Includes bibliographical references and index.

Chapter 1. Introduction to Operations Management. What Is Operations Management?. Links to Practice: The E-tailers. Differences between Manufacturing and Service Organizations. Links to Practice: U.S. Postal Service. Operations Management Decisions. Links to Practice: Texas Instruments Incorporated. Plan of This Book. Historical Development. Why OM?. Historical Milestones. The Industrial Revolution. Scientific Management. The Human Relations Movement. Management Science. The Computer Age. Just-in-Time. Total Quality Management. Business Process Reengineering. Flexibility. Time-Based Competition. Supply Chain Management. Global Marketplace. Environmental Issues. Electronic Commerce. Today's OM Environment. Operations Management in Practice. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms. Discussion Questions. CASE: HIGHTONE ELECTRONICS, INC. CASE: CREATURE CARE ANIMAL CLINIC (A). INTERACTIVE LEARNING. CHAPTER 2. OPERATIONS STRATEGY AND COMPETITIVENESS. The Role of Operations Strategy. The Importance of Operations Strategy. Developing a Business Strategy. Mission. Environmental Scanning. Core Competencies. Putting It Together. Links to Practice: Dell Computer Corporation. Developing an Operations Strategy. Competitive Priorities. Links to Practice: Southwest Airlines Company. Links to Practice: FedEx Corporation. The Need for Trade-Offs. Order Winners and Qualifiers. Translating Competitive Priorities into Production Requirements. Strategic Role of Technology. Types of Technology. Technology as a Tool for Competitive Advantage. Productivity. Measuring Productivity. Interpreting Productivity Measures. Productivity and Competitiveness. Productivity and the Service Sector. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms/Formula Review. Solved Problems. Discussion Questions/Problems. INTERNET CHALLENGE: DEMONSTRATING YOUR KNOWLEDGE OF OM. VIRTUAL COMPANY: WELCOME TO KAIZEN CONSULTING. Bibliography. CASE: PRIME BANK OF MASSACHUSETTS. CASE: BOSEMAN OIL AND PETROLEUM (BOP). INTERACTIVE LEARNING. INTERNET CHALLENGE: UNDERSTANDING STRATEGIC DIFFERENCES. VIRTUAL COMPANY: GETTING ACQUAINTED WITH VALLEY MEMORIAL HOSPITAL. Bibliography. The Service Package. Differing Service Designs. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions/Problems. CASE: BIDDY'S BAKERY (BB). CASE: CREATURE CARE ANIMAL CLINIC (B). INTERACTIVE LEARNING. INTERNET CHALLENGE: COUNTRY COMFORT FURNITURE. VIRTUAL COMPANY: SERVICE PACKAGE AND PROCESSES AT VALLEY MEMORIAL HOSPITAL. Bibliography. Product Design. Design of Services Versus Goods. The Product Design Process . Idea Development. Links to Practice: IBM Corporation. Product Screening. Preliminary Design and Testing. Final Design. Factors Impacting Product Design. Design for Manufacture. Product Life Cycle. Concurrent Engineering. Remanufacturing. Process Selection. Types of Processes. Designing Processes. Process Performance Metrics. Linking Product Design and Process Selection. Product Design Decisions. Links to Practice: The Babcock & Wilcox Company. Competitive Priorities. Facility Layout. Product and Service Strategy. Degree of Vertical Integration. Technology Decisions. Information Technology. Links to Practice: Using GPS Technology in Product Advertising. Automation. Links to Practice: Performing Robotic Surgery. e-Manufacturing. Designing Services. How Are Services Different from Manufacturing?. How Are Services Classified?. CHAPTER 3. PRODUCT DESIGN AND PROCESS SELECTION. E-Commerce. Types of E-Commerce. Business-to-Business (B2B) E-Commerce. The Evolution of B2B Commerce. The Benefits of B2B E-Commerce. Business-to-Consumer (B2C) E-Commerce. Consumer-to-Consumer (C2C) E-Commerce. Peer-to-Peer (P2P) E-Commerce. M-Commerce. What Is a Supply Chain?. Components of a Supply Chain. External Suppliers. Internal Functions. External Distributors. The Bullwhip Effect. Causes of the Bullwhip Effect. Counteracting the Bullwhip Effect. Factors Affecting Supply Chain Management. Consumer Expectations and Competition. Links to Practice: Lands' End, Inc. Globalization. Information Technology. Government Regulation. The Environment. Additional Factors for Global Supply Chains. Geographically Dispersed Members. Forecasting Accuracy. Exchange Rates. CHAPTER 4. E-COMMERCE AND SUPPLY CHAIN MANAGEMENT. Infrastructure Issues. Product Proliferation. Vertical Integration. Insourcing Versus Outsourcing Decisions. The Role of Purchasing. Ethics in Supply Management. Developing Supplier Relationships. How Many Suppliers?. Developing Partnerships. Links to Practice: The Timken Company. Critical Factors in Successful Partnering. Links to Practice: Sweetheart Cup Company/. Georgia-Pacific Corporation. Benefits of Partnering. Third-Party Service Providers. Information Sharing. Integrated Supply Chain Management. The Role ofWarehouses. Links to Practice: Fingerhut Corporation. Transportation Consolidation. Product Mixing. Services. Crossdocking. Links to Practice: FedEx Freight. Radio Frequency Identification (RFID). Supply Chain Performance Measurement. Current Trends in Supply Chain Management. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions/Problems. CASE: ELECTRONIC POCKET CALENDARS SUPPLY CHAIN MANAGEMENT GAME. CASE: SUPPLY CHAIN MANAGEMENT AT DURHAM INTERNATIONAL MANUFACTURING COMPANY (DIMCO). INTERACTIVE LEARNING. INTERNET CHALLENGE: GLOBAL SHOPPING. VIRTUAL COMPANY: SUPPLY CHAIN MANAGEMENT AT VALLEY MEMORIAL HOSPITAL. Bibliography. Links to Practice: General Electric Company/ Motorola, Inc. Cost of Quality. The Evolution of Total Quality Management (TQM). Quality Gurus. The Philosophy of TQM. Customer Focus. Continuous Improvement. Employee Empowerment. Links to Practice: The Walt Disney Company. Use of Quality Tools. Links to Practice: The Kroger Company/Meijer Stores Limited Partnership. Product Design. Process Management. Managing Supplier Quality. Quality Awards and Standards. The Malcolm Baldrige National Quality Award (MBNQA). The Deming Prize. ISO 9000 Standards. ISO 14000 Standard. Why TQM Efforts Fail. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms/Formula Review. Solved Problems/Discussion Questions. Problems. CASE: GOLD COAST ADVERTISING (GCA). CASE: DELTA PLASTICS, INC. (A). INTERACTIVE LEARNING. INTERNET CHALLENGE: SNYDER BAKERIES. VIRTUAL COMPANY: TOTAL QUALITY MANAGEMENT. Bibliography. Defining Quality. Differences between Manufacturing and Service Organizations. CHAPTER 5. TOTAL QUALITY MANAGEMENT. What Is Statistical Quality Control?. Links to Practice: Intel Corporation. Sources of Variation: Common and Assignable Causes. Descriptive Statistics. The Mean. The Range and Standard Deviation. Distribution of Data. CHAPTER 6. STATISTICAL QUALITY CONTROL. Statistical Process Control Methods. Developing Control Charts. Types of Control Charts. Control Charts for Variables. Mean (x-Bar) Charts. Range (R) Charts. Using Mean and Range Charts Together. Control Charts for Attributes. P-Charts. C-charts. Process Capability. Measuring Process Capability. Six Sigma Quality. Links to Practice: Motorola, Inc. Acceptance Sampling. Sampling Plans. Operating Characteristic (OC) Curves. Developing OC Curves. Average Outgoing Quality. Implications for Managers. How Much and How Often to Inspect. Where to Inspect. Which Tools to Use. Statistical Quality Control in Services. Links to Practice: The Ritz-Carlton Hotel Company, L.L.C./Nordstrom, Inc. Links to Practice: Marriott International, Inc. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms. Formula Review/Solved Problems. Discussion Questions/Problems. CASE: SCHARADIN HOTELS. CASE: DELTA PLASTICS, INC. (B). INTERACTIVE LEARNING. INTERNET CHALLENGE: SAFE-AIR. VIRTUAL COMPANY: STATISTICAL QUALITY CONTROL. Bibliography. Visibility. Flexibility. Elements of JIT. Just-in-Time Manufacturing. Total Quality Management (TQM). Respect for People. Links to Practice: Saturn Corporation. Just-in-Time Manufacturing. The Pull System. Kanban Production. Variations of Kanban Production. Small Lot Sizes and Quick Setups. Uniform Plant Loading. Flexible Resources. Facility Layout. Links to Practice: Ryder Integrated Logistics. Total Quality Management. Product versus Process. Quality at the Source. Preventive Maintenance. Work Environment. Respect for People. The Role of Production Employees. Lifetime Employment. The Role of Management. Supplier Relationships. Benefits of JIT. Links to Practice: Alcoa Inc. Implementing JIT. JIT in Services. Improved Quality. Uniform Facility Loading. Use of Multifunction Workers. Reductions in Cycle Time. Minimizing Setup Times and Parallel Processing. Workplace Organization. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions/Problems. CASE: KATZ CARPETING. CASE: DIXON AUDIO SYSTEMS. INTERACTIVE LEARNING. INTERNET CHALLENGE: TRUCK-FLEET INC. VIRTUAL COMPANY: JUST-IN-TIME AT VMH. Bibliography. The Philosophy of JIT. Eliminate Waste. A Broad View of Operations. Simplicity. Continuous Improvement. CHAPTER 7. JUST-IN-TIME AND LEAN SYSTEMS. Principles of Forecasting. Steps in the Forecastng Process. Links to Practice: Intel Corporation. Types of Forecasting Methods. Links to Practice: Improving Sales Forecasting. Qualitative Methods. Quantitative Methods. Time Series Models. Forecasting Level or Horizontal Pattern. Forecasting Trend. Forecasting Seasonality. Links to Practice: The Ski Industry Forecast. Causal Models. Linear Regression. Correlation Coefficient. Multiple Regression. Measuring Forecast Accuracy. Forecast Accuracy Measures. Tracking Signal. Selecting the Right Forecasting Model. Forecasting Software. Spreadsheets. Statistical Packages. Specialty Forecasting Packages. Guidelines for Selecting Forecasting Software. Focus Forecasting. Combining Forecasts. Links to Practice: Combining Methods in Weather Forecasting. Collaborative Planning, Forecasting, and Replenishment (CPFR). OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review. Solved Problems. Discussion Questions/Problems. CASE: BRAM-WEAR. CASE: THE EMERGENCY ROOM (ER) AT NORTHWEST GENERAL (A). INTERACTIVE LEARNING. INTERNET CHALLENGE: ON-LINE DATA ACCESS. VIRTUAL COMPANY: FORECASTING. Bibliography. CHAPTER 8. FORECASTING. Capacity Planning. Why Is Capacity Planning Important?. Links to Practice: Capacity Planning in the ER. Measuring Capacity. Capacity Considerations. Links to Practice: Focus in the Retail Industry. Making Capacity Planning Decisions. Identify Capacity Requirements. Develop Capacity Alternatives. Evaluate Capacity Alternatives. Decision Trees. Location Analysis. What Is Facility Location?. Factors Affecting Location Decisions. Globalization. Procedure for Making Location Decisions. Procedures for Evaluating Location Alternatives. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms/Formula Review. Solved Problems. Discussion Questions/Problems. CASE: DATA TECH INC. CASE: THE EMERGENCY ROOM (ER) AT NORTHWEST GENERAL (B). INTERACTIVE LEARNING. INTERNET CHALLENGE: EDS OFFICE SUPPLIES, INC. VIRTUAL COMPANY: CAPACITY ANALYSIS AT VALLEY MEMORIAL HOSPITAL. Bibliography. CHAPTER 9. CAPACITY PLANNING AND FACILITY LOCATION. What Is Layout Planning?. Types of Layouts. Process Layouts. Links to Practice: Wal-Mart Stores, Inc. Product Layouts. Links to Practice: Toyota Motor Corporation. Hybrid Layouts. Fixed-Position Layouts. CHAPTER 10. FACILITY LAYOUT. Designing Process Layouts. Step 1: Gather Information. Step 2: Develop a Block Plan. Step 3: Develop a Detailed Layout. Special Cases of Process Layout. Warehouse Layouts. Office Layouts. Designing Product Layouts. Step 1: Identify Tasks and Their Immediate Predecessors. Step 2: Determine Output Rate. Step 3: Determine Cycle Time. Step 4: Compute the Theoretical Minimum Number of Stations. Step 5: Assign Tasks to Workstations (Balance the Line). Step 6: Compute Efficiency, Idle Time, and Balance Delay. Other Considerations. Hybrid Layouts. Group Technology (Cell) Layouts. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms. Formula Review/Solved Problems. Discussion Questions/Problems. CASE: SAWHILL ATHLETIC CLUB (A). CASE: SAWHILL ATHLETIC CLUB (B). INTERACTIVE LEARNING. INTERNET CHALLENGE: DJ AND ASSOCIATES, INC. VIRTUAL COMPANY: LAYOUT DESIGN AT VALLEY MEMORIAL HOSPITAL. Bibliography. The Alternative Workplace. Links to Practice: AT&T. Methods Analysis. The Work Environment. Work Measurement. Costing. Performance. Planning. Setting Standard Times. How to Do a Time Study. Elemental Time Data. Predetermined Time Data. Work Sampling. Compensation. Time-Based Systems. Output-Based Systems. Group Incentive Plans. Incentive Plan Trends. Learning Curves. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms. Formula Review/Solved Problems. Discussion Questions. Problems. CASE: THE NAVIGATOR III. CASE: NORTHEAST STATE UNIVERSITY. INTERACTIVE LEARNING. INTERNET CHALLENGE: E-COMMERCE JOB DESIGN. VIRTUAL COMPANY: WORK SYSTEM DESIGN AT VALLEY MEMORIAL HOSPITAL. Bibliography. Designing a Work System. Job Design. Designing a Job. Links to Practice: SAS Institute Inc. Machines or People?. Level of Labor Specialization. Eliminating Employee Boredom. Team Approaches to Job Design. Links to Practice: The Santa Cruz Operation, Inc. CHAPTER 11. WORK SYSTEM DESIGN. Types of Inventory. How Companies Use Their Inventory. Objectives of Inventory Management. Customer Service. Cost-Efficient Operations. Minimum Inventory Investment. Relevant Inventory Costs. Item Costs. Holding Costs. Ordering Costs. Shortage Costs. Determining Order Quantities. CHAPTER 12. INDEPENDENT DEMAND INVENTORY MANAGEMENT. Mathematical Models for Determining Order Quantity. Economic Order Quantity (EOQ). Calculating the EOQ. Economic Production Quantity (EPQ). Quantity Discount Model. Determining Safety Stock Levels. How Much Safety Stock?. Periodic Review System. Comparison of Continuous Review Systems and Periodic Review Systems. The Single-Period Inventory Model. ABC Inventory Classification. Procedure for an ABC Inventory Analysis. Inventory Control Using ABC Classification. Justifying Smaller Order Quantities. Links to Practice: Kenworth Trucks. Understanding the EPQ Factors. Inventory Record Accuracy. Links to Practice: Cisco Systems, Inc. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms. Formula Review/Solved Problems. Discussion Questions/Problems. CASE: FABQUAL LTD. CASE: KAYAKS!INCORPORATED. INTERACTIVE LEARNING. INTERNET CHALLENGE: COMMUNITY FUND RAISER (A). VIRTUAL COMPANY: INDEPENDENT DEMAND INVENTORY MANAGEMENT. Bibliography. Demand-Based Options. Capacity-Based Options. Evaluating the Current Situation. Links to Practice: UPS Hires Seasonal Workers. Developing the Aggregate Plan. Aggregate Plans for Companies with Tangible Products. Aggregate Plans for Service Companies with Nontangible Products. Master Production Scheduling. MPS as a Basis of Communication. Objectives of Master Scheduling. Developing an MPS. Rough-Cut Capacity Planning. Evaluating and Accepting the MPS. Using the MPS. Using the ATP Records. Stabilizing the MPS. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions. Problems. CASE: NEWMARKET INTERNATIONAL MANUFACTURING COMPANY (A). CASE: NEWMARKET INTERNATIONAL MANUFACTURING COMPANY (B). INTERACTIVE LEARNING. INTERNET CHALLENGE: CRUISING. VIRTUAL COMPANY: AGGREGATE PLANNING. Bibliography. The Role of Aggregate Planning. Marketing Plan. Aggregate or Production Plan. Financial and Engineering Plans. Master Production Schedule. Links to Practice: Apple Computer, Inc. Types of Aggregate Plans. Level Aggregate Plan. Chase Aggregate Plan. Hybrid Aggregate Plan. Aggregate Planning Options. CHAPTER 13. AGGREGATE PLANNING. Enterprise Resource Planning. ERP Modules. The Evolution of ERP. First Generation ERP. Second Generation ERP. Links to Practice: Cybex International, Inc. The Benefits of ERP. Links to Practice: i2 Technologies. Links to Practice: SAP AG. The Cost of ERP Systems. Links to Practice: Hershey Foods Corporation. CHAPTER 14. RESOURCE PLANNING. Material Planning Systems. An Overview of MRP. Types of Demand. Objectives of MRP. MRP Inputs. Authorized MPS. Inventory Records. Bills of Material. The MRP Explosion Process. Action Notices. Comparison of Lot Size Rules. The Role of Capacity Requirements Planning. (CRP). OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions. Problems. CASE: NEWMARKET INTERNATIONAL MANUFACTURING COMPANY (C). CASE: DESSERTS BY J.B. INTERACTIVE LEARNING. INTERNET CHALLENGE: THE GOURMET DINNER. VIRTUAL COMPANY: ERP SYSTEM FOR VALLEY MEMORIAL HOSPITAL. Bibliography. Average Number of Jobs in the System. Makespan. Job Lateness and Tardiness. Comparing Priority Rules. Comparing SPT and S/RO. Sequencing Jobs through Two Workcenters. Scheduling Bottlenecks. Links to Practice: 1-800-Flowers.com. Theory of Constraints. Scheduling for Service Organizations. Scheduling Services Demanded. Scheduling Employees. Developing a Workforce Schedule. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights/Key Terms/Formula Review. Solved Problems. Discussion Questions/Problems. CASE: AIR TRAFFIC CONTROLLER SCHOOL (ATCS). CASE: SCHEDULING AT RED, WHITE AND BLUE FIREWORKS COMPANY. INTERACTIVE LEARNING. INTERNET CHALLENGE: BATTER UP. VIRTUAL COMPANY: SCHEDULING. Bibliography. Scheduling Operations. High-Volume Operations. Characteristics of Flow Operations. Low-Volume Operations. Gantt Chart. Scheduling Work. Infinite Loading. Finite Loading. Forward Scheduling. Backward Scheduling. Monitoring Work Flow. How to Sequence Jobs. Priority Rules. How to Use Priority Rules. Measuring Performance. Links to Practice: Airline Scheduling. Job Flow Time. CHAPTER 15. SCHEDULING. Project Life Cycle. Conception. Feasibility Analysis or Study. Planning. Execution. Termination. Network Planning Techniques. Links to Practice: PERT and the Polaris Missile. Step 1: Describe the Project. Step 2: Diagram the Network. Step 3: Estimate the Project's Completion Time. Step 3 (a): Deterministic Time Estimates. Step 3 (b): Probabilistic Time Estimates. Step 4:Monitor the Project's Progression. Links to Practice: Managing the Olympic Games. CHAPTER 16. PROJECT MANAGEMENT. Estimating the Probability of Completion Dates. Reducing Project Completion Time. Crashing Projects. The Critical Chain Approach. Adding Safety Time. Wasting Safety Time. OM ACROSS THE ORGANIZATION. INSIDE OM. Chapter Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions. Problems. CASE: THE RESEARCH OFFICE MOVES. CASE: WRITING A TEXTBOOK. INTERACTIVE LEARNING. INTERNET CHALLENGE: CREATING MEMORIES. VIRTUAL COMPANY: PROJECT MANAGEMENT. Bibliography. What Are Models?. The Spreadsheet Modeling Process. Evaluating Spreadsheet Models. Planning the Model. Implementing the Model in Excel. Assessing the Model. Using the Model for Analysis. Adding Data Tables. Graphing the Model Results. Planning the Model. Constructing the Model in Excel. Reviewing Relative and Absolute Cell Referencing. Entering Formulas in the Model. Useful Spreadsheet Tips. Important Excel Formulas. INSIDE OM. Supplement Highlights/Key Terms/Discussion Questions. Problems. CASE: DIET PLANNING. INTERACTIVE LEARNING. Bibliography. SUPPLEMENT A. SPREADSHEET MODELING: AN INTRODUCTION (CD Only). Introduction. Algebraic Formulation. Examining the Formulation. Spreadsheet Model Development. Testing the Model. Solver Basics. Setting Up and Running Solver. Solving the Problem. Interpreting the Solution. Solver Solution Reports. Recap. Outcomes of Linear Programming Problems. INSIDE OM. Supplement Highlights/Key Terms/Solved Problems. Discussion Questions. Problems. CASE: EXETER ENTERPRISES. INTERACTIVE LEARNING. Bibliography. SUPPLEMENT B. INTRODUCTION TO OPTIMIZATION (CD Only). Uncertainty and Risk in Decision Making. Simulation Overview and Software. Simulation Modeling Process. Random Number Generation in Excel. Bernoulli Distribution: Simulating the Flip of a Coin. Discrete Uniform Distribution: Simulating the Roll of a Die. General Discrete Distribution. Continuous Probability Distributions. Simulating Continuous Probability Distributions. Application of Simulation to Decision Making. Deterministic Model. Simulation Model. Replicating the Model. Analyzing the Results. Using a Data Table to Run a Simulation. Recap. Other Applications of Simulation. SUPPLEMENT C INTRODUCTION TO SIMULATION (CD Only). INSIDE OM. Supplement Highlights/Key Terms/Solved Problems. Discussion Questions/Problems. CASE: CAR REPLACEMENT DECISION. INTERACTIVE LEARNING. Bibliography. Larger-Scale Waiting Line Systems. INSIDE OM. Supplement Highlights. Key Terms/Formula Review/Solved Problems. Discussion Questions. Problems. CASE: THE COPY CENTER HOLDUP. INTERACTIVE LEARNING. Bibliography. APPENDIX A: SOLUTIONS TO SELECTED PROBLEMS. APPENDIX B: STANDARD NORMAL DISTRIBUTION. APPENDIX C: P-CHART. PHOTO CREDITS. COMPANY INDEX. SUBJECT INDEX. Elements ofWaiting Lines. Links to Practice: Waiting for Fast Food. The Customer Population. The Service System. Waiting Line Priority Rules. Waiting Line Performance Measures. Single-Server Waiting Line Model. MultiServer Waiting Line Model. Changing Operational Characteristics. SUPPLEMENT D WAITING LINE MODELS (CD Only). Appendix A: Solutions to Selected Problems. Appendix B: Standard Normal Distribution. Appendix C: P-Chart. Photo Credits. Company Index. Subject Index.