CONTENTS
Part 1 Introduction1 / Introduction to Operations Management...... 1
2 / Competitiveness, Strategy, and Productivity...... 7
Part II Forecasting
3 / Forecasting...... 14
Part III System Design
4 / Product and Service Design...... 47
4S Reliability...... 53
5 / Capacity Planning...... 59
5S Decision Theory...... 66
6 / Process Selection and Facility Layout...... 77
6S Linear Programming...... 102
7 / Design of Work Systems...... 121
7S Learning Curves...... 127
8 / Location Planning and Analysis...... 143
8S The Transportation Model...... 162
Part IV Quality
9 / Introduction to Quality...... 170
10 / Quality Control...... 175
10S Acceptance Sampling...... 190
11 / TQM and Quality Tools...... 195
Part V Supply Chain Management
12 / Supply Chain Management...... 206
12S Purchasing and Supplier Management...... 211
13 / Inventory Management...... 215
14 / Aggregate Planning...... 239
15 / MRP and ERP...... 259
16 / Just-In-Time Systems...... 291
16S Maintenance...... 295
17 / Scheduling...... 298
Part VI Project Management
18 / Project Management...... 313
Part VII Waiting Lines and Simulation
19 / Waiting Lines...... 332
19S Simulation...... 343
Preface
This Instructor's Manual accompanies Operations Management, 2nd Canadian edition, by William J. Stevenson and Mehran Hojati. The Instructor's Manual has two main parts—References, and Teaching Notes and Solutions.
References
Excel Templates.
This part provides a brief description of how to use the Excel templates and contains chapter-by-chapter listings of Excel templates.
Video Guide.
This section includes brief summaries of the McGraw-Hill/Irwin OM video series. These videotape segments consist of plant tours and "real world" operations management problems or issues and recommended solutions. These videos provide an effective way of demonstrating how companies use the techniques and methods covered in the textbook to tackle real problems.
Using PageOut
PageOut is a McGraw-Hill custom course Web site development tool that allows you to create and post your own personal Web site, complete with URL, to give to your students. It can be used free with the adoption of any McGraw-Hill textbook. Your McGraw-Hill rep can set you up with a User ID and Password. The PageOut Web site provides additional information and a demo. This section of the Instructor’s Manual explains how to download this Instructor’s Manual from the text Web site for use with PageOut.
Solutions
This is the main section of the instructor's manual. For each chapter and supplement in the textbook, this section provides the instructor with teaching notes, answers to discussion and review questions, suggested answers for memo writing exercises, solutions to problems, answers to questions in readings and solutions to cases. In addition, selected chapters will contain enrichment modules designed to enhance the coverage of material. Here’s a brief overview.
Teaching Notes: This section will provide a short description of the purpose of the chapter, highlight the important concepts of the chapter and/or indicate how to use the chapter.
Answers to Discussion and Review Questions: This section contains answers to each of the discussion and review questions given at the end of each chapter. The answers are designed to be correct and thorough. The questions cover the key points contained in the chapter and can be assigned either as homework or as examination questions.
Answers to Memo Writing Exercises: The content of these exercises is similar to the content of the discussion and review questions. Due to the limitation of space, the answers are not given in the form of memorandums. However, the content of the answer, though concise, is accurate.
Solutions to Problems: All of the quantitative chapters include numerical end-of-chapter problems. The textbook contains a rich variety of problems of different lengths and difficulty levels. There is at least one problem and often multiple problems for each quantitative method or technique covered. Many of the solutions include graphical output to clarify the results. These problems are appropriate for both homework and examination purposes.
Solutions/Answers to Case Problems: The length and difficulty of the cases as well as the length of the solutions/answers varies. Some of the cases require quantitative solutions, others only require a qualitative answer and some have both quantitative and qualitative components. However, the solutions and answers are designed to be thorough.
Answers to Questions for Readings: There are many current "readings" that are used to place the topic in the context of an actual business setting. These "readings" should assist you in demonstrating the relevance of a topical area to students as well as the application of the methods covered in the textbook. Complete answers are given to all questions provided at the end of some of the readings.
Enrichment Modules: Due to the space limitations or other considerations, certain topics are not covered in the textbook. However, an explanation of these selected topics, related exercises, problems and their complete solutions are provided in several of the enrichment modules to give you additional topical flexibility and to provide depth or breath to the coverage of the material in various chapters. Some of these enrichment modules are included as part of the CD-ROM while others are included only as part of the Instructor's Manual.
It is hoped that instructors who are teaching an introductory course in operations management will find this manual a useful supplement to the textbook.
Mehran Hojati
University of Saskatchewan
Excel templates
Student and Instructor CDs contain templates and copies of the examples and solved problems from the textbook. The electronic version of this manual also contains embedded Excel worksheets of the solutions to some of the problems from the end of some chapters. You may copy the worksheet to Excel or double-click to use the embedded version. The templates on the CD use macros (working like black boxes) and can be used if your class has limited skill in setting up and manipulating Excel worksheets.
If you have a computer and projector in the classroom, you may want to use the templates to help demonstrate the methods during your lectures. Excel facilitates "what if” analysis (e.g. see what happens to the Exponential smoothing forecast when you change the smoothing constant alpha). Most of the templates have graphs to visually help the students understand the problems. The templates and graphs are of course "live," that is they contain formulas and immediately recalculate the effect of your changes.
Once students have become accustomed to using the templates, they should be able to solve more problems in less time, and hopefully gain a greater understanding of the problems by viewing the templates as they solve the problems. You should encourage the students to investigate and understand the solutions presented by the templates. In fact, most templates require active participation by the student in reaching the solution. However, you may consider that some templates do “too much of the work" and you may want to use these templates as a key and require students to either solve the problems by hand or with their own spreadsheet solution. Or you may want to go beyond the problem and investigate sensitivity analysis (spreadsheets are very good at that) or other "finer points" of the problem. You may also want to assign more difficult problems because the templates generally relieve the student from the long and tedious calculations. The templates should help the students appreciate the power of spreadsheets while solving the problems.
Using the Templates on the CD
The templates on the CD are contained in Excel workbooks, one workbook for each chapter or chapter supplement (e.g. Chap8S.xlt contains the templates for the Supplement to Chapter 8). To use a specific template, open the workbook for the appropriate chapter and select the template in the index (first worksheet) or on the worksheet tab (at the bottom of the Excel screen).
Entering Data
Enter data only in cells which are shaded like the cell to the right.
You may enter formulas with an equal sign (e.g. =5*.243/12 or =H3).
Deleting Data
To remove data from shaded cells, select the cell(s) and press delete, do not enter a space or zero because many templates will distinguish between a blank cell and a cell containing the space character or zero.
Copying Data
If you copy data to put it into the input (i.e. shaded) area of a template, be sure to use the Excel edit command Paste Special Values. Do not use the Paste command to put data into a template as it may change the formatting including the shading.
You may copy any part (i.e. data or results) of a template to paste into another worksheet.
Programmed buttons
Command buttons (see right) will allow you to clear the data from a template
or to solve the current problem entered in a template—just press it.
Notes:
Some of the templates have notes for using the template. The notes are at the bottom of the template, there may be a hyperlink (e.g. see at right) at the top of the screen to take you down to the notes.
Printing a Template
You may print a template by pressing the Print task button or using the File Print command.
Examples and Solved Problems
Data for the examples and solved problems in the text are also included in the workbook for each chapter. You must enter the data into the appropriate template, either by typing or by Copy and Paste Special Values (you can only paste in shaded areas - see below).
Template files
These templates are saved as Excel template (.x1t) files, so if you make changes and save the file, a number will be added to the end of the file name (e.g. file.xlt becomes file1.xlt) to prevent you from storing over the original.
Using Solver
Some templates (e.g. Linear Programming and Transportation) use the Excel Add In Solver. You must use the Tools Add-Ins command to add in Solver before using these templates. You may solve (i.e. optimize) the problem by pressing the Solve button or using the Tools Solver command.
Round off
There are several types of round off. First, the Solver Add-In has a set precision which also results in an extremely small round off error (e.g. 1.234E-10) and these numbers may be treated as zero. Second, the templates do not round off numbers, but the textbook does (e.g. probabilities for the normal distribution are rounded off to 3-4 places), this will result in small but noticeable differences between results in templates and the textbook.
OPERATIONS MANAGEMENT VIDEO GUIDE
The McGraw-Hill/Irwin OM Video Series includes professionally developed videotapes showing students real applications of key manufacturing and service topics. Each tape contains plant tours to help students see how companies are using operations management concepts and techniques to be productive and competitive. Here is a brief synopsis of each segment and a listing of the appropriate chapters in the textbook.
Volume I Tapes 1 & 2 (ISBN 0-256-12349-7)
Tape 1
Lean Production (13 minutes) This segment shows and discusses how Lean Production (Just-in-Time) is used at Caterpillar, Cummings Engine, and Navistar. Interviews with upper management at the three companies bring out the importance of customer-driven "pull" systems and how the companies employ KIT, Kanban, Jidoka, and MRP II to perform better. (Chapter 11—TQM and Quality Tools; Chapter 16JIT)
Quality (13 minutes) The Baldrige Award ceremony opens this segment, which goes on to list the seven basic quality tools. Then Zytec, Motorola, and Hewlett Packard are used as examples. (Chapter 9Introduction to Quality; Chapter 11TQM and Quality Tools)
The Manufacturing Process (10 minutes) This segment presents the product-process matrix, from customized, low-volume to mechanized, high-volume manufacturing. Most of the segment is on-site scenes from a tool and die shop, Caterpillar, Ford, and Nucor Steel. (Chapter 6Process Selection and Facility Layout)
Tape 2
Computer-Integrated Manufacturing (12 minutes) This segment presents an on-site tour of the Nucor Steel minimill, focusing on the process and computer system. Included are interviews with the plant manager, controller, and caster foreman. It includes good illustrations of controls, process manufacturing, automation, and productivity. (Chapter 2Competitiveness, Strategy, and Productivity; Chapter 6Process Selection and Facility Layout)
Manufacturing Inventory (11 minutes) This segment contrasts Navistar's high turnover-low inventory heavy truck manufacturing system with the high inventory-service parts business at Caterpillar.’s parts distribution network Interviews bring out Navistar's inventory reduction efforts as well as Caterpillar's responsiveness and the corresponding effects on inventory and costs. (Chapter 13Inventory Management; Chapter 15MRP & ERP)
Service (11 minutes) This segment features First National Bank of Chicago and particularly the operations aspect of its check-clearing system. Interviews are included, which help reiterate the point that service businesses use "operations" principles to deliver quality "products." (Chapter 4Product and Service Design)
Volume II (ISBN 0-256-1596-7)
Service Systems and the Service-System Design Matrix (12 minutes) First National Bank of Chicago is again highlighted with a survey of their customer services. This segment highlights the distinctions between automated low contact services and highly customized face-to-face encounters. It also relates these examples to other service companies and includes interview segments with managers. (Chapter 4Product and Service Design; Chapter 6—Process Design)
Improving Operations Methods (12 minutes) This segment illustrates how Bernard Welding Equipment Company reduced set-up time and changed from a push to pull system to better serve their customers. The tape illustrates how a high variety of products (3,000 different configurations) can be custom assembled for quick response to customer orders. Topics touched on are Kanban, TQM, team approach, and JIT. (Chapter 11TQM; Chapters 15JIT)
Layout Improvements and Equipment Strategies (10 minutes) This segment again features Bernard Welding, this time illustrating a reconfigured layout based on process flow as opposed to process type. The segment also shows other improvements such as the layout of the electrical network and equipment. (Chapter 6Process Selection and Facility Layout)
Supplier Development Outreach Program (16 minutes) From Toyota, this tape describes changes and improvements made at Flex-n-Gate, a manufacturer in Danville, Illinois which supplies Toyota with pickup truck bumpers. Toyota Supplier Development Institute engineers consulted with Flex-n-Gate in the process. It includes factory footage and interviews with the purchasing manager, project manager, development engineer, and plant manager. (Chapter 16Just-In-Time Systems; Chapter 12Supply Chain Management)
Volume III (ISBN 0-256-19528-5)
Reengineering at Caterpillar (11 minutes) This segment describes a real program undertaken at Caterpillar's Mossville Engine Center to reengineer the drawing process for engines. The five-step procedure this cross-functional group followed streamlined the process while improving customer satisfaction and quality. It also reduced time and costs. Interviews with team members are included. (Chapter 4Product and Service Design)
Washburn Guitars (12 minutes) Washburn Guitars manufactures and sells over 150,000 guitars annually. This video provides an on-site overview of their job shop production system with special emphasis on production scheduling priorities and their use of a flexible N.C.. machine. (Chapter 6—Process Types; Chapter 14Aggregate Planning; Chapter 17Scheduling)
Shouldice Hospital (16 minutes) This video, originally produced by Canadian National Broadcasting, describes the unique and specialized service product of Shouldice Hospital—hernia surgery. The entire process of delivery of the product is examined, along with the unique level of customer satisfaction. (Chapter 4Product and Service Design; Chapter 5Capacity Planning; Chapter 6—Process Design)
Volume IV (ISBN 0-256-21570-7)
Tape 1
Value-driven Production at Trek (9 minutes) This segment describes the distinctive approach Trek uses to manufacture high quality, mass-customized bikes for their customers. On-site footage features interviews and examples of unique uses of material, testing and assembly. (Chapter 2—Competitiveness; Chapter4—Product Design; Chapter 6Process Selection and Facility Layout; Chapter 11TQM)
Scheduling Services—The United Solution (9 minutes) This segment presents an overview of the staff scheduling system used by United Airlines in planning and delivering over 2,200 trips with 500 planes per day. Interviews with the developers of the PEGASYS computer system, along with discussions with key flight scheduling, equipment scheduling, and maintenance scheduling personnel lay out the procedures and issues United must deal with to efficiently deliver service in the travel industry. (Chapter 17Scheduling)
Quality Product and Process Design at Detroit Diesel (11 minutes) This segment describes the focus on quality, from design of products through the actual manufacturing of engines, including the highly successful Series 60 engine. Interviews with owner Roger Penske, the product manager and assembly workers are included. Also included are on-site examples of the use of technology and talent to increase quality through product and process design. (Chapter 4Product and Service Design; Chapter 6—Process Design; Chapter 9Introduction to Quality; Chapter 11TQM)
Tape 2
Production Tour of the Vision Light System at Federal Signal (12 minutes) This segment follows the production and assembly process for Vision Lights at Federal Signal Corporation. This begins with the original bill of materials schedule through incoming parts and kit inspections, and several assembly and sub-assembly processes. Interviews with the master scheduler, operations manager and supervisors, in purchasing are included and all footage is on-site. (Chapter 14Aggregate Planning; Chapter 15MRP & ERP)
JIT at Federal Signal (12 minutes) This segment presents the use of both "big" and "little" JIT concepts at Federal Signal to reduce waste, improve quality, and closely meet customer demand in manufacturing a variety of products. On-site examples of Kanban, work cells, and supplier relations are featured as well as short interviews with engineers and employees. (Chapter 11TQM; Chapter 16JIT)