INSTRUCTORS RESOURCE MANUAL

to accompany
Operations and Supply Management The Core,
First Edition
Prepared by F. Robert Jacobs

ACKNOWLEDGEMENTS
I am indebted to all of my colleagues who have contributed to this manual. Very
few of the ideas contained in here are totally original. Thanks much to all of you
for spending so much time discussing how you do things in class and allowing
me to share your ideas in this manual.
F. Robert Jacobs

TABLE OF CONTENTS
Introduction
Table of Contents
Companies Featured in Opening Vignettes and Short Cases
Contents of the student DVD
Videos included on the student DVD
Additional pedagogical resources that come with the book
Chapter Outlines, Tips, Case Teaching Notes and Extra Cases
Chapter 1 Operations and Supply Strategy
Internet Exercise: Harley-Davidson Motorcycles
Wyatt Earp The Buffalo Hunter! (Extra Case)
Chapter 2 Project Management
Case: Cell Phone Design Teaching Note
Chapter 3 Strategic Capacity Management
Case: Shouldice Hospital A Cut Above Teaching Note
Chapter 4 Manufacturing Processes
Case: Designing Toshibas Notebook Computer Line Teaching
Note
Extra Case: Manufacturing The Great Crapshoot
Chapter 5 Service Processes
Case: Community Hospital Evening Operating Room Teaching
Note
Extra Case: Listen-Up.com
2

Chapter 6 Six Sigma Quality

Hank Kolb Director of Quality Assurance Teaching Note
Extra Classroom Exercise M&Ms Process Capability for the
Halloween Packs

Chapter 7 Strategic Sourcing

Case: Pepe Jeans Teaching Note
Classroom Exercise: Playing the Beer Distribution Game Over the
Internet Overview and Instructions
Chapter 8 Logistics
Case: Applichem The Transportation Problem Teaching Note
Chapter 9 Lean Manufacturing
Quality Parts Company Teaching Note
Extra Case: The E-Ops Game - Instructions
Chapter 10 Demand Management and Forecasting
Case: Altavox Electronics
Chapter 11 Aggregate Sales and Operations Planning
Bradford Manufacturing Planning Plant Production Teaching
Note
Chapter 12 Inventory Control
Hewlett-Packard Supplying the DeskJet Printer in Europe
Teaching Note
Extra Case: Finish Line
Chapter 13 Material Requirements Planning
Brunswick Motors, Inc. An Introductory Case for MRP Case and
Teaching note
Appendix
The McGraw-Hill/Irwin Video Series

INTRODUCTION
Clearly, teaching Operations Management (OM) can be a significant challenge.
This is particularly true in a school dominated by Accounting or Finance majors.
We have found that, if designed correctly, the OM course can easily be one of the
most popular. Students like the hands-on orientation of the topics and can see
the direct applicability of the material. The purposes of this instructors resource
guide are twofold. First, it is designed to help in the development of an
Operations Management course. Our second purpose is to provide some ideas
for innovative ways that a particular topic can be presented.
This new book is the result of our research into what instructors what to teach in
the core Operations Management course. The title, Operations and Supply
Management: The Core, reflects current interest in Supply Chain Management.
The book is designed to include topics that are appropriate for an overview of
Operations Management while emphasizing Supply Chain concepts. It is our
view that operations management and supply chain management are very close.
In a sense, we see operations management as the mother science, all
encompassing field. Supply chain management focuses on the flows of material
through the network all the way from fourth and third tier supplies all the way out
to the final customer. Supply chain management seems to place less emphasis
on internal factory operations which has traditionally been a core operations
management focus (i.e. MRP and scheduling).
Traditional operations
management focuses on coordination from first tier suppliers, through the factory,
and out to the warehouse.

n tier
suppliers

1st tier
suppliers

Distribution

Customer

Operations
Management

Supply Chain Management

This book reflects the shift in interest to supply chain. We have included a
chapter on MRP, but have not included scheduling in the book. Further we have
included chapters on strategic sourcing and logistics in the book. Detailed

internal operations topics related to facility layout have been deemphasized and
materials on job design and work measurement are not included.
The book is divided into 13 concise chapters. Our intent was to design a book
that could be used cover to cover in the operations management core course. In
developing each chapter we considered how students would view the material.
All chapters are approximately the same in length. Our attempt is to balance
managerial concepts and analysis. This balance does not work out perfectly as
some topics are intrinsically more managerial and others more analytical.
Each chapter includes material that should work well pedagogically in a number
of ways. For those who want to emphasize analysis, problems are developed in
each chapter and solved problems included at the end of each chapter. The
short cases at the end of each chapter all require some analysis and usually
have some managerial issues that can be discussed as well. The cases are also
designed to stretch the topic so that students discover new insights in each
topic.
Thank you for using our books in the past and considering this new offering for
the future. Operations management is a dynamic discipline, with new concepts
appearing frequently. The challenge for a textbook is not only to capture these
concepts but also to anchor them to the existing body of knowledge in an
understandable way.
F. Robert Jacobs

Table of Contents
I. Strategy
1. Operations and Supply Strategy
2. Project Management
II. Processes
3. Strategic Capacity Management
4. Manufacturing Processes
5. Service Processes
6. Six-Sigma Quality
III. Supply Chains
7. Strategic Sourcing
8. Logistics
9. Lean Manufacturing
IV. Inventory
10. Demand Management and Forecasting
11. Aggregate Sales and Operations Planning
12. Inventory Control
13. Material Requirements Planning

Companies Featured in Opening Vignettes and Short Cases:

Ch 1 Ops and Supply Strategy
IKEA and Harley-Davidson (customization of bikes)
Ch 2 Project Management
Apples iPod and Cell Phone Design project
Ch 3 Strategic Capacity
Shouldice Hospital
Ch 4 Mfg Processes
Toshiba Notebook Computer Assembly Line
Ch 5 Service Processes
Hospital Evening Operating Room (queuing)
Ch 6 Quality
GE Six-Sigma Supply Chain Processes
Ch 7 Strategic Sourcing
The World is Flat and Jeans Manufacturing
Ch 8 Logistics
FedEx and Applichem
Ch 9 Lean Mfg
Solectron and Value Chain Mapping exercise
Ch 10 Demand Management and Forecasting
Wal-Mart and Altavox Electronics
Ch 11 Sales and Ops Planning
Bradford Manufacturing
Ch 12 Inventory Control
Hewlett-Packard
Ch 13 MRP
Brunswick Motors
Contents of the student DVD:
ScreenCam Tutorials
Introduction to Excel
Introduction to Solver
ExcelAggregate Planning
ExcelInventory
ExcelProject Mgmt
ExcelQueuing
Introduction to E-Ops Game
SAP/R3
Transportation using Excel
Excel--Breakeven Analysis
Excel--Decision Trees
Excel--Forecasting
ExcelMRP

ExcelSPC
Line Balancing
Strategic Sourcing
Java Applets
Critical path method
Process layouts
Leaning curve model
Waiting line system
Process control chart
Facility location
Forecasting
Aggregate planning
The Kanban simulation

Videos included on the student DVD:

Greenhouse Gas Reduction Project featuring BP
International Logistics featuring American President Lines
The Product Process Matrix featuring BP, Honda, Caterpillar & AED Vision
Louisville Slugger Aluminum Bats Plant Tour
Service System Design Matrix featuring Chase Bank
Queuing featuring Disney
Global Delivery Service featuring DHL Manufacturing Quality featuring Honda
Supply Chain Management featuring Ford
Supplier Relationships featuring Fords Supplier Campus
Flexible Manufacturing Process featuring Fords Chicago Assembly Plant
Just-in-Time featuring McDonalds
Enterprise Resource Planning at Hillerich & Bradsby
Additional pedagogical resources that come with the book:
McGraw-Hill Video library
Short clips of all major concepts
Video case studies
Test question library
Approximately 1,000 questions (short answer, multiple choice, true/false
On-Line Games
Beer Distribution Game
E-Ops Game
iPod/Palm chapter summaries Excel templates for all problems
PowerPoint slides
Problem Solution Manual
Instructors Resource Guide
Case notes and classroom exercises
Homework Manager
Individualized problems with automatic grading