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www.downloadslide.comO P E R AT I O N S A N D S U P P LY C H A I NM ANAGEMENT

www.downloadslide.comT H E M C G R AW - H I L L E D U C AT I O N S E R I E SOperations and Decision SciencesSUPPLY CHAIN MANAGEMENTOPERATIONS MANAGEMENTBentonPurchasing and Supply Chain ManagementThird EditionBurt, Petcavage, and PinkertonSupply ManagementNinth EditionBowersox, Closs, and CooperSupply Chain Logistics ManagementFifth EditionJohnson, Leenders, and FlynnPurchasing and Supply ManagementFifteenth EditionSimchi-Levi, Kaminsky, and Simchi-LeviDesigning and Managing the Supply Chain: Concepts, Strategies, CaseStudiesThird EditionCachon and TerwieschMatching Supply with Demand: An Introduction to OperationsManagementFourth EditionFinchInteractive Models for Operations and Supply Chain ManagementFirst EditionJacobs and ChaseOperations and Supply Chain Management: The CoreFourth EditionJacobs and ChaseOperations and Supply Chain ManagementFifteenth EditionJacobs and WhybarkWhy ERP? A Primer on SAP ImplementationFirst EditionSchroeder, Goldstein, and RungtusanathamOperations Management in the Supply Chain: Decisions and CasesSeventh EditionStevensonOperations ManagementTwelfth EditionSwink, Melnyk, Cooper, and HartleyManaging Operations across the Supply ChainThird EditionPROJECT MANAGEMENTBrown and HyerManaging Projects: A Team-Based ApproachSecond EditionLarson and GrayProject Management: The Managerial ProcessSixth EditionSERVICE OPERATIONS MANAGEMENTFitzsimmons, Fitzsimmons, and BordoloiService Management: Operations, Strategy, Information TechnologyEighth EditionMANAGEMENT SCIENCEHillier and HillierIntroduction to Management Science: A Modeling and Case StudiesApproach with SpreadsheetsFifth EditionStevenson and OzgurIntroduction to Management Science with SpreadsheetsFirst EditionMANUFACTURING CONTROL SYSTEMSJacobs, Berry, Whybark, and VollmannManufacturing Planning & Control for Supply Chain ManagementSixth EditionBUSINESS RESEARCH METHODSCooper-SchindlerBusiness Research MethodsTwelfth EditionBUSINESS FORECASTINGWilson, Keating, and John Galt Solutions, Inc.Business ForecastingSixth EditionLINEAR STATISTICS AND REGRESSIONKutner, Nachtsheim, and NeiterApplied Linear Regression ModelsFourth EditionBUSINESS SYSTEMS DYNAMICSStermanBusiness Dynamics: Systems Thinking and Modeling for a ComplexWorldFirst EditionPRODUCT DESIGNUlrich and EppingerProduct Design and DevelopmentSixth EditionBUSINESS MATHSlater and WittryPractical Business Math ProceduresTwelfth EditionSlater and WittryPractical Business Math Procedures, Brief EditionEleventh EditionSlater and WittryMath for Business and Finance: An Algebraic ApproachFirst EditionBUSINESS STATISTICSBowerman, O’Connell, Murphree, and OrrisEssentials of Business StatisticsFifth EditionBowerman, O’Connell, and MurphreeBusiness Statistics in PracticeEighth EditionDoane and SewardApplied Statistics in Business and EconomicsFifth EditionLind, Marchal, and WathenBasic Statistics for Business and EconomicsEighth EditionLind, Marchal, and WathenStatistical Techniques in Business and EconomicsSeventeeth EditionJaggia and KellyBusiness Statistics: Communicating with NumbersSecond Edition

www.downloadslide.comO P E R AT I O N S A N D S U P P LY C H A I NM ANAGEMENTfifteenth editionF . R O B E RT J ACO B SIndiana UniversityR ICHARD B . C HASEUniversity of Southern California

www.downloadslide.comOPERATIONS AND SUPPLY CHAIN MANAGEMENT, FIFTEENTH EDITIONPublished by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright 2018 byMcGraw-Hill Education. All rights reserved. Printed in the United States of America. Previouseditions 2014, 2011, 2009, and 2006. No part of this publication may be reproduced ordistributed in any form or by any means, or stored in a database or retrieval system, without theprior written consent of McGraw-Hill Education, including, but not limited to, in any network orother electronic storage or transmission, or broadcast for distance learning.Some ancillaries, including electronic and print components, may not be available to customersoutside the United States.This book is printed on acid-free paper.1 2 3 4 5 6 7 8 9 LWI 21 20 19 18 17ISBN 978-1-259-66610-0MHID 1-259-66610-7Chief Product Officer, SVP Products & Markets: G. Scott VirklerVice President, General Manager, Products & Markets: Marty LangeVice President, Content Design & Delivery: Betsy WhalenManaging Director: James HeineBrand Manager: Dolly WomackDirector, Product Development: Rose KoosProduct Developer: Camille CorumMarketing Manager: Britney HermsenDirector of Digital Content Development: Douglas RubyDirector, Content Design & Delivery: Linda AvenariusProgram Manager: Mark ChristiansonContent Project Managers: Kathryn D. Wright, Kristin Bradley, and Karen JozefowiczBuyer: Sandy LudovissyDesign: Egzon ShaqiriContent Licensing Specialists: Beth Thole and Melissa HomerCover Images: Modern globe network blue background: Shutterstock/Sarunyu foto; Delivery timeline and transportation icons: Shutterstock/Nucleartist; Blue background: Shutterstock/natrotCompositor: SPi GlobalPrinter: LSC CommunicationsAll credits appearing on page or at the end of the book are considered to be an extension of thecopyright page.Library of Congress Cataloging-in-Publication DataNames: Jacobs, F. Robert, author. Chase, Richard B., author.Title: Operations and supply chain management / F. Robert Jacobs, IndianaUniversity, Richard B. Chase, University of Southern California.Other titles: Operations and supply managementDescription: Fifteenth edition. New York, NY: McGraw-Hill Education,[2018] Previously published as: Operations and supply management. Includes index.Identifiers: LCCN 2016042219 ISBN 9781259666100 (acid-free paper)Subjects: LCSH: Production management.Classification: LCC TS155 .J27 2018 DDC 658.5—dc23LC record available at https://lccn.loc.gov/2016042219The Internet addresses listed in the text were accurate at the time of publication. The inclusion of awebsite does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-HillEducation does not guarantee the accuracy of the information presented at these sites.mheducation.com/highered

www.downloadslide.comTo m y f a t h e r, Fo r e s tTo m y w i f e , H a r r i e t , a n d t o o u r c h i l d r e nLaurie, Andy, Glenn, Robb, and Christine

B RIEF T ABLE OFC ONTENTSwww.downloadslide.comSECTION ONES T R AT E GY, P R OD U C TS,A N D C A PACI T Y1 Introduction 22 Strategy 2316 Global Sourcingand Procurement 402SECTION FOURS UPPLY AND D EMANDP LANNING AND C O NT R O L3 Design of Productsand Services 4217 Enterprise Resource PlanningSystems 4264 Projects 7318 Forecasting 4445 Strategic CapacityManagement 11019 Sales and OperationsPlanning 4896 Learning Curves 13020 Inventory Management 515SECTION TWOM A N UFACT UR I N G A N DS E RV I CE P R OC E S S ES21 Material RequirementsPlanning 55922 Workcenter Scheduling 59023 Theory of Constraints 6227 Manufacturing Processes 1488 Facility Layout 1689 Service Processes 20110 Waiting Line Analysis andSimulation 22111 Process Design and Analysis 26512 Six Sigma Quality 29813 Statistical Quality Control 317SECTION THREES UP P LY C H A I N P R OC ESSES14 Lean Supply Chains 35015 Logistics, Distribution, andTransportation 378viSECTION FIVES PEC IAL T OPIC S24 Health Care 65625 Operations Consulting 671A PPENDIC ESA Linear ProgrammingUsing the ExcelSolver 691B Operations Technology 711C Financial Analysis 718D Answers to Selected ObjectiveQuestions 734

www.downloadslide.comE Present Value Table 736F Negative Exponential Distribution:Values of e –X 737G Areas of the Cumulative StandardNormal Distribution 738BRIEF TABLE OF CONTENTSH Uniformly Distributed RandomDigits 739I Interest Tables 740Index 744vii

www.downloadslide.comC ONTENTSSECTION ONES TR AT E GY, P R OD UC TS,A ND C A PACI T Y1 IN T R O D U C T I O N 2Introduction—the Elements of OSCM 3What Is Operations and Supply ChainManagement? 3Distinguishing Operations versus SupplyChain Processes 4Categorizing Operations and SupplyChain Processes 6Differences Between Services and Goods 7The Goods–Services Continuum 8Product–Service Bundling 9Careers in OSCM 9Chief Operating Officer 10The Major Concepts that Define theOSCM Field 11Current Issues in Operations and SupplyChain Management 13Efficiency, Effectiveness, and Value 14How Does Wall Street Evaluate E fficiency? 14Concept Connections 18Discussion Questions 19Objective Questions 20Analytics Exercise: C omparing C ompanies Using Wall Street E fficiency Measures 21Practice Exam 222 S T R AT E G Y 23A Sustainable Operationsand Supply Chain Strategy 24What Is Operations and Supply ChainStrategy? 25Competitive Dimensions 27The Notion of Trade-Offs 29Order Winners and Order Qualifiers: TheMarketing–Operations Link 29Strategies are Implemented UsingOperations and Supply Chain A ctivities—IKEA’s Strategy 30Assessing the Risk Associated with Operations and Supply Chain S trategies 31Risk Management Framework 32viiiProductivity Measurement 33Concept Connections 35Solved Problem 37Discussion Questions 37Objective Questions 37Case: The Tao of Timbuk 40Practice Exam 413 DE S I G N O F PR O D U C T SS E R V I C E S 42ANDProduct Design 43Product Development Process 44Product Design Criteria 49Designing for the Customer 49Value Analysis/Value Engineering 51Designing Products for Manufactureand Assembly 52Designing Service Products 56Economic Analysis of ProductDevelopment Projects 57Build a Base-Case FinancialModel 58Sensitivity Analysis to UnderstandProject Trade-Offs 60Measuring Product Development P erformance 61Concept Connections 62Solved Problem 63Discussion Questions 66Objective Questions 66Case: IKEA: Design andPricing 69Case: Dental Spa 72Practice Exam 724 P R O J E C T S 73What is Project Management? 74Organizing the Project Team 75Pure Project 75Functional Project 75Matrix Project 76Organizing Project Tasks 77Network-Planning Models 78Critical Path Method (CPM) 79CPM with Three Activity TimeEstimates 83Time–Cost Models and ProjectCrashing 86

www.downloadslide.comManaging Projects 89Earned Value Management(EVM) 91Project Management Information S ystems 94Concept Connections 95Solved Problems 97Discussion Questions 101Objective Questions 102Analytics Exercise: Product Design P roject 108Practice Exam 1095 S T R AT E G I C C A PA C I T YM A N A G E M E N T 110Capacity Management in O perations and Supply ChainManagement 111Capacity Planning Concepts 112Economies and Diseconomies ofScale 112Capacity Focus 113Capacity Flexibility 113Capacity Planning 114Considerations in ChangingCapacity 114Determining Capacity Requirements 115Using Decision Trees to EvaluateCapacity Alternatives 117Planning Service Capacity 120Capacity Planning in Services versusManufacturing 120Capacity Utilization and ServiceQuality 121Concept Connections 122Solved Problem 123Discussion Questions 125Objective Questions 125Case: Shouldice Hospital—A CutAbove 127Practice Exam 1296 L E A R N I N G C U R V E S 130What are Learning Curves? 131How are Learning CurvesModeled? 132Logarithmic Analysis 133Learning Curve Tables 133Estimating the LearningPercentage 138How Long Does LearningGo On? 138In Practice, How Much LearningOccurs? 138Individual Learning 138Organizational Learning 139Concept Connections 141Solved Problems 141Discussion Questions 142Objective Questions 143Practice Exam 146CONTENTSixSECTION TWOM ANUFAC TURING ANDS ERVIC E P ROC ESS E S7 MA N U FAC T U R I N G PR O C E S S E S148What are ManufacturingProcesses? 149How Manufacturing Processesare Organized 151Break-Even Analysis 153Manufacturing ProcessFlow Design 155Concept Connections 160Solved Problems 161Discussion Questions 162Objective Questions 163Case: Circuit Board Fabricators,Inc. 165Practice Exam 1678 F A C I L I T Y L AY O U T 168Analyzing the Four Most Common L ayout Formats 170Workcenters (Job Shops) 170Systematic Layout Planning 174Assembly Lines 174Assembly-Line Design 174Splitting Tasks 178Flexible and U-Shaped Line Layouts 179Mixed-Model Line Balancing 179Cells 181Project Layouts 181Retail Service Layout 183Servicescapes 183Signs, Symbols, and Artifacts 185Office Layout 185Concept Connections 186Solved Problem 187Discussion Questions 190Objective Questions 191Advanced Problem 197Analytics Exercise: Designing aManufacturing Process 198Practice Exam 2009 S E R V I C E P R O C E S S E S 201The Nature of Services 202An Operational Classification ofServices 203Designing Service Organizations 203Structuring the Service Encounter: TheService-System Design Matrix 205Managing Customer-IntroducedVariability 207Applying Behavioral Science to ServiceEncounters 207Service Blueprinting andFail-Safing 211

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