Instructor Manual for Operations Management in the Supply Chain: Decisions & Cases, 8th Edition by Schroeder & Goldstein

INSTRUCTORVMANUALVFOR
OPERATIONSVMANAGEMENTVINVTHEVSUPPLYVCHAINVDECISIONSV&
CASES,V8thVEditionVCha
pterV1-18
ChapterV1

TheVOperationsVFunction


TeachingVNotes

ThisVchapterVisVaimedVatVprovidingVanVoverallVframeworkVforVtheVtextbookVandVtheV
fieldVofVoperationsVandVsupplyVchainVmanagement.VAVnewVsectionVisVaddedVonVtheVroleVof
VoperationsVandVsupplyVchainVmanagementVinVtheVeconomyVandVinVtheVfirm.V TheVchapterV
providesVaVframeworkVthatVservesVasVaVbeneficialVwayVofVorganizingVstudents'Vunderstandin
gVofVfiveVmajorVoperationsVandVsupplyVchainVmanagementVdecisionVtypes:V process,Vquality,
Vcapacity,VinventoryVandVsupplyVchain.VTheVcross-
functionalVviewVofVoperationsVmanagementV(OM)VisValsoVintroducedVinVthisVchapterVtoVprov
ideVrelevanceVforVtheVcourseVinVparticularVforVnon-
majors.V WhenVoperationsVmanagementVisVrelatedVtoVmarketingVandVfinanceVasVaVmajorVbusi
nessVfunction,VallVstudentsVreadilyVunderstandVtheVroleVofVoperationsVandVsupplyVchainVinVb
usiness.

InVteachingVthisVchapter,VweVhighlightVtheVimportantVroleVthatVOMVandVsupplyVchain
sVplayVinVtheVeconomyVandVtheVfirm.V TheVfiveVdecisionVareasVinVoperationsVandVsupplyVch
ainVandVtheVimportanceVofVcross-
functionalVdecisionVmakingVareVemphasized.V WeValsoVspendVsomeVtimeVdiscussingVtheVimp
ortanceVofVbothVservicesVandVmanufacturing,VandVhowVbusinessVoperationsVareVmanagedVwit
hinVlarger,Vmulti-
organizationVsupplyVchains.V WeVintroduceVtheVconceptVofVcontingenciesVandVexplainVthatVth
eVtextbookVincludesVinformationVonVwhenVparticularVOMVactivitiesVareV„bestVpractices‟Vand
VwhenVtheyVareVnot.V WeValsoVdefineVanalyticsVandVexplainVhowVanalyticsVisVusedVinVoperat
ionsVandVsupplyVchainVmanagementVdecisions.V Finally,VweVillustrateVmajorVOMVandVsupply
VchainVdecisionsVusingVtheVPizzaVU.S.A.Vexample,VasVwellVasVinVotherVtypesVofVbusinesses.
V StudentsVmayVfindVtheVtypicalVjobsVinVOMVandVsupplyVchainVfromVMonster.comV(inVaVCh
apterV1VOperationsVLeaderVbox).

TheVLearningVEnrichmentVsectionVatVtheVendVofVtheVchapterVprovidesVvideosVand/orVwebsite
sVthatVstudentsVcanVaccessVoutsideVofVclassVorVinstructorsVcanVuseVinVclass.V TheseVresource
sVhelpVbringVtheVchapterVmaterialsVtoVlife,VandVtapVintoVstudentVinterest.


LearningVEnrichmentV(forVself-studyVorVinstructorVassignments)
WhatVisVOperationsVManagementVhttps: Video
//youtu.be/leMOReAE2hkV V5:19

SupplyVChainVManagement:VAVForceVforV Video
Good.Vhttps://youtu.be/Bl0UhiOvrdc V5:0
1
CocaVCola:VSupplyVChain Video
1-1
https://youtu.be/UBSOiHUctrY V2:2
9

, Sustainability WebVLin
https://www.epa.gov/sustainability/learn-about-sustainability#what k

Globablization WebVLin
http://www.globalization101.org/what-is-globalization/ k

AnswersVtoVQuestions

1. OperationsVandVsupplyVchainVmanagementVisVubiquitous,VthatVisVpresentVinVeveryVor
ganization.V Daily,VweVcomeVinVcontactVwithVvariousVgoodsVandVservicesVproducedVb
yVtheVtransformationVofVinputsVtoVoutputsVunderVtheVcontrolVofVoperationsVmanagers.
V OperationsVandVsupplyVchainVmanagementVisVaVcoreVbusinessVfunctionValongVwithV
marketingVandVfinance.V AllVdecisionsVareVcross-
functionalVinVnature.V YouVwillVbeVinteractingVwithVtheVoperationsVfunctionVnoVmatte
rVwhatVcareerVyouVchoose.V MuchVofVwhatVisVlearnedVrelatedVtoVoperationsVandVsupp
lyVchainVmanagementVcanVbeVappliedVtoVotherVfunctions.

2. OperationsVmanagementVisVaVbroaderVtermVthanVproductionVmanagement,Vencompassi
ngVserviceVorganizationsVasVwellVasVmanufacturing.V OperationsVmanagementVisValsoV
aVmoreVrecentVtermVreplacingVtheVearlierVtermVproductionVmanagement.

3. TheVdifferenceVbetweenVoperationsVandVsupplyVchainVmanagementVisVoperationsVman
agementVfocusesVonVdecisionsVtoVmanageVtheVtransformationVprocessVthatVconvertsVi
nputsVintoVdesiredVfinishedVgoodsVorVservicesVwithinVaVsingleVfirm.V OperationsVman
agementVoccursVwithinVandVacrossVmultipleVfacilitiesVinVanVorganization.V SupplyVcha
inVmanagementVrelatesVtoVtheVnetworkVofVmanufacturingVandVserviceVoperationsVthat
VsupplyVeachVotherVfromVrawVmaterialsVthroughVmanufacturingVtoVtheVultimateVcusto
mer.V TheVsupplyVchainVconsistsVofVtheVflowsVofVmaterials,Vmoney,VandVinformationV
alongVtheVentireVchainVofVsourcing,Vproduction,VandVdistribution.V TheVsupplyVchainVl
inksVtheVoperationsVofVmanyVdifferentVorganizationsVinVorderVtoVsatisfyVcustomerVne
eds.

4. ResponsibilitiesVdifferVamongVoperations,VmarketingVandVfinanceVmanagers.V AVmarke
tingVmanagerVidentifiesVdemandVforVgoodsVorVservicesVandVdevelopsVtheVmarket,Vwh
ereasVtheVoperationsVmanagerVassuresVsupplyVofVtheVproductsVorVservices.V TheVfinan
ceVmanagerVacquiresVandVallocatesVtheVcapitalVresourcesVforVtheVotherVfunctions.V Si
milaritiesVinVtheVthreeVfunctionsVincludeVmanagerialVdecisionVmakingVandVsharedVorg
anizationalVgoals.

5. Operations,Vmarketing,VandVfinanceVareVprimaryVfunctionsVofVtheVorganization.V Hum
anVresources,VinformationVsystems,VandVaccountingVareVsupportingVfunctionsVthatVpro
videVresourcesVandVservicesVforVtheVthreeVprimaryVfunctions.V TheVoperationsVmanage
rVappliesVresources,VanalysisVandVinformationVprovidedVbyVsupportingVfunctionsVandV
integratesVthemVintoVdecisionVmaking.V TheVfocusVofVtheVoperationsVmanagerVisVonVd
ecisionVmakingVratherVthanVonVanalyticVmethods.

6. a.V V TheVpurposeVofVaVcollegeVlibraryVisVtoVmakeVinformationVavailableVtoVstudents
VandVfacultyVforVresearchVandVstudying.V TheVoutputVisVtheVbundleVofVservice
sVprovidedValongVwithVfacilitatingVgoods:V buildings,Vcomputers,Vbooks,Vcatalo
gsVandVindices.

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,ProcessV --
V facilityV layoutV consideringV bookV stacks,V referenceV rooms,V computerVacces
sV on-siteV andV fromV off-
site,V degreeV ofV computerV useV andV proceduresV for




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, accessingVandVcirculatingVinformation.V TheyVmustVnotVonlyVselectVtheVapprop
riateVprocess,VbutVmanageVtheVflowVofVusersVandVinformation.

QualityV--
VstandardsVofVtheVcollegeVlibraryVprofessionVareVadopted;VqualityV measuresVin
clude:V ratioVofVconsultingVstaffVhoursVtoVstudents,VrateVofVnewVbookV andVot
herVmaterialVpurchases,VnumberVofVcomplaints,VstudentVsatisfaction.

CapacityV--
VforecastingVofVlibraryVuserVneedsVcontributesVtoVdecisionsVonVbuildingVsize,V
volumeVofVspaceVforVstudyVandVmaterials,VprintVacquisitions,VcomputerVworkV
stations,VstaffVhiringVandVschedulingVofVshifts.

InventoryV--VdecisionsVconcerningVtheVnumberVofVbooks,Vperiodicals,Vetc.VtoVstock.

SupplyVChainV–
VdecisionsVaboutVsourcingVofVmaterialsVandVinformation.V Also,VdecisionsVareV
madeVaboutVbestVtoVdistributeVprintedVandVonlineVmaterials,ValongVwithVmovi
ngVmaterialsVandVinformationVintoVtheVlibrary.

b. TheVpurposeVofVaVhotelVisVtoVattractVandVsatisfyVconventioneersVandVovernigh
tVguests.V TheVoutputVisVtheVbundleVofVservicesVandVgoodsVprovided:V overnig
htVaccommodations,VmaidVservice,VroomVservice,Vtelevision,Vpool,Vbar,Vcoffee
Vshop.


ProcessV--
VaVsetVofVprocessesVforVreservingVandVpaymentVofVrooms,Vhousekeeping,Vresta
urant,VrecreationVservices,VandVongoingVstudyVofVserviceVmethods;VtheVpeople
VwhoVimplementVtheseVprocessesVincludingVreceptionists,Vaccountants,Vhousek
eepers,VandVmaintenanceVworkers.

QualityV--
VhotelVindustryVstandardsVandVtheVmarketVpositioningVofVtheVhotelV(firstVclass
Vvs.Vbudget)VdetermineVstandards;VqualityVmeasuresVincludeVnumberVofVreturn
Vvisitors,VconventionsVbooked,VandVratingsVbyVindustryVevaluators.


CapacityV--
VnumberVofVunitsVandVbeds;VappropriateVsizeVforVrestaurant,VbarVandVconventi
onVhalls;VstaffingVforVhousekeeping,VrestaurantVandVoffice.V SchedulingVofVthe
VworkforceVisValsoVincluded.


InventoryV--
VgoodsVtoVmeetVrequirementsVforVroomVupkeepV(towels,Vsheets,Vetc.),Vconvent
ionVcateringV(glasses,Vdishes,Vfood),VrestaurantVandVbar.

SupplyVchainV–
VdecisionsVaboutVsourcingVtheVvariousVmaterialsVandVservicesVusedVbyVtheVhot
el.V LogisticsVisVaboutVmovingVmaterialsVandVservicesVtoVtheVhotelVandVthenVr
eturnVandVrecyclingVofVgoods.

c. TheVpurposeVofVaVsmallVmanufacturingVfirmVisVtoVprovideVcustomersVwithVaV
qualityVproductVatVaVreasonableVprice.V TheVoutputVconsistsVofVnotVonlyVtheVp
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