1-1
, TABLE OF CONTENTS
n n
Chapter n1: nIntroduction
Chapter n2: nStrategy
Chapter n3: nDesign nof nProducts nand nServices
n Chapter n4: nProjects
Chapter n5: nStrategic nCapacity nManagement
n Chapter n6: nLearning nCurves
Chapter n7: nManufacturing nProcesses
n Chapter n8: nFacility nLayout
Chapter n9: nService nProcesses
Chapter n10: nWaiting nLine nAnalysis nand nSimulation
n Chapter n11: nProcess nDesign nand nAnalysis
Chapter n12: nQuality nManagement
n Chapter n13: nStatistical nQuality nControl
n Chapter n14: nLean nSupply n Chains
Chapter n15: nLogistics nand nDistribution
Management nChapter n16: nGlobal nSourcing nand
n
n Procurement nChapter n17: nThe nInternet nof nThings
n and nERP n Chapter n18: nForecasting
Chapter n19: nSales nand nOperations nPlanning
n Chapter n20: nInventory nManagement
Chapter n21: nMaterial nRequirements nPlanning
1-2
, .
Chapter 22: Workcenter Scheduling
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 thefollowing systems:
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
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
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
wholesalesystem
Return: Warranty and recall repairs, trade-ins
c. A hospital
Source: Medical supplies, cleaning services, disposal services, food services,
qualifiedpersonnel
Make: Inpatient rooms, outpatient clinics, emergency room, operating rooms
Deliver: Scheduling patients, providing treatment, ambulance service, family
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 servicenetwork
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 isits weakest one?
The categories with examples are:
Supporting facility - location, buildings, labs, parking
Facilitating goods – class schedules, computers, books,
chalk
Explicit services – classes with qualified instructors, placement
officesImplicit services – status and reputation (e.g., Ivy League
schools)
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.
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
well.
Some of the standout companies in less innovative industries are Bank of America (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 (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.
1-4
, TABLE OF CONTENTS
n n
Chapter n1: nIntroduction
Chapter n2: nStrategy
Chapter n3: nDesign nof nProducts nand nServices
n Chapter n4: nProjects
Chapter n5: nStrategic nCapacity nManagement
n Chapter n6: nLearning nCurves
Chapter n7: nManufacturing nProcesses
n Chapter n8: nFacility nLayout
Chapter n9: nService nProcesses
Chapter n10: nWaiting nLine nAnalysis nand nSimulation
n Chapter n11: nProcess nDesign nand nAnalysis
Chapter n12: nQuality nManagement
n Chapter n13: nStatistical nQuality nControl
n Chapter n14: nLean nSupply n Chains
Chapter n15: nLogistics nand nDistribution
Management nChapter n16: nGlobal nSourcing nand
n
n Procurement nChapter n17: nThe nInternet nof nThings
n and nERP n Chapter n18: nForecasting
Chapter n19: nSales nand nOperations nPlanning
n Chapter n20: nInventory nManagement
Chapter n21: nMaterial nRequirements nPlanning
1-2
, .
Chapter 22: Workcenter Scheduling
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 thefollowing systems:
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
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
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
wholesalesystem
Return: Warranty and recall repairs, trade-ins
c. A hospital
Source: Medical supplies, cleaning services, disposal services, food services,
qualifiedpersonnel
Make: Inpatient rooms, outpatient clinics, emergency room, operating rooms
Deliver: Scheduling patients, providing treatment, ambulance service, family
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 servicenetwork
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 isits weakest one?
The categories with examples are:
Supporting facility - location, buildings, labs, parking
Facilitating goods – class schedules, computers, books,
chalk
Explicit services – classes with qualified instructors, placement
officesImplicit services – status and reputation (e.g., Ivy League
schools)
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.
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
well.
Some of the standout companies in less innovative industries are Bank of America (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 (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.
1-4
