Welcome to

OPERATIONS MANAGEMENT
Operations Management is important, exciting, challenging, and everywhere your
look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text:

Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your course work.

And in particular, look out for the references to MyOMLab in the text, and log on to www.myomlab.com* where you can

check and reinforce your understanding of key concepts using self-assessment questions, audio summaries, animations video clips and more; practice your problem-solving with feedback, guided solutions and a limitless supply of questions!

We want Operations Management to give you what you need: a comprehensive view of the subject, an ambition to put that into practice, and – of course – success in your studies. So, read on and good luck! Nigel Slack Stuart Chambers Robert Johnston
* P.S. In order to log in to MyOMLab, you’ll need to register with the access code included with all new copies of the book.

Further reading in Operations Management
Take your study and interest in operations management further with these leading textbooks written by the same team of expert authors.

OPERATIONS MANAGEMENT Sixth Edition Nigel Slack Stuart Chambers Robert Johnston .

) 1. Alan Harrison. recording or otherwise. and Robert Johnston 2001. Stuart Chambers.co.uk First published under the Pitman Publishing imprint 1995 Second edition (Pitman Publishing) 1998 Third edition 2001 Fourth edition 2004 Fifth edition 2007 Sixth edition 2010 © Nigel Slack.pearsoned. Designs and Patents Act 1988. I. cm. Chambers. 2007. Robert Johnston 1995. Nigel. 2004. electronic. Stuart Chambers. Stuart Chambers. Production management. nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Operations management / Nigel Slack.5–dc22 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 Typeset in 10/12pt Minion by 35 Printed and bound by Rotolito Lombarda. without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd. mechanical. 1953– III. or transmitted in any form or by any means. TS155. All rights reserved.Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www. 6–10 Kirby Street. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks. and Robert Johnston to be identified as authors of this work have been asserted by them in accordance with the Copyright. Christine Harland. 1998 © Nigel Slack. Saffron House. – 6th ed. ISBN: 978-0-273-73046-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Slack. All trademarks used herein are the property of their respective owners. p. photocopying. Robert. Robert Johnston. II. ISBN 978-0-273-73046-0 (pbk.S562 2010 658. stored in a retrieval system. Stuart Chambers. 2010 The rights of Nigel Slack. No part of this publication may be reproduced. Italy The publisher’s policy is to use paper manufactured from sustainable forests. Johnston. London EC1N 8TS. Stuart. . Title.

examples.Brief contents Guide to ‘operations in practice’. jobs and organization 85 86 112 138 177 206 233 Part Five CORPORATE SOCIAL RESPONSIBILITY 21 Operations and corporate social responsibility (CSR) Notes on chapters Glossary Index 631 632 652 658 670 Supplement to Chapter 6 – Forecasting 168 Supplement to Chapter 9 – Work study 259 . 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 Part Three PLANNING AND CONTROL xi xiv xviii xx xxi xxii xxiii xxiv 10 The nature of planning and control 11 Capacity planning and control Supplement to Chapter 11 – Analytical queuing models 12 Inventory planning and control 13 Supply chain planning and control 14 Enterprise resource planning (ERP) Supplement to Chapter 14 – Materials requirements planning (MRP) 15 Lean synchronization 16 Project planning and control 17 Quality management Supplement to Chapter 17 – Statistical process control (SPC) 267 268 297 333 340 373 406 422 429 457 495 520 Part One INTRODUCTION 1 Operations management 2 Operations performance 3 Operations strategy 1 2 32 60 Part Four IMPROVEMENT 18 Operations improvement 19 Risk management 20 Organizing for improvement 539 540 571 601 Part Two DESIGN 4 Process design 5 The design of products and services 6 Supply network design 7 Layout and flow 8 Process technology 9 People.

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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 Problems and applications Selected further reading Useful web sites 58 59 59 xi xiv xviii xx xxi xxii xxiii xxiv Chapter 3 Operations strategy Introduction What is strategy and what is operations strategy? The ‘top-down’ and ‘bottom-up’ perspectives The market requirements and operations resources perspectives 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 60 60 62 65 68 75 79 80 81 82 82 Part One INTRODUCTION Chapter 1 Operations management 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 1 2 2 4 6 11 15 19 23 25 27 30 30 31 Part Two DESIGN Chapter 4 Process design 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 85 86 86 87 88 91 96 108 109 110 111 111 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 32 32 34 40 42 44 46 48 54 56 57 Chapter 5 The design of products and services 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 112 112 114 129 134 135 136 137 137 . examples.Contents Guide to ‘operations in practice’.

jobs and organization Introduction People in operations Human resource strategy 233 233 235 236 .viii Contents Chapter 6 Supply network design 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 138 138 140 142 146 155 161 162 166 167 167 168 168 168 169 170 176 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 Introduction Method study in job design Work measurement in job design 259 259 259 262 Supplement to Chapter 6 Forecasting Introduction Forecasting – knowing the options In essence forecasting is simple Approaches to forecasting Selected further reading Part Three PLANNING AND CONTROL Chapter 10 The nature of planning and control 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 267 268 268 270 272 277 293 294 295 296 296 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 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 297 297 299 301 309 317 322 327 328 331 332 332 Chapter 8 Process technology 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 206 206 208 209 221 227 229 230 232 232 232 Supplement to Chapter 11 Analytical queuing models Introduction Notation Variability Incorporating Little’s law Types of queuing system 333 333 333 334 335 336 Chapter 9 People.

Contents ix Chapter 12 Inventory planning and control 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 340 340 342 342 345 346 357 362 368 369 371 371 372 Chapter 15 Lean synchronization 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 429 429 431 435 447 449 452 453 455 456 456 Chapter 13 Supply chain planning and control 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 Chapter 16 Project planning and control 373 373 375 377 386 391 394 400 401 404 405 405 457 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 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 495 495 497 501 502 508 515 516 518 519 519 Chapter 14 Enterprise resource planning (ERP) 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 406 406 408 408 415 417 418 420 421 421 Supplement to Chapter 17 Statistical process control (SPC) 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 520 520 520 521 527 528 532 533 533 535 536 536 Supplement to Chapter 14 Materials requirements planning (MRP) Introduction Master production schedule The bill of materials (BOM) Inventory records The MRP netting process MRP capacity checks Summary 422 422 422 424 425 425 428 428 .

x Contents Part Four IMPROVEMENT Chapter 18 Operations improvement 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 539 Chapter 20 Organizing for improvement 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 601 601 603 603 606 612 617 620 624 626 628 628 629 540 540 542 542 549 558 564 565 569 570 570 Part Five CORPORATE SOCIAL RESPONSIBILITY 631 Chapter 21 Operations and corporate social responsibility (CSR) 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 Notes on chapters Glossary Index 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 571 571 573 573 586 592 593 596 597 599 600 600 632 632 633 637 646 648 649 650 651 651 652 658 670 .

87 90 107 109 113 116 120 122 125 135 Chapter 5 The design of products and services Chapter 6 Supply network design p. p. Smart car Heathrow The Central Evaluation Unit (European Union Directorate) Airbus A380 Dyson Square water melons Daniel Hersheson Art Attack! Chatsworth House Dell Hon Hai. 77 p. 3 8 9 14 21 21 27 33 41 43 44 47 49 51 57 Company/example IKEA Acme Whistles Oxfam Prêt A Manger Formule 1 Mwagusi Safari Lodge Concept Design Services A tale of two terminals Lower Hurst Farm Accident recovery Dabbawalas hit 99. p. 162 . 139 p. 61 p. p. 151 p. p. p. p. examples. p. p.Guide to ‘operations in practice’. p. p. p. 74 p. p. 68 p. 145 p. 147 p. p. Quanta and Compal Tata Nano Tesco High-tech subcontracting Disneyland Paris Region Global UK Global Europe/USA Europe Tanzania UK Dubai and UK UK General India Global Europe Taiwan/China Malaysia Global/Europe Asia Global Europe UK USA France UK Belgium Europe Global Japan UK UK UK Global Taiwan India Thailand India/China France Sector/activity Retail Manufacturing Charity Retail Hospitality Hospitality Design/manufacturing/ distribution Transport Agricultural Healthcare General service Media Retail Manufacturing Hospitality Manufacturing service/ transport Retail Retail/business services Military Sport Quick service Auto manufacturing Transport Non-governmental organization Aerospace Design/manufacturing Retail/Agriculture Hairdressing Media Tourism Computer manufacturing Computer manufacturing Manufacturing Retail Research and development Entertainment Company size Large Small Large Medium Large Small Medium Large Small Medium Large Large Large Large Medium Large Large Large Large Small Large Large Large Large Large Large Various Small Small Medium Large Large Large Large Medium/large Large Chapter 2 Operations performance Chapter 3 Operations strategy p. Penang Two operations strategies: Flextronics and Ryanair Giordano Amazon what exactly is your core competence? Sometimes any plan is better than no plan Long Ridge Gliding Club McDonalds Daimler-Chrysler. p. p. short cases and case studies Chapter Chapter 1 Operations management Location p. 149 p. p. p. 80 Chapter 4 Process design p. p. p. p. p.9999% dependability BBC Aldi Hon Hai Precision Industry Mutiara Beach Resort. p. p.

298 304 309 310 315 317 326 328 341 348 356 369 Chapter 12 Inventory planning and control Chapter 13 Supply chain planning and control p. p.L. p. p. jobs and organization p. 384 p. p. 234 p. p. p. p. p. 294 Chapter 11 Capacity planning and control p. p. 237 247 250 256 269 273 281 286 Chapter 10 The nature of planning and control p. short cases and case studies Chapter Chapter 7 Layout and flow Location p. p. 203 Chapter 8 Process technology p. 374 p. p. p. p. p. 379 p. p. p. 385 397 398 401 . p. p. Benetton and Zara Region Global UK Japan UK UK All All UK USA Netherlands Asia Sweden UK Global Global UK Europe Europe UK Global All All UK All Europe All UK Europe UK/Global All Netherlands UK UK Europe UK France Europe Global Global Europe Europe Japan Global Sector/activity Retail Healthcare Piano manufacturing Entertainment and manufacturing Manufacturing Airlines Security Restaurants Disaster recovery Agriculture Hairdressing Media Food processing Manufacturing and research e-services Restaurants Banking Manufacturing Service and repair Airline Healthcare Food processing Milk distribution Air travel Distribution Various Tourism Agriculture Food processing/media Design Tourism Agriculture/ entertainment Healthcare Beverages Distribution service Manufacturing Service and manufacturing Auto manufacturing Garment design/ retailing Logistics services Food services Retail Design/manufacturing/ distribution/retail Company size Large Medium Large Large Large Large Various Medium Large Medium Medium Large Medium Large Large Large Large Large Medium Large Large Large Large Medium Large Various Medium Large Large Large Medium Small Large Large Large Large Large Large Large Large Large Large Large p. p. p. p. Gore and Associates Google McDonalds Lloyds TSB Service Adhesives BMW dealership Air France Accident and Emergency Chicken salad sandwich (Part 1) Robert Wiseman Dairies Air traffic control Britvic Seasonal products and services British Airways London Eye Lettuce growing Seasonal products and services Greetings cards Madame Tussauds. p. p. 178 180 185 186 Company/example Tesco Surgery Yamaha Cadbury Weldon Hand Tools Airlines Robots Yo! Sushi IBM Farming QB House SVT (Sveriges Television) Rochem Ltd W.xii Guide to ‘operations in practice’. p. 292 p. p. p. p. p. Amsterdam Holly Farm UK National Blood Service Croft Port The Howard Smith Paper Group Trans-European Plastic Siemens Ford Motor Company Levi Straus & Co TDG Northern Foods Seven-Eleven Japan H&M. 207 210 211 213 218 220 224 230 Chapter 9 People. p. examples. p. p.

575 p. p. p. short cases and case studies Chapter Chapter 14 Enterprise Resource Planning Location p. 417 p. reality and intention CSR as it is presented Region Global Global All Global US All Global UK France UK Hong Kong Malaysia Global/UK USA UK Europe US Canada Canada Netherlands UK Europe Europe Global USA Global Global Ukraine Denmark Netherlands Global Singapore All Global Global Various Sector/activity Aerospace IT services Food processing IT services Waste management Manufacturing Auto manufacturing Healthcare Construction Heritage Charity Research and development Hospitality Hospitality Photography services Agriculture Healthcare IT services Manufacturing Brewery Beverage Process outsourcing Insurance Confectionary Airline Internet Facilities services Power generation Public service Brewery Various ? All Manufacturing Retail Various Company size Large Large Small Large Large Small Large Medium/large Large Various Small Medium Large Small Small Large Various Large Medium Large Large Large Large Large Large Various Large Large Large Large ?Large ? All Large Large Various xiii Chapter 18 Improvement Chapter 19 Risk management p. 440 p. examples. p. 642 p. p. p. 410 p. p. 458 465 47 488 496 499 500 505 507 512 516 541 548 556 565 Company/example Rolls Royce SAP Chicken salad sandwich (Part 2) SAP What a waste Psycho Sports Ltd Toyota Motor Company Hospitals The Millau Bridge The National Trust Access HK United Photonics Malaysia Sdn Bhd Four Seasons Hotel Tea and Sympathy Magic Moments Vitacress Surgical Statistics IBM Rendall Graphics Heineken International (Part I) Erdington Xchanging Geneva Construction and Risk (GCR) Cadburys Salmonella outbreak Not what you want to hear Viruses. 411 p. p. 577 p. p. 418 Chapter 15 Lean synchronization Chapter 16 Project planning and control Chapter 17 Quality management p. 649 . p. 635 p. threats and 30 years of spam Otis Elevators Chernobyl Taxing Quality Heineken International (Part II) Work-Out at GE Singapore Libraries Ecological footprints HP Recycling Program The Gap between perception. p. p.Guide to ‘operations in practice’. 602 620 622 626 p. 430 p. p. p. p. p. 597 Chapter 20 Organizing for improvement Chapter 21 Corporate social responsibility (CSR) p. 592 p. 638 p. 572 p. 414 p. p. p. 407 p.

dependability within operations increases operational reliability. employees. ➤ What does top management expect from the operations function? ■ Operations can contribute to the organization as a whole by: – reducing the costs – achieving customer satisfaction – reducing the risk of operational failure – reducing the amount of investment – providing the basis for future innovation.1 This chapter examines operations performance ■ Check and improve your understanding of this chapter using self assessment questions and a personalised study plan. suppliers. it is important to understand how we can measure its performance. By ‘changing what they do’. quality operations both reduce costs and increase dependability. Second. operations seek to influence the flexibility with which the company produces goods and services. Externally.myomlab. speed is an important aspect of customer service. dependability is an important aspect of customer service. On our general model of operations management the topics covered in this chapter are represented by the area marked on Figure 2. we look at various perspectives on. By ‘doing things fast’. represents the bulk of its assets.myomlab. and society in general. There are many individuals and groups doing the judging and there are many different aspects of performance on which the assessment is being made. we examine how performance objectives trade off against each other. and an eBook – all at www. And if we want to understand the strategic contribution of the operations function.Making the most of this book and MyOMLab Check your understanding Each chapter opens with a set of Key questions to identify major topics. ➤ Why is operations performance important in any organization? Key questions ➤ Why is operations performance important in any organization? ➤ How does the operations function incorporate all stakeholders’ objectives? ➤ What does top management expect from the operations function? ➤ What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them? ➤ How do operations performance objectives trade off against each other? Introduction Operations are judged by the way they perform. 56 Part One Introduction Chapter 2 Operations performance Summary answers to key questions Check and improve your understanding of this chapter using self assessment questions and a personalised study plan. ➤ What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them? ■ By ‘doing things right’. audio and video downloads. So this chapter starts by illustrating how operations performance can impact on the success of the whole organization. . They relate to the company’s responsibility to customers. Externally. Internally. in most businesses. quality is an important aspect of customer satisfaction or dissatisfaction. – produce a wide range or mix of products and services (mix flexibility). Finally. operations seek to influence the quality of the company’s goods and services.com.myomlab. You can check your understanding of each chapter by taking the Sample tests of self-assessment questions on MyOMLab at www.1. thus saving the time and money that would otherwise be taken up in solving reliability problems and also giving stability to the operation. but also because the operations function gives the ability to compete by providing the ability to respond to customers and by developing the capabilities that will keep it ahead of its competitors in the future. By ‘doing things on time’. ➤ How does the operations function incorporate all stakeholders objectives? ■ At a strategic level. ■ ■ Figure 2. and aspects of performance. performance objectives relate to the interests of the operation’s stakeholders. – produce products and services at different times (delivery flexibility). – produce different quantities or volumes of products and services (volume flexibility). audio and video downloads.com. speed both reduces inventories by decreasing internal throughput time and reduces risks by delaying the commitment of resources. The people doing the judging are called ‘stakeholders’ and the aspects of performance they are using are called ‘performance objectives’. Externally. Summary answers conclude the chapter. flexibility can: – produce new products and services (product/service flexibility). It is large and. operations seek to influence the speed with which goods and services are delivered. operations seek to influence the dependability of the delivery of goods and services.com. Internally. shareholders. Internally. ■ Operations management can either ‘make or break’ any business. Externally. and an eBook – all at www.

000 square metres. Do this by visiting the web site of a low-cost airline. 1 actual output effective capacity 2 A local government office issues hunting licences.myomlab. In total. and (b) how many temporary members of staff will be needed between days 100 and 150? A field service organization repairs and maintains printing equipment for a large number of customers. how much if you needed to fly next week. they have occurred because of the market and technical demands on the operation.com. Calculate the overall equipment efficiency (OEE) of the following facilities by investigating their use. These causes of reduction in capacity will not be the only losses in the operation. Problems and applications at the end of the chapter allow you to apply these techniques. If an untrained temporary member of staff can only process 10 licences per day. Design capacity is 200 × 60 × 24 × 7 = 2. Different products will have different coating requirements. demand is 25 per cent of demand during the peak period which lasts between day 100 and day 150. how many staff will be needed to fulfil demand? Look again at the principles which govern customers’ perceptions of the queuing experience. The last five categories are unplanned. consider the role of yield management.Making the most of this book and MyOMLab xv Practice makes perfect Worked examples show how quantitative and qualitative techniques can be used in operations management. The actual capacity which remains. In particular. It is estimated that platinum-service customers will require 50 per cent more time from the company’s field service engineers than the current service. which will take out further productive time. For the following operations. and untrained staff to 15 applications per day. and for a number of flights price the fare that is being charged by the airline from tomorrow onwards. The records for a week’s production show the following lost production time: 1 2 3 4 5 6 7 8 9 10 Product changeovers (set-ups) Regular preventative maintenance No work scheduled Quality sampling checks Shift change times Maintenance breakdown Quality failure investigation Coating material stockouts Labour shortages Waiting for paper rolls 20 hrs 16 hrs 8 hrs 8 hrs 7 hrs 18 hrs 20 hrs 8 hrs 6 hrs 6 hrs 3 4 5 During this week the actual output was only 582. how much if you needed to fly in 2 weeks. how you would go about it. Plot the results for different flights and debate the findings. Worked example Suppose the photographic paper manufacturer has a coating line with a design capacity of 200 square metres per minute. 7 days per week (168 hours per week) basis. Demand for these licences is relatively slow in the first part of the year but then increases after the middle of the year before slowing down again towards the end of the year. and the line is operated on a 24-hour day. and the ratio of output to effective capacity are called. Measured in hours of production. Design capacity = 168 hours per week Effective capacity = 168 − 59 = 109 hrs Actual output = 168 − 59 − 58 = 51 hrs Utilization = Efficiency = actual output 51 hrs = = 0. how much would it cost if you needed to fly tomorrow. how many temporary staff should the department recruit between days 100 and 150? In the example above. Technical scheduling difficulties might mean further lost time. The first five categories of lost production occur as a consequence of reasonably unavoidable. so the line will need to be stopped while it is changed over. if a new computer system is installed that allows experienced staff to increase their work rate to 20 applications per day. 306 Part Three Planning and control Chapter 11 Capacity planning and control 331 Effective capacity Utilization Efficiency run continuously at its maximum rate. 6 . if it is. absenteeism and other avoidable problems will all take their toll. Such factors as quality problems. platinum. planned occurrences and amount to a total of 59 hours. The ratio of the output actually achieved by an operation to its design capacity. losses and amount to 58 hours. and you can get more practice as well as guided solutions from the Study plan on MyOMLab at www.com. and avoidable. the utilization and the efficiency of the plant: Utilization = Efficiency = actual output design capacity Problems and applications These problems and applications will help to improve your analysis of operations. The operation’s marketing vice-president has decided that in future the company will offer 3 standards of service.016 million square metres per week. the department processes 10. After 150 demand reduces to about 12 per cent of the demand during the peak period.000 applications per year. In other words. (a) does the department still need 2 permanent staff. (a) A cinema (b) A doctor’s surgery (c) Waiting to board an aircraft. after such losses are accounted for. apply the principles to minimize the perceived negative effects of queuing.468(47%) effective capacity 109 hrs Consider how airlines cope with balancing capacity and demand. Maintenance will need to be performed on the line.myomlab. It offers one level of service to all its customers and employs 30 staff. Not all of these losses are the operations manager’s fault. The silver service is likely to require about 80 per cent of the time of the gold service. The current service is to be called ‘the gold service’. You can find more practice problems as well as worked examples and guided solutions on MyOMLab at www. This means that the actual output of the line will be even lower than the effective capacity. Between working days 0 and 100. respectively. The department works a 220-day year on a 5-days-a-week basis. If future demand is estimated to be 20 per cent platinum. machine breakdowns. etc.304(30%) design capacity 168 hrs actual output 51 hrs = = 0. The department has 2 permanent members of staff who are capable of processing 15 licence applications per day. is called the effective capacity of operation. 70 per cent gold and 10 per cent silver service. (a) A lecture theatre (b) A cinema (c) A coffee machine Discuss whether it is worth trying to increase the OEE of these facilities and. gold and silver.

’ The most successful collaboration was with Villessi. from initial order to final delivery. especially after Christmas. Originally founded in the 1960s. we can offer a distribution service which is tailored to their needs.myomlab. manufacturing and distributing products for some of the more prestigious design houses. and some cheap ‘homeware’ items such as buckets and dustpans. kitchen equipment and speciality retailers. warehouse and distribution resources. 298 Part Three Planning and control Chapter 1 Operations management 27 Operations in practice Britvic – delivering drinks to demand Britvic is amongst Europe’s leading soft-drink manufacturers. It is designed to operate 24 hours a day throughout the year. At the centre of its distribution network is a National Distribution Centre (NDC) located at Lutterworth. Finally. ‘Without the automation this plant simply couldn’t function. by outsourcing the NDC management to Wincanton. so flexibility and efficiency are the keys to success. distributes and sells over 1 billion litres of ready-to-drink soft drinks in around 400 different flavours. High levels of throughput and the ability to respond quickly to demand fluctuations depend on the use of integrated information technology linked to automated ‘High Bay’ handling technology.000-pallet ‘High Bay’ warehouse. Designed and built in collaboration with Wincanton. That equates to 1. and offer them a complete service of manufacturing and distribution. Given the lack of space in the High Bay. All information. The price realization of Concept products is many times higher than for the Focus range.500 cans a minute. UK.000 pallets one day. it can vary from 2. CEO. Furthermore. From being an inward-looking manufacturer. to 6. Now we are an integrated service provider. Every morning the shift manager receives orders for the day. a major player in a market consuming nearly ten billion litres a year. it has to ensure that 250. Loads are scanned at Britvic factories and fed into the ‘Business Planning and Control System’ that creates a schedule of receipts. even in mundane products such as paint. data are passed over to the Movement Control System that controls the retrieval of pallets from the High Bay. together with a national network of 12 depots. we have been designing.’ Source: Alamy/Adrian Sherratt customers (supermarkets). so it has to be a high-volume and high-speed business. a specialist supply chain solutions company. Not only is demand on the NDC seasonal in a general sense. we had over 3000 retail outlets signed up.350 pallets or nearly 4 million cans. However. it is not possible to simply stock up for the busy periods. The daily meetings also allow any problems to be addressed and dealt with before they become critical. sold under the ‘Focus’ brand name. Tango. Most of our new business comes from the partnerships we have formed with design houses. who had previously worked for a large retail chain of paint and wallpaper retailers.000 the next. Aqua Libra. Britvic bottles.’ Source: Wincanton The move to the design house partnerships ‘Over the last four years. Britvic produce enough cans of soft drinks to stretch three times around the world. the Italian designers. In effect.’ Human resource management is also key in managing capacity.000 outlets in the UK receive their orders on time. More significantly. The manufacturers and retailers who created and supported these products were dramatically more profitable than those who simply provided standard ranges. although further orders can be placed at any time during the day. In many ways we are now a “business-to-business” company rather than a “business-to-consumer” company. I felt that this must also apply to homeware. Concept Design Services (CDS)) CDS had become one of Europe’s most profitable homeware businesses. This information is then fed to the Warehouse Management System and when hauliers arrive at the NDC. You realize how much you need this system when it breaks down! The other day. shapes and sizes. Annually. Over the year Britvic distribute over 100 million cases. Robinsons. is held electronically. Within a year of launching our first new range of kitchen homeware under the “Concept” brand name. We soon developed an entirely new market and within two years “Concept” products were providing over 75 per cent of our revenue and 90 per cent of our profits. From the customer’s point of view the distribution arrangements appear to belong to the design house itself. the company had moved from making industrial mouldings. Most importantly is the use and development of technology both within the NDC and out in Britvic’s supply chain. Britvic’s service policy of responding whenever customers want them to deliver has a dramatic impact on the NDC and its capacity planning. the site is able to second employees from other Wincanton-owned sites when demand is high. We decided to develop a whole coordinated range of such items. supported by appropriate promotion and features in lifestyle magazines. with distribution organized on a giant scale. we have less than a million cases per week’ (Distribution Manager). provided with point-of-sale display facilities. You can see and hear more about how theory is applied in practice in the animations and video clips in the Multimedia library in MyOMLab at www. multiple errors in the system meant that in the space of 6 hours we went from being ahead to having 50 loads waiting to be processed. ‘Experience in the decorative products industry had taught me the importance of fashion and product development. Instinctively. with short-term changes caused by both weather and marketing campaigns. In fact they are based exclusively on our own call centre. to making very high-quality (expensive) stylish homewares with a high ‘design value’. we design products jointly with specialist design houses that have a well-known brand. Its six UK factories contain factory lines producing up to 1. where we expect over 200 trailers in and out each day – that equates to about 3 million cases per week.Making the most of this book and MyOMLab (continued) Analyse operations in action The Operations in practice and Case study features in each chapter illustrate and encourage you to analyse operations management in action. Not only did CDS employ professionally respected designers. which now manages Britvic’s NDC. Every year. ‘Our other sites around the country have different peaks and troughs throughout the year which helps us utilize employee numbers.com. they had also acquired a reputation for being able to translate difficult technical designs into manufacturable and saleable ➔ . CDS’s Marketing Director. Premium-priced colours and new textures would become popular for one or two years. The order information allows the multi-skilled workforce to be allocated effectively. the demand pattern for soft drinks is seasonal.’ (Jim Thompson. it is capable of holding up to 140 million cans in its 50. Generally it was CDS’s design expertise which was attractive to ‘design house’ partners. we became a customer-focused “design and make” operation. The move into ‘Concept’ products The move into higher-margin homeware had been masterminded by Linda Fleet. This sort of business is likely to grow. mainly in the aerospace sector. In the quiet periods. We can design products in conjunction with their own design staff and offer them a level of manufacturing expertise they can’t get elsewhere. and to open up a new distribution network for them to serve upmarket stores. including brands such as Pepsi. To keep ahead we launched new ranges at regular intervals. Purdey’s and J2O. as a result of short-term weather patterns and variable order patterns from large 1 Case study Design house partnerships at Concept Design Services6 ‘I can’t believe how much we have changed in a relatively short time. The NDC uses a number of methods to cope with demand fluctuation. Press coverage generated an enormous interest which was reinforced by the product placement on several TV cookery and “lifestyle” programmes. ‘Our busiest periods are during the summer and in the run-up to Christmas. especially in Europe where the design houses appreciate our ability to offer a full service. handling up to 620 truckloads of soft drinks daily and.

Also.com where you’ll find more learning resources to help you make the most of your studies and get a better grade? Is there consensus over what the operation’s objectives should be? How well can the output from the operation be measured? Are the effects of interventions into the operation predictable? Are the operation’s activities largely repetitive? Figure 10. as the critical commentary box says. show a diversity of viewpoint and encourage you to think critically about operations management. Chapter 10 The nature of planning and control 291 4 Chapter 6 Supply network design A private health-care clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of A2. most operations cannot perfectly predict what effect the intervention will have. Vashistha. it is a simplification.com Site of the Institute of Outsourcing. Also. rope concept Therefore. M.uk/crisps A centre for research in strategic purchasing and supply with some interesting papers. Selected further reading Carmel. yet organizations are political entities where different and often conflicting objectives compete.bath. A good textbook that covers both strategic and operations issues. New York.16). McGraw-Hill Higher Education. (with Catherine Fredman) (1999) Direct from Dell: Strategies that Revolutionized an Industry. This is called the rope (see Figure 10. www.Making the most of this book and MyOMLab xvii Take a different view Critical commentaries. but not a critical analysis! Schniederjans. Some simple technology-dominated processes may approximate to it. for example. Assess the extent to which the companies you have investigated are vertically integrated in the paper supply chain that stretches from foresting through to the production of packaging materials. some operations never do the same thing more than once anyway. Local government operations.15 helps us to understand the basic functions of the monitoring and control activity. some form of communication between the bottleneck and the input to the process is needed to make sure that activities before the bottleneck do not overproduce.17 illustrates how these four questions can form dimensions of ‘controllability’. Very much one for the technically minded. news items. The degree of difficulty in controlling operations The simple monitoring control model in Figure 10.myomlab.outsourcing.ac. In fact. P. while the child care service is particularly difficult. and Vashistha. www. Simple models such as these assume that operations objectives are always clear and agreed. Furthermore. Dell.transparency. 167 5 Figure 10. Chopra. But anyone who has worked in real organizations knows that organizations are not machines.org Lots of useful stuff. etc. Another topical book on outsourcing. and Meindl. even if it is possible to work out an appropriate intervention to bring an operation back into ‘control’. If every output is different. Cambridge University Press. A. Prentice Hall.opsman. the specific criticisms cited in the critical commentary box provide a useful set of questions which can be used to assess the degree of difficulty associated with control of any operation:9 ● ● ● ● Now that you have finished reading this chapter. (a) At what level of demand (in number of patients per week) will the clinic break even on the cost of leasing the CAT scan? (b) Would a revised lease that stipulated a fixed cost of A3. (2001) Supply Chain Management: Strategy.000 per week and a variable cost of A0. 6 Critical commentary Most of the perspectives on control taken in this chapter are simplifications of a far more messy reality.000 per month and a charge per patient of A6 per patient scanned. Upper Saddle River. (2006) The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring. Even the largest of burger bar chains does not know exactly how a new shift allocation system will affect performance. the outputs from operations are not always easily measured. You can get a flavour of how location decisions are made.cpmway. Cambridge. But.J. buffer. www.16 The drum. www. NJ. are overtly political. full of complex and ambiguous interactions. how can ‘controllers’ ever know what is supposed to happen? Their plans themselves are mere speculation. www. but many other operations do not. Some good case studies and some interesting reports. (2005) Offshoring Information Technology: Sourcing and Outsourcing to a Global Workforce. together with Further reading and Useful websites at the end of each chapter. but it cannot measure the full impact of its education on their future happiness. They are based on models used to understand mechanical systems such as car engines. (a) for the recordings of a well-known popular music artist. The clinic currently charges A10 per patient for taking a scan. An academic book on outsourcing. Michael Dell explains how his supply network strategy (and other decisions) had such an impact on the industry. Interesting and readable. E.org A leading site for international business (including location) that fights corruption. Most of the work done by construction operations is one-offs. why not visit MyOMLab at www. M. and Tjia. It shows three different operations. P. You can find the Useful websites in the Multimedia library of MyOMLab at www.intel. They are social systems. The tax advice service is somewhere in between.com Exactly what the title implies.com More details on Intel’s ‘Copy Exactly’ strategy and other capacity strategy issues.locationstrategies. and (b) for a less well-known (or even largely unknown) artist struggling to gain recognition. The food processing operation is relatively straightforward to control. Good industry discussion. A. Quorum Books. How might the transmission of music over the Internet affect each of these artists’ sales? What implications does electronic music transmission have for record shops? Visit the web sites of companies that are in the paper manufacturing/pulp production/packaging industries.2 per patient be a better deal? Visit sites on the Internet that offer (legal) downloadable music using MP3 or other compression formats. Useful web sites www. A university may be able to measure the number and qualifications of its students. Harper Business London.com. for example. (1998) International Facility Location and Acquisition Analysis. www. Planning and Operations. S. .com American location selection site. Consider the music business supply chain.myomlab.

All managers. operations management is everywhere. It is unambiguous in treating the operations function as being central to competitiveness. manufacturing or service. most companies have now come to understand the importance of operations. the short cases that appear through the chapters. Distinctive features Clear structure The structure of the book uses a model of operations management which distinguishes between design. Around seventy-five per cent of examples are from service organizations and twenty-five percent from manufacturing. Postgraduate students on other specialist masters degrees should find that it provides them with a wellgrounded and. and improvement. . International in the examples which are used. changes in what we want to do at work. whether that organization is large or small. There has rarely been a time when operations management was more topical or more at the heart of business and cultural shifts. And all organizations produce some mixture of services and products. ● ● ● The aim of this book This book provides a clear. which starts every chapter. This is because they have realized that effective operations management gives the potential to improve both efficiency and customer service simultaneously. Operations management is also exciting. the pressures to be socially responsible. But more than this. how we want to work.Preface Introduction Operations management is important. for profit or not for profit. It is at the centre of so many of the changes affecting the business world – changes in customer preference. changes in supply networks brought about by internet-based technologies. This makes. It is concerned with creating the services and products upon which we all depend. manage processes and serve customers (internal or external). where we want to work. Conceptual in the way it explains the reasons why operations managers need to take decisions. it is not confined to the operations function. ● ● ● ● ● ● Strategic in its perspective. It is they who must find the solutions to technological and environmental challenges. or whatever. Operations management is also challenging. at times. and so on. authoritative. well structured and interesting treatment of operations management as it applies to a variety of businesses and organizations. Promoting the creativity which will allow organizations to respond to so many changes is becoming the prime task of operations managers. Comprehensive in its coverage of the significant ideas and issues which are relevant to most types of operation. critical approach to the subject. Who should use this book? Anyone who is interested in how services and products are created. whether they are called Operations or Marketing or Human Resources or Finance. planning and control. The text provides both a logical path through the activities of operations management and an understanding of their strategic context. Practical in that the issues and challenges of making operations management decisions in practice are discussed. public or private. More specifically. Thankfully. MBA students should find that its practical discussions of operations management activities enhance their own experience. all explore the approaches taken by operations managers in practice. the increasing globalization of markets and the difficult-todefine areas of knowledge management. and the case studies at the end of each chapter. technical or joint degrees should find it sufficiently structured to provide an understandable route through the subject (no prior knowledge of the area is assumed). The ‘Operations in practice’ feature. Balanced in its treatment. this text is: Undergraduates on business studies. This means we reflect the balance of economic activity between service and manufacturing operations. at least part of their activities ‘operations’. There are over 120 descriptions of operations practice from all over the world.

Preface xix Illustrations-based Case studies Operations management is a practical subject and cannot be taught satisfactorily in a purely theoretical manner. or treats some important related issues. Because of this we have used examples and ‘boxed’ short cases which explain some issues faced by real operations. There are also activities that support the learning objectives of the chapter that can be done individually or in groups. A short list of web addresses is included in each chapter for those who wish to take their studies further. . This is why we have included ‘critical commentaries’ that pose alternative views to the one being expressed in the main flow of the text. Worked examples Every chapter includes a case study suitable for class discussion. These can be used to check out your understanding of the concepts illustrated in the worked examples. The nature of each further reading is also explained. Summary answers to key questions Every chapter ends with a short list of further reading which takes the topics covered in the chapter further. ‘worked examples’ are used to demonstrate how both types of technique can be used. Critical commentaries Every chapter includes a set of problem type exercises. but have sufficient content also to serve as the basis of case sessions. Useful websites Each chapter is summarized in the form of a list of bullet points. These extract the essential points which answer the key question posed at the beginning of each chapter. Selected further reading Not everyone agrees about what is the best approach to the various topics and issues with operations management. Problems and applications Operations management is a subject that blends qualitative and quantitative perspectives. The cases are usually short enough to serve as illustrations.

co. powerpoint slides and animated models with audio commentary. Instructor’s resources A completely new instructor’s manual is available to lecturers adopting this textbook. A Homework feature.uk/ replocator) for further details and to request a copy.uk/replocator or visit www. allowing you to assign work for your students to prepare for your next class or seminar. a new set of online resources to enable students to check their understanding. together with PowerPoint presentations for each chapter and a Testbank of assessment questions.com. ● ● ● ● An even greater emphasis has been placed on the idea of ‘process management’. pearsoned. you can take advantage of: ● ● ● ● A wide range of engaging resources. Visit www. including algorithmically-generated quantitative values which make for a different problem every time.To the Instructor … Teaching and learning resources for the 6th edition New for the sixth edition We have a regular opportunity to listen to the views of users of the book and are always keen to receive feedback. Using MyOMLab. Finally. and to enable your students to study independently and at their own pace. A Gradebook which tracks students' performance on sample tests as well as assessments of your own design. Many of the cases at the end of the chapter and short cases are new (but the old ones are still available on the web site). Please see below for details of MyOMLab. This makes each chapter more compact.co. Hundreds of self-assessment questions. The Worked examples have been extended to provide a better balance between qualitative and quantitativebased techniques. The ‘Operations in Practice’ sections that are used to introduce the topic at the beginning of each chapter have been refreshed. and provide an up-to-date selection of operations issues. . The book has been visually redesigned to aid learning.pearsoned.myomlab. practice key techniques and improve their problemsolving skills now accompanies the book. Please contact your local Pearson Education Sales Consultant (www. please contact your local Pearson sales consultant at www. Our research for the 6th edition resulted in maintaining the successful structure of previous editions and incorporating the following key changes: ● ● ● The ‘Problems’ and ‘Study activities’ sections have been merged.uk/slack to access these. If you'd like to learn more or find out how MyOMLab could help you. and most importantly. In addition a new Operations in Practice DVD is now available. and reflects a greater emphasis on this issue throughout the book. The key to greater understanding and better grades in Operations Management! MyOMLab for instructors MyOMLab is designed to save you time in preparing and delivering assignments and assessments for your course.pearsoned.co. A whole new chapter on Corporate Social Responsibility (CSR) has been added. making the subject more relevant to every functional areas of the organization. including video.

borrow a book from the library or ride on public transport. 4. Many of these were provided by our contacts in companies. Any book has to separate topics. Therefore study the chapters in whatever sequence is appropriate to your course or your individual interests. The first hint therefore in using this book effectively is to look out for all the links between the individual topics. to some extent. although the chapters follow a logical structure. consider the operations management issues of all the operations for which you are a customer. they need not be studied in this order. Most important of all. Unlimited practice on quantitative techniques and solving problems. There are also examples which you can observe every day.com to find valuable teaching and learning material including: ● Self-assessment questions and a personalized Study Plan to diagnose areas of strength and weakness. Video clips and short cases to illustrate operations management in action. . For example. But because each part has an introductory chapter. direct students’ learning. and improve results. those students who wish to start with a brief ‘overview’ of the subject may wish first to study Chapters 1. When you have done this individually try to discuss your analysis with other course members. Whenever you use a shop.To the Student . The case exercises and study activities are there to provide an opportunity for you to think further about the ideas discussed in the chapters. in order to study them. If you cannot answer these you should revisit the relevant parts of the chapter. The same applies to revision – study the introductory chapters and summary answers to key questions. Visit the MyOMLab at www. technology choice impacts on job design which in turn impacts on quality control. animated models and electronic flashcards to aid exam revision. yet we have treated these topics individually. simplifications of the messy reality which is actual organizational life. The book makes full use of the many practical examples and illustrations which can be found in all operations. every time you analyse one of the case exercises (or any other case or example in operations management) start off your analysis with the two fundamental questions: ● ● How is this organization trying to compete (or satisfy its strategic objectives if a not-for-profit organization)?. Audio downloads. So if you want to understand the importance of operations management in everyday business life look for examples and illustrations of operations management decisions and activities in newspapers and magazines. magazines and newspapers. ● ● ● . Use the questions at the end of each case exercise to guide you through the logic of analysing the issue treated in the case. Every chapter is. Study activities can be used to test out your understanding of the specific points and issues discussed in the chapter and discuss them as a group. What can the operation do to help the organization compete more effectively? The key to greater understanding and better grades in Operations Management! MyOMLab for students MyOMLab has been developed to help students make the most of their studies in operations management. if you choose. but many also come from journals. more or less. eat a meal in a restaurant. The case exercises at the end of each chapter will require some more thought. Making the most of this book All academic textbooks in business management are. self-contained. Similarly with the sequence of topics. .myomlab. 10 and 18 and the chapter summaries of selected chapters. which in reality are closely related.

‘Would a similar operation with a different strategy do things differently?’ Look at the Short cases. Use the Critical commentaries within the text to understand some of the alternative viewpoints. and GOOD LUCK! Nigel Slack . but qualify this with a few well chosen sentences. and if you can do all three. and what they contribute to an organisation’s success. and you want a really good grade. Your new-found knowledge will stick in your memory. there are plenty of us who. Case studies and ‘Operations in practice’ sections. Make full use of the text and MyOMLab to find out where you need to improve. Step 6 Use your own experience. Both the chapters of the book.myomlab. you will pass with flying colours! Step 9 Remember not only what the issue is about. if you can do (a) and (b) you will pass well. if you can do (a) you will pass. and Operations in practice pieces in the book. You can also use the revision pod casts on MyOMLab. Generally. combined with those on MyOMLab. try following these simple steps: Step 1 Practice. give you hundreds of different examples. Every day. practice. The Short cases. Step 10 Start now! Don’t wait until two weeks before an assignment is due. Think ‘What is really being asked here? What topic or topics does this question cover?’ Find the relevant chapter or chapters. and enable you to get better grades. Step 7 Always answer the question. Ask yourself. don’t get as good a grade as we really deserve. Case studies. Step 8 Take account of the three tiers of accumulating marks for your answers. Why is the queue at the airport check-in desk so long? What goes on behind the ‘hole in the wall’ of your bank’s ATM machines? Use the videos on MyOMLab to look further at operations in practice. You’ll get more credit for appropriately mixing your methods: use a quantitative model to answer a quantitative question and vice versa. show that you can discuss and analyse the issues critically. Step 5 Research widely around the topic. Step 3 Remember to use both quantitative and qualitative analysis. You’ll get more credit for using references that come from genuine academic sources. allow you to develop ideas. incorporate qualitative and quantitative material. Step 4 There’s always a strategic objective behind any operational issue. (c) Third. So. I mean really. and search the Key questions at the beginning of each chapter and the Summary at the end of each chapter to get you started. practice.com). and the exercises on MyOMLab. while fairly good. but also understand why! Read the text and apply your knowledge on MyOMLab until you really understand why the concepts and techniques of operations management are important. show that you know how to illustrate and apply the topic. you’re experiencing an opportunity to apply the principles of operations management. demonstrate your knowledge and understanding. read on. (a) First. Use the Study plan feature in MyOMLab and practice to master the topics which you find difficult. Log on (www. Step 2 Remember a few key models. Use websites that you trust – we’ve listed some good websites at the end of each chapter and on MyOMLab.Ten steps to getting a better grade in operations management I could say that the best rule for getting a better grade is to be good. if you are studying operations management. Use the Key questions and the Problems and applications to check your understanding. really good! But. (b) Second. Use the diagrams and models to describe some of the examples that are contained within the chapter. and apply them wherever you can.

He is the author or co-author of many books. He holds a Bachelor’s degree in Engineering and Master’s and Doctor’s degrees in Management. In his mid-thirties and seeking a career change. he undertakes consultancy in a diverse range of industries and is co-author of several operations management books. published by Routledge in 2003. he studied for an MBA. 1991. service recovery. Operations Strategy together with Michael Lewis. Service Operations Management (with Graham Clark). Stuart Chambers is a Principle Teaching Fellow at Warwick Business School. Several of the case studies prepared from this work have been published in an American textbook on manufacturing strategy. transport. Before moving to academia Dr Johnston held several line management and senior management posts in a number of service organizations in both the public and private sectors. especially financial services. Robert Johnston is Professor of Operations Management at Warwick Business School and its Deputy Dean. Alan Harrison. published by Financial Times Prentice Hall. leisure and manufacturing. Oxford. He also acts as a consultant to many international companies around the world in many sectors. In addition to lecturing on a range of operations courses at the Business School and in industry. management training and consultancy activities. He is the author of the market leading text. the second edition published by Financial Times Prentice Hall in 2008 and Perspectives in Operations Management (Volumes I to IV) also with Michael Lewis. His research is in the operations and manufacturing flexibility and operations strategy areas. where he has been since 1988. published by Mercury Business Books. published by Prentice Hall. He began his career as an undergraduate apprentice at Rolls Royce Aerospace. published in 1993 by EUROMA and Cases in Operations Management (with Robert Johnston. including The Manufacturing Advantage. He continues to maintain close and active links with many large and small organizations through his research. He is the founding editor of the International Journal of Service Industry Management and he also serves on the editorial board of the Journal of Operations Management and the International Journal of Tourism and Hospitality Research. and then worked in production and general management with companies including Tube Investments and the Marley Tile Company. Stuart Chambers and Christine Harland) third edition published by Financial Times Prentice Hall in 2003. a University Lecturer in Management Studies at Oxford University and Fellow in Operations Management at Templeton College. and then took up a three-year contract as a researcher in manufacturing strategy. as well as chapters in other texts. . numerous papers and case studies. and Making Management Decisions (with Steve Cooke). He is the author of many books and papers in the operations management area. concepts and practical solutions required for them to develop manufacturing strategies. 1991. his research interests include service design.About the authors Nigel Slack is the Professor of Operations Management and Strategy at Warwick University. and is a chartered engineer. This work enabled him to help executives develop the analyses. now in its 3rd edition (2008). Service Superiority (with Robert Johnston). performance measurement and service quality. As a specialist in service operations. He has authored numerous academic papers and chapters in books. The Blackwell Encyclopedic Dictionary of Operations Management (with Michael Lewis) published by Blackwell in 2005. graduating in mechanical engineering. He worked initially as an industrial apprentice in the hand-tool industry and then as a production engineer and production manager in light engineering. Previously he has been Professor of Service Engineering at Cambridge University. Professor of Manufacturing Strategy at Brunel University.

Colin Armistead of Bournemouth University. Michael Purtill of Four Seasons Hotel Group. Roger Maull. John Tyley of Lloyds TSB. Our thanks go to Jannis Angelis. and Shirley Johnston for case writing help and support. John K Christiansen of Copenhagen Business School. Mike Lewis. Henrique Correa of Rollins College. Our academic colleagues in the Operations Management Group at Warwick Business School also helped. Stephen Disney. Cambridge University.org for case writing help and support. We thank Pär Åhlström of Stockholm School of Economics and Alistair BrandonJones of Bath University for assistance well beyond the call of duty. Nicola Burgess. Supply Network Solutions. Johan Linden of SVT. John Maguire of the University of Sunderland. Florida. Dirk Pieter van Donk of the University of Groningen and Peter Worthington. John Pal of Manchester Metropolitan University. Professor Sven Åke Hörte of Lulea University of Technology. the authors conducted a number of ‘faculty workshops’ and the many useful comments from these sessions have influenced this and the other books for the ‘Warwick group’. Brian Jefferies of West Herts College. Helen Valentine of the University of the West of England. Chris Hillam of Sunderland University. Cardiff University. Philippa Collins of Heriot-Watt University. Hans Mayer and Tyko Persson of Nestlé. Our thanks go to everyone who attended these sessions and other colleagues. Bart McCarthy. Clive Buesnel of Xchanging. Simon Croom. David Evans of Middlesex University. Steve New. Paul Forrester of Keele University. Elizabeth Wright and Colin Reed. Mickey Howard. both by contributing ideas and by creating a lively and stimulating work environment. Nick Wake. Mary Walton is coordinator to our group at Warwick Business School. and largely word processed by Angela Slack. Doug Davies of University of Technology. Ruth Boaden of Manchester Business School. Keith Goffin. Keith Moreton of Staffordshire University. Dan McHugh of Credit Swiss First Boston. Sydney. Ian Graham of Edinburgh University. but never more so than when we were engaged on ‘the book’. Oxford University. We are also grateful to many friends. Charles Marais of the University of Pretoria. Bath University. Amrik Sohal of Monash University. Adrian Morris of Sunderland University. Cranfield University. Zoe Radnor. Catherine Pyke and Nick Fudge of Lower Hurst Farm. Dublin. Peter Norris and Mark Fisher of the Royal Bank of Scotland. Peter Long of Sheffield Hallam University. and Simon Topman of Acme Whistles. Leigh Rix of The National Trust. Finally. Dick Wheeler.Acknowledgements During the preparation of the fifth edition of this book. Michael Milgate of Macquarie University. Oxford. Ran Bhamra. Ian Sadler of Victoria University. colleagues and company contacts.C. R. Tom Kegan of Bell College of Technology. Rhian Silvestro. Andi Smart. Peter Burcher of Aston University. We were lucky to receive continuing professional and friendly assistance from a great publishing team. Liverpool University. Dan Chicksand. Denis Kehoe. Michael Shulver. Peter Race of Henley College. Exeter University. Helen Walker. yet again. In particular thanks for help with this edition goes to Philip Godfrey and Cormac Campbell and their expert colleagues at OEE. David Garman and Carol Burnett of The Oakwood Partnership. Stratton of Nottingham Trent University. de Haan of Tilburg University. Dr J. Also. Eamonn Ambrose of University College. Richard Small. David Twigg of Sussex University. Carsten Dittrich. Norma Harrison of Macquarie University. Matthias Holweg. To Angela – our thanks. Cranfield University.A. Bath University. Especial thanks to Matthew Walker. and Paul Walley. Tony Dromgoole of the Irish Management Institute. It was. Nigel Slack Stuart Chambers Robert Johnston . Dr Nelson Tang of the University of Leicester. Reading University. Exeter University. David Nichol of Morgan Stanley. John Meredith Smith of EAP. Harvey Maylor of Cranfield University. University of Southern Denmark. an heroic effort. Catherine Hart of Loughborough Business School. Michaelis Giannakis. Paul Coughlan. Hamilton. Nottingham University. Alan Betts of ht2. all six editions were organized. Alex Skedd of Northumbria Business School. Trinity College Dublin. Ian Holden of Bristol Business School. University of San Diego. Alan Harle of Sunderland University. Martin Spring of Lancaster University. Professor Roland van Dierdonck of the University of Ghent. Joanne Chung of Synter BMW. Chris Morgan. Dr Ebrahim Soltani of the University of Kent. John Matthew of HSPG. Loughbrough University. Her continued efforts at keeping us organized (or as organized as we are capable of being) are always appreciated.

Rex Features: Richard Jones (cr). pp. 496 Four Seasons Hotels: Robert Miller.A. 120 Getty Images. Proceedings of the Southern Management Association Annual Meeting (Atlanta. Journal of Marketing. 414 Alamy Images: Bon Appetit. 499 Corbis: Eleanor Bentall. 269 © BMW Group. 410 Courtesy of SAP (UK) Limited. A. 49. 116 Alamy Images: Adrian Sherratt.D. 220 Photographers Direct: Andy Maluche. 281 Alamy Images: Ian Miles/Flashpoint Pictures. 273 Getty Images: AFP. Honda: (tr). 642 Alamy Images: PSL Images. Inc. 417 Alamy Images: A T Willett. 237 Alamy Images: David Hancock. Courtesy of Arup: (cr). 147 Getty Images: AFP. Rex Features: Per Lindgren (bl)... 1985). 384 Corbis: Joes Luis Pelaez. 298 Wincanton. 638 Photographers Direct: Awe Inspiring Images. 216 Rex Features. Reviewed. 42 Alamy Images: David Hoffman Photo Library (cl). 500 Alamy Images: Les Gibbons. 602 Rex Features: Action Press. International Journal of Production Economics. 27 Alamy Images: Adrian Sherratt. G. 57 Alamy Images: Tim Graham. 304 Alamy Images: Medical-on-Line. We would be pleased to insert the appropriate acknowledgement in any subsequent edition of this publication. 633 Rex Features: Design Pics Inc. 9 Rex Features: Brian Rasic. 317 Press Association Images: Orlin Wagner/AP. 210 Corbis: Yiorgos Karahalis. 356 Howard Smith Paper Group. A. 43 Corbis: Bernardo Bucci. 548 Rex Features: Dan Tuffs. 87 Getty Images: AFP. 475 Image courtesy of Silicon Graphics. 251 Getty Images: Williams & Hirakawa.2 adapted from Adapted from Barnes. Stuart Chambers and Robert Johnston Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional omissions. Marri. 122 Photographers Direct: Martin Karius. 185 –97 (Gunasekaran. Rex Features: Per Lindgren (cl). Ulrich Perrey/epa (t). 577 Alamy Images: Imagina Photography. Elsevier. and Nebhwani. Heinz von Heyenaber (br). 94 Alamy Images: Directphoto. Figures Figure 15. 592 Alamy Images: Dinodia Images. Photographs The publisher would like to thank the following for their kind permission to reproduce their photographs: 3 Alamy Images: Neil Cannon. Golden Pixels/LLC (b). 14 Alamy Images: Alex Segre. Rex Features: Per Lindgren (cl). and Harrison. 458 Corbis: Jane-Philippe Arles / Reuters. 7 Alamy Images: Chris Rout (c). and Restored’. A. and we would appreciate any information that would enable us to do so. 341 Alamy Images: Van Hilversum. 387 Virgin Atlantic. 298. 418 Corbis: Mark Cooper. R. Getty Images: AFP (b). 211 YO! Sushi: Jonathan Roberts. vol. 44 Alamy Images: David Hoffman Photo Library (tl). 1987) Springer. Fall. 440 Rex Features: Burger/Phanie. © 2003 Silicon Graphics. 369 Alamy Images: Archive Berlin Fotoagentur GmbH. Table S9. 41–50 (Parasuraman. 34 Rex Features: Jurgen Hasenkopf. Rex Features: Per Lindgren (bl).B. All other images © Nigel Slack. 622 Getty Images: Paul Vismara. 213 Rex Features. 407 © RollsRoyce plc. 402 Press Association Images: JAVA/ABACA. et al. H.4 adapted from A conceptual model of service quality and implications for future research. 61 Corbis: Thomas White (b). 41 Alamy Images: David Hoffman Photo Library (tl). 90 Getty Images. 33 Alamy Images: Craig Ingram. Rex Features: Action Press (t). 398 Getty Images: AFP.A. Used. 2002). 139 Corbis: Gianni Giansanti /Sygma. 95 © The Royal Bank of Scotland Group plc. Figure 17. 68 Alamy Images: Rob Crandell. 488 Corbis: Eric K K Yu. 186 Cadbury World: (t). C. 178 Alamy Images: British Retail Photography. 292 Robert Wiseman Dairies. 207 Rex Features: Action Press. 374 Alamy Images: Imagebroker.. Corbis: Marijan Murat/epa (b). 556 Rex Features: Charles Knight. 151 Getty Images: AFP. 310 Corbis: G Flayols /Photocuisine. American Marketing Association. Frank C. 162 Corbis: Jacques Langevin.org (t). 541 Getty Images. 74 Alamy Images: Bernhard Classen. 47 BBC Photo Library: Jeff Overs. 92 Corbis: Construction Photography (cr). 430 Corbis: Denis Balihoudr. 309 British Airways. 250 Rex Features: Voisin Phanie. 248 Getty Images. 234 Alamy Images: Ashley Cooper. . 294 Courtesy of Arup. 145 Rex Features: Image Source. Getty Images: Siri Stafford (tl). David Hoffman Photo Library (tl).1 after E-commerce and its impact on operations management. 465 Alamy Images: Oleksandr Ivanchenko. pp. Stuart Pearce (b). McGaughey. Getty Images: David Sacks (b).11 from ‘Strategies for implemeting JIT’ in Just in Time Manufacture IFS/Springer-Verlag (Voss. 49 Alamy Images: Bildagentur-online (b). Rex Features: Per Lindgren. Inc. 75.Acknowledgements xxv Publisher’s acknowledgements We are grateful to the following for permission to reproduce copyright material: 93 Getty Images: Burje/Triolo Productions (tr). 107 Alamy Images: Michael Jones. 247 Corbis: Reuters. 379 Getty Images: Getty Images News. 8 ACME. M. 224 SVT Bengt O Nordin. 113 Rex Features: Action Press. In some instances we have been unable to trace the owners of copyright material. (1983) ‘Principles of Motion Economy: Revisited. 649 Corbis: Ultraf. 1983). 385 TDG Logistics. 505 Alamy Images: Daniel Jones. Corbis: Claudio Peri/epa (br). 46 Alamy Images: David Hoffman Photo Library. 572 Science Photo Library Ltd: Simon Fraser. p. Tables Table 8. 230 Press Association Images: ECKEHARD SCHULZ/AP.E.

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