Operations Management, 3rd Edition provides a clear and accessible introduction to this important area of study, focusing on all key areas of operations in both manufacturing and service industries. Features: O Focuses on the subject from a European perspective. O Deals with the management of the creation of goods and the delivery of services to the customer. O Covers the main areas of operations strategy, the design of operations system and the management of operations over time. O Incorporates more strategic and international commentary. O Includes a strategy link section consisting of a paragraph relating each chapter topic to operations strategy. O Includes more end of chapter and quantitative exercises. O Cases have been updated throughout and now include: Service including public sector, international, a mix of mini-cases and a longer case for each chapter.
About the Author xv Preface xvi Acknowledgements xvi Content xvii A Guide for Students xvii Online Resources xviii Lecturer Resources xviii New for the Th ird Edition xviii PART ONE INTRODUCTION 1 Chapter 1 Introduction 3 Introduction 3 What is operations management? 4 Th e history of operations management 5 Th e role of operations management 7 Th e process view of operations 8 Service operations management 10 Th e strategic role of operations 14 Technology and operations management 14 Case Studies 1.1 First Bank PLC 15 1.2 Manufacturing s Decline Partly Due to Services Shift 16 1.3 A Student s Perspective 17 Chapter 2 Operations Strategy 22 Introduction 22 What is strategy? 23 Judging the contribution of operations to strategy 25 Measuring the contribution of operations to strategy 27 Operations strategy approaches 33 Operations strategy alignment 36 Operations strategy formulation 37 Operations strategy implementation 45 Case Studies 2.1 Findus 25 2.2 Gecko 30 2.3 Operations Strategy in Action 32 2.4 Texon 35 2.5 Pure Gym 49 PART TWO DESIGN 53 Chapter 3 Process Types 55 Introduction 56 Manufacturing process types 56 Service process types 59 Matching process type with volume and variety 62 Choosing a process type 63 Case Studies 3.1 Ashburton Products 65 3.2 Democracy Made with Personalised Products 66 3.3 Th e Mini 68 Chapter 4 Layout Types and Layout Design 71 Introduction 71 Layout types 72 Layout design 80 Case Studies 4.1 Line Balancing in a Manufacturing Plant 88 4.2 M&S 91 Chapter 5 Facility Design: Supply, Capacity and Location 96 Introduction 97 Supply network design 97 Long-term capacity planning 102 Facility location 108 Location selection techniques 112 Case Studies 5.1 IoD Advocates Space Hub to Lift Economy 101 5.2 Th e Supply Chains that Could Bind Unsuspecting Managers 106 5.3 Moving Textile Manufacturing Overseas 112 5.4 Mom-and-Pop Companies Face Struggle for Survival 118 5.5 Coca-Cola 120 Chapter 6 Process Technology 125 Introduction 126 Process technology for materials 126 Process technology for information 130 Process technology for customers 135 Choosing process technology 136 Case Studies 6.1 Spencer Davis Engineering 127 6.2 Kennedys 134 6.3 Retail Applications of Transaction Processing Systems by Sainsbury s 138 6.4 RFID American Apparel 139 Chapter 7 Product and Service Design 143 Introduction 144 Developing product and service designs 144 Th e relationship between product/service design and process design 145 Th e design process 145 Service design 155 Improving design 157 Case Studies 7.1 Product Development at Fracino 155 7.2 Benugo 157 7.3 Wine-on-the-go 166 Chapter 8 Process Design 170 Introduction 170 Steps in process design 171 Tools for process design 173 Case Studies 8.1 Why the Bunker Mentality has become a Corporate Liability 182 8.2 Designing a Custody-of-Prisoner Process at a Police Force 184 8.3 F1 Pitstop 188 Chapter 9 Job and Work Design 192 Introduction 193 Behavioural aspects of job design 193 Physical aspects of job design 200 Work study 201 Case Studies 9.1 Innocent 197 9.2 Keep up Motivation Levels through Long Summer Days 198 9.3 Design Space: A more ergonomic earphone 201 9.4 Experience Curves 209 9.5 Th e Creative Space 210 PART THREE MANAGEMENT 215 Chapter 10 Operations Planning and Control 217 Introduction 218 Operations planning 218 Operations control 220 Optimized production technology (OPT) 231 Case Studies 10.1 Workforce Scheduling at a Police Communications Centre 227 10.2 Car Mechanics Ltd 229 10.3 Using Workforce Scheduling to Lower Labour Costs 235 10.4 Ocado 235 Chapter 11 Capacity Management 240 Introduction 241 Measuring demand 241 Measuring capacity 243 Reconciling capacity and demand 246 Evaluating alternatives and making a choice 251 Appendix: Forecasting 257 Case Studies 11.1 Lloyds Cameras Cut Time in Queues 256 11.2 Queuing Th eory 267 11.3 Glastonbury 269 Chapter 12 Inventory Management 274 Introduction 275 Types of inventory 275 Managing inventory 278 Th e ABC inventory classifi cation system 280 Inventory models 281 Implementing inventory systems 291 Case Studies 12.1 Pandora: Box is wide open 278 12.2 Retail: Knowing your stock is the key to a busy shop 279 12.3 Vauxhall 292 Chapter 13 Lean Operations 296 Introduction 297 Th e philosophy of lean operations 297 Lean techniques 302 Lean in service systems 312 Implementing lean operations 314 Case Studies 13.1 Quake Upsets Lean Supply Model 300 13.2 Satair 302 13.3 Goodwin Steel Castings 308 13.4 How Much Waste is there in the Service Industry? 313 13.5 It Pays to Cut Out Waste but Not to Trim All the Value Away 315 13.6 Harley-Davidson 317 Chapter 14 Enterprise Resource Planning 320 Introduction 321 Enterprise resource planning (ERP) systems 321 Customer Relationship Management (CRM) systems 326 Resource planning 327 Materials requirements planning 329 Manufacturing resource planning (MRP II) 334 Distribution requirements planning (DRP) 335 Case Studies 14.1 ERP: A convincing case must be made before investment 325 14.2 Th e Challenge of Changing Everything at Once 336 14.3 Lambton Clothing Co. 337 Chapter 15 Supply Chain Management 341 Introduction 342 Supply chain design 343 Activities in the supply chain 355 Case Studies 15.1 BASF and Aker Kvaerner 351 15.2 Supplier Evaluation at EADS 359 15.3 Chance & Hunt 362 15.4 Amazon A Virtual Supply Chain 368 Chapter 16 Project Management 371 Introduction 372 Project management in the organization 372 Project management activities 375 Network analysis 378 Case Studies 16.1 Project Management: Lessons can be learned from successful delivery 373 16.2 Fast Homes Courtesy of Prefabrication 390 16.3 Th e Orbit Tower 391 Chapter 17 Quality 397 Introduction 398 De fi ning quality 398 Measuring quality 401 Improving quality 404 Methodologies for quality improvement 406 Six Sigma quality 410 Statistical process control (SPC) 414 Acceptance sampling 425 Case Studies 17.1 Growth with Values 409 17.2 Adventures in Six Sigma: How the Problem-solving Technique Helped Xerox 412 17.3 A Disciple of Japanese Quality Management 431 17.4 Yell 433 17.5 Mouse Bread 434 Chapter 18 Performance Measurement and Improvement 439 Introduction 440 How do we measure performance? 440 Where should we improve performance? 445 How do we improve performance? 447 Case Studies 18.1 Activity-Based Costing at a Police Service 443 18.2 In the Age of the Smart Machine 453 18.3 Managers Disrupt Learning with their Great Ideas 453 18.4 Process Improvement at a UK Police Service 456 18.5 GOSH and F1 461 Glossary 465 Index 475
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