APICS Operations Management Body of Knowledge Framework

84 Pages·2008·2.02 MB·English

APICS

oPerAtIonS mAnAgement

body of knowledge
framework
APICS
Operations Management
Body of Knowledge
Framework
First Edition
APICS
Operations Management
Body of Knowledge Framework
Publication History
First Edition: 2008
Stock No. 01107
Copyright 2008 by APICS The Association for Operations Management
International Standard Book Number: 1-55822-200-6
All rights reserved. No part of this publication covered by the copyright herein may be reproduced or copied in any
form or by any means—graphic, electronic, or mechanical, including photocopying, taping, or information storage and
retrieval systems—without written permission of the publisher.
APICS The Association for Operations Management
8430 West Bryn Mawr Avenue, Suite 1000
Chicago, IL 60631-3439
[phone]
[phone]
apics.org
©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition
Table of Contents
Preface and Acknowledgments
Chapter 1
Introduction......................................................................................................................................1
1.1 Purpose of the Operations Management
Body of Knowledge (OMBOK) .............................................................................1
1.2 Operations Management Framework ..................................................................1
1.3 Overview of APICS Certification..........................................................................2
1.4 Relevance of Operations Management................................................................4
Chapter 2
Strategy....................................................................................................................................7
2.1 Operations Strategy..............................................................................................7
2.2 Supply Chain Strategy........................................................................................10
2.3 Operations Management Links to Other Functional Areas..............................13
2.4 Product/Service Design ......................................................................................17
2.5 Strategic Capacity...............................................................................................19
2.6 Project Management (Strategic Uses of Project Management) .........................20
Chapter 3
Supply Chain.........................................................................................................................21
3.1 Responsiveness, Agility, and Efficiency.............................................................21
3.2 Supply Chain Visibility, Synchronization,
and Bullwhip Minimization ...............................................................................21
3.3 Risk Management ..............................................................................................21
3.4 Locating Facilities ..............................................................................................22
3.5 Distribution .......................................................................................................22
3.6 Warehousing.......................................................................................................23
3.7 Logistics .............................................................................................................24
3.8 International Regulations .................................................................................26
3.9 Strategic Sourcing ..............................................................................................27
3.10 Customer Relationship Management (CRM) ...................................................29
3.11 Lean Management .............................................................................................30
Chapter 4
Processes...............................................................................................................................33
4.1 Process Mapping ...............................................................................................33
4.2 Manufacturing Process Environments .............................................................33
4.3 Service Processes ...............................................................................................36
4.4 Quality ................................................................................................................38
Chapter 5
Planning and Control............................................................................................................43
5.1 Enterprise Resources Planning (ERP)...............................................................44
5.2 Inventory: Dependent and Independent Demand ...........................................44
©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition iii
5.3 Master Planning.................................................................................................46
5.4 Demand Management and Forecasting.............................................................46
5.5 Sales and Operations Planning (S&OP) ............................................................49
5.6 Material Requirements Planning (MRP) ..........................................................52
5.7 Distribution Requirements Planning (DRP) ....................................................54
5.8 Inventory Management (Cycle Stock and Safety Stock) ...................................54
5.9 Inventory Models ...............................................................................................55
5.10 Vendor-Managed Inventory (VMI) ...................................................................57
5.11 Collaborative Planning, Forecasting,
and Replenishment (CPFR) ..............................................................................58
Chapter 6
Scheduling.............................................................................................................................59
6.1 Routing ..............................................................................................................59
6.2 Standards (Time Measurement) .......................................................................59
6.3 Scheduling Techniques ......................................................................................59
6.4 Master Production Schedule (MPS)
and Final Assembly Schedule (FAS) .................................................................59
6.5 Dispatching ........................................................................................................60
6.6 Queuing and Simulation....................................................................................60
6.7 Theory of Constraints (TOC) .............................................................................60
6.8 Service Scheduling (Days On/Days Off) ...........................................................61
6.9 Advanced Planning Systems (APS) ...................................................................61
6.10 Production Activity Control (PAC) ....................................................................61
6.11 Manufacturing Execution Systems Management .............................................61
Chapter 7
Project Management.............................................................................................................63
7.1 Project Organization and Leadership ...............................................................63
7.2 Planning Processes ............................................................................................63
7.3 Project Metrics....................................................................................................64
Chapter 8
Advanced Manufacturing and Service Technology..............................................................67
8.1 Information Technology.....................................................................................67
8.2 Automated Manufacturing.................................................................................68
8.3 Advanced Service Systems.................................................................................69
Chapter 9
Emerging Operations Technologies ......................................................................................71
9.1 Web Collaboration/E-Business...........................................................................71
9.2 Warehouse Management Systems (WMS) ........................................................71
9.3 Virtual Team Collaboration ...............................................................................72
9.4 Rapid Prototyping .............................................................................................72
i v ©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition
Preface
As a member of APICS since 1980, I’ve used APICS resources to drive supply chain
improvement. We ensured all planners at our company earned APICS certification, and we
distributed hundreds of copies of the APICS Dictionary to establish a common vocabulary
across our worldwide manufacturing plants.
A few years ago, I was asked to lead the program to drive improvement across Hewlett-
Packard’s operations. Upper management wanted us to provide tools for assessing our
effectiveness and improving all aspects of our organization. Further, they asked us to provide
a source for best practices in operations management. For this last request, I immediately
thought of APICS The Association for Operations Management.
Our company needed a way to find skilled practitioners, focused education, and relevant best
practices across the field of Operations Management. This need led to my involvement with
the APICS Body of Knowledge Professional Development Committee, first as an industry
advisor to the committee, then as a leader in the APICS Operations Management Body of
Knowledge (OMBOK) Framework project and chair of the committee.
The OMBOK framework promises to be the enabler for the answers being called for by
industry, academia, and our members. It is the Rosetta stone that will enable us to translate
the functional needs of the organization into the skills required by our members. It will link
members to the development sources—books and classes—that will help them develop those
specific skills. It will link to APICS’ current and future certification products that provide
evidence of our members’ skills.
Our vision for the OMBOK is to be an evolving entity. While the framework is presented here
in a particular hierarchy, we expect the material to be reorganized easily to meet different
needs. We expect it to take advantage of evolving information technology in the way the
information is created, maintained, presented, and used.
This first edition of the OMBOK framework is a milestone in the execution of this vision.
The creation of this framework involved hard work from dozens of APICS subject matter
experts. In addition, many APICS professional staff members contributed their valuable
talents in a variety of ways. I am grateful to these individuals at APICS; our combined efforts
enabled this idea to come to successful fruition.We present the OMBOK to others and look
forward to their contributions.
Daniel Castle, CFPIM, CIRM, CSCP
Chair, 2008 APICS Body of Knowledge Professional Development Committee
©2008 APICS The Association for Operations Management APICS OMBOK Framework, First Edition v
Preface
The APICS Operations Management Body of Knowledge (OMBOK) Framework project is
an excellent example of successful collaboration. The project began with the APICS Body
of Knowledge Professional Development Committee and expanded to include additional
practitioners and academicians. There were more than 450 topics in the original outline. The
committee and the editors collaborated to refine and edit the topics. We solved consistency
challenges to ensure the document’s usefulness for both the profession and the academic
community.
In July 2007, the editors and the committee met to answer a simple question, “What should
be included in the OMBOK?” APICS excels in the area of planning and control, but strategy,
logistics, and distribution also needed to be incorporated.
We gathered information for each of the outline topics. We conducted a Delphi study,
with more than 40 individuals completing the surveys. Domain experts were identified and
asked to write brief descriptions of the major items in the framework. The APICS Certified
in Production and Inventory Management and Certified Supply Chain Professional exam
committees reviewed the document for scope and to ensure it was consistent with the
content of the certification programs.
The OMBOK framework is an accessible and organized master document for APICS. It
completes the circle that already includes APICS core products—certifications, education,
industry content, and the APICS Dictionary—while also encompassing all of them. This
document is dynamic. It will take into account emerging practices, changing technologies,
and feedback from industry and academia. APICS’ position as the organization that holds the
intellectual leadership for the field of operations management is cemented by the publication
of the APICS Operations Management Body of Knowledge Framework. I am proud to be a
participant in this process.
F. Robert Jacobs, Ph.D.
Chase Faculty Fellow and Professor of Operations Management
Kelley School of Business
Indiana University
Bloomington, Indiana
vi
Acknowledgments
2007 APICS Body of Knowledge Peter W. Stonebraker, Ph.D., CFPIM
Professor of Operations Management
Professional Development
Northeastern Illinois University
Committee
Chicago, Illinois
Mary Moravec, CPIM, Chair; Daniel
Castle, CFPIM, CIRM, CSCP; Alan Section Authors
Dunn, CPIM; Karen Eboch, CSCP; Jim
Preston Blevins, CFPIM, CIRM, CSCP
Greathouse, CPIM; Gary Langenwalter,
CFPIM, CIRM; Peter W. Stonebraker, Bob Collins, CFPIM, CIRM, CSCP
Ph.D., CFPIM
Brian Dreckshage, CFPIM
Howard Forman, CIRM, CSCP
2008 APICS Body of
Richard Graff, CFPIM
Knowledge Professional
Anne Haberkorn, CFPIM, CIRM, CSCP
Development Committee
Rick Leach, CPIM, CSCP
Daniel Castle, CFPIM, CIRM, CSCP,
William R. Leedale, CFPIM, CIRM, CSCP
Chair; Alan Dunn, CPIM; Karen Eboch,
CSCP; Jim Greathouse, CPIM; F. Robert Daniel S. Marrone, Ph.D., CFPIM, CIRM
Jacobs, Ph.D.; Erik Larson, Ph.D.; Ted
Susan A. Neff, CPIM, CIRM, CSCP
Lloyd, CPIM; Sibyl Melin, CPIM, CIRM,
CSCP; Peter W. Stonebraker, Ph.D., John S. Newlyn, CFPIM, CIRM, CSCP
CFPIM; Chad Stricklin; Jack Swaim Fran Scher, Ph.D.
Joseph Schriever, CIRM, CSCP
OMBOK Subcommittee
Donald Sheldon, CFPIM, CIRM, CSCP
Daniel Castle, CFPIM, CIRM, CSCP
Stephen Shiffer
Chair, Body of Knowledge Professional
Joseph Walden, CFPIM
Development Committee
Process Excellence Program Manager Timothy Wilson, CFPIM, CIRM, CSCP
Imaging & Printing Group
Editors
Hewlett-Packard
Palo Alto, California Daniel Castle, CFPIM, CIRM, CSCP;
F. Robert Jacobs, Ph.D.
Karen Eboch, CSCP
Reviewers
APICS BGSU Chapter Faculty Advisor
Department of Management Karen Eboch, CSCP; Fran Scher, Ph.D.;
Bowling Green State University Peter W. Stonebraker, Ph.D., CFPIM;
Bowling Green, Ohio Roly White, CFPIM, CIRM, CSCP
F. Robert Jacobs, Ph.D.
Chase Faculty Fellow
Professor of Operations Management
Kelley School of Business
Indiana University
Bloomington, Indiana
vii

CHAPTER 1
Introduction
1.1 Purpose of the Operations Management
Body of Knowledge (OMBOK)
The Operations Management Body of Knowledge outlines the areas of knowledge
required to successfully manage the processes for producing and delivering products
and services. The descriptions give an overview of each area and, when taken together,
define a generally accepted view of the scope of Operations Management as a field of
study. As Operations Management is a dynamic field, the OMBOK describes the cur-
rent common perceptions surrounding it and will evolve over time to reflect changing
perceptions and incorporate new approaches as their usage becomes prevalent.
1.1.1 Scope of Operations Management
Operations Management focuses on the systematic direction of the processes involved
in the sourcing, production, and delivery of products and services. It calls for a holis-
tic or systems view of the processes that have a major impact on the costs required to
operate a business. It assumes that many technical aspects of operation, particularly
details related to engineering, may be handled by specialists. The concepts apply to
the complete chain of activities in the production and delivery of products and ser-
vices, including those that cross commercial and geographical boundaries. These con-
cepts are applicable to nonoperations fields such as marketing, finance, and informa-
tion technology—although this is not the primary focus of this document.
1.1.2 Taxonomy of Major Proven Concepts and Tools
The OMBOK includes only the basic concepts and tools that are in common use. Con-
cepts and tools that are starting to enter common usage may be listed as Emerging
Operations Technologies in the framework. (See Section 9.) Additionally, there are
many other significant concepts, tools, and techniques used in specific areas or indus-
tries that may only be noted tangentially.
1.1.3 A Systems View of the Components of Operations Management
Producing products and delivering services both involve a complex series of transfor-
mational processes. Operations Management coordinates these individual processes.
Management decisions generally consist of long-range strategic, intermediate-term
tactical, and short-term operational and control decisions. The long-range strategic
decisions are typically the focus of upper-level operations executives, while the inter-
mediate- and short-term operations decisions relate to mid- and entry-level line and
staff functions within the firm.
1.2 Operations Management Framework
The OMBOK is organized according to a high-level framework that represents the
areas of concern for the typical operations executive. This framework offers a conve-
nient way to view the scope of the area; it is not intended to be used as an outline for
APICS OMBOK Framework, First Edition 1