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Operations Management: An Integrated Approach, 5th Edition

Book Description

The 5th edition of Operations Management continues to incorporate more of a business/qualitative focus with less emphasis on a quantitative presentation to OM. This new edition is focused on offering more problem solving hints and tips as part of the solution to most examples and solved problems throughout the book.

New content changes include an increased coverage of sustainability. Each chapter has a new section that features information on how sustainability is impacting the topic of that chapter. There is a new second virtual case on Healthcare and operations management. More coverage of technology and technology examples via operations and supply chain management as well as many new/current examples such as JIT and how the automotive industry/supply chain was disrupted from the Japan earthquake.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. PREFACE
    1. GOALS OF THE BOOK
    2. ORGANIZATION AND CONTENT OF THE BOOK
    3. FEATURES OF THE BOOK
    4. OM ACROSS THE ORGANIZATION
    5. INTERACTIVE CASE Virtual Company
    6. TEACHING AND LEARNING RESOURCES
    7. ACKNOWLEDGMENTS
    8. SPECIAL THANKS
  5. ABOUT THE AUTHORS
  6. Contents
  7. CHAPTER 1: Introduction to Operations Management
    1. WHAT IS OPERATIONS MANAGEMENT?
    2. DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS
    3. OPERATIONS MANAGEMENT DECISIONS
    4. PLAN OF THIS BOOK
    5. HISTORICAL DEVELOPMENT
    6. TODAY'S OM ENVIRONMENT
    7. OPERATIONS MANAGEMENT IN PRACTICE
    8. WITHIN OM: HOW IT ALL FITS TOGETHER
    9. OM ACROSS THE ORGANIZATION
    10. THE SUPPLY CHAIN LINK
    11. THE SUSTAINABILITY LINK
    12. Chapter Highlights
    13. Key Terms
    14. Discussion Questions
    15. CASE: Hightone Electronics, Inc.
    16. CASE: Creature Care Animal Clinic (A)
    17. INTERACTIVE CASE Virtual Company: www.wiley.com/college/reid
    18. INTERNET CHALLENGE: Demonstrating Your Knowledge of OM
    19. Online Resources
    20. Selected Bibliography
  8. CHAPTER 2: Operations Strategy and Competitiveness
    1. THE ROLE OF OPERATIONS STRATEGY
    2. DEVELOPING A BUSINESS STRATEGY
    3. DEVELOPING AN OPERATIONS STRATEGY
    4. STRATEGIC ROLE OF TECHNOLOGY
    5. PRODUCTIVITY
    6. OPERATIONS STRATEGY WITHIN OM: HOW IT ALL FITS TOGETHER
    7. OPERATIONS STRATEGY ACROSS THE ORGANIZATION
    8. THE SUPPLY CHAIN LINK
    9. THE SUSTAINABILITY LINK
    10. Chapter Highlights
    11. Key Terms
    12. Formula Review
    13. Solved Problems
    14. Discussion Questions
    15. Problems
    16. CASE: Prime Bank of Massachusetts
    17. CASE: Boseman Oil and Petroleum (BOP)
    18. INTERACTIVE CASE Virtual Company
    19. INTERNET CHALLENGE Understanding Strategic Differences
    20. Online Resources
    21. Selected Bibliography
  9. CHAPTER 3: Product Design and Process Selection
    1. PRODUCT DESIGN
    2. THE PRODUCT DESIGN PROCESS
    3. FACTORS IMPACTING PRODUCT DESIGN
    4. PROCESS SELECTION
    5. DESIGNING PROCESSES
    6. PROCESS PERFORMANCE METRICS
    7. LINKING PRODUCT DESIGN AND PROCESS SELECTION
    8. TECHNOLOGY DECISIONS
    9. DESIGNING SERVICES
    10. PRODUCT DESIGN AND PROCESS SELECTION WITHIN OM: HOW IT ALL FITS TOGETHER
    11. PRODUCT DESIGN AND PROCESS SELECTION ACROSS THE ORGANIZATION
    12. THE SUPPLY CHAIN LINK
    13. THE SUSTAINABILITY LINK
    14. Chapter Highlights
    15. Key Terms
    16. Formula Review
    17. Solved Problems
    18. Discussion Questions
    19. Problems
    20. CASE: Biddy's Bakery (BB)
    21. CASE: Creature Care Animal Clinic (B)
    22. INTERACTIVE CASE Virtual Company
    23. INTERNET CHALLENGE Country Comfort Furniture
    24. Online Resources
    25. Selected Bibliography
  10. CHAPTER 4: Supply Chain Management
    1. WHAT IS A SUPPLY CHAIN?
    2. COMPONENTS OF A SUPPLY CHAIN FOR A MANUFACTURER
    3. THE BULLWHIP EFFECT
    4. SUPPLY CHAINS FOR SERVICE ORGANIZATIONS
    5. MAJOR ISSUES AFFECTING SUPPLY CHAIN MANAGEMENT
    6. THE ROLE OF PURCHASING
    7. SOURCING ISSUES
    8. SUPPLY CHAIN DISTRIBUTION
    9. IMPLEMENTING SUPPLY CHAIN MANAGEMENT
    10. SUPPLY CHAIN PERFORMANCE METRICS
    11. TRENDS IN SUPPLY CHAIN MANAGEMENT
    12. SUPPLY CHAIN MANAGEMENT WITHIN OM: HOW IT ALL FITS TOGETHER
    13. SCM ACROSS THE ORGANIZATION
    14. THE SUPPLY CHAIN LINK
    15. THE SUSTAINABILITY LINK
    16. Chapter Highlights
    17. Key Terms
    18. Formula Review
    19. Solved Problems
    20. Discussion Questions
    21. Problems
    22. CASE: Electronic Pocket Calendars Supply Chain Management Game
    23. CASE: Supply Chain Management at Durham International Manufacturing Company (DIMCO)
    24. INTERACTIVE CASE Virtual Company
    25. INTERNET CHALLENGE Global Shopping
    26. Online Resources
    27. Selected Bibliography
  11. CHAPTER 5: Total Quality Management
    1. DEFINING QUALITY
    2. COST OF QUALITY
    3. THE EVOLUTION OF TOTAL QUALITY MANAGEMENT (TQM)
    4. THE PHILOSOPHY OF TQM
    5. QUALITY AWARDS AND STANDARDS
    6. WHY TQM EFFORTS FAIL
    7. TOTAL QUALITY MANAGEMENT (TQM) WITHIN OM: HOW IT ALL FITS TOGETHER
    8. TOTAL QUALITY MANAGEMENT (TQM) ACROSS THE ORGANIZATION
    9. THE SUPPLY CHAIN LINK
    10. THE SUSTAINABILITY LINK
    11. Chapter Highlights
    12. Key Terms
    13. Formula Review
    14. Solved Problems
    15. Discussion Questions
    16. Problems
    17. CASE: Gold Coast Advertising (GCA)
    18. CASE: Delta Plastics, Inc. (A)
    19. INTERACTIVE CASE Virtual Company
    20. INTERNET CHALLENGE Synder Bakeries
    21. Online Resources
    22. Selected Bibliography
  12. CHAPTER 6: Statistical Quality Control
    1. WHAT IS STATISTICAL QUALITY CONTROL?
    2. SOURCES OF VARIATION: COMMON AND ASSIGNABLE CAUSES
    3. DESCRIPTIVE STATISTICS
    4. STATISTICAL PROCESS CONTROL METHODS
    5. CONTROL CHARTS FOR VARIABLES
    6. Using Mean and Range Charts Together
    7. CONTROL CHARTS FOR ATTRIBUTES
    8. P -Charts
    9. PROCESS CAPABILITY
    10. SIX SIGMA QUALITY
    11. ACCEPTANCE SAMPLING
    12. IMPLICATIONS FOR MANAGERS
    13. STATISTICAL QUALITY CONTROL IN SERVICES
    14. STATISTICAL QUALITY CONTROL (SQC) WITHIN OM: HOW IT ALL FITS TOGETHER
    15. STATISTICAL QUALITY CONTROL (SQC) ACROSS THE ORGANIZATION
    16. THE SUPPLY CHAIN LINK
    17. THE SUSTAINABILITY LINK
    18. Chapter Highlights
    19. Key Terms
    20. Formula Review
    21. Solved Problems
    22. Discussion Questions
    23. Problems
    24. CASE: Scharadin Hotels
    25. CASE: Delta Plastics, Inc. (B)
    26. INTERACTIVE CASE Virtual Company
    27. INTERNET CHALLENGE Safe-Air
    28. Selected Bibliography
  13. CHAPTER 7: Just-in-Time and Lean Systems
    1. THE PHILOSOPHY OF JIT
    2. ELEMENTS OF JIT
    3. JUST-IN-TIME MANUFACTURING
    4. TOTAL QUALITY MANAGEMENT
    5. RESPECT FOR PEOPLE
    6. BENEFITS OF JIT
    7. IMPLEMENTING JIT
    8. JIT IN SERVICES
    9. JIT AND LEAN SYSTEMS WITHIN OM: HOW IT ALL FITS TOGETHER
    10. JIT AND LEAN SYSTEMS ACROSS THE ORGANIZATION
    11. THE SUPPLY CHAIN LINK
    12. THE SUSTAINABILITY LINK
    13. Chapter Highlights
    14. Key Terms
    15. Formula Review
    16. Solved Problems
    17. Discussion Questions
    18. Problems
    19. CASE: Katz Carpeting
    20. CASE: Dixon Audio Systems
    21. INTERACTIVE CASE Virtual Company
    22. INTERNET CHALLENGE Truck-Fleet, Inc.
    23. Online Resources
    24. Selected Bibliography
  14. CHAPTER 8: Forecasting
    1. PRINCIPLES OF FORECASTING
    2. STEPS IN THE FORECASTING PROCESS
    3. TYPES OF FORECASTING METHODS
    4. TIME SERIES MODELS
    5. CAUSAL MODELS
    6. MEASURING FORECAST ACCURACY
    7. SELECTING THE RIGHT FORECASTING MODEL
    8. FORECASTING SOFTWARE
    9. FOCUS FORECASTING
    10. COMBINING FORECASTS
    11. COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT (CPFR)
    12. FORECASTING WITHIN OM: HOW IT ALL FITS TOGETHER
    13. FORECASTING ACROSS THE ORGANIZATION
    14. THE SUPPLY CHAIN LINK
    15. THE SUSTAINABILITY LINK
    16. Chapter Highlights
    17. Key Terms
    18. Formula Review
    19. Solved Problems
    20. Discussion Questions
    21. Problems
    22. CASE: Bram-Wear
    23. CASE: The Emergency Room (ER) at Northwest General (A)
    24. INTERACTIVE CASE Virtual Company
    25. INTERNET CHALLENGE On-line Data Access
    26. Online Resources
    27. Selected Bibliography
  15. CHAPTER 9: Capacity Planning and Facility Location
    1. CAPACITY PLANNING
    2. MAKING CAPACITY PLANNING DECISIONS
    3. Develop Capacity Alternatives
    4. DECISION TREES
    5. LOCATION ANALYSIS
    6. MAKING LOCATION DECISIONS
    7. CAPACITY PLANNING AND FACILITY LOCATION WITHIN OM: HOW IT ALL FITS TOGETHER
    8. CAPACITY PLANNING AND FACILITY LOCATION ACROSS THE ORGANIZATION
    9. THE SUPPLY CHAIN LINK
    10. THE SUSTAINABILITY LINK
    11. Chapter Highlights
    12. Key Terms
    13. Formula Review
    14. Solved Problems
    15. Discussion Questions
    16. Problems
    17. CASE: Data Tech, Inc.
    18. CASE: The Emergency Room (ER) at Northwest General (B)
    19. INTERACTIVE CASE Virtual Company
    20. INTERNET CHALLENGE EDS Office Supplies, Inc.
    21. Online Resources
    22. Selected Bibliography
  16. CHAPTER 10: Facility Layout
    1. WHAT IS LAYOUT PLANNING?
    2. TYPES OF LAYOUTS
    3. DESIGNING PROCESS LAYOUTS
    4. Step 2: Develop a Block Plan
    5. SPECIAL CASES OF PROCESS LAYOUT
    6. DESIGNING PRODUCT LAYOUTS
    7. GROUP TECHNOLOGY (CELL) LAYOUTS
    8. FACILITY LAYOUT WITHIN OM: HOW IT ALL FITS TOGETHER
    9. FACILITY LAYOUT ACROSS THE ORGANIZATION
    10. THE SUPPLY CHAIN LINK
    11. THE SUSTAINABILITY LINK
    12. Chapter Highlights
    13. Key Terms
    14. Formula Review
    15. Solved Problems
    16. Discussion Questions
    17. Problems
    18. CASE: Sawhill Athletic Club (A)
    19. CASE: Sawhill Athletic Club (B)
    20. INTERACTIVE CASE Virtual Company
    21. INTERNET CHALLENGE DJ and Associates, Inc.
    22. Online Resources
    23. Selected Bibliography
  17. CHAPTER 11: Work System Design
    1. DESIGNING A WORK SYSTEM
    2. JOB DESIGN
    3. METHODS ANALYSIS
    4. THE WORK ENVIRONMENT
    5. WORK MEASUREMENT
    6. COMPENSATION
    7. LEARNING CURVES
    8. WORK SYSTEM DESIGN WITHIN OM: HOW IT ALL FITS TOGETHER
    9. WORK SYSTEM DESIGN ACROSS THE ORGANIZATION
    10. THE SUPPLY CHAIN LINK
    11. THE SUSTAINABILITY LINK
    12. Chapter Highlights
    13. Key Terms
    14. Formula Review
    15. Discussion Questions
    16. Problems
    17. CASE: The Navigator III
    18. CASE: Northeast State University
    19. INTERACTIVE CASE Virtual Company
    20. INTERNET CHALLENGE E-Commerce Job Design
    21. Online Resources
    22. Selected Bibliography
  18. CHAPTER 12: Inventory Management
    1. TYPES OF INVENTORY
    2. HOW COMPANIES USE THEIR INVENTORY
    3. OBJECTIVES OF INVENTORY MANAGEMENT
    4. RELEVANT INVENTORY COSTS
    5. ABC INVENTORY CLASSIFICATION
    6. INVENTORY RECORD ACCURACY
    7. INVENTORY IN SERVICE ORGANIZATIONS
    8. DETERMINING ORDER QUANTITIES
    9. MATHEMATICAL MODELS FOR DETERMINING ORDER QUANTITY
    10. WHY COMPANIES DON'T ALWAYS USE THE OPTIMAL ORDER QUANTITY
    11. JUSTIFYING SMALLER ORDER QUANTITIES
    12. DETERMINING SAFETY STOCK LEVELS
    13. PERIODIC REVIEW SYSTEM
    14. THE SINGLE-PERIOD INVENTORY MODEL
    15. INVENTORY MANAGEMENT WITHIN OM: HOW IT ALL FITS TOGETHER
    16. INVENTORY MANAGEMENT ACROSS THE ORGANIZATION
    17. THE SUPPLY CHAIN LINK
    18. THE SUSTAINABILITY LINK
    19. Chapter Highlights
    20. Key Terms
    21. Formula Review
    22. Solved Problems
    23. Discussion Questions
    24. Problems
    25. CASE: FabQual Ltd.
    26. CASE: Kayaks!Incorporated
    27. INTERACTIVE CASE Virtual Company
    28. INTERNET CHALLENGE Community Fund-Raiser (A)
    29. Online Resources
    30. Selected Bibliography
  19. CHAPTER 13: Aggregate Planning
    1. THE ROLE OF AGGREGATE PLANNING
    2. TYPES OF AGGREGATE PLANS
    3. AGGREGATE PLANNING OPTIONS
    4. EVALUATING THE CURRENT SITUATION
    5. DEVELOPING THE AGGREGATE PLAN
    6. AGGREGATE PLANS FOR COMPANIES WITH TANGIBLE PRODUCTS
    7. AGGREGATE PLANS FOR SERVICE COMPANIES WITH NONTANGIBLE PRODUCTS
    8. AGGREGATE PLANNING WITHIN OM: HOW IT ALL FITS TOGETHER
    9. AGGREGATE PLANNING ACROSS THE ORGANIZATION
    10. THE SUPPLY CHAIN LINK
    11. THE SUSTAINABILITY LINK
    12. Chapter Highlights
    13. Key Terms
    14. Solved Problems
    15. Discussion Questions
    16. Problems
    17. CASE: Newmarket International Manufacturing Company (A)
    18. CASE: JPC, Inc.: Kitchen Countertops Manufacturer
    19. INTERACTIVE CASE Virtual Company
    20. INTERNET CHALLENGE Cruising
    21. Online Resources
    22. Selected Bibliography
  20. CHAPTER 14: Resource Planning
    1. ENTERPRISE RESOURCE PLANNING
    2. THE EVOLUTION OF ERP
    3. THE BENEFITS OF ERP
    4. THE COST OF ERP SYSTEMS
    5. MATERIAL PLANNING SYSTEMS
    6. AN OVERVIEW OF MRP
    7. TYPES OF DEMAND
    8. OBJECTIVES OF MRP
    9. MRP INPUTS
    10. THE MRP EXPLOSION PROCESS
    11. ACTION NOTICES
    12. COMPARISON OF LOT SIZE RULES
    13. THE ROLE OF CAPACITY REQUIREMENTS PLANNING (CRP)
    14. RESOURCE PLANNING WITHIN OM: HOW IT ALL FITS TOGETHER
    15. RESOURCE PLANNING ACROSS THE ORGANIZATION
    16. THE SUPPLY CHAIN LINK
    17. THE SUSTAINABILITY LINK
    18. Chapter Highlights
    19. Key Terms
    20. Formula Review
    21. Discussion Questions
    22. Problems
    23. CASE: Newmarket International Manufacturing Company (B)
    24. CASE: Desserts by J.B.
    25. INTERACTIVE CASE Virtual Company
    26. INTERNET CHALLENGE The Gourmet Dinner
    27. Online Resources
    28. Selected Bibliography
  21. CHAPTER 15: Scheduling
    1. SCHEDULING OPERATIONS
    2. HIGH-VOLUME OPERATIONS
    3. LOW-VOLUME OPERATIONS
    4. SCHEDULING WORK
    5. HOW TO SEQUENCE JOBS
    6. COMPARING PRIORITY RULES
    7. SEQUENCING JOBS THROUGH TWO WORK CENTERS
    8. SCHEDULING BOTTLENECKS
    9. THEORY OF CONSTRAINTS
    10. SCHEDULING FOR SERVICE ORGANIZATIONS
    11. DEVELOPING A WORKFORCE SCHEDULE
    12. SCHEDULING WITHIN OM: PUTTING IT ALL TOGETHER
    13. SCHEDULING ACROSS THE ORGANIZATION
    14. THE SUPPLY CHAIN LINK
    15. THE SUSTAINABILITY LINK
    16. Chapter Highlights
    17. Key Terms
    18. Formula Review
    19. Solved Problems (See student companion site for Excel template.)
    20. Discussion Questions
    21. Problems
    22. CASE: Air Traffic Controller School (ATCS)
    23. CASE: Scheduling at Red, White, and Blue Fireworks Company
    24. INTERACTIVE CASE Virtual Company www.wiley.com/college/reid
    25. INTERNET CHALLENGE Batter Up
    26. Online Resources
    27. Selected Bibliography
  22. CHAPTER 16: Project Management
    1. PROJECT LIFE CYCLE
    2. NETWORK PLANNING TECHNIQUES
    3. ESTIMATING THE PROBABILITY OF COMPLETION DATES
    4. REDUCING PROJECT COMPLETION TIME
    5. THE CRITICAL CHAIN APPROACH
    6. PROJECT MANAGEMENT WITHIN OM: HOW IT ALL FITS TOGETHER
    7. PROJECT MANAGEMENT OM ACROSS THE ORGANIZATION
    8. THE SUPPLY CHAIN LINK
    9. THE SUSTAINABILITY LINK
    10. Chapter Highlights
    11. Key Terms
    12. Formula Review
    13. Discussion Questions
    14. Problems
    15. CASE: The Research Office Moves
    16. CASE: Writing a Textbook
    17. INTERACTIVE CASE Virtual Company www.wiley.com/college/reid
    18. INTERNET CHALLENGE Creating Memories
    19. Online Resources
    20. Selected Bibliography
  23. APPENDIX A: Solutions to Odd-Numbered Problems
  24. APPENDIX B: The Standard Normal Distribution
  25. APPENDIX C: P -Chart
  26. NAME INDEX
  27. SUBJECT INDEX
  28. SUPPLEMENT A: Spreadsheet Modeling: An Introduction
    1. WHAT ARE MODELS?
    2. THE SPREADSHEET MODELING PROCESS
    3. EVALUATING SPREADSHEET MODELS
    4. USEFUL SPREADSHEET TIPS
    5. IMPORTANT EXCEL FORMULAS
    6. SPREADSHEET MODELING WITHIN OM: HOW IT ALL FITS TOGETHER
    7. Supplement Highlights
    8. Key Terms
    9. Discussion Questions
    10. Problems
    11. CASE: Diet Planning
    12. Online Resources
    13. Selected Bibliography
  29. SUPPLEMENT B: Introduction to Optimization
    1. INTRODUCTION
    2. ALGEBRAIC FORMULATION
    3. Examining the Formulation
    4. SPREADSHEET MODEL DEVELOPMENT
    5. SOLVER BASICS
    6. SETTING UP AND RUNNING SOLVER
    7. INTERPRETING THE SOLUTION
    8. SOLVER SOLUTION REPORTS
    9. RECAP
    10. OUTCOMES OF LINEAR PROGRAMMING PROBLEMS
    11. OPTIMIZATION WITHIN OM: HOW IT ALL FITS TOGETHER
    12. Supplement Highlights
    13. Key Terms
    14. Solved Problems (See student companion site for Excel template.)
    15. Discussion Questions
    16. Problems
    17. CASE: Exeter Enterprises
    18. Online Resources
    19. Selected Bibliography
  30. SUPPLEMENT C: Waiting Line Models
    1. ELEMENTS OF WAITING LINES
    2. WAITING LINE PERFORMANCE MEASURES
    3. SINGLE-SERVER WAITING LINE MODEL
    4. MULTISERVER WAITING LINE MODEL
    5. CHANGING OPERATIONAL CHARACTERISTICS
    6. LARGER-SCALE WAITING LINE SYSTEMS
    7. WAITING LINE MODELS WITHIN OM: HOW IT ALL FITS TOGETHER
    8. Supplement Highlights
    9. Key Terms
    10. Formula Review
    11. Solved Problems (See student companion site for Excel template.)
    12. Discussion Questions
    13. Problems
    14. CASE: The Copy Center Holdup
    15. Online Resources
    16. Selected Bibliography
  31. SUPPLEMENT D: Master Scheduling and Rough-Cut Capacity Planning
    1. MASTER PRODUCTION SCHEDULING
    2. MPS AS A BASIS OF COMMUNICATION
    3. OBJECTIVES OF MASTER SCHEDULING
    4. DEVELOPING AN MPS
    5. ROUGH-CUT CAPACITY PLANNING
    6. EVALUATING AND ACCEPTING THE MPS
    7. USING THE MPS
    8. USING THE ATP RECORDS
    9. STABILIZING THE MPS
    10. MASTER PRODUCTION SCHEDULING AND ROUGH-CUT CAPACITY PLANNING WITHIN OM: HOW IT ALL FITS TOGETHER
    11. Supplement Highlights
    12. Key Terms
    13. Formula Review
    14. Solved Problems
    15. Discussion Questions
    16. Problems
    17. CASE: Newmarket International Manufacturing Company (C)
    18. Online Resources
    19. Selected Bibliography