Operations and Supply Chain Management
z z z z
1-1
, Operations and Supply Chain Management
z z z z
TABLE OF CONTENTSz z
Chapter z1: zIntroduction
Chapter z2: zStrategy
Chapter z3: zDesign zof zProducts zand zServices
Chapter z4: zProjects
Chapter z5: zStrategic zCapacity zManagement
Chapter z6: zLearning zCurves
Chapter z7: zManufacturing zProcesses
Chapter z8: zFacility zLayout
Chapter z9: zService zProcesses
Chapter z10: zWaiting zLine zAnalysis zand zSimulation
Chapter z11: zProcess zDesign zand zAnalysis
Chapter z12: zQuality zManagement
Chapter z13: zStatistical zQuality zControl
Chapter z14: zLean zSupply zChains
Chapter z15: zLogistics zand zDistribution zManagement
Chapter z16: zGlobal zSourcing zand zProcurement
Chapter z17: zThe zInternet zof zThings zand zERP
Chapter z18: zForecasting
Chapter z19: zSales zand zOperations zPlanning
Chapter z20: zInventory zManagement
Chapter z21: zMaterial zRequirements zPlanning
1-2
, Operations and Supply Chain Management
z z z z
Chapter z22: zWorkcenter zScheduling
CHAPTER 1 z
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
z z z z
Discussion zQuestions
1. Using zExhibit z1.3 zas za zmodel, zdescribe zthe zsource-make-deliver-return
zrelationships zin zthezfollowing zsystems:
a. An zairline
Source: z Aircraft zmanufacturer, zin-flight zfood, zrepair zparts, zcomputer zsystems
Make: zAircraft zand zflight zcrew zscheduling, zground zservices zprovided zat zairports,
zaircraftzmaintenance zand zrepair
Deliver: zOutbound zand zarriving zpassenger zservice, zbaggage
zhandling zReturn: zResolve zany zpost-service zissues zsuch zas zlost zor
zdamaged zluggage
b. An zautomobile zmanufacturer
Source: z Suppliers zof zcomponents zand zraw zmaterials
Make: zManufacturing zof zvehicles zand zcomponents zor zsubassemblies zto zbe zsold
zas zsparezparts
Deliver: zDelivery zto zand zsales zfrom zdealerships, zdelivery zof zspare zparts zto zthe
zwholesalezsystem
Return: z Warranty zand zrecall zrepairs, ztrade-ins
c. A zhospital
Source: zMedical zsupplies, zcleaning zservices, zdisposal zservices, zfood zservices,
zqualifiedzpersonnel
Make: z Inpatient zrooms, zoutpatient zclinics, zemergency zroom, zoperating zrooms
Deliver: zScheduling zpatients, zproviding ztreatment, zambulance zservice, zfamily
zcounselingzReturn: zBilling zerrors, zfollow zup zvisits
d. An zinsurance zcompany
Source: z Supplies zneeded zfor zthe zoffice, zunderwriters, zlegal zauthority zto zoperate
1-3
, Operations and Supply Chain Management
z z z z
Make: zEstablish zpolicy zguidelines zand zpricing, zfield zagent/representative zand
zfacility znetwork, zdevelop zInternet zservice zcapabilities, zestablish zpreferred
zvehicle zrepair zserviceznetwork
Deliver: zMeet zwith zand zadvise zclients, zwrite zpolicies, zprocess zand zpay
zclaimszReturn: z refund zof zoverpayments
2. Define zthe zservice zpackage zof zyour zcollege zor zuniversity. zWhat zis zits zstrongest zelement?
zWhat ziszits zweakest zone?
The zcategories zwith zexamples zare:
Supporting zfacility z- zlocation, zbuildings, zlabs, zparking
zFacilitating zgoods z– zclass zschedules, zcomputers, zbooks,
zchalk
Explicit zservices z– zclasses zwith zqualified zinstructors, zplacement
zofficeszImplicit zservices z– zstatus zand zreputation z(e.g., zIvy
zLeague zschools)
At zIndiana zUniversity zand zthe zUniversity zof zSouthern zCalifornia, zamong ztheir
zstrongest zelements zare ztheir zbusiness zschools zand ztheir zOperations zManagement
zprograms z(of zcourse).zBoth zalso zhave zvery zdedicated zalumni znetworks. zA zweak
zelement zof zIndiana zUniversity zis zits zweak zfootball zprogram; zfor zUSC, zweak zelements
zare zon-campus zparking zand zhousing.
3. What zservice zindustry zhas zimpressed zyou zthe zmost zwith zits zinnovativeness?
Our zvote zgoes zto zcruise zlines zwhich zhave zintroduced zsuch zonboard zinnovations zas
zwave zmachines zfor zbelly zboarding zand zrock zclimbing zwalls, zas zwell zas zall zsorts zof
zother zamenities ztozkeep zcruisers zinvolved. z The zindustry zis zdoing zrecord zbusiness zas
zwell.
Some zof zthe zstandout zcompanies zin zless zinnovative zindustries zare zBank zof zAmerica
z(has za zformalized zresearch zprogram zto ztry zout znew zcustomer zservices/amenities zsuch
zas zvideo zscreenszin znext zto zteller zlines), zIntuit z(e.g., zputting zQuicken zmoney
zmanagement zsoftware zonline), zIkea,zJetBlue zAirlines, zand zProgressive zInsurance
z(discussed zlater zin zthe zbook).
4. What zis zproduct-service zbundling zand zwhat zare zthe zbenefits zto zcustomers?
Product-service zbundling zis zadding zValue-added zservices zto za zfirm’s zproduct
zofferings zto zcreatezmore zvalue zfor zthe zcustomer. zThis zprovides zbenefits zin ztwo zareas.
zFirst, zthis zdifferentiates zthezorganization zfrom zthe zcompetition. zSecondly, zthese
zservices ztie zcustomers zto zthe zorganizationzin za zpositive zway. zAlternatively, zbundling
zcan zalso zinvolve zadding zproducts zto za zservice, zfor zexample, zadding zthe zsale zof
zconvenience zitems zand zsnacks zat za zhotel.
1-4
z z z z
1-1
, Operations and Supply Chain Management
z z z z
TABLE OF CONTENTSz z
Chapter z1: zIntroduction
Chapter z2: zStrategy
Chapter z3: zDesign zof zProducts zand zServices
Chapter z4: zProjects
Chapter z5: zStrategic zCapacity zManagement
Chapter z6: zLearning zCurves
Chapter z7: zManufacturing zProcesses
Chapter z8: zFacility zLayout
Chapter z9: zService zProcesses
Chapter z10: zWaiting zLine zAnalysis zand zSimulation
Chapter z11: zProcess zDesign zand zAnalysis
Chapter z12: zQuality zManagement
Chapter z13: zStatistical zQuality zControl
Chapter z14: zLean zSupply zChains
Chapter z15: zLogistics zand zDistribution zManagement
Chapter z16: zGlobal zSourcing zand zProcurement
Chapter z17: zThe zInternet zof zThings zand zERP
Chapter z18: zForecasting
Chapter z19: zSales zand zOperations zPlanning
Chapter z20: zInventory zManagement
Chapter z21: zMaterial zRequirements zPlanning
1-2
, Operations and Supply Chain Management
z z z z
Chapter z22: zWorkcenter zScheduling
CHAPTER 1 z
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
z z z z
Discussion zQuestions
1. Using zExhibit z1.3 zas za zmodel, zdescribe zthe zsource-make-deliver-return
zrelationships zin zthezfollowing zsystems:
a. An zairline
Source: z Aircraft zmanufacturer, zin-flight zfood, zrepair zparts, zcomputer zsystems
Make: zAircraft zand zflight zcrew zscheduling, zground zservices zprovided zat zairports,
zaircraftzmaintenance zand zrepair
Deliver: zOutbound zand zarriving zpassenger zservice, zbaggage
zhandling zReturn: zResolve zany zpost-service zissues zsuch zas zlost zor
zdamaged zluggage
b. An zautomobile zmanufacturer
Source: z Suppliers zof zcomponents zand zraw zmaterials
Make: zManufacturing zof zvehicles zand zcomponents zor zsubassemblies zto zbe zsold
zas zsparezparts
Deliver: zDelivery zto zand zsales zfrom zdealerships, zdelivery zof zspare zparts zto zthe
zwholesalezsystem
Return: z Warranty zand zrecall zrepairs, ztrade-ins
c. A zhospital
Source: zMedical zsupplies, zcleaning zservices, zdisposal zservices, zfood zservices,
zqualifiedzpersonnel
Make: z Inpatient zrooms, zoutpatient zclinics, zemergency zroom, zoperating zrooms
Deliver: zScheduling zpatients, zproviding ztreatment, zambulance zservice, zfamily
zcounselingzReturn: zBilling zerrors, zfollow zup zvisits
d. An zinsurance zcompany
Source: z Supplies zneeded zfor zthe zoffice, zunderwriters, zlegal zauthority zto zoperate
1-3
, Operations and Supply Chain Management
z z z z
Make: zEstablish zpolicy zguidelines zand zpricing, zfield zagent/representative zand
zfacility znetwork, zdevelop zInternet zservice zcapabilities, zestablish zpreferred
zvehicle zrepair zserviceznetwork
Deliver: zMeet zwith zand zadvise zclients, zwrite zpolicies, zprocess zand zpay
zclaimszReturn: z refund zof zoverpayments
2. Define zthe zservice zpackage zof zyour zcollege zor zuniversity. zWhat zis zits zstrongest zelement?
zWhat ziszits zweakest zone?
The zcategories zwith zexamples zare:
Supporting zfacility z- zlocation, zbuildings, zlabs, zparking
zFacilitating zgoods z– zclass zschedules, zcomputers, zbooks,
zchalk
Explicit zservices z– zclasses zwith zqualified zinstructors, zplacement
zofficeszImplicit zservices z– zstatus zand zreputation z(e.g., zIvy
zLeague zschools)
At zIndiana zUniversity zand zthe zUniversity zof zSouthern zCalifornia, zamong ztheir
zstrongest zelements zare ztheir zbusiness zschools zand ztheir zOperations zManagement
zprograms z(of zcourse).zBoth zalso zhave zvery zdedicated zalumni znetworks. zA zweak
zelement zof zIndiana zUniversity zis zits zweak zfootball zprogram; zfor zUSC, zweak zelements
zare zon-campus zparking zand zhousing.
3. What zservice zindustry zhas zimpressed zyou zthe zmost zwith zits zinnovativeness?
Our zvote zgoes zto zcruise zlines zwhich zhave zintroduced zsuch zonboard zinnovations zas
zwave zmachines zfor zbelly zboarding zand zrock zclimbing zwalls, zas zwell zas zall zsorts zof
zother zamenities ztozkeep zcruisers zinvolved. z The zindustry zis zdoing zrecord zbusiness zas
zwell.
Some zof zthe zstandout zcompanies zin zless zinnovative zindustries zare zBank zof zAmerica
z(has za zformalized zresearch zprogram zto ztry zout znew zcustomer zservices/amenities zsuch
zas zvideo zscreenszin znext zto zteller zlines), zIntuit z(e.g., zputting zQuicken zmoney
zmanagement zsoftware zonline), zIkea,zJetBlue zAirlines, zand zProgressive zInsurance
z(discussed zlater zin zthe zbook).
4. What zis zproduct-service zbundling zand zwhat zare zthe zbenefits zto zcustomers?
Product-service zbundling zis zadding zValue-added zservices zto za zfirm’s zproduct
zofferings zto zcreatezmore zvalue zfor zthe zcustomer. zThis zprovides zbenefits zin ztwo zareas.
zFirst, zthis zdifferentiates zthezorganization zfrom zthe zcompetition. zSecondly, zthese
zservices ztie zcustomers zto zthe zorganizationzin za zpositive zway. zAlternatively, zbundling
zcan zalso zinvolve zadding zproducts zto za zservice, zfor zexample, zadding zthe zsale zof
zconvenience zitems zand zsnacks zat za zhotel.
1-4
