Operations Management – Sustainability and Supply Chain Management

Operations Management – Sustainability and Supply Chain Management
اسم المؤلف
Jay Heizer, Barry Render, Chuck Munson
التاريخ
8 أغسطس 2021
المشاهدات
التقييم
(لا توجد تقييمات)
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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
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 www.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, 257
    Goods, differences from services, 11
    Goods and services selection
    design of, 162 – 165
    importance of, 162
    life cycle and strategy, 164 – 165
    operations and, 11 – 13
    product decision, 163
    product life cycles, 164
    product strategy options, 163 – 164
    product-by-value analysis, 165
    Graphic approach, break-even
    analysis and, 319 – 320
    Graphical methods for aggregate
    scheduling, 538 – 543
    Graphical representation of
    constraints, LP and, 702 – 705
    Graphical solution to LP problem,
    702 – 705
    Graphical techniques, 538 – 543
    Great Ormond Street Hospital, 223 ,
    224
    Greenhouse gas (GHG) emissions,
    204
    Greenlist classification, 196
    Gross material requirements plan,
    MRP and, 571 – 572
    Group technology, 177
    Growth of services, OM and,
    11 – 12
    Growth phase, product life cycle and,
    165
    H
    Hafei Aviation, 30
    Haier, globalization and, 32
    Hallmark, 385 – 386
    Hansel, 651
    Hard Rock Cafe
    Global Company Profile, 2 – 3
    experience differentiation, 38
    forecasting, 155 – 156
    global strategy, 55 – 56
    human resource strategy, 415 , 438
    layout strategy, 375
    location strategy, 363 – 364
    operations management in services,
    25 – 26
    Pareto charts and, 228
    portion-control standard, 176 ,
    177
    project management, 77 , 100 – 102
    scheduling, 632
    supply chain, 450
    Hard Rock Hotel, 232
    Harley-Davidson, 289
    Global Company Profile, 280 – 281
    Hawthorne studies, 413
    Heart surgery learning curve, 776 ,
    778
    Heijunka, 647 , 651
    Heinz, 49
    Heritage of OM, 8 – 10
    Hershey, 172
    Hertz Car Rental, 730
    Heuristic, assembly-line balancing
    and, 389
    Hewlett-Packard, 39 , 46 , 173
    supply chain management, 453
    Histogram, 226
    Historical experience, labor standards
    and, 421
    Holding costs, 495
    Home Depot
    inventory management, 461 , 463
    use of GIS system, 353
    Honda, 42 , 172
    supply chain risks and tactics,
    450
    Hong Kong, SEATO and, 34
    Hospitals. See also Arnold Palmer
    Hospital
    accident avoidance, 232
    benchmarking handoffs, 224
    differentiation, 163 – 164
    emergency room process layout,
    379
    forecasting, 129 – 130
    inventory management, 652
    lean operations, 651
    learning curve, 776 , 778
    MRP and, 584
    operating room traffic jams, 415
    process strategy, 284
    quality management, 223 , 224GENERAL INDEX I15
    scheduling services and, 618
    zero-wait ER guarantee, 766
    Hotels
    MRP and, 584
    site selection, location strategies
    and, 351
    technology changes, 298
    House of quality, 166 – 169
    HP Project, 66
    Human resource, job design, work
    management and, 407 – 440 . See
    also labor standards
    competitive advantage for, 410
    constraints on, 410
    employment-stability policies and,
    411
    ergonomics and the work
    environment, 415 – 417
    ethics, the work measurement and,
    430 – 431
    forecasting, 110
    job classifications, work rules and,
    412
    job design and, 412 – 415
    labor planning and, 411 – 412
    labor standards, 420 – 430
    methods analysis, 417 – 419
    motivation, incentive systems and,
    415
    objective of, 410
    psychological components of job
    design , 413 – 414
    self-directed teams and, 414
    visual work place, 420
    work schedules and, 411 – 412
    Human resources, forecasting and,
    109
    Humidity, in work area, 417
    Hyatt, 456
    Hyundai Shipyard, 79
    I
    IBM, 46 , 49
    closed-loop supply chain, 461
    reshoring, 47
    SMT’s negotiation with, 787 – 788
    Idea Works, 257
    Ikea, 377
    Illumination, 417 – 418
    Impact on employees, JIT layout and,
    643
    Implementing 10 strategic OM
    decisions, 44
    Importance of
    inventory, 490 – 491
    project management, 62
    Improve operations, global view of
    operations and, 34
    Improve products, global view of
    operations and, 34
    Improve supply chain, global view of
    operations and, 33
    Incentives:
    for individual or group
    productivity, 415
    job design and, 415
    managing the supply chain, 452
    Increased flexibility, JIT layout and, 643
    Independent demand, inventory
    models and, 495
    basic economic order quantity
    (EOQ) model, 496 – 497
    minimizing costs, 497 – 501
    production order quantity model,
    502 – 504
    quantity discount models, 505 – 507
    reorder points, 501 – 502
    Independent processing region, 180
    India, call centers in, 47
    Indonesia, manufacturing in, 51
    Industrial engineering, OM and, 10
    Infant mortality, 667
    Infinite arrival population, 749
    Infinite loading, 604
    Information technology, 10
    Ingall Ship Building Corporation,
    378
    Initial failure rate, 667
    Initial solution, transportation
    models and, 732 – 734
    Innovation, new products and, 163
    Input-output control, loading jobs
    and, 606 – 607
    Inspection:
    attributes versus variables, 233
    definition, 230
    quality role, 230 – 233
    service industry and, 232
    source and, 231
    waste, 289 n
    when and where, 230 – 231
    Institute for Supply Management
    (ISM), 8
    Intangible costs, location strategies
    and, 342
    Integer variables, 713
    Integrated supply chain, managing
    and, 451 – 454
    issues in, 451 – 452
    opportunities in, 452 – 454
    Intermittent processes, 282
    Internal benchmarking, 223
    Internal failure costs, quality and, 218
    International business, 49
    International Organization for
    Standardization (ISO), 204 –
    205
    International standards
    environmental, 204 – 205
    quality, 218 , 454
    International strategy, global
    operations and, 49
    Introductory phase, product life cycle
    and, 165
    Intuitive lowest-cost method, 733 –
    734
    Inventory
    accurate records, 570
    assets committed to, 462 – 463
    capacity options, 535 – 536
    functions of, 490
    lean operations, 643 – 646 , 652
    maintenance/repair/operating
    (MRO) inventory, 490 – 491
    quantities and values, 462 n
    raw material inventory and, 490
    types of, 490 – 491
    work-in-process (WIP) and, 490
    Inventory analysis, simulation and,
    797 – 799
    Inventory management, 487 – 528 . See
    also Independent demand
    classifying items through ABC
    analysis, 491 – 492
    control of service inventories,
    494 – 495
    cycle counting, 493 – 494
    demand, independent vs.
    dependent, 495
    ethical dilemma, 515
    fixed-period (P) systems and,
    514 – 515
    holding, ordering, and setup costs,
    495 – 496
    importance of, 490 – 491
    independent demand, models for,
    496 – 507
    just-in-time, 643 – 646
    kanban, 647 – 649
    managing and, 491 – 495
    mass customization, 285
    models, 495 – 514
    other probabilistic models, 511 – 513
    probabilistic models and safety
    stock, 508 – 513
    record accuracy, 493
    single-period model, 513 – 514
    using software, 516 – 517
    Inventory turnover, 462
    Inventory types, 490 – 491
    Investment analysis, capacity
    planning and, 324 – 326
    Invisalign Corp., 172
    iPad menu, 289
    Ishikawa diagrams, 227
    ISO, 703 n
    ISO 9000 , 218 , 454
    ISO 14000 , 204 – 205 , 454
    ISO-cost line, 708 – 709
    ISO-profit line solutions method,
    703 – 705
    Issues in:
    integrated supply chain, 451 – 452
    operations strategy, 40 – 41
    short-term scheduling, 602 – 605
    Item aggregation, 507I16 GENERAL INDEX
    J
    J R Simplot, 179
    Jackson Manufacturing Co., 437
    Jagoda Wholesalers, 130 – 131
    Japan/Japanese. See also Toyota
    Production System
    collegial management structure, 170
    Deming Prize, 218
    earthquake damage, 472
    5Ss, 639
    Gemba or Gemba walk, 651
    kanban, 647 – 649
    keiretsu networks, 448 – 449
    SEATO and, 34
    Takumi, 219
    JC Penney, 453
    Jidoka, 650 , 651
    JIT. See Just-in-time
    Jo-Ann Stores, use of GIS system,
    353
    Job characteristics, 413 – 414
    Job classifications, 412
    Job design, 412 – 415 . See also
    Methods analysis
    core job characteristics and, 413 –
    414
    definition, 412
    Hawthorne Studies and, 413
    job expansion, 413
    labor specialization, 412
    limitations of job expansion,
    414
    motivation and incentive systems
    and, 415
    psychological components of,
    413 – 414
    self-directed teams, 414
    Job enlargement, human resource
    strategy and, 413
    Job enrichment, 413
    Job expansion, 413
    limitations, 414
    Job lots, 379
    Job rotation, 413
    Job shops, facilities, 605
    scheduling, 617
    Job specialization, 412
    John Deere, 536
    Johns Hopkins Medical Center, 232
    Johnson & Johnson, 46 , 219
    Johnson Controls, 463
    Johnson Electric Holdings, LTD.,
    39
    Johnson’s rule, sequencing and,
    615 – 616
    Johnsonville Sausage Co., 415
    Johnstown Foundry, Inc., 431
    Joint ventures
    supply-chain management and,
    448
    time-based competition and,
    174 – 175
    Jones Law Offices
    inspection, 232
    Juran, Joseph M., 219
    Jury of executive opinion, 111
    Just-in-time (JIT)
    consignment inventory and, 642
    definition of, 638
    distance reduction and, 643
    impact on employees and, 643
    increased flexibility and, 643
    inventory and, 643 – 646
    Kanban and, 647 – 649
    layout and, 642 – 643
    MRP and, 576
    partnerships and, 640 – 642
    quality and, 224 , 649
    reduced space and inventory and,
    643
    remove variability and, 643 – 644
    scheduling and, 646 – 649
    security, 451
    supply chain risk and, 451
    TQM and, 224
    Just-in-time (JIT) inventory
    reduce setup costs, 645 – 646
    K
    Kaizen, lean production and, 649 ,
    651
    Kaizen event, 649
    Kanban, JIT and, 420 , 647 – 649
    advantages of, 648 – 649
    definition, 647
    number of cards or containers and,
    648
    Kawasaki Heavy Ind, 30
    Keiretsu networks, 448 – 449
    Key success factors (KSFs), 41 – 43 ,
    341
    Kindle, forecasting and, 110
    Kits, BOMs and, 570
    Kitted material, MRP and, 570
    Knowledge society, 16 – 17
    Knowledge-based pay systems, 415
    Kodak, 646
    Komatsu, 50
    Korean Airlines, 30
    Kroger, 375
    L
    La Quinta hotel site selection, 351
    Labinel, 30
    Labor planning, human resources
    and, 411 – 412
    employment-stability policies and,
    411
    job classifications and, 412
    work rules and, 412
    work schedules and, 411 – 412
    Labor productivity
    location strategies and, 342
    as productivity variable, 15 , 16
    Labor scheduling example, LP and,
    712 – 713
    Labor specialization, job design and,
    412
    Labor standards, 420 – 430
    historical experience, 421
    predetermined time standards,
    425 – 427
    time studies, 421 – 425
    work sampling, 427 – 430
    Large lots, integrated supply chain
    and, 452
    Last-in, first-out (LIFO), 751 n
    Last-in, first-served (LIFS), 751 n
    Latecoere, 30
    Latest finish time (LF), 72 , 74
    Latest start time (LS), 72 , 74
    Layout, types of, 370 – 371
    Layout design, OM decisions and, 42
    Layout strategies, 367 – 406
    ethical dilemma, 392
    fixed-position layout, 370 , 377 – 378
    lean operations, 642 – 643 , 652
    lean operations and JIT, 642 – 643
    office layout and, 370 , 371 – 372
    process-oriented layout and, 371 ,
    378 – 383
    product-oriented, 371
    repetitive and product-oriented
    layout and, 386 – 391
    retail layout and, 370 , 372 – 375
    servicescapes, 375
    strategic importance of, 370
    types of, 370 – 371
    using software, 393
    warehouse and storage layouts and,
    370 , 375 – 377
    work cells, 371 , 383 – 386
    Lead time:
    additional probabilistic models,
    511 – 513
    inventory model and, 501
    MRP and, 570 – 571
    probabilistic model, inventory
    management and, 511 – 513
    Leaders in quality, 219
    Lean operations, 19 , 635 – 658
    definition, 638
    eliminate waste and, 638 – 639
    ethical dilemma, 653
    5Ss and, 639
    improve throughput and, 640
    inventory and, 643 – 646
    just-in-time, 640 – 649
    kanban, 647 – 649
    layout and, 642 – 643
    lean organizations, 650 – 652
    material requirements planning
    and, 576
    quality and, 649
    removing variability, 639 – 640
    scheduling and, 646 – 649GENERAL INDEX I17
    services, 652
    seven wastes and, 638
    supplier partnerships, 640 – 642
    throughput, 640
    Toyota production system and,
    638 , 649 – 650
    waste elimination, 638 – 639
    Learn to improve operations, global
    view of operations and, 34
    Learning curves, 775 – 790
    applying, 778 – 782
    coefficients and, 779 – 781
    definition, 776
    doubling approach and, 777 ,
    778 – 779
    formula approach and, 779
    limitations of, 783
    services, manufacturing and,
    777 – 778
    strategic implication of, 782 – 783
    table approach and, 779 – 782
    Least-squares method, trend
    projections and, 124 – 126
    Legal change, product development
    and, 166
    Legends of Poker, 678 , 688
    Lekin® finite capacity scheduling
    software, 617 – 618
    Level schedules, JIT and, 647
    Level scheduling, 538
    Level strategy, aggregate planning
    and, 538
    Levi, 197
    Lexus, 111
    Life cycle, strategy and, 34 , 164 – 165
    Life cycle assessment, 173 , 198
    Limitations of :
    job expansion, 414
    learning curves, 783
    MRP, 575 – 576
    rule-based dispatching systems,
    616 – 617
    Limited arrival population, 749
    Linear programming (LP), 699 – 728
    changes in the objective function
    coefficient and, 707 – 708
    changes in the resources, 706 – 707
    corner-point method and, 705
    definition of, 700
    diet problem and, 711
    feasible region and, 703
    feed-mix problem and, 711
    fixed-charge problem, 715
    formulating problem and, 701 – 702
    Glickman Electronics example,
    701 – 702
    graphical solution to, 702 – 705
    integer and binary variables,
    713 – 715
    iso cost, 708
    iso-profit line solution method and,
    703 – 705
    labor scheduling and, 712 – 713
    minimization problems and,
    708 – 709
    objective function and, 701 , 707 –
    708
    production-mix example and,
    710 – 711
    requirements of a programming
    problem and, 701
    right-hand-side values and, 706 –
    707
    sensitivity analysis, 705 – 708
    sensitivity report, 706
    simplex method of, 713
    transportation method, 543 – 545
    using software, 716 – 718
    validity range for shadow prices,
    707
    why we use LP, 707
    Linear regression analysis, 131 – 136
    Lion King revenue management, 548
    Little’s Law, 763
    L.L. Bean, 223
    Loading jobs, short term scheduling
    and, 604 , 605
    assignment method, 608 – 610
    Gantt charts, 607 – 608
    input-output control, 606 – 607
    Local optimization, managing the
    supply chain and, 451 – 452
    Location, costs and, 340 – 341
    Location, importance of, 340 – 341
    Location decisions, factors affecting,
    341 – 344
    Location strategies, 337 – 366
    center-of-gravity method and,
    348 – 349
    costs of, 340 – 341 , 342
    exchange rates and currency risk
    and, 342
    factors affecting location decisions,
    341 – 344
    geographic information systems
    (GIS), 351 – 353
    methods of evaluating location
    alternatives, 344 – 350
    objective of, 340
    political risks, values and culture
    and, 343
    proximity to competitors and, 344
    proximity to markets and, 343 –
    344
    proximity to suppliers and, 344
    service location strategy, 350 – 351
    strategic importance of, 340 – 341
    tangible costs and, 342
    transportation model, 349 – 350
    using software, 354 – 355
    Locational cost-volume analysis,
    346 – 347
    Lockheed Martin, 172
    Logan Airport, 700
    Logistics management, supply chain
    management, and, 456 – 459
    reverse, 203 , 460 – 461
    shipping systems and, 456 – 457
    sustainability, 200 – 202
    third-party logistics (3PL) and,
    458 – 459
    warehousing and, 457 – 458
    Longest processing time (LPT), 611
    Long-range forecast, 108 – 109
    Los Angeles Airport, M/M/S model
    and, 761
    Lot size reduction
    integrated supply chain and, 452
    lean operations and JIT, 644 – 645
    Lot sizing decision, 576 – 580
    Lot sizing summary, 579 – 580
    Lot sizing techniques, MRP and,
    576 – 580
    economic order quantity, 577 – 578
    lot-for-lot, 576
    periodic order quantity, 578 – 579
    Lot tolerance percent defective
    (LTPD), 359
    Lot-for-lot, 576
    Low-cost leadership, 38
    Low-level coding, MRP and, 570
    Lufthansa, 257 , 313
    M
    Machine technology, 294 – 295
    Machines, operator input to, 416 – 417
    MAD (mean absolute deviation),
    118 – 119 , 121
    Maintenance and reliability, 659 – 676
    autonomous maintenance, 670
    defined, 662
    ethical dilemma, 671
    increasing repair capabilities, 670
    preventive maintenance, 667 – 670
    reliability, 663 – 667
    strategic importance of, 662 – 663
    total productive maintenance, 671
    Maintenance/repair/operating (MROs)
    inventories and, 490 – 491
    Major league baseball umpires, 610
    Make-or-buy decisions, 176 – 177 ,
    446 – 447
    Malcolm Baldrige National Quality
    Awards, 45 , 218
    Management, as productivity
    variable, 15 , 16 – 17
    Management, MRP and
    dynamics of, 575
    JIT and, 576
    Management process, OM and, 7
    Manager, project, 63 – 64
    Managerial issues, control charts and,
    259 – 260
    Managing bullwhip effect, 474 – 476
    Managing demand, capacity and,
    312 – 313I18 GENERAL INDEX
    Managing inventory. See Inventory
    management
    Managing quality, 213 – 244 . See also
    Total quality management
    cost of, 218 – 219
    defining, 217 – 219
    ethics and, 219
    implications of, 217 – 218
    international quality standards, 218
    role of inspection, 230 – 233
    services and, 233 – 234
    strategy and, 216
    tools of TQM, 226 – 230
    total quality management, 219 – 226
    Manila, cartoon industry in, 33
    Manufacturability, product
    development and, 170
    Manufacturing
    learning curve and, 777 – 778
    organizational chart, 5
    regulations, 203 – 204
    repetitive, 280 – 281
    Manufacturing cycle time, 640
    MAPE (Mean absolute percent
    error), 120 , 121
    MapInfo, 353
    Maptitude, 353
    Maquiladoras, 34
    Market survey, 111 – 112
    Market-based price model, 455
    Marketing, OM and, 4
    Markets
    global view of operations and, 34
    proximity to, 343 – 344
    Marriott, 456
    Mass customization
    focus in, 284 – 285 , 286
    OM and, 19
    Mastek Corp., agile project
    management, 67
    Master production schedule, 535 ,
    567 – 568
    Master schedule, scheduling issues
    and, 575 , 603
    Material flow cycle, 491
    Material handling costs, 375
    Material requirements planning
    (MRP), 563 – 598 . See also
    Dependent inventory model
    requirements
    buckets and, 576
    capacity planning and, 581 – 583
    closed loop, 581
    defined, 566
    dependent demand, 566
    dependent inventory model
    requirements and, 566 – 571
    distribution resource planning
    (DRP) and, 584
    dynamics, 575
    enterprise resource planning
    (ERP), 584 – 587
    ethical dilemma, 587
    extensions of, 580 – 583
    gross material requirements plan
    and , 571 – 572
    JIT and, 576
    limitations and, 575 – 576
    lot-sizing techniques and, 576 – 580
    net requirements plan and, 572 –
    575
    planning bill, time-phased product
    structure and, 570
    safety stock and, 575
    services and, 583 – 584 , 587
    structure for, 571 – 575
    using software, 588 – 589
    Material requirements planning II
    (MRP II), 580 – 581
    Mathematical approaches, aggregate
    planning and, 543 – 545
    Matrix organization, 63
    Mattel, 48, 204
    Maturity phase, product life cycle
    and, 165
    Maximax, decision-making under
    uncertainty and, 681
    Maximin, decision-making under
    uncertainty, 681
    Maximization problems, linear
    programming and, T3 – 7
    McDonald’s Corp., 42 , 175 , 235 , 755
    Global Company Profile, 368 – 369
    hamburger assembly line, 387
    inventory management, 463 , 652
    process analysis, 288
    process strategy, 298
    quality, 235
    scheduling, 652
    supply chain risks and tactics, 450
    McKesson Corp., 494 , 642
    Mean absolute deviation (MAD),
    118 – 119 , 121
    Mean absolute percent error
    (MAPE), 120 , 121
    Mean chart limits, setting of, 250 – 253
    Mean squared error (MSE), 119 – 120 ,
    121
    Mean time between failures (MTBF),
    664 – 665
    Measurement, productivity and,
    14 – 15
    Measuring:
    forecast error, 117 – 120
    supply chain performance, 461 – 464
    Medium-range forecast, 108 – 109
    Meijer, 421
    Mercedes-Benz, 46 , 172 , 175 , 223 ,
    340
    sustainability, 198 , 203
    Merck mission statement, 36
    MERCOSUR, 34
    Mercury Marine, 445
    Messier-Bugatti, 30
    Messier-Dowty, 30
    Methods analysis, 417 – 419
    Methods for aggregate planning,
    538 – 545
    Methods of evaluating location
    alternatives,
    center-of-gravity method, 348 – 349
    factor-rating method, 344 – 350
    locational cost-volume analysis,
    346 – 347
    transportation model, 349 – 350
    Methods time measurement (MTM),
    427
    Methods Time Measurement
    Association, 427 n
    Mexico, NAFTA and, 34
    Micro Saint software, 792
    MicroGreen Polymers, 199
    Microsoft Corp., 40 , 64 – 65 , 112 , 172 ,
    174
    Microsoft Project, 66
    entering data, 86
    PERT analysis, 87
    project management and, 86 – 88
    tracking the time status of a
    project, 87 – 88
    viewing the project schedule, 86 – 87
    Milliken, 218
    Milton Bradley, 493
    Milwaukee Paper
    activity-on-arrow (AOA), 71
    activity-on-node (AON), 68 – 70 , 71
    completion of product on time
    and, 79
    computing project variance, 78
    critical path, 76
    earliest finish time (EFT), 73
    earliest start time (EST), 73
    expected times and, 78
    latest finish time (LFT) and, 74 – 75
    latest start time, (LST) and, 74 – 75
    project crashing, 83 – 85
    project network, 87
    project schedule, 86 – 87 , 90
    sample Gantt chart, 86
    slack time and, 75 – 76
    standard deviation and, 79
    time estimates, 71
    variances, 78 , 79
    MindView, 66
    Minimal-cost-flow problem, T5 – 13
    Minimization problems, LP and,
    708 – 709 , T3 – 7 to T3 – 8
    Minimizing costs, independent
    demand inventory and, 497 –
    501
    Minimum cost of insertion technique,
    T5 – 10
    Miscellaneous services, aggregate
    planning and, 546 – 547
    Missions, global view of operations
    and, 35 – 36 , 37GENERAL INDEX I19
    Mitigation tactics, supply chain risks,
    450
    Mitsubishi Heavy Ind, 30
    Mixed strategy, aggregate planning
    and, 538
    Mixing options, aggregate scheduling
    and, 537 – 538
    MNC (Multinational corporation),
    49
    Models, independent demand and,
    502 – 507
    MODI method (modified
    distribution):
    how to use, T4 – 2 to T4 – 4
    solving a problem, T4 – 2 to T4 – 4
    transportation problems and, T4 – 2
    to T4 – 4
    Modular bills, MRP and, 569 – 570
    Modular design, product
    development and, 171
    Modularization, service efficiency
    and, 181
    Modules, repetitive focus and, 283
    Moment-of-truth, service design and,
    181
    Monitoring forecasts, 138 – 139
    Monte Carlo method, 794
    Monte Carlo simulation, 794 – 797
    Monterey Jack cheese, 175 – 176
    Most likely time, PERT and, 77
    Motivation, incentive systems, 415
    Motivation systems, job design and,
    415
    Motorola, 218 , 221
    Moving averages
    quantitative forecasting and,
    114 – 116
    weighted, 115–116
    MROs, 490 – 491
    MRP., see Material requirements
    planning
    Mrs. Field’s Cookies, 375
    MSE (mean squared error), 119 – 120 ,
    121
    Muda, 651
    Multidomestic strategy, global
    operations and, 49
    Multifactor productivity, 14 – 15
    Multimodal shipping, logistics
    management and, 457
    Multinational corporation (MNC), 49
    Multiphase system, 752
    Multiple regression, 136 – 137
    Multiple regression analysis, 136 – 137
    Multiple server queuing model,
    757 – 761
    Multiple traveling salesmen problem
    (MTSP), T5 – 4 , T5 – 8
    Multiplicative seasonal model, 127
    Multiproduct case, break-even
    analysis and, 320 – 322
    Muther Grid, 372
    N
    Nabisco, 110
    NAFTA (North American Free
    Trade Agreement), 34
    Naive approach, quantitative
    forecasting and, 113 – 114
    NASCAR Racing Team, Global
    Company Profile, 408 – 409
    National car rental, 730
    National chains, aggregate planning
    and, 546
    National Highway Safety
    Administration, 203
    Natural variations, statistical process
    control and, 246 – 247
    Nature of aggregate planning, 534 –
    535
    Nearest neighbor procedure, T5 – 5 to
    T5 – 7
    Negative exponential probability
    distribution, 752
    Negotiation strategies, vendor
    selection and, 455
    Nestlé, 50 , 455
    Net material requirements plan,
    MRP and, 572 – 574
    Net present value, strategy-driven
    investments and, 324 – 326
    Net requirements plan, MRP and,
    572 – 575
    Networks, routing and scheduling
    vehicles and, T5 – 3
    New challenges in OM, 18 – 19
    New England Foundry, 771 – 772
    New Guinea, SEATO and, 34
    New products, generating, 165 – 166
    New York City potholes, regression
    analysis of, 137
    New Zealand, SEATO and, 34
    Night Hawk, 314
    Nike, 112 , 458
    Nintendo, 110
    Nissan
    annual inventory turnover, 463
    level strategy, 538
    low-emission vehicles, 194
    scheduling, 577
    supply chain risks and tactics,
    450
    Nodel Construction Company,
    132 – 137
    Nodes, routing and scheduling
    vehicles and, T5 – 3
    Noise, in work area, 417 , 418
    Non-basic variables, T3 – 3
    Nordstrom Department Store
    inspection, 232
    Normal curve areas, A2 – A3 , T1 – 4 to
    T1 – 7
    Normal distribution, A2 – A3
    Normal time, labor standards and,
    422 , 423
    North American Free Trade
    Agreement, 34
    Northwest-corner rule,
    transportation models and,
    732 – 733
    Nucor, 216
    Nurse shortage, 619
    N.Y. Edison, 125 – 126
    O
    Oakwood Hospital, 766
    Objective function, LP problems and,
    701
    Objective function coefficients,
    allowable ranges and, 707 – 708
    Objectives of routing and scheduling
    vehicle problems, T5 – 2
    Occupational Safety and Health
    Administration (OSHA), 203,
    431 , 431 n
    Office Depot, 421 , 459
    Office layout, 370 , 371 – 372
    Office Max, 534
    Office relationships chart, 372
    Official Board Markets weekly
    publication, 455
    Old Oregon Wood Store, 630
    Olive Garden Restaurant. See also
    Darden Restaurants
    forecasting, 113
    inspection, 232
    JIT, 640
    OM. See Operations management
    OM in Action
    airline capacity, matching to
    demand, 313
    Align Technology mass
    customization, 285
    Amazon robot warehouse strategy, 376
    Benetton, ERP software and, 585
    blue jeans and sustainability, 197
    car assembly lines, sustainability
    in, 203
    Cessna Aircraft Company lean
    production, 642
    Delta Airlines, project management
    and, 66
    Denmark’s meat cluster, 345
    DHL, supply chain and, 458
    Disney musical’s revenue
    management, 548
    frequent flyer miles, booking seat
    with, 257
    hospital accident avoidance, 232
    hospital benchmarks against
    Ferrari Racing Team, 224
    hotel industry, technology changes
    and, 298
    incentives to unsnarl traffic jams in
    the OR, 415
    Iowa data center locations, 343
    iPad menu, 289I20 GENERAL INDEX
    JC Penney, supply chain and, 453
    La Quinta hotel site selection, 351
    Lean Production at Cessna
    Aircraft, 642
    mass customization for straight
    teeth, 285
    Mastek Corp. agile project
    management, 67
    Milton Bradley inventory
    management, 493
    missing perfect chair, 416
    New York City potholes and
    regression analysis, 137
    Oakwood Healthcare ER
    guarantee, 753
    Olive Garden, forecasting and, 113
    operating room traffic jams, 415
    Orlando Magic short-term
    scheduling, 604
    Reshoring to Small-Town U.S.A., 47
    retail services, saving time, 421
    retail’s last 10 yards, 495
    RFID tags help control bullwhip
    effect, 475
    Richey International’s spies, 235
    roses, supply-chain management
    and, 446
    San Francisco General Hospital
    lean operations, 651
    Snapper, aggregate planning and,
    535
    Starbucks Coffee
    productivity and, 14
    simulation, 797
    Subaru’s clean, green set of wheels,
    205
    Taco Bell
    product development, 174
    productivity and lower costs and,
    18
    3D printers, 172
    Tour de France, 85
    Toyota reworking production, 650
    UPS
    linear programming, 709
    staffing, 426
    U.S. cartoon production in Manila,
    global view of operations, 33
    Zero wait time guarantee in
    Michigan’s ER, 753
    One-sided window, T5 – 12
    Online auctions, 456
    Online catalogues, 456
    Online exchanges, 456
    On-time delivery, 488
    Operating characteristics (OC)
    curves, 263 – 264 , T2 – 2 to T2 – 3
    Operations analyst, OM and, 9
    Operations and productivity,
    1 – 28 . See also operations
    management
    Operations chart
    job design and, 418
    method analysis and, 419
    Operations layout strategy. See
    Layout strategies
    Operations management
    decision process in, 678 – 679
    definition, 4
    ethics and social responsibility, 19
    goods and services, 11 – 13
    growth of services, 11 – 12
    Hard Rock Café and, 2 – 3
    heritage of, 8 – 10
    integrating with other activities, 43
    job opportunities in, 7 – 8
    management process, 7
    new challenges, 18 – 19
    operations for goods and services,
    11 – 13
    organizing to produce goods and
    services, 4 , 6
    productivity, service sector and,
    17 – 18
    productivity challenge, 13 – 18
    productivity measurement, 14 – 15
    productivity variables, 15 – 17
    reasons to study, 6 – 7
    service growth, 11 – 12
    service pay, 12 – 13
    significant events in OM, 10
    supply chain and, 6
    ten strategy decisions, 7 , 8
    what operation managers do, 7 – 8
    where OM jobs are, 7 – 8
    why study?, 6 – 7
    Operations managers jobs, 7 – 8
    Operations strategy in a global
    environment, 29 – 58
    competitive advantage through
    operations, 36 – 39
    developing missions and strategies,
    35 – 36
    global view, 32 – 35
    issues in, 40 – 41
    outsourcing, 44 – 48
    strategy development and
    implementation, 41 – 44
    strategy options, 49 – 50
    ten strategic OM decisions, 39 , 43 ,
    44
    using software, 51 – 52
    Operator input to machines, 416 –
    417
    Opportunities in an integrated supply
    chain, 452 – 454
    Opportunity cost, assignment
    method and, 608 – 610 , 608 n
    Opportunity loss, 610
    Optimistic time in PERT, 77
    Options, limiting for service
    efficiency, 181
    Oracle Primavera, 66
    Ordering cost, 495 – 496
    Organization, building and staffing,
    43 – 44
    Organization charts, 5
    Organizing for product development,
    169 – 170
    Organizing to produce goods and
    services, 4 , 6
    Origin points, transportation
    modeling and, 730
    Orlando Magic, 230 . See also Amway
    Center
    aggregate planning, revenue
    management, and, 560
    control chart, 230
    forecasting and, 154 – 155
    MRP and, 595 – 596
    short-term scheduling and, 604 ,
    631 – 632
    sustainability, 208–209
    Orlando Utilities Commission,
    Global Company Profile,
    660 – 661
    Otis Elevator, 342
    Outsourcing
    defined, 44 – 46
    rating outsource providers, 47 – 48
    risks of, 46 – 47
    theory of comparative advantage,
    46
    types of, 447
    P
    P system, 514 – 515
    Pacific Cycle LLC, 447
    Paddy-Hopkirk Factory, 419
    Paraguay, MERCOSUR and, 34
    Parallel path, redundancy and,
    666 – 667
    Parameter, sensitivity analysis and,
    705 – 706
    Parametric Technology Corp., 179
    Pareto charts, 226 , 227 – 228
    Pareto principle, 491
    Park Plaza Hotel, 198
    Parker Hi-Fi Systems, 525
    Partial tour, T5 – 6
    Partnering relationships, supply chain
    strategies and, 19
    Partnerships, JIT and, 640 – 642
    Part-time employees, 412
    Path, T5 – 6
    Pattern of arrivals at the system,
    749 – 750
    Pay, service sector and, 12 – 13
    p-charts, 256 – 257 , 259
    Pegging, 575
    People, sustainability issues and,
    195 – 196
    PepsiCo
    mission statement, 36
    supply chain management, 462 – 463
    OM in Action (Continued)GENERAL INDEX I21
    sustainable production process,
    200
    Performance criteria, for sequencing
    jobs, 611
    Periodic inventory systems, 493
    Periodic order quantity (POQ),
    578 – 579
    Perpetual inventory system, 493 , 514
    Perrier, 219
    Personal ethics, 460
    Personal time allowances, 422
    PERT (program evaluation and
    review technique)
    activity-on-arrow (AOA) example,
    71
    activity-on-node (AON) example,
    69 – 70
    critique, 85 – 86
    framework, 67 – 68
    Gantt charts versus, 65
    Microsoft Project analysis, 87
    network diagrams and approaches,
    68
    probability of project completion,
    79 – 82
    time estimates, 77 – 78
    PERT analysis, Microsoft Project
    and, 87
    Pessimistic time estimate, PERT and,
    77
    Phantom bills of material, MRP and,
    570
    Pharmaceutical companies, use of
    RFID tags, 295
    Philippines, cartoon industry and, 33
    Physical sciences, OM and, 10
    Pig production, 300
    Pilferage, 494
    Ping Inc., 285
    Pipelines, logistics management and,
    457
    Pirelli SpA, 52–53
    Pivot column, T3 – 4
    Pivot number, T3 – 4
    Pivot row, T3 – 4
    Pixar, 373
    Plan-Do-Check-Act (PDCA), 220 –
    221
    Planned order receipt, MRP and, 574
    Planned order release, MRP and, 574
    Planning bills, MRP and, 570
    Planning horizons, aggregate
    planning and, 532 – 533
    Planning process, aggregate planning
    and, 532 – 533
    Plant manager position, OM and, 9
    Poisson distribution, 250 n, 750
    Poisson table, A4
    Poka-yoke
    lean operations, 650
    service blueprinting, 292
    source inspection and, 231
    Political change, generating new
    products and, 166
    Political risk, location strategy and,
    343
    Polycon Industries, 646
    POM for Windows, A6 – A7
    accessing, 21
    aggregate planning, 553
    break-even analysis, 327
    decision table and trees, 689
    factor rating models, 51
    forecasting, 144
    inventory problems, 517
    layout strategy, 393
    learning curves, 784
    linear programming, 718
    location problems, 354 – 355
    material requirements planning
    (MRP), 588
    project scheduling, 89
    queuing problems, 766
    reliability problems, 672
    short-term scheduling, 624
    simulation and, 801
    SPC control charts, OC curves,
    acceptance sampling and
    process capability, 267
    transportation problems, 739
    use of, A6 – A7
    Porsche, 650
    Port of Baltimore, 119 – 120
    Port of Charleston, 451
    Port of Miami warehouse tenting,
    696
    Portion-control standards, 176
    Postponement, mass customization
    and, 285
    supply chain management and,
    453
    Potholes, New York City, 137
    Pratt & Whitney, machine technology
    and, 295
    Precedence relationship, in assemblyline balancing, 387
    Predetermined time standards,
    425 – 427
    Preferred Hotels and Resorts
    Worldwide, 235
    Prevention costs, quality and, 218
    Preventive maintenance, 667 – 670
    Priority rules, sequencing jobs and,
    611 – 614
    Probabilistic inventory models and
    safety stock, 508 – 510
    other models, 511 – 513
    Probability distribution, Monte Carlo
    simulation, 794
    Process analysis, design and, 288 – 293
    flowchart, 289
    job design and, 419
    process chart, 289 – 290
    service blueprinting, 292 – 293
    time-function mapping, 289
    value-stream mapping, 290 – 291
    Process capability, SPC and, 260 – 262
    definition, 260
    index (Cpk) and, 261 – 262
    ratio (Cp) and, 260 – 261
    Process charts, 289 – 290 , 418 , 419
    Process choices, comparison of,
    286 – 288
    Process comparison, 286 – 288
    Process control, 295 – 296
    Process design
    mass customization, 285
    OM and
    customer interaction and, 293 –
    294
    Process focus
    process strategies and, 282 – 283 ,
    286
    scheduling, 605
    Process improvement consultants,
    OM positions and, 9
    Process mapping, 289
    Process redesign, 298 – 299
    Process strategy, 279 – 305
    analysis and design, 288 – 293
    comparison and, 286 – 288
    defined, 282
    equipment and technology
    selection, 288
    four process strategies, 282 – 288
    mass customization focus and,
    284 – 286
    process focus and, 282 – 283
    process redesign, 298 – 299
    product focus, 284
    production technology, 294 – 298
    repetitive focus and, 283
    service process design, special
    considerations for, 293 – 294
    technology in services, 298
    Process time of a station, 314
    Process-chain-network (PCN)
    analysis, 179 – 181
    Process-focused facilities, 605
    Process-oriented layout, 371 , 378 – 383
    computer software for, 382 – 383
    focused work center and focused
    factory, 386
    work cells and, 371 , 383 – 386
    Procter & Gamble, 172 – 173 , 195 ,
    198 , 474
    Producer’s risk, 263 , T2 – 3 to T2 – 4
    Product decision, 163
    Product design issues, 171 – 173 . See
    also Design of goods and
    services
    application of decision trees and,
    182 – 184
    computer-aided design (CAD), 171
    computer-aided manufacturing
    (CAM), 172I22 GENERAL INDEX
    life cycle assessment (LCA), 173
    mass customization, 285
    modular design, 171
    regulations, 203
    robust design, 171
    standard for the exchange of
    product data (STEP), 172
    sustainability, 173 , 198 – 200
    3D printing and, 172
    value analysis, 173
    virtual reality technology, 172 – 173
    Product development, 166 – 170
    alliances and, 175
    continuum, 173 – 175
    development system, 166
    global OM, 34
    house of quality and, 166 – 169
    issues for design and, 171 – 173
    joint ventures and, 174 – 175
    manufacturability and, 170
    OM challenges, 19
    organizing for, 169 – 170
    purchasing technology by
    acquiring a firm and, 174
    quality function deployment
    (QFD), 166 – 169
    teams and, 170
    3-D printing, 172
    value engineering and, 170
    Product development continuum,
    173 – 175
    Product failure rate (FR), reliability
    and, 664
    Product focus, 284 , 286 , 288
    Product generation, new
    opportunities, 166
    Product liability, quality and, 218
    Product life cycle, 164
    management and, 178 – 179
    strategy and, 41 , 164 – 165
    Product life-cycle management
    (PLM), 178 – 179
    Product manager, 169 – 170
    Product strategy options support
    competitive advantage, 163 –
    164
    Product-by-value analysis, 165
    Product-focused facilities, 605
    Production
    defined, 4
    doubling along learning curve,
    777
    transition from design to, 184
    varying capacity, 536
    Production order quantity model,
    502 – 504
    Production technology, 294 – 298
    automated guided vehicles (AGV),
    296
    automated storage and retrieval
    system (ASRS), 296
    automatic identification system
    (AIS), 295
    computer-integrated manufacturing
    (CIM), 297 – 298
    flexible manufacturing system
    (FMS), 297
    machine technology, 294 – 295
    process control, 295 – 296
    radio frequency identification
    (RFID), 295
    robots, 296
    vision systems, 296
    Production-mix example, LP and,
    710 – 711
    Production/operations, OM and, 4
    Productivity
    defined, 13
    multifactor, 14 – 15
    single-factor, 14
    Productivity, Starbucks Coffee and,
    14
    Productivity challenge and OM, 13
    defined, 13
    measurement of, 14 – 15
    service sector and, 17 – 18
    variables, 15 – 17
    Productivity variables, 15 – 17
    Product-oriented layout, 371 , 386 –
    391 , 387
    assembly line balancing and,
    387 – 391
    Profit, sustainability and, 197
    Program evaluation and review
    technique (PERT). See PERT
    Project completion probability, 79 – 82
    Project controlling, 66 – 67
    Project crashing and cost-time tradeoffs, 82 – 85
    Project management, 60 – 104
    activity-on-arrow example, 71
    activity-on-node example, 69 – 70
    calculating slack time, 75 – 76
    cost-time trade-offs, 82 – 85
    critical path analysis, 71 – 72
    critique of PERT and CPM, 85 – 86
    determining the project schedule,
    71 – 76
    ethical dilemma, 89
    ethical issues in, 64
    framework of PERT and CPM,
    67 – 68
    identifying the critical path, 75 – 76
    importance of, 62
    Microsoft Project, 77 , 86 – 88
    network diagrams and approaches,
    68
    non-critical paths, 81 – 82
    PERT/CPM in, 67 – 68
    probability of project completion,
    79 – 82
    project controlling, 66 – 67
    project crashing, 82 – 85
    project planning, 62 – 65
    project scheduling and, 65
    time estimates in, 77 – 78
    using software, 89 – 90
    variability in activity times, 77 – 82
    work breakdown structure, 64 – 65
    Project Management Institute (PMI),
    8 , 64
    Project manager, 63 – 64
    Project network, 69
    Project organization, 62 – 63
    Project planning, 62 – 65
    Project scheduling, 65
    determining, 71 – 76
    Microsoft Project view, 86 – 87
    Proplanner, 179 , 383
    Provide better goods and services,
    global view of operations and,
    34
    Providing redundancy, reliability and,
    665 – 667
    Proximity
    to competitors, location strategies
    and, 344
    to markets, location strategies and,
    343 – 344
    to suppliers, location strategies
    and, 344
    in workspace, 372
    Psychological components, job design
    and, 413 – 414
    Pull data, 452
    Pull system, 640
    kanban, 647 – 649
    Purchase orders outstanding, MRP
    and, 570
    Purchase technology by acquiring
    firm, 174
    Purchasing, centralized, 455 – 456
    Purdue Pharma LP, 298
    Push systems, 640
    Q
    Q systems, 514
    QFD. See Quality Function
    Deployment (QFD)
    Quain Lawn and Garden, Inc.,
    725 – 726
    Qualitative forecasting methods, 111
    consumer market survey, 111 – 112
    Delphi method, 111
    jury of executive opinion, 111
    market survey, 111 – 112
    sales force composite, 111
    Quality, 213 – 244 . See also Total
    quality management (TQM)
    cost of, 218 – 219
    defining, 217 – 219
    demand, capacity and, 311 – 287
    ethics and, 219
    house of, 166 – 167
    implications of, 217 – 218
    Product design issues (Continued)GENERAL INDEX I23
    international quality standards,
    218 , 454
    leaders in, 219
    lean operations, 649
    Malcolm Baldrige National Quality
    Award, 218
    productivity measurement, 15
    role of inspection, 230 – 233
    services and, 233 – 234
    strategy and, 216
    tools of TQM, 226 – 230
    total quality management, 219 – 226
    Quality circle, 222
    Quality control, 10
    Quality function deployment (QFD),
    166 – 169
    Quality loss function (QLF), 225
    Quality manager, 9
    Quality robust, 224 – 225
    Quantitative forecasts, 111
    associative models, 112
    time series models, 112
    Quantity discount models, inventory
    management and, 505 – 507
    Quantity discounts
    contracting, 455
    Queue costs, 753 – 754
    Queuing models, variety of, 754 – 765
    Little’s Law and, 763
    Model A(M/M/l): single channel
    with Poisson arrivals/
    exponential service times,
    754 – 757
    Model B(M/M/S): multiple-channel
    queuing model, 757 – 761
    Model C(M/D/l): constant-servicetime model, 762
    Model D: finite-population model,
    763 – 765
    use of waiting-line tables,
    759 – 760
    using software, 766
    Queuing problems, simulation of, 797
    Queuing theory, 748 – 749
    Quik Lube, 260
    R
    Rackspace, 534
    Radio frequency identification
    (RFID), 295 , 452 , 475
    Railroads, logistics management and,
    457
    Random number
    table of, 795, A4
    Random number intervals, Monte
    Carlo simulation and, 795
    Random stocking, warehouse layout
    and, 377
    Random variations, time series
    forecasting and, 113
    Range chart limits, setting of,
    253 – 254
    using of, 253 – 254
    Rapid Reviews:
    Chapter 1 Operations and
    Productivity, 27 – 28
    Chapter 2 Operations Strategy in a
    Global Environment, 57 – 58
    Chapter 3 Project Management,
    103 – 104
    Chapter 4 Forecasting, 165 – 166
    Chapter 5 Design of Goods and
    Services, 191 – 192
    Chapter 6 Managing Quality,
    243 – 244
    Chapter 7 Process Strategy and
    Sustainability, 305 – 306
    Chapter 8 Location Strategies,
    365 – 366
    Chapter 9 Layout Strategies,
    405 – 406
    Chapter 10 Human Resources,
    Job Design, and Work
    Measurement, 439 – 440
    Chapter 11 Supply-Chain
    Management, 469 – 470
    Chapter 12 Inventory
    Management, 527 – 528
    Chapter 13 Aggregate Planning,
    561 – 562
    Chapter 14 Material Requirement
    Planning (MRP) and ERP,
    597 – 598
    Chapter 15 Short-Term Scheduling,
    633 – 634
    Chapter 16 Lean Operations,
    657 – 658
    Chapter 17 Maintenance and
    Reliability, 675 – 676
    Module A. Decision Making Tools,
    697 – 698
    Module B. Linear Programming,
    727 – 728
    Module C. Transportation Model,
    745 – 746
    Module D. Waiting Line Models,
    773 – 774
    Module E. Learning Curves,
    789 – 790
    Module F. Simulation, 807 – 808
    Supplement 5 Sustainability in the
    Supply Chain, 211 – 212
    Supplement 6 Statistical Process
    Control, 277 – 278
    Supplement 7 Capacity and
    Constraint Management,
    305 – 306
    Supplement 11 Supply-Chain
    Management Analytics,
    485 – 486
    Rapid-Lube case study, 55
    Rating outsource providers, 47 – 48
    Raw material inventory, 490
    R-chart, 248 , 253 – 254
    Record accuracy, inventory
    management and, 493
    Red Lobster Restaurants
    location studies, 362 – 363
    time study, 423
    Reduce costs, global view of
    operations and, 33 – 34
    Reduce inventory, JIT and, 643 – 644
    Reduce lot sizes, JIT and, 644 – 645
    Reduce setup costs, JIT and,
    645 – 646
    Reduce variability, JIT inventory and,
    643 – 644
    Reduced space and inventory, JIT
    and, 643
    Redundancy, reliability and, 665 – 667
    Regal Marine, 55 , 162
    Global Company Profile, 160 – 161
    product design, 189–190
    strategy at, 55
    supply chain management,
    467 – 468
    Regression and correlation analysis,
    forecasting and, 131 – 137
    Relationship chart, 372
    Reliability, 663 – 667 . See also
    Maintenance and reliability
    defined, 662
    providing redundancy and,
    665 – 667
    using software to improve, 672
    Reneging customers, 750
    Reorder point (ROP) inventory
    management and, 501 – 502
    Repair capabilities, increasing, 670
    Repetitive and product-oriented
    layout, 386 – 391
    Repetitive facilities, scheduling and,
    605
    Repetitive focus, process strategy and,
    283 , 286
    Repetitive manufacturing, Harley
    Davidson and, 280 – 281
    Reputation, quality and, 217
    “Request for quotation,” 447
    Requirements of an LP problem, 701
    Reservations systems, 314
    Reshoring, 46 , 47
    Resource Conservation and Recovery
    Act, 204
    Resources, linear programming and,
    706 – 707
    Resources view, operations strategy
    and, 40
    Respect for people, TPS and, 649
    Response, competitive advantage
    and, 39 – 40
    Restaurants. See also Darden
    restaurants; Fast-food restaurants
    aggregate planning and, 546
    MRP and, 583 – 584
    Retail layout, 370 , 372 – 375I24 GENERAL INDEX
    Retail stores. See also Specialty retail
    shops
    inventory management, 495
    job design, 421
    scheduling services and, 618 – 619
    Revenue function, break-even
    analysis and, 318
    Revenue management, aggregate
    planning and, 547 – 550
    Revenue sharing, 455
    Reverse auctions, 456
    Reverse logistics, 203 , 460 – 461
    RFID, 295 , 452 , 475
    RFQs (requests for quotes), 447
    Richey International, 235
    Ricoh Corp., 228
    Right-hand/left-hand chart, 418
    Right-hand-side values, LP and,
    706 – 707
    Risk
    decision making under, 682 – 683
    outsourcing, 46 – 47
    reducing with incremental changes,
    322 – 323
    supply chain and, 449 – 451 , 472 –
    474
    Ritz-Carlton Hotels
    quality, 218 , 242
    Robert Bosch, 34
    Robots, 296 , 297 , 376
    Robust design, product development
    and, 171
    Robust model, inventory
    management and, 500 – 501
    Rochester Manufacturing Corp.,
    302
    Rolls-Royce, 30
    Rope, in bottleneck management, 317
    Route sheet, 178
    Routing service vehicles, T5 – 5 to
    T5 – 11
    Routing vehicles, T5 – 4
    Rubbermaid, 162 , 534
    Run test, charts and, 260
    Rusty Wallace’s NASCAR Racing
    Team, Global Company
    Profile, 408 – 409
    S
    Saab, 30
    Saber Roofing, use of GIS system,
    352 – 353
    SAE (Society of Automotive
    Engineers), 176 – 177
    Safe Drinking Water Act, 204
    Safe Place Infant Security Solution,
    295
    Safeskin Corp., 37
    Safety stock
    inventory management and, 501 ,
    508 – 510
    MRP and, 575
    Sales and operations planning
    (S&OP), 533 – 534
    Sales force composite, forecasting
    and, 111
    Sales incentives, 452
    Sample missions, 37
    Samples, SPC and, 247 . See also
    Acceptance sampling
    Sam’s Club, 495
    Samsung, 34 , 163
    San Diego Hospital, 129 – 130
    San Francisco General Hospital, 651
    SAP AG, 586
    SAP PLM, 179
    SAS, 257
    SAS/GIS, 353
    S.C. Johnson, 196 , 200
    Scatter diagrams, TQM tools and,
    226 , 227
    Scheduling
    criteria, 604 – 605
    decisions, 532
    forward and backward and, 603 –
    604
    just-in-time and, 646 – 649
    lean operations, 646 – 649 , 652
    linear programming example,
    712 – 713
    mass customization, 285
    OM decisions and, 8
    project, 65 , 71 – 76
    service vehicles and, T5 – 11 to
    T5 – 13
    vehicles, T5 – 4
    Schneider National, 457
    Schwinn Bicycle Co., 447
    SCOR model, 463 – 464
    Seasonal demands, capacity and, 312
    aggregate planning, 537
    airline industry, 313
    Seasonal variations in data, 126 – 131
    Seasonality, time series and, 112
    SEATO, 34
    Second-order smoothing, 124
    Security, JIT, supply chain
    management and, 451
    Selection of equipment and
    technology, process strategy
    and, 294 – 298
    Self-directed teams, 414
    Sensitivity analysis, LP and, 705 –
    708
    Sensitivity Report, 706
    Sequencing, jobs in work centers,
    611 – 617
    critical ratio and, 614 – 615
    definition, 611
    earliest due date, 611 , 614
    first come, first served, 614
    Johnson’s rule and, 615 – 616
    limitations of rule-based
    dispatching systems, 616 – 617
    priority rules for dispatching jobs,
    611 – 614
    shortest processing time, 611 , 614
    Sequential sampling, T2 – 2
    Service blueprinting, 292 – 293
    Service industry inspection, 232
    Service level, probabilistic models
    and, 508
    Service pay, 12 – 13
    Service recovery, 234
    Service sector
    defined, 12
    demand and capacity management
    in, 313 – 314
    documents for, 181 – 182
    efficiency and, 181
    forecasting and, 140 – 141
    location strategy, 350 – 351
    operations in, 11 – 13
    organization chart, 5
    productivity, boosting, 294
    productivity and, 17 – 18
    TQM in, 232 – 234
    Service vehicle scheduling, T5 – 11 to
    T5 – 13
    Service(s). See also Service Sector
    aggregate planning and, 545 – 547
    defined, 11
    design of, goods and, 179 – 182
    differences from goods and, 11
    documents for, 179 – 182
    focus, 288
    growth of, 11 – 12
    inventory control, 494 – 495
    lean operations in, 652
    learning curves in, 777 – 778
    MRP and, 583 – 584
    pay in, 12 – 13
    process design, 293 – 294
    scheduling and, 618 – 621
    service blueprinting, process
    strategy and, 292 – 293
    service characteristics, waiting line
    system and, 751 – 752
    service time distribution, waiting
    line system and, 752
    technology, 298
    total quality management, services
    and, 233 – 234
    Servicescapes, 375
    SERVQUAL, 234
    Setup cost, 496
    reducing in lean operations and
    JIT, 645 – 646
    Setup time, 496
    steps for reducing, 646
    Seven steps in forecasting, 110 – 111
    Seven tools of TQM, 226 – 230
    Seven wastes, lean operations and,
    638
    Shader Electronics, LP problem
    example, T3 – 1 to T3 – 7GENERAL INDEX I25
    Shadow price, 707
    Shared value, 194
    Shell Lubricants, 299
    Sherwin Williams, 163
    Shipping systems, 456 – 457
    Shortest processing time (SPT), 611 ,
    614
    Short-range forecast, 108
    Short-term scheduling, 599 – 634 . See
    also Scheduling
    airlines, 619
    cyclical scheduling, service
    employees and, 620 – 621
    ethical dilemma, 621 – 622
    finite capacity (FCS) and, 617 – 618fi
    nite loading, and, 604
    importance of, 602
    infinite loading and, 604
    issues and, 602 – 605
    limitations of rule-based
    dispatching systems, 616 – 617
    loading jobs, 605 – 610
    priority rules for sequencing jobs
    and, 611 – 614
    process-focused facilities and, 605
    repetitive facilities and, 605
    scheduling criteria, 604 – 605
    sequencing, jobs in work centers,
    611 – 617
    services and, 618 – 621
    using software, 622 – 624
    Shouldice hospital, 163 – 164 , 284
    Shrinkage, 494
    Siemens, 179 , 382
    Significant events in OM, 10
    Signs, symbols, artifacts, 375
    Simplex method of LP, 713 , T3 – 1
    to T3 – 10 . See also Linear
    programming
    artificial and surplus variable, T3 – 7
    converting constants to equations,
    T3 – 2
    definition, 713 , T3 – 2
    setting up first simplex table, T3 – 2
    to T3 – 4
    simplex solution procedures, T3 – 4
    to T3 – 6
    solving minimization problems,
    T3 – 7 to T3 – 8
    summary of simplex steps for
    maximization problems, T3 – 6
    Simulation, 791 – 808
    advantages and disadvantages, 793
    defined, 792
    inventory example, 797 – 799
    Monte Carlo, 794 – 797
    queuing problem and, 797
    using software, 800 – 801
    Singapore Airlines, 257
    Single channel queuing model/
    Poisson arrivals/ exponential
    service times, 754 – 757
    Single sampling, T2 – 2
    Single-factor productivity, 14
    Single-period inventory model,
    513 – 514
    Single-phase system, 752
    Single-product case, break-even
    analysis and, 319 – 320
    Single-server queuing system, 751 ,
    754 – 757
    Single-stage control of
    replenishment, 452
    Six Sigma, 221 – 222 , 222 n, 261
    Size of arrival population, 749
    SKUs, 495
    Slack time, 75 – 76
    Slack variables, simplex method and,
    T3 – 2
    Slotting fees, 374 , 392
    Smith, Adam, 412
    Smiths Aerospace, 30
    Smoothing constant, 116 – 117
    SMT’s negotiation with IBM, 787 –
    788
    Snapper Lawn Mowers, 534 – 535
    Social accounting, 197
    Social responsibility, OM and, 19
    Sociological and demographic
    change, generating new
    products and, 166
    Software. See Excel OM; Excel
    spreadsheets, creating your
    own; POM for Windows
    Solutions to even-numbered
    problems, A8 – A19
    Solved Problems
    aggregate planning, 554 – 555
    capacity and constraint
    management, 328 – 329
    decision making, 691 – 692
    forecasting, 144 – 146
    human resources, job design, and
    work measurement, 432 – 433
    inventory management, 517 – 519
    layout strategy, 394 – 396
    lean operations, 653 – 654
    learning curves, 784 – 785
    linear programming, 718 – 719
    location problems, 355 – 357
    maintenance and reliability, 672
    modem production, 53
    MRP and ERP and, 589 – 592
    process strategy, 300
    product design, 186
    project management, 90 – 93
    quality, 236
    queuing, 766 – 768
    short-term scheduling, 624 – 626
    simulation, 801 – 802
    statistical process control, 267 – 268
    supply chain management, 465 – 466
    supply chain management
    analytics, 480 – 481
    sustainability, 206 – 207
    tire industry globalization, 52 – 53
    transportation modeling, 740 – 741
    Solving routing and scheduling
    vehicle problems, T5 – 4
    Sony, 32 , 46 , 225
    Source inspection, 231
    Sourcing issues: make-or-buy vs.
    outsourcing, 446 – 447
    South Korea
    SEATO and, 31
    South Korea, manufacturing in, 51
    Southern Recreational Vehicle Co.,
    362
    Southwest Airlines, 38 , 257 , 313 , 414
    activity mapping, 43 , 44
    activity mapping of low-cost
    competitive advantage, 44
    Southwestern University
    forecasting, 154 – 155
    project management, 98 – 99
    quality management, 239 – 240
    Spatial layout, 375
    Special considerations for service
    process design, 293 – 294
    Special packaging, 454
    Specialty retail shops, forecasting
    and, 140
    St. John’s Health Center, 415
    Staffing
    capacity, 536
    global talent, 34 – 35
    organization, 43 – 44
    work cells, 384 – 386
    Stakeholders, 19
    Standard deviation, calculation, 248 n
    Standard deviation of the regression,
    133
    Standard error of the estimate,
    133 – 134
    Standard for the exchange of product
    data (STEP), 172
    Standard normal distribution, T1 – 5
    to T1 – 7
    Standard normal table, A2 – A3 , T1 – 5
    to T1 – 7
    Standard time, labor standards and,
    422 , 423
    Standard work practice, TPS and,
    650
    Standardization, supply-chain
    management and, 453
    Starbucks Coffee
    productivity and, 14
    scheduling software, 619
    simulation and, 797
    Statistical process control (SPC), 226 ,
    229 – 230 , 245 – 278
    acceptance sampling, 262 – 265
    assignable variations, 247
    average outgoing quality (AOQ)
    and, 264 – 265I26 GENERAL INDEX
    c-charts, 257 – 259
    central limit theorem and, 248 – 249
    control charts, 230 , 241 , 247 – 248
    control charts for attributes, 256 –
    259
    control charts for variables, 248
    definition, 246
    managerial issues and control
    charts, 259 – 260
    mean chart limits, 250 – 253
    natural variations, 246 – 247
    operating characteristic curve and,
    263 – 264
    patterns on control charts, 259
    p-charts, 256 – 257 , 259
    process capability, 260 – 262
    process capability index and,
    261 – 262
    process capability ratio and, 260 –
    261
    R-chart, 248, 253 – 254
    samples, 247
    setting mean and range charts,
    254 – 256
    setting range chart limits and,
    253 – 254
    using ranges and mean charts,
    250 – 255
    using software, 266 – 267
    variables for, 248
    which chart to use, 259
    x-bar chart, 248 , 250 – 253 , 259
    Statistical tools for managers, T1 – 1
    to T1 – 8
    continuous probability
    distributions, T1 – 4 to T1 – 7
    discrete probability distribution,
    T1 – 2 to T1 – 4
    expected value of a discrete
    probability distribution, T1 – 3
    variance of a discrete probability
    distribution, T1 – 3 to T1 – 4
    Status, viewing in Microsoft Project,
    87 – 88
    Steakhouses restaurant chain, 289
    Stepping-stone method,
    transportation model and,
    734 – 737
    Stock-keeping units (SKUs), 377
    Stop & Shop, 376
    Stopwatch studies, 421 – 424
    Storage, 289 n, 478 – 479
    Strategic importance of:
    layout decisions, 370
    learning curves, 782 – 783
    location, 340 – 341
    maintenance and reliability, 662 –
    663
    short-term scheduling, 602
    supply-chain management, 444 –
    446
    Strategic OM decisions, 41 – 43
    Strategy
    aggregate planning, 535 – 538
    capacity and, 311
    competitive advantages and, 163 – 164
    definition, 36
    developing missions and, 35 – 36
    driven investments, applying
    investment analysis to, 324 – 326
    global operation options and, 49
    human resource, 410
    international, 49
    issues in operations and, 41 – 44
    life cycle and, 164 – 165
    multidomestic, 49
    operations in a global environment,
    29 – 58
    quality and, 216
    service locations and, 350 – 351
    transnational, 50
    Strategy, aggregate planning
    development and
    implementation
    key success factors, 41 – 42
    Strategy development and
    implementation, 41 – 44
    building and staffing the
    organization, 43 – 44
    core competencies and, 42 – 43
    implementing 10 strategic OM
    decisions and, 44
    integrating OM and other
    activities, 43
    key success factors, 41 – 43
    Structure for MRP, 571 – 575
    Subaru, 205
    Subcontracting, 536
    Sub-Saharan Africa, 460
    Subtours, T5 – 8
    Super Fast Pizza, 40
    Supplier selection analysis, 476 – 477
    Suppliers
    audits of, 195
    development, 454 – 455
    evaluation, 454
    lean operations in services and, 652
    location in proximity to, 344
    partnerships in lean operations and
    JIT, 640 – 642
    Supply chain, 6
    partnering, 19
    risk, 449 – 451
    Supply-chain management, 441 – 470
    Supply chain management analytics,
    471 – 486
    evaluation techniques, 472 – 474
    managing the bullwhip effect, 474 – 476
    supplier selection analysis and,
    476 – 477
    Supply Chain Operations
    Reference model (SCOR),
    463 – 464
    transportation mode analysis and,
    477 – 478
    warehouse storage, 478 – 479
    Supply Chain Operations Reference
    model (SCOR), 463 – 464
    benchmarking and, 463
    definition, 444
    distribution management, 459
    E-procurement and, 456
    ethics and, 460 , 465
    forecasting and, 109 – 110
    globalization, 33
    integrated and, 451 – 454
    inventory assets, 461 – 463
    JIT and, 451
    joint ventures and, 448
    keiretsu networks and, 448 – 449
    logistics management, 456 – 459
    Manager and Planner, 9
    measuring performance and,
    461 – 464
    mitigation tactics and, 450
    objective of, 444
    risk, 449 – 451
    software, 584
    sourcing issues: make-or-buy vs.
    outsourcing, 446 – 447
    sourcing strategies and, 447 – 449
    strategic importance of, 444 – 446
    strategies and, 447 – 449
    suppliers, few, many and, 447
    supply base, building, 454 – 456
    Supply Chain Operations
    Reference (SCOR) model,
    463 – 464
    sustainability and, 460 – 461
    vertical integration, 448
    virtual companies, 449
    Surplus variables, T3 – 7
    Surrogate (substitute) interaction,
    process, 180
    Survey, market, 111 – 112
    Sustainability
    commons, 195
    corporate social responsibility, 194
    end-of-life phase, 203
    lean operations, 652
    logistics, 200 – 202
    OM and, 19
    product design, 198 – 200
    product design and, 173
    production process, 200
    regulations and industry standards,
    203 – 205
    supply-chain management, and,
    460 – 461
    systems view, 195
    triple bottom line, 195 – 198
    Sustainability software, 584
    SWOT analysis, 41
    Symbols, servicescapes, and, 375
    System nervousness, 575
    Statistical process control (Continued)GENERAL INDEX I27
    System reliability, 663 – 665
    Systems view of sustainability, 195
    T
    Tables
    control chart limits, 252
    learning-curve approach, 779 – 782
    Normal curve areas, A2–A3
    Poisson distribution, A4
    random numbers, 795, A4
    TacoBell, 164
    forecasting, 140
    lowering costs with productivity
    and energy savings, 18
    product development, 174
    Taguchi concepts, 224 – 225
    Takt time, 384 , 384 n
    Takumi, 219
    TAL Apparel Ltd., 452 , 453
    Tangible costs, location strategies
    and, 342
    Target-oriented quality, 225
    Teams, self-directed, 414
    Techniques for evaluating supply
    chain, 472
    Technological change, generating new
    products and, 166
    Technological forecasts, 109
    Technology. See also Production
    technology
    acquiring by purchasing firm, 174
    focus, 288
    group, 177
    human resource constraints, 410
    Teijin Ltd, 174 – 175
    Teijin Seiki, 30
    Temperature, in work area, 417
    Temple University Hospital, 776 , 778
    Ten OM strategy decisions, 7 , 8 , 39 ,
    43 , 44
    Tesla, 194
    Test scores, forecasting success by,
    141
    Texas Instruments, 49 , 218 , 222
    Thales, 30
    Theory of comparative advantage, 46
    Theory of constraints (TOC),
    capacity and constraint
    management, 317
    Therbligs, 426
    Third-party logistics (3PL), 458 – 459
    Three Mile Island nuclear facility,
    417
    Three time estimates in PERT, 77 – 78
    3M, 162
    3-D printing, 172
    Throughput, lean operations and,
    640
    Throughput time, 315
    Time aggregation, 507
    Time estimates, in PERT, 77 – 78
    Time fences, 575
    Time horizons, 108 – 109
    Time Measurement Units (TMUs),
    426
    Time series forecasting, 112 – 131
    cycles in, 113
    cyclical variations in data, 131
    decomposition of time series and,
    112 – 113
    exponential smoothing and,
    116 – 117
    exponential smoothing with trend
    adjustment, 120 – 124
    least-square methods, 124 – 126
    mean absolute deviation, 118 – 119
    measuring forecast error, 117 – 120
    moving averages and, 114 – 116
    naive approach to, 113 – 114
    random variations and, 113
    seasonal variations in data,
    126 – 131
    seasonality, 112 – 113
    smoothing constant, 116 – 117
    trend and, 112
    trend projections and, 124 – 126
    Time status, viewing in Microsoft
    Project, 87 – 88
    Time studies, labor standards and,
    421 – 425 , 430
    Time-based competition, product
    development and, 173 – 175
    alliances, 175
    joint ventures, 174 – 175
    purchasing technology by buying a
    firm, 174
    Time-function mapping, 289
    Tools of total quality management,
    225 – 230 . See also Control
    charts
    cause and effect diagrams, 227
    check sheets, 226
    flowcharts, 228 – 229
    histogram, 229
    knowledge of, 225
    Pareto charts, 227 – 228
    scatter diagrams, 227
    statistical process control,
    229 – 230
    Toray Industries, 30
    Toshiba, 497
    Total productive maintenance
    (TPM), 671
    Total quality management (TQM),
    219 – 230
    benchmarking, 222 – 223
    continuous improvement, 220 – 221
    definition, 219
    employee empowerment, 222
    flow chart, 216
    just-in-time, 224
    plan-do-check-act (PDCA),
    220 – 221
    services, 232 – 234
    Six Sigma, 221 – 222
    Taguchi concepts, 224 – 225
    tools of, 225 – 230
    total productive maintenance
    (TPM), 671
    Total slack time, 76
    Tour, T5 – 15
    Tour de France, 85
    Toy manufacturing in China, 48
    Toyota Motor Corp., 34 , 110 , 164 ,
    651
    annual inventory turnover, 463
    Global Company Profile, 636 – 637
    level strategy, 538
    low-emission vehicles, 194
    reworking production line, 650
    supply chain risks and tactics,
    450
    Toyota Production System, 636 – 637 ,
    649 – 650
    continuous improvement and, 649
    defined, 638
    respect for people, 649
    standard work practice, 650
    Toys “R” Us, 421
    TQM. See Total quality management
    (TQM)
    Tracking signal, forecasts and, 138
    Transition to production, 184
    Transnational strategy, global
    operations and, 50
    Transportation
    location strategies and, 349 – 350
    waste, 289 n
    Transportation matrix, 731
    Transportation method of linear
    programming, 543 – 545
    Transportation mode analysis,
    477 – 478
    Transportation models, 729 – 746
    defined, 730
    degenergy and, 737 – 738
    demand not equal to supply and,
    737
    initial solution and, 732 – 734
    intuitive lowest-cost method and,
    733 – 734
    location and strategies and,
    349 – 350
    northwest-corner rule and, 732 – 733
    special issues in, 737 – 738
    stepping-stone method and,
    734 – 737
    using software, 738 – 739
    Transportation problems,
    MODI and VAM methods and,
    T4 – 1 to T4 – 10
    MODI method, T4 – 2 to T4 – 4
    VOGEL’s approximation method
    (VAM), T4 – 4 to T4 – 7
    Traveling salesman problem (TSP),
    T5 – 4 , T5 – 5 to T5 – 8I28 GENERAL INDEX
    Trend projections, forecasting and,
    112 , 124 – 126
    Triple bottom line, 195 – 198
    Trucking
    logistics management and, 457
    sustainability and, 201
    Trust, managing the supply chain
    and, 453
    TRW airbag plant, 222
    Turkish airline, 257
    24/7 operations, scheduling services
    and, 619
    Twin Falls, Idaho, call center, 50
    Two-bin system, 493
    Two-sided window, T5 – 12
    Type I error, 263
    Type II error, 263
    Types of forecasts, 109
    Tyson, 450
    U
    Uber Technologies, Inc., 24
    Umpires, major league baseball, 610
    U.N. Framework Convention on Climate
    Change (UNFCCC), 204
    Understand markets, global view of
    operations and, 34
    Undirected arcs, routing and
    scheduling vehicles, T5 – 3
    Unifi, 445
    United Airlines, 354
    United States trade agreements, 34
    Unlimited arrival population, 749
    UPS (United Parcel Service), 416 ,
    426 , 457 , 651
    logistics, 201 , 458
    maintenance and, 662
    sustainable product design, 198
    Uruguay, MERCOSUR and, 34
    U.S., NAFTA and, 34
    U.S. Army, 792
    US Airways, 257
    U.S. Navy, 67
    Using ExcelOM, A5
    Using POM for Windows, A6 – A7
    Utilization, capacity and, 310
    V
    Validity range for the shadow price,
    LP and, 707
    Value, shared, 194
    Value analysis, 173
    Value engineering, product
    development and, 170
    Value stream mapping (VSM), 290 – 291
    Value-chain analysis, 40
    Values, location strategy and, 343
    Values for use in Poisson distribution,
    A4
    Variability, lean operations and,
    639 – 640 , 643 – 644
    Variability in activity times, project
    management and, 77 – 82
    probability of project completion,
    79 – 82
    three time estimates in PERT,
    77 – 78
    Variable costs, break-even analysis
    and, 318 , 324
    Variable data, control charts for, 259
    Variable inspection, 232
    Variable(s), control charts for, 248 ,
    259
    Variance of a discrete probability
    distribution, statistical tools
    and, T1 – 3 to T1 – 4
    Vehicle routing and scheduling, T5 – 1
    to T5 – 18
    characteristics of problems, and,
    T5 – 3 to T5 – 5
    introduction, T5 – 2
    objectives of routing and
    scheduling problems, T5 – 2
    other problems, T5 – 13 to T5 – 14
    routing service vehicles, T5 – 5 to
    T5 – 11
    scheduling service vehicles, T5 – 11
    to T5 – 13
    Vendor-managed inventory (VMI),
    452 – 453
    Vertical integration, supply-chain
    management and, 448
    Video Case Studies:
    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
    Arnold Palmer Hospital:
    capacity planning, 333 – 334
    culture of quality, 240
    hospital layout, 402 – 404
    JIT, 656
    process analysis, 304
    project management, 99 – 100
    supply chain and, 468
    Darden Restaurants:
    location strategies, 362 – 363
    outsourcing offshore, 56
    statistical process control, 276
    supply chain, 467
    Frito-Lay:
    maintenance, 674
    managing inventory, 525 – 526
    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
    Orlando Magic:
    forecasting and, 154 – 155
    MRP and, 595 – 596
    revenue management, 560
    short-term scheduling, 631 – 632
    sustainability, 208–209
    Red Lobster, location and
    strategies, 362 – 363
    Regal Marine:
    product design, 189 – 190
    strategy at, 55
    supply-chain management at,
    467 – 468
    Ritz-Carlton Hotel company, 242
    Wheeled Coach:
    inventory control, 526
    layout strategy, 404
    MRP and, 596
    process strategy, 302 – 303
    Viewing the project schedule,
    Microsoft Project and, 86 – 87
    Virgin Australia, 257
    Virtual companies, sourcing strategies
    and, 449
    supply chain strategies and, 449
    Virtual reality technology, 172 – 173
    Vision systems, production
    technology and, 296
    Visual workplace, job design and, 420
    Vizio, Inc., 449
    Vogel’s approximation method
    (VAM), transportation
    problems and, T4 – 4 to T4 – 7
    Volkswagen, 173 , 349 – 350
    Volvo, 32
    W
    Waiting line models, 747 – 774
    arrival characteristics and, 749 – 750
    characteristics of waiting line
    system, 749 – 752
    measuring queue performance and, 752
    multiphase system and, 752
    multiple-server queuing system
    and, 752
    other queuing approaches, 765
    queuing costs, 753 – 754
    queuing models, varieties of,
    754 – 765
    queuing theory, 748 – 749
    service characteristics and, 751 – 752
    single-phase system and, 752
    use of tables and, 759 – 761
    using software, 766
    waiting-line characteristics and,
    750 – 751
    Waiting lines, 748GENERAL INDEX I29
    Walmart, 375
    competing on cost and, 38
    cross-docking strategy, 376
    retail layout and, 375
    RFID, 475
    RFID and supply chain, 452 , 475
    scheduling, 652
    supply chain management and,
    110 , 445 , 460 , 463
    supply chain risks and tactics, 450
    supply-chain review, 196
    Walmart Marketplace, 454
    Walt Disney Co. See also Walt Disney
    Parks and Resorts
    Lion King revenue management,
    548
    Walt Disney Parks and Resorts
    experience differentiation and, 38
    forecasting and, 110 – 111
    Global Company Profile, 106 – 107
    maintenance, 662
    new products, 162
    waiting lines and, 748
    Warehouse
    logistics management and, 457 –
    458
    storage, 478 – 479
    Warehousing layout, 370 , 375 – 377
    cross-docking, 376
    customizing, 377
    objective, 375
    random stocking, 377
    Waste, 289 n
    Waste elimination, lean production
    and, 638 – 639
    Waterfall approach to projects, 67
    Waterways, logistics management
    and, 457
    WBS (work breakdown structure),
    64 – 65
    Weeks of supply, 462 – 463
    Weighted moving average forecasts,
    115–116
    Western Electric Hawthorne plant,
    413
    What is a learning curve?, 776 – 777
    Wheeled Coach
    Global Company Profile, 564–565
    inventory control, 526
    layout strategy, 404
    MRP and, 564 – 565 , 568 , 596
    process strategy, 302 – 303
    Where are OM jobs?, 7 – 8
    Whirlpool, 35 , 201 , 296
    Why study OM, 6 – 7
    Why use linear programming, 700
    Wilheim Karmann, 46
    Windows, Microsoft’s development
    structure, 64 – 65
    Winter Park Hotel, 772
    Work balance chart, 385
    Work breakdown structure (WBS),
    project management and,
    64 – 65
    Work cells, layout and, 371 , 383 –
    386
    advantage of, 384
    focused work center and focused
    factory, 386
    requirements of, 383 – 384
    staffing and balancing, 384 – 386
    Work environment
    ergonomics and, 415 – 417
    job design and, 417
    Work measurement (labor standards)
    historical experience and, 421
    predetermined time standards and,
    425 – 427
    time studies and, 421 – 425
    work sampling and, 427 – 430
    Work order, 178
    Work rules, human resources and,
    412
    Work sampling, labor standards and,
    427 – 429
    Work schedules, labor planning and,
    411 – 412
    Work-in-process (WIP) inventory,
    490 , 604 – 605
    World Trade Organization (WTO), 34
    ethical issues, 35
    X
    x-bar chart, 248 , 250 – 253 , 259
    Xerox, 218 , 223
    Y
    Yield management, aggregate
    planning and, 547 – 550
    Z
    z values, A2 – A3
    sample size for time study, 424
    Zero opportunity costs, 609
    Zhou Bicycle Co., 524 – 525

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