COLLIEREVANS, OPERATIONS AND SUPPLY CHAIN MANAGEMENT 2024, 9780357901649;

Solution and Answer Guide: Collier/Evans, Operations and Supply Chain Management 2024, 9780357901649;

Chapter 1: Operations Management and Value Chains

1 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Solutions Manual

COLLIER/EVANS, OPERATIONS AND SUPPLY CHAIN MANAGEMENT 2024, 9780357901649;

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HAPTER 1: OPERATIONS MANAGEMENT AND VALUE CHAINS

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ABLE OF C ONTENTS

Review Questions ................................................................................................................ 1 Discussion Questions and Experiental Activities ............................................................. 8 Cases ................................................................................................................................. 20 Teaching Note: Walker Digital Music Services .................................................................. 20 Teaching Note: Mickey Mouse: To Talk or Not?................................................................ 24 Teaching Note: Zappos, A Subsidiary of Amazon ............................................................. 26 Teaching Note: Diamond Global Supply Chain—Hudson Jewelers ................................ 31

REVIEW QUESTIONS

1.Explain the concept and importance of operations management.Solution Creating and delivering goods and services to customers depends on an effective system of linked facilities and processes, and the ability to manage them effectively around the world. Operations management (OM) is the science and art of ensuring that goods and services are created and delivered successfully to customers. OM includes the design of goods, services, and the processes that create them; the day-to-day management of those processes; and the continual improvement of these goods,

services, and processes. Three issues are at the core of operations management:

efficiency, cost, and quality.

2.Describe how operations management is used in work throughout business organizations.Solution Many people who are considered “operations managers” have titles such as chief operating officer, hotel or restaurant manager, vice president of manufacturing, customer service manager, plant manager, field service manager, or supply chain manager. The concepts and methods of OM can be used in any job, regardless of the functional area of business or industry, to better create value for internal customers (within the organization) and for external customers (outside the organization). OM principles are used in accounting, human resources management, legal work, financial activities, marketing, environmental management, and every type of service activity.All Chapters Download Link At The End Of This File 1 / 4

Solution and Answer Guide: Collier/Evans, Operations and Supply Chain Management 2024, 9780357901649;

Chapter 1: Operations Management and Value Chains

2 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• What are Industry 4.0 and Service 4.0? Give an example in manufacturing and health

care or other service industries.Solution Industry 4.0 is the information-intensive transformation of manufacturing in a connected environment of big data, people, processes, services, systems, and IoT- enabled industrial assets. In manufacturing, autonomous robots can quickly pick products at a warehouse to reduce costs and optimize floor space. Other manufacturing examples are 3D printing, computer-aided design software and three- dimensional displays of the part or product, and a multitude of welding, materials moving, and assembly robots tied to an automated or semi-automated control system.Smart appliances tied electronically to home comfort systems, automated truck routing and dispatching systems are other examples.Service 4.0 is applying digitization to services that create higher productivity, innovation, and value chain advantages in service industries. Service 4.0 devices include cell phones, automated banking machines, CT and MRI scanners, electronic hotel keys and security systems, home security systems, surgical robots assistants, online banking, digital health care systems, electronic restaurant menus, and so on.

• State three of the key activities that operations managers perform and briefly explain

them.Solution Students should describe three of the following in their own words.• Forecasting: Predict the future demand for raw materials, finished goods, and services.• Supply chain management: manage the flow of materials, information, people, and money from suppliers to customers.• Facility layout and design: determine the best configuration of machines, storage, offices, and departments to provide the highest levels of efficiency and customer satisfaction.• Technology selection: use technology to improve productivity and respond faster to customers.

• Quality management: ensure that goods, services, and processes will meet

customer expectations and requirements.• Purchasing: coordinate the acquisition of materials, supplies, and services.

• Resource and capacity management: ensure that the right amount of resources

(labor, equipment, materials, and information) is available when needed.• Process design: select the right equipment, information, and work methods to produce high-quality goods and services efficiently.

• Job design: decide the best way to assign people to work tasks and job

responsibilities. 2 / 4

Solution and Answer Guide: Collier/Evans, Operations and Supply Chain Management 2024, 9780357901649;

Chapter 1: Operations Management and Value Chains

3 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.• Service encounter design: determine the best types of interactions between service providers and customers, and how to recover from service upsets.

• Scheduling: determine when resources such as employees and equipment should

be assigned to work.• Sustainability: decide the best way to manage the risks associated with products and operations to preserve resources for future generations.

• Define a good and a service.

Solution Companies design, produce, and deliver a wide variety of goods and services that consumers purchase. A good is a physical product that you can see, touch, or possibly consume. A service is any primary or complementary activity that does not directly produce a physical product. See the key terms below for the difference between durable and nondurable goods.

• Explain how goods differ from services.

Solution

See Section 1-3:

• Goods are tangible, services are intangible.• Customers participate in many service processes, activities, and transactions.• Service demand is normally more difficult to predict than for goods due to weather, human behavior, etc.• Services cannot be stored as inventory. Service capacity is the substitute for goods inventory.• Services require service management skills whereas the production of physical goods requires only backroom skills (not front room, high customer contact skills).• Service facilities are typically close to the customer. Convenience has value.• Patents do not protect services.

• Define the concept of value.

Solution See Section 1-4. The underlying purpose of every organization is to provide value to its customers and stakeholders. The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the perceived benefits in relation to its price. The customer’s cumulative judgment of the perceived benefits leads to either satisfaction or dissatisfaction. One of the simplest functional forms of

value is:

Value = Perceived benefits/Price (cost) to the customer 3 / 4

Solution and Answer Guide: Collier/Evans, Operations and Supply Chain Management 2024, 9780357901649;

Chapter 1: Operations Management and Value Chains

4 © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• How can an organization increase value to its customers?

Solution See Section 1-4. To increase value, an organization must (a) increase perceived benefits while holding price or cost constant; (b) increase perceived benefits while reducing price or cost; or (c) decrease price or cost while holding perceived benefits constant.In addition, proportional increases or decreases in perceived benefits as well as price result in no net change in value. Management must determine how to maximize value by designing processes and systems that create and deliver the appropriate goods and services customers want to use, pay for, and experience.

• Describe a customer benefit package.

Solution “Bundling” goods, services, and digital content in a certain way to provide value to customers not only enhances what customers receive but can also differentiate the product from competitors. A customer benefit package consists of a primary good or service coupled with peripheral goods and/or services, and sometimes variants.

• What is a peripheral good or service? Provide some examples.

Solution Peripheral goods or services are those that are not essential to the primary good or service but enhance it. Examples: auto leasing package, designer checks, fast delivery service, airline baggage service and in-cabin food service, hotel exercise room, and so on.

• Define “biztainment” and provide an example.

Solution Biztainment is the practice of adding entertainment content to a bundle of goods and services in order to gain competitive advantage. Student will find examples everywhere.• Manufacturing—old and new factory tours, showrooms, customer training and education courses, virtual tours, short films on how things are made, driving schools, history lessons on the design and development of a physical good • Retail— on-line shopping with entertaining graphics (emoji), simulators, product demonstrations, climbing walls, music, games, contests, holiday decorations and walk-around characters, blogs, interactive store designs, aquariums, movie theaters, makeovers • Restaurants—toys, themes, electronic menus, contests, games, characters, playgrounds, live music • Agriculture—pick-your-own food, mazes, make-your-own wine, grape-stomping, petting zoos, farm tours

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