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vi • Preface
Problem Solving. While our goal is to provide balanced coverage of quantitative and
qualitative topics, the new edition further emphasizes and integrates problem solving to
help students experience the course more successfully. We provide algorithmic homework
problems for every chapter of the text (via WileyPLUS Learning Space) for unlimited practice
opportunities, include problem-solving help in the book (“Before You Begin”) and on-line
via WileyPLUS Learning Space, and provide step-by-step solved problems in the book and
on-line. We also provide “help with math” as needed via WileyPLUS Learning Space. We
believe that these changes to the new edition greatly enhance student learning.
We have developed our pedagogical features to implement and reinforce the goals discussed
previously and address the many challenges in this course.
LINKSTO understand
u what they need to know. Furthermore, the
The importance of excep-
tional quality is demonstrated
PRACTICE
THE WALT DISNEY
many
m examples frequently interrupt the flow of the text
by The Walt Disney Company
in the operation of its theme
COMPANY parks. The focus of the parks is
www.disney.com and
a make a chapter difficult to read and assimilate.
customer satisfaction. This is
© Dennis MacDonald/Alamy
ter summary titled “OM across the Organization” that TQM a success. Recall that the goal of TQM is to satisfy customer needs by producing the
exact product that customers want. Marketing’s role is to understand the changing needs
and wants of customers by working closely with them. This requires a solid identification
highlights the relationship between OM and key busi- of target markets and an understanding of whom the product is intended for. Sometimes,
apparently small differences in product features can result in large differences in customer
ness functions, such as accounting, finance, human appeal. Marketing needs to accurately pass customer information along to operations, and
operations needs to include marketing in any planned product changes.
resources, information technology, management, mar- Finance is another major participant in the TQM process because of the great cost con-
FIN
sequences of poor quality. General definitions of quality need to be translated into specific
keting, and purchasing. This section is designed to help dollar terms. This serves as a baseline for monitoring the financial impact of quality efforts
and can be a great motivator. Recall the four costs of quality discussed earlier. The first two
students understand the close relationship of opera- costs, prevention and appraisal, are preventive costs; they are intended to prevent inter-
tions management with other business functions and appreciate the critical
i t th iti l iimpactt OM has h
on other business functions. In addition, a cross-functional icon is used throughout the text
to highlight sections in the text where the relationships between OM and other key business
functions are discussed.
Cases Each chapter ends with four cases that reinforce the issues and topics discussed in
the chapter. The first two cases are within the text, while the other two are on-line cases.
The cases can provide the basis for group discussion or can be assigned as individual exer-
cises for students. Many cases conclude with a list of questions for students to answer.
In addition, each chapter offers a unique interactive learning exercise titled “Internet
Challenge” where students are provided with a short case and given specific Internet assignments.
Interactive Cases There are two Web-based cases
Interactive Case: Virtual Company www.wiley.com/college/reid
for this edition. The first case features an Internet site
On-line Case: Cruise International, Inc. beginning to end. We need your help in bringing ideas
for a simulated cruise company that has hired a student Assignment: Total Quality Management (TQM) at Cruis- together on how to measure quality in a service organi-
ing International, Inc. For this assignment, you will work zation.” This assignment will enhance your knowledge
intern to help solve operations problems. The second again with Meghan Willoughby, Chief Purser aboard of the material in Chapter 5 of your textbook while pre-
the Friendly Seas I. You know the assignment has some- paring you for your future assignments.
case features an Internet site for a simulated consult- thing to do with quality, but you aren’t quite sure what. To access the Web site:
You meet Meghan aboard the ship. She greets you and • Go to www.wiley.com/college/reid
ing company that works in the medical industry that says, “Let me tell you a bit about what you’ll be doing
for us. We’ve been working on quality measures for sev-
• Click Student Companion Site
eral years, and now must focus on quality even more as • Click Virtual Company/Cruise International, Inc.
has hired a student to help solve operations problems. our industry becomes more competitive. We need to • Click Consulting Assignments
make sure that our guests receive quality service from • Click Service Package and Processes at CII
In both cases, the students are given assignments that
require them to use information provided at the book
Web site to develop solutions. These exercises offer students
d h
hands-on d experience in the h
areas of supply chain management, statistical quality control, forecasting, just-in-time,
aggregate planning, inventory management, scheduling, and project management, and help
tie all the topics in the book together in a service environment.
in chapters can be overwhelming. We felt that breaking TQM is customer driven and encompasses the entire compa-
ny. Before you go on, you should know the four categories of
edge of quality. Last, you should know the seven concepts of
the TQM philosophy: customer focus, continuous improve-
quality costs. These are prevention and appraisal costs, which ment, employee empowerment, use of quality tools, product
up the chapter with a brief summary of key material is are costs that are incurred to prevent poor quality, and internal design, process management, and managing supplier quality.
Before You Begin Most example problems within the chapters, and end-of-chapter
solved problems, have a feature called “Before You Begin.” The feature provides students
with problem-solving tips and hints they need to consider before solving the problem. The
purpose is to help students with their problem-solving ability.
SSolved Problems Numerous solved problems are
Solved Problems (See student companion site for Excel template.)
PROBLEM 1 Solution:
pprovided, complete with step-by-step explanations to
An office security system at Delco, Inc. has two compo-
nent parts, both of which must work for the system to
Part 1 Part 2
eensure students understand the process and why the
function. Part 1 has a reliability of 80 percent, and part
2 has a reliability of 98 percent. Compute the reliability
R1 = 0.80 R2 = 0.98
pproblem is solved in a particular way. Where appropri-
of the system.
Before You Begin: Before you begin solving reliability The reliability of the system is
aate, we provide a series of steps for problem solving and
problems, it is best to first draw a diagram of the compo-
t R b th t th t f t i d
Rs = R1 X R2 ooffer problem-solving tips.
For Instructors
• Instructor’s Manual: Includes a suggested course outline, teaching tips and strat-
egies, war stories, answers to all end-of-chapter material, brief description of the
additional resources referenced in the Interactive Learning box, additional in-class
exercises, and tips on integrating the theory of constraints.
• Solutions Manual: A complete set of detailed solutions is provided for all problems.
• Virtual Company Cases Instructor’s Materials: Include accompanying Instruc-
tor’s Manual with answers to exercises and Excel solutions.
· Test Bank: A comprehensive Test Bank comprised of approximately 1700 questions
that consist of multiple choice, true-false, essay questions, and open-ended problems
for each chapter. The Test Bank is also available in a computerized version that allows
instructors to customize their exams.
• PowerPoint Lecture Slides: PowerPoint Slides are available for use in class. Full-
color slides highlight key figures from the text as well as many additional lecture out-
lines, concepts, and diagrams. Together, these provide a versatile opportunity to add
high-quality visual support to lectures.
• Operations Management Video Series: The video package, including Wiley’s own
Student OM Videos, offers video selections that tie directly to the theme of operations
management and bring to life many of the examples used in the text. Videos can be
viewed within WileyPLUS Learning Space.
Preface • xi
For Students
• Supplemental Chapters: The supplement chapters include Supplement A: Spread-
sheet Modeling: An Introduction; Supplement B: Introduction to Optimization; Sup-
plement C: Waiting Line Models; Supplement D: Master Scheduling and Rough-Cut
Capacity Planning.
• Excel Spreadsheets: Templates are provided so that students can model and solve
problems presented in the textbook. A spreadsheet icon appears next to those exam-
ples and problems in the textbook that have an accompanying Excel template avail-
able on the student Web site. Step-by-step directions are provided. Directions prompt
students as they work through each spreadsheet. Expected outcomes and questions
are also given.
Acknowledgments
Operations Management, Sixth Edition, benefits from insights provided by a dedicated group
of operations management educators from around the globe who carefully read and cri-
tiqued draft chapters of this and previous editions. We are pleased to express our apprecia-
tion to the following colleagues for their contributions:
Charles Foley, Columbus State Community College; Nicholas C. Georgantzas, Fordham Uni-
versity Business Schools; Gregory A. Graman, Michigan Technological University; Roger Dean
lles, The University of Memphis; Tony R. Johns, Clarion University of Pennsylvania; Anita Lee-
Post, University of Kentucky; Douglas Schneiderheinze, Lewis and Clark Community College.
Yossi Aviv, Washington University in St. Louis; Kevin Caskey, SUNY New Paltz; Scott T. Crino,
United States Military Academy; Phillip C. Fry, Boise State University; Thomas F. Gattiker,
Boise State University; Christian Grandzol, Bloomsburg University; Samuel Hazen, Tar-
leton State University; James He, Fairfield University; John Jensen, University of Southern
Maine; Mark Kesh, University of Texas at El Paso; Anita Lee-Post, University of Kentucky;
xii • Preface
Winston T. Lin, SUNY Buffalo; Jaideep Motwani, Grand Valley State University; Fariborz
Y. Partovi, Drexel University; Tamara Reid, Seattle University; Dmitriy Shaltayev, Christo-
pher Newport University; Marilyn Smith, Winthrop University; Robert J. Vokurka, Texas A&M
University–Corpus Christi; Pamaela J. Zelbst, Sam Houston State University.
Dennis Agboh, Morgan State University; Karen Eboch, Bowling Green State University; Greg
Graman, Michigan Technological University; GG Hegde, University of Pittsburgh; Seung-Lae
Kim, Drexel University; John Kros, East Carolina University; Anita Lee-Post, University of
Kentucky; David Little, High Point University; Robert Vokurka, Texas A&M University; John
Wang, Montclair State University.
Ajay Aggarwal, Millsaps College; Nezih Altay, University of Richmond; Suad Alway, Chicago
State University; Robert Amundsen, New York Institute of Technology; Gordon Bagot, Califor-
nia State University, Los Angeles; Cliff Barber, California Polytechnic State University, San Luis
Obispo; Hooshang Beheshti, Radford University; Prashanth Bharadwaj, Indiana University of
Pennsylvania; Joe Biggs, California Polytechnic State University; Debra Bishop, Drake Univer-
sity; Vincent Calluzzo, Iona College; James Campbell, University of Missouri–St. Louis; Kevin
Caskey, SUNY New Paltz; Sohail Chaudhry, Villanova University; Chin-Sheng Chen, Florida
International University; Kathy Dhanda, University of Portland; Barb Downey, University of
Missouri–Columbia; Joe Felan, University of Arkansas at Little Rock; Wade Ferguson, Western
Kentucky University; Teresa Friel, Butler University; Daniel Heiser, DePaul University; Lewis
Hofmann, The College of New Jersey; Lisa Houts, California State University, Fullerton; Tony
Inman, Louisiana Tech University; Richard Insinga, SUNY Oneonta; Tim Ireland, Oklahoma
State University; Mehdi Kaighobadi, Florida Atlantic University; Hale Kaynak, The University of
Texas–Pan American; William Coty Keller, St. Josephs College; Robert Kenmore, Keller Grad-
uate School of Management; Jennifer Kohn, Montclair State University; Dennis Krumwiede,
Idaho State University; Kevin Lewis, University of Wyoming; Ardeshir Lohrasbi, University of
Illinois at Springfield; Chris McDermott, Rensselaer Polytechnic Institute; John Miller, Mer-
cer University; Ajay Mishra, SUNY Binghamton; Ken Murphy, Florida International University;
Abraham Nahm, University of Wisconsin–Eau Claire; Len Nass, New Jersey City University;
Joao Neves, The College of New Jersey; Susan Norman, Northern Arizona University; Muham-
mad Obeidat, Southern Polytechnic State University; Barbara Osyk, The University of Akron;
Taeho Park, San Jose State University; Eddy Patuwo, Kent State University; Carl Poch, North-
ern Illinois University; Leonard Presby, William Paterson University; Will Price, University of
the Pacific; Randy Rosenberger, Juniata College; George Schneller, Baruch College–CUNY;
LW Schell, Nicholls State University; Kaushik Sengupta, Hofstra University; William Sherrard,
San Diego State University; Samia Siha, Kennesaw State University; Susan Slotnick, Cleveland
State University; Ramesh Soni, Indiana University of Pennsylvania; Ted Stafford, University
of Alabama in Huntsville; Peter Sutanto, Prairie View A&M University; Fataneh Taghabon-
i-Dutta, University of Michigan–Flint; Nabil Tamimi, University of Scranton; John Visich,
Bryant College; Tom Wilder, California State University, Chico; Peter Zhang, Georgia State
University; Faye X. Zhu, Rowan University.
David Alexander, Angelo State University; Stephen L. Allen, Truman State University; Jerry
Allison, University of Central Oklahoma; Suad Alwan, Chicago State University; Tony Arre-
ola-Risa, Texas A&M University; Gordon F. Bagot, California State University–Los Angeles;
Brent Bandy, University of Wisconsin–Oshkosh; Joseph R. Biggs, California Polytechnic State
University at San Luis Obispo; Jean-Marie Bourjolly, Concordia University; Ken Boyer, DePaul
University; Karen L. Brown, Southwest Missouri State University; Linda D. Brown, Middle Ten-
nessee State University; James F. Campbell, University of Missouri–St. Louis; Cem Canel, Uni-
versity of North Carolina at Wilmington; Chin-Sheng Chen, Florida International University;
Preface • xiii
Louis Chin, Bentley College; Sidhartha R. Das, George Mason University; Greg Dobson, Uni-
versity of Rochester; Ceasar Douglas, Grand Valley State University; Shad Dowlatshahi, Univer-
sity of Missouri–Kansas City; L. Paul Dreyfus, Athens State University; Lisa Ferguson, Hofstra
University; Mark Gershon, Temple University; William Giauque, Brigham Young University;
Greg Graman, Wright State University; Jatinder N.D. Gupta, Ball State University; Peter Haug,
Western Washington University; Daniel Heiser, DePaul University; Ted Helmer, F. Theodore
Helmer and Associates, Inc.; Lew Hofmann, The College of New Jersey; Lisa Houts, California
State University–Fresno; Tim C. Ireland, Oklahoma State University; Peter T. Ittig, University of
Massachusetts–Boston; Jayanth Jayaram, University of Oregon; Robert E. Johnson, University of
Connecticut; Mehdi Kaighobadi, Florida Atlantic University; Yunus Kathawala, Eastern Illinois
University; Basheer Khumawala, University of Houston; Thomas A. Kratzer, Malone College;
Ashok Kumar, Grand Valley State University; Cynthia Lawless, Baylor University; Raymond
P. Lutz, University of Texas at Dallas; Satish Mehra, University of Memphis; Brad C. Meyer,
Drake University; Abdel-Aziz M. Mohamed, California State University–Northridge; Charles
L. Munson, Washington State University; Kenneth E. Murphy, Florida International Univer-
sity; Jay Nathan, St. Johns University; Harvey N. Nye, University of Central Oklahoma; Susan E.
Pariseau, Merrimack College; Carl J. Poch, Northern Illinois University; Claudia H. Pragman,
Minnesota State University; Willard Price, University of the Pacific; Feraidoon Raafat, San
Diego State University; William D. Raffield, University of St. Thomas; Ranga Ramasesh, Texas
Christian University; Paul H. Randolph, Texas Tech University; Robert M. Saltzman, San Fran-
cisco State University; George O. Schneller IV, Baruch College– CUNY; A. Kimbrough Sher-
man, Loyola College in Maryland; William R. Sherrard, San Diego State University; Chwen
Sheu, Kansas State University; Sue Perrott Siferd, Arizona State University; Samia M. Siha,
Kennesaw State University; Natalie Simpson, SUNY Buffalo; Barbara Smith; Niagara College;
Victor E. Sower, Sam Houston State University; Linda L. Stanley, Our Lady of the Lake Univer-
sity; Donna H. Stewart, University of Wisconsin–Stout; Manouchehr Tabatabaei, University
of Tampa; Nabil Tamimi, University of Scranton; Larry Taube, University of North Carolina–
Greensboro; Giri K. Tayi, SUNY Albany; Charles J. Teplitz, University of San Diego; Timothy L.
Urban, The University of Tulsa; Michael L. Vineyard, Memphis State University; John Visich,
University of Houston; Robert Vokurka, Texas A&M University; George Walker, Sam Houston
State University; John Wang, Montclair State University; Theresa Wells, University of Wiscon-
sin–Eau Claire; T.J. Wharton, Oakland University; Barbara Withers, University of San Diego;
Steven A. Yourstone, University of New Mexico.
Special Thanks
We would also like to personally thank and acknowledge the work of our supplements
authors, who worked diligently to create a variety of support materials for both instructors
and students.
We would also like to express our appreciation to Mark Sullivan, AIA, NCARB, of Mark
Sullivan Architects, and Susan O’Hara, RN, MPH, of O’Hara HealthCare Consultants, who
generously contributed a simulation showing the before and after designs of an ambulatory
surgery unit. A working example of the Extend simulation they used to optimize the design
of the renovated facility is available on the Web site.
We would like to offer special acknowledgment to the publishing team at Wiley for their
creativity, talent, and hard work. Their great personalities and team spirit have made work-
ing on the book a pleasure. Special thanks go to Lisé Johnson, Executive Editor; Jennifer
xiv • Preface
Manias, Sponsoring Editor; and Suzie Pfister, Senior Production Editor, for all their efforts.
We could not have done it without you.
Other Wiley staff who contributed to the text and media include: Allison Morris,
Product Design Manager; Tom Nery, Senior Designer; Billy Ray, Senior Photo Editor; and
Amanda Dallas, Market Solutions Assistant.
About the Authors
R. Dan Reid is Associate Professor Emeritus of Operations Nada R. Sanders is Distinguished Professor of Supply
Management at the Whittemore School of Business and Eco- Chain Management at the D’Amore-McKim School of Busi-
nomics at the University of New Hampshire. He holds a Ph.D. ness at Northeastern University. She holds a Ph.D. in Opera-
in Operations Management from The Ohio State University, tions Management from The Ohio State University, an M.B.A.
an M.B.A. from Angelo State University, and a B.A. in Business from The Ohio State University, and a B.S. degree in Mechan-
Management from the University of Maryland. During the ical Engineering from Franklin University. She has taught for
past twenty years, he has taught at The Ohio State University, more than twenty-five years at a variety of academic insti-
Ohio University, Bowling Green State University, Otterbein tutions including The Ohio State University, Wright State
College, and the University of New Hampshire. University, Texas Christian University, and Lehigh University,
Dr. Reid’s research publications have appeared in numer- in addition to lecturing to various industry groups. She has
ous journals such as the Production and Inventory Man- designed and taught classes for undergraduates, graduates,
agement Journal, Mid-American Journal of Business, Cornell and executives on topics such as operations management,
Hotel and Restaurant Administration Quarterly, Hospitality operations strategy, forecasting, and supply chain manage-
Research and Education Journal, Target, and the OM Review. ment. She has received a number of teaching awards and is a
His research interests include manufacturing planning and Fellow of the Decision Sciences Institute.
control systems, quality in services, purchasing, and supply Dr. Sanders has extensive research experience and
chain management. He has worked for, or consulted with, has published in numerous journals such as Decisions
organizations in the telecommunications, consumer elec- Sciences, Journal of Operations Management, Sloan Man-
tronics, defense, hospitality, and capital equipment indus- agement Review, Omega, Interfaces, Journal of Behavioral
tries. Dr. Reid has served as Program Chair and President Decision Making, Journal of Applied Business Research,
of the Northeast Region of the Decision Sciences Institute and Production & Inventory Management Journal. She has
(NEDSI) and as Associate Program Chair and Proceedings authored chapters in books and encyclopedias such as
Editor of the First International DSI Conference, and held the Forecasting Principles Handbook (Kluwer Academic
numerous positions within DSI. He has been the Program Publishers), Encyclopedia of Production and Manufactur-
Chair and Chair of the Operations Management Division of ing Management (Kluwer Academic Publishers), and the
the Academy of Management. Dr. Reid has also served as Encyclopedia of Electrical and Electronics Engineering (John
President of the Granite State Chapter of the American Pro- Wiley & Sons). Dr. Sanders has served as Vice President
duction and Inventory Control Society. He has been a board of Decision Sciences Institute (DSI), President of the Mid-
member of the Operations Management Association and west Decision Sciences Institute, and has held numerous
the Manchester Manufacturing Management Center. Dr. other positions within the Institute. In addition to DSI, Dr.
Reid is a past Editor of the OM Review. Sanders is active in the Production Operations Manage-
Dr. Reid has designed and taught courses for undergrad- ment Society (POMS), APICS, INFORMS, Council of Supply
uates, graduates, and executives on topics such as resource Chain Management Professions (CSCMP), and the Inter-
management, manufacturing management, introduction national Institute of Forecasters (IIF). She has served on
to operations management, purchasing management, and review boards and/or as a reviewer for numerous journals
manufacturing planning and control systems. In 2002 Dr. including Decision Sciences, Journal of Business Logistics,
Reid received a University of New Hampshire Excellence in Production Operations Management, International Journal
Teaching Award. of Production Research, Omega, and others. In addition, Dr.
Sanders has worked and/or consulted for companies in
the telecommunications, pharmaceutical, steel, automo-
tive, warehousing, retail, and publishing industries, and is
frequently called upon to serve as an expert witness.
xv
Contents
Preface v CHAPTER 2
Operations Strategy and
About the Authors xv
Competitiveness 28
CHAPTER 3 CHAPTER 4
Product Design and Process Selection 54 Supply Chain Management 98
Product Design 55 Basic Supply Chains 99
Design of Services versus Goods 55 Components of a Supply Chain for a
The Product Design Process 56 Manufacturer 100
Idea Development 56 A Supply Chain for a Service Organization 102
Product Screening 58 The Bullwhip Effect 104
Preliminary Design and Testing 59 Issues Affecting Supply Chain
Final Design 60 Management 106
Factors Impacting Product Design 60 E-commerce and Supply Chains 106
Design for Manufacture 60 Consumer Expectations and Competition Resulting from
Product Life Cycle 61 E-commerce 108
Concurrent Engineering 62 Globalization 110
Remanufacturing 64 Infrastructure Issues 111
Process Selection 64 Government Regulation and E-commerce 113
Types of Processes 64 Green Supply Chain Management 113
Designing Processes 67 The Role of Purchasing 116
Process Performance Metrics 69 Traditional Purchasing and E-purchasing 116
Linking Product Design and Process Selection 72 Sourcing Decisions 120
Product Design Decisions 72 Insourcing versus Outsourcing Decisions 121
Competitive Priorities 74 Developing Supplier Relationships 123
Facility Layout 74 How Many Suppliers? 124
Product and Service Strategy 76 Developing Partnerships 125
Degree of Vertical Integration 76 Supplier Management Ethics 129
Technology Decisions 77 The Role of Warehouses 130
Information Technology 77 Crossdocking 132
Automation 78 Radio Frequency Identification Technology
E-manufacturing 80 (RFID) 134
Designing Services 82 Third-Party Service Providers 135
How Are Services Different from Implementing Supply Chain
Manufacturing? 82 Management 135
How Are Services Classified? 83 Strategies for Leveraging Supply Chain
The Service Package 84 Management 136
Differing Service Designs 84 Supply Chain Performance Metrics 137
Product Design and Process Selection Supply Chain Management Within OM:
Within OM: How It All Fits How It All Fits Together 139
Together 86 SCM Across the Organization 140
Product Design and Process Selection THE SUPPLY CHAIN LINK 140
Across the Organization 87 THE SUSTAINABILITY LINK 140
THE SUPPLY CHAIN LINK 88 Chapter Highlights 141
THE SUSTAINABILITY LINK 88 Key Terms 142
Chapter Highlights 88 Formula Review 142
Key Terms 89 Solved Problems 142
Formula Review 89 Discussion Questions 144
Solved Problems 90 Problems 144
Discussion Questions 91 CASE: Electronic Personal Heart Rate Monitors Supply
Problems 92 Chain Management Game 145
CASE: Biddy’s Bakery (BB) 94 CASE: Supply Chain Management At Durham
CASE: Creature Care Animal Clinic (B) 95 International Manufacturing Company (DIMCO) 148
INTERACTIVE CASE: Virtual Company 96 INTERACTIVE CASE: Virtual Company 148
INTERNET CHALLENGE: Country Comfort INTERNET CHALLENGE: Global
Furniture 96 Shopping 149
Selected Bibliography 96 Selected Bibliography 149
xviii • Contents
CHAPTER 7
CHAPTER 6 Just-in-Time and Lean Systems 234
Statistical Quality Control 185
The Philosophy of JIT 235
What Is Statistical Quality Control? 186 Eliminate Waste 235
Sources of Variation: Common and Assignable A Broad View of Operations 236
Causes 187 Simplicity 236
Contents • xix
To view Supplemental Chapters A-D, please visit www. CASE: Exeter Enterprises B25
wiley.com/college/reid or your WileyPLUS Learning Selected Bibliography B26
Space course.
SUPPLEMENT C
SUPPLEMENT A Waiting Line Models C1
Spreadsheet Modeling: An Introduction A1 Elements of Waiting Lines C2
Links to Practice: Waiting for Fast Food C2
What Are Models? A2
The Customer Population C3
The Spreadsheet Modeling Process A3
Evaluating the Spreadsheet Model A4 The Service System C3
Constructing the Model A6 Arrival and Service Patterns C5
Assessing Our Model A8 Waiting Line Priority Rules C5
Using the Model for Analysis A10 Waiting Line Performance Measures C6
Single-Server Waiting Line Model C6
Using Data Tables A13
Multiserver Waiting Line Model C9
Graphing the Model Results A16
Changing Operational Characteristics C12
Multiple-Criteria Decision Making A17
Larger-Scale Waiting Line Systems C13
Relative and Absolute Cell Referencing A19
Waiting Line Models Within OM: How It All Fits
Entering Formulas in the Model A20
Together C14
Useful Spreadsheet Tips A25
Supplement Highlights C14
Important Excel Formulas A25
Key Terms C15
Spreadsheet Modeling Within OM:
How It All Fits Together A27 Formula Review C15
Supplement Highlights A27 Solved Problems C15
Key Terms A28 Discussion Questions C18
Discussion Questions A28 Problems C18
Problems A28 CASE: The Copy Center Holdup C19
CASE: Diet Planning A30
Selected Bibliography C19
Selected Bibliography A31
SUPPLEMENT D
Master Scheduling and Rough-Cut Capacity
SUPPLEMENT B Planning D1
Introduction to Optimization B1
Master Production Scheduling D2
Optimization B2 MPS as a Basis of Communication D2
Algebraic Formulation B3 Objectives of Master Scheduling D3
Examining the Formulation B6 Developing an MPS D4
Spreadsheet Model Development B7 Rough-Cut Capacity Planning D5
Testing the Model B8 Evaluating and Accepting the MPS D8
Solver Basics B8 Using the MPS D9
Setting Up and Running Solver B9 Stabilizing the MPS D12
Solving the Problem B12 Master Production Scheduling and Rough-Cut
Interpreting the Solution B13 Capacity Planning within OM: How It All Fits
Solver Solution Reports B14 Together D14
Outcomes of Linear Programming Problems B16 Supplement Highlights D14
Optimization Within OM: How It All Fits Key Terms D15
Together B17 Formula Review D15
Supplement Highlights B18 Solved Problems D15
Key Terms B18 Discussion Questions D20
Solved Problems B18 Problems D20
Discussion Questions B23 CASE: Newmarket International Manufacturing
Problems B24 Company (C) D22
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FIG. 243.—METHOD OF SHAPING AND HOLDING LOG FOR QUARTER
SAWING.
The Band Saw is an endless belt of steel having teeth formed along one
edge and traveling continuously around an upper and lower pulley, with
its toothed edge presented to the timber to be cut, as seen in Fig. 244,
which represents a form of band saw made by the J. A. Fay & Egan
Company, of Cincinnati. A form of band saw is found as early as 1808, in
British patent No. 3,105, to Newberry. On March 25, 1834, a French
patent was granted for a band saw to Etiennot, No. 3,397. The first
United States patent for a band saw was granted to B. Barker, January 6,
1836, but it remained for the last quarter of the Nineteenth Century to
give the band saw its prominence in woodworking machines. That it did
not find general application at an earlier period was due to the difficulty
experienced in securely and evenly joining the ends of the band. For
many years the only moderately successful band saws were made in
France, but expert mechanical skill has so mastered the problem that in
recent years the band saw has gone to the very front in wood-sawing
machinery. To-day it is in service in sizes from a delicate filament, used
for scroll sawing and not larger than a baby’s ribbon, to an enormous
steel belt 50 feet in peripheral measurement, and 12 inches wide,
traveling over pulleys 8 feet in diameter, making 500 revolutions per
minute, and tearing its way through logs much too large for any circular
saw, at the rate of nearly two miles a minute. A modern form of such a
saw is seen in Fig. 245. Prescott’s patents, Nos. 368,731 and 369,881, of
1887; 416,012, of 1889, and 472,586 and 478,817, of 1892, represent
some of the important developments in the band saw.
When the band saw is applied to cutting logs the backward movement of
the carriage would, if there were any slivers on the cut face of the log, be
liable to force those slivers against the smooth edge of the band saw, and
distort and possibly break it. To obviate this the saw carriage is provided
with a lateral adjustment on the back movement called an “off-set,” so
that the log returns for a new cut out of contact with the saw. Examples
of such off-setting are found in patents to Gowen, No. 383,460, May 29,
1888, and No. 401,945, April 23, 1889, and Hinkley, No. 368,669, August
23, 1887. A modern form of the band saw, however, has teeth on both its
edges, which requires no off-setting mechanism, but cuts in both
directions. An example of this, known as the telescopic band mill, is made
by the Edward P. Allis Company, of Milwaukee.
A saw which planes, as well as severs, is shown in patents to Douglass,
Nos. 431,510, July 1, 1890, and 542,630, July 16, 1895. Steam power
mechanism for operating the knees is shown in patent to Wilkin, No.
317,256, May 5, 1885. Means for quarter sawing in both directions of log
travel are shown in patent to Gray, No. 550,825, December 3, 1895.
Means for operating log turners and log loaders appear in patents to Hill,
No. 496,938, May 9, 1893; No. 466,682, January 5, 1892; No. 526,624,
September 25, 1894, and Kelly, No. 497,098, May 9, 1893. A self cooling
circular saw is found in patent to Jenks, No. 193,004, July 10, 1877;
shingle sawing machines in patents to O’Connor, No. 358,474, March 1,
1887, and No. 292,347, January 22, 1884, and Perkins, No. 380,346, April
3, 1888; and means for severing veneer spirally and dividing it into
completed staves, are shown in patent to Hayne, No. 509,534, November
28, 1893.
Planing Machines.—While the saw plays the initial part of shaping the
rough logs into lumber, it is to the planing machine that the refinements
of woodworking are due. Its rapidly revolving cutter head reduces the
uneven thickness of the lumber to an exact gauge, and simultaneously
imparts the fine smooth surface. The planing machine is organized in
various shapes for different uses. When the cutters are straight and
arranged horizontally, it is a simple planer. When the cutters are short
and arranged to work on the edge of the board they are known as
edgers; when the edges are cut into tongues and grooves it is called a
matching machine; and when the cutters have a curved ornamental
contour it is known as a molding machine, and is used for cutting the
ornamental contour for house trimmings and various ornamental uses.
The planing machine was one of the many woodworking devices invented
by General Bentham. His first machine, British patent No. 1,838, of 1791,
was a reciprocating machine, but in his British patent No. 1,951, of 1793,
he described the rotary form along with a great variety of other
woodworking machinery.
Bramah’s planer, British patent No. 2,652, of 1802, was about the first
planing machine of the Nineteenth Century. It is known as a transverse
planer, the cutters being on the lower surface of a horizontal disc, which
is fixed to a vertical revolving shaft, and overhangs the board passing
beneath it, the cutters revolving in a plane parallel with the upper surface
of the board. The planing machine of Muir, of Glasgow, British patent No.
5,502, of 1827, was designed for making boards for flooring, and
represented a considerable advance in the art.
With the greater wooded areas of America, the rapid growth of the young
republic, and the resourceful spirit of its new civilization, the leading
activities in woodworking machinery were in the second quarter of the
Nineteenth Century transferred to the United States, and a phenomenal
growth in this art ensued. Conspicuous among the early planing machine
patents in the United States was that granted to William Woodworth,
December 27, 1828. This covered broadly the combination of the cutting
cylinders, and rolls for holding the boards against the cutting cylinders,
and also means for tongueing and grooving at one operation. The
revolving cutting cylinder had been used by Bentham thirty-five years
before, and rollers for feeding lumber to circular saws were described in
Hammond’s British patent No. 3,459, of 1811, but Woodworth did not
employ his rolls for feeding, as a rack and pinion were provided for that,
but his rolls had a co-active relation with a planer cylinder, or cutter head,
in holding the board against the tendency of the cutter head to pull the
board toward it. A patent was granted to Woodworth for these two
features in combination, which patent was reissued July 8, 1845, twice
extended, and for a period of twenty-eight years from its first grant,
exerted an oppressive monopoly in this art, since it covered the
combination of the two necessary elements of every practical planer.
Following the Woodworth patent came a host of minor improvements,
among which were the Woodbury patents, extending through the period
of the third quarter of the Nineteenth Century, and prominent among
which is the patent to J. P. Woodbury, No. 138,462, April 20, 1873,
covering broadly a rotary cutter head combined with a yielding pressure
bar to hold the board against the lifting action of the cutter head.
In modern planing machinery the climax of utility is reached in the so-
called universal woodworker. This is the versatile Jack-of-all-work in the
planing mill. It planes flat, moulded, rabbeted, or beaded surfaces; it
saws with both the rip and crosscut action; it cuts tongues and grooves;
makes miters, chamfers, wedges, mortises and tenons, and is the general
utility machine of the shop.
In Fig. 246 is shown a well known form of planing machine. Its work is to
plane the surfaces of boards, and to cut the edges into tongues and
groves, such as are required for flooring. This machine planes boards up
to 24 inches wide and 6 inches thick, and will tongue and grove 14 inches
wide.
Wood Turning.—To this ancient art Blanchard added, in 1819, his very
ingenious and important improvement for turning irregular forms. A few
efforts at irregular turning had been made before, but in the arts
generally only circular forms had been turned. With Blanchard’s
improvement, patented January 20, 1820, any irregular form, such as a
shoe-last, gun-stock, ax-handle, wheel-spokes, etc., could be smoothly
and expeditiously turned and finished in any required shape. In the
ordinary lathe the work is revolved rapidly, and the cutting tool is held
stationary, or only slowly shifted in the hand. In the Blanchard lathe the
work is hung in a swinging frame, and turned very slowly to bring its
different sides to the cutting action, and the cutting tool is constructed as
a rapidly revolving disk, against which the work is projected bodily by the
oscillation of the swinging frame, to accommodate the irregularities of the
form. In order to do this automatically, a pattern or model of the article
to be turned was also hung in the swinging frame, and made to slowly
revolve and bear against a pattern wheel, which, acting upon the
swinging frame carrying the work, caused it to advance to or recede from
the cutting disc exactly in proportion to the contour of the model, and
thus cause the revolving cutters to cut the block as it turns synchronously
with the model, to a shape exactly corresponding to said model.
Early Iron Furnace—Operations of Lord Dudley, Abraham Darby and Henry Cort—
Neilson’s Hot Blast—Great Blast Furnaces of Modern Times—The Puddling Furnace
—Bessemer Steel and the Converter—Open Hearth Steel—Siemens’ Regenerative
Furnace—Siemens-Martin Process—Armor Plate—Making Horse Shoes—Screws and
Special Machines—Electric Welding, Annealing and Tempering—Coating with Metal—
Metal Founding—Barbed Wire Machines—Making Nails, Pins, etc.—Making Shot—
Alloys—Making Aluminum, and Metallurgy of Rarer Metals—The Cyanide Process—
Electric Concentrator.
ake away iron and steel from the resources of modern life, and the
The first iron furnaces were known as air bloomeries, and had no forced
draft. The first step of importance in iron making was the forced blast. An
early form of blast furnace is shown in Fig. 249, which represents an iron
furnace of the Kols, a tribe of iron smelters in Lower Bengal and Orissa.
An inclined tray terminates at its lower end in a furnace inclosure.
Charcoal in the furnace being well ignited, ore and charcoal resting on
the tray are alternately raked into the furnace. The blowers are two
boxes, connected to the furnace by bamboo pipes, and provided with skin
covers, which are alternately depressed by the feet and raised by cords
from the spring poles. Each skin cover has a hole in the middle, which is
stopped by the heel of the workman as the weight of the person is
thrown upon it, and is left open by the withdrawal of the foot as the
cover is raised. The heels of the workman, alternately raised, form
alternately acting valves, and the skin cover, when depressed, acts as a
bellows. The fused metal sinks to a basin in the bottom of the furnace,
and the slag or impurities run off above the level of the basin at the side
of the furnace.
The great modern art of iron working dates from Lord Dudley’s British
patent, No. 18, of 1621, which related to “The mistery, arte, way and
meanes of melting iron owre, and of makeing the same into cast workes
or barrs with seacoales or pittcoales in furnaces with bellowes of as good
condicon as hath bene heretofore made of charcoale.”
The next step of importance after the blast furnace was the substitution
of coke for coal for the reduction of the ore, which was introduced by
Abraham Darby, about 1750.
Next came the conversion of cast iron into wrought iron. This was mainly
the work of Mr. Henry Cort, of Gosport, England, who, in 1783-84,
introduced the processes of puddling and rolling, which were two of the
most important inventions connected with the production of iron since
the employment of the blast furnace. Mr. Cort obtained British patents
No. 1,351, of 1783, and No. 1,420, of 1784, for his invention. His first
patent related to the hammering, welding, and rolling of the iron, while in
his second patent he introduced what is known as the reverberatory
furnace, having a concave bottom, into which the fluid metal is run from
the smelting furnace, and which is converted from brittle cast iron,
containing a certain per cent. of carbon, into wrought iron, which has the
carbon eliminated, and is malleable and tough. This process is called
puddling, and consists in exposing the molten metal to an oxidizing
current of flame and air. The metal boils as the carbon is burned out, and
as it becomes more plastic and stiff it is collected into what are called
blooms, and these are hammered to get rid of the slag, and are reduced
to marketable shape as wrought iron by the process described in his
previous patent. Mr. Cort expended a fortune in developing the iron trade,
and was one of the greatest pioneers in this art.
The first notable development of the Nineteenth Century was the
introduction of the hot air blast in forges and furnaces where bellows or
blowing apparatus was required. This was the invention of J. Beaumont
Neilson, of Glasgow, and was covered by him in British patent No. 5,701
of 1828. This consisted in heating the air blast before admitting it to the
furnace, and it so increased the reduction of refractory ores in the blast
furnace as to permit three or four times the quantity of iron to be
produced with an expenditure of little more than one-third of the fuel.
FIG. 250.—MODERN HOT BLAST FURNACE.
The present annual output of pig iron in the United States is about ten
million tons, of which these four companies make about one-half.
FIG. 251.—PUDDLING FURNACE.
When the iron runs from the bottom of the blast furnace it is allowed to
flow into trough-like moulds in the sand of the floor, and forms pig iron.
Pig iron can be remelted and cast into various articles in moulds, but it
cannot be wrought with the hammer, nor rolled into rails or plates, nor
welded on the anvil, because it is still a compound of iron and carbon
with other impurities, and is crystalline in character. To bring it into
wrought iron, which is malleable and ductile, it is puddled and refined,
which involves chiefly the burning out of the carbon and silicon. The pig
iron is remelted (see Fig. 251) in the tray-shaped hearth b from the heat
of the fire in the reverberatory furnace a, the reverberatory furnace being
one in which the materials treated are exposed to the heat of the flame,
but not to contact with the fuel. The hot flame mixed with air beating
down upon the melted iron on hearth b for two hours or so, burns out
the silicon and carbon, the process being facilitated by stirring and
working the mass with tools. During the operation the oxygen of the air
combines with the carbon and forms carbonic acid gas, which, in
escaping from the metal, appears to make it boil. When the iron parts
with its carbon it loses its fluidity and becomes plastic and coherent, and
is formed into balls called blooms. These blooms consist of particles of
nearly pure iron cohering, but retaining still a quantity of slag or vitreous
material, and other impurities, which slag, etc., is worked out while still,
hot by a squeezing, kneading, and hammering process to form wrought
iron that may be worked into any shape between rolls or under the
hammer.
Like most all valuable inventions, Mr. Bessemer’s claim to priority for the
invention was contested. An American inventor, William Kelly, in an
interference with Mr. Bessemer’s United States patent, successfully
established a claim to the broad idea of forcing air into the red hot cast
iron, and United States patent No. 17,628, June 23, 1857, was granted to
Mr. Kelly. The honor of inventing and introducing a successful process and
apparatus for making steel by this method, however, fairly belongs to Mr.
Bessemer, to whose work was to be added the valuable contribution of
Robert F. Mushet (British patent No. 2,219, of 1856) of adding
spiegeleisen, a triple compound of iron, carbon and manganese, to the
charge in the converter. This step served to regulate the supply of carbon
and eliminate the oxygen, and completed the process of making steel.
The Holly converter, covered by United States patents No. 86,303, and
No. 86,304, January 26, 1869, represented one of the most important
American developments of the Bessemer converter.
The importance of Bessemer steel in its influence upon modern
civilization is everywhere admitted. It has so cheapened steel that it now
competes with iron in price. Practically all railroad rails, iron girders and
beams for buildings, nails, etc., are made from it at a cost of between
one and two cents per pound.
In recognition of the great benefits conferred upon humanity by this
process, Queen Victoria conferred the degree of knighthood upon the
inventor, and his fortune resulting from his invention is estimated to have
grown for some time at the rate of $500,000 a year. In a historical sketch
of the development of his process, delivered by Sir Henry Bessemer in
December, 1896, before the American Society of Mechanical Engineers at
New York, Mr. Bessemer was reported as saying that the annual
production of Bessemer steel in Europe and America amounted to
10,000,000 tons. The production of Bessemer steel in the United States
for 1897 was for ingots and castings 5,475,315 tons, and for railroad rails
1,644,520 tons. The extent to which steel has displaced iron is shown by
the fact that in the same year iron rails to the extent of 2,872 tons only
were made, as compared with more than a million and a half tons of
Bessemer steel.
In the popular vote taken by the Scientific American, July 25, 1896, as to
what invention introduced in the past fifty years had conferred the
greatest benefit upon mankind, Bessemer steel was given the place of
honor.
A recent improvement in the handling of iron from the blast furnace is
shown in Fig. 255. Heretofore, the iron was run in open sand moulds on
the floor and allowed to cool in bars called “pigs,” which were united in a
series to a main body of the flow, called a “sow.” To break the “pigs” from
the “sow,” and handle the iron in transportation, was a very laborious and
expensive work. The illustration shows two series of parallel trough
moulds, each forming an endless belt, running on wheels. The molten
cast iron is poured direct into these moulds, and as they travel along they
pass beneath a body of water, which cools and solidifies the iron into
pigs, and then carries them up an incline and dumps them directly into
the cars.
The second method utilizes great steam hammers weighing 125 tons,
and striking Titanic blows upon the yielding metal. The most modern
method, however, is by the hydraulic press forge, now used in the shops
of the Bethlehem steel works in the production of Harveyized armor
plate. In Fig. 257 is seen the great 14,000-ton hydraulic press-forge
squeezing into shape a port armor plate for the battleship “Alabama.”
After leaving the forge, the plate is trimmed to shape by the savage bite
of a rotary saw and planer, seen in Figs. 258 and 259, whose insatiable
appetites tear off the steel like famished fiends. The plate is then taken to
be Harveyized by cementation, hardening, and tempering, as seen in
Figs. 260, 261, and 262. The 125-ton mass of metal representing the
plate in the rough, and weighing more than a locomotive, is thus handled
and brought to shape with an ease and dispatch that inspires the
observer with mixed emotions of admiration and awe.
FIG. 258.—ROTARY SAW, CUTTING HEAVY ARMOR PLATE.
Tons Tons
Pig Iron. Steel.
United States 9,652,680 7,156,957
Great Britain 8,789,455 4,585,961
Germany 6,879,541 4,796,226
France 2,472,143 1,312,000
The United States made in that year 29.30 per cent. of the world’s
production of pig iron, and 34.58 per cent. of its steel. The total output of
the whole world in that year was 32,937,490 tons pig iron, and
20,696,787 tons of steel.
Metallurgy of Rarer Metals.—Although less in evidence than iron, this has
engaged the attention of the scientist from the earliest years of the
century. The full list of metals discovered since 1800 may be found under
“Chemistry.” The more important only are here given. Palladium and
rhodium were reduced by Wollaston in 1804. Potassium and sodium were
first separated in metallic form by Sir Humphrey Davy in 1807, through
the agency of the voltaic arc; barium, strontium, calcium and boron by
the same scientist in 1808; iodine by Courtois in 1811; selenium by
Berzelius in 1817; cadmium by Stromeyer in 1817; silicon by Berzelius in
1823, and bromium by Balard in 1826. Magnesium was first prepared by
Bussey in 1829. Aluminum was first separated in 1828 by Wohler, by
decomposing the chloride by means of potassium. Oersted, in 1827,
preceded him with important preliminary steps, and Deville, in 1854,
followed in the first commercial applications. In late years the metallurgy
of aluminum has made great advances. The Cowles process heats to
incandescence by the electric current a mixture of alumina, carbon and
copper, the reduced aluminum alloying with the copper. This process is
covered by United States patents to Cowles and Cowles, No. 319,795,
June 9. 1885, and Nos. 324,658 and 324,659, August 18, 1885. It has,
however, for the most parts been superseded by the process patented by
Hall, April 2, 1889, No. 400,766, in which alumina dissolved in fused
cryolite is electrically decomposed.
In the metallurgy of the precious metals probably the most important
step has been the cyanide process of obtaining gold and silver. In 1806 it
was known that gold was soluble in a solution of cyanide of potassium. In
1844 L. Elsner published investigations along this line, and demonstrated
that the solution took place only in the presence of oxygen. McArthur and
Forrest perfected the process for commercial application, and it is now
extensively used in the Transvaal and elsewhere. It is covered by their
British patent, No. 14,174, of 1887, and United States patents No.
403,202, May 14, 1889, and No. 418,137, December 24, 1889, which
describe the application of dilute solutions of cyanide of potassium, not
exceeding 8 parts cyanogen to 1,000 parts of water: the use of zinc in a
fine state of division to precipitate the gold out of solution, and the
preparatory treatment of the partially oxidized ores with an alkali or salts
of an alkali. By this solution-process gold, in the finest state of
subdivision, which could not be extracted by other processes from the
earthy matters, may be recovered and saved in a simple, practical and
cheap way.
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