Operations Management: Sustainability and Supply Chain Management 9789332586703, 9780134130422, 9789332584266, 9789353062965, 0134130421

Table of contents :
Cover......Page 1
About Pearson......Page 2
Title......Page 4
Copyright......Page 5
Dedication......Page 6
About the Authors......Page 7
Brief Table of Contents......Page 9
Table of Contents......Page 10
Preface......Page 20
Preface to the Indian Edition......Page 28
Product-by-Value Analysis......Page 32
Global Company profile: harD rock caFe......Page 33
Organizing to Produce Goods and Services......Page 35
Why Study OM?......Page 37
What Operations Managers Do......Page 39
The Heritage of Operations Management......Page 40
Operations for Goods and Services......Page 43
Service Pay......Page 44
The Productivity Challenge......Page 45
Productivity Measurement......Page 47
Productivity Variables......Page 48
Productivity and the Service Sector......Page 51
Current Challenges in Operations Management......Page 52
Ethics, Social Responsibility, and Sustainability......Page 53
Discussion Questions......Page 54
Using Software for Productivity Analysis......Page 55
Problems......Page 56
Endnotes......Page 59
Self Test......Page 60
Chapter 2 Operations Strategy in a Global Environment......Page 62
Global Company profile: BoeinG......Page 63
A Global View of Operations and Supply Chains......Page 65
Strategy......Page 69
Competing on Differentiation......Page 70
Competing on Cost......Page 72
Issues in Operations Strategy......Page 73
Key Success Factors and Core Competencies......Page 76
Integrating OM with Other Activities......Page 77
Strategic Planning, Core Competencies, and Outsourcing......Page 79
Risks of Outsourcing......Page 81
Rating Outsource Providers......Page 83
Global Operations Strategy Options......Page 84
Key Terms......Page 86
Discussion Questions......Page 87
Using Software to Solve Outsourcing Problems......Page 88
Solved Problems......Page 89
Problems......Page 90
Juniper Networks to Benefit From Digital India Programme......Page 92
Self Test......Page 93
Chapter 3 Project Management......Page 94
Global Company Profile: Bechtel Group......Page 95
Project Planning......Page 97
The Project Manager......Page 98
Work Breakdown Structure......Page 99
Project Scheduling......Page 100
Project Controlling......Page 101
The Framework of PERT and CPM......Page 103
Network Diagrams and Approaches......Page 104
Activity-on-Node Example......Page 105
Activity-on-Arrow Example......Page 107
Determining the Project Schedule......Page 108
Forward Pass......Page 109
Backward Pass......Page 110
Calculating Slack Time and Identifying the Critical Path(s)......Page 112
Variability in Activity Times......Page 114
Three Time Estimates in PERT......Page 115
Probability of Project Completion......Page 117
Cost-Time Trade-Offs and Project Crashing......Page 120
Using Microsoft Project to Manage Projects......Page 124
Key Terms......Page 128
Discussion Questions......Page 129
Solved Problems......Page 130
Problems......Page 133
Southwestern University: (A)*......Page 140
Agra-Lucknow Expressway......Page 141
Self Test......Page 142
Chapter 4 Forecasting......Page 144
Global Company Profile: Walt Disney Parks & Resorts......Page 145
Forecasting Time Horizons......Page 147
Types of Forecasts......Page 148
Capacity......Page 149
Seven Steps in the Forecasting System......Page 150
Overview of Quantitative Methods......Page 151
Decomposition of a Time Series......Page 152
Naive Approach......Page 153
Moving Averages......Page 154
Exponential Smoothing......Page 157
Measuring Forecast Error......Page 158
Exponential Smoothing with Trend Adjustment......Page 161
Trend Projections......Page 165
Seasonal Variations in Data......Page 168
Cyclical Variations in Data......Page 173
Using Regression Analysis for Forecasting......Page 174
Standard Error of the Estimate......Page 176
Correlation Coefficients for Regression Lines......Page 178
Multiple-Regression Analysis......Page 179
Monitoring and Controlling Forecasts......Page 181
Focus Forecasting......Page 183
Forecasting in the Service Sector......Page 184
Summary......Page 185
Discussion Questions......Page 186
Using Software in Forecasting......Page 187
Solved Problems......Page 188
Problems......Page 191
Southwestern University: (B)......Page 199
Estimating Bandwidth of Wi-Fi in Rural India......Page 200
Self Test......Page 201
Chapter 5 Design of Goods and Services......Page 202
Global Company Profile: Regal Marine......Page 203
Goods and Services Selection......Page 205
Product Strategy Options Support Competitive Advantage......Page 206
Product Life Cycles......Page 207
Life Cycle and Strategy......Page 208
Generating New Products......Page 209
Product Development System......Page 210
Quality Function Deployment (QFD)......Page 211
Organizing for Product Development......Page 213
Robust Design......Page 214
Computer-Aided Design (CAD) and Computer- Aided Manufacturing (CAM)......Page 215
Virtual Reality Technology......Page 216
Product Development Continuum......Page 217
Purchasing Technology by Acquiring a Firm......Page 218
Alliances......Page 219
Defining a Product......Page 220
Make-or-Buy Decisions......Page 221
Documents for Production......Page 222
Product Life-Cycle Management (PLM)......Page 223
Process–Chain–Network (PCN) Analysis......Page 224
Adding Service Efficiency......Page 226
Application of Decision Trees to Product Design......Page 227
Transition to Production......Page 229
Key Terms......Page 230
Discussion Questions......Page 231
Solved Problem......Page 232
Problems......Page 233
De Mar’s Product Strategy......Page 235
Endnotes......Page 236
Self Test......Page 237
Supplement 5 Sustainability in the Supply Chain......Page 238
Corporate Social Responsibility......Page 239
Commons......Page 240
Triple Bottom Line......Page 241
Product Design......Page 244
Production Process......Page 246
Logistics......Page 247
End-of-Life Phase......Page 249
Regulations and Industry Standards......Page 250
International Environmental Policies and Standards......Page 251
Solved Problems......Page 253
Problems......Page 255
Self Test......Page 257
Chapter 6 Managing Quality......Page 258
Global Company Profile: Arnold Palmer Hospital......Page 259
Quality and Strategy......Page 261
Defining Quality......Page 262
ISO 0 International Quality Standards......Page 263
Cost of Quality (COQ)......Page 264
Total Quality Management......Page 265
Six Sigma......Page 266
Employee Empowerment......Page 267
Benchmarking......Page 268
Taguchi Concepts......Page 270
Knowledge of TQM Tools......Page 271
Check Sheets......Page 272
Cause-and-Effect Diagrams......Page 273
Pareto Charts......Page 274
Flowcharts......Page 275
Statistical Process Control (SPC)......Page 276
When and Where to Inspect......Page 277
Service Industry Inspection......Page 278
TQM in Services......Page 280
Discussion Questions......Page 283
Problems......Page 284
Southwestern University: (C)......Page 287
Six Sigma in an Indian University Library......Page 288
Self Test......Page 290
Supplement 6 Statistical Process Control......Page 292
Statistical Process Control (SPC)......Page 293
Control Charts for Variables......Page 295
The Central Limit Theorem......Page 296
Setting Mean Chart Limits ( x-Charts)......Page 297
Setting Range Chart Limits ( R-Charts)......Page 299
Using Mean and Range Charts......Page 301
Control Charts for Attributes......Page 304
Managerial Issues and Control Charts......Page 308
Process Capability......Page 309
Process Capability Index (Cpk )......Page 310
Acceptance Sampling......Page 312
Operating Characteristic Curve......Page 313
Average Outgoing Quality......Page 314
Using Software for SPC......Page 316
Solved Problems......Page 317
Problems......Page 319
Bayfield Mud Company......Page 325
Endnotes......Page 326
Self Test......Page 327
Chapter 7 Process Strategy......Page 328
Global Company Profile: Harley-Davidson......Page 329
Four Process Strategies......Page 331
Process Focus......Page 332
Mass Customization Focus......Page 333
Process Comparison......Page 335
Selection of Equipment......Page 338
Process Analysis and Design......Page 339
Process Charts......Page 340
Value-Stream Mapping......Page 341
Service Blueprinting......Page 343
Special Considerations for Service Process Design......Page 344
Machine Technology......Page 346
Vision Systems......Page 347
Flexible Manufacturing Systems (FMSs)......Page 348
Computer-Integrated Manufacturing (CIM)......Page 349
Process Redesign......Page 350
Summary......Page 351
Discussion Questions......Page 352
Problems......Page 353
Value Stream Mapping (VSM) for Lean Implementation in Indian Firm......Page 355
Self Test......Page 356
Supplement 7 Capacity and Constraint Management......Page 358
Capacity......Page 359
Design and Effective Capacity......Page 360
Managing Demand......Page 363
Service-Sector Demand and Capacity Management......Page 365
Bottleneck Analysis and the Theory of Constraints......Page 366
Bottleneck Management......Page 370
Break-Even Analysis......Page 371
Single-Product Case......Page 372
Multiproduct Case......Page 373
Reducing Risk with Incremental Changes......Page 375
Applying Expected Monetary Value (EMV) to Capacity Decisions......Page 376
Investment, Variable Cost, and Cash Flow......Page 377
Net Present Value......Page 378
Using Software for Break-Even Analysis......Page 381
Solved Problems......Page 382
Problems......Page 385
Endnote......Page 389
Self Test......Page 390
Chapter 8 Location Strategies......Page 392
Global Company Profile: Fedex......Page 393
The Strategic Importance of Location......Page 395
Labor Productivity......Page 396
Costs......Page 398
Proximity to Competitors (Clustering)......Page 399
The Factor-Rating Method......Page 400
Locational Cost–Volume Analysis......Page 402
Center-of-Gravity Method......Page 404
Service Location Strategy......Page 406
Geographic Information Systems......Page 407
Summary......Page 410
Discussion Questions......Page 411
Solved Problems......Page 412
Problems......Page 414
D-Mart Emerged as Top Retailer......Page 420
Self Test......Page 421
Chapter 9 Layout Strategies......Page 422
Global Company Profile: Mcdonald’s......Page 423
The Strategic Importance of Layout Decisions......Page 425
Types of Layout......Page 426
Office Layout......Page 427
Retail Layout......Page 429
Servicescapes......Page 430
Warehouse and Storage Layouts......Page 431
Random Stocking......Page 432
Fixed-Position Layout......Page 433
Process-Oriented Layout......Page 435
Computer Software for Process-Oriented Layouts......Page 439
Work Cells......Page 440
Requirements of Work Cells......Page 441
Staffing and Balancing Work Cells......Page 442
The Focused Work Center and the Focused Factory......Page 443
Repetitive and Product-Oriented Layout......Page 444
Assembly-Line Balancing......Page 445
Ethical Dilemma......Page 450
Problems......Page 451
State Automobile License Renewals......Page 461
Traditional Retail Stores go for a Modern Makeover in India......Page 462
Self Test......Page 463
Chapter 10 Human Resources, Job Design, and Work Measurement......Page 464
Global Company Profile: Rusty Wallace’s Nascar Racing Team......Page 465
Constraints on Human Resource Strategy......Page 467
Employment-Stability Policies......Page 468
Job Classifications and Work Rules......Page 469
Job Expansion......Page 470
Self-Directed Teams......Page 471
Motivation and Incentive Systems......Page 473
Ergonomics and the Work Environment......Page 474
Methods Analysis......Page 476
The Visual Workplace......Page 478
Labor Standards......Page 479
Time Studies......Page 480
Predetermined Time Standards......Page 485
Work Sampling......Page 488
Key Terms......Page 491
Discussion Questions......Page 492
Solved Problems......Page 493
Problems......Page 496
Endnotes......Page 500
Self Test......Page 501
Chapter 11 Supply Chain Management......Page 502
Global Company Profile: Darden Restaurants......Page 503
The Supply Chain’s Strategic Importance......Page 505
Make-or-Buy Decisions......Page 507
Many Suppliers......Page 508
Vertical Integration......Page 509
Virtual Companies......Page 510
Supply Chain Risk......Page 511
Risks and Mitigation Tactics......Page 512
Managing the Integrated Supply Chain......Page 513
Opportunities in Managing the Integrated Supply Chain......Page 514
Supplier Development......Page 517
Centralized Purchasing......Page 518
E-Procurement......Page 519
Shipping Systems......Page 520
Warehousing......Page 521
Distribution Management......Page 522
Ethics and Sustainable Supply Chain Management......Page 523
Establishing Sustainability in Supply Chains......Page 524
Assets Committed to Inventory......Page 525
The SCOR Model......Page 528
Key Terms......Page 529
Solved Problems......Page 530
Problems......Page 531
PinkBlue.in An Integrated Supply Chain Solution......Page 532
Self Test......Page 533
Supplement 11 Supply Chain Management Analytics......Page 534
Evaluating Disaster Risk in the Supply Chain......Page 535
Managing the Bullwhip Effect......Page 537
A Bullwhip Effect Measure......Page 539
Supplier Selection Analysis......Page 540
Transportation Mode Analysis......Page 541
Warehouse Storage......Page 543
Solved Problems......Page 544
Problems......Page 547
Self Test......Page 550
Chapter 12 Inventory Management......Page 552
Global Company Profile: Amazon.com......Page 553
Functions of Inventory......Page 555
ABC Analysis......Page 556
Record Accuracy......Page 558
Cycle Counting......Page 559
Control of Service Inventories......Page 560
Independent vs. Dependent Demand......Page 561
Inventory Models for Independent Demand......Page 562
Minimizing Costs......Page 563
Reorder Points......Page 568
Production Order Quantity Model......Page 570
Quantity Discount Models......Page 572
Probabilistic Models and Safety Stock......Page 576
Other Probabilistic Models......Page 580
Single-Period Model......Page 582
Fixed-Period (P) Systems......Page 584
Discussion Questions......Page 585
Using Software to Solve Inventory Problems......Page 586
Solved Problems......Page 587
Problems......Page 590
Zhou Bicycle Company......Page 596
Inventory Management in Rural Public Health Facilities in Udupi District......Page 597
Self Test......Page 598
Chapter 13 Aggregate Planning and S&OP......Page 600
Global Company Profile: Frito-Lay......Page 601
The Planning Process......Page 603
Sales and Operations Planning......Page 604
The Nature of Aggregate Planning......Page 605
Capacity Options......Page 607
Demand Options......Page 608
Mixing Options to Develop a Plan......Page 609
Graphical Methods......Page 610
Mathematical Approaches......Page 616
Aggregate Planning in Services......Page 618
Miscellaneous Services......Page 619
Revenue Management......Page 621
Ethical Dilemma......Page 624
Using Software for Aggregate Planning......Page 625
Solved Problems......Page 627
Problems......Page 629
Dynamic Pricing Introduced in Indian Railways......Page 634
Self Test......Page 635
Chapter 14 Material Requirements Planning (MRP) and ERP......Page 636
Global Company Profile: Wheeled Coach......Page 637
Dependent Inventory Model Requirements......Page 639
Master Production Schedule......Page 640
Bills of Material......Page 641
Lead Times for Components......Page 644
MRP Structure......Page 645
MRP Dynamics......Page 649
Lot-Sizing Techniques......Page 650
Material Requirements Planning II (MRP II)......Page 654
Capacity Planning......Page 656
MRP in Services......Page 658
Enterprise Resource Planning (ERP)......Page 659
ERP in the Service Sector......Page 661
Summary......Page 662
Discussion Questions......Page 663
Solved Problems......Page 664
Problems......Page 667
Endnotes......Page 671
Self Test......Page 672
Chapter 15 Short-Term Scheduling......Page 674
Global Company Profile: Alaska Airlines......Page 675
The Importance of Short-Term Scheduling......Page 677
Scheduling Issues......Page 678
Forward and Backward Scheduling......Page 679
Scheduling Process-Focused Facilities......Page 680
Input–Output Control......Page 681
Gantt Charts......Page 683
Assignment Method......Page 684
Priority Rules for Sequencing Jobs......Page 687
Critical Ratio......Page 691
Sequencing N Jobs on Two Machines: Johnson’s Rule......Page 692
Finite Capacity Scheduling (FCS)......Page 694
Scheduling Services......Page 695
Scheduling Service Employees with Cyclical Scheduling......Page 697
Key Terms......Page 699
Solved Problems......Page 700
Problems......Page 703
Old Oregon Wood Store......Page 707
Self Test......Page 708
Chapter 16 Lean Operations......Page 710
Global Company Profile: Toyota Motor Corporation......Page 711
Eliminate Waste......Page 713
Improve Throughput......Page 715
Supplier Partnerships......Page 716
Lean Layout......Page 718
Lean Inventory......Page 719
Lean Scheduling......Page 722
Continuous Improvement......Page 726
Processes and Standard Work Practice......Page 727
Building a Lean Organization......Page 728
Lean in Services......Page 729
Discussion Questions......Page 731
Problems......Page 732
Endnote......Page 734
Self Test......Page 735
Chapter 17 Maintenance and Reliability......Page 736
Global Company Profile: Orlando Utilities Commission......Page 737
The Strategic Importance of Maintenance and Reliability......Page 739
System Reliability......Page 740
Providing Redundancy......Page 743
Implementing Preventive Maintenance......Page 745
Autonomous Maintenance......Page 749
Key Terms......Page 750
Solved Problems......Page 751
Problems......Page 752
Total Productive Maintenance Implementation in an Indian Tube Mills......Page 754
Self Test......Page 755
Appendix......Page 756
Bibliography......Page 774
Name Index......Page 782
General Index......Page 786