Operations Management Twelfth Global Edition William J ...

1 Operations Management Twelfth Global Edition William J. Stevenson Saunders College of Business Rochester Institute of Technology Mc Graw Hill Education Preface vii 1 Introduction to Operations Management 2 Introduction 3 Production of Goods Versus Providing Services 7 Why Learn About Operations Management ? 9 Career Opportunities and Professional Societies 11 Process Management 12 The Scope of Operations Management 14 Reading: Manufacturing: The Chicken or The Egg? 17 Operations Management and Decision Making 17 Reading: Analytics 20 The Historical Evolution of Operations Management 21 Operations Today 24 Reading: Revenue Management : Does It Work in Manufacturing?

2 26 Key Issues for Today's Business Operations 27 Readings: Universities Embrace Sustainability 28 Diet and the Environment: Vegetarian vs. Nonvegetarian 29 Summary 36 Key Points 36 Key Terms 36 Discussion and Review Questions 36 Taking Stock 37 Critical Thinking Exercises 37 Gase: Hazel 37 Selected Bibliography and Further Readings 38 Problem-Solving Guide 38 2 Competitiveness, Strategy, and Productivity 40 Introduction 41 Competitiveness 42 Mission And Strategies 44 Reading: Al-Jomaih Automotive Excels in Customer Service 45 Operations Strategy 51 Reading: Productivity Gains Curb Inflation 53 Implications of Organization Strategy for Operations Management 54 Transforming Strategy into Action: The Balanced Scorecard 54 Productivity 56 Readings.

3 Productivity as a Double-Edged Sword 59 Dutch Tomate Growers' Productivity Advantage 60 Productivity Improvement 62 Summary 62 Key Points 62 Key Terms 63 Soived Problems 63 Discussion and Review Questions 64 Taking Stock 64 Critical Thinking Exercises 65 Problems 65 Gases: An American Tragedy: Howa Good Company Died 66 Home-Styie Cookies 67 Hazel Revisited 69 Tapijt Express 69 Operations Tour: Middle East Airlines 70 Selected Bibliography and Furttier Readings 73 3 Forecasting 74 Introduction 75 Features Common to All Forecasts 77 Elements of a Good Forecast 78 Forecasting and the Supply Chain 78 Steps in the Forecasting Process 79 Forecast Accuracy 79 xxviii Contents xxix Reading.

4 Oil Price Fluctuations Mean Risky Oil Price Forecasts 80 Approaches to Forecasting 82 Qualitative Forecasts 82 Forecasts Based on Time-Series Data 84 Associative Forecasting Techniques 100 Monitoring Forecast Error 106 Choosing a Forecasting Technique 110 Using Forecast Information 112 Computer Software in Forecasting 112 Reading: Forecasting atABM 113 Summary 114 Key Points 115 Key Terms 117 Solved Problems 117 Discussion and Review Questions 123 Taking Stock 124 Critical Thinking Exercises 124 Problems 124 Gases: M&L Manufacturing 132 Highline Financial Services, Ltd. 133 Selected Bibliography and Further Readings 133 Product and Service Design 134 Introduction 136 Readings: Middle Eastern Carriers Influence Aircraft Design 136 Product Redesign, Not Offshoring, Holds Cost Advantage for U.

5 S. Manufacturers 137 Dutch Boy Brushes Up Its Paints 138 Idea Generation 139 Reading: Vlasic on a Roll with Huge Pickte Siices 140 Legal and Ethical Considerations 141 Human Factors 142 Cultural Factors 143 Global Product and Service Design 143 Reading: Do You Want Pickled Beets with That? 143 Environmental Factors: Sustainability 144 Readings: Healthy Chicken from a Heaithy Environment 145 Kraft Foods' Recipe for Sustainability 146 Xerox Diverts 2 Billion Pounds of Waste from Landfills through Green Initiatives 147 Recycle City: Maria 's Market 148 Other Design Considerations 149 Reading: Lego A/S in the Pink 151 Phases in Product Design and Development 159 designing for Production 160 Service Design 162 Reading.

6 The Challenges of Managing Services 166 Operations Strategy 167 Summary 167 Key Points 168 Key Terms 168 Discussion and Review Questions 168 Taking Stock 169 Critical Thinking Exercises 169 Problems 169 Operations Tour: Dubai Sewage Treatment Piants 170 Selected Bibliography and Further Readings 170 SUPPLEMENT TO CHAPTER 4: Reliability 171 5 Strategie Capacity Flanning for Products and Services 184 Introduction 185 Reading: Capacity Expansion: Good News for All 186 Capacity Decisions Are Strategie 187 Defining and Measuring Capacity 188 Determinants of Effective Capacity 189 Strategy Formulation 191 Forecasting Capacity Requirements 192 Additional Challenges of Flanning Service Capacity 194 Do it In-House or Outsource It?

7 195 Developing Capacity Strategies 196 Reading: A Littie Closer to Home 196 Contents Constraint Management 201 Evaluating Alternatives 201 Operations Strategy 207 Summary 207 Key Points 208 Key Terms 208 Solved Problems 208 Discussion and Review Questions 211 Taking Stock 211 Critical Thinking Exercises 211 Problems 212 Gase: Outsourcing of Hospital Services 215 Selected Bibliography and Further Readings 215 SUPPLEMENT TO CHAPTER 5: Decision Theory 216 Process Selection and Facility Layout 236 Introduction 237 Process Selection 238 Technology 244 Reading: ATM Machines Serve Customers and Banks 246 Process Strategy 249 Strategie Resource Organization: Facilities Layout 250 Reading: Everything Under One Roof 260 designing Product Layouts: Line Balancing 262 Reading: BMW's Strategy: Fiexibility 270 designing Process Layouts 271 Summary 275 Key Points 276 Key Terms 276 Solved Problems 276 Discussion and Review Questions 280 Taking Stock 280 Critical Thinking Exercises 280 Problems 281 Selected Bibliography and Further Readings 287 Work Design and Measurement 288 Introduction 289 Job Design 289 Quality of Work Life 294 Reading.

8 Incentives for Good Ideas 298 Methods Analysis 299 Motion Study 303 Work Measurement 305 Operations Strategy 316 Summary 317 Key Points 317 Key Terms 318 Solved Problems 319 Discussion and Review Questions 319 Taking Stock 320 Critical Thinking Exercise 320 Problems 320 Gase: Emaar Enterprises Garment Assembly 323 Selected Bibliography and Further Readings 324 SUPPLEMENT TO CHAPTER 7: Learning Curves 325 8 Location Flanning and Analysis 336 The Need for Location Decisions 337 The Nature of Location Decisions 338 Global Locations 340 General Procedure for Making Location Decisions 342 Identifying a Country, Region, Community, and Site 343 Reading: Selecting the New Facility: Operations and Market Considerations 344 Service and Retail Locations 351 Reading: Careful Site Selection for Franchises 352 Evaluating Location Alternatives 353 Summary 358 Key Points 358 Key Terms 359 Solved Problems 359 Discussion and Review Questions 360 Taking Stock 360 Critical Thinking Exercises 361 Problems 361 Gase.

9 Bonjour, Costco! 364 Selected Bibliography and Further Readings 364 9 Management of Quality 366 Introduction 367 The Evolution of Quality Management 368 Contents xxxi Reading: Whatever Happened to Quality? 368 The Foundations of Modern Quality Management : The Gurus 369 Insights on Quality Management 372 Readings: The Name of Quality 374 Hyundai: Kissing Ciunkers Goodbye 378 Quality Awards 380 Reading: HACCP Sets AI RifaiAbove the Rest 380 Quality Certification 381 Quality and the Supply Chain 383 Total Quality Management 384 Reading: Improving Quality and Reducing Risk in Offshoring 384 Problem Solving and Process Improvement 388 Reading: WhatKeeps Six Sigma Practitioners Up at Night?

10 391 Quality Tools 392 Reading: Benchmarking Corporate Web Sites of Fortune 500 Companies 400 Operations Strategy 400 Summary 400 Key Points 401 Key Terms 401 Solved Problem 401 Discussion and Review Questions 402 Taking Stock 403 Critical Thinking Exercises 403 Problems 403 Gases: Chick-n-Gravy Dinner Line 405 Aegean Markets 406 Selected Bibliography and Further Readings 408 10 Quality Control 410 Introduction 411 Inspection 412 Reading: Mother Nature as a Quality Controller 415 Statistical Process Control 417 Process Capability 435 Operations Strategy 440 Reading: Quality Control Starts at the Source 441 Summary 441 Key Points 441 Key Terms 441 Solved Problems 443 Discussion and Review Questions 447 Taking Stock 448 Critical Thinking Exercises 448 Problems 448 Gases: Toys, Inc.