Process Management : Creating Value along the Supply Chain

by Wisner, Joel D.; Stanley, Linda L.

• ISBN13: 9780324291575
• ISBN10: 0324291574
• Edition: 1st
• Format: Hardcover
• Copyright: 2007-07-13
• Publisher: Cengage Learning

Summary

Now you can offer your students the coverage of three books in one as PROCESS MANAGEMENT: CREATING VALUE ALONG THE SUPPLY CHAIN balances coverage of Process Management, Operations Management (OM), and Supply Chain Management (SCM). The book presents a unique focus on the eight key supply chain processes, with chapters devoted to each of these well-known concepts to form the strong foundation and solid understanding your students need today. The book combines coverage of both strategic and operational issues with an emphasis on the tools and techniques most important to your students for process design and management. Contemporary topical coverage addresses supply chain and e-business applications with appropriate coverage of both manufacturing and service theory and applications. A balanced, thorough coverage of essential topics highlights inventory, JIT, quality, customer and information flow management, and service operations while a unique focus on a value-adding approach throughout the supply chain links the processes of suppliers, the focal company, and its customers. Also included are 21 teaching cases appearing in the textbook's five sections, appropriate for both undergraduate and graduate classes. This mix of process and service applications and management theory offers you much more than any other text of its kind for a process-oriented approach that truly meets the needs of future or practicing professionals. The student CD is bound into the book and contains all of the cases and chapter 16.

Table of Contents

Preface	p. xvii
Creating Customer-Driven Process Strategies	p. 1
Introduction to Process Management	p. 2
Introduction	p. 3
Processes and Process Management Defined	p. 4
Process Management and Supply Chain Management	p. 6
Eight Key Supply Chain Processes	p. 7
Customer Relationship Management Process	p. 8
Customer Service Management Process	p. 9
Demand Management Process	p. 9
Order Fulfillment Process	p. 10
Flow Management Process	p. 10
Supplier Relationship Management Process	p. 11
Product Development and Commercialization Process	p. 11
Returns Management Process	p. 12
Inventory and Process Management	p. 13
Lean Thinking and Process Management	p. 13
Quality and Process Management	p. 15
Business Process Management-Formalizing Process Improvement	p. 17
Measuring Process Performance	p. 19
Trends in Process Management	p. 20
New Product Development-Creating Order Winners	p. 25
Introduction	p. 27
The New Product Development Process	p. 28
Generating Product Ideas	p. 29
Developing the Concept	p. 30
Product Screening	p. 33
Design Phase	p. 33
Product Introduction	p. 34
Reducing New Product Development Cycle Time	p. 34
Integrated Product Development	p. 35
Design for Manufacture and Assembly	p. 36
Advances in Technology	p. 37
New Product Development along the Supply Chain	p. 37
Process Selection	p. 39
Mass Customization	p. 40
Break-Even Analysis	p. 43
Special Issues in Service Design	p. 45
Effective Product and Service Design	p. 48
Customer Relationship Management	p. 54
Introduction	p. 56
Designing an Effective CRM Process	p. 57
Identifying Competitive Strategies	p. 61
Collecting Customer Information	p. 63
Segmenting Customers	p. 64
Segmenting Customers by Profitability	p. 65
Segmenting Customers by Niche	p. 66
Segmenting Customers Individually	p. 68
Targeting Customer Segments	p. 69
Using the Internet to Target Customer Segments	p. 69
Using Telemarketing to Target Customer Segments	p. 72
Using Direct Mail to Target Customer Segments	p. 73
Selecting a CRM Program Consistent with Firm Strategy	p. 75
Customer Loyalty Programs	p. 75
Customer Service Initiatives	p. 76
Customization Capabilities	p. 78
Building Customer Communities	p. 78
Selecting a Compatible CRM Technology	p. 80
Developing CRM Performance Metrics	p. 82
Revising and Improving CRM Efforts as Warranted	p. 83
Privacy Issues in CRM	p. 84
Some Recent Approaches to CRM	p. 85
Voice over Internet Protocol	p. 86
Social Network Technology	p. 86
Self-Service CRM	p. 86
Outsourced CRM	p. 86
The "Curse" of Cheap Data Storage	p. 86
RFID Tracking	p. 87
Personal Knowledge Banks	p. 87
Customer Service Management	p. 94
Introduction	p. 96
Customer Service Defined	p. 98
Pretransaction Elements	p. 98
Transaction Elements	p. 98
Posttransaction Elements	p. 99
Customer Service Failures	p. 100
Customer Behavior and Expectations	p. 102
Customer Expectations	p. 103
Customer Perceptions and Satisfaction	p. 104
Perceptual Biases	p. 105
Customer Satisfaction	p. 105
A Framework for Managing Customer Service	p. 106
Evaluate and Improve Employee Satisfaction	p. 108
Conduct Customer Service Audits	p. 110
Creating a Customer Service Strategy	p. 115
Implementing the Customer Service Strategy	p. 125
Measuring and Improving Customer Service Performance	p. 126
Integrating the Customer Service Process along the Supply Chain	p. 129
Manufacturing and Service Flow Issues	p. 135
Demand Management and Forecasting	p. 136
Introduction	p. 138
Demand Management Defined	p. 139
Types of Demand	p. 141
The Forecasting Process	p. 143
Forecasting Methods	p. 146
Qualitative Forecasting Methods	p. 146
Time Series Methods	p. 147
Associative Forecasting Method	p. 151
Simulation Forecasting Method	p. 155
Forecast Accuracy	p. 159
Collaborative Planning, Forecasting and Replenishment	p. 164
Inventory Management	p. 175
Introduction	p. 177
The Types of Inventory	p. 178
The Functions of Inventory	p. 179
Inventory Costs, Risks, and Value	p. 181
Order Costs	p. 182
Inventory Carrying Costs	p. 182
Stockout Costs	p. 182
Purchase Costs	p. 184
Inventory Risk and Value	p. 184
Independent Demand Inventory Management	p. 187
Deciding How Much and When to Order or Produce	p. 187
Extensions of the EOQ Model	p. 192
ABC Inventory Classification	p. 197
Order Quantities and Safety Stock among Supply Chain Partners	p. 197
Dependent Demand Inventory Management	p. 200
The Material Requirements Planning (MRP) System	p. 201
The Distribution Requirements Planning (DRP) System	p. 207
The Manufacturing Resource Planning (MRP II) System	p. 208
Collaborative Inventory Management along the Supply Chain	p. 212
Continuous Replenishment Programs	p. 212
Vendor Managed Inventories and JIT II	p. 213
Measuring Inventory Management Performance	p. 214
Managing Material Flows	p. 223
Introduction	p. 225
Material Flow Mapping	p. 227
Material Flow Analysis	p. 229
The Theory of Constraints	p. 233
Manufacturing Flexibility	p. 236
Mass Customization	p. 239
Layout Design	p. 239
Product-Focused Layouts	p. 239
Process-Focused Layouts	p. 244
Material Scheduling	p. 244
Job Scheduling in Product-Focused Systems	p. 246
Job Scheduling in Process-Focused Systems	p. 248
Vehicle Scheduling and Routing	p. 254
The Clark and Wright Savings Heuristic	p. 259
The Cluster-First-Route-Second Heuristic	p. 259
The Concurrent Scheduler Approach	p. 260
Warehouse Material Flow	p. 261
Warehouse Layout Considerations	p. 262
Managing Customer and Work Flows	p. 275
Introduction	p. 276
Customer Flow Mapping	p. 277
Service Delivery System Design	p. 280
Service Blueprinting	p. 281
Demand Variability and Service Capacity Utilization	p. 283
Capacity Management Techniques for Services	p. 283
Demand Management Techniques	p. 290
Managing Customer Queues	p. 294
The Psychology of Waiting	p. 294
Using Virtual Queues	p. 295
The Analysis of Queuing Systems	p. 295
Managing Work Flows	p. 301
Work Flow Analysis	p. 302
Managing Work Flows in the Office	p. 304
Managing Work Flows along the Supply Chain	p. 306
Managing Information Flows	p. 312
Introduction	p. 314
The Concept of Information Flow	p. 315
Information Flow Mapping	p. 317
Information Flow among Supply Chain Trading Partners	p. 319
The Emergence and Use of Enterprise Resource Planning Systems	p. 319
Notable Historical Developments Leading up to ERP	p. 320
Selecting an ERP System	p. 323
The Advantages and Disadvantages of ERP Systems	p. 324
Adding Applications to the ERP System	p. 327
Integrating ERP within the Supply Chain	p. 342
Automating Process Management-BPM and BPR	p. 344
Business Process Reengineering	p. 346
Lean Production Systems	p. 355
Operating with Lean	p. 356
Introduction	p. 358
A History of Lean Production	p. 358
Lean Thinking Principles	p. 359
Seven Forms of Waste	p. 360
Principles of Lean Thinking	p. 363
Traditional Versus Lean Production	p. 365
Cellular Layouts	p. 368
Setup Time Reduction	p. 371
Small Lot Sizes	p. 373
Kanban	p. 373
Level Capacity Loading and Mixed Model Scheduling	p. 376
Standardized Work	p. 378
The 5S System	p. 379
Total Productive Maintenance	p. 380
Close Relationships with Suppliers	p. 381
Information Technology and Lean	p. 382
Disadvantages of Lean Production	p. 382
Lean Versus Agile	p. 385
Lean Thinking along the Supply Chain	p. 386
Value Stream Mapping Tools	p. 388
Process Activity Mapping	p. 388
Supply Chain Response Matrix	p. 389
Production Variety Funnels	p. 390
Quality Filter Mapping	p. 391
Demand Amplification Mapping	p. 392
Logistics and Order Fulfillment	p. 398
Introduction	p. 399
Setting Logistics Customer Service Goals	p. 401
Availability	p. 402
Order Lead Time	p. 403
Reliability	p. 403
Transportation Planning and Selection	p. 404
Modes of Transportation	p. 404
Freight Rates	p. 405
Carrier Selection	p. 405
Transportation Routing and Scheduling	p. 408
Day-to-Day Management	p. 409
The Order Fulfillment Process	p. 409
Order Cycle Time	p. 410
Warehouse Management	p. 413
Warehouse Planning	p. 415
Warehousing Activities	p. 416
Planning the Logistics Network	p. 417
Location Planning	p. 420
Product Flow Planning	p. 429
Transportation Service Planning	p. 432
Developing a Logistics Strategy	p. 432
Order Fulfillment and Logistics Concerns	p. 434
Purchasing and Supply Management	p. 441
Introduction	p. 443
The Role of Purchasing and Supply Management	p. 443
The Strategic Sourcing Process	p. 445
Conduct an Internal Assessment	p. 445
Assess the Market	p. 445
Collect Supplier Information	p. 448
Develop the Sourcing Strategy	p. 449
Solicit and Evaluate Bids	p. 450
Select the Supplier and Implement the Contract	p. 451
Cost Management	p. 451
Target Costing	p. 452
Total Cost of Ownership Analysis	p. 452
Factors in Supplier Selection	p. 454
Use of Evaluation Forms	p. 454
General Performance Criteria	p. 456
Quality Criteria	p. 456
Delivery Criteria	p. 457
Relationship Criteria	p. 457
Negotiating the Contract	p. 457
Managing Supplier Relationships	p. 459
Arm's Length Relationships	p. 460
Ongoing Relationships	p. 460
Partnerships/Strategic Alliances	p. 461
Monitoring Supplier Performance	p. 464
Supplier Performance Surveys	p. 464
Annual Supplier Meetings	p. 465
Supplier Recognition and Awards	p. 465
Electronic Purchasing	p. 465
Reverse Auctions	p. 467
Electronic Data Interchange	p. 468
Web-Based Marketplaces	p. 469
Online Purchasing Systems	p. 469
Advantages of Electronic Purchasing	p. 470
Beyond First-Tier Supplier Relationships	p. 470
Delegation	p. 472
Direct Management of All Tiers	p. 473
Cross-Organizational Teams	p. 474
Supply Management Challenges	p. 474
Quality Issues and Process Performance	p. 481
Managing Quality for Continuous Improvement	p. 482
Introduction	p. 484
Continuous Improvement	p. 485
Why Continuous Improvement Efforts Fail	p. 487
Processes and Quality	p. 488
The Costs of Quality	p. 488
Tracking the Costs of Poorly Performing Processes	p. 490
Process Capability	p. 490
The Quality Improvement Process	p. 494
Strategic Quality Planning	p. 495
Implementing the Quality Plan	p. 498
Controlling Quality	p. 501
Statistical Process Control	p. 507
Quality Management along the Supply Chain	p. 518
The Malcolm Baldrige Award	p. 521
ISO 9000 Standards	p. 521
Collaborative Planning Activities	p. 522
Quality Assurance	p. 523
Measuring Quality along the Supply Chain	p. 523
Six Sigma-Taking Quality Improvement to the Next Level	p. 530
Introduction	p. 532
Defining Six Sigma	p. 533
Organizational Roles in Six Sigma Initiatives	p. 536
Leadership Group	p. 536
Team Sponsor	p. 536
Team Leader	p. 536
Team Members	p. 536
Six Sigma Coach	p. 537
Six Sigma Specialists	p. 537
Administrative Support Team	p. 537
The DMAIC Cycle	p. 539
The DMAIC Cycle Stages	p. 539
Selecting Six Sigma Projects	p. 542
Critical to Quality Trees	p. 543
Key Selection Criteria	p. 543
Projects Outside the Scope of Six Sigma	p. 543
Six Sigma Project Documents	p. 546
Project Problem Statement	p. 547
Project Mission Statement	p. 547
Team Charter	p. 547
The Scheduling System	p. 548
Sharing Project Information	p. 550
Risk Management Plan	p. 550
Communication Plan	p. 550
Control Plan	p. 551
Six Sigma Project Tools and Measures	p. 552
Project Characteristics	p. 552
Statistical Tools	p. 559
Balanced Scorecard	p. 561
The Keys to Breakthrough Process Improvement	p. 562
Knowledge of Customer Requirements	p. 562
Stretch Goals	p. 562
A Process View	p. 563
Six Sigma along the Supply Chain	p. 564
Supply Chain Management and Six Sigma in Action	p. 565
Six Sigma Challenges	p. 565
Returns Management	p. 571
Introduction	p. 573
Defining Returns Management	p. 575
Returns Management and the Product Life Cycle	p. 576
Product Development	p. 577
Product Introduction	p. 577
Growth Stage	p. 577
Maturity Stage	p. 579
Decline Stage	p. 579
Cancellation Stage	p. 580
Developing a Returns Management Strategy	p. 580
Establishing Returns Policies	p. 581
Gatekeeping	p. 581
Avoidance	p. 582
Disposition	p. 583
Key Factors in Returns Policy and Guideline Development	p. 585
Design of the Returns Network	p. 586
Returns Management Information Systems	p. 588
The Returns Management Process in Practice	p. 589
Customer Initiates Return Request	p. 589
Initial Routing	p. 593
Determine Disposition	p. 594
Collect and Analyze Performance Metrics	p. 596
Environmental Issues in the Returns Process	p. 598
Disposal of Hazardous Materials in the United States	p. 600
Definition and Classification of Hazardous Materials	p. 601
Communication Issues	p. 601
Packaging Requirements	p. 601
Operating Rules	p. 601
Training	p. 601
Guidelines	p. 602
Disposal of Hazardous Materials in Europe	p. 602
Returns Management along the Supply Chain	p. 603
Areas Under the Normal Curve	p. 609
Answers to Even-Numbered End-of-Chapter Problems	p. 610
URL List	p. 612
Glossary	p. 613
Author Index	p. 629
Subject Index	p. 635
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