Operations & Supply Chain Management – IE Liquid Pages

Operations
& Supply Chain Management

By IE University

Chapters

Table of contents

SECTION 1: STRATEGY, PRODUCTS, AND CAPACITY
SECTION 2: MANUFACTURING AND SERVICE PROCESSES
SECTION 3: SUPPLY CHAIN PROCESSES
SECTION 4: SUPPLY AND DEMAND PLANNING AND CONTROL
APPENDICES

Chapter 1: Introduction

Chapter 2: Strategy

Chapter 3: Design of Products and Services

Chapter 4: Projects

Chapter 5: Strategic Capacity Management

Chapter 5S: Investment Analysis

Chapter 6: Learning Curves

Chapter 7: Manufacturing Processes

Chapter 7S: Manufacturing Technology

Chapter 8: Facility Layout

Chapter 9: Service Processes

Chapter 9S: Health Care

Chapter 10: Waiting Line Analysis and Simulation

Chapter 11: Process Design and Analysis

Chapter 11S: Operations Consulting

Chapter 12: Six Sigma Quality

Chapter 13: Statistical Quality Control

Chapter 14: Lean Supply Chains

Chapter 15: Logistics, Distribution, and Transportation.

Chapter 16: Global Sourcing and Procurement

Chapter 17: The Internet of Things and ERP

Chapter 18: Forecasting

Chapter 19: Sales and Operations Planning

Chapter 19S: Linear Programming Using the Excel Solver

Chapter 20: Inventory Management

Chapter 21: Material Requirements Planning

Chapter 22: Workcenter Scheduling

Chapter 22S: Theory of Constrains

Appendix A

Appendix B

Appendix C

Appendix D

Appendix E

Key learning points*

Identify the elements of operations and supply chain management (OSCM).
Know the potential career opportunities in operations and supply chain management.
Recognize the major concepts that define the operations and supply chain management field.
Evaluate the efficiency of a firm.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 2.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Define operations and supply chain strategy.
Explain how operations and supply chain strategies are implemented.
Understand why strategies have implications relative to business risk.
Evaluate productivity in operations and supply chain management.
Know what a sustainable business strategy is and how it relates to operations and supply chain management.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 20.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Know the issues associated with product design and the typical processes used by companies.
Illustrate how different criteria can impact the design of a product.
Contrast how service products can have different design criteria compared to manufactured products.
Evaluate the economic impact of a new product on a company.
Illustrate how product development is measured in a company.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 39.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain what projects are and how projects are organized.
Evaluate projects using earned value management.
Analyze projects using network-planning models.
Exemplify how network-planning models and earned value management are implemented in commercial software packages.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 71.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain what capacity management is and why it is strategically important.
Exemplify how to plan capacity.
Evaluate capacity alternatives using decision trees.
Compare capacity planning in services to capacity planning in manufacturing.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 108.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Evaluate capital investments using the various types of cost, risk and expected value, and depreciation.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 128.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Understand what a learning curve is and where learning curves are applicable.
Plot and analyze learning curves.
Compare the impact of learning on different industries.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 144.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Understand what a manufacturing process is.
Explain how manufacturing processes are organized.
Analyze simple manufacturing processes.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 162.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain how technology has affected manufacturing.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 182.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Analyze the common types of manufacturing layouts.
Illustrate layouts used in nonmanufacturing settings.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 189.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points *

Understand the characteristics of service processes.
Explain how service systems are organized.
Analyze simple service systems.
Contrast different service designs.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 223.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points *

Understand health care operations and contrast these operations to manufacturing and service operations.
Exemplify performance measures used in health care.
Illustrate future trends in health care.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 244.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Understand what a waiting line problem is.
Analyze waiting line problems.
Analyze complex waiting lines using simulation.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 258.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Exemplify a typical business process and how it can be analyzed.
Compare different types of processes.
Explain how jobs are designed.
Analyze manufacturing, service, and logistics processes to ensure the competitiveness of a firm.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 301.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain operations consulting and how money is made in the industry.
Illustrate the operations analysis tools used in the consulting industry.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 334.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain the scope of total quality management in a firm.
Understand the Six Sigma approach to improving quality and productivity.
Illustrate globally recognized quality benchmarks.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 344.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Illustrate process variation and explain how to measure it.
Analyze process quality using statistics.
Analyze the quality of batches of items using statistics.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 363.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain what lean production is.
Illustrate how lean concepts can be applied to supply chain processes.
Analyze supply chain processes using value stream mapping.
Explain lean design principles.
Apply lean concepts to service processes.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 396.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning Points*

Explain what logistics is.
Contrast logistics and warehouse design alternatives.
Analyze logistics-driven location decisions.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 424.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Explain what strategic sourcing is.
Explain why companies outsource processes.
Analyze the total cost of ownership.
Evaluate sourcing performance.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 448.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Understand what an enterprise resource planning (ERP) system is.
Explain how ERP integrates business units through information sharing.
Illustrate how supply chain planning and control fits within ERP.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 472.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Understand how forecasting is essential to supply chain planning.
Evaluate demand using quantitative forecasting models.
Apply qualitative techniques to forecast demand.
Apply collaborative techniques to forecast demand.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 485.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans.
Construct and evaluate aggregate plans that employ different strategies for meeting demand.
Explain yield management and why it is an important strategy.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 526.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Use Microsoft Excel Solver to solve a linear programming problem.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 526.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key learning points*

Explain how inventory is used and understand what it costs.
Analyze how different inventory control systems work.
Analyze inventory using the Pareto principle.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 566.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Explain what material requirements planning (MRP) is.
Understand how the MRP system is structured.
Analyze an MRP problem.
Evaluate and compare MRP lot-sizing techniques.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 609.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Explain workcenter scheduling.
Analyze scheduling problems using priority rules and more specialized techniques.
Apply scheduling techniques to the manufacturing shop floor.
Analyze employee schedules in the service sector.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 640.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Key Learning Points*

Explain the Theory of Constraints (TOC).
Analyze bottleneck resources and apply TOC principles to controlling a process.
Compare TOC to conventional approaches.
Evaluate bottleneck scheduling problems by applying TOC principles.

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 672.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Interest tables

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 703.

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Negative Exponential Distribution: Values of E ^{– X}

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 707.

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Areas of the Cumulative Standard Normal Distribution

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 708.

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IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Uniformly Distributed Random Digits

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 709.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Answers to Selected Objective Questions

*Retrieved from Jacobs, F. R., and Chase, R. (2020) Operations and Supply Chain Management (16^th ed.). McGraw-Hill US, p. 710.

This access is only available for IE students.

IE Library allows 3 concurrent users for this title. If you wish to purchase the book, please visit the ieknowledge website.

Learning Assets

Operations Strategy Alignment: Two Sides of the Same Coin

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís covers the importance of operations strategy alignment, discussing the role of competitive capabilities and offering strategy insights through the examples of well-known companies.

Key Insights in Operations Strategy

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís explains how Terry Hill´s operations framework helps management obtain the insights necessary to understand operations functions, discussing the concepts of order winners, order qualifiers, and order losers and how these relate to a firm.

Terry Hill´s Framework 2.0

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís discusses Terry Hill´s operations strategy framework and offers insights on how the framework can be modified to be most useful in operations and strategy design.

Learning Assets

Process Analysis in Manufacturing

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís provides insights on how organizations in the manufacturing sector analyze their processes in order to improve their market competitiveness and overall performance.

Process Analysis in Services

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís offers examples of process analysis and actions taken to improve processes in services, using examples from well-known companies to illustrate the relation between process analysis and customer service design and innovation.

Learning Assets

Quality Management: An HR Perspective

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís interviews Pedro Casaño (Board Member, Grupo JSP, Spain), who discusses quality management and best practices for operations and strategy from a human resources perspective.

Quality Management Concepts and Framework

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís outlines the quality practices that form the Total Quality Management model, relating these practices to competitive capabilities.

Quality Control in Services

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís highlights the importance of quality control systems in service industries, explaining the main elements of these systems, how they can be implemented, and how quality can be measured to improve services.

Quality Management and Competitive Advantage

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís explains which operations-based quality management practices can help companies obtain, maintain, and improve their competitive advantage.

Learning Assets

Process Capability Index in Practice

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís explains how companies can use the process capability index to make key decisions when evaluating and selecting suppliers and improving their own processes.

Learning Assets

Process Improvement: Lean in Manufacturing

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís interviews Pedro Azevedo (Plant Manager, SNA Europe), who discusses how he has implemented lean to improve processes, provide quicker and more effective decision-making, and face the challenges of competition, and offers tips for successful lean implementations.

Process Improvement: Lean in Healthcare Services

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís interviews Dr. Rahul Rastogi (Professor and Director of Pain Medicine, University of Iowa, USA), who discusses the particular challenges he faced in implementing lean in a pain clinic and how lean helped him improve patient care.

Lessons Learned from Lean Implementation

By Prof. Luis Eduardo Solis Galvan

In this video, Professor Solís offers tips to ensure successful lean implementation in companies, explaining the role of all employees and levels of leadership in the organization in implementing lean.