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Essentials of Operations Management

Essentials of Operations Management

Nigel Slack | Alistair Brandon-Jones

(2018)

Additional Information

Book Details

Abstract

Based on the market-leading Operations Management text, this is the ideal book for those wanting a more concise introduction to the subject, focusing on essential core topics, without compromising on the authoritative, clear and highly practical approach that has become the trademark of the authors.  

Revised and updated to reflect the ever-changing world of operations management, the book is rooted in real-life practice with a wealth of examples and case studies from different sectors and industries around the world.


Table of Contents

Section Title Page Action Price
Front Cover Front Cover
Half Title Page i
Title Page iii
Copyright Page iv
Brief Contents v
Contents vii
Guide to ‘Operations in practice’ examples xv
Preface xix
To the instructor xxii
To the student xxiii
Ten steps to getting a better grade in operations management xxiv
About the authors xxvi
Acknowledgements xxviii
Publisher’s acknowledgements xxx
Operations management and performance 2
Introduction 3
Key questions 3
What is operations management? 4
Operations can produce both services and products 6
Operations management in not-for-profit organizations 9
What is the input–transformation–output process? 10
Inputs to the process 11
Why is operations management important to an organization’s performance? 13
Performance at three levels 14
What is the processes hierarchy? 20
Operations management is relevant to all parts of the business 21
Business processes 22
How do operations and processes differ? 23
The volume dimension 24
The variety dimension 24
The variation dimension 24
The visibility dimension 25
The implications of the four Vs of operations processes 26
What do operations managers do? 27
The model of operations management 31
Summary answers to key questions 32
Problems and applications 34
Want to know more? 36
Operations strategy 38
Introduction 39
Key questions 39
What is strategy and what is operations strategy? 40
Operations strategy 42
Hayes and Wheelwright’s four stages of operations contribution 42
Perspectives on operations strategy 43
What is the difference between a ‘top-down’ and ‘bottom-up’ view of operations strategy? 44
‘Top-down’ strategies 44
‘Bottom-up’ strategies 45
What is the difference between a market requirements and operations resources view of operations strategy? 47
Market requirements-based strategies 47
The operations resources perspective 52
How can operations strategy form the basis for operations improvement? 58
The ‘line of fit’ between market requirements and operations capabilities 58
What is the ‘process’ of operations strategy? 60
Operation strategy formulation 60
Operations strategy implementation 62
Operations strategy monitoring 62
Operations strategy control 63
Summary answers to key questions 64
Problems and applications 66
Want to know more? 68
Product and service innovation 70
Introduction 71
Key questions 71
What is product and service innovation? 72
Innovation, creativity and design 72
Incremental or radical innovation 73
What is the strategic role of product and service innovation? 75
The process of design 76
Design process objectives 76
What are the stages of product and service innovation? 81
Concept generation 82
Concept screening 83
Preliminary design 85
Reducing design complexity 86
Design evaluation and improvement 87
Prototyping and final design 89
What are the benefits of interactive product and service innovation? 90
Simultaneous development 90
Early conflict resolution 91
Project-based organizational structures 92
Summary answers to key questions 95
Problems and applications 97
Want to know more? 98
Process design – resources 100
Introduction 101
Key questions 101
Why is choosing the right resources important? 102
Process design and product/service design are interrelated 102
Do processes match volume–variety requirements? 103
The ‘product–process’ matrix 104
Process types 105
Moving off the natural diagonal 108
Are process layouts appropriate? 110
Layout should reflect volume and variety 110
Layout selection 113
Advantages and disadvantages of layout types 114
Layout and ‘servicescapes’ 114
Are process technologies appropriate? 115
Process technology should reflect volume and variety 116
Are job designs appropriate? 119
Job design should reflect volume and variety 119
To what degree should jobs be defined? 121
How should job commitment be encouraged? 123
Summary answers to key questions 125
Problems and applications 127
Want to know more? 128
Process design – analysis 130
Introduction 131
Key questions 131
Why is it important to get the details of process design correct? 132
What should be the objectives of process design? 134
‘Micro’ objectives 134
Standardization of processes 136
Environmentally sensitive process design 137
How are processes currently designed? 138
Process mapping 139
Are process tasks and capacity configured appropriately? 143
Throughput time, cycle time and work in progress 143
Workflow 147
Process bottlenecks 148
Arranging the stages 149
Is process variability recognized? 152
Summary answers to key questions 157
Problems and applications 159
Want to know more? 161
Supply chain management 162
Introduction 163
Key questions 163
What is supply chain management? 164
Internal and external supply chains 167
Tangible and intangible supply chains 167
How do supply chains compete? 167
Performance objectives for supply networks 169
Lean versus agile supply networks 171
How should you manage supply chain relationships? 173
Contracting and relationships 173
Which type of relationship? 176
How should the supply side be managed? 177
Sourcing strategy 177
Global sourcing 180
Supplier selection 180
Managing on-going supply 182
Improving supplier capabilities 184
How should the demand side be managed? 184
Logistics services 185
Customer relationship management (CRM) 186
Customer development 187
What are the dynamics of supply chains? 188
Controlling supply chain dynamics 190
Summary answers to key questions 192
Problems and applications 194
Want to know more? 196
Capacity management 198
Introduction 199
Key questions 199
What is capacity management? 200
Long-, medium- and short-term capacity management 201
What are the main long-term capacity decisions? 201
Economies of scale and the ‘optimum’ capacity level 201
The timing of capacity change 203
What are the main medium-term capacity decisions? 205
The objectives of capacity management 206
Understanding medium-term demand 206
Understanding medium-term capacity 207
Both demand and capacity can vary 210
Predictable and unpredictable variation 211
What are the ways of coping with mismatches between medium-term demand and capacity? 213
Level capacity plan 213
Chase demand plan 214
Demand management plan 216
Yield management 218
How can operations understand the consequences of their medium-term capacity decisions? 218
Considering capacity decisions using cumulative representations 219
Considering capacity decisions using queuing principles 220
Considering capacity decisions over time 225
Summary answers to key questions 227
Problems and applications 229
Want to know more? 232
Inventory management 234
Introduction 235
Key questions 235
What is inventory? 236
All processes, operations and supply networks have inventories 237
Why do you need inventory? 239
So why have inventory? 240
Reducing physical inventory 243
Day-to-day inventory decisions 244
How much should you order? (The volume decision) 245
The economic order quantity (EOQ) formula 247
Gradual replacement – the economic batch quantity (EBQ) model 251
Criticisms of EOQ models 252
When should you order? (The timing decision) 254
Continuous and periodic review 258
How can you control inventory? 260
Using the ABC system to prioritize inventories 261
Measuring inventory 263
Inventory information systems 263
Common problems with inventory systems 267
Summary answers to key questions 269
Problems and applications 271
Want to know more? 272
Resource planning and control 274
Introduction 275
Key questions 275
What is resource planning and control? 276
What is the difference between planning and control? 278
Long-, medium- and short-term resource planning and control 278
How do supply and demand affect planning and control? 280
Uncertainty in supply and demand 280
Dependent and independent demand 280
Responding to demand 281
P:D ratios 284
What are the activities of planning and control? 285
Loading 285
Sequencing 287
Scheduling 291
Monitoring and controlling the operation 297
Drum, buffer, rope 298
What is enterprise resource planning (ERP)? 299
How did ERP develop? 301
Summary answers to key questions 303
Problems and applications 304
Want to know more? 306
Lean operations 308
Introduction 309
Key questions 309
What is lean? 310
Three perspectives of lean 312
How lean operations consider flow 312
How lean operations consider inventory 314
How lean operations consider capacity utilization 315
How lean operations consider the role of people 315
How lean operations consider improvement 318
How does lean eliminate waste? 318
Causes of waste – muda, mura, muri 319
Types of waste 319
Looking for waste (and kaizen opportunities) – the ‘gemba walk’ 321
Eliminating waste through streamlined flow 321
Eliminating waste through matching demand and supply exactly 326
Eliminating waste through flexible processes 328
Eliminating waste through minimizing variability 331
Keeping things simple – the 5S method 334
How does lean apply throughout the supply network? 334
Summary answers to key questions 337
Problems and applications 338
Want to know more? 340
Operations improvement 342
Introduction 343
Key questions 343
Why is improvement so important in operations management? 344
Radical, or breakthrough, change 346
Continuous, or incremental, improvement 347
Exploitation or exploration 347
The structure of improvement ideas 348
Why is failure management also improvement? 349
Assessing the potential causes and consequences of failure 349
How can failure be prevented? 350
How can operations mitigate the effects of failure? 351
How can operations recover from the effects of failure? 351
What are the key elements of operations improvement? 352
Improvement cycles 352
A process perspective 353
End-to-end processes 353
Evidence-based problem solving 353
Customer-centricity 354
Systems and procedures 354
Reduce process variation 355
Synchronized flow 356
Emphasize education/training 356
Perfection is the goal 356
Waste identification 356
Include everybody 356
Develop internal customer–supplier relationships 357
What are the broad approaches to improvement? 357
Total quality management as an improvement approach 357
Lean as an improvement approach 358
Business process re-engineering (BPR) 358
Six Sigma 361
Differences and similarities 362
What techniques can be used for improvement? 364
Scatter diagrams 364
Process maps (flow charts) 365
Cause–effect diagrams 366
Pareto diagrams 367
Why–why analysis 368
Benchmarking 370
Summary answers to key questions 371
Problems and applications 373
Want to know more? 375
Quality management 376
Introduction 377
Key questions 377
What is quality and why is it so important? 378
The operation’s view of quality 378
Customers’ view of quality 379
Reconciling the operation’s and the customer’s views of quality 380
How can quality problems be diagnosed? 383
What steps lead towards conformance to specification? 384
Step 1 – define the quality characteristics 385
Step 2 – decide how to measure each characteristic 386
Step 3 – set quality standards 386
Step 4 – control quality against those standards 387
Steps 5 and 6 – find and correct causes of poor quality and continue to make improvements 393
What is total quality management (TQM)? 394
TQM as an extension of previous practice 394
The principles of TQM 395
TQM means meeting the needs and expectations of customers 396
TQM means covering all parts of the organization 396
TQM means including every person in the organization 397
TQM means all costs of quality are considered 398
TQM means developing the systems and procedures that support quality and improvement 401
Summary answers to key questions 404
Problems and applications 406
Want to know more? 407
Project management 408
Introduction 409
Key questions 409
What is project management? 410
What do projects have in common? 410
What is project management exactly? 412
Not all projects are the same 412
The stages of project management 415
What is a project’s ‘environment’? 416
The role of stakeholders in projects 416
Project definition 418
How can projects be planned? 420
Identify activities – the work breakdown structure 420
Estimate times and resources 421
Identify relationships and dependencies 422
Identify schedule constraints 426
Fix the schedule 427
Network analysis 428
Program evaluation and review technique (PERT) 429
How can projects be controlled? 432
Project monitoring 432
Assessing project performance 433
Intervening to change the project 433
Managing matrix tensions 434
Summary answers to key questions 435
Problems and applications 437
Want to know more? 439
Notes 440
Index 444
Back Cover Back Cover