Operations Management, 10th Edition
Nigel Slack, Alistair Brandon-Jones and Nicola Burgess
Contents
Guide to ‘Operations in practice’ examples
and case studies xi
Preface xvi
To the instructor.¦.¦.¦ xix
To the student.¦.¦.¦ xx
Ten steps to getting a better grade in
operations management xxi
About the authors xxii
Authors’ acknowledgements xxiv
PART ONE
DIRECTING THE OPERATION 2
1 Operations management 4
Introduction 4
1.1 What is operations management? 5
1.2 Why is operations management important in all types of organisations? 7
1.3 What is the input–transformation–output process? 11
1.4 What is the process hierarchy? 19
1.5 How do operations (and processes) differ? 22
1.6 What do operations managers do? 26
Summary answers to key questions 31
Case study: Kaston-Trenton Service (KTS) 32
Problems and applications 34
Selected further reading 36
Notes on chapter 37
2 Operations performance 38
Introduction 38
2.1 Why is operations performance vital in any organisation? 39
2.2 How is operations performance judged at a societal level? 40
2.3 How is operations performance judged at a strategic level? 43
2.4 How is operations performance judged at an operational level? 45
2.5 How can operations performance be measured? 59
2.6 How do operations performance objectives trade off against each other? 61
Summary answers to key questions 64
Case study: IKEA looks to the future 66
Problems and applications 69
Selected further reading 70
Notes on chapter 71
3 Operations strategy 72
Introduction 72
3.1 What is strategy and what is operations strategy? 73
3.2 How does operations strategy align with business strategy (top-down)? 76
3.3 How does operations strategy align with market requirements (outside-in)? 79
3.4 How does operations strategy align with operational experience (bottom-up)? 85
3.5 How does operations strategy align with operations resources (inside-out)? 87
3.6 How are the four perspectives of operations strategy reconciled? 91
3.7 How can the process of operations strategy be organised? 97
Summary answers to key questions 101
Case study: McDonald’s: half a century of growth 103
Problems and applications 106
Selected further reading 108
Notes on chapter 108
4 Managing product and service
innovation 110
Introduction 110
4.1 What is product and service innovation? 111
4.2 What is the strategic role of product and service innovation? 114
4.3 What are the stages of product and service innovation? 118
4.4 How should product and service innovation be resourced? 127
Summary answers to key questions 135
Case study: Widescale studios and the Fierybryde development 137
Problems and applications 141
Selected further reading 142
Notes on chapter 143
5 The structure and scope of supply 144
Introduction 144
5.1 What is the structure and scope of supply? 145
5.2 How should the supply network be
configured? 149
5.3 How much capacity should operations have? 155
5.4 Where should operations be located? 159
5.5 How vertically integrated should an operation’s supply network be? 161
5.6 What activities should be in-house and what should be outsourced? 164
Summary answers to key questions 169
Case study: Aarens Electronic 171
Problems and applications 173
Selected further reading 174
Notes on chapter 175
PART TWO
DESIGNING THE OPERATION 176
6 Process design 178
Introduction 178
6.1 What is process design? 179
6.2 What should be the objectives of process
design? 181
6.3 How do volume and variety affect process
design? 185
6.4 How are processes designed in detail? 193
Summary answers to key questions 209
Case study: The Action Response Applications
Processing Unit (ARAPU) 211
Problems and applications 213
Selected further reading 215
Notes on chapter 216
7 The layout and look of facilities 217
Introduction 217
7.1 How can the layout and look of facilities
influence performance? 218
7.2 What are the basic layout types and how
do they affect performance? 220
7.3 How does the appearance of an operation’s
facilities affect its performance? 230
7.4 What information and analysis is needed to
design the layout and look of facilities? 232
Summary answers to key questions 240
Case study: Misenwings SA 242
Problems and applications 245
Selected further reading 248
Notes on chapter 248
8 Process technology 250
Introduction 250
8.1 What is process technology and why is it
getting more important? 251
8.2 How can one understand the potential of
new process technology? 256
8.3 How can new process technologies be
evaluated? 261
8.4 How are new process technologies
developed and implemented? 268
Summary answers to key questions 274
Case study: Logaltel Logistics 275
Problems and applications 277
Selected further reading 279
Notes on chapter 279
9 People in operations 281
Introduction 281
9.1 Why are people so important in operations
management? 282
9.2 How can the operations function be
organised? 285
9.3 How do we go about designing jobs? 288
9.4 How are work times allocated? 302
Summary answers to key questions 305
Case study: Grace faces (three) problems 306
Problems and applications 308
Selected further reading 310
Notes on chapter 311
Supplement to Chapter 9:
Work study 312
Introduction 312
Method study in job design 312
Work measurement in job design 314
PART THREE
DELIVER 320
10 Planning and control 322
Introduction 322
10.1 What is planning and control? 323
10.2 How do supply and demand affect planning
and control? 326
10.3 What is ‘loading’? 332
10.4 What is ‘sequencing’? 333
10.5 What is ‘scheduling’? 339
10.6 What is ‘monitoring and control’? 344
Summary answers to key questions 349
Case study: Audall Auto Servicing 351
Problems and applications 354
Selected further reading 357
Notes on chapter 357
11 Capacity management 358
Introduction 358
11.1 What is capacity management? 359
11.2 How is demand measured? 361
11.3 How is capacity measured? 369
11.4 How is the demand side managed? 375
11.5 How is the supply side managed? 376
11.6 How can operations understand the
consequences of their capacity
management decisions? 381
Summary answers to key questions 388
Case study: FreshLunch 390
Problems and applications 395
Selected further reading 397
Notes on chapter 398
Supplement to Chapter 11:
Analytical queuing models 399
Introduction 399
Notation 399
Variability 400
Incorporating Little’s law 401
Types of queuing system 401
12 Supply chain management 406
Introduction 406
12.1 What is supply chain management? 407
12.2 How should supply chains compete? 409
12.3 How should relationships in supply
chains be managed? 414
12.4 How is the supply side managed? 415
12.5 How is the demand side managed? 426
12.6 What are the dynamics of supply chains? 429
Summary answers to key questions 434
Case study: Big or small? EDF’s
sourcing dilemma 436
Problems and applications 439
Selected further reading 440
Notes on chapter 441
13 Inventory management 442
Introduction 442
13.1 What is inventory? 443
13.2 Why should there be any inventory? 445
13.3 How much should be ordered? The volume
decision 450
13.4 When should an order be placed? The
timing decision 461
13.5 How can inventory be controlled? 466
Summary answers to key questions 473
Case study: Supplies4medics.com 475
Problems and applications 477
Selected further reading 478
Notes on chapter 479
14 Planning and control systems 480
Introduction 480
14.1 What are planning and control systems? 481
14.2 What is enterprise resource planning,
and how did it develop into the most
common planning and control system? 485
14.3 How should planning and control systems
be implemented? 491
Summary answers to key questions 495
Case study: Psycho Sports Ltd 497
Problems and applications 499
Selected further reading 501
Notes on chapter 501
Supplement to Chapter 14:
Materials requirements planning
(MRP) 503
Introduction 503
Master production schedule 503
The bill of materials (BOM) 504
Inventory records 506
The MRP netting process 506
MRP capacity checks 509
Summary of supplement 509
PART FOUR
DEVELOPMENT 510
15 Operations improvement 512
Introduction 512
15.1 Why is improvement so important in
operations management? 513
15.2 What are the key elements of operations
improvement? 517
15.3 What are the broad approaches to
improvement? 523
15.4 What techniques can be used for
improvement? 532
15.5 How can the improvement process be
managed? 537
Summary answers to key questions 544
Case study: Sales slump at Splendid Soup Co. 546
Problems and applications 548
Selected further reading 550
Notes on chapter 551
16 Lean operations 552
Introduction 552
16.1 What is lean? 553
16.2 How does lean consider flow? 555
16.3 How does lean consider (and reduce)
waste? 560
16.4 How does lean consider improvement? 568
16.5 How does lean consider the role of
people? 573
16.6 How does lean apply throughout the
supply network? 576
Summary answers to key questions 577
Case study: St Bridget’s Hospital: seven years
of lean 579
Problems and applications 582
Selected further reading 583
Notes on chapter 584
17 Quality management 585
Introduction 585
17.1 What is quality and why is it so important? 586
17.2 What steps lead towards conformance to
specification? 594
17.3 What is total quality management (TQM)? 600
Summary answers to key questions 610
Case study: Rapposcience Labs 612
Problems and applications 615
Selected further reading 618
Notes on chapter 618
Supplement to Chapter 17:
Statistical process control (SPC) 620
Introduction 620
Control charts 620
Variation in process quality 621
Control charts for attributes 626
Control chart for variables 627
Process control, learning and knowledge 631
Summary of supplement 632
Selected further reading 632
18 Managing risk and recovery 633
Introduction 633
18.1 What is risk management? 634
18.2 How can operations assess the potential causes and consequences of failure? 636
18.3 How can failures be prevented? 647
18.4 How can operations mitigate the effects of failure? 652
18.5 How can operations recover from the effects of failure? 653
Summary answers to key questions 656
Case study: Slagelse Industrial Services (SIS) 658
Problems and applications 659
Selected further reading 662
Notes on chapter 662
19 Project management 663
Introduction 663
19.1 What are projects? 664
19.2 What is project management? 668
19.3 How is the project environment understood? 671
19.4 How are projects defined? 676
19.5 How are projects planned? 678
19.6 How are projects controlled and learned from? 687
Summary answers to key questions 692
Case study: Kloud BV and Sakura Bank K.K. 694
Problems and applications 696
Selected further reading 698
Notes on chapter 699
Glossary 700
Index 715
Credits 735