C Operations Management - Appendices and Index

Appendix A
NORMAL CURVE AREAS
TABLE A.1 Normal Curve Areas

Z
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.0
0.1
0.2
0.3
0.4
0.5
0.0000
0.0398
0.0793
0.1179
0.1554
0.1915
0.0040
0.0438
0.0832
0.1217
0.1591
0.1950
0.0080
0.0478
0.0871
0.1255
0.1628
0.1985
0.0120
0.0517
0.0910
0.1293
0.1664
0.2019
0.0160
0.0557
0.0948
0.1331
0.1700
0.2054
0.0199
0.0596
0.0987
0.1368
0.1736
0.2088
0.0239
0.0636
0.1026
0.1406
0.1772
0.2123
0.0279
0.0675
0.1064
0.1443
0.1808
0.2157
0.0319
0.0714
0.1103
0.1480
0.1844
0.2190
0.0359
0.0753
0.1141
0.1517
0.1879
0.2224
0.6
0.7
0.8
0.9
1.0
0.2257
0.2580
0.2881
0.3159
0.3413
0.2291
0.2611
0.2910
0.3186
0.3438
0.2324
0.2642
0.2939
0.3212
0.3461
0.2357
0.2673
0.2967
0.3238
0.3485
0.2389
0.2704
0.2995
0.3264
0.3508
0.2422
0.2734
0.3023
0.3289
0.3531
0.2454
0.2764
0.3051
0.3315
0.3554
0.2486
0.2794
0.3078
0.3340
0.3577
0.2517
0.2823
0.3106
0.3365
0.3599
0.2549
0.2852
0.3133
0.3389
0.3621
1.1
1.2
1.3
1.4
1.5
0.3643
0.3849
0.4032
0.4192
0.4332
0.3665
0.3869
0.4049
0.4207
0.4345
0.3686
0.3888
0.4066
0.4222
0.4357
0.3708
0.3907
0.4082
0.4236
0.4370
0.3729
0.3925
0.4099
0.4251
0.4382
0.3749
0.3944
0.4115
0.4265
0.4394
0.3770
0.3962
0.4131
0.4279
0.4406
0.3790
0.3980
0.4147
0.4292
0.4418
0.3810
0.3997
0.4162
0.4306
0.4429
0.3830
0.4015
0.4177
0.4319
0.4441
1.6
1.7
1.8
1.9
2.0
0.4452
0.4554
0.4641
0.4713
0.4772
0.4463
0.4564
0.4649
0.4719
0.4778
0.4474
0.4573
0.4656
0.4726
0.4783
0.4484
0.4582
0.4664
0.4732
0.4788
0.4495
0.4591
0.4671
0.4738
0.4793
0.4505
0.4599
0.4678
0.4744
0.4798
0.4515
0.4608
0.4686
0.4750
0.4803
0.4525
0.4616
0.4693
0.4756
0.4808
0.4535
0.4625
0.4699
0.4761
0.4812
0.4545
0.4633
0.4706
0.4767
0.4817
2.1
2.2
2.3
2.4
2.5
0.4821
0.4861
0.4893
0.4918
0.4938
0.4826
0.4864
0.4896
0.4920
0.4940
0.4830
0.4868
0.4898
0.4922
0.4941
0.4834
0.4871
0.4901
0.4925
0.4943
0.4838
0.4875
0.4904
0.4927
0.4945
0.4842
0.4878
0.4906
0.4929
0.4946
0.4846
0.4881
0.4909
0.4931
0.4948
0.4850
0.4884
0.4911
0.4932
0.4949
0.4854
0.4887
0.4913
0.4934
0.4951
0.4857
0.4890
0.4916
0.4936
0.4952
2.6
2.7
2.8
2.9
3.0
0.4953
0.4965
0.4974
0.4981
0.4987
0.4955
0.4966
0.4975
0.4982
0.4987
0.4956
0.4967
0.4976
0.4982
0.4987
0.4957
0.4968
0.4977
0.4983
0.4988
0.4959
0.4969
0.4977
0.4984
0.4988
0.4960
0.4970
0.4978
0.4984
0.4989
0.4961
0.4971
0.4979
0.4985
0.4989
0.4962
0.4972
0.4979
0.4985
0.4989
0.4963
0.4973
0.4980
0.4986
0.4990
0.4964
0.4974
0.4981
0.4986
0.4990
790
Solutions to Selected Odd-Numbered Problems
SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS

Chapter 1
1.
3.
5.
7.
9.
11.
Blacksburg
last year; yes
U.S.
Hall; Dayne
a. 15.38, 26.67, 40.54; b. decreases; c. yes
John
SUPPLEMENT 1
1. a. Mexico; b. China; c. Taiwan; d. Taiwan
3. a. office building; b. parking lot; c. parking lot or shopping mall; d. parking lot
5. a. risk fund; b. savings bond; c. bond fund; d. bond fund
7. a. Widget; b. EVPI ! $24,000; c. maximax-widget, maximin-nimnot, regret-widget, equal
likelihood-widget
9. major content revision; EVPI ! $85,080
11. a. Singapore; b. Singapore
13. $237,740
15. lockers and showers
17. a. stock 28 boxes, $53.50; b. EV ! $54.90, EVPI ! $1.60
19. press, EV ! $10,800
21. a. Gordon; b. Jackson; c. Gordon; d. Jackson
23. medical technology; EV ! $187, 501
25. a. Ramon, EV ! 112.4; b. probably Terry; c. Ramon, EV ! 109.74
27. Hong Kong; EV ! $0.724 billion
29. Do not install power generator; EV ! $552,000
31. oil change and sample; $400
33. settle; EV ! $600,000
35. grower B; EV ! $39,830
Chapter 2
1.
3.
5.
7.
9.
11.
13.
a. 2000: 84.24%, 2001: 80.22%, 2002: 72.28%, 2003: 65.6%, 2004: 58.3%, decreasing trend;
b. 2000: 1.71% and 14.05%, 2001: 5.3% and 14.48%, 2002: 13.32% and 14.4%, 2003:
21.97% and 12.43%, 2004. 29.96% and 11.74%; c. 2000: 6.93 and 44.48, 2001: 7.50
and 47.64, 2002: 7.85 and 50.04, 2003: 6.90 and 44.46, 2004: 5.79 and 38.32
a. 139.8; b. good ! 91.67%
2005: $10.54, 2006: $9.74, 2007: $9.34; 200506: "8.21%, 200607: "4.22%
a. alternative 2, 204; b. alternative 2
a. 5.11; b. 5.11; c. 5.58; d. 5.24
a. 6.39; b. $32,266
w/o defects ! 875 units; w/o defects ! 761 units.
Chapter 3
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
25.
27.
p ! 0.151, UCL ! 0.258, LCL ! 0.044; out of control

p ! 0.053, UCL ! 0.100, LCL ! 0.005; in control
c ! 24.73, UCL ! 39.65, LCL ! 9.81; out of control
c ! 10.67, UCL ! 17.20, LCL ! 4.14; in control
R ! 3.17, UCL ! 6.69, LCL ! 0; x ! 3.00, UCL ! 4.83, LCL ! 1.18; in control
R ! 0.57, UCL ! 1.21, LCL ! 0; in control
a. R ! 2, UCL ! 4.56, LCL ! 0; b. out of control
x ! 39.7, UCL ! 43.31, LCL ! 36.12; out of control
no pattern
pattern may exist
patterns exist
x ! 3.25, UCL ! 5.50, LCL ! 1.00; in control

29.
31.
33.
35.
37.
39.
41.
43.
45.
47.
p ! .22, UCL ! .45, LCL ! 0; in control

x ! 3.17, UCL ! 5.04, LCL ! 1.29; in control
x ! 7.28, R ! 4.25, Cp ! .81, Cpk ! .52
Cp ! 1.27, Cpk ! .82
process mean ! 1125 hr, UCL ! 1230, LCL ! 1020
x ! 8.91, R ! 5.80, x-chart UCL ! 12.27, LCL ! 5.54; R-chart, UCL ! 12.24, LCL ! 0.
x ! 145.06, R ! 6.1, Cp, ! .99, Cpk ! .86
x ! 9.42, R ! 8.48, Cp ! .61, Cpk ! .52
a. R ! 3.107, UCL ! 6.21, LCL ! 0; x ! 5.23, UCL ! 6.73, LCL:! 3.74; in control;
b. Cp ! .67, Cpk ! .51; process not capable of producing within specifications, will
generate defects.
a. R ! 19.17, UCL ! 38.41, LCL ! 0; x ! 88.64, UCL! 97.89, LCL ! 79.38; in control
b. Cp ! .32, Cpk ! "0.36; process not currently capable of consistently achieving desired
customer satisfaction.
SUPPLEMENT 3
1. a. n ! 131, c ! 5, # ! .0049, $ ! .095
3. no; n ! 208, c %18
5. n ! 131, c ! 5
Chapter 4
3.
5.
7.
9.
11.
13.
15.
0.934
.994
a. no; b. 0.9919
a. professional; b. standard
80.65%
Airway
a. .839; b. .966
Chapter 5
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
25.
27.
29.
31.
33.
35.
37.
39.
41.
43.
45.
Lq ! 1.33, Wq ! 4.80 min; not good service

a. Lq ! 0.5, W ! 0.20 hr, Wq ! 0.10 hr; b. & '
& ! 9/hr
no
a. Lq ! 5.14 trucks, W ! 0.05 day, Wq ! 0.03 day; b. yes
L ! 1.01, Lq ! 0.177, W ! 0.101 hr, Wq ! .0175 hr; yes
Yes, assign an operator
P0 ! 0.005, L ! 7.94, Lq ! 2.938, Wq ! .783, W ! 2.11
Yes, hire a third doctor
3 servers should be sufficient
Add more employees; expected savings ! $25.50/day
Lq ! 1.94, Wq ! 0.176 hr
Pn(10 ! 0.4182
7:00 A.M. " 9:00 A.M. ! 4, 9:00 A.M. " noon ! 2, noon " 2:00 P.M. ! 6, 2:00 P.M. "
5:00 P.M. ! 4
L ! 0.1476 car out of service, W ! 13.52 hr.
Select new service agreement, savings ! $1813.50
Lq ! 16.35 manuscripts, L ! 27.78 manuscripts, Wq ! 2.09 weeks, W ! 3.47 weeks, U ! 0.952
high-speed copier
a. Wq ! 17.34 min.; b. P(x ( 6) ! 0.0006
4 registers
Wq ! 0.31 hr, W ! .81 hr, system adequate
a. Lq ! 1.177, Wq ! 2.33 hr, W ! 3.82 hr, U ! 0.7551; not effective; reduce athletes to 6.
4 cranes
Chapter 6
3.
5.
7.
500; $7500
625; $31,250
a. 18,118; b. 363 days, 91 days; c. 84 days, yes
791
792

9.
11.
13.
15.
17.
19.
21.
choose supplier if demand )800; choose process B if demand '2000; choose process A
otherwise
a. '187 min; b. '226 min
choose provider 1 if claims '10; choose provider 2 if claims )5; otherwise, choose provider 3
choose labor-intensive if units )6667; choose fully automated if units )41,666; otherwise,
choose automated
choose A if demand )2400; choose C if demand '20,000; otherwise, choose B
choose A if rent )20 movies; choose C if rent '40 movies; choose B otherwise
choose A ' 2000; C ) 1000; B otherwise
Chapter 7
1.
3.
5.
7.
9.
11.
a. 135; b. 70; c. switch 4 and 5, or 1 and 3;

1
90 nonadjacent loads
13.
A, B
C, E ; 85.19%, 53.33
15.
a. A
B, C, D
b. A, B, C, D
E, F, G
E, F, G
H, I, J
(multiple solutions); 4 workers; 77.5%;
H, I, J ; 3 workers, 93.94% (multiple solutions)
17.
Cd ! 4 min; N ! 4; A, E
B, C
19.
4 students; A, B
D, E
F ; no, students would have to work more than
F ; 100%
5 days a week (multiple solutions)

21.
23.
A, B, C, D, E
I, J
Multiple solutions; A, B, D
or A, B, D
25.
F, G, H
A, D, F
E, F, H
E, H
K ; (multiple solutions); 75%
E, F, C
G, I, J
B, C, G
G, H, I
J, K ; 34 beds;
C, K ; 36 beds
I, J, K ; 95.8%; 40 units
SUPPLEMENT 7
1. Mall 1 ! 62.75, mall 2 ! 73.50, mall 3 ! 79.50, mall 4 ! 67.00; select mall 3
3. South ! 73.80, West A ! 74.50, West B ! 67.25, East ! 73.90; select East
5. C ! 76, E ! 75, D ! 74, B ! 70, A ! 69; select E
7. A ! 77.5, B ! 75.5, C ! 74.25, D ! 78.75 select Dowling.
11. x ! 19.68, y ! 19.26
13. LD(A) ! 22,549.4, LD(B) ! 20,505.1, LD(C) ! 19,640.5; site C

15.
17.
19.
21.
x ! 1,665.4, y ! 1,562.9
a. x ! 78.8, y ! 106.0; b. Seagrove closest, Ashboro better
x ! 265.33, y ! 363.84
x ! 1559.8, y ! 1766.8
Chapter 8
1.
3.
5.
7.
9.
t100 ! 20.5 min; 16,424.1 min per week

t60 ! 48.89 hr, t120 ! 44.98 hr
0.9024
t80 ! 45.1 sec
t136,000 ! 3 min per line; 250 lines
SUPPLEMENT 8
1. 4.163 min
3. a. 2.39 min; b. avg. ! $4.52/hr, subject ! $4.82/hr
5. a. 4.52 min; b. n ! 31
7. n ! 12.2 or 13 cycles
9. a. 1.383 min; b. n ! 7.7 or 8 cycles; c. poorer quality
11. n ! 683
13. a. 88.8%; b. 151 more observations
15. 3.946 min
17. a. n ! 271
19. a. 347 additional observations; b. 69%
Chapter 9
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
25.
27.
29.
31.
Time ! 10 weeks
a. 23 weeks; s1 ! 0, s2 ! 1, s3 ! 0, s4 ! 10, s5 ! 1, s6 ! 0, s7 ! 9, s8 ! 0, s9 ! 11; b. 1-3-6-8
1: ES !0, EF ! 7, LS ! 2, LF ! 9, S ! 2; 2: ES ! 0, EF ! 10, LS ! 0, LF ! 10, S ! 0;
3: ES ! 7, EF ! 13, LS ! 9, LF ! 15, S ! 2; 4: ES ! 10, EF ! 15, LS ! 10, LF ! 15,
S ! 0; 5: ES ! 10, EF ! 14, LS ! 14, LF ! 18, S ! 4; 6: ES ! 15, EF ! 18, LS ! 15,
LF ! 18, S ! 0; 7: ES ! 18, EF ! 20, LS ! 18, LF ! 20, S ! 0; CP ! 2-4-6-7
1: ES ! 0, EF ! 10, LS ! 0, LF ! 10, S ! 0; 2: ES ! 0, EF ! 7, LS ! 5, LF ! 12, S ! 5;
4: ES ! 10, EF ! 14, LS ! 14, LF ! 18, S ! 4; 3: ES ! 10, EF ! 25, LS ! 10, LF ! 25,
S ! 0; 5: ES ! 7, EF ! 13, LS ! 12, LF ! 18, S ! 5; 6: ES ! 7, EF ! 19, LS ! 13,
LF ! 25, S ! 6; 7: ES ! 14, EF ! 21, LS ! 18, LF ! 25, S ! 4; 8: ES ! 25, EF ! 34,
LS ! 25, LF ! 34, S ! 0; CP ! 1-3-8 ! 34
CP ! 1-3-7-8-10-12 ! 15 days
CP ! a-b-f-h ! 15 wk
CP ! a-d-g-k ! 33 wk, * ! 3.87, P(x % 40) ! .9649
e. CP ! 1-3-7-8-10-12; f. 18 months
c. CP ! b-f-j-k; d. 28.17 wk; e. 0.0113
57.33 days; P(x % 67) ! .9535
CP ! a-c-d-h-l-o-q ! 118.67; P(x % 120) ! .59
crash cost ! $23,250
CP ! a-d-g-k, crashing cost ! $5100
CP ! a-e-f-g-j-o-p ! 91.667; P(x % 101) ! .9976
CP ! a-b-c-g-j-k-l-m; P(x % 52) ! 1.00
CP ! d-h-i-j-l-m-n ! 92.33; P(x % 90) ! .348
Chapter 10
1.
3.
5.
7.
9.
11.
Inventory turns ! 14.2; days of supply ! 25.94

Inventory turns ! 18.4; weeks of supply ! 2.7
(a) year 1: inventory turns ! 8, days of supply ! 45.7; year 2: inventory turns ! 8.3, days of
supply ! 44.1; year 3: inventory turns ! 11.1, days of supply ! 32.8; year 4: inventory
turns ! 12, days of supply ! 30.5. (b) marginally improved
c ! 7.3, UCL ! 15.41, LCL ! 0, in control
p ! 0.421, UCL ! .069, LCL ! .015; out of control
x ! 3.17, UCL ! 5.04, LCL ! 1.29; R ! 3.25, UCL ! 6.86, LCL ! 0; out of control
793
794

SUPPLEMENT 11
1. Bethlehem " Detroit ! 130, Bethlehem " St. Louis ! 50, Birmingham " Detroit ! 30,
Birmingham " Norfolk ! 220, Gary " St. Louis ! 70, Gary " Chicago ! 170; $84,100.
3. T " NY ! 160, T " C ! 130, M " P ! 140, F " P ! 70, F " B ! 180; $6220
5. P " L ! 10, S " L ! 5, St.L. " C ! 15, D " G ! 10, D " C ! 5; $215,000
7. A " B ! 25, A " P ! 25, St.L. " B ! 25, St.L. " D ! 90; $10,500
9. No change
11. Alternative 1 ! $28,920, alternative 2 ! $25,600; select 2
13. 1 " 1 ! 27, 1 " 2 ! 5, 1 " 4 ! 10, 2 " 2 ! 21, 3 " 3 ! 18, 4 " 4 ! 23, 5 " 4 ! 4, 5 "
5 ! 31, 6 " 3 ! 4, 6 " 4 ! 7, 6 " 6 ! 16; 467 miles
15. A " 3 ! 1, C " 1 ! 1, D " 1 ! 1, E " 3 ! 1, F " 2 ! 1, G " 2 ! 1, H " 1 ! 1; 1070
17. N " Addison ! 270, S " Beeks ! 120, S " Canfield ! 190, E " Addison ! 130, E "
Canfield ! 190, W " Daley ! 220, C " Beeks ! 280; 20,550 minutes
19. A " 3, ! 8, A " 4 ! 18, B " 3 ! 13, B " 5 ! 27, D " 3 ! 5, D " 6 ! 35, E " 1 ! 25,
E " 2 ! 15, E " 3 ! 4; $1528
21. 1 " E ! 8, 2 " C ! 12, 3 " E ! 2, 4 " D ! 8, 5 " A ! 9, 6 " B ! 6; 1,236 hrs.
23. Sac. " St Paul ! 15, Sac. " Topeka ! 1, Bak. " Denver ! 10, S.A. " Topeka ! 12,
Mont. " Denver ! 10, Jack. " Akron ! 15, Jack. " Topeka ! 7, Ocala " Louisville ! 15;
$276,200
25. L.A. " Singapore ! 150, L.A. " Taipei ! 300, Savannah " H.K. ! 400, Savannah "
Taipei ! 200, Galv. " Singapore ! 350, Shortages " H.K. ! 200; $723,500;
penalties ! $160,000
27. 1 " G ! 1, 2 " B ! 1, 3 " H ! 1, 4 " L ! 1, 5 " K ! 1, 6 " F ! 1, 7 " D ! 1, 8 " A ! 1;
$4,260.
29. 1 " 7! .3, 1 " 9 ! 5.6, 2 " 8 ! 4.3, 3 " 8 ! 1.2, 3 " 10 ! 2.6, 4 " 7 ! 2.8, 4 " 10 ! 3.9,
5 " 9! 2.5, 6 " 8 ! 4.8, 7 " 11 ! 3.1, 8 " 11 ! 10.3, 9 " 11 ! 8.1, 10 " 11 ! 6.5;
$2,206,000.
31. Mexico " Houston ! 18, P.R. " Miami ! 11, Haiti " Miami ! 23, Miami " NY ! 20,
Miami " St.L. ! 12, Miami " L.A. ! 2, Houston " L.A. ! 18; $479,000
33. 1 " C ! 70, 2 " B ! 80, 3 " A ! 50, B " A ! 10, C " B ! 6 ; 30; $14,900
35. Idaho Kansas ! 1600, Nebraska " Arkansas ! 1100, S.D. " Indiana !1400, Michigan
Kansas ! 600, Indiana " Ohio ! 900, Indiana " SC !500, Kansas " MD ! 1200,
Kansas " SC ! 600, Kansas " Alabama ! 400, Arkansas " Alabama ! 400; $25,192.
37. a. Barcelona " Boston ! 5, Boston " TX ! 2, Boston " NC ! 3, TX " Phoenix ! 1,
TX " +C ! 1, NC " Phoenix ! 1, NC " Louisville ! 1, NC " Memphis !1; Z ! 144 days.
b. Antwerp " Boston ! 2, Barcelona " Boston ! 3, Boston "TX ! 2, Boston " NC ! 3,
TX " Phoenix ! 1, TX " +C ! 1, NC " Phoenix ! 1, NC " Louisville ! 1, NC "
Memphis ! 1, Z ! 454 days.
Chapter 12
1.
3.
5.
7.
9.
11.
13.
15.
17.
a. Apr ! 8.67, May ! 8.33, Jun ! 8.33, Jul ! 9.00, Aug ! 9.67, Sep ! 11.0, Oct ! 11.00,
Nov ! 11.00, Dec ! 12.00, Jan ! 13.33; b. Jun ! 8.20, Jul ! 8.80, Aug ! 9.40, Sep !
9.60, Oct ! 10.40, Nov ! 11.00, Dec ! 11.40, Jan ! 12.60; c. MAD(3) ! 1.89,
MAD(5) ! 2.43
a. F4 ! 116.00, F5 ! 121.33, F6 ! 118.00, F7 ! 143.67, F8 ! 138.33, F9 ! 141.67, F10 !
135.00, F11 ! 156.67, F12 ! 143.33, F13 ! 136.67; b. F6 ! 121.80, F7 ! 134.80, F8 !
125.80, F9 ! 137.20, F10 ! 143.00, F11 ! 149.00, F12 ! 137.00, F13 ! 142.00; c. F4 !
113.95, F5 ! 116.69, F6 ! 125.74, F7 ! 151.77, F8 ! 132.4, F9 ! 138.55; F10 ! 142.35,
F11 ! 160.00, F12 ! 136.69, F13 ! 130.20; d. 3-qtr MA: E ! 32.0, 5-qtr MA: E ! 36.4,
weighted MA: E ! 28.05
a. F4 ! 276.67, F5 ! 283.32, F6 ! 303.33, F7 ! 356.67, F8 ! 393.33, F9 ! 420.00; b. F2 !
270.00, F3 ! 278.00, F4 ! 272.40, F5 ! 275.92, F6 ! 294.74, F7 ! 317.79, F8 ! 334.23,
F9 ! 357.38; c. 3-sem MAD ! 61.33, exp. smooth MAD ! 70.42
F11 (exp. smooth) ! 68.6, F11 (adjusted) ! 69.17, F11 (linear trend) ! 70.22; exp. smooth:
E ! 14.75, MAD ! 1.89; adjusted: E ! 10.73, MAD ! 1.72; linear trend: MAD ! 1.09
a. MAD ! 3.12; b. MAD ! 2.98; c. MAD ! 2.87
F13 ! 631.22, E ! 26.30, E ! 289.33, biased low
F1 ! 155.6, F2 ! 192.9, F3 ! 118.2, F4 ! 155.6
F9 (adjusted) ! 3,313.19, F9 (linear trend) ! 2,785.00; adjusted: MAD ! 431.71, E ! "2,522;
linear trend: MAD ! 166.25
y ! 195.55 , 2.39x; fall ! 44.61 winter ! 40.13, spring ! 52.38, summer ! 70.34

19.
21.
23.
25.
27.
29.
31.
33.
35.
37.
39.
41.
43.
45.
47.
49.
51.
53.
F9 ! 492.31, F9 (adjusted) ! 503.27; MAD ! 49.36

E ! 86.00, E ! 8.60, MAD ! 15.00, MAPD ! 0.08
UCL ! 718.14, LCL ! "718.84, no apparent bias
a. E ! 10.73, MAD ! 16.76, MAPD ! 0.1038, E ! 75.10; b. E ! 8.00, MAD ! 12.67,
MAPD ! 0.08, E ! 39.99; c. biased low
MAD ! 1.78, E ! 12.36, biased high; MAD (linear trend) ! 0.688
a. y ! 0.51 , 0.403x, y(x ! 25) ! 10.57; b. R ! .914
0.694
y ! 15.864 " 0.575x; r2 ! 0.616; y(23) ! 2.64%
y ! 6253.33 " 183.606x; a. MAD (linear regression) ! 310, MAD (linear trend) ! 256;
b. "0.850
a. y ! 380.93 , 16.03x (y ! 557.26); b. y ! "22.07 , 41x (y ! 594.10): (c) b best
a. SF1 ! 62.78, SF2 ! 68.53, SF3 ! 82.89, SF4 ! 71.40; b. Q1 ! 64.64, Q2 ! 66.06,
Q3 ! 80.82, Q4 ! 69.27
Exponential smoothing models appear to be most accurate
(a) y ! 37.72 , 247x, 65.15%; (b) y(11) ! 64.54%
a. y ! 219.27 , 12.28x, y ! 415.67; b. y ! "5349.77 , .147 x, r ! .966, y ! 541.41.
y ! 1.704 , 0.269 x, r2 ! .546
a. y ! 745.91 " 2.226 x1 , 0.163 x2; b. r2 ! .992; c. y ! 7,186.91
a. y ! 219.67 " 0.027 x1 , 233.871 x2; b. r2 ! 0.956; c. y ! $882.82
a. y ! 43.09 , .0007 x1 , 1.397 x2; b. r2 ! .696; c. y ! 76.66
Chapter 13
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
25.
27.
29.
31.
33.
35.
37.
41.
a. Q ! 120.1; b. TC ! $15,612.49; c. 12.49 orders; d. 29.14 days

a. Q ! 292.5; b. TC ! $7,897.47; c. 56.41 orders; d. 5.67 days
a. Q ! 278,971.3; b. TC ! $22,317.71; c. 5.07 orders; d. 72 days
a. Q ! 79, TC ! $5,924.53
a. Q ! 1,264.9; b. TC ! $632.46; c. R ! 54.79
Q ! 20,263.88; TC ! $486,333.22
a. Q ! 2,529.8; b. TC ! $12,648; c. 4 orders; d. 42.2 days
Q ! 90,137.52; TC ! $3,020.45
a. Q ! 9.1; TC ! $1,095.45; b. Q ! 6, TC ! $1,193.33
Q ! 70,000; TC ! $56,000; 4 orders
Q ! 5,000; TC ! $68,725
Q ! 500; TC ! $64,704
Q ! 6,000; TC ! $87,030.33
Q ! 20,000; TC ! $893,368
R ! 30,603.42; safety stock ! 2,603.42
R ! 83,016.7
R ! 259.2; safety stock ! 46.67
R ! 32.38
Q ! 122 pizzas, 117 pizzas
R ! 9.22
SUPPLEMENT 13
1. b. ! 3.48, EV ! 3.65, not enough simulations; c. 21 calls, no, repeat simulation
3. ! $251
5. reorder at 5-car level
7. avg. waiting time ! 22 min
11. avg. rating of Salem dates: 2.92
Chapter 14
1.
3.
5.
7.
9.
11.
13.
15.
a. $2,457,000; b. $2,367,000
a. $448,000; b. $443,250; c. $367,600; d. $388,400; choose chase demand
a. $1,638,800; b. $284,800; c. $61,400
a. $381,600; b. $432,900; no, more work is subcontracted
$367,000
$1,308,900
$314,000
$1,800,000
795
796

17.
19.
21.
23.
25.
27.
29.
31.
33.
$451,500
$144,700
5; 105
16, 0, 0, 0, 55, 27
85, 13, 0, 28, 77, 95; 6 weeks
2 seats; 1 seat
55 seats
20 trees
a. 100; b. 75; c. 43, d. 1
SUPPLEMENT 14
1. a. Maximize Z ! $2.25x1 , 3.10x2; s.t. 5.0x1 , 7.5x2 % 6500, 3.0x1 , 3.2x2 % 3000, x2 % 510,
x1 ( 0, x2 ( 0; b. and c. x1 ! 456, x2 ! 510, Z ! $2,607
3. Maximize Z ! 1,800x1a , 2,100x1b , 1,600x1c , 1,000x2a , 700x2b , 900x2c , 1,400x3a ,
800x3b , 2,200x3c; s.t. x1a , x1b , x1c ! 40, x2a , x2b , x2c ! 40, x3a , x3b , x3c ! 40, x1a ,
x2a , x3a % 40, x1b , x2b , x3b % 60, x1c , x2c , x3c % 50, xij ( 0; x1b ! 40, x2a ! 40, x3c !
40, Z ! $212,000
5. Maximize Z ! 4.5xbs , 3.75xos , 3.60xcs , 4.8xms , 3.25xbd , 2.5xod , 2.35xcd , 3.55xmd ,
1.75xbr , 1.00xor , 0.85xcr , 2.05xmr; s.t. 0.6xcs " 0.4xbs " 0.4xos " 0.4xms ( 0, "
0.3xbs , 0.7xos " 0.3xcs " 0.3xms ( 0, 0.4xbd " 0.6xod " 0.6xcd " 0.6xmd ( 0, "
0.1xbd " 0.1xod " 0.1xcd , 0.9xmd % 0, "0.6xbr " 0.6xor " 0.6xcr , 0.4xmr % 0,
0.7xbr " 0.3xor " 0.3xcr " 0.3xmr ( 0, xbs , xbd , xbr % 110, xos , xod , xor % 80) xcs ,
xcd , xcr % 70) xms , xmd , xmr % 150, xij ( 0
b. xos ! 52.5, xcs ! 70, xms ! 52.5, xbd ! 52.2, xmd ! 8.7, xbr ! 57.8, xor ! 1.4, xmr ! 88.8,
xod ! 26.1, Z ! $1,251
7. a. Maximize Z ! 8x1 , 10x2; s.t. x1 , x2 ( 400, x1 ( 0.4 (x1 , x2), x2 % 250 ) x1 ! 2x2,
x1 , x2 % 500, xi ( 0; b. x1 ! 333.3, x2 ! 166.6, Z ! 4332.4
9. Maximize Z ! 3x1s , 5x2s , 6x4s , 9x1P , 11x2P , 6x3P , 12x4P , 1x1R , 3x2R , 4x4R " 2x3R;
s.t. x1S , x2S , x3S , x4S ( 3000, x1P , x2P , x3P , x4P ( 3000, x1R , x2R , x3R ,
x4R ( 4000, x1S , x1P , x1R % 5000, x2S , x2P , x2R % 2400, x3S , x3P , x3R % 4000,
x4S , x4P , x4R % 1500, 0.6x1S " 0.4x2S " 0.4x3S " 0.4x4S ( 0, "0.2x1S , 0.8x2S " 0.2x3S "
0.2x4S %-(( .) "0.3x1S " 0.3x2S , 0.7x3S " 0.3x4S ( 0, "0.4x1P " 0.4x2P , 0.6x3P "
0.4x4P ( 0, "0.5x1R , 0.5x2R " 0.5x3R " 0.5x4R % 0, 0.9x1R " 0.1x2R " 0.1x3R " 0.1x4R ( 0,
xij ( 0; x1S ! 1200, x1R ! 3800, x2P ! 2200, x2R ! 200, x3S ! 900, x3P ! 3100, x4S ! 900, x4P
! 600, Z ! $63,400
11. Minimize Z ! 190 /rj , 260 /Oj , 5 /ij; s.t. rj % 160, Oj % 50, r1 , 01 " i1 ( 105, r2 , O2
, i1 " i2 ( 170, r3 , O3 , i2 " i3 ( 230, r4 , O4 , i3 " i4 ( 180, r5 , O5 , i4 " i5 ( 150,
r6 , O6 , i5 ( 250, Z ! $215,600
13. x1 ! 12 A.M. " 2 A.M. ! 40, x4 ! 20, x5 ! 40, x6 ! 20, x7 ! 10, x9 ! 40, x10 ! 10, Z ! 180
15. xt1 ! 750, xt2 ! 180, xt3 ! 1,680, xm1 ! 750, xm2 ! 450, xm3 ! 480, xb2 ! 270, xb3 ! 240,
Z ! 10,798.50
17. x1 ! 3.3, x2 ! 6.7, Z ! 566.67
19. x1 ! 376,470.59; x2 ! 343,526.41; Z ! 88, 376.47
21. b. x1 ! 120 cups, x ! 80 cups, z ! $370; d. does not affect solution; e. x1 ! 123.1 cups, x2 !
82.1 cups, Z ! $379.53; f. not spend
23. b. x11 ! 65.385, x14 ! 384.615, x22 ! 400, x23 ! 170, x31 ! 150.3, x33 ! 169.7; Z ! $11,738.28
25. x13 ! 25,000, x14 ! 8,000, x16 ! 2,000, x24 ! 4,000, x25 ! 8,000, x34 ! 5,000, Z ! $59,100;
b. Z ! $52,000
27. a. x14 ! 20, x44 ! 40, x35 ! 20, x55 ! 60, x66 ! 90, x17 ! 20, x27 ! 30, x77 ! 50, y5 ! 5, y6 !
10, y7 ! 20, Z ! $31,500; b. x34 ! 20, x44 ! 40, x25 ! 5, x35 ! 20, x55 ! 60, x26 ! 10, x66 !
90, x17 ! 40, x27 ! 25, x77 ! 50, y7 ! 5, Z ! $26,000
29. x1 ! 6, xn ! 0, xs ! 6, xw ! 6, yl ! 14.44, yn ! 10, ys ! 7.56, yw ! 10, Z ! $15,600
31. x1 ! 54, x2 ! 108, x3 ! 162, Z ! $253.80; a. $0.78; b. $0; c. x1 ! 108, x2 ! 104, x3 ! 162, Z !
$249.48
33. x1 ! 1,000, x2 ! 800, x3 ! 200, Z ! $760; a. $38; b. x1 ! 1,000, x2 ! 1,000, Z ! $770; c. x1 !
1,600, x2 ! 200, x3 ! 200
35. xA3 ! 400, xA4 ! 50, xB4 ! 250, xB5 ! 350, xC4 ! 175, xC7 ! 274.1, xC8 ! 50.93, xD2 ! 131.7,
xD7 ! 15.93, xE1 ! 208.33, xE8 ! 149.07, xF1 ! 291.67, xF2 ! 108.3, xF6 ! 460; Z !
12,853.33
37. x12 ! x13 ! x14 ! x15 ! 37,000; x26 ! x36 ! x46 ! x56 ! 12,000; x27 ! x37 ! x47 ! x57 ! 6,000;
x28 ! x38 ! x48 ! x58 ! 19,000; x69 ! 5,000; x79 ! 6,000; x89 ! 3,000; x810 ! 16,000; x611 !
7,000; x912 ! 14,000; x1012 ! 16,000; x1112 ! 7,000; Z ! $40,680

39.
41.
43.
45.
xA2 ! 34,558.82; xA3 ! 145,441.18; xB1 ! 167,259.79; xB2 ! 147,740.21; xC3 ! 61,804.51;
xC4 ! 278,195.49; xE2 ! 61,345.18; Z ! $34,133,052.63
x1B ! 1, x2A ! 1, x3A ! 1, x4B ! 1, x7C ! 1, x11C ! 1, z ! $79,000
x1G ! 1, x2B ! 1, x3D ! 1, x4L ! 1, x5K ! 1, x6E ! 1, x7A ! 1, x8C ! 1, z ! 4.420
a. football fields, playgrounds, walking/running trails, softball fields, z ! 123,500; b. soccer
fields, playgrounds, walking/running trails; z ! 4.0 or 1.33 avg. priority.
Chapter 15
1.
5.
7.
9.
13.
15.
17.
19.
a. 6; b. 7; c. 3
b. 800; c. day 1
$240.80
100 Bs, 50 Cs, 50 Ds, 400 Es, 900 Fs, 200 Gs, 100 Hs, 100 Is
order in periods 16 for quantities 50, 50, 56, 50, 50, and 50
b. 5 days; c. no; d. back panel, side panel, legs, drawer guide
a. POQ or EOQ; b. POQ; c. POQ; d. POQ
a. Machining 250 hours; Heat treat 500 hours; Assembly 50 hours
Chapter 16
1.
3.
5.
7.
9.
SS50SS100SS50SS200
4 (these answers are rounded up)
125/hr
c; decreases
a. 9 kanbans, inventory increases; b. 3 kanbans, inventory halved; c. 14 kanbans, no change in
inventory
Chapter 17
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.
Jones to Nurse 1, Hathaway to Nurse 2, Sweeney to Nurse 3, Bryant to Nurse 4

Product 1 to machine B, product 2 to machine D, product 3 to machine A, product 4 to machine C,
product 5 to machine E
A to Finance, B to Production, C to Customer Service, D to Logistics, E to Sales, F to Marketing Research
FCFS; DDATE or SLACK; Point value of assignment, grade in class, major
SPT: 23.88, 9.75, 22, 5; DDATE: 30.75, 8.25, 13, 7; SLACK: 3.63, 9.13, 17, 7; depends on
criteria
a. 12, 3, 7; b. 12.25, 3.25, 6; c. 13, 3.75, 6; depends on criteria
a. 18 hours, b. 20 hours; FCFS
E, B, D, C, A; 23
6, 5, 4, 2, 1, 3; 5 hr 35 min
Backlog ! 20, 10, 5, 5, 10
b.
M
T
W
Th
F
Sa
Sn
K.J.
0
x
x
x
x
x
0
T.S.
0
0
x
x
x
x
x
F.C.
x
x
x
x
0
0
x
S.B.
x
x
x
x
x
0
0
P.T.
x
0
0
x
x
x
x
M
T
W
Th
F
Sa
Sn
A.R.
0
0
x
x
x
0
x
S.H.
0
x
0
x
x
x
0
J.J.
0
x
0
x
x
x
0
T.T.
0
x
x
0
x
x
x
E.T.
x
0
x
0
x
x
x
P.D.
x
0
x
x
0
x
x
797
Index
ABC systems, of inventory control systems,
560563, 561f
Ability, motivation v., 319
Acceptable quality level (AQL), 149150
Acceptance sampling
AOQL and, 152, 152f, 153f
defects and, 148149
double- and multiple-sampling plans for, 153
OC curve and, 150151, 150f
with OM Tools, 151
producers/consumers risk and, 149150
single-sample attribute plan in, 149
Accessibility, 56, 707
Accounting, 5, 702
ACSI. See American Customer Satisfaction Index
Action notices, 694
Action plan, 22f
Activity, 367
normal activity cost, 401402, 401f
probabilistic activity times in, 389392, 390f,
392f
Activity-on-arrow (AOA), 380, 380f
Activity-on-node (AON), 380, 380f
Activity scheduling, CPM/PERT and, 383386,
383f, 384f, 385f
Activity slack, 386387, 387t
Actual cycle time, 275
Adjusted exponential smoothing, 510512, 512f,
520t
Advanced planning and scheduling (APS),
772774, 773f
Advanced single-server model, 209210, 210f
Aetna, 330
Affirmative action, 329
Aggregate, 608, 609f
disaggregation, 628
Aggregate planning (services), 630
revenue management for, 631634, 632f, 633t
Aggregate planning, scheduling for, 756
Aggregate planning quantitative techniques
Excel for, 617f, 618f, 620f, 621f, 622f, 626t, 627f
general linear programming model for, 618619,
620f
mixed strategies for, 619, 621
other quantitative techniques and, 623626,
623t, 624t, 626f
pure strategies for, 616617, 617f, 618f
transportation method for, 623626, 623t, 627f
AGV. See Automatic guided vehicle
AI. See Artificial intelligence
Aircraft industry, 338339, 341f
Air freight, 460461, 461f
Airlines, 111. See also specific airlines
Air Products, 701702
Alcoa, 498
Alternative workplaces, 324325
Amadas Industries, 614
Amazon, 18, 69, 194195, 455, 456f, 462
American Airlines, 378, 777
American Customer Satisfaction Index (ACSI),
21, 69
American Express, 159, 433
American National Standards Institute (ANSI), 94,

97
American Society for Quality (ASQ), 21, 55, 69,
92t, 97
Analysis techniques, 302308, 304f. See also
specific types of analyses
Analyze, in breakthrough strategy, 79
Andons, 738, 738f
Annual savings, of technology, 245
ANSI. See American National Standards Institute
AOA. See Activity-on-arrow
AOA network, CPM/PERT and, 380381, 380f,
381f
AON. See Activity-on-node
AOQ. See Average outgoing quality
AOQL. See Average outgoing quality limit
Apple, 10, 18, 69, 162, 441
Applied Materials, 615
Appraisal costs, 84, 85f, 86f
APS. See Advanced planning and scheduling
AQL. See Acceptable quality level
ARAMARK Healthcare, 3
ARDEC. See Army Armament Research,
Development and Engineering Center, U.S.
Army Armament Research, Development and
Engineering Center, U.S. (ARDEC), 70, 320
Army Corps of Engineers, U.S., 399400, 400f
Artificial intelligence (AI), 246f, 248t
ASQ. See American Society for Quality
ASRS. See Automated storage and retrieval system
Assemble-to-order, 437, 682
Assembly charts, 235
Assembly Line Configuration Program (ASYBL),
278
Assembly lines, 278, 282284, 283f, 284f, 318.
See also Product layouts
Assignment method, of loading, 758761, 760f
ASYBL. See Assembly Line Configuration
Program
ATP. See Available-to-promise
AT&T, 22, 22f, 97, 317, 323, 325, 330, 430
Attributes, 110
Audi, 159
Australian Business Excellence Award, 92t, 93
Automated scheduling systems, 779
Automated storage and retrieval system (ASRS),
246f, 247t
Automatic guided vehicle (AGV), 246f, 247t
Automation, 281, 281f, 282, 334
Autonomous maintenance, 739n6
Available-to-promise (ATP), 628629, 630f
Average capacity strategy, 258, 259f
Average error, 519520
Average outgoing quality (AOQ), 152, 153f
Average outgoing quality limit (AOQL), 152,
152f, 153f
Avis, 75, 349f
B2B. See Business-to-business
B2C. See Business-to-consumer
Backlogs, 614, 771
Back office, 198f, 199, 199f, 274
Backordering, 614
Backward pass, 385
Backward scheduling, 686, 686f
Balance, 282. See also Line balancing
Balance delay, 276
Balanced scorecard, 2324, 23t, 24f, 78
Baldrige Award. See Malcolm Baldrige National
Quality Award
Bank of America, 77, 78, 205, 261262, 302, 745
Baptist Hospital, Inc., 62
Bar codes, 246f, 248t, 433. See also Radio
frequency identification
Barnes and Noble, 273
Basic EOQ model, 564567, 564f, 565t
Basic layouts
fixed-position layouts in, 266, 266f
process layouts in, 262264, 263f, 264f, 265t
product layouts in, 264265, 264f, 265f, 265t
Basic motion time study (BMT), 354
Basic single-server model, 203f, 206208
advanced single-server model v., 209210, 210f
with Excel, 209, 209f, 210f
Basic waiting line structures, 202203, 203f
Batch production, 229, 230f, 231, 231f, 232t, 756,
775
Bauli, 613
The Bayer Group, 516
Bean, Leon Leonwood, 58
Bechtel, 78
Bellin Health System, 116
Benchmarks, 75, 77, 91, 92, 94, 96, 159, 320
benchmarking data, 241, 242f
Best Buy, 170, 615
Best of breed, 705
Best operating level, 259
Beta distribution, 389, 390f
Bill of material (BOM), 683685, 685t, 686f
Binney & Smith (Crayola), 18
Black Belts, in Six Sigma, 77f, 78, 80
Block diagram, 267269, 270f
Blueprinting, 198, 198f, 199f
BMT. See Basic motion time study
BMW, 69, 159
Boeing, 77, 266f, 430, 498, 745
Boise, Inc., 373
BOM. See Bill of material
Booz, Allen, and Hamilton, 379
Bottlenecks, 771, 775777
BPR. See Business process reengineering
Brainstorming, 64
Brazil, 11f, 470
Breakdown maintenance, 738
Breakeven analysis, 230236, 231f, 232f, 232t
Breakeven point, 233234, 234f, 235f
Breakthrough strategy, 7980
Brees, Brittany, 74f
Brees, Drew, 74f
British Airport Authority, 382
British Airways, 382
British Petroleum, 373
British Standard Institute (BSI), 94
BSI. See British Standard Institute
Index
BTO. See Build-to-order
Budgeting, 245, 599
Build-to-order (BTO), 437, 682
Bullwhip effect, 426427, 426f, 497498, 555, 615
Bureau of Labor Statistics, U.S., 328
Business intelligence, 704
Business process analysis, 706
Business process reengineering (BPR), 241n1
Business-to-business (B2B), 7, 246f, 248t
Business-to-consumer (B2C), 246f, 248t
CAD. See Computer-aided design
CAD/CAM, 168, 231, 231f, 246f, 247t
CAE. See Computer-aided engineering
Calling population, 200201, 201f, 209f, 210
CAM. See Computer-aided manufacturing
Campbells Soup Company, 166, 452
Canada Awards for Excellence, 92t, 93
Capable-to-promise, 628
Capacity, 229, 258, 260f, 696, 738
services and, 630631
Capacity adjustment strategies, 612614, 612f
Capacity cushion, 259
Capacity lag strategy, 258, 259f
Capacity lead strategy, 258, 259f
Capacity planning, 258260, 259f, 260f, 627f,
628, 700
Capacity requirements plan, 627f, 628
Capacity requirements planning (CRP), 695,
696f, 756
calculating capacity for, 696697
load leveling in, 699700, 699f
load profiles for, 696, 697698, 698f
overloads in, 698699
Capital budgeting, 245
Capital investment, 245, 282, 599
Capital One Financial Corporation, 326
CAPP. See Computer aided process planning
Carbon footprints, 171172
Carrying costs, 558, 571573, 571f
constant carrying cost, 571573, 571f
Catalogue-order companies, 111
Cause-and-effect diagrams, 63f, 6465, 64f, 65f
Cause-and-effect (C&E) matrix, 65, 65f, 81f
CBP. See Constraint-based programming
c-Charts, 113114, 117118, 118f
CE. See European Conformity (CE) mark
C&E. See Cause-and-effect (C&E) matrix
Cells, 278, 282
Cellular layouts, 180, 278279, 278f, 279f, 280f,
281f
advantages of, 280281
disadvantages of, 281282
for lean production, 724726, 725f
Center for Health Design, 267
Center-of-gravity technique, 304, 304f
with Excel, 305, 305f
with OM Tools, 306, 306f
CFI Group, 69
Champion, 79
Changeover time (C/O), 747, 747f
Channel Tunnel Rail Link (United Kingdom), 78
Chase demand, 612, 612f, 617, 618f
Chase supply, 612
Checksheets, 63f, 65, 235
China, 10, 11f, 12, 12f, 332f, 370, 373, 467, 472,
615
global supply chain and, 468470
project management and, 374375
skills in, 331332
CIGNA Dental, 78
CIM. See Computer-integrated manufacturing
Cisco Systems, 170, 332, 430

Citibank, 78, 194, 745
Clicker shock, 465
Clorox, 430, 430f
Cloud computing, 709
CNC. See Computer numerically control
C/O. See Changeover time
Coca-Cola, 433
Coca-Cola Foundation, 373
Coefficient of determination, 529
Coefficient of optimism, 36
Coefficient of pessimism, 36
Coinstar, 193
Collaborative logistics, distribution and, 459460
Collaborative planning, 628
Collaborative planning, forecasting, replenishment,
and design (CPFT), 437438, 438t, 516
Collaborative product design (CPD), 168169
Column reductions, 758
Commercial Aviation Partnership, U.S., 533
Communication, 160, 378, 392
Community location factors, 299300
Competitiveness, 1819, 175f, 176
New Balance Corporation, 1213
productivity and, 1417
Completion time, 762
Complex products, MRP and, 681682
Computer-aided design (CAD), 167, 168f, 246f,
247t
CAD/CAM, 168, 231, 231f, 246f, 247t
Computer-aided engineering (CAE), 167, 168,
246f, 247t
Computer-aided manufacturing (CAM), 168
CAD/CAM, 168, 231, 231f, 246f, 247t
Computer aided process planning (CAPP), 246f,
247t
Computer-integrated manufacturing (CIM), 246,
246f, 248t
Computerized layout solutions, 272
Computerized line balancing, 279
Computerized mathematical simulation, 590
Computerized Optimization and Simulation
Modeling for Operating Supermarkets
(COSMOS), 274
Computerized Relative Allocation of Facilities
Technique (CRAFT), 272, 278
Computer Method for Sequencing Operations for
Assembly Lines (COMSOAL), 278
Computer numerically control (CNC), 246f, 247t
COMSOAL. See Computer Method for
Sequencing Operations for Assembly Lines
Concurrent design, 161
Conformance, 56, 83, 87, 97
quality of, 58, 179
Conmed, 735
Connectivity/integration/services, 708709
Consistency, 6, 56, 180
Constancy of purpose, 743
Constant carrying cost, 571573, 571f
Constant service times, 209f, 210
Constraint-based programming (CBP), 772773,
773f
Constraints, in linear programming, 647
Consumer Price Index (CPI), 436
Consumer Product Safety Commission, 472
Consumer Reports, 743
Consumers risk, 149150
Containers, 461f, 462, 463f, 466f
Continuous inventory systems, 559, 560f
Continuous production, 230231, 230f, 231f,
232f, 232t
Continuous replenishment, 452, 498
799
Continuous replenishment programs (CRP), 556

Control, 235, 281, 368f, 757. See also Inventory
control systems; Process control; Project
control; Statistical process control
DMAIC, 7880, 81f, 82
forecast accuracy and, 520523, 521f, 522f
I/O control, 627f, 628, 769771, 771f
visual control, 735, 736f
Control charts, 67, 110f, 126
for attributes, 113118
c-Charts, 113114, 117118, 118f
control limits and, 112
development of, 113
normal distribution, 113f
patterns of, 124125, 124f, 125f
p-charts, 113117, 115f, 125
process control chart, 112f
sample points in, 112113, 112f
Control limits, 112
Convenience, 56
Conveyors, 246f, 247t, 265
Coors, 77
COPQ. See Cost of poor quality
Coral Springs, Florida, 73, 320
Core competencies, 18, 452
CORELAP, 272
Core rigidities, 18
Corning, 230, 743
Corporate services, 453f
Correlation, 529
COSMOS. See Computerized Optimization
and Simulation Modeling for Operating
Supermarkets
Cost(s), 19, 8889, 172, 282, 298, 472
appraisal costs, 84, 85f, 86f
carrying costs, 558, 571573, 571f
crash cost, 401402, 401f, 402f, 403f
fixed, 230
inventory management and, 554, 557559
landed cost, 465
normal activity cost, 401402, 401f
opportunity cost matrix, 758759
outsourcing and, 228229
production workers hourly compensation, 10,
10f
of quality, 8387, 85f, 86f, 87f
sustainability and, 324, 372373, 428430
technology and, 245246
telecommuting and, 325
time v., 377, 403404, 404f
variable, 230
waiting line analysis and, 204205, 204f
Cost control, 368f
Cost index, 85
Cost management, in project control, 377
Cost of poor quality (COPQ), 8485
Courtesy, 56
Courtyard Marriott, 195
Cp. See Process capability ratio
CPD. See Collaborative product design
CPFT. See Collaborative planning, forecasting,
replenishment, and design
CPI. See Consumer Price Index
Cpk. See Process capability index
CPM. See Critical path method
CPM/PERT, 368f
activity scheduling and, 383386, 383f,
384f, 385f
activity slack and, 386387, 387t
AOA network and, 380381, 380f, 381f
critical path and, 381f, 382383, 383f
development of, 379380
800
Index
CPM/PERT, (Continued )
Gantt chart v., 379380
OM Tools and, 393395, 393f, 394f
in project management, 379388, 379f, 380f,
381f, 383f, 384f, 385f, 386f, 387t, 388f
project network and, 380, 380f
CR. See Smallest critical ratio
Cradle-to cradle design, 173
CRAFT. See Computerized Relative Allocation
of Facilities Technique
Craft production, 6
Crash cost, 401402, 401f, 402f, 403f
Crashing, 400. See also Project crashing
Crash time, 401403, 401f, 402f, 403f
Creativity, 160
Critical path, 381f, 382383, 383f
Critical path method (CPM), 379. See also
CPM/PERT
CRM. See Customer relationship management
Crosby, Philip, 60t, 82, 87
Cross-cultural project teams, 370, 374
Cross-docking, 458f, 459
Cross-enterprise teams, 451
Cross training, 321322
CRP. See Capacity requirements planning;
Continuous replenishment programs
C/T. See Cycle time
Culture
cross-cultural project teams, 370, 374
global diversity and, 331332, 373375
Cumulative error, 519520
Cumulative lead time, 683
Currency Doubleday, 18
Customer complaint costs, 84
Customer contact, services v., 192, 196f, 196t
Customer relationship management (CRM), 246f,
248t, 706t, 708f
Customers, 56, 421
CUSTPR, 761
employees v., 317
requirements of, 175179, 175f, 176f, 177f,
178f, 179f
VoC, 69, 70, 79
Customer satisfaction, 6870, 68f
Customer service levels, 556, 630
Custom house brokers, 466f
Customs and Border Protection, U.S., 472473
CUSTPR. See Highest customer priority
CVS, 434
Cycle, 353, 354f, 500, 500f. See also Product
lifecycle management
order cycle, 564567, 564f, 565f
Cycle time (C/T), 274275, 747, 747f, 748f
Dana Corporation, 72
Danaher Motion, 742
Dannon, 77
Days of supply, 440
DBR. See Drum-buffer-rope
DCs. See Distribution centers
DDATE. See Earliest due date
Deal values, 655656, 656f
Decision analysis, 33
payoff tables for, 3436, 34f
with probabilities, 3839
without probabilities, 3436, 34t
sequential decision trees in, 3941, 40f, 41f
Decision making, 34
with simulation, 596597, 597f, 598f
Decision support systems (DSS), 246f, 248t
Decision variables, 646647

Deck, Margie, 772
Deere & Co., 774
Defective parts per million (PPM), 130, 148
Defects, 76, 87, 111, 722f, 772
acceptance sampling and, 148149
LTPD, 149150
Defects per million opportunities (DPMO), 76,
77f, 148
Define, in breakthrough strategy, 79
Define, measure, analyze, improve, control
(DMAIC), 7880, 81f, 82
Delivery, 6, 192, 452, 707, 740
Delivery specifications, 194f, 195
Dell, 10, 18, 440, 459, 503, 561
Delphi method, of forecasting, 501, 523
Demand, 452, 592, 592f, 592t, 594, 613. See also
Aggregate planning (services)
chase demand, 612, 612f
countercyclical patterns for, 614
dependent demand, 557, 558f, 680681, 682f
discrete demand, 681, 682f
inventory management and, 557, 558f
probability distribution of, 591t
shifting, 614
variable demand, 575576, 576f, 578
Demand behavior, in forecasting, 500501, 500f
Demand management strategies, 614615, 615f
Deming, W. Edwards, 5962, 60f, 60t, 61f, 61t, 67,
81f, 109, 316, 321, 323, 743
Deming Medal, 92t
Deming Prize, 93, 93t
Deming Wheel, 6061, 61f, 71
Denmark, 10, 10f, 16f
Department of Commerce, U.S., 554
Department of Defense, U.S., 97
Department of Homeland Security, 70
Department of the Navy, U.S., 97
Dependent demand, 557, 558f, 681682, 682f
Designated target value, 127
Design characteristics, 176, 176f
Design for environment (DFE), 172
Design for manufacture (DFM), 167
Design for Six Sigma (DFSS), 80, 181
Design of Experiments (DOE), 81f
Design process, 56, 84, 161165, 169, 173,
261262, 266267. See also Computer-aided
design; Environment design; Facility design;
Process layouts design; Product design;
Production design; Service design
CPFT, 437438, 438t
feasibility study in, 158f, 159160
idea generation in, 157159, 158f, 159f
job design, 332333, 333t
process capability and, 129f
in product design, 157160, 158f, 159f
robust design, 179181, 180f
Design quality reviews, 169170, 169t, 170t
Design specifications, 194f, 195
Design technology, 167, 168
design quality reviews in, 169170, 169t, 170t
Desired cycle time, 275
DFE. See Design for environment
DFM. See Design for manufacture
DFSS. See Design for Six Sigma
D&H Manufacturing, 615
Direct-response delivery, 452
Disaggregation, 628
Discrete demand, 681, 682f
Discriminating, 150. See also Diversity
Diseconomies of scale, 259, 260f
Disney, 18, 75
Disney Store, 273

Disney World, 74, 159, 611, 611f
waiting at, 205206, 205f
Dispatch list, 757
Distinctive competence, 18
Distinguished Service Medal, 92t
Distribution, 113f, 272
Amazon, 455, 456f
beta distribution, 389, 390f
collaborative logistics and, 459460
DCs/warehouses and, 457
distribution outsourcing and, 460
normal distribution, 393, 394f
Poisson distribution, 201202, 209, 212
postponement and, 457458
speed/quality in, 455
VMI and, 459
WMS and, 458459, 458f
Distribution centers (DCs), 457
Diversity, 328331
Diversity issues, 373375
Division of labor, 6
DMAIC. See Define, measure, analyze, improve,
control
DOE. See Design of Experiments
Dominos, 744
Double-sampling plans, 153
Dow Chemical, 238, 238f, 704
DPMO. See Defects per million opportunities
Drum-buffer-rope (DBR), 775
DSS. See Decision support systems
Dummy, 381382, 381f
DuPont, 97
Durability, 56
Duties, 464465
Duty specialists, 466f
DynMcDermott Petroleum Operations, 320
E. I. du Pont de Nemours & Company, Inc., 379
EAI. See Enterprise application integration
Earliest due date (DDATE), 761764, 767
Earliest finish time (EF), 383f, 384385
Earliest start time (ES), 383385, 383f
Earned value analysis (EVA), 378
eBay, 18, 194195
e-Business, 431432, 431f
EC. See European Community
Eco-labeling, 171, 171f
eCompany, 706
Economic analysis, in idea generation, 159160
Economic order quantity (EOQ), 692693
Economic order quantity (EOQ) model(s)
basic EOQ model as, 564567, 564f, 565t
production quantity model as, 567569, 567f
Economics, 5, 170, 190, 190f, 191f
Economies of scale, 259260, 260f
Edens & Avant, 302
EDI. See Electronic data interchange
EF. See Earliest finish time
Effective capacity, 696
Efficiency, 282, 696
workstations and, 274278
EFT. See Electronic funds transfer
EI. See Employee-involvement (EI) programs
Electronic business, 431432, 431f
Electronic data interchange (EDI), 246f, 248t,
432, 709
Electronic funds transfer (EFT), 22
Elemental standard time files, 354
eM. See e-Manufacturing
Index
e-Manufacturing (eM), 246, 246f, 247t, 248t
e-Marketplaces, 454
Employees
compensation of, 327328
customers v., 317
Kaizen and, 7172
motivation of, 319321, 319f
multifunctional employees, 723724, 724f
for problem-solving, 7172
quality and, 7073
of Ritz-Carlton, 75, 76f
satisfaction of, 7071, 73, 320321
scheduling for, 777779, 778f
temporary/part-time employees, 325327
Employee-involvement (EI) programs, 71
Empowerment, 323
Enterprise application integration (EAI), 708
Enterprise project management, 379
Enterprise resource planning (ERP), 246f, 248t,
272, 438, 498, 700701, 708f
business process analysis and, 706
ERP modules, 702
finance/accounting and, 702
human resources and, 703704, 703f, 704f
implementation of, 704707, 705f, 706t
production/materials management and, 703,
703f, 704f
sales/marketing and, 703, 703f
Environment, 172, 746
product design for, 170181, 171f, 172f, 173f,
175f, 176f, 177f, 178f, 179f, 180f
Environmental analysis, 333t, 334, 599600
Environmental Defense Fund, 373
Environmental producer responsibility (EPR), 172
Environmental Protection Agency, U.S. (EPA), 476
Environment design, 170, 261262
EPR in, 171172, 171f
green consumption in, 173
green manufacture in, 172173, 172f
QFD in, 173179, 174f, 175f, 176f, 177f, 178f,
179f
EOQ. See Economic order quantity (EOQ)
EPA. See Environmental Protection Agency, U.S.
EPR. See Environmental producer responsibility
e-Procurement, 246f, 247t, 453
e-marketplaces for, 454
reverse auctions for, 454455
Equal likelihood (La Place) criterion, 36
Equal opportunity, 329
Ergonomics, 334
ERP. See Enterprise resource planning
ERP implementation
business process analysis and, 706
delivery/access finalization in, 707
external partner link in, 707
modules choice in, 706
sophistication level in, 706707
Erratic orders, MRP and, 682
ES. See Earliest start time; Expert systems
EU. See European Union
European Community (EC), 95, 97
European Conformity (CE) mark, 97
European Quality Awards, 92t, 93
European Union (EU), 9, 97
EVA. See Earned value analysis
Evans, J. R., 129
EVPI. See Expected value of perfect information
e-Waste, 170171
Excel
for aggregate planning quantitative techniques,
617f, 618f, 620f, 621f, 622f, 626t, 627f
assignment method with, 760f, 761
basic single-server model with, 209, 209f, 210f

center-of-gravity technique with, 305, 305f
decision analysis with, 3637, 37f, 38f
EOQ models with, 569, 570f
flowcharts with, 237f, 239
I/O control with, 771f
Johnsons rule with, 766f
learning curves and, 341, 342f
linear programming with, 654, 654f, 655f
load-distance technique with, 307, 307f
location factor rating with, 303, 303f
multiple regression with, 530533, 530f, 531f,
532f, 533f
for multiple-server model, 213f, 214
multiple-server model with, 213f, 214
observation sheet in, 353f
periodic inventory system order quantity with,
578, 579f
process capability with, 132, 132f
process flowcharts in, 239
process layouts with, 270f
productivity with, 15f
quantity discounts with, 573, 573f
regression analysis with, 529530, 529f, 530f
reorder point with, 576, 577f
for sensitivity range, 656, 656f
sequencing rules with, 764f
simulation with, 594598, 595f, 596f, 597f, 598f
SPC with, 126127, 127f, 128f
time series forecasting with, 524526, 524f,
525f, 526f
transportation model and, 477480, 478f, 479f
transshipment model and, 481482, 481f, 482f
Expected value, 38f, 592
Expected value of perfect information (EVPI),
3839
Expedite, 695, 695t
Expertise, outsourcing and, 229
Expert systems (ES), 246f, 248t
Explosion, 691
Exponential smoothing, as time series method,
507510, 507f, 509f, 520t
Export management companies, 466f
Export packers, 466f
Export trading companies, 466f
EXTEND, 272
Extended producer responsibility, in environment
design, 171172, 171f
Extensible markup language (XML), 246f, 248t,
709
External failure costs, 8485, 86f
External setup, 731732
Extranet, 246f, 248t
Extreme points, 650
Facilities, 261262
cost of, 298
CRAFT, 272, 278
types of, 297298
Facilities location, 298
analysis techniques for, 302308, 304f
center-of-gravity technique and, 304306, 304f
GIS and, 301302, 301f
global supply chain and, 299302, 301f
incentives and, 300301
load-distance technique for, 306308, 307f,
308f
in U.S., 299300
Facility design
green facility design, 261262
for process layouts, 267272, 270f, 271f
service layouts design in, 273274, 273f
801
Failure, 164. See also Defects

controllable v. uncontrollable factors, 179180
external/internal failure costs, 8485, 86f
robustness v., 179181, 180f
Failure Modes and Effects Analysis (FMEA), 81f,
169, 169t
Failure rate, 164
Fairfield Inn, 195
Fare classes, 631, 633t
Fast-food restaurants, 111
Fault tree analysis (FTA), 169, 170f
FCFS. See First-come, first served
Feasibility study, in design process, 158f, 159160
Feasible solution space, 649
Federal Express, 19, 75, 317, 323, 430, 433,
461462, 461f, 501, 631, 744
Feigenbaum, Armand V., 60t, 83
Fill rate, 440
Final block diagram, 269, 270f
Final design, 167
Finance, 45, 4f, 245246. See also Accounting;
Cost(s)
ERP and, 702
Finite calling population, 209f, 210
Finite scheduling, 772
Firestone, 174
Firm positioning, 1921, 20f
First-come, first served (FCFS), 761763, 767
Fishbone. See Cause-and-effect diagrams
Fisher, George, 21
Fitness for use, 56
5 Whys, 736737
Fixed automation, 282
Fixed cost, 230
Fixed-order-quantity system, 559, 560f
Fixed-position layouts, 266, 266f
Fixed-time-period system, 560
Flexibility, 21, 282283
Flexible manufacturing systems (FMS), 282, 283f
Flexible resources, 723724, 724f
Flexible work schedules, 324
Flextime, 324
Flextronics, 193194
Flowcharts. See Process flowcharts
Flow time, 275, 762
FMEA. See Failure Modes and Effects Analysis
FMS. See Flexible manufacturing systems
Foodservice, U.S., 373
Ford, 5657, 57f, 77, 78, 159, 174, 318, 321, 341
Ford, Henry, 7, 8t, 81, 318
Forecast accuracy
control and, 520523, 521f, 522f
cumulative error and, 519520
MAD and, 517519, 520t
Forecast error, 517
Forecasting, 6. See also Regression forecasting
methods
components of, 499503, 500f, 502f
CPFT, 437438, 438t, 516
demand behavior in, 500501, 500f
methods of, 501502, 523
OM Tools and, 526, 526f
process of, 502503, 502f
SCM and, 497, 497f
supply chain management and, 496499, 497f
time series forecasting as, 524526, 524f, 525f,
526f
Form design, 161
Fortune, 330331
Fortune 500, 563
Fortune 1000 companies, 329
Forward scheduling, 686, 686f
802
Index
Foxconn, 10
FoxMeyer Drug, 704
France, 374
Free flow layouts, 273, 273f
Frito-Lay, 330, 433
Front office, 198f, 199, 199f, 274
FTA. See Fault tree analysis
Functional design, 163
Functional layouts. See Process layouts
Gainsharing, as employee compensation, 327328
Gang process chart, 336337
Gantt, Henry, 338, 376
Gantt charts, 368f, 765, 765f
CPM/PERT v., 379380
in Microsoft Project, 396f, 397, 398f
for monitoring, 768769, 769f
for project scheduling, 376377, 376f
for synchronous manufacturing, 776f
The Gap, 298, 457
Gaylord Hotels, 436
GE. See Genetic algorithms
GE Energy China, 373
General Electric, 73, 77, 80, 169, 170, 278, 422,
429, 523, 737
General linear programming model, 618619, 620f
General Mills, 460
General Motors, 774
General-purpose machines, 723724
Genetic algorithms (GE), 773774, 773f
Genzyme Corporation, 456
Geographic information systems (GIS), 301302,
301f
German National Quality Award, 93t
Ghirardellis, 755
Gilbreth, Frank, 337338
Gilbreth, Lillian, 337338
GIS. See Geographic information systems
Global diversity, 331332, 373375
Global economy, 190, 190f
Globalization, 8t, 9
China and, 10, 11f, 12, 12f
India in, 1314
reverse globalization, 470472
Global supply chain, 467
China and, 468470
duties/tariffs/trading groups and, 464465, 465f
facilities location and, 299302, 301f
landed cost and, 465
management obstacles and, 465
reverse globalization and, 470472
terrorism and, 472473
U.S. and, 468
Global warming, 8t, 9
GM, 323
Goldratt, Eliyahu, 774775
Goods, 11f
services v., 191, 191f, 193
Gradual usage, 567569, 567f
Graphic solution method, for linear programming,
648652, 649f, 650f, 651f, 652f
Green Belts, in Six Sigma, 77f, 78, 80
Green Building Council, U.S., 261
Green consumption, 173
Green facility design, 261262
Green manufacture, 172173, 172f
Green Revolution, 8t, 9
Green sourcing, 172
Green supply chains, 428
QM and, 429430, 430f
Grid layouts, 273, 273f
Muthers grid, 269270, 270f
Grocery stores, 111

Gross domestic product (GDP), 10, 11f
industry sector v., 190, 191f
Gross requirements, in MRP process, 689, 689t,
690
Group technology (GT), 278, 278f
Grupo Salinas, 96
GT. See Group technology
Guanxi (personal relationships), 374, 469
Guinness brewery, 81, 81f
Hampton Inns, 69
Harley-Davidson, 451
Harrahs Cherokee Casino and Hotel, 631632,
632f
Hawthorne studies, 7, 8t
Health-care operations, 9
Heathrow Airport (London), 382
Heavy manufacturing facilities, 297
Heineken USA, 499
Hersheys, 433, 616
Herzberg, Frederick, 7, 319f, 322323
Heuristics, in line balancing, 278
Hewlett-Packard, 10, 173, 422, 467, 499500,
563
Highest customer priority (CUSTPR), 761
High-level process map, 242243, 242f, 243f
Hiring, 322
Hispanic, 330
Hispanics, 328
Histograms, 63f, 65
Holiday Inn, 192
Home Depot, 298, 326, 457
Honda, 69, 321, 452
Honeywell, 77
Hong Kong Award for Industry, 93t
Horizontal job enlargement, 323
Hoshins, 22
Hospitals, 62, 64, 7880, 111, 195, 266267
Hotel capacity, 260f
Hot lists, 768
House of quality, 175, 175f, 176f, 177f, 178f, 179f
HSBC Securities, 78
Human resources, 4, 4f, 280
ERP and, 703704, 703f, 704f
QM and, 317318
services v., 316
technology v., 316
Human resources management
alternative workplaces/telecommuting
and, 324326, 325f
assembly line and, 318
automation and, 334
Baldrige Awards and, 320321
changing nature of, 318321, 319t
contemporary trends in, 321327
diversity and, 328331
diversity management programs and, 32931
employee compensation and, 327328
employee motivation and, 319321, 319f
empowerment and, 323
environmental analysis and, 333t, 334
ergonomics and, 334
flexible work schedules and, 324
global diversity and, 331332
Japan and, 321
job analysis and, 335338, 335f, 336f, 337f,
338t
job design and, 332333, 333t
job enrichment and, 322323
learning curves and, 338342, 339f, 340f, 341f,
342f
motion study and, 337338, 338t

scientific management limitations and, 319
task analysis and, 333, 333t
teams and, 323
technology and, 334
temporary/part-time employees and, 325327
worker analysis and, 333334, 333t
worker-machine chart, 336337, 337f
Hurricane Katrina, 399400
Hurwicz criterion, 36
Hyatt Regency, 329
Hybrid layouts, 283284, 284f
cellular layouts as, 278282, 278f, 279f, 280f,
281f
FMS as, 282, 283f
Hyundai Azera, 69
i2 Technologies, 706t, 772
IBM, 13, 278, 325, 430, 469, 701, 709
Idea generation, 157160, 158f, 159f
iGrafx, 238
IIE Award for Excellence in Productivity
Improvement, 92t
Improvement curve. See Learning curves
Incentive piece-rate system, 349, 351352
Incentives, facilities location and, 300301
Incremental expansion, one-step expansion v.,
259f
Independent demand, 557, 558f
Index, 21, 69, 131132, 436
Index numbers, 8587, 86f
India, 11f, 1314, 170, 374
Indonesia, 11f
Industrial Revolution, 8t
Industry sector, 298, 756
aircraft industry, 338339, 341f
GDP v., 190, 191f
Infinite queue, 202
Infinite scheduling, 772
Information, 39, 301302, 438t
Information costs, 84
Information technology, 5, 13, 556
bar codes and, 433
EDI and, 432
electronic business and, 431432, 431f
Internet, 435, 437
RFID, 246f, 248t, 433434, 434f, 435f, 740,
740n7, 768
as supply chain enabler, 431437, 431f, 434f,
435f, 436f
Infosys, 13, 170
Infrastructure, 300
Innovation, 244t. See also Process innovation
Input/output, percent change in, 1617, 16f
Input/output (I/O) control, 627f, 628, 769771,
771f
Inspection costs, 84
Insurance companies, SPC and, 111
Intel, 77
Interactive Apparel, 706
Interchangeable parts, 67, 8t
Intermodal transportation, 461f, 462, 463f
Internal failure costs, 8485, 86f
Internal setup, 731732
International Asia Pacific Award, 92t
International freight forwarders, 466f
International Organization for Standardization
(ISO), 68, 83, 95f, 96, 96f
EC and, 95, 97
registrars and, 95, 97
standards of, 9495
U.S. companies and, 95, 97
Index
International trade logistics (ITL), 465, 467
International trade specialists, 465, 466f
Internet, 246f, 248t, 435, 437, 463, 465, 467,
708709
Internet Revolution, 7, 8t, 19
Intranet, 246f, 248t
Inventory, 630, 722f
QM and, 556557
small lots in, 730, 731f
supply chain uncertainty and, 424426, 425f
VMI, 459, 556, 561, 563
Inventory control systems, 559, 560f
ABC systems, 560563, 561f
periodic inventory systems, 560, 577, 578f
Inventory management, 274, 555556, 599
costs and, 554, 557559
demand and, 557, 558f
Inventory systems, continuous, 559, 560f
Inventory turnover (or turns), 439440
I/O. See Input/output (I/O) control
Iredell-Statesville Schools, 62, 94
Irregular movements, in demand behavior, 501
Ishikawa, Kaoru, 60t
Ishikawa diagram. See Cause-and-effect diagrams
ISO. See International Organization for
Standardization
Item master file, 687688, 688t
ITL. See International trade logistics
Ives, Jonathan, 162
J. D. Power and Associates, 69, 92t
J. D. Power Awards, 92t
Japan, 10, 10f, 16f, 59, 109, 321, 374, 615, 722
7-Eleven in, 432433
U.S. v., in lean production, 741742
Japan Quality Medal, 93t
Jenks (Oklahoma) Public School District, 320
Jidoka (workers authority to stop production),
737738, 738f
JIT. See Just-in-time
Job analysis, 335338, 335f, 336f, 337f, 338t
Job design, 332333, 333t
Job rotation, 322
Jobs, 318, 322, 335, 336f. See also Employees
Job shop production scheduling, 756
Job training, 321322
Jockeying, in waiting line system, 201
Johnsons rule, 764766, 765f
Jones, Daniel, 721
Journal of Aeronautical Sciences, 338339
Jugaad (invention on the fly), 170
Juran, Joseph M., 60t, 65, 76
Just-in-time (JIT), 7, 8t, 22, 721, 744, 744f
Kaizen, 7172, 735737, 737f
Kaizen blitzes, 741f, 742
Kanban (card), 726730, 727f, 728f, 747f
Kanban post office, 728f, 729
Kanban racks, 728, 728f
Kanban square, 727728, 728f
Kaplan, Robert, 23
K-bills, 685
Keiretsu model, 432433
Kelley, James E., Jr., 379
Kelloggs, 577
Kerns, David, 743
Key performance indicators (KPIs), 2324, 23t,
439440
KNEX, 472
Kodak, 21, 159, 330331
Kohls, 273
Korea, 1617, 16f, 370
KPIs. See Key performance indicators

Kraft Foods, 77
Kroger, 434
Kyphon, Inc., 322
L. L. Bean, 56, 57, 58, 58f, 325, 460, 462
Labor, 6, 274, 300, 631
Labor hours, 16, 16f, 656, 657f
Labor index, 85
Labor management, 458f, 459
The Lafayette, 379, 379f
Landed cost, 465
La Place criterion, 36
Last-come, first-served (LCFS), 761
Latest finish time (LF), 383f, 385386
Latest start time (LS), 383f, 385386
Latin America, 374375
Latina Style, 331
LCFS. See Last-come, first-served
LDR. See Linear decision rule
Leadership in Energy and Environment Design
(LEED), 261262
Lead time (LT), 683, 689, 689f, 689t, 700
Lean, in recession, 271272
Lean banking, 745
Lean health care, 745
Leaning supply chain, 745746
Lean production, 7. See also Six Sigma
benefits of, 740741
cellular layouts for, 724726, 725f
drawbacks of, 742743
flexible resources in, 723724, 724f
implementing, 741743, 741f, 742f
in Japan v. U.S., 741742
jidoka in, 737738, 738f
kaizen in, 735737, 737f
kanban in, 726730, 727f, 728f
mixed-model assembly in, 733734, 734f
quick setups in, 730732, 731f, 732f, 733f
small lots in, 730, 731f
supplier networks in, 739740
Toyota and, 721723, 727f, 729, 731, 738741,
743, 745
uniform production levels in, 732735, 734f
visual control in, 735, 736f
Lean retailing, 745
Lean services, 744746, 744f, 747f, 748f
Lean Six Sigma, 8082, 81f, 746
Lean systems, 71
Learning curves
Excel and, 341, 342f
human resources management and, 338342,
339f, 340f, 341f, 342f
LEED. See Leadership in Energy and Environment
Design
LensCrafters, 19
Level of customer service, 556, 630
Level production, as capacity adjustment strategy,
612, 612f
Levi Strauss, 18, 302
Lexus, 69, 94
LF. See Latest finish time
Li & Fung Trading Company, 3, 469
Light-industry facilities, 298
Lindsay, W. M., 129
Line. See Waiting line analysis
Linear decision rule (LDR), 623
Linear programming, 618619, 620f, 645, 646t
constraints in, 647
decision variables in, 646647
803
graphic solution method for, 648652, 649f,

650f, 651f, 652f
model formulation in, 646648
objective function in, 647
OM application for, 646t
Linear programming model solution, 652, 653f,
654f
surplus variables for, 653
Linear regression, 527528, 528f
Linear trend line, as time series methods, 512514,
514f, 520t
Line balancing, 279, 283
heuristics in, 278
in product layout design, 274278
Line of influence, 198, 199f
Line of interaction, 198, 199f
Line of support, 198, 199f
Line of visibility, 198, 198f, 199f
LLC. See Low level code
Load, 696700, 698f, 699f
Load-distance technique
for facilities location, 306308, 307f, 308f
with OM Tools, 307, 308, 308f
Loading, 757
assignment method of, 758761, 760f
nonadjacent loads, 267268
overloads, 698699
scheduling and, 757761, 760f
Load leveling, 699700, 699f, 757
Load percent, 696697
Load profiles, 696, 697698, 698f
Load summary charts, 267269
Location, 740. See also Facilities location
of services, 300
Location analysis techniques, facilities location
and, 302308, 304f
Location factor rating, 302
Location factors, in U.S., 299300
Lockheed, 379
Logistics, 455
collaborative logistics, 459460
ITL, 465, 467
for Royal Caribbean, 457458
simulation application for, 599
UPS Worldwide Logistics, 298, 457
web-based international trade logistics systems,
465, 467
Longest processing time (LPT), 761, 767
Long-range forecast, 500
Loop layouts, 273274, 273f
Lopp, Michael, 162
Lost sales, as capacity adjustment strategy, 614
Lost sales costs, 85
Lot, in acceptance sampling, 148
Lot sizing, 689, 689t, 692694, 730, 731f
Lot tolerance percent defective (LTPD), 149150
Lower specification limit, 127
Low level code (LLC), 689, 689f
LPT. See Longest processing time
LS. See Latest start time
LT. See Lead time
LTPD. See Lot tolerance percent defective
MAD. See Mean absolute deviation
Maintainability, in rapid prototyping/concurrent
design, 164165
Maintenance, 738739, 739f, 739n6
Maintenance, repair and operation (MRO), 453f
Makespan, 762, 764
804
Index
Malcolm, D. G., 379

Malcolm Baldrige National Quality Award, 21, 68,
6973, 77, 87, 9394, 317
employee satisfaction and, 320321
human resources management and, 320321
PDCA and, 62
Management. See also specific types of
management
relevance of, 5
The Management and Control of Quality
(Evans and Lindsay), 129
Management coefficients model, 626
Manager, 3, 6, 244
project manager in, 368f, 371
Managing diversity, 329331
Manufactured products, 56, 89
services v., 7374
Manufacturing, 263f, 280f, 299
CAD/CAM, 168, 231, 231f, 246f, 247t
e-Manufacturing (eM), 246, 246f, 247t, 248t
green manufacture, 172173, 172f
Manufacturing cells, 724726, 725f
Manufacturing execution systems (MES), 706t,
773
Manufacturing systems, 599
Manufacturing technology, 246f, 247t, 248t
MAPD. See Mean absolute percent deviation
Marginal values, 655656, 656f
Market, 232t, 728, 728f
e-marketplaces, 454
upfront market, 523
Market analysis, in idea generation, 159
Marketing, 45, 4f
ERP and, 703, 703f
Marketing manager, 6
Marriott, 70, 195, 687f
Marriott Corporation, 195
Marriott International, Inc., 75
Martin Guitars, 231, 231f
Maslow, Abraham, 7, 8t, 319f
Mass customization, 21
Mass market, 232t
Mass production, 7, 230, 230f, 231, 231f, 232t
scheduling in, 756
Mass service, 195, 196f, 197f
Master Black Belts, in Six Sigma, 77f, 80
Master production schedule (MPS), 626, 627f,
682683, 682f, 683t, 684f
Master scheduling, 756
Material kanbans, 729
Material requirements planning (MRP), 626, 627f,
680f, 756. See also Capacity requirements
planning
assemble-to-order and, 682
capacity requirements planning and, 695700,
696f, 698f, 699f
complex products and, 681682
dependent demand and, 681682, 682f
discrete demand, 681, 682f
erratic orders and, 682
item master file in, 687688, 688t
lot sizing and, 692694
MPS and, 682683, 682f, 683t, 684f
MRP process in, 688692, 689t, 690f
outputs for, 694695, 694t, 695t
overloads in, 698699
product structure file in, 683685, 684f, 685t,
686f
time-phased bills and, 686, 686f
when to use, 680682, 681f
Materials management, ERP and, 703, 703f, 704f

Matrix, 368f, 370, 758759
C&E matrix, 65, 65f, 81f
product-process matrix, 229230, 230f
service-process matrix, 195, 196f, 196t
SWOT matrix, 19n2
tradeoff matrix, 176, 177f
Matrix organization, 370
Matsushita, 7
Maximax criterion, 35
Maximin criterion, 35
Mayo, Elton, 7, 8t
Maytag, 745
Mazda, 161
McDonalds, 19, 73, 75, 111, 159, 192, 193, 207f,
236f, 298, 329, 349f, 498, 614, 631, 744, 777
speed at, 238239
McGregor, Douglas, 7, 8t, 319f
Mean absolute deviation (MAD), 517519, 520t
Mean absolute percent deviation (MAPD), 519,
520t
Mean (x) chart, 119122, 120f, 121f, 121t, 122f,
128f
R-charts with, 123125
Mean squared error (MSE), 522
Mean time between failures (MTBF), 164
Mean time to repair (MTTR), 164165
Measure, in breakthrough strategy, 79
Medicare, 78
Memorial Hermann Hospital (Houston), 78
Mercedes, 5657, 57f
Merck, 18
Mercy Health System, 62
MES. See Manufacturing execution systems
Metamor, 705
Methods time measurement (MTM), 354355
Mexican Football Federation First Division, 96,
96f
Mexico, 468
MFN. See Most-favored-nation
Micromotion analysis, 337
Microsoft, 77, 701
Microsoft Dynamics, 706t
Microsoft Project, 368f, 382, 396, 397f
Gantt chart in, 396f, 397, 398f
PERT analysis with, 398, 398f, 399f
Microsoft Visio, 237f, 238, 747f
Minimax regret criterion, 3536
Minimum slack (SLACK), 761763, 767
Mission statement, 18
Mixed-model assembly, in lean production,
733734, 734f
Mixed-model assembly lines, 282, 283f
model sequencing and, 283284
U-shaped assembly lines as, 283, 284f
Mixed strategies, for aggregate planning
quantitative techniques, 619, 621
Mixed strategy, for capacity adjustment, 612
Model formulation. See also specific types of
models
in linear programming, 646648
Model sequencing, mixed-model assembly lines
and, 283284
Model to Raise Achievement and Close Gaps
(RACG), 62
Modular bills of material, 685, 686f
Modular design, 166
Monarcas Morelia, 96, 96f
Monitoring, 757
Gantt charts for, 768769, 769f
I/O control and, 769771, 771f
scheduling and, 768772, 769f, 771f
Monsanto, 701
Monte Carlo technique, 590592, 591t, 592f, 592t,
593t, 594, 594t
Most-favored-nation (MFN), 464
Most likely time, 389, 391
Motion study, 337338, 338t
Motivation, 319320, 319f
Motorola, 7, 69, 73, 7677, 80, 82, 111, 130, 230,
317, 321, 323
Movement, 722f
in demand behavior, 501
Move time, 730
Moving average, as time series method, 503506,
505f
MPS. See Master production schedule
MRO. See Maintenance, repair and operation
MRP. See Material requirements planning
MRP action report, 695, 695t
MSE. See Mean squared error
MTBF. See Mean time between failures
MTM. See Methods time measurement
MTTR. See Mean time to repair
Muda (waste), 722723, 722f, 723f
Multicollinearity, 532533
Multifactor productivity, 14, 14f
Multifunctional employees, 723724, 724f
Multiple regression, with Excel, 530533, 530f,
531f, 532f, 533f
Multiple-sampling plans, for acceptance sampling,
153
Multiple-server model
with Excel, 213f, 214
waiting line analysis and, 210214, 211f, 213f
Multistage process, 8990
Muthers grid, 269270, 270f
Nabisco, 117f, 440, 460
NAFTA. See North American Free Trade
Agreement
NASA, 77, 92t, 341
National Bicycle Industrial Company, 21
National Health Service, 116
National Institute of Standards and Technology,
92t
National Museum of American History, 369, 388
National Park Service, 702
National Quality Institute, 92t
National Quality Research Center, 21
Nation groups, 464, 465f
Navy, U.S., 379, 379f
Navy Special Projects Office, 379
NBC Universal, 523
Near shoring, 746
near-shore suppliers, 470471, 471f
Near-sourcing, 14
Nebraska Medical Center, 78
Net requirements, 689, 689t, 690
Netting, 688, 689t
New Balance Corporation, 1213
New Orleans Restoration Project, 399400, 400f
Nike, 704
reuse and, 173174, 174f
9/11, 378, 378f, 472473, 533
Nintendo, 10
Nissan, 321, 742
Nokia, 170
Nokia Siemens Networks, 373
Nominal value, 127
Nonadjacent, 267269
Nonadjacent loads, 267268
Nonconformance, 83, 87
Non-instantaneous receipt model, 567569, 567f
Index
Normal activity cost, 401402, 401f
Normal distribution, 113f
of project time, 393, 394f
Normal time, 350
North American Free Trade Agreement (NAFTA),
464, 468
North Carolina Baptist Hospital, 78
North Shore University Hospital, 64, 7980
Norton, David, 23
Norway, 10, 10f, 16f
Notified bodies, 97
Objective function, in linear programming, 647
Objectives, 22, 23t, 261262, 757
OBS. See Organizational breakdown structure
Observation sheet, for time studies, 352f, 353, 353f
OC. See Operating characteristic (OC) curve
OECD. See Organization for Economic
Cooperation and Development
OEM. See Original equipment manufacturer
Ohio, 299
Ohno, Taiichi, 721, 723724, 726, 737738
Olympic Stadium (London), 386, 386f
OM application, for linear programming, 646t
OM Tools
acceptance sampling with, 151
center-of-gravity technique with, 306, 306f
CPM/PERT and, 393395, 393f, 394f
decision analysis with, 3738, 37f
EOQ models with, 570, 570f
forecasting and, 526, 526f
load-distance technique with, 307, 308, 308f
location factor rating with, 303, 303f
probabilistic network analysis and, 393395,
394f
process capability with, 132, 133f
SPC with, 126127, 127f, 128f
time study number of cycles with, 354f
transportation model and, 480, 480f
work sampling and, 358f
On-demand (direct-response) delivery, 452
One-step expansion, incremental expansion v.,
259f
Open-Access system, in scheduling, 767768
Operating characteristic (OC) curve, 150151,
150f
Operating costs, of technology, 245
Operating requirements, in QFD, 179, 179f
Operations, 2, 2f, 4f, 5
SCOR, 442443, 442f, 443t
Operations management, 599
evolution of, 69
function of, 26
historical events in, 8t
manager responsibility in, 3
Operations Research, 8t
Operations sheets, 235, 236f
Operations strategy. See also Sales and operations
planning
core competencies in, 18
definition of, 17
firm positioning in, 1921, 20f
order winners/order qualifiers in, 1819, 19f
primary task in, 1718
strategy deployment in, 2125, 22f, 23t, 24f, 25f
Operator costs, 84
Opportunity cost matrix, 758759
Opryland Resort, 436
Optimal solution, 650
Optimistic time, 389, 391
coefficient of optimism, 36
Oracle, 170, 705, 706t

Order cycle, 564567, 564f, 565f. See also specific
types of orders
Order fulfillment, 455, 456f
Ordering costs, 558
Order qualifiers/winners, 1819, 19f
Organizational breakdown structure (OBS), 372,
373f
Organizational structure, 5f
Organization for Economic Cooperation and
Development (OECD), 14
Original equipment manufacturer (OEM), 453f
Outputs, 1617, 16f
for MRP, 694695, 694t, 695t
Outsourcing, 7, 8t, 1314
cost and, 228229
distribution outsourcing, 460
process planning and, 228229
procurement and, 452, 453f
Overbooking, 631, 633t
Overflow frequency, 768
Overloads, 698699
Overproduction, 722f
Overtime/undertime, as capacity adjustment
strategy, 613
Owens Corning, 701
Pabst Brewing Company, 21
PAC. See Production activity control
Package carriers, 461462, 461f
Palm, 440
Palm Inc., 454
Pareto, Vilfredo, 65
Pareto analysis, 63f, 6566, 66f
Park Place Lexus, 94
Participative problem solving, 71
Partnering, 69
Parts deployment, 178179, 179f
Part-time employees
as capacity adjustment strategy, 613614
Patagonia, 173
Patient scheduling, 767768
Pattern test, in control charts, 125
Payoff, 34
Payoff tables, 3436, 34f
Pay types, of employee compensation, 327
p-Charts, 113117, 115f, 125
PDCA. See Plan-do-check-act
PDM. See Product data management
Peak demand, as capacity adjustment strategy,
613
Pella Corporation, 745
Pentagon, project management at, 378, 378f
PeopleSoft, 325
PepsiCo, 330
Perceptions, of manufactured products, 56
Perceptual maps, 159, 159f
Performance, 262. See also Supply chain
performance measurement
judging, 350
KPIs, 2324, 23t, 439440
in manufactured products, 56
of time studies, 351
Performance management, in project control,
377378
Performance requirements of a task, 333
Performance specifications, 194f, 195
Periodic inventory systems, 560, 577, 578f
Periodic inventory system order quantity, 577
with variable demand, 578
805
Periodic order quantity (POQ), 692694

Periodic review system, 560
Perpetual system, 559, 560f
PERT. See Program evaluation and review
technique
PERT analysis, 398, 398f, 399f
Pessimistic time, 389, 391
coefficient of pessimism, 36
PFA. See Production flow analysis
Pfizer, 440
Phantom bills, 685
Philips Electronics, 427
Philips Optical Storage, 427
Philips Semiconductors, 427
Piecemeal analysis, of technology, 246
Piece-wage system, 318
incentive piece-rate system, 349, 351352
Pipelines, for transportation, 461f, 462463
Pixar, 159, 160
Pizza Hut, 6
Plan-do-check-act (PDCA), 6061, 61f, 76
Baldrige Awards and, 62
Plank, Kevin, 704705, 705f
Planned order receipts, 689, 689t
Planned order releases, 689, 689t, 692
Planned order report, 692, 694, 694t
Planning. See also specific types of planning
available-to-promise, 628629, 630f
collaborative planning, 628
hierarchical nature of, 626, 627f, 628629, 630f
PLM. See Product lifecycle management
Point of indifference, 234, 235f
Point-of-sale data, 433
Poisson distribution, 201202, 209, 212
Poke-yoke (visual quality control), 735, 736f
Polaris Missile Project, 379
Policy deployment
action plan in, 22f
in strategy deployment, 2123, 22f
POQ. See Periodic order quantity
Positioning strategy, 20, 20f
cost in, 19
flexibility in, 21
quality in, 21
speed in, 19, 22
SWOT matrix in, 19n2
Postal Service, U.S., 205, 455, 456f, 461
Postponement, distribution and, 457458
Poudre Valley Health System (PVHS), 70, 320
Power sources, 262
PPI. See Product Price Indices
PPM. See Defective parts per million
Precedence diagram, 274, 276277
Precedence relationship, 376377, 376f
Precedence requirements, 274
Predetermined motion times, 354355, 355t
Predictive maintenance, 739n6
Premium seats, 633t
Presidents Quality Award, 92t, 93
Prevention costs, 84, 85f
Preventive maintenance, 738
Price-downgrading costs, 84
Primary task, in operations strategy, 1718
Principles of motion study, 337338, 338t
Probabilistic activity times, 389392, 390f, 392f
Probabilistic analysis, of project network, 394395
Probabilistic network analysis, CPM/PERT
analysis/OM Tools and, 393395, 394f
Probabilities
decision analysis with, 3839
decision analysis without, 3436, 34t
Probability distribution, of demand, 591t
806
Index
Problem solving
DMAIC for, 7880
employees for, 72
Process(es)
definition of, 228
of forecasting, 502503, 502f
function to, 242f
types of, 232t
Process analysis, 235, 706
Process capability, 128129
design specifications and, 129f
with Excel/OM Tools, 132, 132f
measures of, 130132
6-sigma quality in, 129f, 130
Process capability index (Cpk), 131132
Process capability ratio (Cp), 130132
Process control, 67, 246f, 248t, 441442.
See also Statistical process control
Process costs, 84
Process downtime costs, 84
Process failure costs, 84
Process flowcharts, 235236, 238f, 239f, 241f
definition of, 335
with Excel, 237f, 239
for jobs, 335, 336f
process map v., 238, 240f
as quality tool, 63f, 64
swimlane chart, 238, 240f
symbols for, 335f
Process improvement teams, 7273
Process industries, 756
Processing, 722f
Processing time, 730763, 767
Process innovation
definition of, 241, 241n1
steps in, 241244, 241f, 242f, 242n2, 243f, 243t,
244t
Process layouts
in basic layouts, 262264, 263f, 264f, 265t
with Excel, 270f
Process layouts design
block diagram in, 267269
relationship diagramming in, 269272, 270f,
271f
Process manager, 244
Process map, 238, 240f
high-level process map, 242243, 242f, 243f
Process planning, 246f, 247t. See also Process
flowcharts
definition of, 228
process analysis in, 235
process plans in, 235
process selection in, 229235, 229f, 230f, 231f,
232f, 232t
in QFD, 179, 179f
Process plans, in production design, 167
Process selection
with breakeven analysis, 230236, 231f, 232f,
232t
in process planning, 229235, 229f, 230f, 231f,
232f, 232t
Process strategy, 228
Process technology, 246f, 247t
Procter & Gamble, 170, 430
Procurement, 246f, 247t, 422, 425f, 451,
453455
outsourcing and, 452, 453f
Producers risk, 149150
Product configuration, 246f, 247t
Product cost per unit, 89
Product data management (PDM), 246f, 247t
Product design. See also Design technology

design process in, 157160, 158f, 159f
for environment, 170181, 171f, 172f, 173f,
175f, 176f, 177f, 178f, 179f, 180f
rapid prototyping/concurrent design in,
160167, 161f, 162f, 163f, 164f, 164n1,
166f
for robustness, 179181, 180f
technology in, 167170, 168f, 169t, 170f
Product-design costs, 84
Production. See also Aggregate planning
quantitative techniques
ERP and, 703, 703f, 704f
Production activity control (PAC), 757
Production control department, 757
Production design
definition of, 165
DFM in, 167
final design/process plans in, 167
modular design in, 166
in rapid prototyping/concurrent design,
165167, 166f
simplification in, 166, 166f
standardization in, 166
Production flow analysis (PFA), 278280, 279f,
280f
Production index, 85
Production kanban, 727
Production quantity model, 567569, 567f
Production systems, 599, 721, 743
Production workers, hourly compensation costs
for, 10, 10f
Productivity, 15f, 92t, 262
calculating, 15
competitiveness and, 1417
definition of, 14, 87
labor hours and, 16, 16f
measures of, 14, 14f
product manufacturing cost and, 8889
QM and, 8791
quality impact on, 88
yield v., 88
Productivity growth (2008), 16, 16f
Product layout design, 274278
Product layouts, 264265, 264f, 265f, 265t
Product liability costs, 85
Product lifecycle management (PLM), 168, 246f,
247t, 706t, 708, 708f
Product manufacturing cost
product cost per unit in, 89
product yield in, 89
Product Price Indices (PPI), 436
Product-process matrix, 229230, 230f
Product return costs, 85
Product structure file, 683685, 684f, 685t, 686f
Product technology, 246f, 247t
Professional service, 195, 196f, 197f
Profit, 232
sensitivity range for, 656657, 657f
Six Sigma and, 82, 82f, 83f
Profit sharing, 328
Program evaluation and review technique (PERT),
379. See also CPM/PERT
Prohibited route, 479
Projects, 79, 229, 230f, 231, 231f, 232t, 367
scheduling for, 756
Project control
communication in, 378
cost management in, 377
enterprise project management and, 379
in project management, 377379, 378f
QM in, 377
time management in, 377
Project crashing, 400402, 401f, 402f, 403f
time v. cost in, 403404, 404f
Projected on hand, 689, 689t, 694t
Project management
CPM/PERT in, 379388, 379f, 380f, 381f, 383f,
384f, 385f, 386f, 387t, 388f
global/diversity issues in, 373375
9/11 and, 378, 378f
plan elements and, 369
probabilistic activity times in, 389392, 390f,
392f
process of, 368f
project control in, 377379, 378f
project crashing in, 400403, 401f, 402f, 403f
project manager in, 368f, 371
project planning in, 367, 368f, 369373, 372f,
373f
project return, 369370
project team in, 368f, 370, 374
RAM in, 368f, 372, 373f
scheduling in, 375377, 376f
scope statement in, 371
SOW in, 371
WBS in, 368f, 371372, 372f, 378
Project network
CPM/PERT and, 380, 380f
probabilistic analysis of, 394395
Project planning, 367, 368f, 369373, 372f, 373f
Project scheduling, 375
Gantt chart for, 376377, 376f
Project team, 368f, 370, 384
PROMODEL, 272
Prototyping/concurrent design, 167. See also
Rapid prototyping/concurrent design
Psychographics, 192
Psychology, 205206, 205f
Pull system, 726, 744, 744f. See also Kanban
Purchase cost, of technology, 245
Purchase orders, 694
Purchasing agents, 466f
Pure strategies
for aggregate planning quantitative techniques,
616617, 617f, 618f
for capacity adjustment, 612
Purodenso Manufacturing, 727f
Push system, 726
PVHS. See Poudre Valley Health System
Pyramid of Human Needs, 319f
QAD, 706707
QFD. See Quality function deployment
QIT. See Quality improvement teams
QLF. See Quality loss function
QM. See Quality management
QMS. See Quality management system
QRD. See Quality resources department
Qualitative classification method, 111
Qualitative forecast methods, 496
Quality, 129f, 130, 368f. See also Statistical
process control
AOQ/AOQL, 152, 152f, 153f
AQL, 149150
ASQ, 21, 55, 69, 92t, 97
China v., 472
of conformance, 179
consistency of, 6, 180
from customers perspective, 56
definition of, 55
of design, 56, 179
design quality reviews, 169170, 169t, 170t
Index
in distribution, 455
employees role and, 7073
house of, 175, 175f, 176f, 177f, 178f, 179f
for manufactured products, 56
meaning of, 59f
poke-yoke and, 735, 736f
in positioning strategy, 21
quality circles and, 72, 72f, 323
in services, 5657, 57f, 7375, 74f, 76f
SPC and, 110111
Toyota and, 743
TQM, 8t, 6768, 75, 82, 109, 149
Quality awards, 92t, 93t
Malcolm Baldrige National Quality Award, 21,
62, 68, 6973, 77, 87, 9394, 317, 320321
Quality circles, 72, 72f, 323
Quality-control checksheets, 235
Quality costs, 83
for good quality, 84
measuring/reporting, 85, 85f, 86f, 87
of poor quality, 8485
quality-cost relationship, 87
Quality function deployment (QFD), 81f
benefits of, 179
competitive assessment in, 175f, 176
customer requirements in, 175179, 175f, 176f,
177f, 178f, 179f
design characteristics in, 176, 176f
in environment design, 173179, 174f, 175f,
176f, 177f, 178f, 179f
house of quality in, 175, 175f, 176f, 177f, 178f,
179f
operating requirements in, 179, 179f
parts deployment in, 178179, 179f
process planning in, 179, 179f
target values in, 177178, 177f
tradeoff matrix in, 176, 177f
Quality improvement teams (QIT), 7273
Quality Is Free (Crosby), 82
Quality loss function (QLF), 180181, 180f
Quality management (QM), 67, 75, 110, 377
customer satisfaction and, 68, 68f
forecasting and, 498
green supply chains and, 429430, 430f
human resources and, 317318
inventory and, 556557
inventory management and, 555
in supply chain, 6869
Quality management system (QMS), 6869.
See also Six Sigma
evolution of, 5962, 60f, 60t, 61f, 61t
Quality of conformance, 58
Quality planning costs, 84
Quality-productivity ratio, 9091
Quality resources department (QRD), 116
Quality Revolution, 7, 8t
Quality tools, 6263
cause-and-effect diagrams as, 63f, 6465, 64f,
65f
cause-and-effect matrix as, 65, 65f, 81f
checksheets/histograms as, 63f, 65
Pareto analysis as, 63f, 6566, 66f
process flowcharts, 63f, 64
scatter diagrams as, 63f, 66
Quality Without Tears (Crosby), 87
Quantitative classification method, 111
Quantitative forecast methods, 496
Quantitative techniques, 199. See also Aggregate
planning quantitative techniques
Quantity, 560f, 567569, 567f, 577578, 579f, 599,

632634, 633t, 692694. See also Economic
order quantity; Material requirements
planning
Quantity discounts, 570
with constant carrying cost, 571573, 571f
Quasar, 7
Queue, 200, 202, 209f, 210, 210f. See also Waiting
lines
Queue discipline, 202
Queuing theory, 200
Quick setups, 730732, 731f, 732f, 733f
RAB. See Registrar Accreditation Board
RACG. See Model to Raise Achievement and
Close Gaps
Radio frequency identification (RFID), 246f, 248t,
433434, 434f, 435f, 740, 740n7, 768
Railroads, 460, 461f
RAM. See Responsibility assignment matrix
Ramachandran, Vignesh, 687
Random numbers, 591, 592t, 593t
Random variations, 500, 500f
Range (R-) chart, 119, 121t, 122123, 127f, 132f
x charts with, 123124, 125
Rapid prototyping/concurrent design, 160, 161f,
162, 162f
form design in, 161
functional design in, 163
maintainability in, 164165
production design in, 165167, 166f
reliability in, 163164, 163f, 164f, 164n1
usability in, 165
Rated capacity, 696
R-chart. See Range (R-) chart
Recession, 271272
Recycling/re-use, 171, 173, 261262
Redback Networks, 707
Redbox, 193194
Regional location factors, 299300
Registrar Accreditation Board (RAB), 97
Regression forecasting methods, 501, 526
correlation, 529
linear regression, 527528, 528f
multiple regression with Excel, 530533, 530f,
531f, 532f, 533f
regression analysis with Excel, 529530, 529f,
530f
Regression (causal) forecasting methods, 501
Relationship diagram, 269272, 270f, 271f
Reliability, 56, 229
in rapid prototyping/concurrent design,
163164, 163f, 164f, 164n1
Remington-Rand, 379
Reorder cards, 559
Reorder point, 573
safety stocks and, 574, 574f, 575f
service level and, 574575
with variable demand, 575576, 576f
Replacement analysis, of technology, 245
Request for quotes (RFQ), 168
Rescheduling notices, 694
Research and development (R&D), 159
Resource planning, 679695, 680f, 681f, 682f,
683t, 684f, 685t, 686f, 687f, 688t, 689t, 690f,
694t, 695t
Resource requirements plan, 627f, 628, 700
Responsibility assignment matrix (RAM), 368f,
372, 373f
Retail facilities, 298
807
Return on investment (ROI), 369

Revenue, 232
total revenue, 232233, 234f
Revenue enhancement, of technology, 245
Revenue management, 631634, 632f, 633t
Reverse auctions, 454455
Reverse engineering, in idea generation, 159
Reverse globalization, 470472
Rework costs, 84
RFID. See Radio frequency identification
RFQ. See Request for quotes
Rim requirements, 476477
Risk, 34, 149150, 245
Risk analysis/quality control, 368f
Risk pooling, 427428
Ritz-Carlton Hotel Company, 21, 70, 7475, 74f,
76f, 111f, 117118, 317, 320, 349f
Robots, 246f, 247t
Robust design, 179181, 180f
ROI. See Return on investment
Rolls Royce, 230
Rough-cut capacity plan, 627f, 628, 700
Row reductions, 758
Royal Caribbean, 457458
Royal Mail (United Kingdom), 78
Royal Shakespeare and Company Theater, 369,
388, 388f
Run, in control charts, 125
Russian Federation, 11f
Saas, 709
Safety, 56, 472
Safety stocks, 574, 574f, 575f
Sales, 85, 614, 703, 703f
Sales and operations planning (S&OP), 608611,
609f, 610f, 611f
Sales index, 85
Salinas, Ricardo, 96
Sample, 109
Sample points, 112113, 112f
Sample size determination, 125126
Sampling plan, 149
Sanders, Nicole, 742
SAP, 438, 705706, 706t, 709, 772
SAP AG, 701
SAS Airlines, 193
Saudi Arabia, 370
Scatter diagrams, 63f, 66
SCC. See Supply Chain Council
Scheduled receipts, in MRP process, 689, 689t
Scheduling, 6, 324, 368f, 383386, 383f, 384f,
385f, 626, 627f, 694, 700, 738, 756
advanced planning and, 772774, 773f
backward/forward scheduling, 686, 686f
for employees, 777779, 778f
loading and, 757761, 760f
monitoring and, 768772, 769f, 771f
patient scheduling, 767768
in project management, 375377, 376f
sequencing and, 761768, 764f, 765f, 766f
theory of constraints and, 774775, 776f, 777
Schlitz Brewing Company, 21
Scientific management, 7, 8t, 318
SCM. See Supply chain management
Scope, 368f
Scope statement, 371
SCOR. See Supply Chain Operations Reference
(SCOR) model
Scrap costs, 84
SDR. See Search decision rule
Search decision rule (SDR), 623
Sears, 317
808
Index
Seasonal adjustments, as time series methods,

514516, 514f, 517f
Seasonal factor, 515516
Seasonal pattern, 500f, 501
Secure freight initiative, 473
Sensitivity analysis, 651, 655
Sensitivity range, 656657, 656f, 657f
Sequencing, 278, 757
model sequencing, 283284
one serial process and, 762764, 764f
rule selection for, 766768
scheduling and, 761768, 764f, 765f, 766f
two serial processes and, 764766, 766f
Sequencing rules, 764f, 766767, 766768
Sequential decision trees, 3941, 40f, 41f
Service(s), 111, 300, 556, 574575. See also Lean
services
aggregate planning for, 630634, 632f, 633t
characteristics of, 191193, 191f
connectivity/integration and, 708709
customer contact v., 192, 196f, 196t
goods v., 191, 191f, 193
human resources v., 316
manufactured products v., 7374
process layout in, 263f
professional service, 195, 196f, 197f
psychographics and, 192
quality in, 5657, 57f, 7375, 74f, 76f
time/timeliness of, 56, 74, 202, 209f, 210
Serviceability, 164165
Service blueprinting, 198, 198f, 199f
Service concept, 194195, 194f
Service defect, 111
Service design, 196
front office/back office in, 198f, 199, 199f
process of, 193195, 193f, 194f
quantitative techniques in, 199
service blueprinting in, 198, 198f, 199f
service economy and, 190, 190f, 191f
service-process matrix in, 195, 196f, 196t, 197,
197f
Service facilities, 298
Service factory, 195, 196f, 197f
Service improvement, 208210, 209f, 210f.
See also Waiting line analysis
Service layouts design, 273274, 273f
Service level, 556, 574575, 630
ServiceMaster, 192
Service operations, 599
Service-oriented architecture (SOA), 709
Service package, 194f, 195
Service-process matrix, 195, 196f, 196t, 197,
197f
Service providers, 1314, 422, 556
Servicescapes, 199
Service shop, 195, 196f, 197f
Service times, 202, 209f, 210
SETUP. See Similar setup
Setup times, 730732, 731f, 732f, 733f
7-Eleven, 432433
SFC. See Shop floor control
Shadow prices, 655656, 656f
Shakespeare, William, 388
Sharp HealthCare (San Diego), 78, 9394, 320
Shewhart, Walter, 60, 60t
Shingo, Shigeo, 731
Shop floor control (SFC), 757
Shop floor scheduling, 626, 627f
Shortage costs, 558559
Shortest processing time (SPT), 761763
for sequencing rule, 767
Short- to mid-range forecast, 499500

Shouldice Hospital, 195
Siemens, 469, 706t
Sierra Club, 430
Signal kanbans, 728729, 728f
Signal-to-noise ratio, 180
Similar setup (SETUP), 761
Simplex method, for linear programming model
solution, 652
Simplification, in production design, 166, 166f
Simulation, 274
decision making with, 596597, 597f, 598f
with Excel, 594598, 595f, 596f, 597f, 598f
Monte Carlo technique, 590592, 591t, 592f,
592t, 593t, 594, 594t
sequencing rule and, 766767
Simulation application, 598600
Single-factor productivity, 14, 14f
Single-minute exchange of dies (SMED), 731732
Single order quantities, 632634, 633t
Single-sample attribute plan, 149
Six Sigma, 64, 68
Black Belts/Green Belts in, 77f, 80
breakthrough strategy of, 7980
champion in, 79
definition of, 77
DFSS for, 80
goal of, 7677, 77f
highlights of, 78
improvement projects of, 79
lean and, 746
Lean Six Sigma, 8082, 81f
process of, 78
profit and, 82, 82f, 83f
tools of, 81f
SLACK. See Minimum slack
Slack, 376, 391392
activity slack and, 386387, 387t
minimum slack, 761763, 767
Slack variables, 653, 653f, 654f
SLIM. See Store Labor and Inventory Management
Smallest critical ratio (CR), 761
Small lots, in lean production, 730, 731f
SmartDraw, 238
SMED. See Single-minute exchange of dies
Smith, Adam, 6, 8t
Smoothing constant, 507. See also Adjusted
exponential smoothing; Exponential
smoothing
Snead, John, 701702
SOA. See Service-oriented architecture
Society for Human Resource Management, 329
Sony, 10, 77, 430
S&OP. See Sales and operations planning
Sourcing, 14, 172, 271272, 452, 469
SOW. See Statement of work
Space, 608, 649
SPC. See Statistical process control
Special Operations Command, U.S., 70
Speed, 19, 22, 229. See also Time studies
in distribution, 455
at McDonalds, 238239
Spine layouts, 273274, 273f
SPT. See Shortest processing time
Sri Lanka, 10, 10f
Standard for exchange of product model data
(STEP), 246f, 247t
Standardization, 166, 231, 231f. See also International Organization for Standardization
Standard time, 318, 348350, 354
Starbucks, 75
Statement of work (SOW), 371
State University of New York at Buffalo, 373

Statistical process control (SPC)
basics of, 109112
with Excel/OM tools, 126127, 127f, 128f
QM and, 110
quality measures and, 110111
services and, 111
Statistical Process Control (SPC) Chart, 81f
Stay on schedule, 368f
Steady state, 204, 204t
Steady-state result, 594
STEP. See Standard for exchange of product model
data
Stockout, 574
Stopwatch time study, 349352, 349f, 352f, 353f
Store Labor and Inventory Management (SLIM),
274
Store layouts, 273274, 273f
Strategic analysis, in feasibility study, 160
Strategic planning, 17f, 499, 616617, 617f, 618f,
621. See also specific types of strategies
Strategy deployment
balanced scorecard in, 2324, 23t, 24f, 78
in operations strategy, 2125, 22f, 23t, 24f,
25f
policy deployment in, 2123, 22f
Strengths, weaknesses, opportunities, threats
(SWOT matrix), 19n2
Subcontracting, 613
Sunny Fresh Foods, 93, 320
Supermarkets (kanban racks), 728, 728f
Supplier kanbans, 729
Supplier networks, in lean production, 739740
Suppliers, 4, 4f
near-shore, 470471, 471f
as upstream, 421
Supply chains, 6869, 421423, 423f. See also
specific types of supply chains
Supply Chain Council (SCC), 442
Supply chain enabler, information technology as,
431437, 431f, 434f, 435f, 436f
Supply chain integration, 437438, 438t
Supply chain management (SCM), 89, 9f, 6869,
246f, 248t, 423, 424f, 707708, 708f
bullwhip effect and, 426427, 426f
forecasting and, 496499, 497f
inventory management in, 555556
risk pooling and, 427428
software for, 438
supply chain uncertainty/inventory, 424426,
425f
Supply Chain Operations Reference (SCOR)
model, 442443, 442f, 443t
Supply chain performance measurement
KPIs in, 439440
process control in, 441442
SCOR and, 442443, 442f, 443t
Supply chain uncertainty, 424426
Surplus variables, for linear programming model
solution, 653
Sustainability. See also Green supply chains
at Apple, 441
costs and, 324, 372373, 428430
at Hewlett-Packard, 467
packing materials and, 456
Sustainable competitive advantage, 18
Swimlane chart, 238, 240f
Swiss Quality Award, 93t
SWOT matrix. See Strengths, weaknesses,
opportunities, threats
Synchronous manufacturing, 774777, 776f
Sysco Corporation, 462
Index
Taco Bell, 507f
Taguchi, Genichi, 179180, 180f
Taiwan, 16f
Taiwan Semiconductor, 615
Takeback laws, for recycling/re-use, 171
Takt time, 724725
Tardiness, 762763
Target (objectives), 22
Target (store), 18, 298, 434, 457, 462
Target values, 127
in QFD, 177178, 177f
Tariffs, 464465
Task analysis, 333, 333t
Tasks, 318
Tata Consultancy Services, 13
Tata Motor, 170
Taylor, Frederick W., 7, 8t, 81, 318, 337338,
348349
Teams, 7273, 330, 374
project team, 368f, 370, 384
self-directed teams, 323
Technical analysis, in feasible study, 160
Technology, 278, 278f, 334f. See also Design
technology; Information technology
costs and, 245246
eM, 246, 246f, 247t, 248t
GIS, 301302
human resources v., 316
primer for, 246, 246f, 247t, 248t
in product design, 167170, 168f, 169t, 170f
Telecommuting, 324326, 325f
Temporary employees, 325327
Terrorism, 378, 378f, 472473, 533
Test equipment costs, 84
Testing costs, 84
Texaco, 77
Texas Instruments, 454
ThedaCare, 745
Theory of constraints (TOC), 774775, 776f, 777
Third-party service providers (3PL), 556
3M, 97
3PL. See Third-party service providers
Time, 164165, 324, 352f, 353f, 560, 613, 686,
686f, 767
cellular layouts and, 180
C/O as, 747, 747f
constant service times, 209f, 210
cost v., 377, 403404, 404f
crash time, 401403, 401f, 402f, 403f
C/T as, 274275, 747, 747f, 748f
cumulative lead time, 683
demand behavior and, 500501, 500f
EF as, 383f, 384385
ES as, 383385, 383f
flow time, 275, 762
JIT, 7, 8t, 22, 721, 744, 744f
lead time, 689, 689t, 700
most likely time, 389, 391
normal distribution of, 393, 394f
optimistic time, 389, 391
part-time employees, 613614
pessimistic time, 36, 389, 391
predetermined motion times, 354355, 355t
probabilistic time estimates, 389392, 390f,
392f
service and, 56, 74, 202, 209f, 210
setup times, 730732, 731f, 732f, 733f
shifting demand and, 614
S&OP and, 608
SPT, 761763
standard time, 348350
stopwatch time study, 349352, 349f, 352f,

353f
takt time, 724725
Time-based competition, 19
Time fence, 683
Time frame, in forecasting, 499500
Time management, in project control, 377
Time measurement units (TMUs), 355, 355t
Time-phased bills, 686, 686f
Time phasing, 689
Time series forecasting, with Excel, 524526,
524f, 525f, 526f
Time series methods
adjusted exponential smoothing as, 510512,
512f, 520t
exponential smoothing as, 507510, 507f, 509f,
520t
linear trend line as, 512514, 514f, 520t
moving average as, 503506, 505f
seasonal adjustments as, 514516, 514f, 517f
weighted moving average as, 506
Time studies, 348
elemental standard time files in, 354
number of cycles in, 353, 354f
observation sheet for, 352f, 353, 353f
performance of, 351
predetermined motion times in, 354355, 355t
stopwatch time study in, 349352, 349f, 352f,
353f
Titleist, 168f
TMS. See Transportation management system
TMUs. See Time measurement units
TOC. See Theory of constraints
Tolerance, 127128, 149150, 180, 180f
Tolerance stack-ups, 180
Tooker, Gary L., 82
Toshiba, 615
Total factor productivity, 14, 14f
Total productive maintenance (TPM), 738739,
739f
Total quality management (TQM), 8t, 6768, 75,
82, 109, 149
Total revenue, 232233, 234f
Toyoda, Eiji, 722
Toyota, 7, 69, 73, 81, 428, 440, 733734
Camry, Corolla, Lexus, 166
lean production and, 721723, 727f, 729, 731,
738741, 743, 745
quality and, 743
Toyota Production System, 721, 743
TPM. See Total productive maintenance
TQM. See Total quality management
Tracking signal, 520522, 521f
Trader Joes, 20, 20f
Trading groups, 464465, 465f
Training costs, 84, 282
Transportation, 461f, 462463, 722f
Transportation management system (TMS), 458f,
459
Transportation method, for aggregate planning
quantitative techniques, 623626, 623t,
627f
Transportation model, 475476, 477f
Excel and, 477480, 478f, 479f
prohibited route in, 479
Transportation Security Administration, 533
Transshipment model, 480
Excel and, 481482, 481f, 482f
Trend, 500, 500f
Triage Consulting Group, 322
Trucking, 460, 461f
809
t-Test, 81f
20th Century Fox, 194
Two-bin system, 726, 727f
Tyrone Motors, 734f
Tyson Foods, 332
Under Armour, 704705, 705f
Undercapacity scheduling, 738
Undertime, as capacity adjustment strategy, 613
Uniform production levels, in lean production,
732735, 734f
Unisys, 330, 500
United States (U.S.), 70, 205, 261, 320, 373, 379,
379f, 455, 456f, 461
GDP per capita of, 10, 11f
global supply chain trends and, 468
hourly compensation costs in, 10, 10f
input/output percent change in, 1617, 16f
Japan v., in lean production, 741742
productivity growth (2008), 16, 16f
regional/community location factors in,
299300
service economy in, 190, 190f, 191f
Unit load, 267
Universal product code (UPC), 540f, 559
Universal Studios, 194, 737
UPC. See Universal product code
Upfront market, 523
Upper specification limit, 127
UPS, 74, 77, 325327, 433, 455, 456f, 461
diversity at, 330331
UPS Worldwide Logistics, 298, 457
Urban Outfitters, 271272, 271f
U.S. See United States
Usability, in rapid prototyping/concurrent design,
165
U-shaped assembly lines, 283, 284f
USS George Washington, 379
Utilization, 696
Value-added tax (VAT), 465
Value analysis, 169
Value chains, 2, 422423
Value engineering, 169
Value stream mapping (VSM), 746747, 747f,
748f
Vanity Fair, 702
Variable cost, 230
Variable demand, 578
reorder point with, 575576, 576f
Variable measures, 111
VAT. See Value-added tax
Vendor-managed inventory (VMI), 459, 556,
561, 563
Vertical integration, 228
Vertical job enlargement, 322
Virginia Department of Transportation, 392
VISA, 74
VisFactory, 272
Visual control, in lean production, 735, 736f
VMI. See Vendor-managed inventory
VoC. See Voice of the customer
Vodafone, 324
Voice of the customer (VoC), 69, 70, 79. See also
Quality function deployment
Volume, 230231, 231f
Volvo, 78, 230
W. E. Demings 14 points, 61, 61t, 316, 321, 323
Waiting, 722f
at Disney World, 205206, 205f
Waiting lines, 599
810
Index
Waiting line analysis

cost and, 204205, 204f
elements of, 200201, 201f, 203f
multiple-server model and, 210214, 211f, 213f
operating characteristics in, 200, 204, 204t
psychology and, 205206, 205f
steady state in, 204, 204t
waiting line models and, 206207, 207f, 209f,
210f
Waiting line system
arrival rate in, 201, 201f
balking in, 201
basic single-server model in, 203f, 206208
basic waiting line structures in, 202203, 203f
calling population in, 200201, 201f
channels in, 202203, 203f
finite queue in, 202, 209f, 210, 210f
infinite queue in, 202
jockeying in, 201
phases in, 202, 203f
Poisson distribution in, 201202, 209, 212
queue discipline in, 202
queue in, 200
reneging in, 201
service times in, 202
Waiting time, 730
Walker, Morgan R., 379

Walmart, 18, 172, 194, 434, 459, 462, 631, 702, 744
going green at, 428429
Warehouse management systems (WMS),
458459, 458f
Warehouse optimization, 458f, 459
Warner Brothers, 194
Warranty claims costs, 85
Waste, 170171, 722723, 722f, 723f. See also
Value stream mapping
Water, transportation by, 461f, 462, 466f
WBS. See Work breakdown structure
Wealth of Nations (Smith), 6
Web-based international trade logistics systems,
465, 467
Weeks of supply, 440
Wegmans, 440
Weight center technique, 304305, 304f
Weighted moving average, 506
Whitney, Eli, 6, 8t
WIPRO, 13
Withdrawal kanban, 727
WMS. See Warehouse management systems
Womack, James, 721
Work breakdown structure (WBS), 368f, 371372,
372f, 378
Work elements, 274

Worker analysis, 333334, 333t
Worker-machine chart, 336337, 337f
Workers. See Employees
Work measurement, 348
Work methods, 335
Work package, 768
Work sampling, 356357, 358f
Workstations, 274278
World Trade Organization (WTO), 9, 464, 468,
470
Wright, T. P., 338339, 341
WTO. See World Trade Organization
X chart. See Mean (x) chart

Xerox, 77, 159, 246
recycling/reuse at, 173
XML. See Extensible markup language
Yard management, 458f, 459
Yield, 8890
Yield management. See Revenue management
Zara, 19, 272, 745
Zero defects, 76, 87
Zoran, 615

C Operations Management - Appendices and Index

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Appendix A

NORMAL CURVE AREAS

TABLE A.1 Normal Curve Areas

Solutions to Selected Odd-Numbered Problems

SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS

p ! 0.151, UCL ! 0.258, LCL ! 0.044; out of control

Solutions to Selected Odd-Numbered Problems

p ! .22, UCL ! .45, LCL ! 0; in control

Lq ! 1.33, Wq ! 4.80 min; not good service

Solutions to Selected Odd-Numbered Problems

a. 135; b. 70; c. switch 4 and 5, or 1 and 3;

(multiple solutions); 4 workers; 77.5%;

H, I, J ; 3 workers, 93.94% (multiple solutions)

F ; no, students would have to work more than

5 days a week (multiple solutions)

K ; (multiple solutions); 75%

Solutions to Selected Odd-Numbered Problems

t100 ! 20.5 min; 16,424.1 min per week

Inventory turns ! 14.2; days of supply ! 25.94

Solutions to Selected Odd-Numbered Problems

Solutions to Selected Odd-Numbered Problems

F9 ! 492.31, F9 (adjusted) ! 503.27; MAD ! 49.36

a. Q ! 120.1; b. TC ! $15,612.49; c. 12.49 orders; d. 29.14 days

Solutions to Selected Odd-Numbered Problems

Solutions to Selected Odd-Numbered Problems

Jones to Nurse 1, Hathaway to Nurse 2, Sweeney to Nurse 3, Bryant to Nurse 4

American National Standards Institute (ANSI), 94,

Cisco Systems, 170, 332, 430

Continuous replenishment programs (CRP), 556

Decision variables, 646647

Disney Store, 273

basic single-server model with, 209, 209f, 210f

Failure, 164. See also Defects

Grocery stores, 111

motion study and, 337338, 338t

KPIs. See Key performance indicators

graphic solution method for, 648652, 649f,

Malcolm, D. G., 379

Materials management, ERP and, 703, 703f, 704f

Oracle, 170, 705, 706t

Periodic order quantity (POQ), 692694

Product design. See also Design technology

Quantity, 560f, 567569, 567f, 577578, 579f, 599,

Return on investment (ROI), 369

Seasonal adjustments, as time series methods,

Short- to mid-range forecast, 499500

State University of New York at Buffalo, 373

stopwatch time study, 349352, 349f, 352f,

Waiting line analysis

Walker, Morgan R., 379

Work elements, 274

X chart. See Mean (x) chart

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