Operation management solution manual heizer

Should Darden care about and investigate the labor practices wage rates, working conditions, use of underage workers, etc. What might be the repercussions, if any, if Darden does not?

Should Darden have global principles of business conduct that it would impose on all of these outsourcing suppliers? Cinematic Ticklers 1. He presents as a typical American might, while the Japanese businessmen sit in silence. The American leaves the meeting thinking that he blew the presentation. A second set of scenes can be clipped together to illustrate some of the differences in Japanese vs. American business practices.

The scenes are exaggerated to create humor, but they contain some true differences for example, company uniforms, morning exercises, zero defect policies, strict worker absentee policies, etc. OM in the News: Reshoring to the U. Gains Momentum The share of U. Factors such as logistics, inventory costs, ease of doing business, and the risks of operating extended supply chains are being cited as factors.

Some traditional manufacturers have responded to the downturn by relocating farther inland or overseas, where costs are generally lower. A new study on future global competitiveness, reported by Industry Week Dec.

The rankings: 1 U. Outline — Continued. Slide This slide Figure 2. Slide A very common reason to globalize is to reduce costs, especially labor costs or tariff costs. The agreements and organizations identified in Slide 14 represent ways in which firms can receive preferential tariff treatment. Slide Not all great ideas come from one place—internationalization provides access to great ideas from around the world.

Plus, locating overseas can provide better and quicker service to customers located in those countries. Slide International firms inevitably learn about opportunities for new products and services; also, they may be able to sell maturing products longer in less developed countries. Slide Firms can benefit by teaming up with a foreign partner to learn from each other and develop products and processes based on the unique knowledge of both firms. Slide Great employees are attracted to firms that offer more worldwide employment opportunities, as well as better insulation from unemployment.

Slides These slides are useful for discussing global location decisions. Slide 24 emphasizes that managers must become aware of cultural differences, and they should adjust their expectations and management styles accordingly. Slide 25 identifies some of the many factors that may need to be considered in global location decisions.

Slides These slides represent a nice exercise in perhaps dispelling pre-conceived notions about parent companies and home countries of certain products. Student participation can be solicited here. Global Strategies. Improve the supply chain 2. Reduce costs and exchange rate risks 3. Improve operations 4.

Understand markets 5. Improve products 6. Attract and retain global talent. Its strategy is more specific—it represents an action plan to achieve the mission. Slides These slides Figure 2. Slide Functional areas have their own missions and strategies, which usually are based on higherlevel missions and strategies in the organization. Slide A SWOT analysis can help managers identify strengths, weaknesses, opportunities, and threats to shape their strategies. Slide The three major strategies for competitive advantage are differentiation, cost leadership, and response.

While it may be possible to compete on all three at once, most firms focus on one of these major strategies. Mission statements tell an organization where it is going The Strategy tells the organization how to get there. The mission of Merck is to provide society with superior products and services— innovations and solutions that improve the quality of life and satisfy customer needs—to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return.

We seek to produce financial rewards to investors as we provide opportunities for growth and. And in everything we do, we strive Figure 2. To design and produce products and services with outstanding quality and inherent customer value. To attain the exceptional value that is consistent with our company mission and marketing objectives by close attention to design, procurement, production, and field service operations.

To determine, design, and produce the production process and equipment that will be compatible with low-cost product, high quality, and good quality of work life at economical cost. To locate, design, and build efficient and economical facilities that will yield high value to the company, its employees, and the community.

To achieve, through skill, imagination, and resourcefulness in layout and work methods, production effectiveness and efficiency while supporting a high quality of work life. To provide a good quality of work life, with well-designed, safe, rewarding jobs, stable employment, and equitable pay, in exchange for outstanding individual contribution from employees at all levels.

To collaborate with suppliers to develop innovative products from stable, effective, and efficient sources of supply. To achieve low investment in inventory consistent with high customer service levels and high facility utilization. To achieve high utilization of facilities and equipment by effective preventive maintenance and prompt repair of facilities and equipment.

Action plan to achieve mission Functional areas have strategies Strategies exploit opportunities and strengths, neutralize threats, and avoid weaknesses.

Strategies for Competitive Advantage 1. Differentiation — better, or at least different 2. Cost leadership — cheaper 3. Response — more responsive. Slides provide some specific examples of firms implementing these strategies. Slide 40 Figure 2. Theme parks use sight, sound, smell, and participation Movie theatres use sight, sound, moving seats, smells, and mists of rain. Southwest Airlines — secondary airports, no frills service, efficient utilization of equipment Walmart — small overhead, shrinkage, and distribution costs Franz Colruyt — no bags, no bright lights, no music, and doors on freezers.

A resources view is a method that managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage. Because the firm operates in a system with many external factors, constant scanning of the environment is required. Finally, strategies need to be dynamic to deal with constant internal and external change. Slides These slides from Figure 2. Issues In Operations Strategy. Decline LittleDecline product differentiation Cost minimization Overcapacity in the industry Prune line to eliminate items not returning good margin Reduce capacity.

It represents an excellent model for evaluating a strategy. Slide Key success factors are those activities that are necessary for a firm to achieve its goals. Once identified, the next step is to group the necessary activities into an organizational structure.

That structure then needs to be staffed with personnel who will get the job done. The operations function is most likely to be successful when the operations strategy is integrated with other functional areas of the firm, such as marketing, finance, HR, IT, etc. Slide The 10 OM decisions typically include the key success factors. This slide Figure 2. The 10 OM decisions provide an excellent initial checklist for determining key success factors and identifying core competencies within the operations function.

Slides These slides present Figure 2. An activity map is a graphical link of competitive advantage, key success factors, and supporting activities. SWOT Analysis. Strategy Development Process Analyze the Environment Identify the strengths, weaknesses, opportunities, and threats.

Understand the environm ent, customers, industry, and competitors. Threats Form a Strategy Build a competitive advantage, such as low price, design, or volum e flexibility, quality, quick deli very, dependability, after-sale service, broad product lines. Customized, or standardized; sustainability Define custom er quality expectations and how to achieve them Facility size, capacity, how much automation Near supplier or near customer Work cells or assembly line Specialized or enriched jobs Single or multiple suppliers When to reorder, how much to keep on hand Stable or fluctuating production rate Repair as required or preventive maintenance.

Saturate a city with Low flights,Cost lowering administrative costs per passenger High for that city AircraftPilot training required on only aircraft Uti lization one type ofStandardized. Slides These slides introduce the concept of outsourcing, which transfers certain activities to specialty providers, allowing firms to focus on their core competencies.

We often assume that outsourcing always implies that jobs are sent to other countries, but that is not always the case. Processes are often outsourced to domestic suppliers, as occurs when firms use 3rd-party logistics providers see Chapter The concept of outsourcing is not new, but Slide 57 shows why the use of outsourcing has been increasing in recent years.

Slide 58 describes how the outsourcing of manufacturing represents an extension of the longstanding practice of subcontracting. When performed on a continuing basis, this becomes contract manufacturing. In addition, these days numerous non-core internal service functions, such as payroll and legal, are being outsourced to specialists. Slide 59 describes the theory of comparative advantage from economics, which provides the impetus behind international outsourcing. Slide This slide Table 2. Risks can be significant; roughly half of all outsourcing agreements fail due to inadequate planning and analysis.

The final disadvantage identified on the slide refers to the phenomenon that many of the risks that firms incur by outsourcing may not show up in profit statements until some time in the future, encouraging short-run-thinking, fast-track managers to produce short-run profit increases that they can attribute to their outsourcing decisions. Slides The factor-rating method can be applied to outsourcing provider selection. Different factors are assigned difference importance weights, so a weighted average must be computed.

Slide 62 is based on Example 1 from the book. In other real applications, managers can add factors and assign different weights as they deem fit. To keep things simple, all factors should move in the same direction, that is, either low scores are good for all factors or high scores are good for all factors. Product and modular production process; tries to have long product runs in specialized facilities; builds capacity ahead of demand.

The figure places the four international operations strategies on a graph with local responsiveness on the x-axis and cost reduction on the y-axis. A transnational strategy has the potential to pursue all three operations strategies differentiation, low cost, and response. Slide This slide is an interesting way to end the chapter discussion by presenting a ranking of the most corrupt countries.

Global Operations Strategy Options High. Additional Assignment Ideas 1. Ask students to prepare for class by visiting several company websites and, for each company, locating the company mission and printing a copy of it to bring to class.

The students should also be asked to, if possible, determine the strategy used by the company to achieve its published mission. Look at the websites for two different companies and determine how they operate in the global business environment.

Students should try to address the following questions: o o o o o. How is a global strategy in evidence from their websites? What sort of global operations strategy do they seem to be adopting—international, multidomestic, global, or transnational?

Do their facility locations reflect their global strategy? How much of their business is done globally? How do their work forces reflect their global strategy? A number of opportunities and trends regarding outsourcing can be found at The Outsourcing Institute www. Other Supplementary Material Videos 1. Wall Street This movie illustrates very different corporate missions between the established company and the one trying to take it over.

Exercise Steven S. Stents Versus Drug Therapy A critical thinking exercise on the topic of health care. Copyright , Steven S. This is an introductory exercise suitable for the first lecture of a beginning course in Operations Management. No prior knowledge of Operations Management is required. However, quantitative analysis is only successful if the underlying measures or objective functions are aligned with the envisioned outcomes. Thus, a fundamental task before any quantitative methodology is applied such as forecasting, statistical process control, or optimization is selecting the measures or numerical quantities to monitor and evaluate.

This task immediately raises questions of mission, strategy, and global social welfare, because some performance measures will react counter cyclically to each other. For example, queue length and server utilization are fundamentally conflicted with one another. Choosing either of these measures as an objective for improvement will likely lead to opposing results in the other. The discussion topic for this exercise is whether surgically implanted blood vessel stents are better for patients and the health care system than alternative therapy with clot reducing medication.

Instructions Open your lecture by explaining that Operations Management frequently concerns quantitative analysis of data, but that analysis is only valuable if the data studied represents the objectives of the firm. A critical first step in problem solving and managerial analysis is then choosing which data measures to study. They cannot be feelings or vague desires. Also discuss how measurements must be defined so that there is mutual agreement, so that all parties agree on how the data is collected and what the data means.

Prepare your students to listen to the news story by asking them to answer fundamental questions from the news story: 1. The work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.

You have successfully signed out and will be required to sign back in should you need to download more resources. If You're an Educator Download instructor resources Additional order info. Overview Order Downloadable Resources Overview. Download Resources. Previous editions. Relevant Courses. The written comments are not always consistent: Portion size is highly rated in comments, but 5th in overall grade.

Negative 1 2 3 4 5 6 This is a scatter diagram. A x Trips 6. This is a C-chart. Week 4 11 calls exceeds UCL. Not in control.

Find breakeven points, X p. First graph. Then solve for breakpoint s. Yes, so we use continuous process. A No additional minor expansion S7. Therefore in one 8 hour day one bay accommodates He does not have sufficient capacity. Remember that Yr 0 has no discounting.

Assume dues are collected at the beginning of each year. This is a simplification—in reality, people are likely to join throughout the year. Compare the PV cash stream of yearly dues from one member to that of the deal. Since we specified the club will always be full, we can make the assumption that the member or her replacement will always be paying the annual fee.

Profit 3, PV Mult 1 0. Charlotte K. Yes, it is feasible. Answer : Saveola, Inc. This will be their inventory policy. A So there is a Thus, the schedule is to produce per month and have no costs associated with work force variation. The only costs incurred will be the monthly production cost, the inventory cost, and the shortage cost. The costs are calculated as follows. Hire nate Req. A Sub-Contracting Extra Cost 2, 1, 8, 4, 16, 8, Also included for each component are the following information: the on-hand supply, lead time, and direct components.

Total lead time in weeks associated with making an item of FG-A, assuming we had no starting on-hand for any part? The most common mistake people tend to make is to forget the LT associated with final assembly. We have enough F on-hand, but need 4 more E. Now we look at the on-hand quantities and see we have 10 E and 5 F. Compare that to the BOM calculated above. Our on-hand records show we have 14 E and 4 F, so we are short 4 E. We begin by taking 5 empty slots Next, we find the shortest time in the table.

It is product on Machine B. Since this is on the second machine, this product can be done as late as possible. Then we find the shortest again. It is on B Then it is on A. Since it is on the first machine, it is the earliest job.

Step 2: Move material closer and improve material handling Step 3: Standardize and improve tooling Step 4: Use one-touch system to eliminate adjustments Step 5: Train operators and standardize work procedures No floor space N.

Manny should wait 1 day. Then, if an XPO2 is available, he should buy it. Otherwise, he should stop pursuing an XPO2 on the wholesale market. A A.