Production and Operations Management Systems

Introduction to Production and Operations Management
The Systems Viewpoint
Strategic Thinking
Explaining P/OM
Use of Models by P/OM
The Systems Approach
Information Systems for Manufacturing and Services
Defining Operations
Working Definitions of Production and Operations
Contrasting Production Management and Operations Management
P/OM—The Hub of the Business Model
Transformation Process
Costs and Revenues Associated with Input–Output (I/O) Models
P/OM Input–Output Profit Model
Productivity—A Major P/OM Issue
The Stages of P/OM Development
Organizational Positions and Career Opportunities in P/OM
Summary
Review Questions
Problems
P/OM History Archive
Archival Articles
Readings and References
Source of Video Clips on Manufacturing
Alliance for Innovative Manufacturing (AIM): How Everyday Things Are Made

Strategy, Productivity, and History
The Systems Viewpoint
Strategic Thinking
Measurement of Productivity
System-Wide Issues Impacting Productivity
History of Improvements of P/OM Transformations
Summary
Review Questions
Problems
Readings and References

Workload Assessment (Forecasting)
Introduction
Time Series and Extrapolation
Forecasting Methods for Time-Series Analysis
Regression Analysis
Coefficients of Correlation and Determination
Forecasting Errors
The Delphi Method
Pooling Information and Multiple Forecasts
Product Life-Cycle Stages and Forecasting
Summary
Review Questions
Problems
Readings and References

Capacity Management and Aggregate Production Planning
Definitions of Capacity
Introduction to Aggregate Production Planning
Example 1: Aggregate Production Planning
Example 2: Aggregate Manufacturer’s Production Planning
Example 3: Aggregate Production Planning in a ServiceIndustry
Summary
Review Questions
Problems
Readings and References

Inventory Management
Introduction
Types of Inventory Situations
Inventory-Related Costs
EOQ Model
EPQ Model
ABC Classification
Quantity Discount Model
Lead Times
Order Point Policies
Perpetual (Fixed Quantity) Inventory Systems
Periodic Review (Fixed Time) Inventory Systems
Summary
Review Questions
Problems
Readings and References

Scheduling
Introduction
Classification of Scheduling Problems
Two Machines Flow-Shop Problem
Single-Machine Scheduling
Dynamic Scheduling Problems
Summary
Review Questions
Problems
Readings and References

Project Management
Introduction
Managing Projects
Good Project Managers Are Leaders
Basic Rules for Managing Projects
Project Management Origins
Project Network
Critical Path and Project Duration
Early Start and Early Finish Times
Late Start and Late Finish Times
Slack Time
Reducing Project Duration—Crashing Activities
Cost Analysis
Crashing Multiple Paths
Probabilistic Projects
Resource Management
Summary
Review Questions
Problems
Readings and References

Quality Management
Introduction
How Much Quality
Dimensions of Quality
The Costs of Quality
QC Methodology
Control Charts for Statistical Process Control
Control Charts for Variables: x-Bar Charts
Control Charts for Variables: R-Charts
Control Charts for Attributes: p-Charts
Control Charts for Attributes: c-Charts
Acceptance Sampling
International Quality Standards
Industrial Recognition of Quality
Summary
Review Questions
Problems
Readings and References

Supply Chain Management
Introduction
Acquisition Chain Management
The Purchasing Function
Receiving, Inspection, and Storage
Requiring Bids before Purchase
Certification of Suppliers
Global Sourcing
Distribution Chain Management
e-Business
Logistics
Forecasting and Inventory Decisions in Supply Chain
Bullwhip Effect
Summary
Review Questions
Problems
Reading and References

Long-Term Planning (Facilities, Location, and Layout)
Facilities Planning
Who Does Facilities Planning?
Models for Facility Decisions
Location Decisions—Qualitative Factors
Structure and Site Selection
Rent, Buy, or Build—Cost Determinants
Facility Selection Using Scoring Models
Location Decisions Using the Transportation Model
Location Decisions Using Breakeven Models
Facilities Layout
Load–Distance Models
Heuristics to Improve Layout
Finding the Load Matrix
Summary
Review Questions
Problems
Readings and References

Innovation by P/OM for New Product Development (NPD)and Sustainability
Introduction to NPD and Innovation
Organizations Must Be Adaptable
Competition for New Ideas, Resources, and Customers
Product Innovation Failures Can Be Avoided
Continuous Project Management Is a Successful Innovation
New Growth Platforms for Innovation
The Dynamics of Brand Share
Innovators and Imitators
Innovators’ Production Strategies
Summary
Review Questions
Problems
Readings and References
Appendix A: Quantitative Models
A.1 Breakeven Models
A.1.1 Linear Breakeven Equations
A.1.2 Breakeven Charts
A.1.3 Interfunctional Breakeven Capacity Planning
A.2 Transportation Model of Linear Programming
Reference
Appendix B: The z-Table
Index

Biography

Sushil Gupta is a Knight Ridder Center Research Professor in the College of Business Administration at Florida International University, Miami.

Martin Starr is Distinguished Professor of Production and Operations Management Emeritus at the Crummer Graduate School of Business at Rollins College, Florida, and Professor of Management Science and Operations Management Emeritus at Columbia University Graduate School of Business, New York.