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Contents
Chapter 1
Operations and Productivity 1
Discussion Questions
Ethical Dilemma
American Car Battery Industry
End-of-Chapter Problems
Case Study 5
Uber Technologies, Inc.
Video Case Studies 5
Frito-Lay: Operations Management in Manufacturing
Hard Rock Cafe: Operations Management in Services
Additional Case Studies 7
National Air Express
Zychol Chemicals Corporation
Chapter 2
Operations Strategy in a Global Environment 9
Discussion Questions
Ethical Dilemma
End-of-Chapter Problems
Case Study
Rapid-Lube
Video Case Studies
Strategy at Regal Marine
Hard Rock Cafe’s Global Strategy 13
Outsourcing Offshore at Darden 14
Additional Case Study
Outsourcing to TATA
Chapter 3
Project Management 15
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 3.1: Gantt Chart
End-of-Chapter Problems
Case Study
Southwestern University: A
Video Case Studies
Project Management At Arnold Palmer Hospital
Managing Hard Rock’s Rockfest
Additional Case Study
Shale Oil Company 28
Chapter 4
Forecasting 31
Discussion Questions
Ethical Dilemma
Active Model Exercises*
ACTIVE MODEL 4.1: Moving Averages
ACTIVE MODEL 4.2: Exponential Smoothing
ACTIVE MODEL 4.3: Exponential Smoothing with Trend Adjustment
ACTIVE MODEL 4.4: Trend Projections
End-of-Chapter Problems
Case Study 51
Southwestern University: B
Video Case Studies
Forecasting Ticket Revenue for Orlando Magic Basketball Games
Forecasting at Hard Rock Cafe
Additional Case Studies
The North-South Airlines
Digital Cell Phone, Inc.
Chapter 5
Design of Goods and Services 55
Discussion Questions
Ethical Dilemma
Active Model Exercise
Active Model 5.1: Decision Tree
End-of-Chapter Problems
Case Study
De Mar’s Product Strategy
Video Case Study
Product Design at Regal Marine
Supplement 5
Sustainability in the Supply Chain 68
Discussion Questions
End-of-Supplement Problems
Video Case Studies
Building Sustainability at the Orlando Magic’s Amway Center
Green Manufacturing And Sustainability at
Frito-Lay
Additional Case Study
Environmental Sustainability at Walmart
Chapter 6
Managing Quality 73
Discussion Questions
Ethical Dilemma
Active Model Exercise*
ACTIVE MODEL 6.1: Pareto Charts
End-of-Chapter Problems
Case Study
Southwestern University: C
Video Case Studies
The Culture of Quality at Arnold Palmer Hospital
Quality Counts at Alaska Airlines
Quality at the Ritz-Carlton Hotel
Additional Case Study
Westover Electrical, Inc.
Supplement 6
Statistical Process Control 87
Discussion Questions
Active Model Exercises*
ACTIVE MODEL S6.1: bar Chart
ACTIVE MODEL S6.2: p-Chart—with data
ACTIVE MODEL S6.3: Process Capability
End-of-Supplement Problems
Case Study
Bayfield Mud Company
Video Case Studies
Frito-Lay’s Quality-Controlled Potato Chips
Farm to Fork: Quality at Darden Restaurants
Additional Case Study
Green River Chemical Co.
Chapter 7
Process Strategy 101
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 7.1: Crossover Chart
End-of-Chapter Problems
Case Study
Rochester Manufacturing’s Process Decision
Video Case Studies
Alaska Airlines 20-Minute Baggage
Process—Guaranteed!
Process Analysis at Arnold Palmer Hospital
Process Strategy at Wheeled Coach
Additional Case Study
Matthew Yachts, Inc.
Supplement 7
Capacity and Constraint Management 110
Discussion Questions
Active Model Exercises
ACTIVE MODEL S7.1: Productivity
ACTIVE MODEL S7.2: Break-even Analysis
End-of-Supplement Problems
Video Case Study
Capacity Planning at Arnold Palmer Hospital
Additional Case Study
Southwestern University: D
Chapter 8
Location Strategies 121
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 8.1: Center of Gravity
End-of-Chapter Problems
Case Study
Southern Recreational Vehicle Company
Video Case Studies
Locating the Next Red Lobster Restaurant
Where to Place the Hard Rock Cafe
Additional Case Study
Southwestern University: E
Chapter 9
Layout Strategies 134
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 9.1: Process Layout
End-of-Chapter Problems
Case Study
State Automobile License Renewals
Video Case Studies
Laying out Arnold Palmer Hospital’s
New Facility
Facility Layout at Wheeled Coach
Additional Case Study
Microfix, inc.
Chapter 10
Human Resources, Job Design, and Work Measurement 152
Discussion Questions
Active Model Exercise
ACTIVE MODEL 10.1: Work Sampling
Ethical Dilemma
End-of-Chapter Problems
Case Study
Jackson Manufacturing Co.
Video Case Studies
The “People” Focus: Human Resources at Alaska Airlines
Hard Rock’s Human Resource Strategy
Additional Case Studies
Chicago Southern Hospital
The Fleet that Wanders
Chapter 11
Supply Chain Management 171
Discussion Questions
Ethical Dilemma
End-of-Chapter Problems
Video Case Studies
Darden’s Global Supply Chains
Supply Chain Management at Regal Marine
Arnold Palmer Hospital’s Supply Chain
Supplement 11
Supply Chain Management Analytics 176
Discussion Questions
End-of-Supplement Problems
Chapter 12
Inventory Management 184
Discussion Questions
Ethical Dilemma
Active Model Exercises
ACTIVE MODEL 12.1: Economic Order Quantity (EOQ) Model
ACTIVE MODEL 12.2: Production Order Quantity Model
End-of-Chapter Problems
Case Studies
Zhou Bicycle Company
Parker Hi-Fi Systems
Video Case Studies
Managing Inventory at Frito-Lay
Inventory Control at Wheeled Coach
Additional Case Studies
Southwestern University: F
Laplace Power and Light
Chapter 13
Aggregate Planning and S&OP 200
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 13.1: Aggregate Planning
End-of-Chapter Problems
Case Study
Andrew-Carter, Inc.
Video Case Study
Using Revenue Management to Set Orlando Magic Ticket Prices
Additional Case Studies
Cornwell Glass
Southwestern University: (G)
Chapter 14
Material Requirements Planning (MRP) and ERP 224
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 14.1: Order Releases
End-of-Chapter Problems
Video Case Studies
When 18,500 Orlando Magic Fans Come to Dinner
MRP At Wheeled Coach
Additional Case Studies
IKON’S Attempt at ERP
Hill’s Automotive, Inc.
Chapter 15
Short-Term Scheduling 252
Discussion Questions
Ethical Dilemma
Active Model Exercise
ACTIVE MODEL 15.1: Job Shop Sequencing
End-of-Chapter Problems
Case Study
Old Oregon Wood Store
Video Case Studies
From the Eagles to The Magic: Converting the Amway Center
Scheduling at Hard Rock Cafe
Additional Case Study
Payroll Planning, Inc.
Chapter 16
Lean Operations 268
Discussion Questions
Ethical Dilemma
End-of-Chapter Problems
Video Case Studies
Lean Operations at Alaska Airlines
JIT at Arnold Palmer Hospital
Additional Case Studies
JIT After a Catastrophe
Mutual Insurance Company of Iowa
Chapter 17
Maintenance and Reliability 273
Discussion Questions
Ethical Dilemma
Active Model Exercises
ACTIVE MODEL 17.1: Series Reliability
ACTIVE MODEL 17.2: Redundancy
ACTIVE MODEL 17.3: Parallel Systems
End-of-Chapter Problems
Video Case Study
Maintenance Drives Profits at Frito-Lay
Additional Case Studies
Cartak’s Department Store
Worldwide Chemical Company
Business Analytics Module A
Decision-Making Tools 278
Discussion Questions
End-of-Module Problems
Case Study
Warehouse Tenting at the Port of Miami
Additional Case Studies
Arctic, Inc.
Ski Right Corp.
Tom Tucker’s Liver Transplant
Business Analytics Module B
Linear Programming 291
Discussion Questions
Active Model Exercise
ACTIVE MODEL B.1: LP Graph
End-of-Module Problems
Case Study
Quain Lawn and Garden Inc.
Video Case Study
Scheduling Challenges at Alaska Airlines
Additional Case Studies
Chase Manhattan Bank
Coastal States Chemical
Business Analytics Module C
Transportation Models 309
Discussion Questions
End-of-Module Problems
Case Study
Custom Vans, Inc.
Additional Case Study
Consolidated Bottling: B
Business Analytics Module D
Waiting-Line Models 325
Discussion Questions
Active Model Exercises
ACTIVE MODEL D.1: Single Server Model
ACTIVE MODEL D.2: Multiple Server System
with Costs
ACTIVE MODEL D.3: Constant Service Times
End-of-Module Problems
Case Studies
New England Foundry
The Winter Park Hotel
Additional Case Study
Pantry Shopper
Business Analytics Module E
Learning Curves 340
Discussion Questions
Active Model Exercise
ACTIVE MODEL E.1: Unit Curve, Cumulative Curve, and Costs
End-of-Module Problems
Case Study
SMT’S Negotiation with IBM
Business Analytics Module F
Simulation 345
Discussion Questions
End-of-Module Problems
Case Study
Alabama Airlines Call Center
Additional Case Study
Saigon Transport
Operation management (OM), is the administration and control of business practices in order to achieve the highest efficiency within an organization. It is responsible for converting labor and materials into goods and services in a way that maximizes profit. Operation management teams try to balance revenue and costs to make the greatest net operating profit.
Operation management is the administration and control of business practices in order to achieve the highest efficiency within an organization.
Operation management is the process of converting labor and materials into goods and services as efficiently and effectively as possible.
The goal of corporate operations professionals is to balance revenue and costs to maximize operating profit.
Operation Management
Operational management is the use of resources such as staff, material, equipment and technology. Based on the needs of clients and the capabilities of the company, operations managers develop and deliver products to clients.
Operations management deals with many strategic issues. These include determining the size and methods of project management, and structuring information technology networks. The management of inventory, which includes work-in-process and raw material acquisition, quality control, materials handling, and maintenance policies, is another operational issue.
Operation management is about analyzing the use of raw materials to ensure minimal waste. To determine the size of inventory order to process, and how much stock to keep on hand, operations managers use many formulas such as the economic order quantity formula.
To be a successful operations manager, you must understand and coordinate the work of your company.
Operations management is a critical function that involves the management of inventory throughout the supply chain. An effective operations manager must understand how to make the company's processes flow seamlessly and be able to communicate that information to others. A solid knowledge of logistics is essential for efficient coordination in the setting up business processes.
A professional in operations management understands global and local trends and customer demand. They also know the resources available for production. To meet customer expectations, operations management ensures that the acquisition of material and labor is done in a cost-effective and timely manner. To ensure that there are not too many, inventory levels are constantly monitored. Operation management is responsible to find vendors who supply the right goods at reasonable prices, and can deliver the product when required.
Delivery of goods to customers is another important aspect of operations management. This involves ensuring that products are delivered within the time promised. Customers are often contacted by operations management to make sure that the products meet their quality and functionality requirements. Operations management then uses the feedback to improve the process.
Operations managers coordinate and develop new processes, as well as evaluate existing structures. Operations managers are responsible for managing organization and productivity. This work requires flexibility and innovation.
An MBA in operations management gives you a broad view of industry trends, and can help you to understand financial regulations and other uncertainties that could affect your organization. This degree also helps to understand the complexities of change and the tools required to make it work.
Operations management is the control of production and business operations in the most efficient way possible. OM professionals balance revenue and operating costs to maximize operating profit.
Modern operations management is based on four theories: reconfigurable manufacturing, Six Sigma, lean manufacturing, business process redesign (BPR), and Six Sigma. BPR focuses on the analysis and design of workflow as well as business processes within a company. BPR's goal is to assist companies in reorganizing their business processes and designing them from scratch. Reconfigurable manufacturing systems allow for rapid change in structure, hardware and software components.
This allows systems to quickly adjust to their production capacity and to how efficient they are in responding to changes in the market or within their own system. Six Sigma focuses on quality. The control limits are six standard deviations above the normal distribution means. Trending charts, potential defects calculations, and other ratios are some of the tools used in Six Sigma. Lean manufacturing refers to the systematic elimination of waste in manufacturing. This theory considers any resource usage other than creating value for customers to be wasteful. It aims to eliminate as many wasteful resource expenditures possible.
Healthcare is a place where operations management is a common skill. The current healthcare system is overusing expensive, technological and emergency-based treatments. Uninsured patients often leave high healthcare costs unpaid. The burden of high-priced services is on the taxpayer, as well as health insurance holders and healthcare institutions.
Jay Heizer Professor Emeritus at Texas Lutheran University in Seguin, Texas, Jesse H. Jones Chair for Business Administration. He earned his B.B.A. He received his B.B.A. and M.B.A. degrees from the University of North Texas. He also earned his Ph.D. in Management and Statistics at Arizona State University. He has previously been a member of faculty at the University of Memphis and University of Oklahoma. He also served as a visiting professor at George Mason University, Boston University, the Czech Management Center and Otto-Von-Guericka University in Magdeburg. His industrial experience is extensive. As a Foringer and Company machinist apprentice, as well as as as a Westinghouse Airbrake production planner, and as an engineer administrator at General Dynamics, Dr. Heizer learned the practical side operations management. He has also been involved in consulting in OM and MIS for a number of companies, including Philip Morris and Firestone. APICS, the Association for Operations Management, has awarded him the CPIM certification. He is the author of 5 books and more than 30 articles. His articles have been published in the "Academy of Management Journal", Journal of Purchasing and Personnel Psychology Management, APICS The Performance Advantage Management, Production & Inventory Control Management Management, APICS The Performance Advantage Management, Journal of Management History IIE Solutions, Engineering Management, among others. He has taught operations management courses at the undergraduate, graduate and executive levels. Barry Render Professor Emeritus and the Charles Harwood Professor of Operation Management, Crummer Graduate School of Business at Rollins College in Winter Park, Florida. His B.S. His B.S. in Physics and Mathematics from Roosevelt University and his M.S. He is also a Ph.D. candidate in Quantitative Analysis and Operations Research at the University of Cincinnati. He has previously taught at George Washington University and University of New Orleans, Boston University and George Mason University. There he was the Mason Foundation Professorship for Decision Sciences and Chair of the Decision Sciences Department. Dr. Dr. Render also worked in aerospace for McDonnell Douglas, General Electric and NASA. Render co-authored 10 textbooks with Prentice Hall. These include "Managerial Decision Modeling using Spreadsheets, Quantitative Ana for Management, Service Management," Introduction to Management Science," and "Cases and Readings in Management Science." Quantitative Analysis for Management " is now in its 11th Edition and is a key text in this discipline in the United States as well as globally. Dr. Render has published more than 100 articles on management topics. They have appeared in Decision Sciences, Production and Operations Management, Interfaces, Information and Management, Journal of Management Information Systems, Socioeconomic Planning Sciences, IIE Solutions, and Operations Management Review. Dr. Render was an AACSB Fellow twice and a Senior Fulbright Scholar once. Render was Vice President of Decision Science Institute Southeast Region. He served six years as Software Review Editor at Decision Line and five years as Editor of "Operations Management" special issue of The New York Times. Dr. Dr. Render was President of Management Service Associates of Virginia, Inc. from 1984 to 1993. His technology clients included Fairfax County, Virginia, the FBI, and C&P Telephone. Render is currently the Consulting Editor for "Financial Times Press." Dr. Dr. Render has been a Rollins College instructor of operations management courses for the MBA and Executive MBA programs. Render was awarded the Welsh Award by the school as a leading professor and Roosevelt University selected him as the 1996 recipient for the St. Claire Drake Award of Outstanding Scholarship. Dr. Dr. Render was awarded the Rollins College MBA Student Award, for the Best Overall Course. In 2009, he was named Professor Of The Year by full-time MBA students. Chuck Munson Professor of Operation Management, Carson College of Business Washington State University, Pullman (Washington). He received his BSBA in finance and his MSBA in operations management from Washington University in St. Louis. He was Associate Dean for Graduate Business Programs at Washington State for two years. Contel Telephone Corporation employed him as a financial analyst for three years. Professor Munson is a senior editor at "Production and Operations Management" and serves on the editorial board of four other journals. More than 25 of his articles have been published in journals such as "Production and Operations Management", "IIE Transactions and Decision Sciences", "Naval Research Logistics", "European Journal of Operational Research," and "Journal of the Operational Research Society." He is the editor of "The Supply Chain Management Casebook" and co-authored "Quantity Discounts, An Overview and Practical Guide to Buyers and Sellers." He is also the coauthor of "Managerial Decision Modeling using Spreadsheets", fourth edition, published by Pearson Press. Dr. Munson teaches operations management core and elective classes at Washington State University (WSU) at the undergraduate, MBA and Ph.D. level. His workshops have been presented at international conferences as well as for students pursuing Ph.D. at Washington State University. He has been awarded the following: Being a Founding Member of Washington State University President's Teaching Academy (2004), Research Award (2004), Service Award (2009-2013) and WSU College of Business Outstanding Teaching Award (2004).
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