September 9, 2019

Marketing Management - Kotler and Keller 15th Edition - Book Information - Chapter Summaries

Browse  Online MBA Management Theory Handbook




Marketing Management - Kotler and Keller 15th Edition - Table of Contents  - Chapter Summaries


Table of Contents

Part 1. Understanding Marketing Management

1. Defining Marketing for the New Realities
    Summary of chapter 1. http://nraomtr.blogspot.com/2016/03/ch1-defining-marketing-for-new.html
2. Developing Marketing Strategies and Plans  - Summary  - Strategy development process - Attack and defense strategies

Part 2. Capturing Marketing Insights

3. Collecting Information and Forecasting Demand  - Summary
4. Conducting Marketing Research - Research on competition - Marketing research

Part 3. Connecting with Customers

5. Creating Long-term Loyalty Relationships - Summary
6. Analyzing Consumer Markets - Summary
7. Analyzing Business Markets - Summary
8. Tapping into Global Markets - Summary

Part 4. Building Strong Brands

9. Identifying Market Segments and Targets - Summary
10. Crafting the Brand Positioning  - Summary - to be developed
11. Creating Brand Equity - Summary
12. Meeting Competition and Driving Growth - Leader strategy - Challenger strategy

Part 5. Creating Value - Shaping the Market Offerings

13. Setting Product Strategy - Summary
14. Designing and Managing Services - Summary
15. Introducing New Market Offerings - Summary
16. Developing Pricing Strategies and Programs - Summary

Part 6. Delivering Value

17. Designing and Managing Integrated Marketing Channels - Summary
18. Managing Retailing, Wholesaling, and Logistics - Summary - Marketing logistics

Part 7. Communicating Value

19. Designing and Managing Integrated Marketing Communications - Summary -  Communication Channels
20. Managing Digital Communications: Online, Social Media and Mobile Marketing - Digital marketing
21. Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations - Advertising  - Sales promotion - Public relations
22. Managing Personal Communications: Direct Marketing, Word of Mouth, and Personal Selling - Direct marketing - Personal selling

Part 8. Managing the Marketing Organization

23. Conducting Marketing Responsibly for Long-Term Success - SummaryEvaluation and Control - Marketing orientation - Marketing Productivity


New and Special Features


Four key dimensions of holistic marketing are described  throughout the text:

Internal marketing—ensuring everyone in the organization embraces appropriate marketing principles, especially senior management.
Integrated marketing—ensuring that multiple means of creating, delivering, and communicating value are employed and combined in the best way.
Relationship marketing—having rich, multifaceted relationships with customers, channel members, and other marketing partners.
Performance marketing—understanding returns to the business from marketing activities and programs, as well as addressing broader concerns and their legal, ethical, social, and environmental effects.


CASES:  Each chapter  now includes two expanded Marketing Excellence mini-cases highlighting innovative, insightful marketing accomplishments by leading organizations. Each case includes questions.

Address today’s economic, environmental, and technological changes in marketing: Throughout the new edition, these three areas are addressed with emphasis on marketing during economic downturns and recessions, the rise of sustainability and green marketing, and the increased development of computing power, the Internet, and mobile phones.


Marketing in Action Mini-cases:  The end-of-chapter sections now include two Marketing in Action mini-cases that highlight innovative, insightful marketing accomplishments from leading organizations.

Chapter Changes


NEW! A new chapter 21 Managing Digital Communications: Online, Social Media and Mobile has been added to better highlight that important topic. Significant attention is paid throughout  the text to  “the digital revolution” occurring in Marketing.

NEW! The global marketing chapter is now made chapeter .8  The new products marketing chapter  is now made chapter 15.
UPDATED! The last chapter has been retitled “Managing a Holistic Marketing Organization for the Long Run” and addresses corporate social responsibility, business ethics, and sustainability, among other topics.
UPDATED! Chapter 12 has been retitled “Addressing Competition and Driving Growth” to acknowledge the importance of growth to an organization.


https://www.pearsonhighered.com/product/Kotler-Marketing-Management-15th-Edition/9780133856460.html


Authors

Philip Kotler - Biography


Philip Kotler is one of the world’s leading authorities on marketing. He is the S. C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University. He received his master’s degree at the University of Chicago and his Ph.D. at MIT, both in economics. He did postdoctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago.

Dr. Kotler is the coauthor of Principles of Marketing and Marketing: An Introduction. His Strategic Marketing for Nonprofit Organizations, now in its seventh edition, is the best seller in that specialized area. Dr. Kotler’s other books include Marketing Models; The New Competition; Marketing Professional Services; Strategic Marketing for Educational Institutions; Marketing for Health Care Organizations; Marketing Congregations; High Visibility; Social Marketing; Marketing Places; The Marketing of Nations; Marketing for Hospitality and Tourism; Standing Room Only—Strategies for Marketing the Performing Arts; Museum Strategy and Marketing; Marketing Moves; Kotler on Marketing; Lateral Marketing; Winning at Innovation; Ten Deadly Marketing Sins; Chaotics; Marketing Your Way to Growth; Winning Global Markets; and Corporate Social Responsibility.

In addition, he has published more than 150 articles in leading journals, including the Harvard Business Review, Sloan Management Review, Business Horizons, California Management Review, the Journal of Marketing, the Journal of Marketing Research, Management Science, the Journal of Business Strategy, and Futurist. He is the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article published in the Journal of Marketing.

Professor Kotler was the first recipient of the American Marketing Association’s (AMA) Distinguished Marketing Educator Award (1985). The European Association of Marketing Consultants and Sales Trainers awarded him their Prize for Marketing Excellence. He was chosen as the Leader in Marketing Thought by the Academic Members of the AMA in a 1975 survey. He also received the 1978 Paul Converse Award of the AMA, honoring his original contribution to marketing. In 1995, the Sales and Marketing Executives International (SMEI) named him Marketer of the Year. In 2002, Professor Kotler received the Distinguished Educator Award from the Academy of Marketing Science. In 2013, he received the William L. Wilkie “Marketing for a Better World” Award and subsequently received the Sheth Foundation Medal for Exceptional Contribution to Marketing Scholarship and Practice.In 2014, he was inducted in the Marketing Hall of Fame.

He has received honorary doctoral degrees from Stockholm University, the University of Zurich, Athens University of Economics and Business, DePaul University, the Cracow School of Business and Economics, Groupe H.E.C. in Paris, the Budapest School of Economic Science and Public Administration, the University of Economics and Business Administration in Vienna, and Plekhanov Russian Academy of Economics.

Professor Kotler has been a consultant to many major U.S. and foreign companies, including IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines, Michelin, and others in the areas of marketing strategy and planning, marketing organization, and international marketing.
He has been Chairman of the College of Marketing of the Institute of Management Sciences, a Director of the American Marketing Association, a Trustee of the Marketing Science Institute, a Director of the MAC Group, a member of the Yankelovich Advisory Board, and a member of the Copernicus Advisory Board. He was a member of the Board of Governors of the School of the Art Institute of Chicago and a member of the Advisory Board of the Drucker Foundation. He has traveled extensively throughout Europe, Asia, and South America, advising and lecturing to many companies about global marketing opportunities.

Kevin Lane Keller - Biography


Kevin Lane Keller is the E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College. Professor Keller has degrees from Cornell, Carnegie-Mellon, and Duke universities. At Dartmouth, he teaches MBA courses on marketing management and strategic brand management and lectures in executive programs on those topics.

Previously, Professor Keller was on the faculty at Stanford University, where he also served as the head of the marketing group. Additionally, he has been on the faculty at the University of California at Berkeley and the University of North Carolina at Chapel Hill, has been a visiting professor at Duke University and the Australian Graduate School of Management, and has two years of industry experience as Marketing Consultant for Bank of America.

Professor Keller's general area of expertise lies in marketing strategy and planning and branding. His specific research interest is in how understanding theories and concepts related to consumer behavior can improve marketing strategies. His research has been published in three of the major marketing journals: the Journal of Marketing, the Journal of Marketing Research, and the Journal of Consumer Research. He also has served on the Editorial Review Boards of those journals. With more than 90 published papers, his research has been widely cited and has received numerous awards.

Actively involved with industry, he has worked on a host of different types of marketing projects. He has served as a consultant and advisor to marketers for some of the world’s most successful brands, including Accenture, American Express, Disney, Ford, Intel, Levi Strauss, Procter & Gamble, and Samsung.

A popular and highly sought-after speaker, he has made speeches and conducted marketing seminars to top executives in a variety of forums. Some of his senior management and marketing training clients have included include such diverse business organizations as Cisco, Coca-Cola, Deutsche Telekom, ExxonMobil, GE, Google, IBM, Macy’s, Microsoft, Nestle, Novartis, Pepsico, SC Johnson and Wyeth. He has lectured all over the world, from Seoul to Johannesburg, from Sydney to Stockholm, and from Sao Paulo to Mumbai. He has served as keynote speaker at conferences with hundreds to thousands of participants.

Professor Keller is currently conducting a variety of studies that address strategies to build, measure, and manage brand equity. His textbook on those subjects, Strategic Brand Management, in its fourth edition, has been adopted at top business schools and leading firms around the world and has been heralded as the “bible of branding.”

An avid sports, music, and film enthusiast, in his so-called spare time, he has helped to manage and market, as well as serve as executive producer for, one of Australia’s great rock-and-roll treasures, The Church, as well as American power-pop legends Tommy Keene and Dwight Twilley.


Top 100 Management Theory Articles of the blog

Updated on 10 September 2019, 28 March 2016

September 8, 2019

Colgate-Palmolive - Supply Chain Management - Evolution



Colgate-Palmolive  

Procurement Policies
https://www.colgatepalmolive.com/en-us/core-values/our-policies/procurement-policies

Third Party Code of Conduct
The Third Party Code of Conduct conveys Colgate-Palmolive’s expectations regarding the ethical conduct we expect from our suppliers, distributors, agents, customers, research partners, and all other third parties with whom we work. Third Party Code of Conduct

FCPA and Antibribery Policy
Colgate-Palmolive's commitment to dealing legally and ethically applies worldwide. We comply with all applicable anti-bribery laws, including but not limited to the U.S. Foreign Corrupt Practices Act ("FCPA"), everywhere we do business, and we expect the same of the third parties with whom we work. Antibribery Policy

Colgate-Palmolive Code of Conduct
At Colgate-Palmolive, our reputation for high ethical standards remains among our greatest business assets. We articulate our principles and values in the Colgate-Palmolive Code of Conduct. Download the complete Code of Conduct.

Business Practices Guidelines
Our Business Practices Guidelines illustrate how the values and principles outlined in the Colgate-Palmolive Code of Conduct apply to particular business situations. Read more about our Business Practices Guidelines.


https://www.domo.com/blog/gartner-scc-diary-part-3-people-data-and-systems-arent-sustainable-without-each-other/
7 August 2019

“without the right tech investment, you aren’t optimized and you aren’t synchronized.”

Organizations need to link supply and demand in order to understand the customer in the middle and ensure transparent reporting throughout. Synchronizing the two creates collaboration, and collaboration starts with data. On a team level, Colgate-Palmolive’s Ann Tracy argued that it starts with collaboration. Data needs to be accessible across each function of the business—from senior leaders on down to more junior staff—and ultimately add value for the end user.


6 August 2019

Colgate redesigned the toost paste tube to make to recyclable and go into recycler plants
https://www.fastcompany.com/90365130/colgate-redesigned-the-toothpaste-tube-so-its-actually-recyclable

June 2019
Manufacturing Analytics: Colgate Palmolive Optimizes for Agility and Productivity

Manufacturing operations have to support growth and agility while continuing to excel at operational efficiency. Colgate has blended design and manufacturing analytics to accelerate the pace of decision making
https://www.gartner.com/en/conferences/emea/supply-chain-spain/speakers/case-study

21 May 2019
Colgate-Palmolive Joins TerraCycle’s Loop Initiative to Eliminate Single-Use Packaging
https://investor.colgatepalmolive.com/news-releases/news-release-details/colgate-palmolive-joins-terracycles-loop-initiative-eliminate



https://nulogy.com/resource/how-nulogy-has-helped-colgate-palmolive-build-supply-chain-agility-within-late-stage-customization/

Gain insights from this supply chain leader on the delivery of 42 consecutive quarters of margin improvement.

Josué Muñoz, Vice President of Global Customer Service and Logistics at Colgate Palmolive presenting at the Supply Chain Insights Global Summit on September 11, 2014
______________

______________

May 15, 2013
Supply Chain Blog Series : S&OP at Colgate Palmolive
https://blogs.sap.com/2013/05/15/supply-chain-blog-series-sop-at-colgate-palmolive/

Colgate: A Closer Look at Supply Chain Excellence - Insights from Michael Corbo, the head of supply chain at Colgate.
April 26, 2013
http://www.supplychainshaman.com/uncategorized/colgate-a-closer-look-at-supply-chain-excellence/







Colgate's first SAP Order to Cash (SAP R3) implementation was in 1996. Today (2007), 100 countries representing more than 99 percent of the business are on this core system. The full portfolio includes SAP's Supply Chain, CRM, Business Intelligence, Human Resources and Portals applications.
https://consumergoods.com/continuous-improvement

Colgate-Palmolive invests in supply chain to cut costs
30-Mar-2006

Personal care and consumer goods giant Colgate-Palmolive has upgraded its procurement system for materials and services in a move that is estimated will save the company an estimated $30m by 2008. They are partnering with IBM to manage their purchase and accounts payable operations.
https://www.cosmeticsdesign.com/Article/2006/03/30/Colgate-Palmolive-invests-in-supply-chain-to-cut-costs

Updated on 10 September 2019, 21 May 2019

Operations and Supply Chain Management - MBA Programmes and Curricula



What is Operations and Supply Chain Management?


Read Operations, Processes and Supply Chains  - Krajewski et al. - 12th Edition - Chapter Summaries

Norwegian Business School, 


Master of Science in Business
MAJOR IN LOGISTICS, OPERATIONS, AND SUPPLY CHAIN MANAGEMENT

YEAR 1

AUTUMN
Mathematics
Microeconomics
Applied Business Ethics
Operations 1
Supply Chain Management

SPRING
Research Methodology for Logistics, Operations and Supply Chain Management
Data Analytics with Programming
Operations 2
Distribution and Logistics Service Providers
Purchasing and Supply Management

YEAR 2

AUTUMN
Elective / Internship / Exchange
Elective / Internship / Exchange
Elective / Internship / Exchange
Elective / Internship / Exchange
Master Thesis

SPRING
Current Issues in Logistics, Operations and SCM (6 ECTS)
Master Thesis (24 ECTS)

https://www.bi.edu/programmes-and-individual-courses/master-programmes/business/major-in-logistics-operations-and-supply-chain-management/


The University of Liverpool Management School


 is one of an elite group of institutions worldwide to be AACSB-Accredited.

Operations and Supply Chain Management MSc

Programme duration: Full-time: 12 months   Part-time: 24 months
Programme start: September 2020
Entry requirements: You will need a 2:1 Honours degree or international equivalent in Management, Engineering, Science or a related discipline. Non-graduates with very extensive professional experience and/or other prior qualifications may also be considered.

https://www.liverpool.ac.uk/study/postgraduate-taught/taught/operations-and-supply-chain-management-msc/overview/

Aalborg University, Denmark

OPERATIONS AND SUPPLY CHAIN MANAGEMENT, MASTER
https://www.en.aau.dk/education/master/operations-supply-chain-management


Kettering University Online
2019 Kettering University
1700 University Ave, Flint, MI 48504

Master of Science Lean Manufacturing
Master of Science Operations Management
Master of Science Supply Chain Management Online
https://online.kettering.edu/news/2018/04/24/operations-management-and-supply-chain-management-understanding-nuances

University at Buffalo School of Management

203 Alfiero Center
Buffalo, NY 14260-4010

Operations and Supply Chain Management Concentration

Operations are the heart of every organization.
Lead activities that transform resources into value for customers worldwide.
http://mgt.buffalo.edu/degree-programs/master-of-business-mba/program/concentrations/operations-supply-chains-management.html


Rutgers Business School, Newark

https://www.business.rutgers.edu/supply-chain-analytics

Forecasting - Important Points - Summary - Krajewski - 12th Edition



Managing Demand

  • Explain how managers can change demand patterns.
Key Decisions on Making Forecasts
  • Describe the two key decisions on making forecasts.
Forecast Error
  • Calculate the five basic measures of forecast errors.
Judgment Methods
  • Compare and contrast the four approaches to judgmental forecasting.
Causal Methods: Linear Regression
  • Use regression to make forecasts with one or more independent variables.
Time-Series Methods 
  • Make forecasts using the five most common statistical approaches for time-series analysis.
Forecasting as a Process 
  • Describe the six steps in a typical forecasting process.



8 FORECASTING

Kimberly-Clark Mini Case

Accurate forecasting is crucial to maintaining the proper amount of material flow  in the supply chain and supply the quantity demanded by customers in any period.

Balancing supply and demand begins with making accurate forecasts of finished goods demand, and then planning supplies of  materials and components to assemble them across the supply chain.

Forecasts are required  for both managing processes and managing supply chains. At the supply chain
level, a firm needs forecasts to coordinate with its customers and suppliers and enter into contracts. At the process level, output forecasts are needed to design the capacities of various processes throughout the organization,  identifying and dealing with  bottlenecks and for planning the material flow quantities.

Managing Demand
Demand Patterns
Demand Management Options

It is important to understand that the timing and sizing of customer demand can often be modified by the managerial and marketing actions of the firm.

Forecasting demand requires uncovering the underlying patterns from available information.  There are five basic patterns of most demand time series:

1. Horizontal. The fluctuation of data around a constant mean.
2. Trend. The systematic increase (positive) or decrease (negative) in the mean of the series over time.
3. Seasonal. A repeatable pattern of increases or decreases in demand over each year, depending on the time of day, week, month, or season.
4. Cyclical. The less predictable gradual increase in demand for number of years followed by a  decrease in demand for number of years  over longer periods of time .
5. Random. The unforecastable variation in demand.

Various options are available in managing demand, including complementary products (product portfolio), promotional pricing (to increase demand during slack periods), prescheduled appointments, reservations, revenue management (like airlines offering steep discount for early booking), backlogs, backorders, and stockouts. The manager may select one or more of them

Key Decisions on Making Forecasts
Deciding What to Forecast
Choosing the Type of Forecasting Technique

(1) What to forecast (Level of Aggregation & Units of Measurement) , and
(2) What type of forecasting technique to select for different items.
Available forecasting methods:

  • Judgment methods based on the opinions of managers, expert opinions, consumer surveys, and salesforce estimates.  
  • Quantitative methods include causal methods, time-series analysis, and trend projection with regression. Causal methods use historical data on independent variables, such as promotional campaigns, economic conditions, and competitors’ actions, to predict demand. 
  • Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and recognizes trends and seasonal patterns.  
  • Trend projection with regression is a hybrid between a time-series technique and the causal method.


Forecast Error
Cumulative Sum of Forecast Errors
Dispersion of Forecast Errors
Mean Absolute Percent Error
Computer Support

Forecast error for a given period t is simply the difference between the forecast and
actual demand.

Et = Dt - Ft
where
Et = forecast error for period t
Dt = actual demand for period t
Ft = forecast for period t

For a given number of periods, cumulative sum can be calculated and also its variance and standard deviation.

The mean absolute percent error (MAPE) relates the forecast error to the level of demand and is useful for putting forecast performance in the proper perspective:

Computer support, such as from OM Explorer or POM for Windows, makes error calculations easy when evaluating how well forecasting models fit with past data. Errors are measured across past data, often called the history file in practice.


Judgment Methods

Opinions of managers, expert opinions, consumer surveys (market research), and salesforce estimates

Causal Methods: Linear Regression
In linear regression, one variable, called a dependent variable, is related to one or more independent variables by a linear equation. Even nonlinear relations also can be estimated by machine learning algorithms now.

Time-Series Methods
Naïve Forecast
Horizontal Patterns: Estimating the Average
Trend Patterns: Using Regression
Seasonal Patterns: Using Seasonal Factors
Criteria for Selecting Time-Series Methods
Insights into Effective Demand Forecasting
Big Data
Managerial Practice 8.1 Big Data and Health Care

Rather than using independent variables for the forecast as regression models do, time-series methods  use historical information regarding only the dependent variable and find the following and through them develop forecast for future periods.

1. Horizontal. The fluctuation of data around a constant mean.
2. Trend. The systematic increase (positive) or decrease (negative) in the mean of the series over time.
3. Seasonal. A repeatable pattern of increases or decreases in demand over each year, depending on the time of day, week, month, or season.
4. Cyclical. The less predictable gradual increase in demand for number of years followed by a  decrease in demand for number of years  over longer periods of time .


Forecasting as a Process 
A Typical Forecasting Process
Using Multiple Forecasting Methods
Adding Collaboration to the Process
Forecasting as a Nested Process



Many inputs to the forecasting process are informational, beginning with the history file on past demand. The history file is kept up-to-date with the actual demands. Clarifying notes and adjustments are made to the database to explain unusual demand behavior, such as the impact of special promotions.

Outputs of the process are forecasts for multiple time periods into the future. Typically, they are on
a monthly basis and are projected out from six months to two years.

The forecast process itself, typically done on a monthly basis, consists of structured steps. These
steps often are undertaken or facilitated by someone who might be called a demand manager, forecast analyst, or demand/supply planner. However, many other people are typically involved before the plan for the month is authorized.

Step 1. The cycle begins at the start of a new month as the actual demand of the previous month is available. The information is updated in the history file and forecast accuracy is reviewed.  Forecast error is determined for the month.
Step 2. Prepare initial forecasts using some forecasting software package or manual method.  Adjust the parameters of the software to find models that fit the past demand well and yet reflect the demand
manager’s judgment on irregular events and information about future sales gathered from judgment forecasts.
Step 3. Hold consensus meetings with the stakeholders, such as marketing, sales, supply chain planners, and finance. Invite business unit and field sales personnel to give further inputs. Use the Internet based communication channels to get collaborative information from key customers and suppliers. The goal is to arrive at consensus forecasts that are acceptable  to all of the important players.
Step 4. Revise the forecasts using judgment, considering the inputs from the consensus meetings and collaborative sources.
Step 5. Present the forecasts to the operating committee for review and to reach a final set of  forecasts. It is important to have a set of forecasts that everybody agrees upon and will work to support.
Step 6. Finalize the forecasts based on the decisions of the operating committee and communicate them.  Supply chain planners are usually the biggest users.

Forecasting is also is process and should be continually reviewed for improvements. A better process will foster better relationships between departments such as marketing, sales, and operations. It will also produce better forecasts.




Learning Goals in Review

Video Case Forecasting and Supply Chain Management at Deckers Outdoor Corporation
Case Yankee Fork and Hoe Company
Experiential Learning 8.1 Forecasting a Vital Energy Statistic

Index to Summaries of all Chapters of Krajewski's Book

Operations Management - Krajewski - 12th Edition - Chapter Summaries - Important Points


September 7, 2019

Resource Planning - Important Points - Summary - Krajewski - 12th Edition


Material Requirements Planning - Dependent Demand


  • Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.
Master Production Scheduling
  • Describe a master production schedule (MPS) and compute available-to-promise quantities.
MRP Explosion
  • Apply the logic of an MRP explosion to identify production and purchase orders needed for dependent demand items.
Enterprise Resource Planning
  • Explain how enterprise resource planning (ERP) systems can foster better resource planning.
Resource Planning for Service Providers
  • Apply resource planning principles to the provision of services and distribution inventories



11 RESOURCE PLANNING

Philips

Material Requirements Planning
Dependent Demand

Understanding material and enterprise resource planning begins with the concept of dependent demand.

Demand for a final product, such as a car, is called independent demand because
it is influenced only by market conditions. In contrast, the demand for steering mechanism  going into the car “depends” on the production planned for cars. Similarly, there are many other
items that go into a car. Each of these items has a dependent demand because the quantity required varies with the production plans for number of cars to be produced in various periods.

Master Production Scheduling
Developing a Master Production Schedule
Available-to-Promise Quantities
Freezing the MPS
Reconciling the MPS with Sales and Operations Plans

The first input into a material requirements plan is the master production schedule (MPS), which details how many end items will be produced within specified periods of time. It breaks the sales and operations plan into specific end product assembly or manufacturing quantity in each planning period (planning bucket - a week or a day - JIT systems will be using a day).

MPS complies with the following rules

1. The sums of the quantities in the MPS must equal those in the sales and operations plan. This consistency between the plans is desirable to get the profit plan done in finalizing  the sales and operations plan.
2. The production quantities must be allocated efficiently over time. Productivity and efficiency considerations have to be factored in.  The planner must select lot sizes for each product SKU, taking
into consideration economic factors such as production setup costs and inventory carrying costs.
3. Capacity limitations and bottlenecks, such as machine or labor capacity, storage space, or working
capital, may determine the timing and size of MPS quantities. The planner must  recognize the constraints and set the timing and size of the production quantities to get optimal output from constrained resources which are in a way bottlenecks.

The process of developing an MPS includes (1) calculating the projected on-hand inventory and
(2) determining the timing and size of the production quantities of specific products to meet the sales plan.

MRP Explosion
Bill of Materials
Inventory Record
Planning Factors
Outputs from MRP
MRP and the Environment
MRP, Core Processes, and Supply Chain Linkages

Conversion MPS into resources requirements and requirement of components and raw materials needs to be done. It is termed MRP explosion. The inputs required include the bills of materials and the information contained in inventory records, which in conjunction with the planning factors come together within the MRP logic to create the MRP explosion. The outputs of this explosion process become component and material requirements plans.

A bill of materials (BOM) is a record of all the components of an item (final assembly), the parent–component relationships (Assembly - subassembly  component), and the usage quantities derived from engineering and process designs.

Inventory records are an important input to MRP, and up-to-date records of inventory at each stage are required for accurate MRP based plans.

The gross requirements are the total demand derived from all parent production plans. They also include demand  for replacement parts i.e. spare parts.


Scheduled Receipts:   Scheduled receipts (pending or  open orders) are orders that have
been placed but not yet completed. For a purchased item, the scheduled receipt could be in one of several stages: being processed by a supplier, being transported to the purchaser, or being inspected by the purchaser’s receiving department.

Projected On-Hand Inventory The projected on-hand inventory is an estimate of the amount of
inventory available each week after gross requirements have been satisfied.

Planned Receipts Plans for  new orders will create the item of planned receipts.

Planned Order Releases A planned order release indicates when an order for a specified
quantity of an item is to be issued.

Planning Factors
The planning factors in a MRP inventory record provide useful information in firming up the components and material requirement plan. These factors can be changed and operations can be fine-tuned. Important of these factors are  planning lead time, lot-sizing rules, and safety stock.

Planning Lead Time Planning lead time is an estimate of the time between placing an order for an
item and receiving the item in inventory.

Lot-Sizing Rules: Lot sizing rules are specified to create orders for a batch.

Safety Stock

Outputs from MRP: MRP systems provide many plans, schedules,  reports and notices to help
planners control dependent demand inventories,

Material Requirements
Action Notices
Resource Requirements Reports
Performance Reports

Companies can modify their MRP systems to help them track the wastes and plan for their disposal from environment management perspective.

MRP, Core Processes, and Supply Chain Linkages
The MRP system interacts with all  four core processes of an organization that link activities within and across firms in a supply chain either through its inputs or its outputs. It all begins with customer orders, which consist of orders for end items as well as replacement parts. MRP and resource planning typically reside inside the order fulfillment process.


Enterprise Resource Planning
How ERP Systems Are Designed
Managerial Practice 11.1 ERP Implementation at Valle del Lili Foundation

An enterprise process is a company-wide process that cuts across functional areas, business units,
geographic regions, product lines, suppliers, and customers. Enterprise resource planning (ERP)
systems are large, integrated information systems that support many enterprise processes and data
storage needs. By integrating the firm’s functional areas, ERP systems allow an organization to view its operations as a whole rather than having to try to put together the different information pieces produced by its various functions and divisions.

ERP revolves around a single comprehensive database that can be made available across the
entire organization (or enterprise).  Having a single database for all of the firm’s information makes it
much easier for managers to know the requirements and plans all  company’s products at all locations and at all times and take managerial actions as appropriate.

Resource Planning for Service Providers
Dependent Demand for Services
Bill of Resources

Dependent demand exists in service organizations also. For example in airline organizations, whenever a  flight is scheduled, certain supporting goods are needed (beverages, snacks, and fuel), labor (pilots, flight attendants, and airport services), and equipment (a plane and airport gate). The number of flights and passengers the airline forecasts based on its seat bookings at the time of planning  will  determine the amount of these resources needed. So, the airline can translate its master schedule of flights into resource requirements.

A bill of resources (BOR), which is a record of a service firm’s parent–component relationships and all of the materials, equipment time, staff, and other resources associated with them, including usage quantities can be created and used in MRP explosion.

Learning Goals in Review
Case Flashy Flashers, Inc.


Index to Summaries of all Chapters of Krajewski's Book

Operations Management - Krajewski - 12th Edition - Chapter Summaries - Important Points

Negotiation - Theory, Techniques and Skills - Subject Update



Allison Wood Brooks - HBA Faculty - Google Scholar Citations
https://behavioralscientist.org/author/alison-wood-brooks/



HBR's 10 Must Reads on Negotiation (with bonus article "15 Rules for Negotiating a Job Offer" by Deepak Malhotra)
Harvard Business Review, Daniel Kahneman, Deepak Malhotra, Erin Meyer, Max H. Bazerman
Harvard Business Press, 30-Apr-2019 - Business & Economics - 208 pages

Learn to be a better negotiator--and achieve the outcomes you want.

If you read nothing else on how to negotiate successfully, read these 10 articles. We've combed through hundreds of Harvard Business Review articles and selected the most important ones to help you avoid common mistakes, find hidden opportunities, and win the best deals possible.

This book will inspire you to:

Control the negotiation before you enter the room
Persuade others to do what you want--for their own reasons
Manage emotions on both sides of the table
Understand the rules of negotiating across cultures
Set the stage for a healthy relationship long after the ink has dried
Identify what you can live with and when to walk away


This collection of articles includes:
"Six Habits of Merely Effective Negotiators" by James K. Sebenius;
"Control the Negotiation Before It Begins" by Deepak Malhotra;
"Emotion and the Art of Negotiation" by Alison Wood Brooks;
"Breakthrough Bargaining" by Deborah M. Kolb and Judith Williams;
"15 Rules for Negotiating a Job Offer" by Deepak Malhotra;
"Getting to Si, Ja, Oui, Hai, and Da" by Erin Meyer;
"Negotiating Without a Net: A Conversation with the NYPD's Dominick J. Misino" by Diane L. Coutu;
"Deal Making 2.0: A Guide to Complex Negotiations" by David A. Lax and James K. Sebenius; "How to Make the Other Side Play Fair" by Max H. Bazerman and Daniel Kahneman;
"Getting Past Yes: Negotiating as if Implementation Mattered" by Danny Ertel;
"When to Walk Away from a Deal" by Geoffrey Cullinan, Jean-Marc Le Roux, and Rolf-Magnus Weddigen.
https://books.google.co.in/books?id=NP16DwAAQBAJ


Harvard Business Review December 2015 issue is a special issue on negotiation



Emotion and the Art of Negotiation by Alison Wood Brooks is an interesting article.
https://hbr.org/2015/12/emotion-and-the-art-of-negotiation

You have to express the right emotions at the right times during negotiations.
Just as you prepare your tactical and strategic moves before a negotiation, you should invest effort in preparing your emotional approach. It will be time well spent.

HBR Video discussion wth Alison Brooks
https://hbr.org/video/4650021133001/controlling-your-emotions-during-a-negotiation



The Bad Habits of Good Negotiators

06/04/2013,  Updated Aug 04, 2013
Adam Grant 

Wharton professor and author of GIVE AND TAKE and ORIGINALS
http://www.huffingtonpost.com/adam-grant/the-bad-habits-of-good-ne_b_3382873.html


Negotiation Advantage: Make the First Move

http://executiveeducation.wharton.upenn.edu/~/media/wee/wharton%20at%20work/nano%20tools%20pdfs/1209%20negotiating%20advantage.pdf

https://www.themuse.com/advice/3-counterintuitive-negotiation-tactics-that-really-work



Updated  8 September 2019, 4 December 2016, 8 December 2015

Using Operations to Create Value - Important Points - Summary - Krajewski - 12th Edition


Role of Operations in an Organization  -  Historical Evolution and Perspectives

  • Describe the role of operations in an organization and its historical evolution over time.
A Process View 
  • Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers.
A Process View 
  • Describe the supply chain view of operations in terms of linkages between core and support processes.
Operations Strategy 
  • Define an operations strategy and its linkage to corporate strategy and market analysis.
Competitive Priorities and Capabilities 
  • Identify nine competitive priorities used in operations strategy, and explain how a consistent pattern of decisions can develop organizational capabilities.
Addressing the Trends and Challenges in Operations Management
  • Identify the latest trends in operations management, and understand how given these trends, firms can address the challenges facing operations and supply chain managers in a firm



Chapter 1 USING OPERATIONS TO CREATE VALUE

Disney Brief Description

Role of Operations in an Organization

Operations management refers to the systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external customers.

A process is any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers. Processes have operations as subunits. An operation is a group of resources performing all or part of a processes. Processes linked together form a supply chain, which is the interrelated series of processes within a firm and across different firms that combine through supply contracts to produce a service or product to the satisfaction of customers.  A firm can have multiple supply chains due to variety of products or services provided. Similarly a firm can be part of several supply chains when it is supplying components to different firms. Supply chain management is concerned with the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand.  All firms have processes and supply chains. Sound planning and design of these processes, operation along with internal and external coordination within its supply chain are required to create wealth and value for a firm’s diverse stakeholders. The value created by operations and supply chain function can be estimated by transfer pricing based on market prices for marketing and finance serves.

Broadly speaking, operations and supply chain management underlie all departments and functions in a business. Operations is  one of the key functions within an organization is part of the circular relationship with the three mainline functions of any business, namely, (1) operations, (2) marketing, and (3) finance.

Operations Management - Historical Evolution and Perspectives


The history of modern operations and supply chain management is rich and over two hundred years
old, even though its practice has been around in one form or another for centuries. The engineering developments that gave machines that made mass production possible is part of operations technology development history.

As part of management ideas evolution, Adam Smith and Charles Babbage (early part of the nineteenth century)  get the credit for the concept of division of labor.

American Society of Mechanical Engineers (ASME) focused on economy of production and management of production (1881) and this led to development of productivity management and industrial engineering. Frederick Taylor advocated study and evaluation of engineering elements in production processes and systems to improve productivity by reducing time taken to complete operations and to reduce cost. He also developed time study of human effort at element level to analyze the method of each element and improve it. Frank Gilbreth developed motion study procedure to examine human motions even at micro level and reduce their time. Scientific management (1911) is the name under which Taylor's contribution became popular. Industrial engineering became the second branch to develop in mechanical engineering and is now an independent engineering branch applicable in all engineering branches providing productivity management support.

Three other landmark events from the twentieth century define the history of operations and sup ply chain management. First is the invention of the assembly line for the Model T car by Henry Ford in 
1909. The era of mass production was born, where complex products like automobiles could be manufactured in large numbers at affordable prices through repetitive manufacturing. Second, Alfred Sloan in the 1930s introduced the idea of  planning for product variety for achieving product proliferation and variety to satisfy the varying needs of segments of customers in the market along with achieving required profit, with the newly founded General Motors Corporation offering “a car for every purse and purpose.” Finally, with the publication of the Toyota Production System book in Japanese in 1978, Taiichi Ohno laid the groundwork for removing wasteful inventory from the processes. The efforts of Ohno, a production manager and Shigeo Shingo (an industrial engineer) gave birth to Toyota Production System (TPS) which became the role model World Class Manufacturing System.

The recent history of operations and supply chains over the past three decades has been development management practices steeped in technological advances. The 1980s were characterized by wide availability of computer-aided design (CAD), computer-aided manufacturing (CAM), and automation. Machine component's role increased in operations.  Information technology applications
started playing an increasingly important role in the 1990s and started connecting the firm with its extended enterprise through Enterprise Resource Planning Systems and outsourced technology hosting for supply chain solutions. Supply chain visibility increased and development of supply chain management became possible and its use has  increased. Service organizations like Federal Express, United Parcel Service (UPS), and Walmart also became sophisticated users of information technology in operations, logistics, and management of supply chains.

In the new millennium, IoT and resulting Industry 4.0 movement is driving change in operations and SCM. Also there is an increased focus on sustainability of environment, firm and society.

A Process View
How Processes Work
Nested Processes
Service and Manufacturing Processes


Krajewski et al. remark that  a process view of the firm provides a much more relevant picture of the way firms actually work. Any process has inputs and outputs. Inputs can include a combination of human resources (workers and managers), capital (equipment and facilities), purchased materials and services, land, information and energy. Managers need all types of information to manage processes most effectively.

Processes can be broken down into subprocesses, which in turn can be broken down further into still
more subprocesses. This concept of a process within a process is termed a nested process. Operations constitute a process in process charts.

A Supply Chain View
Core Processes
Support Processes
Supply Chain Processes

Supply chain consists of a firm's facilities, supplier firms and channel partners on the distribution side and customers. Supply chain processes are business processes that have external customers or suppliers.

In this text  four core processes are discussed.

1. Supplier Relationship Process. Employees in the supplier relationship process select the suppliers
of services, materials, and information and facilitate the timely and efficient flow of these items into
the firm. Negotiating fair prices, scheduling on-time deliveries, and gaining ideas and
insights from critical suppliers etc, help to create value.
2. New Service/Product Development Process. Employees in the new service/product development
process design and develop new services or products.  Customer requirements are to be gathered for product development.
3. Order Fulfillment Process. The order fulfillment process includes the activities required to produce and deliver the service or product to the external customer.
4. Customer Relationship Process: Employees involved in the customer relationship process identify, attract, and build relationships with external customers and facilitate the placement of orders by customers. Marketing and sales have an important role in  this process.

These supply chain processes have to designed, documented and analyzed for improvement, examined for quality improvement and control, and assessed in terms of capacity and bottlenecks.

Operations Strategy
Corporate Strategy
Market Analysis

Operations strategy specifies the means by which operations implements corporate strategy and helps
to build a customer-driven firm. It links long-term and short-term operations decisions to corporate
strategy.  Strategy  is at the heart of managing processes and supply chains. A firm’s internal processes  need to be organized to  be effective in a competitive environment. Operations strategy is the linchpin that brings these processes together to form supply chains that extend beyond the walls of the firm, encompassing suppliers as well as customers. Since customers constantly desire change, the firm’s operations strategy must be responsive.

Competitive Priorities and Capabilities
Managerial Practice 1.1 Zara
Order Winners and Qualifiers
Using Competitive Priorities: An Airline Example
Identifying Gaps between Competitive Priorities and Capabilities

Competitive priorities are the critical operational dimensions a process or supply chain must
possess to satisfy internal or external customers, both now and in the future. Competitive priorities
are planned for processes and the supply chain created from them.

Nine competitive priorities

1. Low cost operations
2. Top quality
3. Consistent quality
4. Delivery speed
5. On-time delivery
6. Development speed
7. Customization
8. Variety
9. Volume flexibility

Addressing the Trends and Challenges in Operations Management

Productivity Improvement

Productivity is a basic measure of performance for economies, industries, firms, and processes.
Improving productivity is a major trend in operations management because all firms face pressures to improve their processes and supply chains so as to compete with their domestic and foreign competitors.

Global Competition

Most businesses realize that, to prosper, they must view customers, suppliers, facility locations, and competitors in global terms. Global supply chains are to be used.


Ethical, Workforce Diversity, and Environmental Issues

Society and people demand more  ethical decisions and practices from business firms now and are penalizing more vigorously digressions.

The Internet of Things
Developing Skills for Your Career
Adding Value with Process Innovation

Process innovation can make a big difference to competitive advantage of organizations. IoT driven innovations are increasing in operations processes and even management practices are changing because of IoT based data collection and analysis using machine learning.


Learning Goals in Review
Video Case Using Operations to Create Value at Crayola
Case Chad’s Creative Concepts


Index to Summaries of all Chapters of Krajewski's Book

Operations Management - Krajewski - 12th Edition - Chapter Summaries - Important Points



SUPPLEMENT A Decision Making
Break-Even Analysis
Evaluating Services or Products
Evaluating Processes
Preference Matrix
Decision Theory
Decision Making under Certainty
Decision Making under Uncertainty
Decision Making under Risk
Decision Trees
Learning Goals in Review