j j
OPERATIONSjANDjSUPPLYjCHAINjMANAGEMENTj16THjEDITIONjBYjF.jROBERTjJAC
OBS
Chapterj1-22
CHAPTERj1
OPERATIONSjANDjSUPPLYjCHAINjMANAGEMENT
DiscussionjQuestions
1. UsingjExhibitj1.3jasjajmodel,jdescribejthejsource-make-deliver-
returnjrelationshipsjinjthejfollowingjsystems:
a. Anjairline
Source:j Aircraftjmanufacturer,jin-flightjfood,jrepairjparts,jcomputerjsystems
Make:jAircraftjandjflightjcrewjscheduling,jgroundjservicesjprovidedjatjairports,jaircraftjmaintena
ncejandjrepair
Deliver:jOutboundjandjarrivingjpassengerjservice,jbaggagejhandlingjReturn:j
Resolvejanyjpost-servicejissuesjsuchjasjlostjorjdamagedjluggage
b. Anjautomobilejmanufacturer
Source:j Suppliersjofjcomponentsjandjrawjmaterials
Make:j Manufacturingjofjvehiclesjandjcomponentsjorjsubassembliesjtojbejsoldjasjsparejparts
Deliver:jDeliveryjtojandjsalesjfromjdealerships,jdeliveryjofjsparejpartsjtojthejwholesalejsyste
m
Return:j Warrantyjandjrecalljrepairs,jtrade-ins
c. Ajhospital
Source:j Medicaljsupplies,jcleaningjservices,jdisposaljservices,jfoodjservices,jqualifiedjperson
nel
Make:j Inpatientjrooms,joutpatientjclinics,jemergencyjroom,joperatingjrooms
Deliver:jSchedulingjpatients,jprovidingjtreatment,jambulancejservice,jfamilyjcounselingjRetu
rn:jBillingjerrors,jfollowjupjvisits
d. Anjinsurancejcompany
Source:j Suppliesjneededjforjthejoffice,junderwriters,jlegaljauthorityjtojoperate
1-1
, Make:j Establishjpolicyjguidelinesjandjpricing,jfieldjagent/representativejandjfacilityjnetwor
k,jdevelopjInternetjservicejcapabilities,jestablishjpreferredjvehiclejrepairjservicejnetwork
Deliver:jMeetjwithjandjadvisejclients,jwritejpolicies,jprocessjandjpayjclaimsjReturn:
j refundjofjoverpayments
2. Definejthejservicejpackagejofjyourjcollegejorjuniversity.j Whatjisjitsjstrongestjelement?j Whatjisjitsj
weakestjone?
Thejcategoriesjwithjexamplesjare:
Supportingjfacilityj-
jlocation,jbuildings,jlabs,jparkingjFacilitatingjgoodsj–
jclassjschedules,jcomputers,jbooks,jchalk
Explicitjservicesj–
jclassesjwithjqualifiedjinstructors,jplacementjofficesjImplicitjservicesj–
jstatusjandjreputationj(e.g.,jIvyjLeaguejschools)
AtjIndianajUniversityjandjthejUniversityjofjSouthernjCalifornia,jamongjtheirjstrongestjelementsj
arejtheirjbusinessjschoolsjandjtheirjOperationsjManagementjprogramsj(ofjcourse).jBothjalsojhav
ejveryjdedicatedjalumnijnetworks.j AjweakjelementjofjIndianajUniversityjisjitsjweakjfootballjprog
ram;jforjUSC,jweakjelementsjarejon-campusjparkingjandjhousing.
3. Whatjservicejindustryjhasjimpressedjyoujthejmostjwithjitsjinnovativeness?
Ourjvotejgoesjtojcruisejlinesjwhichjhavejintroducedjsuchjonboardjinnovationsjasjwavejmachinesj
forjbellyjboardingjandjrockjclimbingjwalls,jasjwelljasjalljsortsjofjotherjamenitiesjtojkeepjcruisersjin
volved.j Thejindustryjisjdoingjrecordjbusinessjasjwell.
Somejofjthej standoutjcompaniesjinj lessjinnovativejindustriesjarejBankjofjAmericaj(hasjajformali
zedjresearchjprogramjtojtryjoutjnewjcustomerjservices/amenitiesjsuchjasjvideojscreensjinjnextjtoj
tellerjlines),j Intuitj(e.g.,jputtingjQuickenjmoneyjmanagementjsoftwarejonline),jIkea,jJetBluejAirli
nes,jandjProgressivejInsurancej(discussedjlaterjinjthejbook).
4. Whatjisjproduct-servicejbundlingjandjwhatjarejthejbenefitsjtojcustomers?
Product-servicejbundlingjisjaddingjValue-
addedjservicesjtojajfirm’sjproductjofferingsjtojcreatejmorejvaluejforjthejcustomer.j Thisjprovidesjb
enefitsjinjtwojareas.j First,jthisjdifferentiatesjthejorganizationjfromjthejcompetition.j Secondly,jt
hesejservicesjtiejcustomersjtojthejorganizationjinjajpositivejway.jAlternatively,jbundlingjcanjalsoji
nvolvejaddingjproductsjtojajservice,jforjexample,jaddingjthejsalejofjconveniencejitemsjandjsnack
sjatjajhotel.
5. Whatjisjthejdifferencejbetweenjajservicejandjajgood?
Ajservicejisjanjintangiblejprocessj(youjcan’tjholdjitjinjyourjhands),jwhilejajgoodjisjthejphysicaljoutp
utjofjajprocess.
6. Lookjatjthejjobjpostingsjatjhttp://www.indeed.comjandjevaluatejthejopportunitiesjforjanjO
SMjmajorjwithjseveraljyearsjofjexperience.
1-2
, Therejarejpagesjandjpagesjofjthesejwhenjyoujdojajsearchjonjoperationsjsupplyjchainjmanageme
nt.j Herejarejsomejexamples:
GlobaljActivejIngredientjSupplyjPlannerjF
MCjCorporation
USj-jPAj-jPhiladelphia
ThisjisjyourjopportunityjtojjoinjthejAgriculturaljProductsjGroupj(APG)jandjworkjonjthejteamjrespo
nsiblejforjglobaljactivejingredientjplanning.jYou'lljservejasjajcentraljSupplyjPlannerjworkingjinjta
ndemj...
PurchasingjManagerj(Buyer)
TexasjDowjEmployeesjCreditjUnionj(TDECU)
USj-jTXj-jLakejJacksonj-jNearestjMetrojareaj-jSouthjHouston
EducationjAccreditedjuniversityjdegreejinjBusinessjorjMarketingjwithjcertificationjinjPurchasing,j
InventoryjManagement,jorjLogistics.jAccreditedjPurchasingjPractitionerj(APP)jorjCertifiedjPurcha
singj...
ProductjLinejManagerjCi
ntasjCorporation
USj-jOHj-jMason
HighjSchooljdiplomajorjGEDjrequired,j4jyearjdegreejpreferredjKnowledgejofjandjexperiencejusin
gjInternetjandjMicrosoftjOfficej(Word,jExcel,jPowerPoint,jandjEmail)j3jyearsjmanagementjexperi
encejpreferredj...
DirectorjPurchasingj
LegendaryjBakingjU
Sj-jCOj-jDenver
CERTIFICATIONSj&jLICENSESj•jValidjDriver’sjLicensejandjcarjinsurance.j•jCertifiedjPurchasingjMa
nagerjcertificationj(C.P.M.)jpreferred.j•jCertifiedjFoodjPurchasingjManagerj...
ProcessjImprovementjManagerjARAMAR
KjCorporation
USj-jTXj-jHouston
Bachelor'sjDegreejrequired.jTechnicaljEngineeringjdisciplinejwithinjIndustrial,jMechanical,jC
hemical,jorjFoodjOperationsjstronglyjpreferred.j•jMinimumj5jyearsjLeanjmanufacturingjexp
eriencejcoupledj...
7. Recentjoutsourcingjofjpartsjandjservicesjthatjhadjpreviouslyjbeenjproducedjinternallyjisja
ddressedjbyjwhichjcurrentjissuejfacingjoperationsjandjsupplyjmanagementjtoday?
Thejcoordinationjofjrelationshipsjbetweenjmutuallyjsupportivejbutjseparatejorganizations.
8. WhatjfactorsjaccountjforjthejresurgencejofjinterestjinjOSCMjtoday?
Withjcompaniesjfacingjcompetitionjonjajglobaljscale,jandjever-
advancingjmanufacturingjandjinformationjtechnologies,jfirmsjrealizejthejcompetitivejadvantag
ejtheirjOSCMjfunctionsjcan
1-3
, providejifjproperlyjmanaged.j Manyjhavejfoundjthatjthejsamejoldjwayjofjdoingjbusinessjleavesj
themjunablejtojcompetejsuccessfully.
9. AsjthejfieldjofjOSCMjhasjadvanced,jnewjconceptsjhavejbeenjappliedjtojhelpjcompaniesjcompe
tejinjajnumberjofjways,jincludingjthejadvertisementjofjthejfirm’sjproductsjorjservices.jOnejrece
ntjconceptjtojgainjthejattentionjofjcompaniesjisjpromotingjsustainability.j Discussjhowjyoujhav
ejseenjthejideajofjsustainabilityjusedjbyjcompaniesjtojadvertisejtheirjgoodsjorjservices.
Therejofjcoursejwilljbejajnumberjofjexamplesjthatjstudentsjwilljbringjup,jthoughjtheyjmayjneedjs
omejproddingjtojjogjtheirjmemories.j SomejexamplesjtojstartjwithjmightjbejIBM’sj“I’mjanjIBMer”j
campaignjwherejtheyjadvertisejhowjtheyjarej“buildingjajsmarterjplanet.”j Bottledjwaterjmanufa
cturersjhavejreducedjthejamountjofjplasticjusedjinjmanyjofjtheirjproducts,jthusjsavingjproduction
jandjdistributionjcosts,jbutjalsojallowingjthemjtojadvertisejhowjthejnewjbottlesjarejbetterjforjthej
environmentjbecausejtheyjresultjinjlessjwaste.
10. Somejpeoplejtendjtojusejthejtermsjeffectivenessjandjefficiencyjinterchangeably,jthoughjwe’
vejseenjtheyjarejdifferentjconcepts.j Butjisjtherejanyjrelationshipjatjalljbetweenjthem?jCanjaj
firmjbejeffectivejbutjinefficient?j Veryjefficientjbutjessentiallyjineffective?j Both?jNeither?
Firmsjcanjbejanywherejonjthesejtwojdimensions.j Itjisjpossiblejforjajfirmjtojbejthejbestjatjwhatjthe
yjdojinjservingjtheirjmarket,jbutjbejveryjwastefuljinjdoingjso.j Alternatively,jajfirmjcouldjsqueezeje
veryjlastjdollarjoutjofjtheirjprocessesjbutjfailjtojdeliverjwhatjthejmarketjexpectsjandjdesires.j Ofjc
ourse,jthejbestjfirmsjwilljprovidejthejgoodsjandjservicesjthatjthejmarketjdesires,jexactlyjasjthejma
rketjdesires,jandjdojsojatjajminimumjcost.j Firmsjthatjarejbothjinefficientjandjineffectivejdojnotjsu
rvivejforjlongjinjanyjmarket.
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