Franklyn A Plus Pass
Operations Management In The Supply Chain:
Sustainability And Resilience Chapter 1-18
Page | 1
, Franklyn A Plus Pass
TABLES OF CONTENTS
PART ONE: INTRODUCTION
1. Introduction to Operations
2. Operations and Supply Chain Strategy
3. Product Design
PART TWO: PROCESS DESIGN
4. Process Selection
5. Service Process Design
6. Process-Flow Analysis
7. Lean Thinking and Lean Systems
PART THREE: QUALITY
8. Managing Quality
9. Quality Control and Improvement
PART FOUR: CAPACITY AND SCHEDULING
10. Forecasting
Supplement: Advanced Methods
11. Capacity Planning
12. Scheduling Operations
13. Project Planning and Scheduling
PART FIVE: INVENTORY
14. Independent Demand Inventory
Supplement: Advanced Models
15. Materials Requirements Planning and ERP
PART SIX: SUPPLY CHAIN DECISIONS
16. Supply Chain Management
17. Sourcing
18. Global Logistics
Page | 2
, Franklyn A Plus Pass
Chapter 1
The Operations Function
Teaching Notes
This chapter is aimed at providing an overall framework for the textbook and the field of operations and
supply chain management. A new section is added on the role of operations and supply chain
management in the economy and in the firm. The chapter provides a framework that serves as a beneficial
way of organizing students' understanding of five major operations and supply chain management
decision types: process, quality, capacity, inventory and supply chain. The cross-functional view of
operations management (OM) is also introduced in this chapter to provide relevance for the course in
particular for non-majors. When operations management is related to marketing and finance as a major
business function, all students readily understand the role of operations and supply chain in business.
In teaching this chapter, we highlight the important role that OM and supply chains play in the economy
and the firm. The five decision areas in operations and supply chain and the importance of crossfunctional
decision making are emphasized. We also spend some time discussing the importance of both services
and manufacturing, and how business operations are managed within larger, multi-organization supply
chains. We introduce the concept of contingencies and explain that the textbook includes information on
when particular OM activities are „best practices’ and when they are not. We also define analytics and
explain how analytics is used in operations and supply chain management decisions. Finally, we illustrate
major OM and supply chain decisions using the Pizza U.S.A. example, as well as in other types of
businesses. Students may find the typical jobs in OM and supply chain from Monster.com (in a Chapter 1
Operations Leader box).
The Learning Enrichment section at the end of the chapter provides videos and/or websites that students
can access outside of class or instructors can use in class. These resources help bring the chapter materials
to life, and tap into student interest.
Learning Enrichment (for self-study or instructor assignments)
Answers to Questions
1. Operations and supply chain management is ubiquitous, that is present in every organization.
Daily, we come in contact with various goods and services produced by the transformation of inputs to
outputs under the control of operations managers. Operations and supply chain management is a core
business function along with marketing and finance. All decisions are cross-functional in nature. You will
be interacting with the operations function no matter what career you choose. Much of what is learned
related to operations and supply chain management can be applied to other functions.
2. Operations management is a broader term than production management, encompassing service
organizations as well as manufacturing. Operations management is also a more recent term replacing the
earlier term production management.
Page | 3
, Franklyn A Plus Pass
3. The difference between operations and supply chain management is operations management
focuses on decisions to manage the transformation process that converts inputs into desired finished
goods or services within a single firm. Operations management occurs within and across multiple
facilities in an organization. Supply chain management relates to the network of manufacturing and
service operations that supply each other from raw materials through manufacturing to the ultimate
customer. The supply chain consists of the flows of materials, money, and information along the entire
chain of sourcing, production, and distribution. The supply chain links the operations of many different
organizations in order to satisfy customer needs.
4. Responsibilities differ among operations, marketing and finance managers. A marketing manager
identifies demand for goods or services and develops the market, whereas the operations manager assures
supply of the products or services. The finance manager acquires and allocates the capital resources for
the other functions. Similarities in the three functions include managerial decision making and shared
organizational goals.
5. Operations, marketing, and finance are primary functions of the organization. Human resources,
information systems, and accounting are supporting functions that provide resources and services for the
three primary functions. The operations manager applies resources, analysis and information provided by
supporting functions and integrates them into decision making. The focus of the operations manager is on
decision making rather than on analytic methods.
6. a. The purpose of a college library is to make information available to students and faculty for
research and studying. The output is the bundle of services provided along with facilitating goods:
buildings, computers, books, catalogs and indices.
Process -- facility layout considering book stacks, reference rooms, computer access on-site and from
offsite, degree of computer use and procedures for accessing and circulating information. They must not
only select the appropriate process, but manage the flow of users and information.
Quality -- standards of the college library profession are adopted; quality measures include: ratio of
consulting staff hours to students, rate of new book and other material purchases, number of complaints,
student satisfaction.
Capacity -- forecasting of library user needs contributes to decisions on building size, volume of space for
study and materials, print acquisitions, computer work stations, staff hiring and scheduling of shifts.
Inventory -- decisions concerning the number of books, periodicals, etc. to stock.
Supply Chain – decisions about sourcing of materials and information. Also, decisions are made about
best to distribute printed and online materials, along with moving materials and information into the
library.
b. The purpose of a hotel is to attract and satisfy conventioneers and overnight guests. The output is the
bundle of services and goods provided: overnight accommodations, maid service, room service,
television, pool, bar, coffee shop.
Page | 4
Operations Management In The Supply Chain:
Sustainability And Resilience Chapter 1-18
Page | 1
, Franklyn A Plus Pass
TABLES OF CONTENTS
PART ONE: INTRODUCTION
1. Introduction to Operations
2. Operations and Supply Chain Strategy
3. Product Design
PART TWO: PROCESS DESIGN
4. Process Selection
5. Service Process Design
6. Process-Flow Analysis
7. Lean Thinking and Lean Systems
PART THREE: QUALITY
8. Managing Quality
9. Quality Control and Improvement
PART FOUR: CAPACITY AND SCHEDULING
10. Forecasting
Supplement: Advanced Methods
11. Capacity Planning
12. Scheduling Operations
13. Project Planning and Scheduling
PART FIVE: INVENTORY
14. Independent Demand Inventory
Supplement: Advanced Models
15. Materials Requirements Planning and ERP
PART SIX: SUPPLY CHAIN DECISIONS
16. Supply Chain Management
17. Sourcing
18. Global Logistics
Page | 2
, Franklyn A Plus Pass
Chapter 1
The Operations Function
Teaching Notes
This chapter is aimed at providing an overall framework for the textbook and the field of operations and
supply chain management. A new section is added on the role of operations and supply chain
management in the economy and in the firm. The chapter provides a framework that serves as a beneficial
way of organizing students' understanding of five major operations and supply chain management
decision types: process, quality, capacity, inventory and supply chain. The cross-functional view of
operations management (OM) is also introduced in this chapter to provide relevance for the course in
particular for non-majors. When operations management is related to marketing and finance as a major
business function, all students readily understand the role of operations and supply chain in business.
In teaching this chapter, we highlight the important role that OM and supply chains play in the economy
and the firm. The five decision areas in operations and supply chain and the importance of crossfunctional
decision making are emphasized. We also spend some time discussing the importance of both services
and manufacturing, and how business operations are managed within larger, multi-organization supply
chains. We introduce the concept of contingencies and explain that the textbook includes information on
when particular OM activities are „best practices’ and when they are not. We also define analytics and
explain how analytics is used in operations and supply chain management decisions. Finally, we illustrate
major OM and supply chain decisions using the Pizza U.S.A. example, as well as in other types of
businesses. Students may find the typical jobs in OM and supply chain from Monster.com (in a Chapter 1
Operations Leader box).
The Learning Enrichment section at the end of the chapter provides videos and/or websites that students
can access outside of class or instructors can use in class. These resources help bring the chapter materials
to life, and tap into student interest.
Learning Enrichment (for self-study or instructor assignments)
Answers to Questions
1. Operations and supply chain management is ubiquitous, that is present in every organization.
Daily, we come in contact with various goods and services produced by the transformation of inputs to
outputs under the control of operations managers. Operations and supply chain management is a core
business function along with marketing and finance. All decisions are cross-functional in nature. You will
be interacting with the operations function no matter what career you choose. Much of what is learned
related to operations and supply chain management can be applied to other functions.
2. Operations management is a broader term than production management, encompassing service
organizations as well as manufacturing. Operations management is also a more recent term replacing the
earlier term production management.
Page | 3
, Franklyn A Plus Pass
3. The difference between operations and supply chain management is operations management
focuses on decisions to manage the transformation process that converts inputs into desired finished
goods or services within a single firm. Operations management occurs within and across multiple
facilities in an organization. Supply chain management relates to the network of manufacturing and
service operations that supply each other from raw materials through manufacturing to the ultimate
customer. The supply chain consists of the flows of materials, money, and information along the entire
chain of sourcing, production, and distribution. The supply chain links the operations of many different
organizations in order to satisfy customer needs.
4. Responsibilities differ among operations, marketing and finance managers. A marketing manager
identifies demand for goods or services and develops the market, whereas the operations manager assures
supply of the products or services. The finance manager acquires and allocates the capital resources for
the other functions. Similarities in the three functions include managerial decision making and shared
organizational goals.
5. Operations, marketing, and finance are primary functions of the organization. Human resources,
information systems, and accounting are supporting functions that provide resources and services for the
three primary functions. The operations manager applies resources, analysis and information provided by
supporting functions and integrates them into decision making. The focus of the operations manager is on
decision making rather than on analytic methods.
6. a. The purpose of a college library is to make information available to students and faculty for
research and studying. The output is the bundle of services provided along with facilitating goods:
buildings, computers, books, catalogs and indices.
Process -- facility layout considering book stacks, reference rooms, computer access on-site and from
offsite, degree of computer use and procedures for accessing and circulating information. They must not
only select the appropriate process, but manage the flow of users and information.
Quality -- standards of the college library profession are adopted; quality measures include: ratio of
consulting staff hours to students, rate of new book and other material purchases, number of complaints,
student satisfaction.
Capacity -- forecasting of library user needs contributes to decisions on building size, volume of space for
study and materials, print acquisitions, computer work stations, staff hiring and scheduling of shifts.
Inventory -- decisions concerning the number of books, periodicals, etc. to stock.
Supply Chain – decisions about sourcing of materials and information. Also, decisions are made about
best to distribute printed and online materials, along with moving materials and information into the
library.
b. The purpose of a hotel is to attract and satisfy conventioneers and overnight guests. The output is the
bundle of services and goods provided: overnight accommodations, maid service, room service,
television, pool, bar, coffee shop.
Page | 4
