Operations management : sustainability and supply chain managementtailieudientu.lrc.tnu.edu.vn/Upload/Collection/brief/... · 2017. 6. 19. · Operations Management Sustainability

Operations ManagementSustainability and Supply Chain ManagementELEVENTH

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Jay Heizer • Barry Render

A L W A Y S L E A R N I N G PEARSON

E I E V E N I H E D I T I o

GLOBAL EDITION

O P E R A T I O N SMANAGEMENTS usta inab ility and Supply Chain M anagennent

J A Y

HEIZERJesse H, Jones Professor of Business AdministrE-^non Texas Lutheran University

B A R R Y

RENDERCharles Harwood Professor of Operations Mo! logernent G raduate School of Business Rollins College

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Pearson Education LimitedEdinburgh Gate HarlowEssex CM20 2JE Englandand Associated Companies throughout the worldyisiĩ us on the World Wide Web at: www.pearson.com/uk© Pearson Education Limited 2014The rights of Jay Heizer and Barry Render to be identified as authors of this work have been asserted by them in accordance wiitHi the Copyright, Designs and Patents Act 1988.Authorised adaptation from the United Slates edition, entitled Operations Management: Sustainability and Supply Chain Management. 11'*' Edition. ISBN: 978-0-13-292114-5 by Jay Heizer and Barry Render, published by Pearson Education. Inc., ©210114.

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1b Dofflia. Chalie, Jesse, and Reva and to Howard G. Komacid. the teacher who taught me to love math

B.R.

A B O U T T H E A U Ĩ H O B SJAY HEIZER Professor Emeritus, the Jesse H. Jones Chair of Business Administration. Texas Lutheraon

University. Seguin, Texas. He received his B.B.A. and M.B.A. from the University oof North Texas and his Ph.D. in Management and Statistics from Arizona Slate Universityy. He was previously a member of the faculty at the University of Memphis, the Universil;ty of Oklahoma, Virginia Commonwealth University, and the University of Richmondd. He has also held visiting positions at Boston University, George Mason University, thhe Czech Management Center, and the Otto-Von-Guericka University, Magdeburg.

Dr. Heizer’s industrial experience is extensive. He learned the practical side oof operations management as a machinist apprentice at Foringer and Company, as a proo- duction planner for Westinghouse Airbrake, and at General Dynamics, where he workeed in engineering administration. In addition, he has been actively involved in consulting iiin the OM and MIS areas for a variety of organizations, including Philip Morris, Firestonee, Dixie Container Corporation, Columbia Industries, and Tenneco. He holds the CPINM certification from APICS—the Association for Operations Management.

Professor Heizer has co-authored 5 books and has published more than 30 articles on 1 a variety of management topics. His papers have appeared in the Academy of Managemennt Journal, Journal o f Purchasing, Personnel Psychology, Production & Inventory Contrcol Management, APICS—The Performance Advantage, Journal o f Management Historyy, HE Solutions, and Engineering Management, among others. He has taught operationns management courses in undergraduate, graduate, and executive programs.

BARRY RENDER Professor Emeritus, the Charles Harwood Professor of Operations Managemennt, Crummer Graduate School of Business. Rollins College. Winter Park. Florida. H^e received his B.s. in Mathematics and Physics at Roosevelt University, and his M.s. i in Operations Research and Ph.D. in Quantitative Analysis at the University of Cincinnatiti. He previously taught at George Washington University, University of New Orleanns, Boston University, and George Mason University, where he held the Mason Foundatioon Professorship in Decision Sciences and was Chair of the Decision Sciences Departmennt. Dr. Render has also worked in the aerospace industry for General Electric. McDonneell Douglas, and NASA.

Professor Render has co-authored 10 textbooks for Pearson Education, includinng Managerial Decision Modeling with Spreadsheets, Quantitative Analysis for Managemennt, Sen'ice Management, Introduction to Management Science, and Cases and Readings i in Management Science. Quantitative Analysis for Management, now in its 11th editionn, is a leading text in that discipline in the United States and globally. Dr. Render’s monre than 100 articles on a variety of management topics have appeared in Decision Sciencees, Production and Operations Management, Interfaces, Information and Managemennt, Journal o f Management Information Systems, Socio-Economic Planning Sciences, HIE Solutions, and Operations Management Review, among others.

Dr. Render has been honored as an AACSB Fellow and was twice named a Seniaor Fulbrighl Scholar. He was Vice President of the Decision Science Institute Southeaast Region and served as Software Review Editor for Decision Line for six years and Í as Editor of the New York Times Operations Management special issues for five years. Fronm 1984 to 1993, Dr. Render was President of Management Service Associates of Virginiãa, Inc., whose technology clients included the FBI. the u.s. Navy, Fairfax County. VirginiJa, and c&p Telephone. He is cuưently Consulting Editor to Financial Times Press.

Dr. Render has taught operations management courses in Rollins College’s MBJA and Executive MBA programs. He has received that school’s Welsh Award as leaad- ing Professor and was selected by Roosevelt University as the 1996 recipient of thhe St. Claire Drake Award for Outstanding Scholarship. In 2005. Dr. Render received tthe Rollins College MBA Student Award for Best Overall Course, and in 2009 was namoed Professor of the Year by full-time MBA students.

riBrief Table of ContentsPART ONE Introduction to Operations Management 37

Chapter 1 Operations and Productivity 37Chapter 2 The Global Environment and Operations strategy 63Chapter 3 Managing Projects 93Chapter 4 Forecasting Demand 137

PART TWO Designing Operations 189

Chapters Product Design 189Supplement 5 Sustainability 223

Chapter 6 Quality Management and International Standards 241Supplement 6 Statistical Process Control 271

Chapter 7 Process Design 305Supplement 7 Capacity Planning 333

Chapter 8 Location Decisions 361Chapter 9 Layout Decisions 391

Chapter 10 Job Design and Work Measurement 431

PART THREE Managing Operations 465

Chapter 11 Supply Chain Management 465Supplement 11 Supply Chain Modeling 495

Chapter 12 Managing Inventory 509Chapter 13 Aggregate Scheduling 553

Chapter 14 Material Requirements Planning (MRP) and ERP 587Chapter IS Scheduling for the Short-Term 623Chapter 16 JIT, Lean Operations, and the Toyota Production SystemChapter 17 Maintenance and Reliability Decisions 685

PART FOUR Quantitative Modules 703

Module A Decision Modeling 703Module 8 Linear Programming Models 725Module c Transportation Modeling 753Module D Queuing Models 771Module E Learning Curves 801Module F Modeling with Simulation 817

ONLINE TUTORIALS

1. Statistical Tools for Managers T1 -12. Acceptance Sampling T2-13. The Simplex Method of Linear Programming T3-14. The MODI and VAM Methods of Solving Transportation Problems T4-15. Vehicle Routing and Scheduling T5-1

659

Table of ContentsAbout the Authors Preface

621

PART ONE Introduction to Operations Management 37Chapter 1 Operations and Productivity 37

GLOBAL COMPANY PROFILE: HARD ROCK CAFE 38 What Is Operations Management? 40 Organizing to Produce Goods and Services 40 The Supply Chain 42 Why Study OM? 42 What Operations Managers Do 43 The Heritage of Operations Management 44 Operations for Goods and Services 47

Growth o f Services 47 Service Pay 48

The Productivity Challenge 49 Productivity Measurement 50 Productivity Variables 51 Productivity and the Service Sector 53

New Challenges in Operations Management 54 Ethics, Social Responsibility, and Sustainability 55 Summary 56 Key Terms 56 Ethical Dilemma 56 Discussion Questions 56 Solved Problems 57 Problems 57 CASE STUDIES 59

Norwegian Salmon Processing Facility, Trondheim 59 Frito-Lay: Operations Management in Manufacturing Video Case 59Hard Rock Cafe: Operations Management in Services Video Case 60

Rapid Review 61 Self Test 62

Chapter 2 The Global Environment and Operations Strategy 63

GLOBAL COMPANY PROFILE: BOEING 64 A Global View of Operations and Supply Chains 66

Cultural and Ethical Issues 69 Developing Missions and Strategies 70

Mission 70 Strategy 70

Achieving Competitive Advantage Through Operations 71 Competing on Differentiation 71 Competing on Cost 72 Competing on Response 73

Issues in Operations Strategy 74 Strategy Development and Implementation 75

Key Success Factors and Core Competencies 76 Integrating OM with other Activities 77 Building and staffing the Organization 77 Implementing the 10 strategic OM Decisions 78

Strategic Planning, Core Competencies, and Outsourcing 78The Theory o f Comparative Advantage 80 Risks o f Outsourcing 80 Rating Outsource Providers 81

Global Operations Strategy Options 83 Summary 84 Key Terms 84 Ethical Dilemma 85 Discussion Questions 85Using Software to Solve Outsourcing Problems 85 Solved Problems 86 Problems 87 CASE STUDIES 89

ALDI 89

Strategy at Regal Marine Video Case 89 Hard Rock Cafe's Global strategy Video Case 89 Outsourcing Offshore at Darden Video Case 90

Rapid Review 91 Self Test 92

Chapter 3 Managing Projects 93

GLOBAL COMPANY PROFILE: BECHTEL GROUP 94 The Importance of Project Management 96 Project Planning 96

The Project Manager 97 Work Breakdown structure 98

Project Scheduling 99 Project Controlling 100

10 TABLE OF CONTENTS

Project Management Techniques:PERT and CPM 101 The Framework of PERT and CPM 101 Network Diagrams and Approaches 101 Activity-on-Node Example 102 Activity-on-Arrow Example 104

Determining the Project Schedule 105 Forward Pass 105 Backward Pass 107Calculating Slack Time and Identifying the Critical Path(s) 108

Variability in Activity Times 110 Three Time Estimates in PERT 110 Probability of Project Completion 112

Cost-Time Trade-Offs and Project Crashing 115 A Critique of PERT and CPM 118 Using Microsoft Project to Manage Projects 119 Summary 121 Key Terms 122 Ethical Dilemma 122 Discussion Questions 122 Using Softw/are to Solve Project Management

Problems 122 Solved Problems 123 Problems 126 CASE STUDIES 131

Southwestern University: (A) 131Project Management at Arnold Palmer HospitalVideo Case 132Managing Hard Rock's Rockfest Video Case 133

Rapid Review 135 Self Test 136

137Chapter 4 Forecasting Demand

GLOBAL COMPANY PROFILE: WALT DISNEY PARKS & RESORTS 138

What Is Forecasting? 140 Forecasting Time Horizons 140 Types of Forecasts 141

The Strategic Importance of Forecasting 141 Supply-Chain Management 141

Human Resources 142 Capacity 142

Seven Steps in the Forecasting System 142 Forecasting Approaches 143

Overview of Qualitative Methods 143 Overview of Quanf/fai/Ve Methods 144

Time-Series Forecasting 144Decomposition o f a Time Series 144 Naive Approach 145 Moving Averages 146 Exponential Smoothing 148 Measuring Forecast Error 149 Exponential Smoothing with Trend Adjustment 152 Trend Projections 155 Seasonal Variations in Data 157 Cyclical Variations in Data 162

Associative Forecasting Methods: Regression and Correlation Analysis 162 Using Regression Analysis for Forecasting 162 Standard Error of the Estimate 164 Correlation Coefficients for Regression Lines 165 Multiple-Regression Analysis 167

Monitoring and Controlling Forecasts 168 Adaptive Smoothing 170 Focus Forecasting 170

Forecasting in the Service Sector 170 Summary 172 Key Terms 172 Ethical Dilemma 172 Discussion Questions 172 Using Software in Forecasting 173 Solved Problems 174 Problems 177 CASE STUDIES 184

Southwestern University: (B) 184 Forecasting Ticket Revenue for Orlando Magic Basketball Games Video Case 185 Forecasting at Hard Rock Cafe Video Case 186

Rapid Review 187 Self Test 188

PART TWO Designing Operations 189

Chapters Product Design 189

GLOBAL COMPANY PROFILE: REGAL MARINE 190 Goods and Services Selection 192

Product Strategy Options Support Competitive Advantage 193 Product Life Cycles 194

Life Cycle and strategy 194 Product-by-Value Analysis 195

Generating New Products 195 Product Development 196

Product Development System 196 Quality Function Deployment (QFD) 196