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I l I l by F. Robert Jacobs and Richard Chase
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Chapters 1 - 22 | Complete
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, TABLEOFCONTENTS lI lI
Chapter1: Introduction Ill IlIl
Chapter 2: Strategy IlIl IlIl
Chapter 3: Design of Products and Services
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I l I l Chapter 4: Projects IlIl IlIl
Chapter 5: Strategic Capacity Management
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I l I l Chapter 6: Learning Curves IlIl IlIl IlIl
Chapter7:Manufacturing Processes Il Il IlIl I l I l Chapter
IlIl 8: Facility Layout
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Chapter9: Service Processes Il Il IlI
Chapter 10: Waiting Line Analysis and Simulation
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I l I l Chapter 11: Process Design and Analysis IlIl IlIl IlIl IlIl IlIl
Chapter 12: Quality Management Chapter IlIl IlIl IlIl I l I l
IlIl 13: Statistical Quality Control
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IlIl14: Lean Supply ChainsIlIl IlIl IlIl
Chapter 15: Logistics and Distribution Management
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I l I l Chapter 16: Global Sourcing and Procurement IlIl IlIl IlIl IlIl IlIl
I l I l Chapter 17: The Internet of Things and ERP IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl I l I l Chapter
18: Forecasting
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Chapter 19: Sales and Operations Planning
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I l I l Chapter 20: Inventory Management IlIl IlIl IlIl
Chapter21:Material Requirements Planning
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22: Workcenter Scheduling
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,Chapter 01 IlIl
Efficiency meansdoingthe right thingsto create the most value for the company.
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Efficiency meansdoing something at the lowestpossible cost.
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1. Effectiveness meansdoing the right things to create the most value for the company. IlIl Il IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl
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Effectiveness meansdoing the rightthings to create the most value for the company.
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AACSB: Analytical Thinking IlIl IlIl
Blooms: Remember IlIl
Difficulty: 1 I l I l IlIl
Easy IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm.
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Topic: Efficiency, Effectiveness,and Value
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2. Adoctor completes a surgical procedure ona patient without error.The patient dies anyway. In operations management terms, we
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I could refer to this doctor as being efficient but not effective.
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Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
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I doctor performed the surgery without error. Because the patient died, no value was created.
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AACSB: Analytical Thinking IlIl IlIl
Blooms: Analyze IlIl
Difficulty: 2 I l I l IlIl
Medium IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm.
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Topic: Efficiency, Effectiveness, and Value
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3. A worker canbe efficient without being effective.
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Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
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I These are different things.
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AACSB: Analytical Thinking IlIl Il Il
Blooms: I l I l
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Difficulty: 2 I l I l IlIl
Medium IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm.
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Topic: Efficiency, Effectiveness, and Value
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, 4. Aprocess canbe effective without being efficient.
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Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
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I customer service counter at a local store orbank means using the fewest number ofclerks possible at the counter. Being effective,
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I though, means minimizing the amount of time customers need to wait in line.
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AACSB: Analytical Thinking IlIl Il Il
Blooms: I l I l
Understand Il Il
Difficulty: 2 I l I l IlIl
Medium IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm.
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Topic: Efficiency, Effectiveness, and Value I l I l IlIl IlIl Ill IlIl
5. Operations and supplychain management is defined as the design, operation, and improvement ofthe systems that create and
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I deliver the firm's primaryproducts and services.
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Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver
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I the firm's primaryproducts and services.
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AACSB: Analytical Thinking IlIl IlIl
Blooms: Remember IlIl
Difficulty: 1 I l I l IlIl
Easy IlIl
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
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Topic:What Is Operationsand Supply Chain Management? Il IlIl IlIl Il IlIl IlIl IlIl
6. The term"value" refers to the relationship between quality and the price paid bythe consumer.
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Related to efficiency and effectiveness is the concept of value, which canbe metaphoricallydefined as quality divided by price.
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AACSB: Analytical Thinking IlIl IlIl
Blooms: Remember IlIl
Difficulty: 1 I l I l IlIl
Easy IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm. IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl
Topic: Efficiency, Effectiveness, and Value I l I l IlIl IlIl IlI IlIl
7. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
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I the two goals.
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Often maximizing effectiveness and efficiencyatthe same time creates conflict between the two goals.
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AACSB: Analytical Thinking IlIl IlIl
Blooms: Analyze IlIl
Difficulty: 1 I l I l IlIl
Easy IlIl
Learning Objective: 01-04 Evaluate the efficiency of a firm. IlIl IlIl IlIl IlIl IlIl IlIl IlIl IlIl
Topic: Efficiency, Effectiveness, and Value I l I l IlIl IlIl IlIl IlIl