Ebook PDF Operations Management Sustainability and Supply Chain Management 13th Edition
Ebook PDF Operations Management Sustainability and Supply Chain Management 13th Edition
OM in Action: Mass Customization for Straight Teeth 285 OM in Action: Matching Airline Capacity to Demand 312
Process Comparison 286 Service-Sector Demand and Capacity
Selection of Equipment 288 Management 313
Process Analysis and Design 289 Bottleneck Analysis and the Theory of Constraints 313
Flowchart 289 Theory of Constraints 316
Bottleneck Management 317
Time-Function Mapping 289
Break-Even Analysis 317
Process Charts 290
Single-Product Case 318
Value-Stream Mapping 290
Multiproduct Case 319
Service Blueprinting 292
Reducing Risk with Incremental Changes 321
Special Considerations for Service Process
Strategies 293 Applying Expected Monetary Value (EMV)
to Capacity Decisions 322
Production Technology 294
Applying Investment Analysis to Strategy-Driven
Machine Technology 294 Investments 323
Automatic Identification Systems (AISs) and RFID 295 Investment, Variable Cost, and Cash Flow 323
Process Control 295 Net Present Value 323
OM in Action: 500,000 Tons of Steel; 14 Jobs 296 Summary 325
Vision Systems 296 Key Terms 326
Robots 296 Discussion Questions 326
Automated Storage and Retrieval Systems Using Software for Break-Even Analysis 326
(ASRSs) 296 Solved Problems 327
Automated Guided Vehicles (AGVs) 296 Problems 329
Flexible Manufacturing Systems (FMSs) 297 VIDEO CASE STUDY 333
Computer-Integrated Manufacturing (CIM) 297 Capacity Planning at Arnold Palmer Hospital 333
OM in Action: Technology Changes the Hotel Industry 298 Bibliography 334
Technology in Services 298 Supplement 7 Rapid Review 335
Process Redesign 298 Self Test 336
Summary 299
Key Terms 299 Chapter 8 Location Strategies 337
Ethical Dilemma 300 GLOBAL COMPANY PROFILE: FedEx: Location Provides
Discussion Questions 300 Competitive Advantage for FedEx 338
Solved Problem 300 The Strategic Importance of Location 340
Problems 301 Factors That Affect Location Decisions 341
CASE STUDY 302 Labor Productivity 342
Rochester Manufacturing’s Process Decision 302 Exchange Rates and Currency Risk 342
VIDEO CASE STUDIES 302 Costs 342
Process Strategy at Wheeled Coach 302 OM in Action: Iowa—Home of Corn and Facebook 343
Alaska Airlines: 20-Minute Baggage Process— Political Risk, Values, and Culture 343
Guaranteed! 303 Proximity to Markets 343
Process Analysis at Arnold Palmer Hospital 303 Proximity to Suppliers 344
Endnotes 304 Proximity to Competitors (Clustering) 344
Bibliography 304 Methods of Evaluating Location Alternatives 344
Chapter 7 Rapid Review 305 OM in Action: Denmark’s Meat Cluster 345
Self Test 306 The Factor-Rating Method 345
Locational Cost–Volume Analysis 346
Supplement 7 Capacity and Constraint Center-of-Gravity Method 348
Management 307
Transportation Model 349
Capacity 308 Service Location Strategy 350
Design and Effective Capacity 308 OM in Action: How La Quinta Selects Profitable Hotel
Capacity and Strategy 310 Sites 351
Capacity Considerations 311 Geographic Information Systems 351
Managing Demand 311 Summary 353
xii TA B L E O F C O N T EN T S
The videos provide an inside look at: Celebrity Cruises: Operations Management at Sea Video Case
• the 10 operations decisions at Celebrity On any given day, Celebrity Cruises, Inc. has tens of thousands and attention to detail. Processes for food preparation, laundry,
of passengers at sea on more than a dozen spectacular ships, quality, and maintenance are complete and detailed.
Cruises (Chapter 1); spanning 7 continents and 75 countries. With this level of capi- A cruise ship, as a moving city, requires a comprehensive and
• how Celebrity Cruises designs a new tal investment along with the responsibility for the happiness and
safety of so many passengers, excellence in operations is required.
precise supply chain that replenishes everything from food to fuel
to soap and water. Land-based buyers support Celebrity’s annual
product (Chapter 5); To make it all work, the 10 operations management decisions food and beverage purchases that exceed $110 million. Included
must be executed flawlessly. From product design (which encom - in these expenditures are weekly shipments of 6 to 10 contain-
• Celebrity’s “Save-the-Waves” sustain- passes the ship’s layout, the food, and 300 destinations), to sched- ers from the Miami headquarters destined for ships in European
uling, supply chain, inventory, personnel, maintenance, and the ports. An onboard staff organizes inventories to support this mas-
ability program (Supplement 5); processes that hold them together, OM is critical. sive operation. The logistics effort includes hedging the weekly
• how Celebrity Cruises treats quality Cruise lines require precise scheduling of ships, with down-
to-the-minute docking and departure times. In addition to ship
use of 24,000 gallons of fuel per ship with purchases 6 years into
the future. Reliable global supply chains have been developed
as the heartbeat of the company and port scheduling, some 2,000 plus crew members must be that deliver the required inventory on a tight time frame.
scheduled. And there are many schedule variations. Entertainers These crucial shipboard systems typically represent the best of
(Chapter 6); and may arrive and leave at each port, while officers may have a operations management. Such is the case at Celebrity Cruises.
schedule of 10 weeks on and 10 weeks off. Other crew members
• inventory management at Celebrity have onboard commitments varying from 4 to 9 months. Discussion Questions*
Cruises (Chapter 12). With $400 million invested in a ship and more than 5,000
lives involved in a cruise, detailed processes to ensure mainte- 1. Describe how the 10 OM decisions are implemented at
nance and reliability are vital. The modern ship is a technologi- Celebrity Cruises, Inc.
cal marvel with hundreds of electronic monitors operating 24/7 2. Identify how the 10 OM decisions at Celebrity Cruises differ
to track everything from ship speed and location, to sea depth, from those decisions at a manufacturing firm.
to shipboard power demand and cabin temperature. 3. Identify how the 10 OM decisions at Celebrity Cruises differ
Celebrity’s ship layout, destinations, and routing are adjusted from those decisions at a retail store.
to meet seasonal demands and the expectations of its premium
4. How are hotel operations on a ship different from those at a
market segment. With destinations from Alaska to Europe to
land-based hotel?
Asia, crews are recruited worldwide, with as many as 70 national-
ities represented. Instilling a quality culture requires an aggressive *You may wish to view the video that accompanies this case before
quality service orientation and, of course, meticulous cleanliness addressing these questions.
xix
xx PR E FAC E
In addition, we continue to offer our previous Video Cases that cover: Alaska Airlines, Orlando
Magic basketball team, Frito-Lay, Darden/Red Lobster Restaurants, Hard Rock Cafe, Arnold
Palmer Hospital, Wheeled Coach Ambulances, and Regal Marine.
We take the integration of our video case studies seriously, and for this reason, all of our videos
are created by the authors, with the outstanding coauthorship of Beverly Amer at Northern Ari-
zona University, to explicitly match text content and terminology.
Chapter 4: Forecasting
There are eight new homework problems in this chapter.
Cruises Designs a New Ship.” We replaced the section on PCN Analysis with a new discussion on
service design. We added two discussion questions and have seven new homework problems in this
chapter.
Module F: Simulation
There are three new homework problems in this module.
Learning Aids
Right at the time of learning, students can access Learn-
ing Aids like Help Me Solve This, Videos from the a uthors
of similar problems being solved, Ask My Instructor, and
eText Pages. All of which provides the student feedback
and assistance when they need it most.
PRE FACE xxv
becoming more important, and instructors often ask Program 2.1 illustrates how to build an Excel spreadsheet for the data in Example 1. In this example the factor rating method is
used to compare National Architects’ three potential outsourcing providers.
their students to develop their own Excel spreadsheet This program provides the data inputs for seven important factors, including their weights (0.0–1.0) and ratings (1–5 scale where
5 is the highest rating) for each country. As we see, BIM is most highly rated, with a 3.9 score, versus 3.3 for S.P.C. and 3.8 for Telco.
models. For this reason, we provide “Creating Your Own Enter scores (that come from manager ratings)
Enter factor names and for BIM, S.P.C., and Telco on each factor in
Excel Spreadsheets,” examples toward the end of numer- weights in columns A and B. columns C, D, and E.
ous chapters.
Program 2.1
Using Excel to Develop a Factor Rating Analysis, With Data from Example 1
X USING EXCEL OM
Excel OM (free with your text and also found in MyLab Operations Management) may be used to solve Example 1 (with the
Factor Rating module).
AUTHORS of North Texas and his Ph.D. in Management and Statistics from Arizona State
University. He was previously a member of the faculty at the University of
Memphis, the University of Oklahoma, Virginia Commonwealth University, where
JAY HEIZER he was department chair, and the University of Richmond. He has also held visiting
positions at Boston University, George Mason University, the Czech Management
Center, and the Otto-Von-Guericke University, Magdeburg.
Dr. Heizer’s industrial experience is extensive. He learned the practical side of
operations management as a machinist apprentice at Foringer and Company, as a
production planner for Westinghouse Airbrake, and at General Dynamics, where
he worked in engineering administration. In addition, he has been actively involved
in consulting in the OM and MIS areas for a variety of organizations, includ-
ing Philip Morris, Firestone, Dixie Container Corporation, Columbia Industries,
and Tenneco. He holds the CPIM certification from APICS—the Association for
Operations Management.
Professor Heizer has co-authored five books and has published more than
30 articles on a variety of management topics. His papers have appeared in the
Academy of Management Journal, Journal of Purchasing, Personnel Psychology,
Production & Inventory Control Management, APICS—The Performance Advantage,
Journal of Management History, IIE Solutions, and Engineering Management,
among others. He has taught operations management courses in undergraduate,
graduate, and executive programs.
BARRY RENDER The Charles Harwood Professor Emeritus of Operations Management, Crummer
Graduate School of Business, Rollins College, Winter Park, Florida. He received his
B.S. in Mathematics and Physics at Roosevelt University, and his M.S. in Operations
Research and Ph.D. in Quantitative Analysis at the University of Cincinnati. He
previously taught at George Washington University, University of New Orleans,
Boston University, and George Mason University, where he held the Mason
Foundation Professorship in Decision Sciences and was Chair of the Decision
Sciences Department. Dr. Render has also worked in the aerospace industry for
General Electric, McDonnell Douglas, and NASA.
Professor Render has co-authored 10 textbooks for Pearson, including Managerial
Decision Modeling with Spreadsheets, Quantitative Analysis for Management, Service
Management, Introduction to Management Science, and Cases and Readings in
Management Science. Quantitative Analysis for Management, now in its 14th edi-
tion, is a leading text in that discipline in the United States and globally. Dr.
Render’s more than 100 articles on a variety of management topics have appeared
in Decision Sciences, Production and Operations Management, Interfaces, Information
and Management, Journal of Management Information Systems, Socio-Economic
Planning Sciences, IIE Solutions, and Operations Management Review, among others.
Dr. Render has been honored as an AACSB Fellow and was twice named a Senior
Fulbright Scholar. He was Vice President of the Decision Science Institute Southeast
Region and served as Software Review Editor for Decision Line for six years and
as Editor of the New York Times Operations Management special issues for five
years. For nine years, Dr. Render was President of Management Service Associates
of Virginia, Inc., whose technology clients included the FBI, NASA, the U.S. Navy,
Fairfax County, Virginia, and C&P Telephone. Dr. Render has received Rollins
College’s Welsh Award as leading Professor and was selected by Roosevelt University
as the recipient of the St. Claire Drake Award for Outstanding Scholarship. Dr.
Render also received the Rollins College MBA Student Award for Best Overall
Course and was named Professor of the Year by full-time MBA students.
xxvi
ABOU T TH E AUT H ORS xxvii
Professor of Operations Management and Carson College of Business Ph.D. CHUCK MUNSON
Program Director, Washington State University, Pullman, Washington. He received
his BSBA summa cum laude in finance, along with his MSBA and Ph.D. in opera-
tions management, from Washington University in St. Louis. For three years, he
worked as a financial analyst for Contel Telephone Corporation.
Professor Munson serves as a senior editor for Production and Operations
Management, and he serves on the editorial review board of four other jour-
nals. He has published more than 25 articles in such journals as Production and
Operations Management, IIE Transactions, Decision Sciences, Naval Research
Logistics, European Journal of Operational Research, Journal of the Operational
Research Society, and Annals of Operations Research. He is editor of the book The
Supply Chain Management Casebook: Comprehensive Coverage and Best Practices
in SCM, and he has co-authored the research monograph Quantity Discounts:
An Overview and Practical Guide for Buyers and Sellers. He is also coauthor of
Managerial Decision Modeling: Business Analytics with Spreadsheets (4th edition),
published by deGruyter.
Dr. Munson has taught operations management core and elective courses at the
undergraduate, MBA, and Ph.D. levels at Washington State University. He has also
conducted several teaching workshops at international conferences and for Ph.D.
students at Washington State University. His major awards include winning the
Sahlin Faculty Excellence Award for Instruction (Washington State University’s
top teaching award, 2016); being a Founding Board Member of the Washington
State University President’s Teaching Academy (2004); winning the WSU College
of Business Outstanding Teaching Award (2001 and 2015), Research Award (2004),
and Service Award (2009 and 2013); and being named the WSU MBA Professor of
the Year (2000 and 2008).
xxviii PR EFAC E
Instructor’s Solutions Manual The Instructor’s Solutions Manual, written by the authors, contains the answers to all of the
discussion questions, Ethical Dilemmas, Active Models, and cases in the text, as well as worked-
out solutions to all the end-of-chapter problems, additional homework problems, and additional
case studies.
Test Bank • More than 1,500 multiple-choice, true-or-false, and essay questions
authored by Jianli Hu, Cerritos College • Keyed by learning objective
• Classified according to difficulty level
• AACSB learning standard identified (Ethical Understanding and Reasoning; Analytical Thinking
Skills; Information Technology; Diverse and Multicultural Work; Reflective Thinking; Application
of Knowledge)
PowerPoints An extensive set of PowerPoint presentations is available for each chapter. With well over 2,000 slides,
authored by Jeff Heyl, Lincoln University this set has excellent color and clarity.
A set of PowerPoints is also available as an ADA-compliant version that meet accessibility standards
for students with disabilities.
Features include:
• Keyboard and screen reader access
• Alternative text for images
• High contrast between background and foreground colors
Excel Data Files, Excel OM, POM for • The data files are prepared for specific examples and allow users to solve all the marked text
Windows, and Active Models examples without reentering any data.
developed by Howard Weiss, Temple • POM for Windows is a powerful tool for easily solving OM problems.
University • Excel OM is our exclusive user-friendly Excel add-in. Excel OM automatically creates worksheets
to model and solve problems. This software is great for student homework, what-if analysis, and
classroom demonstrations.
• Active Models are Excel-based OM simulations, designed to help students understand the quan-
titative methods shown in the textbook examples. Students may change the data to see how the
changes affect the answers.
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one inexperienced in this work, although many machine
metalworkers are familiar with the process.
Details of a Water Turbine That will Give Considerable Power and Speed for
Driving a Generator or Small Machine
Having made a hunting knife and desiring a suitable sheath for it, I
devised that shown in the sketch, which has the special feature that
the guard on the knife handle locks in slots cut through the sheath.
Two pieces of leather were used, one for the back section and the
other for the shorter front piece. The sewing at the edges of the two
sections extends from the level of the slots around the lower end of
the sheath. Two slots were cut vertically through the upper portion of
the sheath, which is fastened to the belt of the wearer, as indicated.
—George H. Flint, Harrison, Me.
Discarded Buggy Springs for Diving Board
Old leaf springs obtained from a buggy were used to give the
necessary spring to a diving board. One of the springs was set at
each side of the board about 2¹⁄₂ ft. from the fixed end, and they
were joined by a cross support of 2 by 4-in. wood, on which the
spring board rested. Straps to check the strain on the springs from
the rebound were provided.
Water Wheel Turns Spit over Campfire
When a camp fire is placed near a stream, water power may be
utilized to turn the spit in roasting meat over the fire. The rod, on
which the roast is suspended, should be extended, and supported at
one end, over the water. A small paddle wheel may then be rigged
up easily on the rod.
A Detachable Chair Arm
The children in the home as well as others can make good use of
a chair arm which may be attached quickly to an ordinary chair. The
wide arm is clamped to the back of the chair by means of a strip of
metal fitted with a thumbscrew, and the upright is fixed to the arm by
a hinge, making it convenient to store the device. The lower end of
the upright is fitted with a metal angle which fits on the corner of the
chair.—J. F. Long, Springfield, Mo.
Comic Chest Expander for Play or Stage Use
The Performer’s Chest “Swells with Pride” When He Draws on the String by
Shifting His Position
The usual box-cover fastener in the form of a staple and hasp can
be fastened quite securely, and much better than with the use of a
wood pin, by applying a key ring to the staple. This is to take the
place temporarily in case the lock is lost or discarded.—James M.
Kane, Doylestown, Pa.
Golf Tee Made of a Shotgun Shell
Instead of making golf tees in the usual manner I used the brass
end of a shotgun shell, weighted with a small iron ball attached to a
string. The device was made as an experiment and proved so useful
and convenient to carry that I continued to use it.—Edward Beasley,
Texarkana, Ark.
Patching Canvas Bottom of a Canoe
A patch of silk, properly applied makes a good repair for a hole
worn through the canvas bottom of a canoe. Loosen the canvas for
about 2 in. around the hole and apply thick shellac. Insert a piece of
silk in the hole to lap under the edges of the canvas. Permit the
shellac to dry slightly and smooth down the patch. Protect the joint
further with white lead, smoothing over the patch and painting it
when dry.
Handy Tray for Pencils and Penholders