Operations Management
Managing Global Supply Chains

Second Edition

Ray R. Venkataraman - Penn State Erie, The Behrend College
Jeffrey K. Pinto - Penn State Erie—The Behrend College, USA

Other Titles in:
Operations Management (General)

January 2019 | 1 152 pages | SAGE Publications, Inc

Operations Management: Managing Global Supply Chains takes a holistic, integrated approach to managing operations and supply chains by exploring the strategic, tactical, and operational decisions and challenges facing organizations worldwide. Authors Ray R. Venkataraman and Jeffrey K. Pinto address sustainability in each chapter, showing that sustainable operations and supply chain practices are not only attainable, but are critical and often profitable practices for organizations to undertake. With a focus on critical thinking and problem solving, Operations Management provides students with a comprehensive introduction to the field and equips them with the tools necessary to thrive in today’s evolving global business environment.

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Preface

Acknowledgments

About the Authors

PART I: INTRODUCTION

Chapter 1: Introduction to Managing Global Operations and Supply Chains

1.1 Supply Chains and Operations Management in the Global Economy

1.2 What Does Operations Management Entail?

1.3 What Does Supply Chain Management Entail?

1.4 An Integrated Perspective on Operations and Supply Chain Management

1.5 The Evolution of Operations and Supply Chain Management

1.6 Current and Emerging Issues in Operations and Supply Chain Management

1.7 Road Map: How This Text Is Organized

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 1.1 Multinational Companies and China: Investing for the Long Term

Case Study 1.2 Nintendo’s Wii and Wii U: Absence Makes the Heart Grow Fonder

Video Case

Critical Thinking Exercise

PART II: STRATEGIC DECISIONS

Chapter 2: Operations and Supply Chain Strategies

2.1 Levels of Strategic Planning

2.2 Formulating and Evaluating Operations Strategies

2.3 Formulating and Evaluating Strategies for Service Organizations

2.4 Measuring Productivity as Part of Strategic Planning

2.5 Strategies for Supply Chains

2.6 Global Strategies

2.7 Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 2.1 Supply Chain Strategies and Disaster Planning

Video Case

Critical Thinking Exercise

Chapter 3: Project Management

3.1 Projects, Project Teams, and Measuring Success

3.2 Project Life Cycles

3.3 Conceptualizing and Planning Projects

3.4 Scheduling Projects

3.5 Supply Chains for Projects

3.6 Executing, Evaluating, and Terminating Projects

3.7 Sustainability Issues

3.8 Global Projects

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 3.1 Project Management in the Movie Business

Video Case

Critical Thinking Exercise

Supplement for Chapter 3: Project Management

3S.1 Determining the Probability of a Project Being Completed on Time

3S.2 Calculating the Time-Cost Trade-Offs of Crashing a Project

3S.3 Calculating a Project’s Earned Value

Supplement Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Critical Thinking Exercise

Chapter 4: Product and Service Innovations

4.1 Why Companies Develop New Products and Services

4.2 How New Products Are Developed

4.3 New Product Development Concepts and Strategies

4.4 Using Technology to Develop New Products

4.5 Global Product Development

4.6 New Product Development Issues for Supply Chains

4.7 How Services Are Designed

4.8 Legal, Ethical, and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 4.1 Redesigning for Efficiency: The Chevrolet Malibu

Video Case

Critical Thinking Exercise

Supplement for Chapter 4: Reliability

4S.1 Understanding Reliability

4S.2 Availability and Maintainability

Supplement Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Chapter 5: Managing for Quality

5.1 Defining Quality

5.2 The Benefits and Costs of Managing Quality

5.3 The Evolution of Quality Management and Its Pioneers

5.4 Major Quality Management Initiatives

5.5 Quality Management Tools and Techniques

5.6 Managing Quality for Supply Chains

5.7 Global Quality Management

5.8 Legal, Ethical, and Sustainability Issues,

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 5.1 Pfizer Fixes Problems With Its Cleaning Processes

Case Study 5.2 Partnering to Improve Quality

Case Study 5.3 3M: Finding the Delicate Balance Between Six Sigma and Innovation

Case Study 5.4 Van Halen, Brown M&Ms, and Quality Control

Video Case

Critical Thinking Exercise

Chapter 6: Quality Improvement and Control Tools

6.1 Quality Control Versus Quality Assurance

6.2 Quality Appraisal Tools

6.3 Quality Defect Prevention Tools

6.4 Quality Design Tools

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 6.1 J.D. Power Automobile Surveys: What Does “Quality” Mean, Anyway?

Video Case

Critical Thinking Exercises

Chapter 7: Capacity Planning

7.1 Capacity Planning

7.2 Service Capacity Planning

7.3 Capacity Planning for Supply Chains

7.4 Ethical and Sustainability Issues

7.5 Global Capacity Management

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 7.1 Kirwain’s Capacity Planning Challenge

Video Cases

Critical Thinking Exercises

Chapter 8: Supply Chain Design and Location Planning

8.1 Supply Chain Design and Facility Location Decisions

8.2 Phases in the Supply Chain Design and Location Decision-Making Process

8.3 Analytical Methods for Evaluating Locations

8.4 Ethical and Sustainability Issues

8.5 Global Location Planning

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 8.1 Countering the Counterfeiters

Case Study 8.2 Alpharetta Tools

Video Case

Critical Thinking Exercise

Chapter 9: Process Design and Layout Planning

9.1 Designing, Selecting, and Redesigning Manufacturing Processes

9.2 Designing Service Processes

9.3 Designing Processes for Supply Chains

9.4 Global Process Design

9.5 Layout Planning

9.6 Legal, Ethical, and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 9.1 Challenges of Redesigning a Plant Layout

Video Case

Critical Thinking Exercise

Supplement for Chapter 9: Tools for Analyzing, Designing, and Selecting Processes and Layouts

9S.1 Process Selection, Design, and Analysis Tools

9S.2 Layout Analysis Tools and Techniques

Supplement Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Critical Thinking Exercises

PART III: INTEGRATIVE DECISIONS

Chapter 10: Supplier Management

10.1 Supplier Management and Its Goals

10.2 The Supplier Management Process

10.3 Managing Service Providers

10.4 Global Supplier Management

10.5 Legal, Ethical, and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study 10.1 The Boeing

Video Cases

Critical Thinking Exercise

Chapter 11: Logistics Management

11.1 Integrated Logistics Management

11.2 Order Fulfillment

11.3 Transportation Management

11.4 Packaging

11.5 Materials Handling

11.6 Warehousing Management

11.7 Inventory Management

11.8 Facilities Network Design,

11.9 Global Logistics

11.10 Logistics Outsourcing

11.11 Logistics in the Service Sector

11.12 Ethical and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 11.1 How Sustainable Logistics Solutions and Technologies Have Helped Walmart Become More Efficient

Case Study 11.2 Third-Party Logistics and the Mistreatment of Workers

Video Case

Critical Thinking Exercises

Chapter 12: Demand Management and Customer Service

12.1 Demand Management

12.2 Global Demand Management

12.3 Services Demand Management

12.4 Customer Service and Demand Management

12.5 Ethical and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Problems

Case Study 12.1 McDonald’s Reinvents Itself, Again

Case Study 12.2 Predicting the Future Demand for Rural Health Care

Video Cases

Critical Thinking Exercises

Chapter 13: Demand Forecasting Methods

13.1 Introduction to Forecasting and Its Applications

13.2 The Characteristics of Good Forecasts

13.3 Qualitative Versus Quantitative Forecasting Methods

13.4 Measuring and Monitoring the Accuracy of Forecasting Methods

13.5 Monitoring and Controlling Forecasts

13.6 Forecasting for Supply Chains

13.7 Ethical Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 13.1 Forecasting Ticket Demand for the Super Bowl

Case Study 13.2 Ethical Forecasting: If You Torture the Numbers Long Enough, They Can Tell You Anything!

Video Cases

Critical Thinking Exercises

PART IV: TACTICAL DECISIONS

Chapter 14: Lean Operations and Supply Chains

14.1 Introduction to Lean Operations

14.2 The Philosophy of Lean Systems

14.3 Elements of Lean Systems

14.4 Lean Services

14.5 Lean Supply Chains

14.6 Lean Global Supply Chains

14.7 Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study 14.1 Lean Sustainable Supply Chains at Unilever

Case Study 14.2 TAL Apparel and JCPenney

Critical Thinking Exercise

Appendix 14.1: Value Stream Mapping Symbols

Appendix 14.2: Steps for Developing a Value Stream Map

Chapter 15: Inventory Management

15.1 Types of Inventory

15.2 Inventory Costs

15.3 Inventory Considerations for Supply Chains

15.4 Inventory Management Measures

15.5 Key Features of Effective Inventory Management Systems

15.6 Uncertainty in Supply Chain Inventories: The Bullwhip Effect

15.7 Ethical and Sustainability Issues

15.8 Global Inventory Management

15.9 Service Sector Inventory Management

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study 15.1 Inventory Pressures Cause Tuesday Morning to Abandon e-Commerce

Case Study 15.2 Inventory Management in the Age of the Online Shopper

Video Case

Critical Thinking Exercises

Chapter 16: Inventory Control Models

16.1 How Much to Order: Continuous Review Systems

16.2 Economic Production Quantity (EPQ) Model

16.3 EOQ Model with Quantity Discounts

16.4 When to Order: Reorder Point for Continuous Review Systems (EOQ Model)

16.5 How Much to Order: Periodic Review Systems

16.6 How Much to Order: Single-Period Inventory Systems

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 16.1 When Your Customers Steer You Wrong: Walmart’s Project Impact Disaster

Video Case

Critical Thinking Exercise

Chapter 17: Sales and Operations Planning

17.1 The Basics of Sales and Operations Planning

17.2 Benefits of Sales and Operations Planning

17.3 Framework of the Sales and Operations Planning Process

17.4 Options for Influencing Demand and Supply in Sales and Operations Planning

17.5 Sales and Operations Planning Strategies

17.6 Methods for Sales and Operations Planning

17.7 Sales and Operations Planning for Supply Chains

17.8 Sales and Operations Planning in Service Industries

17.9 Sustainable S&OP: Sales Carbon Operations Planning (SCOP)

17.10 Ethical Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study 17.1: Coordinating Sales and Operations Planning for the Next Big Thing: The Case of the Sony PS4 Launch

Video Case

Critical Thinking Exercise

PART V: OPERATIONAL DECISIONS

Chapter 18: Master Scheduling and Material Requirements Planning

18.1 Master Scheduling

18.2 Material Requirements Planning

18.3 Ethical and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 18.1 Bringing Order to a Chaotic Restaurant

Video Case

Critical Thinking Exercise

Supplement for Chapter 18: Capacity Requirements Planning, MRP II, ERP, and DRP

18S.1 Capacity Requirements Planning (CRP)

18S.2 Manufacturing Resource Planning (MRP II)—An Extension of MRP

18S.3 Enterprise Resource Planning (ERP)

18S.4 Impact of MRP, MRP II, and ERP on Supply Chains

18S.5 Distribution Requirements Planning (DRP)

18S.6 Sustainability Issues

Supplement Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study 18S.1 Thinking Outside the Box: Enterprise Training at General Mills

Critical Thinking Exercise

Chapter 19: Detailed Scheduling

19.1 What Detailed Scheduling Is

19.2 Types of Scheduling for Manufacturers

19.3 Why Scheduling Is Complex

19.4 Scheduling in the Service Sector

19.5 Scheduling for Supply Chains

19.6 Ethical and Sustainability Issues

Chapter Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study 19.1 Telling Umpires Where to Go!

Video Case

Critical Thinking Exercises

PART VI: QUANTITATIVE MODULES

Module A: Linear Programming

Introduction

A.1 Features of a Linear Programming (LP) Problem

A.2 Solving Linear Programming Problems Using Excel

A.3 Sensitivity Analysis

A.4 Additional Linear Programming Models

Module Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study A.1 Happy Hour, Happy Profits

Module B: The Transportation Models

B.1 Formulating and Solving the Transportation Problem

B.2 Additional Issues in Transportation Modeling

Module Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study B.1 Plant Location for Tru-Blade Ski Company

Module C: Waiting Line Models

C.1 Introduction to Waiting Line Models

C.2 Queueing Models

Module Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study C.1 The Psychology of Waiting in Lines

Questions for Discussion

Module D: Simulation

D.1 Introduction to Simulation

D.2 Monte Carlo Simulation

Module Summary

Key Terms

Discussion and Review Questions

Solved Problem

Problems

Case Study D.1 Staying Ahead of the Demand for Ice Cream

Module E: Learning Curves

E.1 What Are Learning Curves?

E.2 Applications of Learning Curves

E.3 Approaches to Solving Learning Curve Problems

E.4 Learning Curves in Cost Estimation

E.5 Limitations of Learning Curves

Module Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study E.1 Estimating the Cost of a Drilling Platform

Module F: Decision-Making Tools

F.1 Using a Systematic Decision-Making Process

F.2 Elements in the Decision-Making Process

F.3 Categorizing Decisions

F.4 Techniques for Making Decisions Under Certainty, Uncertainty, and Risk

F.5 Techniques for Making Sequential Decisions

Module Summary

Key Terms

Discussion and Review Questions

Solved Problems

Problems

Case Study F.1 Gerber Products Company: The Problem

Case Study F.2 Gerber Products Company: The Solution

Appendix A: Tables

Appendix B: Answers to Select Problems

Glossary

Notes

Company Index

Subject Index

Supplements

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