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Principles Of

Principles Of

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Published by: daphnelotivio on Jan 14, 2010
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Principles
of
OPERATIONSMANAGEMENT
Seventh Edition
Jay Heizer
Jesse H. Jones Professor of Business Administration
Texas
Lutheran University
Barry Render
Charles Harwood Professor of Operations ManagementCrummer Graduate School of BusinessRollins College
r
PEARSON
PrenticeHall
Upper Saddle
River,
New Jersey 07458
 
About the Authors
vi
Foreword
xx
Preface
xxi
PART
ill
1,
Introduction
to
OperationsManagement
1
Operations and Productivity
1
Global Company Profile: Hard Rock Cafe
2
What Is Operations Management?
4
Organizing
to
Produce Goods
and
Services
4
Why Study OM?
4
What Operations Managers Do
7
How
This
Book Is Organized
7
The Heritage
of
Operations Management
8
Operations
in
the Service Sector
9
Differences
between Goods and Services
10
Growth
of Services
11
Service Pay
12
Exciting New Trends
in
Operations Management
12
The Productivity Challenge
14
Productivity
Measurement
15
Productivity Variables
17
Productivity
and the Service Sector 19
Ethics and Social Responsibility
20
Summary
20
Key
Terms
21
Solved Problems 21
<
Self-Test
22
Internet and Student CD-ROM/DVD
Exercises
22
Discussion Questions
22
Ethical
Dilemma
23 • Problems 23
Case Studies:
National
Air Express 24; Zychol Chemicals
Corporation
25 • Video Case Study: Hard RockCafe:
Operations
Management
in
Services
25
Additional
Case
Study
26
Bibliography
26
Internet Resources
26
2.|
Operations Strategy
in a
Global Environment
27
Global Company Profile: Boeing
28
A
Global View
of
Operations
31
Cultural
and Ethical Issues
33
Developing Missions
and
Strategies
34
Mission
34
Strategy
35
Achieving Competitive AdvantageThrough Operations
36
Competing on Differentiation
36
Competing
on
Cost
37
Competing on Response
37
Ten Strategic OM Decisions
39
Issues
in
Operations Strategy
42
Research
42
Preconditions
43
Dynamics
43
Strategy Development
and
Implementation
43
Critical Success Factors and Core Competencies 44Build and Staff the Organization
46
Integrate OM with Other Activities
47
Global Operations Strategy Options
47
International Strategy
47
Multidomestic Strategy
47
Global Strategy
48
Transnational Strategy
49
Summary
49
Key
Terms
50
Solved Problem 50
Discussion Questions 50
Self-Test
51
Internetand Student CD-ROM/DVD Exercises 51
EthicalDilemma 51
Problems 52
Case Study:
Minit-
Lube 52
Video Case Studies: Strategy
at
RegalMarine 53; Hard Rock Cafe's Global Strategy 53
Additional Case Studies 54 • Bibliography
54
Internet Resources
54
3. Project Management
55
J
Global Company Profile: Bechtel Group
56
The Importance
of
Project Management
58
Project Planning
59
The Project Manager 59
Work
Breakdown Structure
60
Project Scheduling
61
Project Controlling
62
Project Management Techniques: PERT
and
CPM
63
The Framework of PERT and CPM 63Network Diagrams and Approaches
63
 
Xli Contents
Activity-on-Node Example 65Activity-on-Arrow Example 68
Determining the Project Schedule 68
Forward Pass
69Backward
Pass
71Calculating Slack Time and Identifyingthe Critical Path(s) 72
Variability in Activity Times 73
Three
Time
Estimates in PERT
74
Probability of Project Completion 76
Cost-Time Trade-Offs and Project Crashing 79A Critique of PERT and CPM 81Using Microsoft Project to Manage Projects 82
Creating a Project Schedule UsingMicrosoft Project 82
Tracking
Progress and Managing Costs UsingMicrosoft Project 86Summary 87
Key Terms
87
Using Software
toSolve
Project
ManagemenfProblems 88
SolvedProblems
88
Active
Model
Exercise 91
Self-Test
92
Internet and Student
CD-ROM/DVD Exercises
93
Discussion Questions
93
Ethical
Dilemma
93
Problems
93
Case
Study:
Southwestern
University(A) 99 •
Video Case
Studies:
Project Management
atArnold
Palmer Hospital
100; Managing
Hard
Rock'sRockfest
101
'Additional
Case
Studies 102
Bibliography 102
Internet
Resources
102
4.1 Forecasting 103
Global Company Profile: Disney World 104What Is Forecasting? 106
Forecasting
Time
Horizons 106The Influence of Product Life Cycle 107
Types of Forecasts 107The Strategic Importance of Forecasting 107
Human Resources 107Capacity 107Supply Chain Management 107
Seven Steps in the Forecasting System 108Forecasting Approaches 108
Overview of Qualitative Methods 108Overview of Quantitative Methods 109
Time-Series Forecasting 109
Decomposition of a Time Series 110Naive Approach 110Moving Averages 111Exponential Smoothing 113Measuring Forecast Error 115Exponential Smoothing with
Trend
Adjustment 118Trend Projections 121Seasonal
Variations
in Data 123Cyclical
Variations
in Data 128
Associative Forecasting Methods: Regressionand Correlation Analysis 128
Using Regression Analysis for
Forecasting
128Standard Error of the Estimate 130Correlation Coefficients for Regression Lines 131Multiple-Regression Analysis 133
Monitoring and Controlling Forecasts 133
Adaptive Smoothing 135Focus
Forecasting
135
Forecasting in the Service Sector 136
Summary 137
Key Terms 139
Using Softwarein
Forecasting
139
Solved Problems 140
ActiveModel Exercise 142
Self-Test 143
Internet andStudent CD-ROM/DVD Exercises 143
DiscussionQuestions 143
Ethical Dilemma 144
Problems144 • Case Studies: Southwestern University: (B)
151;
Digital Cell Phone, Inc. 151
Video CaseStudy: Forecasting at Hard Rock Cafe 152
Additional Case Studies 153
Bibliography 153
Internet Resources 153
Designing Operations 155
@
Design of Goods and Services 155
Global Company Profile: Regal Marine 156Goods and Services Selection 158
Product Strategy Options SupportCompetitive Advantage 158Product Life Cycles 159Life Cycle and Strategy 159
Product-by-Value
Analysis 160
Generating New Products 160
New Product Opportunities 160Importance of New Products 161
Product Development 162
Product Development System 162Quality Function Deployment (QFD) 162Organizing for Product Development 165Manufacturability and
Value
Engineering 166
Issues for Product Design 167
Robust Design 167Modular Design 167Computer-Aided Design (CAD) 167Computer-Aided Manufacturing (CAM) 168
Virtual
Reality Technology 169
J

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