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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 .
pearsoned.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. Robert Johnston 1995. Nigel. Operations management / Nigel Slack. 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. 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. p. No part of this publication may be reproduced. 2004. Title. ISBN 978-0-273-73046-0 (pbk. All rights reserved. Saffron House. I. Production management. 6–10 Kirby Street.) 1. Chambers.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.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. Italy The publisher’s policy is to use paper manufactured from sustainable forests. II. Stuart Chambers. stored in a retrieval system. Stuart.S562 2010 658. photocopying. 2010 The rights of Nigel Slack. mechanical. Johnston. and Robert Johnston 2001. Designs and Patents Act 1988. 2007.co. . All trademarks used herein are the property of their respective owners. 1953– III. nor does the use of such trademarks imply any afﬁliation with or endorsement of this book by such owners. – 6th ed. cm. and Robert Johnston to be identiﬁed as authors of this work have been asserted by them in accordance with the Copyright. recording or otherwise. Alan Harrison. Stuart Chambers. Robert. Christine Harland. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks. Stuart Chambers. London EC1N 8TS. Stuart Chambers. Robert Johnston. electronic. or transmitted in any form or by any means. TS155. 1998 © Nigel Slack.
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 .Brief 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 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.
examples.Contents Guide to ‘operations in practice’. 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 .
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 .
p. p. 80 Chapter 4 Process design p. 145 p. 162 . p. p. p. p. p. 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. 61 p. p. p. p. short cases and case studies Chapter Chapter 1 Operations management Location p. 139 p. 74 p. p. 68 p. examples. 77 p. p. p. 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. 149 p. p. p. p. p. 151 p. 87 90 107 109 113 116 120 122 125 135 Chapter 5 The design of products and services Chapter 6 Supply network design p.9999% dependability BBC Aldi Hon Hai Precision Industry Mutiara Beach Resort. 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. 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.Guide to ‘operations in practice’.
p. p. examples. 237 247 250 256 269 273 281 286 Chapter 10 The nature of planning and control p. p. p. p. p. p. 234 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. p. p. p. p. p. p. short cases and case studies Chapter Chapter 7 Layout and ﬂow Location p. p. p. p. 385 397 398 401 . 207 210 211 213 218 220 224 230 Chapter 9 People. p. 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.xii Guide to ‘operations in practice’. 384 p. p. 292 p. p. p. 203 Chapter 8 Process technology p. jobs and organization p. p. p. 379 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.L. 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. 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. 294 Chapter 11 Capacity planning and control p. 374 p.
635 p. 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. 417 p. 430 p. 649 . 411 p. 638 p. examples. 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. 597 Chapter 20 Organizing for improvement Chapter 21 Corporate social responsibility (CSR) p. 418 Chapter 15 Lean synchronization Chapter 16 Project planning and control Chapter 17 Quality management p. p. p. 572 p. p. p. p. 592 p. 440 p. p. p. p. 410 p. 407 p. p. p. p. short cases and case studies Chapter Chapter 14 Enterprise Resource Planning Location p. 602 620 622 626 p. p. 414 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. p. 577 p. 575 p. 642 p.Guide to ‘operations in practice’. p. p.
Practical in that the issues and challenges of making operations management decisions in practice are discussed. and the case studies at the end of each chapter. MBA students should ﬁnd that its practical discussions of operations management activities enhance their own experience. It is concerned with creating the services and products upon which we all depend. most companies have now come to understand the importance of operations. all explore the approaches taken by operations managers in practice. This makes. Thankfully. All managers. or whatever. critical approach to the subject. at least part of their activities ‘operations’. Operations management is also exciting. And all organizations produce some mixture of services and products. how we want to work. well structured and interesting treatment of operations management as it applies to a variety of businesses and organizations. ● ● ● ● ● ● Strategic in its perspective. at times. and so on. The text provides both a logical path through the activities of operations management and an understanding of their strategic context. . There has rarely been a time when operations management was more topical or more at the heart of business and cultural shifts. manage processes and serve customers (internal or external). But more than this. Around seventy-ﬁve per cent of examples are from service organizations and twenty-ﬁve percent from manufacturing. whether that organization is large or small. Promoting the creativity which will allow organizations to respond to so many changes is becoming the prime task of operations managers. this text is: Undergraduates on business studies. the increasing globalization of markets and the difﬁcult-todeﬁne areas of knowledge management. It is they who must ﬁnd the solutions to technological and environmental challenges. Comprehensive in its coverage of the signiﬁcant ideas and issues which are relevant to most types of operation. This is because they have realized that effective operations management gives the potential to improve both efﬁciency and customer service simultaneously. ● ● ● The aim of this book This book provides a clear. changes in supply networks brought about by internet-based technologies. It is unambiguous in treating the operations function as being central to competitiveness. Distinctive features Clear structure The structure of the book uses a model of operations management which distinguishes between design. Who should use this book? Anyone who is interested in how services and products are created.Preface Introduction Operations management is important. manufacturing or service. public or private. changes in what we want to do at work. It is at the centre of so many of the changes affecting the business world – changes in customer preference. for proﬁt or not for proﬁt. authoritative. the pressures to be socially responsible. Operations management is also challenging. 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). it is not conﬁned to the operations function. whether they are called Operations or Marketing or Human Resources or Finance. which starts every chapter. and improvement. International in the examples which are used. Postgraduate students on other specialist masters degrees should ﬁnd that it provides them with a wellgrounded and. The ‘Operations in practice’ feature. There are over 120 descriptions of operations practice from all over the world. More speciﬁcally. operations management is everywhere. planning and control. Conceptual in the way it explains the reasons why operations managers need to take decisions. the short cases that appear through the chapters. Balanced in its treatment. where we want to work. This means we reﬂect the balance of economic activity between service and manufacturing operations.
Because of this we have used examples and ‘boxed’ short cases which explain some issues faced by real operations.Preface xix Illustrations-based Case studies Operations management is a practical subject and cannot be taught satisfactorily in a purely theoretical manner. 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. There are also activities that support the learning objectives of the chapter that can be done individually or in groups. or treats some important related issues. A short list of web addresses is included in each chapter for those who wish to take their studies further. The nature of each further reading is also explained. Critical commentaries Every chapter includes a set of problem type exercises. Worked examples Every chapter includes a case study suitable for class discussion. This is why we have included ‘critical commentaries’ that pose alternative views to the one being expressed in the main ﬂow of the text. Problems and applications Operations management is a subject that blends qualitative and quantitative perspectives. Summary answers to key questions Every chapter ends with a short list of further reading which takes the topics covered in the chapter further. . These can be used to check out your understanding of the concepts illustrated in the worked examples. ‘worked examples’ are used to demonstrate how both types of technique can be used. These extract the essential points which answer the key question posed at the beginning of each chapter. The cases are usually short enough to serve as illustrations. Selected further reading Not everyone agrees about what is the best approach to the various topics and issues with operations management.
pearsoned. and reﬂects a greater emphasis on this issue throughout the book. Using MyOMLab. including algorithmically-generated quantitative values which make for a different problem every time. The ‘Operations in Practice’ sections that are used to introduce the topic at the beginning of each chapter have been refreshed. Please contact your local Pearson Education Sales Consultant (www. please contact your local Pearson sales consultant at www. including video. and most importantly.com.uk/slack to access these. A Homework feature. and to enable your students to study independently and at their own pace. A whole new chapter on Corporate Social Responsibility (CSR) has been added. 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. Please see below for details of MyOMLab. The Worked examples have been extended to provide a better balance between qualitative and quantitativebased techniques.uk/replocator or visit www. Instructor’s resources A completely new instructor’s manual is available to lecturers adopting this textbook. Visit www.co. 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. This makes each chapter more compact. ● ● ● ● An even greater emphasis has been placed on the idea of ‘process management’.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. A Gradebook which tracks students' performance on sample tests as well as assessments of your own design. making the subject more relevant to every functional areas of the organization. pearsoned. Finally.pearsoned.myomlab.co. Hundreds of self-assessment questions. practice key techniques and improve their problemsolving skills now accompanies the book. If you'd like to learn more or find out how MyOMLab could help you. allowing you to assign work for your students to prepare for your next class or seminar. and provide an up-to-date selection of operations issues. together with PowerPoint presentations for each chapter and a Testbank of assessment questions. powerpoint slides and animated models with audio commentary. In addition a new Operations in Practice DVD is now available. you can take advantage of: ● ● ● ● A wide range of engaging resources. . a new set of online resources to enable students to check their understanding.co. 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).uk/ replocator) for further details and to request a copy. The book has been visually redesigned to aid learning.
borrow a book from the library or ride on public transport. Making the most of this book All academic textbooks in business management are. Whenever you use a shop. Therefore study the chapters in whatever sequence is appropriate to your course or your individual interests. they need not be studied in this order. . Most important of all. but many also come from journals. The same applies to revision – study the introductory chapters and summary answers to key questions. Video clips and short cases to illustrate operations management in action. 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)?. simpliﬁcations of the messy reality which is actual organizational life. If you cannot answer these you should revisit the relevant parts of the chapter. 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. . Unlimited practice on quantitative techniques and solving problems. 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. animated models and electronic flashcards to aid exam revision.myomlab. Use the questions at the end of each case exercise to guide you through the logic of analysing the issue treated in the case.com to find valuable teaching and learning material including: ● Self-assessment questions and a personalized Study Plan to diagnose areas of strength and weakness. in order to study them. There are also examples which you can observe every day. For example. yet we have treated these topics individually. The ﬁrst hint therefore in using this book effectively is to look out for all the links between the individual topics. The case exercises at the end of each chapter will require some more thought. technology choice impacts on job design which in turn impacts on quality control. Any book has to separate topics. direct students’ learning. 4. When you have done this individually try to discuss your analysis with other course members. eat a meal in a restaurant. The book makes full use of the many practical examples and illustrations which can be found in all operations. which in reality are closely related. Many of these were provided by our contacts in companies. Similarly with the sequence of topics. and improve results. Every chapter is. 10 and 18 and the chapter summaries of selected chapters. more or less. Visit the MyOMLab at www. The case exercises and study activities are there to provide an opportunity for you to think further about the ideas discussed in the chapters. to some extent. although the chapters follow a logical structure. self-contained. 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.To the Student . consider the operations management issues of all the operations for which you are a customer. magazines and newspapers. But because each part has an introductory chapter. if you choose. ● ● ● . those students who wish to start with a brief ‘overview’ of the subject may wish ﬁrst to study Chapters 1.
and what they contribute to an organisation’s success. while fairly good. Log on (www. combined with those on MyOMLab. Step 6 Use your own experience. you’re experiencing an opportunity to apply the principles of operations management. Every day. practice. but qualify this with a few well chosen sentences. practice. Case studies. really good! But. (b) Second. allow you to develop ideas. and search the Key questions at the beginning of each chapter and the Summary at the end of each chapter to get you started. incorporate qualitative and quantitative material. Step 4 There’s always a strategic objective behind any operational issue. and apply them wherever you can. Both the chapters of the book.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 Study plan feature in MyOMLab and practice to master the topics which you ﬁnd difﬁcult. and Operations in practice pieces in the book. show that you can discuss and analyse the issues critically. Use the Critical commentaries within the text to understand some of the alternative viewpoints. if you can do (a) and (b) you will pass well.myomlab. demonstrate your knowledge and understanding. there are plenty of us who. you will pass with ﬂying colours! Step 9 Remember not only what the issue is about. You can also use the revision pod casts on MyOMLab. give you hundreds of different examples. I mean really. Step 5 Research widely around the topic. read on. Use websites that you trust – we’ve listed some good websites at the end of each chapter and on MyOMLab. (a) First. You’ll get more credit for using references that come from genuine academic sources. 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. Step 8 Take account of the three tiers of accumulating marks for your answers. 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. Your new-found knowledge will stick in your memory. Step 7 Always answer the question. So. show that you know how to illustrate and apply the topic. Step 3 Remember to use both quantitative and qualitative analysis. Step 10 Start now! Don’t wait until two weeks before an assignment is due. and GOOD LUCK! Nigel Slack . You’ll get more credit for appropriately mixing your methods: use a quantitative model to answer a quantitative question and vice versa. and the exercises on MyOMLab. and you want a really good grade. Think ‘What is really being asked here? What topic or topics does this question cover?’ Find the relevant chapter or chapters. ‘Would a similar operation with a different strategy do things differently?’ Look at the Short cases. try following these simple steps: Step 1 Practice. (c) Third. Ask yourself. The Short cases. if you can do (a) you will pass. Use the diagrams and models to describe some of the examples that are contained within the chapter. and enable you to get better grades.com). Step 2 Remember a few key models. don’t get as good a grade as we really deserve. Generally. and if you can do all three. Case studies and ‘Operations in practice’ sections. Use the Key questions and the Problems and applications to check your understanding. Make full use of the text and MyOMLab to ﬁnd out where you need to improve.
now in its 3rd edition (2008). performance measurement and service quality. Robert Johnston is Professor of Operations Management at Warwick Business School and its Deputy Dean. transport. and is a chartered engineer. He began his career as an undergraduate apprentice at Rolls Royce Aerospace. This work enabled him to help executives develop the analyses. In his mid-thirties and seeking a career change. his research interests include service design. In addition to lecturing on a range of operations courses at the Business School and in industry. 1991. His research is in the operations and manufacturing ﬂexibility and operations strategy areas. and then worked in production and general management with companies including Tube Investments and the Marley Tile Company. as well as chapters in other texts. He continues to maintain close and active links with many large and small organizations through his research. Operations Strategy together with Michael Lewis. management training and consultancy activities. published by Mercury Business Books. service recovery. especially ﬁnancial services. He also acts as a consultant to many international companies around the world in many sectors. he studied for an MBA. numerous papers and case studies. and then took up a three-year contract as a researcher in manufacturing strategy. He has authored numerous academic papers and chapters in books. He is the author of many books and papers in the operations management area. Oxford. As a specialist in service operations. a University Lecturer in Management Studies at Oxford University and Fellow in Operations Management at Templeton College.About the authors Nigel Slack is the Professor of Operations Management and Strategy at Warwick University. Professor of Manufacturing Strategy at Brunel University. the second edition published by Financial Times Prentice Hall in 2008 and Perspectives in Operations Management (Volumes I to IV) also with Michael Lewis. 1991. graduating in mechanical engineering. published in 1993 by EUROMA and Cases in Operations Management (with Robert Johnston. he undertakes consultancy in a diverse range of industries and is co-author of several operations management books. 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. published by Financial Times Prentice Hall. including The Manufacturing Advantage. where he has been since 1988. published by Prentice Hall. published by Routledge in 2003. The Blackwell Encyclopedic Dictionary of Operations Management (with Michael Lewis) published by Blackwell in 2005. 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. He is the author of the market leading text. He worked initially as an industrial apprentice in the hand-tool industry and then as a production engineer and production manager in light engineering. 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. Stuart Chambers and Christine Harland) third edition published by Financial Times Prentice Hall in 2003. Service Superiority (with Robert Johnston). 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. Alan Harrison. and Making Management Decisions (with Steve Cooke). leisure and manufacturing. . Previously he has been Professor of Service Engineering at Cambridge University. concepts and practical solutions required for them to develop manufacturing strategies.
Elizabeth Wright and Colin Reed. David Nichol of Morgan Stanley. Professor Sven Åke Hörte of Lulea University of Technology. Dan McHugh of Credit Swiss First Boston. Eamonn Ambrose of University College. Sydney. Peter Burcher of Aston University. To Angela – our thanks. Ian Graham of Edinburgh University. Amrik Sohal of Monash University. Clive Buesnel of Xchanging. Keith Gofﬁn. Paul Forrester of Keele University.C. Dick Wheeler. Oxford. We were lucky to receive continuing professional and friendly assistance from a great publishing team. Also. Catherine Hart of Loughborough Business School. Liverpool University. Nick Wake. Alan Betts of ht2. Johan Linden of SVT. Our thanks go to Jannis Angelis. Martin Spring of Lancaster University. and Simon Topman of Acme Whistles. Dublin. Andi Smart. yet again. Rhian Silvestro. Hans Mayer and Tyko Persson of Nestlé. Bath University. Bath University. It was. Alex Skedd of Northumbria Business School. Nicola Burgess. Paul Coughlan. Keith Moreton of Staffordshire University. University of Southern Denmark. Florida. Steve New. Roger Maull. Bart McCarthy. Cranﬁeld University. Exeter University. Alan Harle of Sunderland University. Finally. John Tyley of Lloyds TSB. R. Mickey Howard. David Evans of Middlesex University. Brian Jefferies of West Herts College. Nottingham University. Exeter University. Michaelis Giannakis. Chris Morgan. Cambridge University.Acknowledgements During the preparation of the ﬁfth edition of this book. Trinity College Dublin. 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’. Dr J. and largely word processed by Angela Slack. Doug Davies of University of Technology. colleagues and company contacts. and Paul Walley. Michael Purtill of Four Seasons Hotel Group. Adrian Morris of Sunderland University. Cardiff University. Peter Race of Henley College. We are also grateful to many friends. Our thanks go to everyone who attended these sessions and other colleagues. de Haan of Tilburg University. Mary Walton is coordinator to our group at Warwick Business School. Peter Norris and Mark Fisher of the Royal Bank of Scotland. Philippa Collins of Heriot-Watt University.A. In particular thanks for help with this edition goes to Philip Godfrey and Cormac Campbell and their expert colleagues at OEE. Helen Valentine of the University of the West of England. Ran Bhamra. Zoe Radnor. Reading University. Harvey Maylor of Cranﬁeld University. Peter Long of Shefﬁeld Hallam University. John Matthew of HSPG. John Maguire of the University of Sunderland. University of San Diego. Dan Chicksand. Leigh Rix of The National Trust. Ian Holden of Bristol Business School. Loughbrough University. Simon Croom. Ruth Boaden of Manchester Business School. Michael Shulver. Richard Small. and Shirley Johnston for case writing help and support.org for case writing help and support. Joanne Chung of Synter BMW. Mike Lewis. Cranﬁeld University. Helen Walker. John Meredith Smith of EAP. Our academic colleagues in the Operations Management Group at Warwick Business School also helped. John K Christiansen of Copenhagen Business School. Carsten Dittrich. Professor Roland van Dierdonck of the University of Ghent. all six editions were organized. Henrique Correa of Rollins College. Tony Dromgoole of the Irish Management Institute. We thank Pär Åhlström of Stockholm School of Economics and Alistair BrandonJones of Bath University for assistance well beyond the call of duty. Ian Sadler of Victoria University. Oxford University. Chris Hillam of Sunderland University. Matthias Holweg. Especial thanks to Matthew Walker. Stephen Disney. Her continued efforts at keeping us organized (or as organized as we are capable of being) are always appreciated. Dr Ebrahim Soltani of the University of Kent. David Garman and Carol Burnett of The Oakwood Partnership. Norma Harrison of Macquarie University. Hamilton. Denis Kehoe. Stratton of Nottingham Trent University. David Twigg of Sussex University. Nigel Slack Stuart Chambers Robert Johnston . Dirk Pieter van Donk of the University of Groningen and Peter Worthington. Dr Nelson Tang of the University of Leicester. Michael Milgate of Macquarie University. Charles Marais of the University of Pretoria. both by contributing ideas and by creating a lively and stimulating work environment. John Pal of Manchester Metropolitan University. Catherine Pyke and Nick Fudge of Lower Hurst Farm. but never more so than when we were engaged on ‘the book’. Colin Armistead of Bournemouth University. Supply Network Solutions. an heroic effort. Tom Kegan of Bell College of Technology.
A. 638 Photographers Direct: Awe Inspiring Images. 211 YO! Sushi: Jonathan Roberts. 317 Press Association Images: Orlin Wagner/AP. 220 Photographers Direct: Andy Maluche. 151 Getty Images: AFP. 1985). 14 Alamy Images: Alex Segre. 465 Alamy Images: Oleksandr Ivanchenko. Ulrich Perrey/epa (t). 147 Getty Images: AFP. Reviewed. 556 Rex Features: Charles Knight.E.B. 49 Alamy Images: Bildagentur-online (b). 414 Alamy Images: Bon Appetit. 237 Alamy Images: David Hancock. 430 Corbis: Denis Balihoudr. 8 ACME. 541 Getty Images. 642 Alamy Images: PSL Images.. (1983) ‘Principles of Motion Economy: Revisited. 499 Corbis: Eleanor Bentall. 294 Courtesy of Arup. Stuart Chambers and Robert Johnston Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional omissions. R.org (t).2 adapted from Adapted from Barnes. 410 Courtesy of SAP (UK) Limited. 273 Getty Images: AFP. 178 Alamy Images: British Retail Photography. Getty Images: David Sacks (b).. 572 Science Photo Library Ltd: Simon Fraser. 46 Alamy Images: David Hoffman Photo Library. Proceedings of the Southern Management Association Annual Meeting (Atlanta. 341 Alamy Images: Van Hilversum.. 369 Alamy Images: Archive Berlin Fotoagentur GmbH. M. 418 Corbis: Mark Cooper. 87 Getty Images: AFP. 34 Rex Features: Jurgen Hasenkopf. Inc. 398 Getty Images: AFP. 475 Image courtesy of Silicon Graphics. Tables Table 8. 250 Rex Features: Voisin Phanie. 57 Alamy Images: Tim Graham. Rex Features: Richard Jones (cr). Getty Images: AFP (b). Marri. 210 Corbis: Yiorgos Karahalis.A. 1987) Springer. 9 Rex Features: Brian Rasic. International Journal of Production Economics. 44 Alamy Images: David Hoffman Photo Library (tl). 94 Alamy Images: Directphoto. American Marketing Association. All other images © Nigel Slack. 602 Rex Features: Action Press. 75. and Harrison. David Hoffman Photo Library (tl). 224 SVT Bengt O Nordin. Getty Images: Siri Stafford (tl). A. and Nebhwani. Inc. Courtesy of Arup: (cr). et al. 7 Alamy Images: Chris Rout (c). 649 Corbis: Ultraf. 42 Alamy Images: David Hoffman Photo Library (cl). 622 Getty Images: Paul Vismara. Table S9. Honda: (tr). 356 Howard Smith Paper Group. Rex Features: Per Lindgren (bl). 247 Corbis: Reuters. 95 © The Royal Bank of Scotland Group plc. 41–50 (Parasuraman. 213 Rex Features. 385 TDG Logistics.4 adapted from A conceptual model of service quality and implications for future research.D. 407 © RollsRoyce plc. vol. 633 Rex Features: Design Pics Inc. p. Photographs The publisher would like to thank the following for their kind permission to reproduce their photographs: 3 Alamy Images: Neil Cannon. . 43 Corbis: Bernardo Bucci. 251 Getty Images: Williams & Hirakawa. Golden Pixels/LLC (b). Rex Features: Per Lindgren (cl). 310 Corbis: G Flayols /Photocuisine. G. A.1 after E-commerce and its impact on operations management. © 2003 Silicon Graphics. Journal of Marketing. 592 Alamy Images: Dinodia Images. 505 Alamy Images: Daniel Jones. 1983). 145 Rex Features: Image Source. H. 49. Corbis: Marijan Murat/epa (b). 90 Getty Images. Used. 113 Rex Features: Action Press. McGaughey. 417 Alamy Images: A T Willett. 116 Alamy Images: Adrian Sherratt. 402 Press Association Images: JAVA/ABACA. Figure 17. 61 Corbis: Thomas White (b). 309 British Airways. 281 Alamy Images: Ian Miles/Flashpoint Pictures. 120 Getty Images. 186 Cadbury World: (t).Acknowledgements xxv Publisher’s acknowledgements We are grateful to the following for permission to reproduce copyright material: 93 Getty Images: Burje/Triolo Productions (tr). 292 Robert Wiseman Dairies. Fall. 162 Corbis: Jacques Langevin.11 from ‘Strategies for implemeting JIT’ in Just in Time Manufacture IFS/Springer-Verlag (Voss. Rex Features: Action Press (t). 488 Corbis: Eric K K Yu. 496 Four Seasons Hotels: Robert Miller. 139 Corbis: Gianni Giansanti /Sygma. 27 Alamy Images: Adrian Sherratt. 33 Alamy Images: Craig Ingram. pp. 577 Alamy Images: Imagina Photography. 216 Rex Features. 92 Corbis: Construction Photography (cr). 248 Getty Images. 379 Getty Images: Getty Images News. pp. 207 Rex Features: Action Press. 47 BBC Photo Library: Jeff Overs. Frank C. In some instances we have been unable to trace the owners of copyright material. 234 Alamy Images: Ashley Cooper. 2002). Corbis: Claudio Peri/epa (br). 74 Alamy Images: Bernhard Classen. Figures Figure 15. 387 Virgin Atlantic. 304 Alamy Images: Medical-on-Line. Elsevier. 500 Alamy Images: Les Gibbons. Heinz von Heyenaber (br). 68 Alamy Images: Rob Crandell. Rex Features: Per Lindgren (cl). Stuart Pearce (b). 374 Alamy Images: Imagebroker. and Restored’. 269 © BMW Group. C. 122 Photographers Direct: Martin Karius. 384 Corbis: Joes Luis Pelaez. Rex Features: Per Lindgren (bl). Rex Features: Per Lindgren. 298 Wincanton. 230 Press Association Images: ECKEHARD SCHULZ/AP. 458 Corbis: Jane-Philippe Arles / Reuters. 107 Alamy Images: Michael Jones. 548 Rex Features: Dan Tuffs. 41 Alamy Images: David Hoffman Photo Library (tl). and we would appreciate any information that would enable us to do so. We would be pleased to insert the appropriate acknowledgement in any subsequent edition of this publication. 185 –97 (Gunasekaran. A. 440 Rex Features: Burger/Phanie. 298.
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