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, Operations and Supply Chain Management
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TABLEOFCONTENTS b b
Chapter 1: Introduction
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Chapter 2: Strategy
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Chapter 3: Design of Products and Services
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Chapter 4: Projects
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Chapter 5: Strategic Capacity Management
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Chapter 6: Learning Curves
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Chapter 7: Manufacturing Processes
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Chapter 8: Facility Layout
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Chapter 9: Service Processes
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Chapter 10: Waiting Line Analysis and Simulation
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Chapter 11: Process Design and Analysis
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Chapter 12: Quality Management
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Chapter 13: Statistical Quality Control
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Chapter 14: Lean Supply Chains
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Chapter 15: Logistics and Distribution Management
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Chapter 16: Global Sourcing and Procurement
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Chapter 17: The Internet of Things and ERP
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Chapter 18: Forecasting
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Chapter 19: Sales and Operations Planning
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Chapter 20: Inventory Management
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Chapter 21: Material Requirements Planning
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Chapter 22: Workcenter Scheduling
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, Operations and Supply Chain Management b b b b
CHAPTER1 b
OPERATIONSAND SUPPLYCHAINMANAGEMENT b b b b
DiscussionQuestions b
1. Using Exhibit 1.3 as a model, describe the source-make-deliver-return relationships in
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thefollowing systems:
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a. An airline b
Source: Aircraftmanufacturer, in-flight food,repair parts,computer systems
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Make: Aircraft and flight crew scheduling, ground services provided at airports,
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aircraftmaintenance and repair
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Deliver: Outbound and arriving passenger service, baggage handling
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Return: Resolve any post-service issues such as lost ordamaged luggage
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b. An automobile manufacturer
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Source: Suppliers of components and raw materials b b b b b b
Make: Manufacturing of vehicles and components or subassemblies to be sold as spareparts
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Deliver: Delivery to and sales from dealerships, delivery of spare parts to the
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wholesalesystem b b
Return: Warranty and recall repairs, trade-ins b b b b b
c. A hospital
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Source: Medical supplies, cleaning services, disposal services, food services,
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qualifiedpersonnel b b
Make: Inpatientrooms, outpatient clinics, emergencyroom, operatingrooms
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Deliver: Scheduling patients, providing treatment, ambulance service, family
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counselingReturn: Billing errors, follow up visits
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d. An insurance company
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Source: Supplies needed for theoffice, underwriters, legal authority tooperate
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, Operations and Supply Chain Management b b b b
Make: Establish policy guidelines and pricing, field agent/representative and facility
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network, develop Internet service capabilities, establish preferred vehicle repair
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servicenetwork
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Deliver: Meet with and advise clients, write policies, process and pay b b b b b b b b b b
claimsReturn: refund of overpayments
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2. Define the service package of your college or university. What is its strongest element? What isits
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weakest one?
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The categories with examples are:
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Supporting facility - location, buildings, labs, parking Facilitating b b b b b b b
goods – class schedules,computers, books, chalk
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Explicit services – classes with qualified instructors, placement b b b b b b b
officesImplicit services – status and reputation (e.g., Ivy League schools)
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At Indiana University and the University of Southern California, among their strongest elements
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are their business schools and their Operations Management programs (of course).Both also
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have very dedicated alumni networks. A weak element of Indiana University is its weak football
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program; for USC, weakelements are on-campus parking and housing.
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3. What service industryhas impressed you the most with its innovativeness?
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Our vote goes to cruise lines which have introduced such onboard innovations as wave machines
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for belly boarding and rock climbing walls, as well as all sorts of other amenities tokeep cruisers
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involved. The industry is doing record business as well.
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Some of the standout companies in less innovative industries are Bank of America (has a formalized
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research program to try out new customer services/amenities such as video screensin next to teller
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lines), Intuit (e.g., putting Quicken money management software online), Ikea,JetBlue Airlines, and
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Progressive Insurance (discussed later inthe book).
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4. What is product-service bundling and what are the benefits to customers?
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Product-service bundling is adding Value-added services to a firm’s product offerings to b b b b b b b b b b b
createmore value for the customer. This provides benefits in two areas. First, this differentiates
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theorganization from the competition. Secondly, these services tie customers to the organizationin
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a positive way. Alternatively, bundling can also involve adding products to a service, for example,
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adding the sale of convenience items and snacks at a hotel.
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5. What is the difference between aservice and a good? b b b b b b b b b
A service is an intangible process (you can’t hold it in your hands), while a good is the physicaloutput
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of a process.
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6. Look at the job postings at http://www.indeed.com and evaluate the opportunities for
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anOSM major with several years of experience.
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