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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
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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 .
Stuart. photocopying. Stuart Chambers. or transmitted in any form or by any means. Christine Harland. Stuart Chambers. Alan Harrison. mechanical. London EC1N 8TS.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. recording or otherwise. 6–10 Kirby Street. Designs and Patents Act 1988.co. nor does the use of such trademarks imply any afﬁliation with or endorsement of this book by such owners. cm.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. and Robert Johnston 2001. 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. Title. Robert Johnston. 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. All rights reserved. Johnston. II. Production management. 2010 The rights of Nigel Slack. 1953– III. Robert.) 1. TS155. 2007.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. All trademarks used herein are the property of their respective owners. Nigel. Robert Johnston 1995. Italy The publisher’s policy is to use paper manufactured from sustainable forests. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks. No part of this publication may be reproduced. I. Stuart Chambers. Saffron House. electronic. and Robert Johnston to be identiﬁed as authors of this work have been asserted by them in accordance with the Copyright. . 2004. Operations management / Nigel Slack. ISBN 978-0-273-73046-0 (pbk.S562 2010 658. – 6th ed. p.pearsoned. stored in a retrieval system. Chambers. 1998 © Nigel Slack. Stuart Chambers.
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 . examples.Brief 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 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.
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 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 .
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. jobs and organization Introduction People in operations Human resource strategy 233 233 235 236 .
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. 61 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. 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. p.9999% dependability BBC Aldi Hon Hai Precision Industry Mutiara Beach Resort. 77 p. 149 p. p. 151 p. p. p. p. 145 p. p. short cases and case studies Chapter Chapter 1 Operations management Location p.Guide to ‘operations in practice’. 162 . p. 80 Chapter 4 Process design p. 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. 139 p. p. p. 68 p. p. p. 147 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. examples. p. 74 p. 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. p. p.
237 247 250 256 269 273 281 286 Chapter 10 The nature of planning and control p. p. p. 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. p. 234 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. 294 Chapter 11 Capacity planning and control p. 384 p. p. 379 p. p. 374 p. p. jobs and organization p. p. 203 Chapter 8 Process technology 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. 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. 207 210 211 213 218 220 224 230 Chapter 9 People. short cases and case studies Chapter Chapter 7 Layout and ﬂow Location p. p. p. examples. 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. 385 397 398 401 . p. p.L. p. p.xii Guide to ‘operations in practice’. p. 292 p. p. p. p.
p. p. 417 p. p. 635 p. 602 620 622 626 p. 418 Chapter 15 Lean synchronization Chapter 16 Project planning and control Chapter 17 Quality management 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. 407 p. p. 572 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. p. 414 p. 642 p. p. p. 430 p. p.Guide to ‘operations in practice’. 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. 575 p. 440 p. p. 410 p. 649 . p. 597 Chapter 20 Organizing for improvement Chapter 21 Corporate social responsibility (CSR) p. p. p. p. p. 638 p. p. short cases and case studies Chapter Chapter 14 Enterprise Resource Planning Location p. examples. 411 p. 592 p. 577 p.
Internally. By ‘doing things on time’. and an eBook – all at www. Internally. The people doing the judging are called ‘stakeholders’ and the aspects of performance they are using are called ‘performance objectives’. ➤ 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’. 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. ■ Operations management can either ‘make or break’ any business. Internally. Summary answers conclude the chapter. and aspects of performance. There are many individuals and groups doing the judging and there are many different aspects of performance on which the assessment is being made. ■ ■ Figure 2. performance objectives relate to the interests of the operation’s stakeholders. and an eBook – all at www. and society in general. So this chapter starts by illustrating how operations performance can impact on the success of the whole organization. quality is an important aspect of customer satisfaction or dissatisfaction. It is large and. suppliers. On our general model of operations management the topics covered in this chapter are represented by the area marked on Figure 2.com. operations seek to inﬂuence the speed with which goods and services are delivered.myomlab. we look at various perspectives on. represents the bulk of its assets. speed is an important aspect of customer service. it is important to understand how we can measure its performance.Making the most of this book and MyOMLab Check your understanding Each chapter opens with a set of Key questions to identify major topics. And if we want to understand the strategic contribution of the operations function. – produce different quantities or volumes of products and services (volume ﬂexibility). quality operations both reduce costs and increase dependability. in most businesses. thus saving the time and money that would otherwise be taken up in solving reliability problems and also giving stability to the operation. . Second.1. Externally. operations seek to inﬂuence the ﬂexibility with which the company produces goods and services. You can check your understanding of each chapter by taking the Sample tests of self-assessment questions on MyOMLab at www.com. speed both reduces inventories by decreasing internal throughput time and reduces risks by delaying the commitment of resources. ﬂexibility can: – produce new products and services (product/service ﬂexibility). dependability is an important aspect of customer service. They relate to the company’s responsibility to customers. dependability within operations increases operational reliability. operations seek to inﬂuence the dependability of the delivery of goods and services. audio and video downloads. 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. – produce a wide range or mix of products and services (mix ﬂexibility). operations seek to inﬂuence the quality of the company’s goods and services.com.myomlab. audio and video downloads. ➤ 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. Externally. ➤ 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. Finally. By ‘doing things fast’. shareholders. employees.myomlab. we examine how performance objectives trade off against each other. – produce products and services at different times (delivery ﬂexibility).1 This chapter examines operations performance ■ Check and improve your understanding of this chapter using self assessment questions and a personalised study plan. By ‘changing what they do’. ➤ How does the operations function incorporate all stakeholders objectives? ■ At a strategic level. Externally. Externally.
gold and silver. which will take out further productive time. In total.myomlab. If future demand is estimated to be 20 per cent platinum. Plot the results for different ﬂights and debate the ﬁndings. Technical scheduling difﬁculties might mean further lost time. The ﬁrst ﬁve categories of lost production occur as a consequence of reasonably unavoidable. It offers one level of service to all its customers and employs 30 staff. 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. 6 . The last ﬁve categories are unplanned. Different products will have different coating requirements. The department works a 220-day year on a 5-days-a-week basis. The actual capacity which remains. Such factors as quality problems. Not all of these losses are the operations manager’s fault. if it is. (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. Measured in hours of production. 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.com. the department processes 10. and the ratio of output to effective capacity are called. You can ﬁnd more practice problems as well as worked examples and guided solutions on MyOMLab at www. demand is 25 per cent of demand during the peak period which lasts between day 100 and day 150. Maintenance will need to be performed on the line. In other words. how much if you needed to ﬂy in 2 weeks.016 million square metres per week. consider the role of yield management.468(47%) effective capacity 109 hrs Consider how airlines cope with balancing capacity and demand. after such losses are accounted for. Do this by visiting the web site of a low-cost airline. Problems and applications at the end of the chapter allow you to apply these techniques. 1 actual output effective capacity 2 A local government ofﬁce issues hunting licences. The operation’s marketing vice-president has decided that in future the company will offer 3 standards of service. planned occurrences and amount to a total of 59 hours. 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. This means that the actual output of the line will be even lower than the effective capacity. and you can get more practice as well as guided solutions from the Study plan on MyOMLab at www. so the line will need to be stopped while it is changed over. losses and amount to 58 hours. 306 Part Three Planning and control Chapter 11 Capacity planning and control 331 Effective capacity Utilization Efﬁciency run continuously at its maximum rate. Between working days 0 and 100. respectively.000 applications per year. For the following operations. 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.myomlab. (a) A cinema (b) A doctor’s surgery (c) Waiting to board an aircraft. and avoidable. absenteeism and other avoidable problems will all take their toll. If an untrained temporary member of staff can only process 10 licences per day. The ratio of the output actually achieved by an operation to its design capacity. how much if you needed to ﬂy next week. is called the effective capacity of operation. how much would it cost if you needed to ﬂy tomorrow.com. machine breakdowns. The department has 2 permanent members of staff who are capable of processing 15 licence applications per day. and for a number of ﬂights price the fare that is being charged by the airline from tomorrow onwards. Worked example Suppose the photographic paper manufacturer has a coating line with a design capacity of 200 square metres per minute.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. and the line is operated on a 24-hour day. 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. how you would go about it.000 square metres. After 150 demand reduces to about 12 per cent of the demand during the peak period. etc. how many temporary staff should the department recruit between days 100 and 150? In the example above. if a new computer system is installed that allows experienced staff to increase their work rate to 20 applications per day. The current service is to be called ‘the gold service’.304(30%) design capacity 168 hrs actual output 51 hrs = = 0. 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. 7 days per week (168 hours per week) basis. platinum. and untrained staff to 15 applications per day. In particular. 70 per cent gold and 10 per cent silver service. 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. Design capacity is 200 × 60 × 24 × 7 = 2. they have occurred because of the market and technical demands on the operation. (a) does the department still need 2 permanent staff. apply the principles to minimize the perceived negative effects of queuing. The silver service is likely to require about 80 per cent of the time of the gold service. how many staff will be needed to fulﬁl demand? Look again at the principles which govern customers’ perceptions of the queuing experience.
a specialist supply chain solutions company. Press coverage generated an enormous interest which was reinforced by the product placement on several TV cookery and “lifestyle” programmes.’ Human resource management is also key in managing capacity. and some cheap ‘homeware’ items such as buckets and dustpans. from initial order to ﬁnal delivery. ‘Without the automation this plant simply couldn’t function. and to open up a new distribution network for them to serve upmarket stores. You realize how much you need this system when it breaks down! The other day. although further orders can be placed at any time during the day. I felt that this must also apply to homeware. the demand pattern for soft drinks is seasonal.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. sold under the ‘Focus’ brand name. This information is then fed to the Warehouse Management System and when hauliers arrive at the NDC. UK. ‘Our other sites around the country have different peaks and troughs throughout the year which helps us utilize employee numbers. In effect.’ (Jim Thompson. it can vary from 2. Not only is demand on the NDC seasonal in a general sense. by outsourcing the NDC management to Wincanton. distributes and sells over 1 billion litres of ready-to-drink soft drinks in around 400 different ﬂavours. ‘Experience in the decorative products industry had taught me the importance of fashion and product development. we can offer a distribution service which is tailored to their needs. Designed and built in collaboration with Wincanton. Robinsons. who had previously worked for a large retail chain of paint and wallpaper retailers. 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. Within a year of launching our ﬁrst new range of kitchen homeware under the “Concept” brand name. The price realization of Concept products is many times higher than for the Focus range. supported by appropriate promotion and features in lifestyle magazines. Britvic’s service policy of responding whenever customers want them to deliver has a dramatic impact on the NDC and its capacity planning. shapes and sizes. it has to ensure that 250. In many ways we are now a “business-to-business” company rather than a “business-to-consumer” company. we have less than a million cases per week’ (Distribution Manager). to making very high-quality (expensive) stylish homewares with a high ‘design value’. Annually. with distribution organized on a giant scale. However. Britvic produce enough cans of soft drinks to stretch three times around the world. Premium-priced colours and new textures would become popular for one or two years. where we expect over 200 trailers in and out each day – that equates to about 3 million cases per week. 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. Over the year Britvic distribute over 100 million cases. Finally.000-pallet ‘High Bay’ warehouse.500 cans a minute. Every year. From being an inward-looking manufacturer. the company had moved from making industrial mouldings. so it has to be a high-volume and high-speed business. This sort of business is likely to grow. provided with point-of-sale display facilities. Generally it was CDS’s design expertise which was attractive to ‘design house’ partners. All information. kitchen equipment and speciality retailers. which now manages Britvic’s NDC. Instinctively. so ﬂexibility and efﬁciency are the keys to success. Tango. even in mundane products such as paint. More signiﬁcantly. ‘Our busiest periods are during the summer and in the run-up to Christmas. We decided to develop a whole coordinated range of such items. and offer them a complete service of manufacturing and distribution. Most importantly is the use and development of technology both within the NDC and out in Britvic’s supply chain. Concept Design Services (CDS)) CDS had become one of Europe’s most proﬁtable homeware businesses. Most of our new business comes from the partnerships we have formed with design houses. they had also acquired a reputation for being able to translate difﬁcult technical designs into manufacturable and saleable ➔ . At the centre of its distribution network is a National Distribution Centre (NDC) located at Lutterworth. it is capable of holding up to 140 million cans in its 50. Every morning the shift manager receives orders for the day. the site is able to second employees from other Wincanton-owned sites when demand is high.350 pallets or nearly 4 million cans. Not only did CDS employ professionally respected designers.000 the next. That equates to 1. Given the lack of space in the High Bay. to 6. the Italian designers. The NDC uses a number of methods to cope with demand ﬂuctuation. To keep ahead we launched new ranges at regular intervals. handling up to 620 truckloads of soft drinks daily and. The move into ‘Concept’ products The move into higher-margin homeware had been masterminded by Linda Fleet. 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.myomlab. Aqua Libra. especially after Christmas.’ Source: Alamy/Adrian Sherratt customers (supermarkets).000 pallets one day. Furthermore.000 outlets in the UK receive their orders on time.’ The most successful collaboration was with Villessi. Its six UK factories contain factory lines producing up to 1. Originally founded in the 1960s.’ Source: Wincanton The move to the design house partnerships ‘Over the last four years. Loads are scanned at Britvic factories and fed into the ‘Business Planning and Control System’ that creates a schedule of receipts. From the customer’s point of view the distribution arrangements appear to belong to the design house itself. especially in Europe where the design houses appreciate our ability to offer a full service. The daily meetings also allow any problems to be addressed and dealt with before they become critical. 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. We can design products in conjunction with their own design staff and offer them a level of manufacturing expertise they can’t get elsewhere. we design products jointly with specialist design houses that have a well-known brand. Britvic bottles. manufacturing and distributing products for some of the more prestigious design houses. In the quiet periods. 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. warehouse and distribution resources. together with a national network of 12 depots.com. The order information allows the multi-skilled workforce to be allocated effectively. it is not possible to simply stock up for the busy periods. Purdey’s and J2O. we became a customer-focused “design and make” operation. a major player in a market consuming nearly ten billion litres a year. CDS’s Marketing Director. we have been designing. we had over 3000 retail outlets signed up. is held electronically. mainly in the aerospace sector. including brands such as Pepsi. Now we are an integrated service provider. CEO. In fact they are based exclusively on our own call centre. with short-term changes caused by both weather and marketing campaigns. data are passed over to the Movement Control System that controls the retrieval of pallets from the High Bay. 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. It is designed to operate 24 hours a day throughout the year. The manufacturers and retailers who created and supported these products were dramatically more proﬁtable than those who simply provided standard ranges.
Making the most of this book and MyOMLab xvii Take a different view Critical commentaries. A.com Site of the Institute of Outsourcing. Dell. You can get a ﬂavour of how location decisions are made. (2005) Offshoring Information Technology: Sourcing and Outsourcing to a Global Workforce. It shows three different operations. how can ‘controllers’ ever know what is supposed to happen? Their plans themselves are mere speculation. Upper Saddle River. show a diversity of viewpoint and encourage you to think critically about operations management. The tax advice service is somewhere in between.ac. McGraw-Hill Higher Education. but it cannot measure the full impact of its education on their future happiness. You can find the Useful websites in the Multimedia library of MyOMLab at www. full of complex and ambiguous interactions. (1998) International Facility Location and Acquisition Analysis.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. They are based on models used to understand mechanical systems such as car engines. A good textbook that covers both strategic and operations issues. 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 A2.2 per patient be a better deal? Visit sites on the Internet that offer (legal) downloadable music using MP3 or other compression formats. Michael Dell explains how his supply network strategy (and other decisions) had such an impact on the industry. the outputs from operations are not always easily measured. news items. but not a critical analysis! Schniederjans. together with Further reading and Useful websites at the end of each chapter. Some simple technology-dominated processes may approximate to it.000 per month and a charge per patient of A6 per patient scanned.com Exactly what the title implies. Furthermore. www. and Meindl. . for example.com More details on Intel’s ‘Copy Exactly’ strategy and other capacity strategy issues.bath. Some good case studies and some interesting reports. Also. (2006) The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring. yet organizations are political entities where different and often conﬂicting objectives compete. This is called the rope (see Figure 10. are overtly political.16 The drum. But. why not visit MyOMLab at www.locationstrategies. 167 5 Figure 10. In fact. 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. 6 Critical commentary Most of the perspectives on control taken in this chapter are simpliﬁcations of a far more messy reality. but many other operations do not. P. (2001) Supply Chain Management: Strategy. Prentice Hall. Vashistha.com American location selection site. www. Another topical book on outsourcing. Selected further reading Carmel. www.transparency. Good industry discussion. (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. Interesting and readable. Quorum Books. They are social systems.J.uk/crisps A centre for research in strategic purchasing and supply with some interesting papers. www.000 per week and a variable cost of A0. But anyone who has worked in real organizations knows that organizations are not machines.15 helps us to understand the basic functions of the monitoring and control activity. S. some operations never do the same thing more than once anyway. as the critical commentary box says. (with Catherine Fredman) (1999) Direct from Dell: Strategies that Revolutionized an Industry. E. Very much one for the technically minded.myomlab. www. A university may be able to measure the number and qualiﬁcations of its students. 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. The degree of difﬁculty in controlling operations The simple monitoring control model in Figure 10. while the child care service is particularly difﬁcult. buffer.myomlab. The food processing operation is relatively straightforward to control. Useful web sites www.16).org Lots of useful stuff. 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.intel. for example. Simple models such as these assume that operations objectives are always clear and agreed. it is a simpliﬁcation. Even the largest of burger bar chains does not know exactly how a new shift allocation system will affect performance. A. Consider the music business supply chain. Cambridge.outsourcing. An academic book on outsourcing. P. rope concept Therefore. etc. and Tjia.com.cpmway. even if it is possible to work out an appropriate intervention to bring an operation back into ‘control’.17 illustrates how these four questions can form dimensions of ‘controllability’. M. M. Local government operations. NJ. Harper Business London. 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. most operations cannot perfectly predict what effect the intervention will have. and Vashistha. New York. and (b) for a less well-known (or even largely unknown) artist struggling to gain recognition. Cambridge University Press. Most of the work done by construction operations is one-offs. www.opsman. Also. Planning and Operations.org A leading site for international business (including location) that ﬁghts corruption. Chopra. (a) for the recordings of a well-known popular music artist. The clinic currently charges A10 per patient for taking a scan. If every output is different.
public or private. changes in what we want to do at work. for proﬁt or not for proﬁt. This means we reﬂect the balance of economic activity between service and manufacturing operations. well structured and interesting treatment of operations management as it applies to a variety of businesses and organizations. Distinctive features Clear structure The structure of the book uses a model of operations management which distinguishes between design. at least part of their activities ‘operations’. But more than this. It is unambiguous in treating the operations function as being central to competitiveness. and so on. this text is: Undergraduates on business studies. It is at the centre of so many of the changes affecting the business world – changes in customer preference. which starts every chapter. More speciﬁcally. This makes. manufacturing or service. ● ● ● The aim of this book This book provides a clear. planning and control. Operations management is also challenging. ● ● ● ● ● ● Strategic in its perspective. the short cases that appear through the chapters. it is not conﬁned to the operations function. MBA students should ﬁnd that its practical discussions of operations management activities enhance their own experience. Comprehensive in its coverage of the signiﬁcant ideas and issues which are relevant to most types of operation. all explore the approaches taken by operations managers in practice. critical approach to the subject. All managers. The ‘Operations in practice’ feature. International in the examples which are used. It is concerned with creating the services and products upon which we all depend. whether that organization is large or small. Practical in that the issues and challenges of making operations management decisions in practice are discussed. And all organizations produce some mixture of services and products. Promoting the creativity which will allow organizations to respond to so many changes is becoming the prime task of operations managers. the pressures to be socially responsible. how we want to work. This is because they have realized that effective operations management gives the potential to improve both efﬁciency and customer service simultaneously. the increasing globalization of markets and the difﬁcult-todeﬁne areas of knowledge management. Thankfully. Who should use this book? Anyone who is interested in how services and products are created. Conceptual in the way it explains the reasons why operations managers need to take decisions. There has rarely been a time when operations management was more topical or more at the heart of business and cultural shifts.Preface Introduction Operations management is important. at times. manage processes and serve customers (internal or external). operations management is everywhere. . and improvement. The text provides both a logical path through the activities of operations management and an understanding of their strategic context. most companies have now come to understand the importance of operations. Operations management is also exciting. where we want to work. 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). There are over 120 descriptions of operations practice from all over the world. whether they are called Operations or Marketing or Human Resources or Finance. Around seventy-ﬁve per cent of examples are from service organizations and twenty-ﬁve percent from manufacturing. or whatever. It is they who must ﬁnd the solutions to technological and environmental challenges. Balanced in its treatment. changes in supply networks brought about by internet-based technologies. authoritative. and the case studies at the end of each chapter. Postgraduate students on other specialist masters degrees should ﬁnd that it provides them with a wellgrounded and.
There are also activities that support the learning objectives of the chapter that can be done individually or in groups. Critical commentaries Every chapter includes a set of problem type exercises. Useful websites Each chapter is summarized in the form of a list of bullet points. The nature of each further reading is also explained. This is why we have included ‘critical commentaries’ that pose alternative views to the one being expressed in the main ﬂow of the text. but have sufﬁcient content also to serve as the basis of case sessions. .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. Selected further reading Not everyone agrees about what is the best approach to the various topics and issues with operations management. These can be used to check out your understanding of the concepts illustrated in the worked examples. Problems and applications Operations management is a subject that blends qualitative and quantitative perspectives. Worked examples Every chapter includes a case study suitable for class discussion. ‘worked examples’ are used to demonstrate how both types of technique can be used. Because of this we have used examples and ‘boxed’ short cases which explain some issues faced by real operations. A short list of web addresses is included in each chapter for those who wish to take their studies further. These extract the essential points which answer the key question posed at the beginning of each chapter. Summary answers to key questions Every chapter ends with a short list of further reading which takes the topics covered in the chapter further. The cases are usually short enough to serve as illustrations.
please contact your local Pearson sales consultant at www. including algorithmically-generated quantitative values which make for a different problem every time.pearsoned.uk/replocator or visit www. A Homework feature. Using MyOMLab. and most importantly. .uk/slack to access these. practice key techniques and improve their problemsolving skills now accompanies the book. powerpoint slides and animated models with audio commentary.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. 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).co. including video. If you'd like to learn more or find out how MyOMLab could help you. you can take advantage of: ● ● ● ● A wide range of engaging resources. Instructor’s resources A completely new instructor’s manual is available to lecturers adopting this textbook. a new set of online resources to enable students to check their understanding. making the subject more relevant to every functional areas of the organization. Please contact your local Pearson Education Sales Consultant (www. This makes each chapter more compact. and to enable your students to study independently and at their own pace. Please see below for details of MyOMLab. A whole new chapter on Corporate Social Responsibility (CSR) has been added. In addition a new Operations in Practice DVD is now available. pearsoned. The book has been visually redesigned to aid learning. Hundreds of self-assessment questions.co. Finally. ● ● ● ● An even greater emphasis has been placed on the idea of ‘process management’. allowing you to assign work for your students to prepare for your next class or seminar.uk/ replocator) for further details and to request a copy. Visit 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. 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. together with PowerPoint presentations for each chapter and a Testbank of assessment questions. A Gradebook which tracks students' performance on sample tests as well as assessments of your own design.myomlab. 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. and provide an up-to-date selection of operations issues.pearsoned. and reﬂects a greater emphasis on this issue throughout the book.co.com.
they need not be studied in this order. which in reality are closely related. Therefore study the chapters in whatever sequence is appropriate to your course or your individual interests. The book makes full use of the many practical examples and illustrations which can be found in all operations. technology choice impacts on job design which in turn impacts on quality control. but many also come from journals. Most important of all. magazines and newspapers. yet we have treated these topics individually. in order to study them. Audio downloads. direct students’ learning. Making the most of this book All academic textbooks in business management are. self-contained. although the chapters follow a logical structure. The case exercises at the end of each chapter will require some more thought. to some extent. If you cannot answer these you should revisit the relevant parts of the chapter. For example.To the Student . borrow a book from the library or ride on public transport. 4. . 10 and 18 and the chapter summaries of selected chapters. if you choose. There are also examples which you can observe every day. 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 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)?. those students who wish to start with a brief ‘overview’ of the subject may wish ﬁrst to study Chapters 1. Visit the MyOMLab at www. But because each part has an introductory chapter. Video clips and short cases to illustrate operations management in action. Any book has to separate topics.com to find valuable teaching and learning material including: ● Self-assessment questions and a personalized Study Plan to diagnose areas of strength and weakness. Every chapter is. The case exercises and study activities are there to provide an opportunity for you to think further about the ideas discussed in the chapters. consider the operations management issues of all the operations for which you are a customer. Similarly with the sequence of topics. . 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. and improve results.myomlab. The same applies to revision – study the introductory chapters and summary answers to key questions. 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. Unlimited practice on quantitative techniques and solving problems. The ﬁrst hint therefore in using this book effectively is to look out for all the links between the individual topics. 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. Whenever you use a shop. Many of these were provided by our contacts in companies. ● ● ● . more or less. simpliﬁcations of the messy reality which is actual organizational life. eat a meal in a restaurant. When you have done this individually try to discuss your analysis with other course members.
and what they contribute to an organisation’s success. (a) First. Use the diagrams and models to describe some of the examples that are contained within the chapter.com). Use websites that you trust – we’ve listed some good websites at the end of each chapter and on MyOMLab. don’t get as good a grade as we really deserve. demonstrate your knowledge and understanding. The Short cases. Step 5 Research widely around the topic. and apply them wherever you can. and GOOD LUCK! Nigel Slack . 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. practice. Both the chapters of the book. Step 7 Always answer the question. You can also use the revision pod casts on MyOMLab. Step 2 Remember a few key models. but qualify this with a few well chosen sentences. Step 4 There’s always a strategic objective behind any operational issue. incorporate qualitative and quantitative material. you’re experiencing an opportunity to apply the principles of operations management. practice. really good! But. try following these simple steps: Step 1 Practice. and the exercises on MyOMLab. and Operations in practice pieces in the book. ‘Would a similar operation with a different strategy do things differently?’ Look at the Short cases. 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. allow you to develop ideas. show that you can discuss and analyse the issues critically. (b) Second. Case studies and ‘Operations in practice’ sections. Think ‘What is really being asked here? What topic or topics does this question cover?’ Find the relevant chapter or chapters. You’ll get more credit for appropriately mixing your methods: use a quantitative model to answer a quantitative question and vice versa. Case studies. So. you will pass with ﬂying colours! Step 9 Remember not only what the issue is about. Generally. if you are studying operations management. and you want a really good grade. Step 8 Take account of the three tiers of accumulating marks for your answers. Your new-found knowledge will stick in your memory. (c) Third. if you can do (a) you will pass.myomlab. I mean really. give you hundreds of different examples. show that you know how to illustrate and apply the topic. read on. and if you can do all three. Log on (www. You’ll get more credit for using references that come from genuine academic sources. combined with those on MyOMLab. and search the Key questions at the beginning of each chapter and the Summary at the end of each chapter to get you started. Make full use of the text and MyOMLab to ﬁnd out where you need to improve. while fairly good. if you can do (a) and (b) you will pass well. Ask yourself. Use the Study plan feature in MyOMLab and practice to master the topics which you ﬁnd difﬁcult. Every day.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. and enable you to get better grades. 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. Use the Key questions and the Problems and applications to check your understanding. there are plenty of us who. Use the Critical commentaries within the text to understand some of the alternative viewpoints. Step 6 Use your own experience.
His research is in the operations and manufacturing ﬂexibility and operations strategy areas. Service Superiority (with Robert Johnston). He also acts as a consultant to many international companies around the world in many sectors. management training and consultancy activities. graduating in mechanical engineering. As a specialist in service operations. published by Financial Times Prentice Hall. Professor of Manufacturing Strategy at Brunel University. published in 1993 by EUROMA and Cases in Operations Management (with Robert Johnston. leisure and manufacturing. he undertakes consultancy in a diverse range of industries and is co-author of several operations management books. He has authored numerous academic papers and chapters in books. performance measurement and service quality. published by Mercury Business Books. He continues to maintain close and active links with many large and small organizations through his research. Service Operations Management (with Graham Clark). 1991. 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. now in its 3rd edition (2008). numerous papers and case studies. In his mid-thirties and seeking a career change. Stuart Chambers and Christine Harland) third edition published by Financial Times Prentice Hall in 2003. and then worked in production and general management with companies including Tube Investments and the Marley Tile Company. where he has been since 1988. his research interests include service design. . as well as chapters in other texts. Previously he has been Professor of Service Engineering at Cambridge University. published by Routledge in 2003. He worked initially as an industrial apprentice in the hand-tool industry and then as a production engineer and production manager in light engineering. In addition to lecturing on a range of operations courses at the Business School and in industry. Robert Johnston is Professor of Operations Management at Warwick Business School and its Deputy Dean. He began his career as an undergraduate apprentice at Rolls Royce Aerospace. the second edition published by Financial Times Prentice Hall in 2008 and Perspectives in Operations Management (Volumes I to IV) also with Michael Lewis. He holds a Bachelor’s degree in Engineering and Master’s and Doctor’s degrees in Management. he studied for an MBA. 1991. He is the author or co-author of many books. Oxford. and Making Management Decisions (with Steve Cooke). Operations Strategy together with Michael Lewis. Alan Harrison. Stuart Chambers is a Principle Teaching Fellow at Warwick Business School. a University Lecturer in Management Studies at Oxford University and Fellow in Operations Management at Templeton College. He is the author of the market leading text. especially ﬁnancial services. This work enabled him to help executives develop the analyses.About the authors Nigel Slack is the Professor of Operations Management and Strategy at Warwick University. transport. including The Manufacturing Advantage. The Blackwell Encyclopedic Dictionary of Operations Management (with Michael Lewis) published by Blackwell in 2005. and then took up a three-year contract as a researcher in manufacturing strategy. service recovery. and is a chartered engineer. concepts and practical solutions required for them to develop manufacturing strategies. published by Prentice Hall. Several of the case studies prepared from this work have been published in an American textbook on manufacturing strategy. 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. He is the author of many books and papers in the operations management area.
Supply Network Solutions. Paul Coughlan. Hamilton. Finally. Denis Kehoe. Peter Race of Henley College. 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’. Charles Marais of the University of Pretoria. Harvey Maylor of Cranﬁeld University. Loughbrough University. Clive Buesnel of Xchanging. Ran Bhamra. Stratton of Nottingham Trent University. Oxford. Catherine Hart of Loughborough Business School. Adrian Morris of Sunderland University. and Shirley Johnston for case writing help and support. Reading University. Catherine Pyke and Nick Fudge of Lower Hurst Farm. Mary Walton is coordinator to our group at Warwick Business School. John Maguire of the University of Sunderland. Our academic colleagues in the Operations Management Group at Warwick Business School also helped. an heroic effort. Professor Roland van Dierdonck of the University of Ghent. Dan McHugh of Credit Swiss First Boston. Helen Walker. Michael Shulver. Nick Wake. Dr J. Hans Mayer and Tyko Persson of Nestlé. We are also grateful to many friends. Dan Chicksand. Tom Kegan of Bell College of Technology. Stephen Disney. Philippa Collins of Heriot-Watt University. We were lucky to receive continuing professional and friendly assistance from a great publishing team. In particular thanks for help with this edition goes to Philip Godfrey and Cormac Campbell and their expert colleagues at OEE. Chris Hillam of Sunderland University. Ian Sadler of Victoria University. Michael Purtill of Four Seasons Hotel Group. Dublin. Cranﬁeld University. Ian Holden of Bristol Business School. both by contributing ideas and by creating a lively and stimulating work environment.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. Her continued efforts at keeping us organized (or as organized as we are capable of being) are always appreciated. yet again. Exeter University. Colin Armistead of Bournemouth University. all six editions were organized. Richard Small. Martin Spring of Lancaster University. Amrik Sohal of Monash University. and Paul Walley. John Meredith Smith of EAP. Florida. John K Christiansen of Copenhagen Business School. Michael Milgate of Macquarie University. Norma Harrison of Macquarie University. Steve New. Zoe Radnor. David Evans of Middlesex University. Keith Gofﬁn. Cambridge University. Simon Croom. David Nichol of Morgan Stanley. Peter Norris and Mark Fisher of the Royal Bank of Scotland. Nottingham University. David Twigg of Sussex University. Alan Betts of ht2. Alex Skedd of Northumbria Business School. John Matthew of HSPG. Professor Sven Åke Hörte of Lulea University of Technology. but never more so than when we were engaged on ‘the book’. Chris Morgan. Dr Nelson Tang of the University of Leicester. Michaelis Giannakis. Helen Valentine of the University of the West of England. Also. Nigel Slack Stuart Chambers Robert Johnston . Mickey Howard. Carsten Dittrich.Acknowledgements During the preparation of the ﬁfth edition of this book. Our thanks go to everyone who attended these sessions and other colleagues. Doug Davies of University of Technology. Johan Linden of SVT. Peter Long of Shefﬁeld Hallam University. Bath University. Liverpool University. Keith Moreton of Staffordshire University. and Simon Topman of Acme Whistles. Trinity College Dublin. Matthias Holweg. Sydney. Andi Smart. Henrique Correa of Rollins College. Cardiff University. Paul Forrester of Keele University. Bart McCarthy. Ian Graham of Edinburgh University. David Garman and Carol Burnett of The Oakwood Partnership. Alan Harle of Sunderland University.A. Leigh Rix of The National Trust. and largely word processed by Angela Slack. Peter Burcher of Aston University. John Tyley of Lloyds TSB. University of San Diego. Dick Wheeler.C. Eamonn Ambrose of University College. Rhian Silvestro. It was. R. Especial thanks to Matthew Walker. Elizabeth Wright and Colin Reed. University of Southern Denmark. Tony Dromgoole of the Irish Management Institute. John Pal of Manchester Metropolitan University. Cranﬁeld University. Dr Ebrahim Soltani of the University of Kent. To Angela – our thanks. de Haan of Tilburg University. Oxford University. Bath University. Ruth Boaden of Manchester Business School. Brian Jefferies of West Herts College. Joanne Chung of Synter BMW. Roger Maull. Nicola Burgess. Exeter University. Dirk Pieter van Donk of the University of Groningen and Peter Worthington. Our thanks go to Jannis Angelis. Mike Lewis. colleagues and company contacts.
465 Alamy Images: Oleksandr Ivanchenko. 356 Howard Smith Paper Group. 234 Alamy Images: Ashley Cooper. 47 BBC Photo Library: Jeff Overs. 151 Getty Images: AFP.org (t). 122 Photographers Direct: Martin Karius. 207 Rex Features: Action Press. 178 Alamy Images: British Retail Photography. International Journal of Production Economics. Getty Images: Siri Stafford (tl). McGaughey. p. and we would appreciate any information that would enable us to do so. M. Golden Pixels/LLC (b). 649 Corbis: Ultraf.A. 440 Rex Features: Burger/Phanie.B. 113 Rex Features: Action Press. H.11 from ‘Strategies for implemeting JIT’ in Just in Time Manufacture IFS/Springer-Verlag (Voss. 43 Corbis: Bernardo Bucci. 1983). Stuart Pearce (b). Journal of Marketing. David Hoffman Photo Library (tl). 294 Courtesy of Arup. G. All other images © Nigel Slack. 387 Virgin Atlantic. 41 Alamy Images: David Hoffman Photo Library (tl). 317 Press Association Images: Orlin Wagner/AP. R. . Table S9. pp. 9 Rex Features: Brian Rasic. 61 Corbis: Thomas White (b). 46 Alamy Images: David Hoffman Photo Library. 68 Alamy Images: Rob Crandell. 410 Courtesy of SAP (UK) Limited. 309 British Airways. 273 Getty Images: AFP. American Marketing Association. 418 Corbis: Mark Cooper. 541 Getty Images.Acknowledgements xxv Publisher’s acknowledgements We are grateful to the following for permission to reproduce copyright material: 93 Getty Images: Burje/Triolo Productions (tr). 220 Photographers Direct: Andy Maluche. 2002). 185 –97 (Gunasekaran. 251 Getty Images: Williams & Hirakawa. 500 Alamy Images: Les Gibbons. A. 505 Alamy Images: Daniel Jones. 414 Alamy Images: Bon Appetit. 638 Photographers Direct: Awe Inspiring Images. 281 Alamy Images: Ian Miles/Flashpoint Pictures. 417 Alamy Images: A T Willett. 90 Getty Images. 230 Press Association Images: ECKEHARD SCHULZ/AP. and Nebhwani. Frank C. 292 Robert Wiseman Dairies. © 2003 Silicon Graphics.4 adapted from A conceptual model of service quality and implications for future research. 402 Press Association Images: JAVA/ABACA. Stuart Chambers and Robert Johnston Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional omissions. 7 Alamy Images: Chris Rout (c).2 adapted from Adapted from Barnes. 622 Getty Images: Paul Vismara. 499 Corbis: Eleanor Bentall. 213 Rex Features. 211 YO! Sushi: Jonathan Roberts. Heinz von Heyenaber (br). pp. 602 Rex Features: Action Press. 398 Getty Images: AFP. 92 Corbis: Construction Photography (cr). Figure 17. Used. Courtesy of Arup: (cr). 248 Getty Images. Rex Features: Per Lindgren (cl). 94 Alamy Images: Directphoto.A.E. 95 © The Royal Bank of Scotland Group plc. In some instances we have been unable to trace the owners of copyright material. 496 Four Seasons Hotels: Robert Miller. 458 Corbis: Jane-Philippe Arles / Reuters. Rex Features: Action Press (t). 107 Alamy Images: Michael Jones. 34 Rex Features: Jurgen Hasenkopf. Elsevier. 210 Corbis: Yiorgos Karahalis. 577 Alamy Images: Imagina Photography. A. Rex Features: Per Lindgren (bl). vol.. et al. 633 Rex Features: Design Pics Inc. Honda: (tr). 556 Rex Features: Charles Knight. 379 Getty Images: Getty Images News. 186 Cadbury World: (t). 642 Alamy Images: PSL Images. A. 548 Rex Features: Dan Tuffs. 341 Alamy Images: Van Hilversum. 147 Getty Images: AFP. 120 Getty Images. Tables Table 8. Fall. 139 Corbis: Gianni Giansanti /Sygma. Rex Features: Per Lindgren (cl). Corbis: Marijan Murat/epa (b). 298 Wincanton. Getty Images: AFP (b). 488 Corbis: Eric K K Yu. 162 Corbis: Jacques Langevin. 49. Figures Figure 15. 374 Alamy Images: Imagebroker. 74 Alamy Images: Bernhard Classen. 27 Alamy Images: Adrian Sherratt. Reviewed. 237 Alamy Images: David Hancock. 41–50 (Parasuraman. 385 TDG Logistics. 49 Alamy Images: Bildagentur-online (b). 430 Corbis: Denis Balihoudr. Rex Features: Richard Jones (cr). 572 Science Photo Library Ltd: Simon Fraser.. 145 Rex Features: Image Source. We would be pleased to insert the appropriate acknowledgement in any subsequent edition of this publication. Proceedings of the Southern Management Association Annual Meeting (Atlanta. 1985). 369 Alamy Images: Archive Berlin Fotoagentur GmbH. 592 Alamy Images: Dinodia Images. 44 Alamy Images: David Hoffman Photo Library (tl). 42 Alamy Images: David Hoffman Photo Library (cl). 8 ACME. Getty Images: David Sacks (b).1 after E-commerce and its impact on operations management. and Harrison. 310 Corbis: G Flayols /Photocuisine. 384 Corbis: Joes Luis Pelaez. Rex Features: Per Lindgren (bl). 33 Alamy Images: Craig Ingram. 75. 57 Alamy Images: Tim Graham. 87 Getty Images: AFP. Ulrich Perrey/epa (t). (1983) ‘Principles of Motion Economy: Revisited. 298. 216 Rex Features. Corbis: Claudio Peri/epa (br). 407 © RollsRoyce plc. Rex Features: Per Lindgren. C. 224 SVT Bengt O Nordin. 247 Corbis: Reuters. Inc. and Restored’.D. 14 Alamy Images: Alex Segre. Inc. 1987) Springer. Marri. 250 Rex Features: Voisin Phanie. 269 © BMW Group. 116 Alamy Images: Adrian Sherratt.. 475 Image courtesy of Silicon Graphics. 304 Alamy Images: Medical-on-Line. Photographs The publisher would like to thank the following for their kind permission to reproduce their photographs: 3 Alamy Images: Neil Cannon.
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