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THIRTEENTHEDITIONO P E R AT I O N SMANAGEMENTSustainability and Supply Chain ManagementJ AYHEIZERJesse H. Jones Professor of Business AdministrationTexas Lutheran UniversityB A R RYRENDERCharles Harwood Professor of Operations ManagementGraduate School of BusinessRollins CollegeC H U C KMUNSONProfessor of Operations ManagementCarson College of BusinessWashington State UniversityA01 HEIZ3626 13 SE FM.indd 110/31/18 10:46 PM

Vice President, Business, Economics, and UK Courseware: DonnaBattistaDirector of Portfolio Management: Stephanie WallEditorial Assistant: Linda Siebert AlbelliVice President, Product Marketing: Roxanne McCarleyProduct Marketing Assistant: Marianela SilvestriManager of Field Marketing, Business Publishing: Adam GoldsteinExecutive Field Marketing Manager: Thomas HaywardMarketing Coordinator: Erin RushVice President, Production and Digital Studio, Arts and Business: EtainO’DeaDirector, Production and Digital Studio, Business and Economics: AshleySantoraManaging Producer, Business: Melissa FeimerContent Producer: Yasmita HotaOperations Specialist: Carol MelvilleDesign Lead: Kathryn FootManager, Learning Tools: Brian SuretteSenior Learning Tools Strategist: Emily BibergerManaging Producer, Digital Studio and GLP: James BatemanManaging Producer, Digital Studio: Diane LombardoDigital Studio Producer: Mary Kate MurrayDigital Studio Producer: Alana ColesDigital Content Project Lead: Courtney KamaufFull Service Project Management: Integra Software ServicesInterior Design: Integra Software ServicesCover Design: Integra Software ServicesCover Art: Used with permission of Celebrity Cruises Inc.Printer/Binder: LSC Communications, Inc./KendallvilleCover Printer: Phoenix Color/HagerstownMicrosoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and relatedgraphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of anykind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warrantiesand conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shallMicrosoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss ofuse, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performanceof information available from the services.The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically addedto the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s)described herein at any time. Partial screen shots may be viewed in full within the software version specified.Microsoft and Windows are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsoredor endorsed by or affiliated with the Microsoft Corporation.Copyright 2020, 2017, 2014 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. Thispublication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in aretrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For informationregarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department,please visit www.pearsoned.com/permissions/.Acknowledgments of third-party content appear on the appropriate page within the text.PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/orother countries.Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respectiveowners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Suchreferences are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of suchmarks, or any relationship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors.Library of Congress Cataloging-in-Publication DataNames: Heizer, Jay, author. Render, Barry, author. Munson, Chuck, author.Title: Operations management : sustainability and supply chain management /Jay Heizer, Jesse H. Jones Professor of Business Administration, TexasLutheran University, Barry Render, Charles Harwood Professor of Operations Management, Graduate School of Business,Rollins College, Chuck Munson, Professor of Operations Management, Carson College of Business, Washington State University.Other titles: Production and operations managementDescription: Thirteenth edition. Boston : Pearson, [2020] Original edition published under the title: Production and operations management. Includes bibliographical references and index.Identifiers: LCCN 2018035109 ISBN 9780135173626 ISBN 0135173620Subjects: LCSH: Production management.Classification: LCC TS155 .H3725 2020 DDC 658.5–dc23LC record available at https://lccn.loc.gov/20180351091  18This text is available in two versions: Operations Management, 13th edition, a hardcover, and Principles of Operations Management, 11th edition, apaperback. Both books include the identical core Chapters 1–17. However, Operations Management, 13th edition also includes a Part IV with sevenbusiness analytics modules.ISBN 10:0-13-517362-0ISBN 13: 978-0-13-517362-6A01 HEIZ3626 13 SE FM.indd 210/31/18 10:46 PM

To Kay Heizer, always at my sideJ.H.To Horace Dawson and David GreenbergB.R.To Kim, Christopher, and Mark Munson for their unwavering support,and to Bentonville High School teachers Velma Reed and Cheryl Gregory,who instilled in me the importance of detail and a love of learningC.M.A01 HEIZ3626 13 SE FM.indd 310/31/18 10:46 PM

A01 HEIZ3626 13 SE FM.indd 410/31/18 10:46 PM

Brief Table of ContentsPART ONEIntroduction to Operations Management 1Chapter 1Chapter 2Chapter 3Chapter 4Operations and Productivity   1Operations Strategy in a Global Environment   29Project Management   59Forecasting  105PART TWODesigning Operations 159Chapter 5 Design of Goods and Services   159 Supplement 5 Sustainability in the Supply Chain193Chapter 6 Managing Quality   213 Supplement 6 Statistical Process Control 245Chapter 7 Process Strategies 279 Supplement 7 Capacity and Constraint Management307Chapter 8 Location Strategies 337Chapter 9 Layout Strategies 367Chapter 10 Human Resources, Job Design, and Work Measurement407PART THREE Managing Operations 441Chapter 11 Supply Chain Management   441 Supplement 11 Supply Chain Management Analytics471Chapter 12Chapter 13Chapter 14Chapter 15Chapter 16Chapter 17Inventory Management   487Aggregate Planning and S&OP   531Material Requirements Planning (MRP) and ERP   565Short-Term Scheduling   603Lean Operations   641Maintenance and Reliability   665PART FOURBusiness Analytics Modules 683Module AModule BModule CModule DModule EModule FModule GDecision-Making Tools   683Linear Programming   703Transportation Models   733Waiting-Line Models   751Learning Curves   779Simulation  795Applying Analytics to Big Data in Operations Management   813APPENDIXESAppendix I Normal Curve Areas A2Appendix II Using Excel OM and POM for Windows A4Appendix III Solutions to Even-Numbered Problems A8vA01 HEIZ3626 13 SE FM.indd 510/31/18 10:46 PM

viB R IE F TA B L E O F C O N T EN T SONLINE TUTORIALS (located at MyLab Operations Management) Tools for Managers T1-1Acceptance Sampling T2-1The Simplex Method of Linear Programming T3-1The MODI and VAM Methods of Solving Transportation Problems T4-1Vehicle Routing and Scheduling T5-1A01 HEIZ3626 13 SE FM.indd 610/31/18 10:46 PM

Table of ContentsPrefaceAbout the AuthorsPART ONEChapter 1xixxxvi1Introduction to Operations Management Operations and Productivity   1Chapter 2 Operations Strategy in a GlobalEnvironment  29GLOBAL COMPANY PROFILE: Hard Rock Cafe: OperationsManagement at Hard Rock Cafe 2What Is Operations Management? 4Organizing to Produce Goods and Services 4The Supply Chain 6Why Study OM? 6What Operations Managers Do 7The Heritage of Operations Management 8Operations for Goods and Services 11Growth of ServicesService PayGLOBAL COMPANY PROFILE: Boeing: Boeing’s GlobalSupply-Chain Strategy Yields CompetitiveAdvantage 30A Global View of Operations and SupplyChains 32Cultural and Ethical IssuesDetermining Missions and Strategies1112OM in Action: Improving Productivity at StarbucksProductivity Variables14142424Frito-Lay: Operations Management in Manufacturing 24Hard Rock Cafe: Operations Management in Services 25Celebrity Cruises: Operations Management at SeaEndnotes 26Bibliography 26Chapter 1 Rapid Review 27Self Test 2835Competing on DifferentiationCompeting on Cost363841OM in Action: Amazon Updates Sears’ StrategyCurrent Challenges in Operations Management 18Ethics, Social Responsibility, and Sustainability 19Summary 20Key Terms 20Ethical Dilemma 20Discussion Questions 20Using Software for Productivity Analysis 21Solved Problems 21Problems 22CASE STUDY 24VIDEO CASE STUDIESStrategy35Issues in Operations Strategy 40Strategy Development and Implementation17OM in Action: Taco Bell Improves Productivity andGoes Green to Lower Costs 18Uber Technologies, Inc.35Competing on Response 3815Productivity and the Service SectorMissionAchieving Competitive Advantage ThroughOperations 36The Productivity Challenge 13Productivity Measurement3526Key Success Factors and Core Competencies4142Integrating OM with Other Activities 43Building and Staffing the Organization43Implementing the 10 Strategic OM Decisions44Strategic Planning, Core Competencies, andOutsourcing 44The Theory of Comparative AdvantageRisks of Outsourcing4646OM in Action: China Outsources, too—toEthiopia 46Rating Outsource Providers47Global Operations Strategy Options 48Summary 50Key Terms 50Ethical Dilemma 50Discussion Questions 50Using Software to Solve OutsourcingProblems 51Solved Problems 52Problems 53viiA01 HEIZ3626 13 SE FM.indd 710/31/18 10:46 PM

viiiTA BL E O F C O N T EN T SCASE STUDYEndnotes 102Bibliography 102Chapter 3 Rapid Review 103Self Test 10454Rapid-Lube54VIDEO CASE STUDIES55Strategy at Regal Marine55Hard Rock Cafe’s Global StrategyOutsourcing Offshore at Darden55Chapter 456GLOBAL COMPANY PROFILE: Walt Disney Parks & Resorts:Forecasting Provides a Competitive Advantage forDisney 106What Is Forecasting? 108Endnotes 56Bibliography 56Chapter 2 Rapid Review 57Self Test 58Chapter 3Forecasting Time HorizonsProject Management   59Types of ForecastsGLOBAL COMPANY PROFILE: Bechtel Group: Project ManagementProvides a Competitive Advantage for Bechtel 60The Importance of Project Management 62Project Planning 62The Project Manager 63Work Breakdown StructureForecasting  105The Strategic Importance of ForecastingHuman ResourcesCapacity110110110Overview of Qualitative Methods 111OM in Action: Delta’s Ground Crew Orchestratesa Smooth Takeoff 66Overview of Quantitative Methods 112Project Controlling 66Project Management Techniques: PERT and CPM 67The Framework of PERT and CPM67Network Diagrams and ApproachesActivity-on-Node Example69Activity-on-Arrow Example71Time-Series ForecastingMoving Averages114Measuring Forecast Error71Trend Projections 124Seasonal Variations in Data74Calculating Slack Time and Identifying the CriticalPath(s) 757777Probability of Project Completion117Exponential Smoothing with Trend AdjustmentBackward PassCyclical Variations in Data131Associative Forecasting Methods: Regressionand Correlation Analysis 131Standard Error of the EstimateOM in Action: Behind the Tour de France82Using Microsoft Project to Manage Projects 86Summary 88Key Terms 89Ethical Dilemma 89Discussion Questions 89Using Software to Solve Project ManagementProblems 90Solved Problems 91Problems 94VIDEO CASE STUDIES 100Project Management at Arnold Palmer Hospital101100131133Correlation Coefficients for Regression LinesMultiple Regression Analysis85120126Using Regression Analysis for Forecasting79Cost-Time Trade-Offs and Project CrashingA Critique of PERT and CPM 85Managing Hard Rock’s Rockfest113113Forward Pass 72Three Time Estimates in PERT112OM in Action: Forecasting at Olive GardenNaive Approach68112Decomposition of a Time SeriesExponential Smoothing 116Determining the Project ScheduleA01 HEIZ3626 13 SE FM.indd 8109Supply Chain Management 109Seven Steps in the Forecasting SystemForecasting Approaches 11164Project Scheduling 65Variability in Activity Times108109134136OM in Action: NYC’s Potholes and RegressionAnalysis 137Monitoring and Controlling ForecastsAdaptive SmoothingFocus Forecasting138139139Forecasting in the Service Sector 140Summary 141Key Terms 141Ethical Dilemma 141Discussion Questions 142Using Software in Forecasting 142Solved Problems 144Problems 14610/31/18 10:46 PM

ixTABLE OF CONT E NT SCASE STUDYEndnotes 156Bibliography 156Chapter 4 Rapid ReviewSelf Test 158153Southwestern University: (B)VIDEO CASE STUDIES153154Forecasting Ticket Revenue for Orlando MagicBasketball Games 154Forecasting at Hard Rock Cafe157155159PART TWO Designing Operations Chapter 5Design of Goods and Services   159GLOBAL COMPANY PROFILE: Regal Marine: Product StrategyProvides Competitive Advantage at Regal Marine 160Goods and Services Selection 162Product Strategy Options Support CompetitiveAdvantage 163Product Life CyclesDe Mar’s Product Strategy164Life Cycle and StrategyVIDEO CASE STUDIES164Product-by-Value Analysis165166Organizing for Product Development169Manufacturability and Value EngineeringSupplement 5  Sustainability in the SupplyChain  193170Issues for Product Design 170Corporate Social ResponsibilitySustainability 194170Modular Design171Computer-Aided Design (CAD) and Computer-AidedManufacturing (CAM) 171Systems ViewVirtual Reality TechnologyTriple Bottom LineValue Analysis172173Product Development Continuum173173Purchasing Technology by Acquiring a Firm174175175Make-or-Buy DecisionsDesign and Production for SustainabilityProduction ProcessLogistics197200200OM in Action: Designing for End of Life176Product Life-Cycle Management (PLM)178Service Design 179180OM in Action: Amazon Pushes Product DesignDocuments for Services203OM in Action: Subaru’s Clean, Green Set of Wheelswith ISO 14001 and ISO 50001 204178Designing More Efficient Services202International Environmental Policies and Standards 203177Documents for Production181Application of Decision Trees to ProductDesign 182Transition to Production 183Summary 184Key Terms 184A01 HEIZ3626 13 SE FM.indd 9195Regulations and Industry Standards175Group Technology194End-of-Life Phase 202175Defining a Product194Product Design 197OM in Action: Product Design at McDonald’sAlliancesCommons194OM in Action: Blue Jeans and Sustainability 196Sustainability and Life Cycle Assessment (LCA)Joint Ventures189Endnotes 190Bibliography 190Chapter 5 Rapid Review 191Self Test 192166Quality Function Deployment (QFD)Robust Design188Product Design at Regal Marine 189Celebrity Cruises Designs a New Ship 189Generating New Products 165Product Development 166Product Development SystemEthical Dilemma 185Discussion Questions 185Solved Problem 185Problems 186CASE STUDY 188180Summary 205Key Terms 205Discussion Questions 205Solved Problems 205Problems 206VIDEO CASE STUDIES 208Building Sustainability at the Orlando Magic’sAmway Center 208Green Manufacturing and Sustainability at Frito-Lay 209“Saving the Waves” at Celebrity Cruises 20910/31/18 10:46 PM

xTA B L E O F C O N T EN T SEndnotes 210Bibliography 210Supplement 5 Rapid Review 211Self Test 212Chapter 6CASE STUDYSouthwestern University: (C)VIDEO CASE STUDIESGLOBAL COMPANY PROFILE: Arnold Palmer Hospital:Managing Quality Provides a Competitive Advantageat Arnold Palmer Hospital 214Quality and Strategy 216Defining Quality 217217Malcolm Baldrige National Quality Award218ISO 9000 International Quality Standards218Cost of Quality (COQ)218Ethics and Quality Management219Total Quality Management 219Continuous ImprovementSix Sigma220220Employee Empowerment 221Benchmarking222Just-in-Time (JIT)223Taguchi ConceptsOM in Action: A Hospital Benchmarks against theFerrari Racing Team? 223Tools of TQM224Check Sheets 225226226Flowcharts227Histograms228Statistical Process Control (SPC)228The Role of Inspection 229When and Where to Inspect231OM in Action: Safe Patients,Smart Hospitals 231232OM in Action: Richey International’s SpiesSummary 234Key Terms 234Ethical Dilemma 235Discussion Questions 235Solved Problems 235Problems 236Process Capability Ratio (Cp ) 259Process Capability Index (Cpk ) 260Acceptance Sampling 261274Frito-Lay’s Quality-Controlled Potato Chips 274Farm to Fork: Quality at Darden Restaurants 275231Inspection of Attributes versus VariablesA01 HEIZ3626 13 SE FM.indd 10246Control Charts for Variables 247The Central Limit Theorem 247Setting Mean Chart Limits ( x-Charts) 249Setting Range Chart Limits ( R-Charts) 252Using Mean and Range Charts 253Control Charts for Attributes 255OM in Action: Trying to Land a Seat with FrequentFlyer Miles 257Managerial Issues and Control Charts 258VIDEO CASE STUDIES231Service Industry InspectionTQM in ServicesStatistical Process Control (SPC)Bayfield Mud Company 273229OM in Action: OM in Action: Inspectingthe Boeing 787 230Source InspectionSupplement 6 Statistical Process Control   245Summary 264Key Terms 264Discussion Questions 264Using Software for SPC 265Solved Problems 266Problems 267CASE STUDY 273226Cause-and-Effect DiagramsPareto ChartsEndnote 242Bibliography 242Chapter 6 Rapid Review 243Self Test 244Operating Characteristic Curve 262Average Outgoing Quality 263225Scatter Diagrams239Process Capability 259223Knowledge of TQM Tools238239The Culture of Quality at Arnold Palmer HospitalQuality Counts at Alaska Airlines 239Celebrity Cruises: A Premium Experience 241Managing Quality   213Implications of Quality238Endnotes 275Bibliography 276Supplement 6 Rapid Review 277Self Test 278Chapter 7234Process Strategies   279GLOBAL COMPANY PROFILE: Harley-Davidson: RepetitiveManufacturing Works at Harley-Davidson 280Four Process Strategies 282Process Focus 282Repetitive Focus 283Product Focus 284Mass Customization Focus28410/31/18 10:46 PM

xiTABLE OF CONT E NT SOM in Action: Mass Customization for Straight Teeth 285OM in Action: Matching Airline Capacity to Demand 312Process Comparison 286Service-Sector Demand and CapacityManagement 313Selection of Equipment 288Process Analysis and Design 289FlowchartBottleneck Analysis and the Theory of Constraints 313Theory of Constraints 316Bottleneck Management 317289Time-Function MappingProcess Charts289Break-Even Analysis 317290Value-Stream MappingService BlueprintingSingle-Product Case 318Multiproduct Case 319290292Special Considerations for Service ProcessStrategies 293Production Technology 294Machine Technology294Automatic Identification Systems (AISs) and RFID 295Process Control295OM in Action: 500,000 Tons of Steel; 14 Jobs 296Vision SystemsRobots296296Automated Storage and Retrieval Systems(ASRSs) 296Automated Guided Vehicles (AGVs)296Flexible Manufacturing Systems (FMSs)297Computer-Integrated Manufacturing (CIM)297OM in Action: Technology Changes the Hotel Industry 298Technology in Services 298Process Redesign 298Summary 299Key Terms 299Ethical Dilemma 300Discussion Questions 300Solved Problem 300Problems 301CASE STUDY 302Investment, Variable Cost, and Cash FlowNet Present Value 323Summary 325Key Terms 326Discussion Questio

This text is available in two versions: Operations Management, 13th edition, a hardcover, and Principles of Operations Management, 11th edition, a paperback. Both books include the identical core Chapters 1–17. However, Operations Management, 13th edition also includes a Part IV with seven business analytics modules.

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