Operations Management, Eighth edition
Contents:
Guide to ‘operations in practice’,
examples, short cases and case studies xii
Preface xvi
To the Instructor. . . xviii
To the Student. . . xix
Ten steps to getting a better grade
in operations management xx
About the authors xxi
Acknowledgements xxii
Publisher’s acknowledgements xxiv
Part One
DirECTing ThE OPEraTiOn 3
Chapter 1:
Operations management 4
Introduction 4
What is operations management? 5
Why is operations management important
in all types of organization? 8
What is the input–transformation–output
process? 13
What is the process hierarchy? 19
How do operations and processes differ? 22
What do operations managers do? 27
Summary answers to key questions 31
Case study : Design house partnerships at
Concept Design Services 33
Problems and applications 36
Selected further reading 36
Chapter 2:
Operations performance 38
Introduction 38
Why is operations performance vital in any organization? 39
How is operations performance judged at a societal level? 41
How is operations performance judged at a strategic level? 46
How is operations performance judged at an operational level? 48
How can operations performance be measured? 63
How do performance objectives trade off against each other? 66
Summary answers to key questions 68
Case study : Operations objectives at the
Penang Mutiara 70
Problems and applications 72
Selected further reading 73
Chapter 3:
Operations strategy 74
Introduction 74
What is strategy and what is operations strategy? 76
What is the difference between a ‘top-down’ and ‘bottom-up’ view of operations strategy? 80
What is the difference between a ‘market
requirements’ and an ‘operations
resources’ view of operations strategy? 84
How can operations strategy form the basis
for operations improvement? 92
How can an operations strategy be put together?
The process of operations strategy 98
Summary answers to key questions 102
Case study : McDonald’s: half a century
of growth 104
Problems and applications 107
Selected further reading 108
Chapter 4:
Product and service innovation 109
Introduction 109
What is product and service innovation? 110
What is the strategic role of product
and service innovation? 114
What are the stages of product and
service innovation? 119
What are the benefits of interactive
product and service innovation? 130
Summary answers to key questions 134
Case study: Developing ‘Savory Rosti-crisps’
at Dreddo Dan’s 136
Problems and applications 138
Selected further reading 139
Chapter 5:
The structure and scope
of operations 140
Introduction 140
What do we mean by the ‘structure’
and ‘scope’ of operations’ supply
networks? 141
What configuration should a supply
network have? 145
How much capacity should operations
plan to have? 149
Where should operations be located? 154
How vertically integrated should an
operation’s network be? 156
How do operations decide what to do
in-house and what to outsource? 161
Summary answers to key questions 164
Case study: Aarens Electronic 166
Problems and applications 168
Selected further reading 169
Supplement to Chapter 5:
Forecasting 170
Introduction 170
Forecasting – knowing the options 170
In essence forecasting is simple 171
Approaches to forecasting 172
Selected further reading 178
Part Two
Designing the Operation 181
Chapter 6:
Process design 182
Introduction 182
What is process design? 183
What should be the objectives of
process design? 185
How do volume and variety affect
process design? 189
How are processes designed in detail? 195
Summary answers to key questions 211
Case study: The Action Response Applications
Processing Unit (ARAPU) 212
Problems and applications 214
Selected further reading 214
Chapter 7:
Layout and flow 216
Introduction 216
What is layout and how can it influence
performance? 217
What are the basic layout types used
in operations? 220
How does the appearance of an
operation affect its performance? 231
How should each basic layout type
be designed in detail? 234
Summary answers to key questions 240
Case study: The event hub 241
Problems and applications 244
Selected further reading 244
Chapter 8:
Process technology 246
Introduction 246
What is process technology? 247
What do operations managers need to
know about process technology? 251
How are process technologies evaluated? 258
How are process technologies
implemented? 264
Summary answers to key questions 271
Case study: Rochem Ltd 272
Problems and applications 274
Selected further reading 274
Chapter 9:
People in operations 276
Introduction 276
Why are people so important in operations
management? 277
How do operations managers contribute
to human resource strategy? 279
How can the operations function be
organized? 281
How do we go about designing jobs? 286
How are work times allocated? 300
Summary answers to key questions 301
Case study: Grace faces (three) problems 302
Problems and applications 304
Selected further reading 305
Supplement to Chapter 9:
Work study 306
Introduction 306
Method study in job design 306
Work measurement in job design 309
Part Three
Deliver 315
Chapter 10:
Planning and control 317
Introduction 317
What is planning and control? 318
What is the difference between planning
and control? 319
How do supply and demand affect planning
and control? 321
What are the activities of planning and control? 327
Summary answers to key questions 345
Case study: subText Studios Singapore 346
Problems and applications 348
Selected further reading 349
Chapter 11:
Capacity management 350
Introduction 350
What is capacity management? 351
How are demand and capacity
measured? 354
How should the operation’s base capacity
be set? 364
What are the ways of coping with
mismatches between demand
and capacity? 366
How can operations understand the
consequences of their capacity
decisions? 373
Summary answers to key questions 382
Case study: Blackberry Hill Farm 384
Problems and applications 388
Selected further reading 389
Supplement to Chapter 11:
Analytical queuing models 391
Introduction 391
Notation 391
Variability 391
Incorporating Little’s law 393
Types of queuing system 393
Chapter 12:
Supply chain management 398
Introduction 398
What is supply chain management? 399
How should supply chains compete? 402
How should relationships in supply chains
be managed? 407
How is the supply side managed? 412
How is the demand side managed? 419
What are the dynamics of supply chains? 423
Summary answers to key questions 426
Case study: Supplying fast fashion 428
Problems and applications 430
Selected further reading 431
Chapter 13:
Inventory management 432
Introduction 432
What is inventory? 434
Why should there be any inventory? 437
How much to order? The volume decision 442
When to place an order? The timing decision 452
How can inventory be controlled? 458
Summary answers to key questions 463
Case study: supplies4medics.com 465
Problems and applications 466
Selected further reading 467
Chapter 14:
Planning and control systems 468
Introduction 468
What are planning and control systems? 469
What is enterprise resource planning and
how did it develop into the most common
planning and control system? 475
How should planning and control systems
be implemented? 483
Summary answers to key questions 486
Case study: Psycho Sports Ltd 487
Problems and applications 489
Selected further reading 490
Supplement to Chapter 14:
Materials requirements
planning (MRP) 491
Introduction 491
Master production schedule 491
The bill of materials (BOM) 492
Inventory records 494
The MRP netting process 494
MRP capacity checks 497
Summary 497
Chapter 15:
Lean operations 498
Introduction 498
What is lean? 499
How does lean eliminate waste? 506
How does lean apply throughout the
supply network? 519
How does lean compare with other
approaches? 521
Summary answers to key questions 524
Case study: Saint Bridget’s Hospital 525
Problems and applications 527
Selected further reading 528
Part Four
Developme nt_531
Chapter 16:
Operations improvement 532
Introduction 532
Why is improvement so important in
operations management? 533
What are the key elements of operations
improvement? 540
What are the broad approaches to
improvement? 545
What techniques can be used for
improvement? 554
How can the improvement process
be managed? 559
Summary answers to key questions 566
Case study: Reinventing Singapore’s
libraries 568
Problems and applications 569
Selected further reading 570
Chapter 17:
Quality management 572
Introduction 572
What is quality and why is it
so important? 573
What steps lead towards conformance
to specification? 580
What is total quality management (TQM)? 587
Summary answers to key questions 597
Case study: Turnaround at the
Preston plant 599
Problems and applications 601
Selected further reading 602
Supplement to Chapter 17:
Statistical process control 603
Introduction 603
Control charts 603
Variation in process quality 604
Control charts for attributes 608
Control chart for variables 610
Summary of supplement 615
Selected further reading 615
Chapter 18:
Managing risk and recovery 616
Introduction 616
What is risk management? 617
How can operations assess the
potential causes and consequences
of failure? 619
How can failures be prevented? 632
How can operations mitigate the effects of failure? 637
How can operations recover from the
effects of failure? 639
Summary answers to key questions 642
Case study: Slagelse Industrial Services (SIS) 643
Problems and applications 645
Selected further reading 645
Chapter 19:
Project management 646
Introduction 646
What is project management? 647
How are projects planned? 653
How are projects controlled? 669
Summary answers to key questions 674
Case study: United Photonics Malaysia Sdn Bhd 675
Problems and applications 679
Selected further reading 680
Notes on chapters 681
Useful websites 689
Glossary 691
Index 704