OPERATIONS MANAGEMENT Nigel Slack Stuart Chambers Robert Johnston Financial Times Prentice Hall is an imprint of PEARSON • London • New York • Bosl Contents Guide to 'operations in practice', examples, short cases and case studies Making the most of this book and MyOMLab Preface To the Instructor To the Student Ten steps to getting a better grade in operations management About the authors Acknowledgements xi xiv xviii XX xxi xxii xxiii xxiv Part One INTRODUCTION 1 Chapter 1 Operations management 2 Introduction What is operations management? Operations management is important in all types of organization The input-transformation-output process The process hierarchy Operations processes have different characteristics The activities of operations management Summary answers to key questions Case study: Design house partnerships at Concept Design Services Problems and applications Selected further reading Useful web sites Chapter 2 Operations performance Introduction Operations performance is vital for any organization The quality objective The speed objective The dependability objective The flexibility objective The cost objective Trade-offs between performance objectives Summary answers to key questions Case study: Operations objectives at the Penang Mutiara Problems and applications Selected further reading Useful web sites 58 59 59 Chapter 3 Operations strategy 60 Introduction What is strategy and what is operations strategy? The 'top-down' and 'bottom-up' perspectives The market requirements and operations resources perspectives 60 62 65 The process of operations strategy Summary answers to key questions Case study: Long Ridge Gliding Club Problems and applications Selected further reading Useful web sites 75 79 80 81 82 82 Part Two DESIGN 85 Chapter 4 Process design 86 68 2 4 6 11 15 19 23 25 27 30 30 31 32 Introduction What is process design? What effects should process design have? Process types - the volume-variety effect on process design Detailed process design Summary answers to key questions Case study: The Central Evaluation Unit Problems and applications Selected further reading Useful web sites 86 87 88 91 96 108 109 110 111 111 Chapter 5 The design of products and services 112 32 34 40 42 44 46 48 54 56 57 Introduction Why is good design so important? The benefits of interactive design Summary answers to key questions Case study: Chatsworth - the adventure playground decision Problems and applications Selected further reading Useful web sites 112 114 129 134 135 136 137 137 Contents Chapter 6 Supply network design 138 Introduction The supply network perspective Configuring the supply network The location of capacity Long-term capacity management Summary answers to key questions " Case study: Disneyland Resort Paris (abridged) Problems and applications • Selected further reading Useful web sites 138 140 142 146 155 161 162 166 167 167 Supplement to Chapter 6 Forecasting 168 Introduction Forecasting - knowing the options In essence forecasting is simple Approaches to forecasting Selected further reading 168 168 169 170 176 Chapter 7 Layout and flow Introduction What is layout? The basic layout types What type of layout should an operation choose? Detailed design of the layout Summary answers to key questions Case study: Weldon Hand Tools Problems and applications Selected further reading Useful web sites 177 177 179 180 / 187 189 202 203 204 205 205 Chapter 8 Process technology 206 Introduction What is process technology? Understanding process technologies Evaluating process technologies Implementing process technologies Summary answers to key questions Case study: Rochem Ltd Problems and applications Selected further reading Useful web sites 206 208 209 221 227 229 230 232. 232 232 Chapter 9 People, jobs and organization 233 Introduction People in operations Human resource strategy 233 235 236 Organization design Job design Summary answers to key questions Case study: Service Adhesives tries again Problems and applications Selected further reading Useful web sites 238 241 255 256 257 258 258 Supplement to Chapter 9 Work study 259 Introduction Method study in job design Work measurement in job design 259 259 262 Part Three PLANNING AND CONTROL 267 Chapter 10 The nature of planning and control 268 Introduction What is planning and control? Supply and demand affect planning and control Planning and control activities Summary answers to key questions Case study: Air traffic control - a world-class juggling act Problems and applications Selected further reading Useful web sites Chapter 11 Capacity planning and control Introduction What is capacity management? Measuring demand and capacity The alternative capacity plans Choosing a capacity planning and control approach Capacity planning as a queuing problem Summary answers to key questions Case study: Holly Farm Problems and applications Selected further reading Useful web sites 268 270 272 277 293 294 295 296 296 297 297 299 301 309 317 322 327 328 331 332 332 Supplement to Chapter 11 Analytical queuing models 333 Introduction Notation Variability Incorporating Little's law Types of queuing system 333 333 334 335 336 Contents Chapter 12 Inventory planning and control 340 Introduction What is inventory? Why is inventory necessary? Some disadvantages of holding inventory The volume decision - how much to order The timing decision - when to place an order Inventory analysis and control systems Summary answers to key questions Case study: Trans-European Plastics Problems and applications Selected further reading Useful web sites 340 342 342 345 346 357 362 368 369 371 371 372 Introduction What is lean synchronization? Eliminate waste Lean synchronization applied throughout the supply network Lean synchronization and other approaches Summary answers to key questions Case study: Boys and Boden (B&B) Problems and applications Selected further reading Useful web sites Chapter 16 Project planning and control Chapter 13 Supply chain planning and control 373 Introduction What is supply chain management? The activities of supply chain management Types of relationships in supply chains Supply chain behaviour Supply chain improvement Summary answers to key questions Case study: Supplying fast fashion Problems and applications Selected further reading Useful web sites 373 375 377 386 391 394 400 401 404 405 405 Chapter 1 4 Enterprise resource planning (ERP) 406 Introduction What is ERP? How did ERP develop? Implementation of ERP systems Summary answers to key questions Case study: Psycho Sports Ltd Problems and applications Selected further reading Useful web sites 406 408 408 415 417 418 420 421 421 Supplement t o Chapter 14 Materials requirements planning (MRP) 422 Introduction Master production schedule The bill of materials (BOM) Inventory records The MRP netting process MRP capacity checks Summary 422 422 424 425 425 428 428 - Chapter 15 Lean synchronization 429 429 431 435 447 449 452 453 455 456 456 457 Introduction 457 What is a project? 459 Successful project management 461 The project planning and control process 462 Network planning . 475 Summary answers to key questions 487 Case study: United Photonics Malaysia Sdn Bhd 488 Problems and applications 493 Selected further reading 494 Useful web sites 494 Chapter 17 Quality management 495 Introduction What is quality and why is it so important? Diagnosing quality problems Conformance to specification Total quality management (TQM) Summary answers to key questions Case study: Turnround at the Preston plant Problems and applications Selected further reading Useful web sites 495 497 501 502 508 515 516 518 519 519 Supplement t o Chapter 17 Statistical process control (SPC) 520 Introduction Control charts Variation in process quality Control charts for attributes Control chart for variables Process control, learning and knowledge Acceptance sampling Sampling plans Summary Selected further reading Useful web sites 520 520 521 527 528 532 533 533 535 536 536 Contents Part Four IMPROVEMENT 539 Chapter 18 Operations improvement 540 Introduction Why improvement is so important Elements of improvement Approaches to improvement Improvement techniques Summary answers to key questions Case study: Geneva Construction and Risk Problems and applications Selected further reading Useful web sites 540 542 542 549 558 564 565 569 570 570 Chapter 19 Risk management Introduction What is risk management? Assess the potential causes of and risks from failure Preventing failure occurring Mitigating the effects of failure Recovering from the effects of failure. Summary answers to key questions Case study: The Chernobyl failure Problems and applications Selected further reading Useful web sites 571 571 573 / 573 586 592 593 596 597 599 600 600 Chapter 20 Organizing for improvement 601 Introduction Why the improvement effort needs organizing Linking improvements to strategy Information for improvement Improvement priorities - what to start on? Improvement culture Implementing improvement Summary answers to key questions Case study: Re-inventing Singapore's libraries Problems and applications Selected further reading ' Useful web sites 601 603 603 606 612 617 620 624 626 628 628 629 Part Five CORPORATE SOCIAL RESPONSIBILITY 631 Chapter 21 Operations and corporate social responsibility (CSR) 632 Introduction What is corporate social responsibility? How does the wider view of corporate social responsibility influence operations management? How can operations managers analyse CSR issues? Summary answers to key questions Case study: CSR as it is presented Problems and applications Selected further reading Useful web sites 632 633 Notes on chapters Glossary Index 652 658 670 637 646 648 649 650 651 651