INSTRUCTOR MANUAL FOR @lk @lk
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & @lk @lk @lk @lk @lk @lk @lk
CASES, 8th Edition @lk @lk
Chapter 1-18
@lk @lk
Chapter 1 @lk
The Operations Function
@lk @lk
Teaching Notes @lk
This chapter is aimed at providing an overall framework for the textbook and the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
field of operations and supply chain management. A new section is added on the role
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
of operations and supply chain management in the economy and in the firm.
@lk @lk
The @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @ l k
@lk
chapter provides a framework that serves as a beneficial way of organizing students'
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
understanding of five major operations and supply chain management decision types:
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l k
process, quality, capacity, inventory and supply chain. The cross-functional view of
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
operations management (OM) is also introduced in this chapter to provide relevance for
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
the course in particular for non-majors. When operations management is related to
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk
@lk
marketing and finance as a major business function, all students readily understand the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
role of operations and supply chain in business.
@lk @lk @lk @lk @lk @lk @lk
In teaching this chapter, we highlight the important role that OM and supply
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
chains play in the economy and the firm. The five decision areas in operations and
@lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
@lk
supply chain and the importance of cross-functional decision making are emphasized.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l k
We also spend some time discussing the importance of both services and
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
manufacturing, and how business operations are managed within larger, multi-organization
@lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
supply chains. We introduce the concept of contingencies and explain that the textbook
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
includes information on when particular OM activities are „best practices‟ and when
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
they are not. We also define analytics and explain how analytics is used in operations
@lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
and supply chain management decisions. Finally, we illustrate major OM and supply
@lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
@lk
chain decisions using the Pizza U.S.A. example, as well as in other types of businesses.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l
Students may find the typical jobs in OM and supply chain from Monster.com (in a
k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
Chapter 1 Operations Leader box). @lk @lk @lk @lk
The Learning Enrichment section at the end of the chapter provides videos and/or
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
websites that students can access outside of class or instructors can use in class.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@
These resources help bring the chapter materials to life, and tap into student interest.
l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
Learning Enrichment (for self-study or instructor assignments) @lk @lk @lk @lk @lk @lk
What is Operations Management
@lk @lk @lk
Video
https://youtu.be/leMOReAE2hk @lk
@ l k
5:19
@lk
Supply Chain Management: A Force for
@lk @lk @lk @lk @lk
Video
Good. https://youtu.be/Bl0UhiOvrdc
@lk @lk
5:0 @lk
1
Coca Cola: Supply Chain
@lk @lk @lk
Video
https://youtu.be/UBSOiHUctrY 2:2 @lk
9
1-1
, Sustainability Web
https://www.epa.gov/sustainability/learn-about-sustainability#what Link
Globablization Web
http://www.globalization101.org/what-is-globalization/ Link
Answers to Questions
@lk @lk
1. Operations and supply chain management is ubiquitous, that is present in every
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
organization.
@lk
Daily, we come in contact with various goods and services
@ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
produced by the transformation of inputs to outputs under the control of
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
operations managers.
@lk
Operations and supply chain management is a core
@lk @ l k @lk @lk @lk @lk @lk @lk @lk
business function along with marketing and finance. All decisions are cross-
@lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk
functional in nature. You will be interacting with the operations function no
@lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk
matter what career you choose. Much of what is learned related to operations
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk
and supply chain management can be applied to other functions.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
2. Operations management is a broader term than production management,
@lk @lk @lk @lk @lk @lk @lk @lk
encompassing service organizations as well as manufacturing.
@lk
Operations
@lk @lk @lk @lk @lk @lk @ l k
management is also a more recent term replacing the earlier term production
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
management.
@lk
3. The difference between operations and supply chain management is operations
@lk @lk @lk @lk @lk @lk @lk @lk @lk
management focuses on decisions to manage the transformation process that
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
converts inputs into desired finished goods or services within a single firm.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
Operations management occurs within and across multiple facilities in an
@ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
organization. Supply chain management relates to the network of manufacturing
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk
and service operations that supply each other from raw materials through
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
manufacturing to the ultimate customer. The supply chain consists of the flows
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
of materials, money, and information along the entire chain of sourcing,
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
production, and distribution. The supply chain links the operations of many
@lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk
different organizations in order to satisfy customer needs.
@lk @lk @lk @lk @lk @lk @lk @lk
4. Responsibilities differ among operations, marketing and finance managers. A @lk @lk @lk @lk @lk @lk @lk @ l k
marketing manager identifies demand for goods or services and develops the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
market, whereas the operations manager assures supply of the products or
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
services. The finance manager acquires and allocates the capital resources for
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
the other functions.
@lk @lk
Similarities in the three functions include managerial
@lk @ l k @lk @lk @lk @lk @lk @lk
decision making and shared organizational goals.
@lk @lk @lk @lk @lk @lk
5. Operations, marketing, and finance are primary functions of the organization.
@lk @lk @lk @lk @lk @lk @lk @lk @lk
Human resources, information systems, and accounting are supporting functions
@ l k @lk @lk @lk @lk @lk @lk @lk @lk
that provide resources and services for the three primary functions.
@lk @lk @lk
The @lk @lk @lk @lk @lk @lk @lk @ l k
operations manager applies resources, analysis and information provided by
@lk @lk @lk @lk @lk @lk @lk @lk @lk
supporting functions and integrates them into decision making. The focus of the
@lk @lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk
operations manager is on decision making rather than on analytic methods.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
6. a. @ l k @ l
The purpose of a college library is to make information available to
k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
students and faculty for research and studying. The output is the bundle
@lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk
@lk
of services provided along with facilitating goods: buildings, computers,
@lk @lk @lk @lk @lk @lk @ l k @lk
@lk
books, catalogs and indices. @lk @lk @lk
1-2
,Process -- facility layout considering book stacks, reference
@ l k @ l k @ l k @ l k @ l k @ l k @ l k
rooms, computer access
@ l k
on-site and
@ l k
from off-site, degree
@lk @ l k @ l k @ l k @ l k @ l k
@
of computer use and
l k @ l k
procedures for@ l k @ l k @ l k @ l k
1-3
, 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.
Process -- a set of processes for reserving and payment of rooms, housekeeping,
restaurant, recreation services, and ongoing study of service methods; the people
who implement these processes including receptionists, accountants,
housekeepers, and maintenance workers.
Quality -- hotel industry standards and the market positioning of the hotel (first
class vs. budget) determine standards; quality measures include number of return
visitors, conventions booked, and ratings by industry evaluators.
Capacity -- number of units and beds; appropriate size for restaurant, bar and
convention halls; staffing for housekeeping, restaurant and office. Scheduling of
the workforce is also included.
Inventory -- goods to meet requirements for room upkeep (towels, sheets, etc.),
convention catering (glasses, dishes, food), restaurant and bar.
Supply chain – decisions about sourcing the various materials and services used
by the hotel. Logistics is about moving materials and services to the hotel and
then return and recycling of goods.
c. The purpose of a small manufacturing firm is to provide customers with a quality
product at a reasonable price. The output consists of not only the physical good
but also any services that accompany the good, such as assistance in selecting the
good (the shopping process) or a warranty.
Process -- the process of securing the raw materials, transforming and assembling
them into a finished good, packaging the product, and arranging for its delivery to
customers.
1-4
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & @lk @lk @lk @lk @lk @lk @lk
CASES, 8th Edition @lk @lk
Chapter 1-18
@lk @lk
Chapter 1 @lk
The Operations Function
@lk @lk
Teaching Notes @lk
This chapter is aimed at providing an overall framework for the textbook and the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
field of operations and supply chain management. A new section is added on the role
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
of operations and supply chain management in the economy and in the firm.
@lk @lk
The @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @ l k
@lk
chapter provides a framework that serves as a beneficial way of organizing students'
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
understanding of five major operations and supply chain management decision types:
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l k
process, quality, capacity, inventory and supply chain. The cross-functional view of
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
operations management (OM) is also introduced in this chapter to provide relevance for
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
the course in particular for non-majors. When operations management is related to
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk
@lk
marketing and finance as a major business function, all students readily understand the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
role of operations and supply chain in business.
@lk @lk @lk @lk @lk @lk @lk
In teaching this chapter, we highlight the important role that OM and supply
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
chains play in the economy and the firm. The five decision areas in operations and
@lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
@lk
supply chain and the importance of cross-functional decision making are emphasized.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l k
We also spend some time discussing the importance of both services and
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
manufacturing, and how business operations are managed within larger, multi-organization
@lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
supply chains. We introduce the concept of contingencies and explain that the textbook
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
includes information on when particular OM activities are „best practices‟ and when
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
they are not. We also define analytics and explain how analytics is used in operations
@lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
and supply chain management decisions. Finally, we illustrate major OM and supply
@lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
@lk
chain decisions using the Pizza U.S.A. example, as well as in other types of businesses.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@ l
Students may find the typical jobs in OM and supply chain from Monster.com (in a
k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
Chapter 1 Operations Leader box). @lk @lk @lk @lk
The Learning Enrichment section at the end of the chapter provides videos and/or
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
websites that students can access outside of class or instructors can use in class.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@
These resources help bring the chapter materials to life, and tap into student interest.
l k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
Learning Enrichment (for self-study or instructor assignments) @lk @lk @lk @lk @lk @lk
What is Operations Management
@lk @lk @lk
Video
https://youtu.be/leMOReAE2hk @lk
@ l k
5:19
@lk
Supply Chain Management: A Force for
@lk @lk @lk @lk @lk
Video
Good. https://youtu.be/Bl0UhiOvrdc
@lk @lk
5:0 @lk
1
Coca Cola: Supply Chain
@lk @lk @lk
Video
https://youtu.be/UBSOiHUctrY 2:2 @lk
9
1-1
, Sustainability Web
https://www.epa.gov/sustainability/learn-about-sustainability#what Link
Globablization Web
http://www.globalization101.org/what-is-globalization/ Link
Answers to Questions
@lk @lk
1. Operations and supply chain management is ubiquitous, that is present in every
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
organization.
@lk
Daily, we come in contact with various goods and services
@ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
produced by the transformation of inputs to outputs under the control of
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
operations managers.
@lk
Operations and supply chain management is a core
@lk @ l k @lk @lk @lk @lk @lk @lk @lk
business function along with marketing and finance. All decisions are cross-
@lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk
functional in nature. You will be interacting with the operations function no
@lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk
matter what career you choose. Much of what is learned related to operations
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk
and supply chain management can be applied to other functions.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
2. Operations management is a broader term than production management,
@lk @lk @lk @lk @lk @lk @lk @lk
encompassing service organizations as well as manufacturing.
@lk
Operations
@lk @lk @lk @lk @lk @lk @ l k
management is also a more recent term replacing the earlier term production
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
management.
@lk
3. The difference between operations and supply chain management is operations
@lk @lk @lk @lk @lk @lk @lk @lk @lk
management focuses on decisions to manage the transformation process that
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
converts inputs into desired finished goods or services within a single firm.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
Operations management occurs within and across multiple facilities in an
@ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
organization. Supply chain management relates to the network of manufacturing
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk
and service operations that supply each other from raw materials through
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
manufacturing to the ultimate customer. The supply chain consists of the flows
@lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk
of materials, money, and information along the entire chain of sourcing,
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
production, and distribution. The supply chain links the operations of many
@lk @lk @lk @ l k @lk @lk @lk @lk @lk @lk @lk
different organizations in order to satisfy customer needs.
@lk @lk @lk @lk @lk @lk @lk @lk
4. Responsibilities differ among operations, marketing and finance managers. A @lk @lk @lk @lk @lk @lk @lk @ l k
marketing manager identifies demand for goods or services and develops the
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
market, whereas the operations manager assures supply of the products or
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
services. The finance manager acquires and allocates the capital resources for
@lk @ l k @lk @lk @lk @lk @lk @lk @lk @lk @lk
the other functions.
@lk @lk
Similarities in the three functions include managerial
@lk @ l k @lk @lk @lk @lk @lk @lk
decision making and shared organizational goals.
@lk @lk @lk @lk @lk @lk
5. Operations, marketing, and finance are primary functions of the organization.
@lk @lk @lk @lk @lk @lk @lk @lk @lk
Human resources, information systems, and accounting are supporting functions
@ l k @lk @lk @lk @lk @lk @lk @lk @lk
that provide resources and services for the three primary functions.
@lk @lk @lk
The @lk @lk @lk @lk @lk @lk @lk @ l k
operations manager applies resources, analysis and information provided by
@lk @lk @lk @lk @lk @lk @lk @lk @lk
supporting functions and integrates them into decision making. The focus of the
@lk @lk @lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk
operations manager is on decision making rather than on analytic methods.
@lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
6. a. @ l k @ l
The purpose of a college library is to make information available to
k @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk @lk
@lk
students and faculty for research and studying. The output is the bundle
@lk @lk @lk @lk @lk @lk @ l k @lk @lk @lk @lk
@lk
of services provided along with facilitating goods: buildings, computers,
@lk @lk @lk @lk @lk @lk @ l k @lk
@lk
books, catalogs and indices. @lk @lk @lk
1-2
,Process -- facility layout considering book stacks, reference
@ l k @ l k @ l k @ l k @ l k @ l k @ l k
rooms, computer access
@ l k
on-site and
@ l k
from off-site, degree
@lk @ l k @ l k @ l k @ l k @ l k
@
of computer use and
l k @ l k
procedures for@ l k @ l k @ l k @ l k
1-3
, 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.
Process -- a set of processes for reserving and payment of rooms, housekeeping,
restaurant, recreation services, and ongoing study of service methods; the people
who implement these processes including receptionists, accountants,
housekeepers, and maintenance workers.
Quality -- hotel industry standards and the market positioning of the hotel (first
class vs. budget) determine standards; quality measures include number of return
visitors, conventions booked, and ratings by industry evaluators.
Capacity -- number of units and beds; appropriate size for restaurant, bar and
convention halls; staffing for housekeeping, restaurant and office. Scheduling of
the workforce is also included.
Inventory -- goods to meet requirements for room upkeep (towels, sheets, etc.),
convention catering (glasses, dishes, food), restaurant and bar.
Supply chain – decisions about sourcing the various materials and services used
by the hotel. Logistics is about moving materials and services to the hotel and
then return and recycling of goods.
c. The purpose of a small manufacturing firm is to provide customers with a quality
product at a reasonable price. The output consists of not only the physical good
but also any services that accompany the good, such as assistance in selecting the
good (the shopping process) or a warranty.
Process -- the process of securing the raw materials, transforming and assembling
them into a finished good, packaging the product, and arranging for its delivery to
customers.
1-4
