SUBJECT INDEX 511Crashing, 145–149Critical customer requirement (CCR), 308Critical path, 138Critical Path Method (CPM)overview, 138–145with three activity time estimates,142–145Cross-docking, 458CSCMP (Council of Supply ChainManagement Professionals), 15Cumulative average time, 115Current issues in OSCM, 19Customer contact, 204Customer order decoupling point,168–169, 350Customerslean, 402proximity to, 458services and interaction with, 8service system arrivals by, 213support personnel management, 19virtual service and, 206Customer value, 397–398Cut-and-try approach, 246–248Cycle counting, 376–377Cyclical factors, 62DDana Corporation, 325Days inventory, 11Days-of-supply, 171Days sales outstanding, 11Decisionsfacility location (see Facility locationdecisions)logistics, 456–458Decision trees, 101–104Decomposition of a time series, 61–64Decoupling points, 47, 168–169, 350Defects per million opportunities(DPMO), 307Delivery, 7, 29Dell Computers, 99, 169, 190, 383Delphi method, 71Demandcompetitive dimension of, 29–30components of, 48–49cyclical influence on, 48forecasting, 270–271, 275–276independent versus dependent,354–355volatility of, 105Dependent demand, 354–355Design. See also Production designassembly-line, 178–183service-system, 205–207warehouse, 458Design of experiments (DOE), 312Design quality, 28–29, 301–302DHL, 456, 469Dimensions of quality, 302Disney, 298–299, 458Disneyland, 206, 413Distribution scheduling, 482Divisibility, 482DMAIC (Define, Measure, Analyze,Improve, and Control), 308DOE (design of experiments), 312DPMO (defects per million opportunities),307DuPont, 138Dynamic programming, 482EEarly start schedule, 142Earned value management (EVM),134–136eBay, 207, 393Economic order quantity (EOQ),281–283, 359Economic prosperity, 26Economies of scale, 95–96Economies of scope, 97Effectiveness, 9Efficiency, 9, 179, 400Efficiency ratios, 12–13, 444–445Efficient supply chains, 434, 434eElectronic commerce, 18Eli Lilly, 432Employeesflexible workers, 97workforce levels, 242, 245Engineer-to-order, 169, 170, 268eEnterprise resource planning (ERP), 266Environmental regulations, 460Environmental stewardship, 26–27EOQ (economic order quantity),281–283, 359E-procurement, 401ERP (enterprise resource planning), 266Errors in forecasting, 64–67European Union, 27EVM (earned value management),134–136Evolving supply process, 433–434Expected completion time, 144Explicit objective, 482Explicit services, 204Exponential distribution, 213–214Exponential smoothing, 53–57Extent of customer contact, 204External benchmarking, 307External failure costs, 304FFacebook, 207Facilitating goods, 203Facility location decisionsanalytics exercise, 478–480centroid method, 464–466criteria for, 458–460factor-rating systems, 460–461plant location methods, 460–468service facilities, 104–105, 466–468transportation method, 461–464Factor-rating systems, 460–461Fail-safing, 208–210Failure mode and effect analysis (FMEA),309, 312eFederal Express (FedEx), 414, 436,454–456, 469Financial ratios, 12–13Finished products, 352Finite population, 213First Bank/Dallas, 413Fishbone diagrams, 309, 311eFIT (forecast including trend), 55–56Fitness for use, 302Fixed-order quantity model (Q-model),351, 359–363with safety stock, 364–367Fixed-time period model (P-model), 351,359–360, 368–369Flexibility, 29, 96–97Flexible line layouts, 182–183Flextronics, 435Flowcharts, 309, 310eFlow time, 171FMEA (failure mode and effect analysis),309, 312eFocused factory, 96, 97eFord Motor Company, 11, 12–14, 12e,13e, 96, 306Forecast errors, 64Forecast including trend (FIT), 55–56Forecastinganalytics exercise, 89–90causal relationships, 47, 57, 68–69CPFR, 71–73demand and MRP, 275–276demand components and, 48–49errors in, 64–67introduction, 44–45multiple regression analysis, 69in operations and supply chainmanagement, 46–47qualitative techniques, 47quantitative techniques, 47simulation models, 47strategic, 46tactical, 46time series analysis (see Time seriesanalysis)trend models, 48–50, 55–56Forward buying, 431Free trade zone, 459Freeze window, 408Fujitsu, 376, 437Functional products, 432–433Functional project, 129–130
512 SUBJECT INDEXGGantt charts, 132–133, 150General Electric (GE), 307General Motors (GM), 12–14, 12e, 306,432Genius Electronic Optical, 264Goal programming, 482Goods-services continuum, 8–9Goods versus services, 7–8Google, 24–25Government barriers, 459Graphical linear programming, 483–485Green sourcing, 438–441Gross requirements, 274–275, 279Group technology (GT), 406HHBO, 207Heijunka, 408Heterogeneity, 8Hewlett-Packard, 432High degree of customer contact, 204Historical analogy, 70–71Historical development of OSCM,16–18Hitachi, 437Holding costs, 353, 412eHomogeneity, 482Honda, 14, 62, 96, 125Honeywell, 413Host communities, 460Housekeeping, 413Hub-and-spoke systems, 458IIBM, 9, 432ICL, 307IKEA, 31–32Immediate predecessors, 139Impatient arrival, 216Implicit services, 204Independent demand, 354–355Indiana University, 392–393, 394eIndividual learning, 114Industry learning, 115Infinite population, 213Infinite potential length, 216Information systems, 150–151Infrastructure, 459Innovative products, 433Institute for Supply Management (ISM), 15Intangibles, 7Integer programming, 482Intel, 437Intermediate-range planning, 241Internal failure costs, 304International Automotive Task Force, 306International logistics, 456International Organization forStandardization (ISO), 17, 304International Space Station, 167In-transit inventory, 352Inventorybuffer inventory, 171, 247days inventory, 11definition, 352in-transit inventory, 352total average value, 171vendor-managed inventory, 430–431work-in-process inventory, 352Inventory management. See alsoInventory systemsABC classification, 374–375accuracy, 373–377aggregate production planning for,246–248, 444–445analytics exercise, 392–394backflushing, 408costs of, 353–354customer order decoupling point and,168–169, 350cycle counting, 376–377efficiency ratios for, 444–445independent versus dependentdemand, 354–355introduction, 350–355inventory turn calculations, 370–371linear programming applications for,482Little’s law, 171–172planning, 373–377production process mapping and,170–173purposes of, 352–353safety stock levels, 247, 363–364Inventory on-hand, 242Inventory position, 360–361Inventory records, 273–274, 277Inventory systems. See also Inventorymanagementdefinition and introduction, 352, 355fixed-order quantity model, 359–363fixed-time period model, 368–369models, 351multiperiod, 359–360price-break model, 371–373single-period model, 355–358Inventory turn, 171, 370–371Inventory turnover, 444Inventory turnover ratio, 12–13, 444ISM (Institute for Supply Management), 15ISO 9000, 17, 304–306ISO 14000, 304–306ISO 26000, 306ISO (International Organization forStandardization), 17, 304JJaguar, 96Japanese concepts. See also Just-intime(JIT); Six Sigmacontinuous improvement, 404inventory control, 409–412quality management, 300service processes, 209smoothing, 408Toyota production system, 399–400JC Company, 246–247Just Born, Inc., 313Just-in-time (JIT)concept development, 397overview, 17process, 399, 407KKaizen, 404Kanban, 409Kanban pull system, 409–411Kawasaki, 409LL. L. Bean, 4, 307Labor quality, 459Land’s End, 4Late start schedule, 142LCL (lower process control limit), 321Lead time, 168Lean concepts, 406–413Lean customers, 402Lean logistics, 402Lean manufacturing, 17, 169, 401Lean procurement, 401Lean production, 397–400Lean suppliers, 401Lean supply chainscase studies, 424–426design principles of, 404–413freeze windows, 408introduction, 397–399kanban control systems, 409–412lean schedules, 407–412production design, 400–402services and, 401–402, 413–415systems approach to, 412–413uniform plant loading, 408value stream mapping, 402–404Lean Thinking (Womack and Jones), 413Lean warehousing, 401Learning curvesdefinition and introduction, 114–115logarithmic analysis, 116–120managerial considerations, 121tables of unit values, 119e–120eLeast squares regression analysis,57–59Least total cost (LTC), 283Least unit cost (LUC), 283–284, 285eLevel schedule, 407–408Limited line capacity, 216Limited resources, 482Linearity, 482
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