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