Operations Management Process + Value Chains

Co-Author: Manoj Malhotra, the Jeff B. Bates chair at the University of South Carolina, was asked to join this team because of his teaching ability, his active research record, and his success as a consultant to such top firms as John Deere, Metso Corporation, Phelps Dodge, Sonoco, Milliken, and Verizon among others. Above all, Manoj is a master teacher who knows how to teach operations management creatively and effectively at both the undergraduate and MBA level. He has taught from the book since the first edition and brings new energy and ideas to this edition. Examples of his many contributions to the pedagogical quality of the eighth edition include:

8 Chapter 7, “Constraint Management.” He elevates the discussion of the theory of constraints, explains how to identify and manage bottlenecks, and introduces bottleneckbased product-mix selection techniques that dovetail with the Min-Yo Garment Company Experiential Learning Exercise.

® Chapter 9, “Lean Systems,” moved forward in the book, includes fresh Managerial Practice examples, and connects lean systems with poka-yoke methods, the Five S concept, and value stream mapping. These changes help tie together the first nine chapters of the book and reinforce the notion of viewing operations from a process management perspective, which then transitions to managing value chains in Part 3 of the book.

8 Chapter 11, “Location,” is more contemporary and practically-oriented with a strong decision-making focus. Manoj introduces such innovations as GIS-based location methods using Microsoft MapPoint 2004. There are videos on its use, along with new location examples and a new end-of-chapter case.

NEW! Starwood Case and Video Integration: Another notable change to the eighth edition is the introduction of six Managerial Challenge cases based on Starwood Hotels and Resorts. This case material, and the accompanying video footage, illustrates chapter topics through the eyes of Starwood, one of the world's largest hotel companies. NEW! Design and Organization: The book is streamlined, with fewer pages and an attractive design that lends a much different “look and feel” to the eighth edition. The art is completely redone to correspond with the design, and it has many innovative features. However, the innovations go far beyond cosmetics. Substantive changes have been made in almost every chapter and supplement, without losing the main themes that have been so valued in the past editions. For example:

8 Theme: The two dominant themes of processes and value chains have been further reinforced with considerable attention being paid to service providers, A central figure in the margin of each chapter'’s introduction makes the point, as do the brief discussions on how the chapter relates to both processes and value chains and to the firm's various functional areas.

8 Part l: Chapter 1, “Operations As a Competitive Weapon,” presents China and India as two notable countries affecting global competition and introduces the first of six Managerial Challenges. Chapter 2, “Operations Strategy,” has a new a section on order winners

and qualifiers, plus a new example of closing the gap in performance using operations strategy, and cuts tangential discussion. Chapter 3, “Project Management,” is earlier in the book to show how projects can be used to implement operations strategy. It enhances the discussion of project risk, adds a new section on the critical chain, and has new materiat on the concept of earned value in projects. Part 2; Chapter 4, “Process Strategy,” identifies the strategic issues in designing processes and describes how to embed strategy into processes. Chapter 5, “Process Analysis,” streamtlines the flowchart presentations and describes the many metrics that can be measured. Chapter 6, “Process Performance and Quality,” describes quality measures in the health care industry and expands the discussion of the six sigma process. Chapter 7, “Constraint Management,” brings Theory of Constraints principles to life and shows how they can be exploited to manage bottlenecks. Chapter 8, “Process Layout,” demonstrates activity settings in offices and streamlines the discussion of line balancing. Chapter 9, “Lean Systems,” connects poka-yoke methods, Five S concepts, and value stream mapping to lean approaches. Part 3: Chapter 10, “Supply Chain Strategy," benefits from major revisions guided by faculty reviews, including detailed new material on mass customization, lean supply chains, outsourcing/offshoring, and virtual supply chains. Chapter 11, “Location,” has exciting new additions such as MS MapPoint 2004-based GIS to make real-world location decisions, complete with three new instructional videos and Solver files that facilitate calculation. Chapter 12, “Inventory Management,” brings out the cost of capital concept relative to holding inventory. Chapter 13, “Forecasting,” describes the forecasting process and showcases the new POM for Windows software with regression analysis. Chapter 14, “Sales and Operations Planning,” renamed to fit the terminology actually used in practice (instead of “aggregate planning”), shows how to balance supply with demand and simplifies the pure planning strategies. Chapter 15, “Resource Planning,” brings in DrumBuffer-Rope and lean systems as part of the portfolio of resource planning systems. Chapter 16, “Scheduling,” has two new Managerial Practices addressing current scheduling approaches in service and manufacturing organizations. We wish to thank various people at Prentice Hall who make up the publishing team. Those most closely involved with the project and for whom we hold the greatest admiration include Mark Pfaltzgraff, executive editor of decision sciences, who supervised the overall project; Barbara Witmer, the editorial assistant who kept the manuscript moving through to production; Nancy Weicher, the media project development manager, who managed the production of the Student CD-ROM materials and the course management and Companion Website assets; Melissa Feimer, production editor, who kept us on schedule and helped assemble the book into the final product; Janet Slowik, art director, who delivered on a sleek new design of the book; Ary Ray, who seamlessly meshed three author voices into one; Debbie Clare, executive marketing manager, and Joanna Sabella, marketing assistant, whose marketing insights and promotional efforts make all the work of the publishing team worthwhile; and Richard Bretan and Avik Karmaker for helping make possible our media supplements while coordinating these projects through the production process. Annie Puciloski contributed her expertise to checking the text, Solutions Manual, and Test Item File for accuracy. We also express our warm gratitude to Pedro Reyes of Baylor University for writing the Instructor's Resource Manual; Lew Hofmann of the College of New Jersey for the creation of