Operations Management

Chapter 1: Introduction to Operations and Supply Chain Management

• • Tim Hortons: Every Cup Tells a Story
• • Introduction
• • 1.1 The Operations Function
• • Along the Supply Chain 1.1: What Do Operations and Supply Chain Managers Do?
• • 1.2 The Evolution of Operations and Supply Chain Management
• • 1.3 Globalization
• • Along the Supply Chain 1.2: Creating Shared Value at Nestlé
• • 1.4 Productivity and Competitiveness
• • 1.5 Strategy and Operations
• • Along the Supply Chain 1.3: Whole Foods Market’s Unique Strategy
• • Along the Supply Chain 1.4: New Players Disrupt with Innovation
• • Along the Supply Chain 1.5: Feeding Canada
• • Summary of Learning Objectives / Summary of Key Terms / Questions / Problems
• • Case Problem 1.1 Visualize This
• • Case Problem 1.2 Whither an MBA at Brandon?
• • Case Problem 1.3 Weighing Options at the Weight Club
• • References

Chapter S1: Operational Decision-Making Tools: Decision Analysis

• • Introduction
• • S1.1 Decision Analysis with and without Probabilities
• • Summary of Learning Objective / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Problems
• • Case Problem S1.1 Whither an MBA at Brandon?
• • Case Problem S1.2 Transformer Replacement at Mountain Side Electric Company
• • Case Problem S1.3 Evaluating Projects at Nexcom Systems
• • References

Chapter 2: Quality Management

• • The Coffee Customer is Always Right
• • Introduction
• • 2.1 What is Quality?
• • 2.2 Quality Management System
• • Along the Supply Chain 2.1: Applying Deming’s Principles in Award-Winning Hospitals
• • 2.3 Quality Tools
• • 2.4 The Role of Employees in Quality Improvement
• • Along the Supply Chain 2.2: Customer Focus and Employee Empowerment at Maple Leaf Foods
• • Along the Supply Chain 2.3: Customer Satisfaction at Ritz-Carlton Hotels
• • 2.5 Six Sigma
• • Along the Supply Chain 2.4: Motorola’s Six Sigma Quality
• • 2.6 The Cost of Quality
• • 2.7 The Effect of Quality Management on Productivity
• • Along the Supply Chain 2.5: ISO Certifications for Sustainability and Social Responsibility
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 2.1 Designing a Quality-Management Program for the Internet at D4Q
• • Case Problem 2.2 Quality Management at Local University
• • Case Problem 2.3 Quality Problems at the Tech Bookstores
• • Case Problem 2.4 Product Yield at Continental Luggage Company
• • References

Chapter 3: Statistical Process Control

• • Quality Control in Athletic Shoe Manufacturing
• • Introduction
• • 3.1 The Basics of Statistical Process Control
• • Along the Supply Chain 3.1: Using Sampling and Statistics to Analyze MillerCoors’ Distribution Network Performance
• • Along the Supply Chain 3.2: Using Control Charts for Improving Health-Care Quality
• • 3.2 Control Charts
• • 3.3 Control Charts for Attributes
• • 3.4 Control Charts for Variables
• • 3.5 Control Chart Patterns
• • 3.6 Process Capability
• • Along the Supply Chain 3.3: Determining Quality Process Parameters for Starbucks Coffee Bags
• • Along the Supply Chain 3.4: Design Tolerances at Harley-Davidson Company
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 3.1 Quality Control at Rainwater Brewery
• • Case Problem 3.2 Quality Control at Green Grass
• • Case Problem 3.3 Improving Service Time at Dave’s Burgers
• • References

Chapter S3: Operational Decision-Making Tools: Acceptance Sampling

• • Introduction
• • S3.1 Single-Sample Attribute Plan
• • S3.2 The Operating Characteristic Curve
• • S3.3 Average Outgoing Quality
• • S3.4 Double- and Multiple-Sampling Plans
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problem / Questions / Problems

Chapter 4: Product Design

• • Brewing Up New Products
• • Introduction
• • 4.1 The Design Process
• • Along the Supply Chain 4.1: Pixar’s Creativity
• • Along the Supply Chain 4.2: Apple’s Design Process
• • 4.2 Technology in Design
• • 4.3 Design Quality Reviews
• • Along the Supply Chain 4.3: Jugaad, Design for the Times
• • 4.4 Design for the Environment
• • Along the Supply Chain 4.4: Consider Nike’s Flyknit Design
• • Along the Supply Chain 4.5: Creating Fairphones
• • 4.5 Quality Function Deployment
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 4.1 Greening Product Design
• • Case Problem 4.2 Lean and Mean
• • References

Chapter 5: Service Design

• • Driving Better Customer Service
• • Introduction
• • 5.1 The Service Economy
• • 5.2 Characteristics of Services
• • 5.3 The Service Design Process
• • Along the Supply Chain 5.1: Uber and the Sharing Economy
• • Along the Supply Chain 5.2: Warby Parker Game Changer
• • 5.4 Tools for Service Design
• • 5.5 Waiting Line Analysis for Service Improvement
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 5.1 Streamlining the Refinancing Process
• • Case Problem 5.2 Herding the Patient
• • Case Problem 5.3 The Faculty of Business Copy Centre
• • Case Problem 5.4 Northwoods Backpackers
• • References

Chapter 6: Processes and Technology

• • The Process of Making Maple Syrup
• • Introduction
• • 6.1 Process Planning
• • 6.2 Process Analysis
• • 6.3 Process Innovation
• • 6.4 Technology Decisions
• • Along the Supply Chain 6.1: 3D Printing and Other Advances in Additive Manufacturing
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problem / Questions / Problems
• • Case Problem 6.1 A Manager’s Woes
• • Case Problem 6.2 Wrong Meds, Again!
• • Case Problem 6.3 The “Double Sale”
• • References

Chapter 7: Capacity and Facilities Design

• • Mark’s is “Well Worn” and Well Laid Out
• • Introduction
• • 7.1 Capacity Planning
• • Along the Supply Chain 7.1: Tesla’s Gigafactories Produce Energy as Well as Batteries and Solar Panels
• • 7.2 Facilities
• • Along the Supply Chain 7.2: Is There Really a Starbucks at Every Corner?
• • 7.3 Basic Layouts
• • 7.4 Designing Process Layouts
• • Along the Supply Chain 7.3: The Health Benefits of Good Layout
• • 7.5 Designing Service Layouts
• • Along the Supply Chain 7.4: Inviting Retail Layouts
• • 7.6 Designing Product Layouts
• • 7.7 Hybrid Layouts
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 7.1 Workout Plus
• • Case Problem 7.2 Photo Op—Please Line Up
• • Case Problem 7.3 The Grab ’n Go Café
• • References

Chapter S7: Operational Decision-Making Tools: Facility Location Models

• • Introduction
• • S7.1 Types of Facilities
• • S7.2 Site Selection: Where to Locate
• • S7.3 Site Selection: Factors to Consider
• • S7.4 Location Analysis Techniques
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problem / Questions / Problems
• • Case Problem S7.1 Selecting a European Distribution Centre Site for AIAI
• • References

Chapter 8: Human Resources

• • A Commitment to Worker Sustainability in the Athletic Shoe Industry
• • Introduction
• • 8.1 Human Resources and Quality Management
• • 8.2 The Changing Nature of Human Resources Management
• • 8.3 Contemporary Trends in Human Resources Management
• • Along the Supply Chain 8.1: Human Resources Management: Helping Women Break the “Glass Ceiling”; Rotman School of Management with TD Bank Group
• • Along the Supply Chain 8.2: Creating Sustainable Workplaces
• • 8.4 Employee Compensation
• • 8.5 Managing Diversity in the Workplace
• • Along the Supply Chain 8.3: English and French in the Workplace
• • Along the Supply Chain 8.4: ERIEC: A Commitment to Diversity
• • 8.6 Job Design
• • 8.7 Job Analysis
• • 8.8 Learning Curves
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formula / Solved Problem / Questions / Problems
• • Case Problem 8.1 Star Renovation
• • Case Problem 8.2 HQ Recruitment Services
• • References

Chapter S8: Operational Decision-Making Tools: Work Measurement

• • Introduction
• • S8.1 Time Studies
• • S8.2 Work Sampling
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem S8.1 Alan’s Autos
• • Case Problem S8.2 Blue Bird Bistro
• • References

Chapter 9: Project Management

• • Mega Projects Equal Mega Risk
• • Introduction
• • 9.1 Project Planning
• • Along the Supply Chain 9.1: Sustainable Wind Farm Projects
• • 9.2 Global Cultural and Diversity Issues in Project Management
• • Along the Supply Chain 9.2: Cross-Cultural Project Teams
• • 9.3 Project Scheduling
• • 9.4 Project Control
• • Along the Supply Chain 9.3: Transoceanic Cable-Laying Projects
• • 9.5 CPM/PERT
• • 9.6 Probabilistic Activity Times
• • 9.7 CPM/PERT Analysis with Excel
• • 9.8 Project Crashing and Time–Cost Trade-off
• • 9.9 Project Management with Smartsheet
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problem / Questions / Problems
• • Case Problem 9.1 The Bloodless Coup Concert
• • Case Problem 9.2 Retirement Home Renovation
• • References

Chapter 10: Supply Chain Management: Strategy and Design

• • Delivering the Goods to Tim Hortons Lovers
• • Introduction
• • 10.1 Supply Chains
• • Along the Supply Chain 10.1: The Digital Supply Chain at Apple and Amazon
• • 10.2 The Management of Supply Chains
• • 10.3 Supply Chain Sustainability
• • Along the Supply Chain 10.2: Green Supply Chain at Ontario Power Generation
• • Along the Supply Chain 10.3: Walmart’s Commitment to Sustainability
• • Along the Supply Chain 10.4: Reducing Costs with Sustainability at UPS
• • 10.4 Information Technology: A Supply Chain Enabler
• • Along the Supply Chain 10.5: Blockchain Strategies at IBM, Maersk, Walmart, UPS, and Nestlé
• • 10.5 Supply Chain Integration
• • Along the Supply Chain 10.6: Supply Chain Integration in the Health Care System of Ontario
• • 10.6 Measuring Supply Chain Performance
• • Along the Supply Chain 10.7: Amazon, a Supply Chain “Master”
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problem / Questions / Problems
• • Case Problem 10.1 Somerset Furniture Company’s Global Supply Chain
• • Case Problem 10.2 Saboo Inc.’s Sustainable Supply Chain
• • References

Chapter 11: Global Supply Chain Procurement and Distribution

• • A Fresh Approach to the Supply Chain
• • Introduction
• • 11.1 Procurement
• • Along the Supply Chain 11.1: World-Class Supply Chain Management at Inditex Group
• • 11.2 E-Procurement
• • 11.3 Distribution
• • Along the Supply Chain 11.2: Innovative Distribution Solution for Pharmaceuticals Industry
• • 11.4 Transportation
• • Along the Supply Chain 11.3: Mammoth Global Supply Chain Company, Maersk
• • 11.5 The Global Supply Chain
• • Along the Supply Chain 11.4: Global Supply Chain Management at Li & Fung
• • Along the Supply Chain 11.5: Sustainability Initiatives at Lego
• • Along the Supply Chain 11.6: North American Nearshoring in Central and South America
• • Along the Supply Chain 11.7: From Offshoring to Reshoring Production
• • Summary of Learning Objectives / Summary of Key Terms / Questions
• • Case Problem 11.1 Somerset Furniture Company’s Global Supply Chain—Continued
• • Case Problem 11.2 DMI Chemicals Inc.

Chapter S11: Operational Decision-Making Tools: Transportation and Trans-shipment Models

• • Introduction
• • S11.1 The Transportation Model
• • S11.2 The Trans-shipment Model
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problem / Problems
• • Case Problem S11.1 Canaline Shipping and Transport Company
• • Case Problem S11.2 Global Supply Chain Management at Cantrex Apparel International
• • References

Chapter 12: Forecasting

• • Looking into the Future with Forecasting
• • Introduction
• • 12.1 The Strategic Role of Forecasting in Supply Chain Management
• • Along the Supply Chain 12.1: Forecasting Denim Jeans Trends
• • 12.2 Components of Forecasting Demand
• • Along the Supply Chain 12.2: Global Supply Chain Forecasting at Hershey’s
• • Along the Supply Chain 12.3: Forecasting the Global Smart Phone Market
• • 12.3 Time Series Methods
• • Along the Supply Chain 12.4: Forecasting Empty Shipping Containers
• • 12.4 Forecast Accuracy
• • Along the Supply Chain 12.5: Forecasting Market Demand at Saputo
• • 12.5 Regression Methods
• • 12.6 Data Mining
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 12.1 Forecasting the Demand for Medical Cannabis
• • Case Problem 12.2 Cascades Swim Club
• • Case Problem 12.3 Forecasting Passenger Arrivals at the Gotham International Airport
• • References

Chapter 13: Inventory Management

• • Inventory Management at Nike
• • Introduction
• • 13.1 The Role of Inventory in Supply Chain Management
• • 13.2 The Elements of Inventory Management
• • 13.3 Inventory Control Systems
• • 13.4 Economic Order Quantity Models
• • Along the Supply Chain 13.1: Multi-Echelon Inventory Optimization at Procter & Gamble
• • 13.5 Quantity Discounts
• • 13.6 Reorder Point
• • Along the Supply Chain 13.2: World Class Inventory Management at Apple
• • 13.7 Order Quantity for a Periodic Inventory System
• • Along the Supply Chain 13.3: Vendor-Managed Inventory (VMI) at Dell
• • 13.8 Order Quantity for the Single-Period Inventory Model
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 13.1 The Instant Paper Clip Office Supply Company
• • Case Problem 13.2 The Calgary Stampeders Apparel Store
• • Case Problem 13.3 Cambridge Foods Company
• • References

Chapter S13: Operational Decision-Making Tools: Simulation

• • Introduction
• • S13.1 Monte Carlo Simulation
• • S13.2 Areas of Simulation Application
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problem / Questions / Problems / References

Chapter 14: Sales and Operations Planning

• • Planning for Success
• • Introduction
• • 14.1 The Sales and Operations Planning Process
• • Along the Supply Chain 14.1: Disney’s Magic Numbers
• • 14.2 Strategies for Adjusting Capacity
• • 14.3 Strategies for Managing Demand
• • 14.4 Quantitative Techniques for Aggregate Planning
• • Along the Supply Chain 14.2: Chevron’s Best Mix
• • 14.5 The Hierarchical Nature of Planning
• • Along the Supply Chain 14.3: How LEGO Rebuilt Its Supply Chain and Found S&OP
• • 14.6 Aggregate Planning for Services
• • Along the Supply Chain 14.4: Revenue Management at Caesars Windsor Hotel and Casino
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problems / Questions / Problems
• • Case Problem 14.1 Seats for Sale
• • Case Problem 14.2 Erin’s Energy Plan
• • References

Chapter S14: Operational Decision-Making Tools: Linear Programming

• • Introduction
• • S14.1 Model Formulation
• • S14.2 Graphical Solution Method
• • S14.3 Linear Programming Model Solution
• • S14.4 Solving Linear Programming Problems with Excel
• • S14.5 Sensitivity Analysis
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problem / Questions / Problems
• • Case Problem S14.1 Mosaic Tile Company
• • Case Problem S14.2 The Sea Village Amusement Park
• • Case Problem S14.3 Spring Garden Tools
• • Case Problem S14.4 Walsh’s Juice Company
• • Case Problem S14.5 Julia’s Food Booth
• • References

Chapter 15: Resource Planning

• • Target Misses the Mark
• • Introduction
• • 15.1 Material Requirements Planning (MRP)
• • 15.2 Capacity Requirements Planning (CRP)
• • 15.3 Enterprise Resource Planning (ERP)
• • Along the Supply Chain 15.1: SAP Powers NFL Fantasy Football and the NFL
• • Along the Supply Chain 15.2: Implementation of ERP at Pratt & Whitney Canada
• • 15.4 ERP and Related Software: Connectivity and Integration
• • Along the Supply Chain 15.3: Roku Runs on NetSuite
• • Summary of Learning Objectives / Summary of Key Terms / Solved Problems / Questions / Problems
• • Case Problem 15.1 Just ERP
• • Case Problem 15.2 Hosuki
• • Case Problem 15.3 It’s Snowing Again!
• • References

Chapter 16: Lean Systems

• • Lean Thinking at an Airline
• • Introduction
• • 16.1 The Basic Elements of Lean Production
• • Along the Supply Chain 16.1: UltraFit Manufacturing: Lean and Fit Manufacturing
• • Along the Supply Chain 16.2: Universal Studios Holds “Treasure Hunt” Kaizen Event
• • 16.2 Implementing Lean Production
• • Along the Supply Chain 16.3: Nike’s Lean Philosophy
• • 16.3 Other Applications of Lean Systems
• • Along the Supply Chain 16.4: Leaning in to Better Patient Care
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formula / Questions / Problems
• • Case Problem 16.1 The Blitz is On
• • Case Problem 16.2 Where’s My Cart?
• • Case Problem 16.3 Leaning the Warehouse
• • References

Chapter 17: Scheduling

• • Taking the Guesswork out of Employee Scheduling
• • Introduction
• • 17.1 Scheduling Techniques
• • 17.2 Loading
• • Along the Supply Chain 17.1: Analytics at Airbnb
• • Along the Supply Chain 17.2: Scheduling Major League Baseball Umpires
• • 17.3 Sequencing
• • Along the Supply Chain 17.3: Solving Tough Scheduling Problems in Health Care
• • 17.4 Monitoring
• • Along the Supply Chain 17.4: Eliminate Bottlenecks, Don’t Just Move Them Somewhere Else!
• • 17.5 Advanced Planning and Scheduling Systems
• • 17.6 Employee Scheduling
• • Along the Supply Chain 17.5: Employee Scheduling at NAV CANADA
• • Summary of Learning Objectives / Summary of Key Terms / Summary of Key Formulas / Solved Problems / Questions / Problems
• • Case Problem 17.1 Learn Canada
• • Case Problem 17.2 From a Different Perspective
• • References

Chapter Appendix A: Standard Normal Distribution

Chapter Appendix B: Solutions to Selected Problems