Part 1
INTRODUCTION 3
Chapter 1 Operations management 4
Introduction 4
What is operations management? 6
Operations management is important in all types of organization 8
The input–transformation–output process 13
The process hierarchy 18
Operations processes have different characteristics 23
What do operations managers do? 26
Summary answers to key questions 30
Case study: Design house partnerships at Concept
Design Services 31
Problems and applications 34
Selected further reading 34
Useful websites 35
Chapter 2 Operations performance 36
Introduction 36
Operations performance is vital for any
organization 38
Why is quality important? 46
Why is speed important? 47
Why is dependability important? 49
Why is flexibility important? 52
Why is cost important? 55
Trade-offs between performance objectives 60
Summary answers to key questions 62
Case study: Operations objectives at the
Penang Mutiara 64
Problems and applications 65
Selected further reading 66
Useful websites 67
Chapter 3 Operations strategy 68
Introduction 68
What is strategy and what is operations strategy? 70
The ‘top-down’ and ‘bottom-up’ perspectives 73
The market requirements and operations resources perspectives 77
How can an operations strategy be put together? 86
Summary answers to key questions 89
Case study: Long Ridge Gliding Club 91
Problems and applications 92
Selected further reading 93
Useful websites 93
Part 2
DESIGN 95
Chapter 4 Process design 96
Introduction 96
What is process design? 97
What objectives should process design have? 98
Process types – the volume–variety effect on process design 101
Detailed process design 109
Summary answers to key questions 120
Case study: The Action Response Applications Processing Unit (ARAPU) 121
Problems and applications 123
Selected further reading 124
Useful websites 124
Chapter 5 Innovation and design in services and products 125
Introduction 125
How does innovation impact on design? 127
Why is good design so important? 130
The stages of design – from concept to specification 131
What are the benefits of interactive design? 141
Summary answers to key questions 147
Case study: Chatsworth – the adventure playground decision 148
Problems and applications 150
Selected further reading 150
Useful websites 151
Chapter 6 Supply network design 152
Introduction 152
The supply network perspective 153
Configuring the supply network 155
Where should an operation be located? 160
Long-term capacity management 168
Break-even analysis of capacity expansion 174
Summary answers to key questions 175
Case study: Disneyland Resort Paris (abridged) 176
Problems and applications 180
Selected further reading 182
Useful websites 182
Supplement to Chapter 6
Forecasting 183
Introduction 183
Forecasting – knowing the options 183
In essence forecasting is simple 184
Approaches to forecasting 185
Selected further reading 190
Chapter 7 Layout and flow 191
Introduction 191
What is layout? 193
The basic layout types 193
What type of layout should an operation choose? 200
How should each basic layout type be designed in detail? 204
Summary answers to key questions 217
Case study: North West Constructive Bank (abridged) 218
Problems and applications 220
Selected further reading 222
Useful websites 222
Chapter 8 Process technology 223
Introduction 223
Operations management and process technology 225
What do operations managers need to know about process technology? 225
How are process technologies evaluated? 237
How are process technologies implemented? 242
Summary answers to key questions 246
Case study: Rochem Ltd 247
Problems and applications 249
Selected further reading 249
Useful websites 250
Chapter 9
People, jobs and organization 251
Introduction 251
People in operations 253
Human resource strategy 253
Organization design 256
Job design 259
Allocate work time 271
Summary answers to key questions 273
Case study: Service Adhesives try again 274
Problems and applications 276
Selected further reading 277
Useful websites 277
Supplement to Chapter 9
Work study 279
Introduction 279
Method study in job design 279
Work measurement in job design 282
Part Three
DELIVER – PLANNING AND CONTROLLING OPERATiONS 287
Chapter 10 The nature of planning and control 288
Introduction 288
What is planning and control? 290
The effect of supply and demand on
planning and control 293
Planning and control activities 299
Controlling operations is not always routine 314
Summary answers to key questions 316
Case study: subText Studios,
Singapore (abridged) 317
Problems and applications 320
Selected further reading 321
Useful websites 321
Chapter 11 Capacity management 322
Introduction 322
What is capacity management? 324
How is capacity measured? 326
Coping with demand fluctuation 334
How can operations plan their capacity level? 343
How is capacity planning a queuing problem? 348
Summary answers to key questions 353
Case study: Blackberry Hill Farm 354
Problems and applications 358
Selected further reading 360
Useful websites 360
Supplement to Chapter 11
Analytical Queuing Models 361
Introduction 361
Notation 361
Variability 361
Incorporating Little’s law 363
Types of queuing system 363
Chapter 12
Inventory management 368
Introduction 368
What is inventory? 370
Why should there be any inventory? 372
How much to order – the volume decision 376
When to place an order – the timing decision 388
How can inventory be controlled? 392
Summary answers to key questions 398
Case study: supplies4medics.com 400
Problems and applications 401
Selected further reading 402
Useful websites 402
Chapter 13
Supply chain management 404
Introduction 404
What is supply chain management? 406
The activities of supply chain management 409
Single- and multi-sourcing 413
Relationships between operations
in a supply chain 419
How do supply chains behave in practice? 424
How can supply chains be improved? 426
Summary answers to key questions 433
Case study: Supplying fast fashion 434
Problems and applications 437
Selected further reading 438
Useful websites 438
Chapter 14
Enterprise resource planning (ERP) 439
Introduction 439
What is ERP? 440
How did ERP develop? 441
Implementation of ERP systems 449
Summary answers to key questions 451
Case study: Psycho Sports Ltd 452
Problems and applications 454
Selected further reading 455
Useful websites 455
Supplement to Chapter 14
Materials requirements planning (MRP) 456
Introduction 456
Master production schedule 456
The bill of materials (BOM) 458
Inventory records 459
The MRP netting process 459
MRP capacity checks 461
Summary 463
Chapter 15
Lean synchronization 464
Introduction 464
What is lean synchronization? 465
How does lean synchronization
eliminate waste? 471
Lean synchronization applied throughout the supply network 484
Lean synchronization compared with other approaches 486
Summary answers to key questions 489
Case study: The National Tax Service (NTS) 490
Problems and applications 492
Selected further reading 493
Useful websites 494
Chapter 16
Project management 495
Introduction 495
What is project management? 497
How are projects planned and controlled? 500
What is network planning? 514
Summary answers to key questions 526
Case study: United Photonics Malaysia Sdn Bhd 527
Problems and applications 531
Selected further reading 532
Useful websites 533
Chapter 17 Quality management 534
Introduction 534
What is quality and why is it so important? 536
How can quality problems be diagnosed? 540
Conformance to specification 541
Achieving conformance to specification 541
Total quality management (TQM) 548
Summary answers to key questions 556
Case study: Turnround at the Preston plant 557
Problems and applications 559
Selected further reading 560
Useful websites 560
Supplement to Chapter 17
Statistical process control (SPC) 562
Introduction 562
Control charts 562
Variation in process quality 563
Control charts for attributes 568
Control chart for variables 569
Process control, learning and knowledge 573
Summary 574
Selected further reading 574
Useful websites 574
Part Four
IMPROVEMENT 577
Chapter 18 Operations improvement 578
Introduction 578
Why is improvement so important in operations management? 580
The key elements of operations improvement 584
The broad approaches to managing improvement 588
What techniques can be used for improvement? 598
Summary answers to key questions 603
Case study: GCR Insurance 605
Problems and applications 608
Selected further reading 609
Useful websites 609
Chapter 19 Risk management 610
Introduction 610
What is risk management? 612
Assessing the potential causes of and
risks from failure 613
Preventing failure 624
How can operations mitigate the effects of failure? 631
How can operations recover from the effects of failure? 632
Summary answers to key questions 635
Case study: Slagelse Industrial
Services (SIS) 636
Problems and applications 638
Selected further reading 638
Useful websites 639
Chapter 20 Organizing for improvement 640
Introduction 640
Why the improvement effort needs organizing 642
Linking improvements to strategy 643
What information is needed for improvement? 645
What should be improvement priorities? 652
How can organizational culture affect improvement? 657
Key implementation issues 659
Summary answers to key questions 664
Case study: Re-inventing Singapore’s
libraries 666
Problems and applications 667
Selected further reading 668
Useful websites 668
Part 5
CORPORATE SOCIAL RESPONSIBILITY 671
Chapter 21 Operations and corporate social responsibility (CSR) 672
Introduction 672
What is corporate social responsibility? 674
The wider view of corporate social responsibility 679
How can operations managers analyse CSR issues? 686
Summary answers to key questions 689
Case study: CSR as it is presented 690
Problems and applications 691
Selected further reading 691
Useful websites 691
Notes on chapters 693
Glossary 700
Index 713
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