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