256 – 259
p-charts and, 256 – 257 , 259
versus variables, inspection and,
233
Auctions, online, 456
Auctions, supply chain management,
and, 455
Audi, 46
Australia, SEATO and, 34
Automated Storage and Retrieval
Systems (ASRS), 296 , 297
Automatic Guided Vehicles (AGV),
296
Automatic identification systems
(AIS), 295 , 377
Automation, service efficiency and, 181
Automobile manufacturing. See also
Ford Motor Co.
bullwhip effect in, 476
sustainability, 203 , 205
Autonomous maintenance, 670
Avendra, 456
Average observed time, 422
Average outgoing quality, 264 – 265 ,
T2 – 5 to T2 – 6
Avis car rental, 730
B
Babbage, Charles, 412
Back ordering, 536 – 537
Backup redundancy, 665 – 666
Backward integration, 448
Backward pass, 74
Backward scheduling, 604
BAE Systems, 30
Balancing work cells, 384 – 386
Balking customers, 750
Ballard Power Systems, 175
Baltimore, Port of, 119 – 120
Bank of America, 643
Banks
organizational chart, 5
scheduling for services and, 618
Basic feasible solution, T3 – 3
Basic variables, T3 – 3
Baxter International, 642
Bay Medical Center, simulation and,
792
Bayfield Mud Company, SPC and,
274 – 275
Bechtel Group, Global Company
Profile, 60 – 61
Beer, supply chain for, 444
Behavior of arrivals, 750
Bell Laboratories, 246
Benchmarking, 222 – 224
supply chain, 463
Benetton, 32 , 370 , 453 , 585
Best Buy, 375
Beta probability distribution, 77 – 78
Bias, forecasts and, 138
Big data, 679
Bills-of-material (BOM), 175 , 568 –
570
Binary variables, 713 – 715
Blanket orders, 453
Blue Cross, 46
BMW, 34 , 203
Boeing Aircraft, 173 , 388 – 389
Global Company Profile, 30 – 31
operations strategy, 40
product reliability, 668
supply chain risks and tactics, 450
sustainable product design, 199
Bose Corp., 216
Boston Medical Center, 415
Bottleneck analysis and theory of
constraints, 314 – 318
management of, 317 – 318
time and, 315
Bottom line, triple, 195 – 198
BP, 204
Brazil, MERCOSUR and, 34
Break-bulk warehouse function,
457
Breakdown maintenance, 667
Break-even analysis, 318 – 322
assumptions and, 318 – 319
definition, 318
fixed costs, 318
multiproduct case and, 320 – 322
revenue function, 318
single-product case and, 319 – 320
Bristol-Myers Squibb, 111
British Petroleum (BP), 204
Buckets, MRP and, 576
Buffer, in bottleneck management, 317
Building the supply base,
centralized purchasing, 455 – 456
Build-to-order (BTO), 285
Bullwhip effect, 452 , 474 – 476
Burger King, 386 , 794
Buybacks, 455
C
CAD, 171 – 172
Cadillac, 218
CAFTA, 34
Calculating slack time, 75 – 76
California drought, 197
Call center industry, location
strategies and, 47
CAM, 172
Canada, NAFTA and, 34
Canon, 384
“Cap and trade” principle, 204
Capacity. See also Break-even
analysis
aggregate planning, 535 – 536
analysis and, 314
applying expected monetary value
(EMV) to capacity decisions,
323
applying investment analysis to
strategy-driven investments,
324 – 326
bottleneck analysis and theory of
constraints, 314 – 318
break-even analysis, 318 – 322
capacity exceeds demand, 312
considerations and, 311
definition, 308
demand management and, 312 – 313
design and, 309 – 311
effective capacity, 309 – 311
forecasting and, 109, 110
managing demand, 312 – 313
net present value and, 324 – 326
reducing risks with incremental
changes, 322 – 323
service sector demand, 313 – 314
strategy and, 311
strategy-driven investments and,
324 – 326
theory of constraints, 317
using software, 327
Capacity analysis, 314
Capacity management, service sector
and, 314
Capacity planning, MRP and,
581 – 583
Capacity plans, scheduling issues
and, 602 – 603
Capital, as a productivity variable,
15 , 16GENERAL INDEX I9
Car rental companies, 730
Carbon footprint, 197
Cartoon industry in Manila, 33
Carvel Ice Cream, use of GIS system,
352
Case Studies:
Alabama Airlines’ Call Center,
805 – 806
Alaska Airlines:
human resources, 437 – 438
lean operations, 655 – 656
process strategy, 303–304
quality, 240 – 242
scheduling challenges, 726
Amway Center sustainability,
208 – 209
Andrew Carter, Inc. aggregate
planning, 559 – 560
Arnold Palmer Hospital
capacity planning, 333 – 334
hospital layout, 402 – 404
JIT, 656
process analysis, 304
project management, 99 – 100
quality, 240
supply chain, 468
Bayfield Mud Company, SPC and,
274 – 275
Custom Vans. Inc. transportation
problem, 743 – 744
Darden Restaurants
outsourcing offshore, 56
Red Lobster, location and
strategies, 362 – 363
statistical process control, 276
supply chain and, 467
De Mar’s Product Strategy, 189
Frito-Lay
inventory management,
525 – 526
maintenance, 674
operations management, 25
statistical process control, 275
sustainability, 209 – 210
Hard Rock Cafe
forecasting, 155–156
global strategy, 55 – 56
human resource strategy, 438
location strategy, 363 – 364
operations management in
services, 25–26
project management, 77,
100–102
scheduling, 632
Jackson Manufacturing Co., work
measurement, 437
New England Foundry, waitingline models, 771 – 772
Old Oregon Wood Store, shortterm scheduling and, 630
Orlando Magic
forecasting, 154 – 155
MRP and, 595 – 596
revenue management, 560
short-term scheduling, 631 – 632
sustainability, 208–209
Parker Hi-Fi Systems, inventory
management and, 525
Phlebotomists, routing and
scheduling, T5 – 17 to T5 – 18
Port of Miami warehouse tenting,
696
Quain Lawn and Garden, Inc., LP
problem, 725 – 726
Rapid-Lube, operations strategy
in a global environment and,
55
Regal Marine
global strategy, 55
product design, 189–190
supply chain management,
467 – 468
Ritz-Carlton Hotel company
quality, 242
Rochester Manufacturing Corp.,
302
SMT’s negotiation with IBM,
787 – 788
Southern Recreational Vehicle
Co., location strategies and,
362
Southwestern University:
forecasting, 153 – 154
project management, 98 – 99
quality, 239 – 240
State automobile license renewals,
402
Uber Technologies, Inc., 24
Wheeled Coach
inventory control, 526
layout strategy, 404
MRP and, 596
process strategy, 302 – 303
Winter Park Hotel, waiting line
models, 772
Zhou Bicycle Co., inventory
management and, 524 – 525
Cash flow, investment analysis and,
324
Cash for Clunkers program, 476
Caterpillar, 49 , 50 , 203 , 474
Cause-and-effect diagrams, 226 , 227
c-charts, 257 – 259
Center-of-gravity method, location
strategies and, 348 – 349 , 348 n
Central limit theorem, 248 – 249
Certainty, decision making under,
683
Certification, supplier, 454
Cessna Aircraft Company, 642
Changes in objective function
coefficient, 707 – 708
Changes in resources or right-handside values, LP and, 706 – 707
Channel assembly, supply chain
management and, 457 – 458
Characteristics of goods and services,
11
Characteristics of vehicle routing and
scheduling problems, T5 – 3 to
T5 – 5
Charleston, port of, 451
Charts. See Control charts
Chase strategy, aggregate scheduling
and, 537
Check sheets, TQM tools and,
226 – 227
Checklist, source inspection and,
231
Chengdu Aircraft, 30
Chile, SEATO and, 34
China
ethics within supply chain, 460
manufacturing in, 48 , 51
Chinese postman problem (CPP),
T5 – 4
CIM, 297 – 298
Cisco Systems, 372
Clark and Wright Savings heuristic,
T5 – 5 , T5 – 7 to T5 – 8
Classifying routing and scheduling
vehicle problems, T5 – 3 to
T5 – 4
Closed-loop material requirements
planning, 581
Closed-loop supply chain, 203 , 461
Cluster first, route second approach,
T5 – 10 to T5 – 11
Clustering, 344
Cobham, 30
Coca-Cola, 198 , 463
Coefficient approach, learning curve
and, 779 – 782
Coefficient of correlation, 134 – 136
Coefficient of determination, 136
Collaborative planning, forecasting,
and replenishment (CPFR),
110 , 453
Colruyt, Franz, 38
Commodities transport, 457
Common, resources in the, 195
Company reputation, quality and,
217
Comparative advantage, theory of
outsourcing, 46
Comparison of aggregate planning
methods, 537
Comparison of process choices,
286 – 288
Competing on cost
differentiation, operations and,
37 – 38
experience differentiation, 38
operations and, 38
product strategy options and, 164
response, operations, 39 – 40I10 GENERAL INDEX
Competitive advantage, operations
and, 36 – 39
Amazon.com, 488 – 489
Arnold Palmer Hospital and,
214 – 215
Bechtel and, 60 – 61
Boeing and, 30 – 31
cost and, 38
Darden Restaurants, 442 – 443
definition, 36 – 37
differentiation and, 37 – 38
Federal Express, 338 – 339
Frito-Lay, 530 – 531
human resources and, 410 – 411
lean operations and, 636 – 637
McDonalds, 368 – 369
Orlando Utilities Commission,
660 – 661
product strategy options and,
163 – 164
Regal Marine and, 160 – 161
Walt Disney World and, 106 – 107
Wheeled Coach, 564 – 565
Competitive bidding, 455
Competitors, location proximity to,
344
Components, lead time for, 570 – 571
Computer numerical control (CNC),
295
Computer software. See also
Excel, creating your own
spreadsheets; Excel OM; POM
for Windows
for process oriented layouts, 382 – 383
for simulations, 800
Computer-aided design (CAD), 161 ,
171 , 297
Computer-aided manufacturing
(CAM), 172 , 297
Computer-integrated manufacturing
(CIM), 297 – 298
Concurrent engineering, 170
Concurrent scheduler approach,
T5 – 13
Configuration management, 178
Consignment inventory, JIT and, 642
Constant work-in-process (ConWIP),
606 – 607
Constant-service-time model, 762
Constraints:
graphical representation of, LP
problem and, 702 – 703
human resource strategy and, 410
linear programming and, 701
Consumer market survey, forecasting
and, 111 – 112
Consumer Product Safety
Commission, 203
Consumer’s risk, 263 , T2 – 3 to T2 – 4
Containers. See Kanban
Continuous improvement
TPS and, 649
TQM and, 220 – 221
Continuous probability distributions,
statistical tools and, T1 – 5 to
T1 – 8
Contracting, with suppliers, 455
Contribution, break-even analysis
and, 318
Contribution, defined, 165 n
Control charts, 230 , 241
attributes, 256 – 258
building process, 247 – 248
c-charts, 257 – 259
defined, 246
managerial issues and, 259 – 260
patterns on, 259
p-charts, 256 – 257 , 259
R-charts, 248 , 253 – 254
steps to follow in using, 254 – 255
variables, 248 , 259
x-bar chart, 248 , 250 – 253 , 259
Control of service inventory, 494 –
495
Controlling, project management
and, 66 – 67
Controlling forecasts, 138 – 140
ConWIP cards, 606 – 607
Coors, 112
Core competencies, 42 – 43
Core job characteristics, 413 – 414
Corner-point solution method, 705
Corporate social responsibility
(CSR), 194
Correlation analysis, associative
forecasting methods and,
131 – 137
Correlation coefficients for regression
lines, 134 – 136
Cost of goods sold, 462
Cost of quality (COQ), 218 – 219
Cost-based price model, 455
Costco, 495 , 758
Cost(s)
breakdown, 668 – 669
competing on, 38
globalization, 33
intangible, 342
intuitive lowest-cost transportation
model, 733 – 734
location and, 340 – 341
queuing, 753 – 754
reduction through value
engineering, 170
tangible, 342
Cost-time trade-offs, project
management and, 82 – 85
Council of Supply Chain
Management Professionals, 8
Cp ratio, 260 – 261
CPFR (collaborative planning,
forecasting, and
replenishment), 110
Cpk index, 261 – 262
CPM. See Critical path method
(CPM)
Crashing, project management and,
82 – 85
Criteria, scheduling and, 604 – 605
Critical path, 67 , 91 – 92
Critical path analysis, 71 – 72
Critical path method (CPM)
activity-on-arrow example, 68 , 71
activity-on-node example, 69 – 70
calculating slack time, 75 – 76
critique of, 85 – 86
determining the project schedule,
71 – 76
framework of, 67 – 68
Gantt charts versus, 65
identifying the critical path, 72
network diagrams and approaches,
68
variability in activity time, 77 – 82
Critical ratio (CR), sequencing and,
614 – 615
Critique of PERT and CPM, 85 – 86
Crosby, Philip B., 219
Cross-docking, 376
Crossover charts, 286 – 287
Cross-sourcing, 450
CSR (corporate social responsibility),
194
Cultural issues, global view of
operations and, 35
Culture, location strategy and, 343
Cumulative probability distribution,
Monte Carlo Simulation and,
794
Currency risks, location strategies
and, 342
Curtis-Wright Corp., 776
Custom Vans. Inc., 743 – 744
Customer interaction, process design
and, 293 – 294
Customer relationship management
(CRM) software, 584
Customer service, dissatisfaction
from outsourcing, 46
Customers, understanding
focus, 288
new products and, 166 , 167
sustainability, 195 – 196
Customizing. See also Mass
customization
service efficiency, increasing, 181
warehousing layout and, 377
Cycle counting, inventory
management and, 493 – 494
Cycle time, focused work center
and focused factory and, 389 ,
389 n
Cycles, forecasting and, 113 , 131
Cyclical scheduling, 620 – 621
Cyclical variations in data,
forecasting and, 131GENERAL INDEX I11
D
Daimler-BMW, joint venture and, 448
Darden Restaurants. See also Olive
Garden Restaurant, Red
Lobster Restaurant
Global Company Profile, 442 – 443
outsourcing offshore, 56
statistical process control, 253 , 276
supply chain management, 442 –
443 , 460 , 467
supply chain risks and tactics, 450
use of GIS system, 352
Dassault, 30
Data, big, 679
De Mar, 189
Deadhead time, T5 – 12
Decibel (dB) levels, 418
Decision making:
under certainty, 681 – 682 , 683
expected value of perfect
information (EVPI), 683 – 684
expected value with perfect
information (EVwPI), 683 – 684
under risk, 682 – 683
Decision making tools, 677 – 698 . See
also decision trees
under certainty, 681 – 682 , 683
decision tables, 680
decision trees, 684 – 688
expected value of perfect
information (EVPI), 683 – 684
expected value with perfect
information (EVwPI), 683 – 684
fundamentals of, 679 – 680
process in operations and, 678 – 679
under risk, 682 – 683
Decision tables, 680
Decision trees, 684 – 688
definition, 684
evaluating disaster risk, 473–474
more complex, 686 – 688
poker decision process, 688
product design and, 182 – 184
using software, 689 – 690
Decision variables, linear
programming and, 702
Decline phase, product life cycle and,
165
Decomposition of a time series,
112 – 113
Defects, control charts for, 258
Defining a product, 175 – 177
Degeneracy, transportation modeling
and, 737 – 738
Delay
allowances, 422
waste, 289 n
Delay customization, adding service
efficiency and, 181
Dell computers
inventory management, 463
mass customization and, 284 – 285
quality, 216
Deloitte & Touche, 372
Delphi method, forecasting and, 111
Delta Airlines, 66, 257
Gantt chart of service activities, 65
Demand exceeds capacity, 312
Demand forecasts, 109
exponential smoothing, 116 – 117
moving averages, 114 – 116
regression, 131–137
steady (naive approach), 113 – 114
Demand is variable and lead time is
constant, probability models
and, 511
Demand management in service
sector, 313 – 314
Demand not equal to supply,
transportation models and, 737
Demand options, aggregate strategies
and, 536 – 537
Deming, W. Edwards, 218 , 219 , 246 n
Deming Prize, 218
Deming’s 14 points, quality and, 220
Denim production, 197
Department of Agriculture
product definition, 175 – 176
Dependent demand, 495 , 566
Dependent inventory model
requirements, 566 – 571
accurate inventory records and, 570
bills-of-material and, 568 – 570
lead times for components and,
570
low level coding, 570
master production schedule and,
567 – 568
modular bills, 569 – 570
planning bill, 570
purchase orders outstanding and,
570
Dependent selections, 714
Depot node, routing and scheduling
vehicles and, T5 – 3
Design and production for
sustainability, 19 , 173 , 198 – 200
Design capacity, 309
Design for manufacture and assembly
(DFMA), 171
Design of goods and services,
159 – 192 . See also Product
Development
adding service efficiency and, 181
alliances and, 175
application of decision trees to
product design, 182 – 184
bill of material (BOM) and, 175
computer-aided design (CAD) and,
171 – 172
computer-aided manufacturing
(CAM) and, 172
defining the product, 175 – 177
documents for production, 178 – 179
documents for services, 181 – 182
generating new products, 165 – 166
goods and services selection,
162 – 165
group technology and, 177
issues for product design, 171 – 173
joint ventures and, 174 – 175
life cycle and strategy and, 164 –
165
life cycle assessment (LCA), 173
make-or-buy decisions and, 176 –
177
modular design and, 171
OM decisions and, 8
process-chain-network (PCN)
analysis, 179 – 181
product development, 166 – 170
product development continuum,
173 – 175
product life cycles and, 164
product life-cycle management
(PLC) and, 178 – 179
product strategy options support
competitive advantage and,
163 – 164
product-by-value analysis, 165
purchasing technology by
acquiring a firm and, 174
robust design and, 171
service design, 179 – 182
sustainability, 19 , 173 , 198 – 200
time-based competition, 173 – 175
transition to production, 184
value analysis and, 173
virtual reality technology and,
172 – 173
Determinants of service quality, 234
Determining project schedule
backward pass, 74 – 75
calculating slack time, 75 – 76
forward pass, 72 – 74
identifying critical paths, 75 – 76
Developing missions and strategies,
35 – 36
DFMA, 171
DHL, supply chain and, 457 , 458
Diehl, 30
Diet problem, LP and, 711
Differences between goods and
services, 11
Differentiation, competitive
advantage and, 37 – 38 , 163 –
164
Direct interaction, process chain and,
180
Disaggregation, aggregate planning
and, 535
Disaster risk in supply chain,
evaluating, 472 – 474
Discrete probability distributions,
strategic tools and, T1 – 2 to
T1 – 3I12 GENERAL INDEX
Diseconomies of scale, 311
Disney Parks and Resorts. See Walt
Disney Parks and Resorts
Disney World. See Walt Disney Parks
and Resorts
Disneyland, 375
Dispatching jobs, priority rules and,
611 – 612
Distance reduction, JIT layout and,
643
Distribution management, supply
chain management and, 459
Distribution resource planning
(DRP), 584
Distribution systems, supply-chain
management, 459
Distributions, control chart, 247
DMAIC, TQM and, 221
Documents:
for production, 178 – 179
for services, 181 – 182
Domestic Port Radiation Initiative
supply chain risks and tactics, 450
Dominican Republic, CAFTA and,
34
Double smoothing, 124
Doubling approach, learning curve,
778 – 779
Dow Chemical, 194
Drop shipping, 454
Drum, in bottleneck management,
317
Dual value, 707
Dubuque, Iowa, call center, 47
Dummy destinations, 737
Dummy sources, 737
DuPont, 46 , 163 , 222
Dutch auctions, 456
Dynamics, MRP and, 575
E
Earliest due date (EDD), 611 , 614
Earliest finish time (EF), critical path
analysis and, 72 , 73
Earliest start time (ES), critical path
analysis and, 72 , 73
Earthquake damage, 472
Eco Index, 204
Economic change, generating new
products, 166
Economic forecasts, 109
Economic order quantity (EOQ)
models, 496 – 497
lot sizing and, 577 – 578
minimize costs, 497
production order quantity model,
502 – 504
quantity discount model, 505 – 507
reorder points, 501 – 502
robust model, 500 – 501
Economic sustainability, 197
Economies of scale, 311
Effective capacity, 309
Efficiency
capacity and, 310
of line balance, 391
Electronic data interchange (EDI),
454
Electronic ordering and funds
transfer, 453 – 454
Eliminate waste, lean operations and,
638 – 639
Elliot Health System, 415
Emergency room
process layout, 379
queuing, 753
Emirates, 257
Employee empowerment
job expansion and, 413
OM and, 18
TPS and, 649
TQM and, 222
Employees
lean operations and JIT, 643
recruiting globally, 34 – 35
Employment stability policies, 411
EMV. See Expected monetary value
End-of-life phase, 203
Energy Star rating, 204
Engineering change notice (ECN),
178
Engineering drawing, 175
Enterprise Resource Planning (ERP),
566 , 584 – 587 . See also Material
requirements planning
Environment
supply chain ethics and, 460
sustainability and, 196 – 197
Environmental Protection Agency
(EPA), 204
Environmentally sensitive production,
OM and, 18
EOQ (economic order quantity
models), 496 – 497
E-procurement, 456
Equally likely, decision-making under
uncertainty, 681
Equipment, selecting for process
strategy, 288
Ergonomics, work environment and,
415 – 417
feedback to operators, 417
operators input to machines,
416 – 417
Erie Canal, 457
Errors, type 1 and type 2 , 263
Ethical dilemmas:
aggregate planning, 551
airline revenue management, 551
car battery recycling, 20
design of goods and services, 185
human resources, job design, work
measurement and, 431
inventory management, 515
layout strategy, 392
lean operations, 653
location strategies, 354
maintenance and reliability, 671
managing quality, 235
material requirements planning
(MRP) and ERP, 587
operation and productivity, 20
operation strategy in a global
environment, 51
process strategy, 300
project management, 64 , 89
short-term scheduling, 621 – 622
supply-chain management, 465
test scores and forecasting, 141
Ethical issues
global view of operations and, 35
Ethics:
human resources, job design and
work measurement, 430
project management and, 64
quality management and, 219
response identification, 19
social responsibility and, 19
supply chain and, 460 , 465
sustainability and, 19
EU Emissions Trading System
(EUETS), 204
European Union (EU), 34 , 34 n
environmental regulations, 204
standard for the exchange of
product data (STEP), 172
Evaluating disaster risk in supply
chain, 472 – 474
Even-numbered problems, solutions
to, A7 – A20
EVPI (expected value of perfect
information), 683 – 684
EVwPI (expected value with perfect
information), 683 – 684
Excel OM:
accessing, 21
aggregate planning and, 553
break-even analysis and, 327
decision models and, 689 , 690
develop x-bar charts, p-charts,
c-charts, OC curves,
acceptance sampling and
process capability, 266
forecasting and, 143
inventory management and, 517
layout problems and, 393
learning curves and, 784
linear programming, 718
location problems and, 354
MRP and ERP and, 588 – 589
outsourcing problems, 51
project scheduling and, 89 , 90
queuing problems, 766
reliability and, 672
short-term scheduling and, 622 –
624GENERAL INDEX I13
simulation and, 801
transportation problems, 738 – 739 ,
738 – 7397
using and, A5
Excel Solver, 552–553, 706 , 713 –
714
Excel spreadsheets, creating your
own
aggregate planning, 552 – 553
break-even analysis, 327
control limits for c-chart, 266
creating your own spreadsheets,
21
decision models, 689 , 690
factor rating analysis, 52
forecasting, 142 – 143
inventory management, 516
linear programs, 716 – 717
location strategies, 354
outsourcing problems, 51
simulation, 800 – 801
transportation problems, 738
Exchange rates
reducing risk through
globalization, 33 – 34 , 342
Expected monetary value (EMV),
682 – 683
capacity decisions, 323
decision tree analysis, 684 – 686
Expected value:
of discrete probability distribution,
statistical tools and, T1 – 3
of perfect information (EVPI),
683 – 684
with perfect information, (EVwPI),
683 – 684
Experience differentiation, 38
Disney and, 38
Exponential smoothing
forecasting and, 116 – 117
smoothing constant, 116 – 117
trend adjustment and, 120 – 124
Extensions of MRP, 580 – 583
capacity planning, 581 – 583
closed loop, 581
material requirements planning II,
580 – 581
External failure costs, quality and,
218
F
Fabrication line, production-oriented
layout and, 386
Factor weighting technique, 477
Factor-rating method
location strategies and, 345 – 346
outsource providers, 47
Factors affecting location decisions
and, 341 – 344
costs, 342
currency risk, 342
exchange rates, 342
labor productivity, 342
political risks, 343
proximity to markets, 343
proximity to suppliers, 344
Faro Technologies, 264
Fast Track, 66
Fast-food restaurants
forecasting and, 140 – 141
repetitive process using modules,
283
Fatigue allowances, 422
Feasible region, 703
Feasible tour, T5 – 3
FedEx, 141 , 218
Global Company Profile, 338 – 339
customized warehouses, 377
logistics, 458
Feedback to operators, 417
Feed-mix problem, LP and, 711
Feigenbaum, Armand V., 219
Ferrari racing team, 224
FIFS (first in, first served), 751 n
Finance/accounting, OM and, 4
Finished-goods inventory, 491
Finite capacity scheduling (FCS),
597 , 617 – 618
Finite loading, 604
Finite-population waiting model,
749 , 763 – 765
First Simplex tableau, T3 – 2 to T3 – 4
First-come, first-served (FCFS)
system, 314 , 611 , 614
First-in, first-out (FIFO), 751 , 751 n
First-in, first-served (FIFS), 751 n
First-order smoothing, 124
Fish-bone chart, 227
Five forces analysis, 40
5 Ss, lean operations and, 639 ,
639 n
Fixed costs, break-even analysis and,
318
Fixed fees, 507
Fixed-charge integer programming
problem, 715
Fixed-period (P) inventory systems,
514 – 515
Fixed-position layout, 370 , 377 – 378
Fixed-quantity (Q) inventory system,
514
Flexibility, process strategy and,
288
Flexibility increased, JIT layout and,
643
Flexible manufacturing system
(FMS), 297
Flexible response, 39
Flexible workweek, 412
Flextronics, 45
Flow diagrams, 418 , 419
Flow time, 611
Flowcharts, 226 , 228 – 229 , 289
Flowers Bakery, 246
Focus forecasting, 139 – 140
Focused factory, 386
Focused processes, 287 – 288
Focused work center, 386
Food and Drug Administration, 203
Foot Locker, 586
Ford Motor Co., 175 , 198 , 447 , 646
Forecast error, measuring, 117 – 120
Forecasting, 105 – 166 . See also
Associative forecasting
methods; Time series forecasting
adaptive smoothing and, 139
approaches to, 111 – 112
associative methods, regression
& correlation analysis and,
131 – 137
bias and, 138
capacity and, 110
coefficient of determination and,
136
correlation coefficients for
regression lines and, 134 – 136
defined, 108
Delphi method and, 111
demand forecast and, 109
economic forecasts and, 109
fast food restaurants and, 140
focus forecasting and, 139 – 140
human resources and, 110
jury of executive opinion and,
111
linear regression analysis and,
131–136
market survey and, 111 – 112
monitoring and controlling
forecasts and, 138 – 140
multiple regression analysis and,
136 – 137
qualitative methods and,
111 – 112
quantitative method and, 112
regression analysis and, 131 – 137
service sector and, 140 – 141
seven steps in, 110 – 111
software in, 142 – 144
specialty retail shops and, 140
standard error of the estimate and,
133 – 134
strategic importance of, 109 – 110
supply chain management and,
109 – 110
technological forcasts and, 109
time horizons and, 108 – 109
types of, 109
using software and, 142 – 144
Formula approach, learning curves
and, 779
Formulating problems, LP and,
701 – 702
Forward integration, 448
Forward pass, 72 – 74
Forward scheduling, 603I14 GENERAL INDEX
Four process strategies, 282 – 288
mass customization focus, 284 –
285
process focus, 282 – 283
product focus, 284
repetitive focus, 283
Framework of PERT and CPM,
67 – 68
Franz Colruyt, low-cost strategy and,
38
Free slack, 75
Freezing schedule, 647
Frito-Lay
aggregate planning and, 530 – 531
Global Company Profile, 530–531
maintenance, 662 , 674
managing inventory, 525 – 526
operations management, 25
product focus, 284
statistical process control, 275
sustainability, 197 – 198 , 200 , 209 –
210
x-bar charts, 255
Fuji Heavy Industries, 30
Functional area, mission and, 36
Functionality, servicescapes and, 375
Functions of inventory, 490
Future time horizon, forecasting and,
108 – 109
G
Gantt charts, 607 – 608
load chart, 607
Microsoft Project view, 86 – 87
project scheduling and, 65
schedule chart, 607 – 608
Gap, 421 , 460
Gemba or Gemba walk, 651 , 655
General Electric, 30 , 195 , 219 , 221 ,
246
General Motors (GM), 164
Generating new products, 165 – 166
Geographic information systems
(GISs), location strategies and,
351 – 353
GeoMedia, 353
Giant Manufacturing Company, 447
Gillette, 162
Glidden Paints, 134
Global Aquaculture Alliance, 460
Global Company Profiles:
Alaska Airlines, 600 – 601
Amazon.com, 488 – 489
Arnold Palmer Hospital, 214 – 215
Bechtel Group, 60 – 61
Boeing Aircraft, 30 – 31
Darden Restaurants, 442 – 443
FedEx, 338 – 339
Frito-Lay, 530 – 531
Hard Rock Cafe, 2 – 3
Harley-Davidson, 280 – 281
McDonald’s, 368 – 369
NASCAR Racing Team, 408 – 409
Orlando Utilities Commission,
660 – 661
Regal Marine, 160 – 161
Toyota Motor Corp., 636 – 637
Walt Disney Parks and Resorts,
106 – 107
Wheeled Coach, 564 – 565
Global implications
impact of culture and ethics and,
35
quality and, 218
Global Insights, 110
Global operations. See Operations
strategy in a global
environment
Global operations strategy options,
49 – 50
Global strategy, 49
Global view of operations, supply
chains and, 32 – 35
attract and retain global talent and,
34 – 35
improve products and, 34
improve supply chain and, 33
reduce costs, 33
The Goal: A Process of Ongoing
Improvement (Goldratt and
Cox), 317 n
“Going green.” See Sustainability
GOL-Brazil


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