Introduction to Operations Management (MGT 311)

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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 3
Introduction to Operations Management (MGT 311)
Due Date: 02/12/2023 @ 23:59
Course Name:
Student’s Name:
Course Code: MGT 311
Student’s ID Number:
Semester: First
CRN:
Academic Year:2023-24-1st
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
•
•
•
To designing profitable services that provide high level of quality to satisfy
business needs.
To ensure that the services delivered are reasonable and relevant to the customers.
To gain an understanding of the business rules and ensure if the results are in
alignment with the organizational goals.
Go through the given case scenario
‘There must be a better way of running this place!’ said Dean Hammond,
recently recruited General Manager of Boys and Boden, as he finished a
somewhat stressful conversation with a complaining customer, a large and
loyal local building contractor.
‘We had six weeks to make their special staircase, and we are still late! I’ll
have to persuade one of the joiners to work overtime this weekend to get
everything ready for Monday. We never seem to get complaints about
quality, as our men always do an excellent job … but there is usually a big
backlog of work, and something always gets finished late, so how should we
set priorities? We could do the most profitable work first, or the work for our
biggest customers, or the jobs which are most behind on. In practice, we try
to satisfy everyone as best we can, but inevitably someone’s order will be
late. In theory, each job should be quite profitable, since we build into the
price a big allowance for waste, and for timber defects. And we know the
work content of almost any task we would have to do; this is the basis of our
estimating system. But, overall, the department is disappointingly
unprofitable, and most problems seem to end up with a higher-thananticipated cost, and with late deliveries!’
Boys and Boden was a small, successful, privately-owned timber and
building materials merchant based in a small town. Over the years it had
established a large Joinery Department, which made doors, windows,
staircases and other timber products, all to the exact special requirements of
the customers, mostly comprising numerous local and regional builders. In
addition, the joiners would cut and prepare special orders of timber, such as
non-standard sections and special profiles, including old designs of skirting
board, sometimes at very short notice, and often even while the customers
waited. Typically, for larger joinery items, the customer provided simple
dimensioned sketches of the required products. These were then passed to
the central Estimating and Quotations Department which, in conjunction
with the Joinery Manager, calculated costs and prepared a written quotation,
which was faxed or posted to the customer. This first stage was normally
completed within two or three days, but on occasions could take a week or
more. On receipt of an order, the original sketches and estimating details
were passed back to the Joinery Manager, who roughly scheduled them into
his manufacturing plan, allocating them to individual craftsmen as each
became available. Most of the joiners were capable of making any product,
and enjoyed the wide variety of challenging work.
The Joinery Department appeared congested and somewhat untidy, but
everyone believed that this was acceptable and normal for job shops, since
there was no single flow route for materials. Whatever the design of the item
being made, it was normal for the joiner to select the required bulk timber
from the storage building across the yard. This roughly-sawn timber was
then prepared using a planer-thicknesser machine which gave it smooth,
parallel surfaces. After that, the joiners would use a variety of processes,
depending on product. The timber could be machined into different crosssectional shapes, cut into component lengths using a radial arm saw, joints
were formed by hand tools, or using a morticing machine, and so on. Finally
the products would be glued and assembled with screws and nails, sanded
smooth by hand or by machine, and treated with preservatives, stains or
varnishes if required. All the large and more expensive floor-standing
machines were grouped together by type (for example, saws) or were single
pieces of equipment shared by all 10 joiners. Every joiner also owned a
complete set of hand tools which they guarded and cared for with pride.
Dean described what one might observe on a random visit to the Joinery
Department:
‘One or two long staircases partly assembled, and crossing several work
areas; large door frames on trestles being assembled; stacks of window
components for a large contract being prepared and jointed, and so on.
Offcuts and wood shavings are scattered around the work area, but are
periodically cleared when they get in the way or form a hazard. The joiners
try to fit in with each other over the use of machinery, so are often working
on several, part-finished items at once. Varnishing or staining has to be done
when it’s quiet, for example towards the end of the working day or at
weekends, or even outside, to avoid sawdust contamination. Long offcuts are
stacked around the workshop, to be used up on any future occasion when
these lengths or sections are required. However, it is often easier to take a
new length of timber for each job, so the offcuts do tend to build up over
time. Unfortunately, everything I have described is getting worse as we get
busier … our sales are increasing so the system is getting more congested.
The joiners are almost climbing over each other to complete their work.
Unfortunately, despite having more orders, the department has remained
stubbornly unprofitable!
’Whilst analysing in detail the lack of profit, we were horrified to find that,
for the majority of orders, the actual times booked by the joiners exceeded
the estimated times by up to 50 per cent. Sometimes this was clearly
attributable to the inexperience of newly employed joiners. Although fully
trained and qualified, they might lack the experience needed to complete a
complex job in the time an Estimator would expect; but there had been no
feedback of this to the individual. We then put one of these men on doors
only; having overcome his initial reluctance, he has become an enthusiastic
“door expert” and gets closely involved in quotations too, so now he always
does his work within the time estimates! However, the main time losses
were found to be the result of general delays caused by congestion,
interference, double-handling, and rework to rectify in-process damage.
Moreover, we found that a joiner walked an average of nearly 5 km a day,
usually carrying around heavy bits of wood.
‘When I did my operations management course on my MBA, the professor
described the application of cellular manufacturing and JIT. From what I can
remember, the idea seems to be to get better flow, reducing the times and
distances in the process, and thus achieving quicker throughput times. That
is just what we needed, but these concepts were explained in the context of
high-volume, repetitive production of bicycles, whereas all the products we
make are one-offs. However, although we do make a lot of different
staircases, they all use roughly the same process steps:
1 Cutting timber to width and length
2 Sanding
3 Machining
4 Tenoning
5 Manual assembly (glue and wedges)
‘We have a lot of unused factory floor space, so it would be relatively easy
to set up a self-contained staircase cell. There is a huge demand for
specially-made stairs in this region, but also a lot of competing small joinery
businesses with low overheads, which can beat us on price and lead-time. So
we go to a lot of trouble quoting for stairs, but only win about 20 per cent of
the business. If we could get the cell idea to work, we should be more
competitive on price and delivery, hence winning more orders. At least that
is the theory. I know we will need a lot more volume to justify establishing
the cell, so it’s really a case of whether to construct a cell in anticipation of
higher demand, or to try to win more business first. To do the latter, we
would have to reduce our selling prices and lead-times, and then allocate
more joiners to complete the higher volumes of orders until we had enough
work to set up the cell. I personally favour setting up the cell first so that we
can have a “capacity leads demand” strategy.’
Questions
1. To what extent could (or should) Dean expect to apply the philosophies
and techniques of JIT to the running of the staircase cell?
(2.5 MM)
2. What are likely to be the main categories of costs and benefits in
establishing the cell? Are there any non-financial benefits which should be
taken into account?
(2.5 MM)
3.How different would the cell work (job design) be to that in the main
Joinery Department?
(2.5 MM)
4. What risks are associated with Dean’s proposal?
(2.5 MM)
Answers
1. Answer2. Answer3. Answer4. Answer-
Chapter 1:
Introducton to Operatons
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Chapter 1 Learning
Objectives
•LO 1.1 Defie operatois aid supply chaii maiagemeit.
•LO 1.2 Review the role of operatois ii the frm aid the ecoiomy.
•LO 1.3 Describe the fve maii decisiois made by operatois aid supply chaii
maiagers.
•LO 1.4 Explaii the iature of cross-fuictoial decisioi makiig with operatois.
•LO 1.5 Describe typical iiputs aid outputs of ai operatois traisformatoi
system.
•LO 1.6 Aialyze treids ii operatois aid supply chaii maiagemeit.
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1-2
Defnition of Operations
Management
Operations management
focuses on decisions for the
internal production of the
firm’s products or services.
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1-3
A Typical Supply Chain
(Figure 1.1)
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1-4
Operations and Supply Chain
Management
Deals with the sourcing,
production, and distribution of the
product or service along with
managing the relationships with
supply chain partners.
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1-5
Importance of
Operations and Supply
Chain
Providing the
products and
services that we
use and enjoy
Sustaining our
way of life while
working to
protect the planet
Constantly
improving both
productivity and
innovation
Creating revenue
from products &
services to drive
firm profitability
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1-6
Role of Operations in the
Economy
Gross Domestic Product (GDP) – monetary value of all goods
and services produced in a country.
Productivity – value of goods/services output, relative to input.
Productivity =
output
capital + labor
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1-7
Productivity Example
A retail (quick) clinic has the following output (revenue) and labor expenses.
Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)
Output (revenue) $thousands
Labor $thousands
$280
Year 1
Year 2
$842
$292
$883
4%
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Annual
Inflation
2%
1-8
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1-9
Productivity Example Solution
A retail (quick) clinic has the following output (revenue) and labor expenses.
Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)
Productivity year 1 = Output year 1 = 842 = 3.01
Labor year 1
280
Productivity year 2 = Output year 2 = 883(.98) = 3.09
Labor year 2
292(.96)
Change in productivity = 3.09 = 1.027 which is a 2.7% increase
3.01
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1-10
Why Study Operations
Management?
Challeigiig aid iiterestig career
opportuiites – domestcc iiteriatoial
Cross-fuictoial iature of decisiois
– what every major ieeds to kiow
Priiciples of process thiikiig cai be
applied across the orgaiizatoi
ammentorp/123RF
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1-11
Careers in
Operations and Supply Chain
Management
Supply Chain Analyst
Supply Chain Analytics
Plant Lead on Sustainability
Sourcing Specialist
Global Sourcing Analyst
Transportation Planner
Risk Consultant
NetPics/Alamy Stock Photo
Customs Specialist
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1-12
3 Aspects of
Operations and Supply Chain
Management
Decisions:
The operatois maiager must decide:
• Processc qualityc capacityc iiveitoryc aid supply chaii
Functon:
Major fuictoial areas ii orgaiizatois:
• Operatoisc marketigc fiaice
Process:
Plaiiiig aid coitrolliig the traisformatoi process aid its iiterfaces
(iiterial/exterial)
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1-13
Let’s Manage Operations
at Pizza USA!
Steve Mason/Getty Images
Managing operations
is about making decisions.
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1-14
Major Decisions at Pizza
USA
Process
◦ How should we produce pizzas?
Quality
◦ How do we meet quality staidards aid eisure a good customer experieice?
Capacity
◦ How much output do we ieed at various tmes?
Iiveitory
◦ Which iigredieitsc whei & how much?
Supply Chaii
◦ How to source iiputs aid maiage logistcs?
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1-15
Framework for Operations
Decisions (Figure 1.2)
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1-16
Cross-Functional Decision
Making
Operatons is critcal in every frm.
Marketig = create demaid
Operatois = produce aid distribute goods aid services
Fiiaice = acquire aid allocate capital
Supportig fuictois: humai resourcesc iiformatoi systemsc accouitig
Cross-fuictoial decisioi makiig – see Table 1.2
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1-17
Operations as a Process
Inputs
Transformation
(Conversion)
Process
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Outputs
1-18
Operations as a Process
(Figure 1.3)
Energy
Materials
Labor
Capital
Transformation
(Conversion)
Process
Goods or
Services
Information
Feedback information for
control of process inputs
and process technology
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1-19
Transformation Process
Examples (Table 1.3)
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1-20
Trends in
Operations and Supply Chain
Management
▪ Sustaiiability – triple botom liie
▪ Services
▪ Digital Techiologies
▪ Iitegratoi of Decisiois Iiterially aid Exterially
▪ Globalizatoi of Operatois aid the Supply Chaii
StreetVJ/Shutterstock
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1-21
Chapter 1 Summary
•LO 1.1 Defie operatois aid supply chaii maiagemeit.
•LO 1.2 Review the role of operatois ii the frm aid the ecoiomy.
•LO 1.3 Describe the fve maii decisiois made by operatois aid supply chaii
maiagers.
•LO 1.4 Explaii the iature of cross-fuictoial decisioi makiig with operatois.
•LO 1.5 Describe typical iiputs aid outputs of ai operatois traisformatoi
system.
•LO 1.6 Aialyze treids ii operatois aid supply chaii maiagemeit.
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ALL RIGHTS RESERVED.
1-22
Questions for Discussion
•What do you hope to leari ii this course?
•Review the operatois aid supply chaii treids oi slide 1-20. Which of
these is most iiterestig to you aid why?
•What productoi systems have you seei ii persoi? How do they
produce the iiteided product or service?
•Describe a traisformatoi process that you receitly experieiced. Thiik
about a medical or deital cliiic visitc or a restaurait visit.
•Why are global factors importait ii operatois aid supply chaii?
•How is operatois aid supply chaii related to eiviroimeital
respoisibility?
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1-23
SEVENTH EDITION
Operations Management
in the Supply Chain
DECISIONS AND CASES
Roger Schroeder | Susan Meyer Goldstein
Operations
Management in the
Supply Chain
Decisions and Cases
The McGraw-Hill Education Series Operations and Decision Sciences
OPERATIONS MANAGEMENT
Beckman and Rosenfield
Operations Strategy: Competing in the
21st Century
First Edition
Benton
Purchasing and Supply Chain
Management
Third Edition
Bowersox, Closs, and Cooper
Supply Chain Logistics Management
Fifth Edition
Brown and Hyer
Managing Projects: A Team-Based
Approach
Second Edition
Burt, Petcavage, and Pinkerton
Supply Management
Ninth Edition
Cachon and Terwiesch
Operations Management
First Edition
Cachon and Terwiesch
Matching Supply with Demand: An
Introduction to Operations Management
Fourth Edition
Finch
Interactive Models for Operations and
Supply Chain Management
First Edition
Fitzsimmons and Fitzsimmons
Service Management: Operations,
Strategy, Information Technology
Eighth Edition
Gehrlein
Operations Management Cases
First Edition
Harrison and Samson
Technology Management
First Edition
Hayen
SAP R/3 Enterprise Software: An
Introduction
First Edition
Hill
Manufacturing Strategy:
Text & Cases
Third Edition
Hopp
Supply Chain Science
First Edition
Hopp and Spearman
Factory Physics
Third Edition
Simchi-Levi, Kaminsky,
and Simchi-Levi
Designing and Managing the
Supply Chain: Concepts, Strategies,
Case Studies
Third Edition
Sterman
Business Dynamics: Systems
Thinking and Modeling for a
Complex World
First Edition
Stevenson
Operations Management
Twelfth Edition
Jacobs, Berry, Whybark, and Vollmann
Manufacturing Planning & Control for
Supply Chain Management
Sixth Edition
Swink, Melnyk, Cooper,
and Hartley
Managing Operations Across
the Supply Chain
Third Edition
Jacobs and Chase
Operations and Supply Chain
Management
Fourteenth Edition
Thomke
Managing Product and Service
Development: Text and Cases
First Edition
Jacobs and Chase
Operations and Supply Chain
Management: The Core
Fourth Edition
Ulrich and Eppinger
Product Design and
Development
Sixth Edition
Jacobs and Whybark
Why ERP?
First Edition
Zipkin
Foundations of Inventory
Management
First Edition
Johnson, Leenders, and Flynn
Purchasing and Supply
Management
Fifteenth Edition
QUANTITATIVE METHODS AND
MANAGEMENT SCIENCE
Larson and Gray
Project Management: The Managerial
Process
Sixth Edition
Hillier and Hillier
Introduction to Management Science: A
Modeling and Case Studies Approach
with Spreadsheets
Fifth Edition
Schroeder and Goldstein
Operations Management in the Supply
Chain: Decisions and Cases
Seventh Edition
Stevenson and Ozgur
Introduction to Management Science
with Spreadsheets
First Edition
Operations
Management in the
Supply Chain
Decisions and Cases
Seventh Edition
Roger G. Schroeder
Susan Meyer Goldstein
Carlson School of Management
University of Minnesota
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISION AND CASES, SEVENTH EDTION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2018 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2011,
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Library of Congress Cataloging-in-Publication Data
Schroeder, Roger G., author. | Goldstein, Susan Meyer, author. |
Operations management in the supply chain : decisions and cases /
Roger G. Schroeder, Susan Meyer Goldstein, Carlson School of Management,
University of Minnesota.
Operations management
Seventh edition. | Dubuque : McGraw-Hill Education, 2016.
LCCN 2016043564 | ISBN 9780077835439 (alk. paper) |
ISBN 0077835433 (alk. paper)
LCSH: Production management. | Production management—Case studies. |
Decision making.
LCC TS155 .S334 2016 | DDC 658.5—dc23 LC record available at https://lccn.loc.gov/2016043564
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not
guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
To our families, whose encouragement and love we appreciate
—Roger G. Schroeder
—Susan Meyer Goldstein
About the Authors
Roger G. Schroeder
is the Frank A. Donaldson Chair in Operations Management Emeritus at the Curtis L.
Carlson School of Management, University of Minnesota. He received a B.S. degree in
Industrial Engineering with high distinction and a MSIE degree from the University of
Minnesota, and a Ph.D. from Northwestern University. He held positions in the Carlson
School of Management as Director of the Ph.D. program, Chair of the Operations and
Management Science Department, and Co-Director of the Joseph M. Juran Center for
Leadership in Quality. Professor Schroeder has obtained research grants from the National
Science Foundation, the Ford Foundation, and the American Production and Inventory
Control Society. His research is in the areas of quality management, operations strategy,
and high-performance manufacturing, and he is among the most widely published and
cited researchers in the field of operations management. He has been selected as a member
of the University of Minnesota Academy of Distinguished Teachers and is a recipient of
the Morse Award for outstanding teaching. Professor Schroeder received the lifetime
achievement award in operations management from the Academy of Management, and he
is a Fellow of the Decision Sciences Institute and a Fellow of the Production and Operations Management Society. Professor Schroeder has consulted widely with numerous organizations, including 3M, Honeywell, General Mills, Motorola, Golden Valley Foods, and
Prudential Life Insurance Company.
Susan Meyer Goldstein
is Associate Professor in the Supply Chain and Operations Department at the Curtis L.
Carlson School of Management, University of Minnesota. She earned a B.S. degree in
Genetics and Cell Biology and an M.B.A. at the University of Minnesota and worked in the
health care industry for several years. She later obtained a Ph.D. in operations management
from Fisher College of Business at The Ohio State University. She has served on the
­faculty at the University of Minnesota since 1998 and was a Visiting Professor at the Olin
Business School at Washington University in St. Louis for two years. Her current research
investigates the link between service process design and process performance, and she is
currently working with a Minnesota hospital that has been achieving one of the lowest
heart attack mortality rates in the United States. She is also interested in issues related to
aging service workers, operations strategy, and service quality. Her research has been published in Decision Sciences, Journal of Operations Management, and Production and
­Operations Management, among others. She is Associate Editor at Decision Science
­Journal, Quality Management Journal, and Service Industries Journal and serves on the
editorial boards of many operations and service journals. She is the recipient of several
research awards and research grants, and received the 2011 Carlson School of Management
Teaching Award.
vi
Preface
FEATURES
Operations management is an exciting and vital field in today’s complex business world.
Therefore, students in both MBA and undergraduate courses have an urgent need to understand operations—an essential function in every business.
This textbook on operations management in the supply chain emphasizes decision making in operations with a supply chain orientation. The text provides materials of interest to
general business students and operations and supply chain management majors. By stressing cross-functional decision making, the text provides a unique and current business perspective for all students. This is the first text to incorporate cross-functional decision
making in every chapter.
A unique decision framework organizes the material by grouping decisions into five
major categories: process, quality, capacity, inventory, and supply chain. This framework is
intended to make it easy for students to understand the decision role and responsibilities of
operations and supply chain management in relation to functions such as marketing and
finance. See the illustration below. The text also provides a balanced treatment of both
service and manufacturing firms. We continue to emphasize operations in the supply chain
with new chapters on sourcing and logistics.
The most current knowledge is incorporated, including global operations, supply chain
management, e-operations, service blueprinting, competency-based strategy, Six Sigma, lean
systems, 3D printing, sustainability, supply chain risk, and mass customization. Complete
coverage is also provided on traditional topics, including process design, service systems,
quality management, ERP, inventory control, and scheduling.
While covering the concepts of operations and supply chain management in 18 chapters,
the book also provides 18 case studies. The cases are intended to strengthen problem formulation skills and illustrate the concepts presented in the text. Long and short case studies
are included. The cases are not just large problems or examples; rather, they are substantial
management case studies, including some from the Northwestern, Sheffield, Cranfield,
and The Case Centre collections.
The softcover edition with fewer pages than most introductory books covers all the
essentials students need to know about operations management in the supply chain, leaving
out only superfluous and tangential topics. By limiting the size of the book, we have
condensed the material to the basics. The book is also available for the first time in digital
formats in Connect and LearnSmart versions.
Decision-making
framework for
operations in the
supply chain.
Human
Resources
Suppliers
Supply
Chain
Decisions
Finance
Process
Inventory
Information
Systems
Quality
Marketing
Customers
Capacity
Accounting
vii
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Preface
This book is ideal for regular operations management courses and also case courses and
modular courses. It is particularly useful for those who desire a cross-functional and
­decision-making perspective that reaches across the supply chain. Instructors can easily
supplement the text with their own cases, readings, or course materials as desired.
The Connect Library and Instructor Resources contain 20 Excel templates designed to
assist in solving problems at the end of chapters and the case studies. These resources also
contain technical chapters on linear programming, simulation, transportation method, and
queuing, which can be assigned by the instructor, if desired. The resources have PowerPoint slides, solutions manual, the test bank, and web links to companies cited in the Student Internet Exercises in the text. Access to these web resources can be obtained from
your McGraw-Hill sales representative or directly in the Connect Library.
A number of pedagogical features are contained in this book.
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∙ Operations Leader boxes are included in each chapter to illustrate current practices
being implemented by leading firms.
∙ Each chapter contains at least three Student Internet Exercises. These exercises allow
for extended learning about concepts discussed in the chapter.
∙ Points of cross-functional emphasis are noted in each chapter by a special symbol—a
handshake. This highlights the locations of cross-functional aspects of operations
decisions.
∙ Solved problems are included at the end of quantitative chapters to provide additional examples for students.
∙ Excel spreadsheets are keyed to specific problems at the end of chapters.
KEY CHANGES IN THE SEVENTH EDITION
This book is known for its decision orientation and case studies. We have strengthened the
decision-making framework by addressing new decisions in sourcing, logistics, sustainability, and global supply chains. We also added new cases to address these decisions.
1. Supply Chain Management. This edition added a new section on Supply
Chain. It contains two new chapters on Sourcing and Global Logistics. The Sourcing
chapter contains material on sourcing goals, outsourcing, offshoring, reshoring, supply
base optimization, the purchasing cycle, and scorecard weighting. The Global Logistics chapter contains material on the role of logistics, transportation modes, distribution centers, logistics ­networks, location, third-party logistics, and logistics strategy. In
addition, the Supply Chain Management chapter was moved to this section and updated to add a new section on supply chain risk and another new section on supply
chain sustainability. This edition now has the latest and best supply chain material
available.
2. Sustainability. More emphasis is given to sustainability. It is now covered in the c­ hapters
on The Operations Function, Operations and Supply Chain Strategy, Process Selection, and
Supply Chain Management. A new case study is added on Murphy Warehouse: Sustainable
Logistics.
3. Global. More material is provided on global operations and supply chains. With the
addition of the Sourcing and Global Logistics chapters, global emphasis now moves
­beyond operations to the entire supply chain. New material on outsourcing, offshoring, and
managing global supply chains has been added. New cases on global sourcing, global plant
location, and global logistics are added.
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4. Other Additions. We have added materials on lean Six Sigma, 3D Printing, big
data, analytics, ethics in sourcing, and disaster logistics.
5. Digital Versions. Digital versions of the text in McGraw-Hill’s Connect and
­LearnSmart have been developed. The Connect version provides a complete course management system for the instructor and pdf content for students. It can be used to customize
the course by selecting learning objectives for course coverage, using the test bank for
multiple choice questions, automatic grading for selected quantitative problems, and access
to all instructor support materials. The LearnSmart version provides feedback to students
via multiple choice probes for each learning objective. The student is directed to return to
readings where retention is weak.
6. Cases. Eighteen case studies are provided including cases from The Case Centre,
and Northwestern, Sheffield, and Cranfield Universities. Existing cases have been revis