Essentials of Operations Management

353 Pages·2011·14.237 MB·English

by  Slack, Nigel;Brandon-Jones, Alistair;Johnston, Robert

Essentials of E
s
s Essentials of
e
OperatiOns ManageMent n
t
ia OperatiOns ManageMent
l
s
Nigel Slack Alistair Brandon-Jones Robert Johnston
o
f

O
Operations management is critical to the success of all organizations, no matter how large or small. It enables Nigel Slack
p
them to provide services and products that we all need; it is central to changes in customer preference,
e
networks of supply and demand, and developments in technology; and its responsibilities are fi nancial and Alistair Brandon-Jones
r
logistical, social and environmental. Whether at work or at home, we all experience and manage processes and
a
operations…
t Robert Johnston
i
O
n
Thousands of students worldwide have benefi tted from the expert approach of the s
market-leading text Operations Management. The ‘grand master’ authors now transfer
M
the same winning formula to this concise textbook, based on the bestselling Operations
a
Management and particularly aimed at those studying just the essentials of the subject.
n
• Focus on the sustainable and socially responsible imperatives of operations a
management. g
e
• Over fi fty cases and illustrations of real-life operations around the world.
M
• Greater emphasis on ‘process management’, making the discipline directly relevant
e
to all areas of an organization’s activity. n
t
• Worked examples to give you confi dence in applying qualitative and quantitative

problem-solving techniques.

S
l
a
c
k
Get exclusive access to online
B
resources in MyOMLab, which
r
will enable you to check a
n
your understanding, apply d
knowledge and techniques, o
n
and prepare for exams and
-
assessments – all in your own J
o
time and at your own pace. n
e
s
Just visit www.myomlab.com

to register. J
o
h
n
s
t
o
n
Access valuable online learning
resources at wwwwww..mmyyoommllaabb..ccoomm
www.pearson-books.com
Front cover image: © Getty Images
CVR_SLAC2424_01_SE_CVR.indd 1 05/04/2011 09:58
WELCOME TO
Essentials of
OPERATIONS MANAGEMENT
Operations Management is important, exciting, challenging, and everywhere
you 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 fi nd 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 Essentials of Operations Management is to give you a comprehensive
understanding of the key issues and techniques of operations management, and to
help you get a great fi nal 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
third chapter – these put you at the cutting edge.
● Use the Worked examples and Learning exercises 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 reading at the end of each chapter. The texts are
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!
● look up key terms in the online glossary (key terms are highlighted in red in the margins
of this book).
We want Essentials of Operations Management to give you what you need: a comprehensive
view of the key areas 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
Alistair Brandon-Jones
Robert Johnston
* P.S. In order to log in to MyOMLab, you’ll need to register with the access code found within the
access card included with this book or available to buy online at www.myomlab.com
Further reading in
OPERATIONS
MANAGEMENT
Take your study and interest in operations
management further with these leading
texbooks written by the same team of
expert authors.
Essentials of
OPERATIONS MANAGEMENT
Nigel Slack
Alistair Brandon-Jones
Robert Johnston
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.pearsoned.co.uk
First published 2011
© Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2011
The rights of Nigel Slack, Alistair Brandon-Jones and Robert Johnston to be identifi ed as
authors of this work have been asserted by them in accordance with the Copyright, Designs
and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, 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, Saffron House, 6 –10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affi liation with
or endorsement of this book by such owners.
Pearson Education is not responsible for the content of third party internet sites.
ISBN: 978-0-273-75242-4
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, Nigel.
Essentials of operations management / Nigel Slack, Alistair Brandon-Jones,
Robert Johnston.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-273-75242-4 (pbk.)
1. Production management. 2. Manufacturing processes. 3. Industrial management.
I. Johnston, Robert, 1953- II. Brandon-Jones, Alistair. III. Title.
TS155.S5617 2011
658.5--dc22
2011000808
10 9 8 7 6 5 4 3 2 1
15 14 13 12 11
Typeset in 10/12pt Minion by 35
Printed and bound by Rotolito Lombarda, Italy
Brief contents
Guide to ‘operations in practice’ examples and short cases ix
Making the most of this book and MyOMLab xii
Preface xvi
To the Instructor . . . xviii
To the Student . . . xix
Ten steps to getting a better grade in operations management xx
About the authors xxi
Acknowledgements xxii
1 Operations management 1
2 Operations strategy 25
3 Social, environmental and economic performance 44
4 The design of services and products 67
5 Process design 90
6 Location, layout and fl ow 118
7 Supply network management 137
8 Capacity management 167
9 Inventory management 196
10 Planning and control 223
11 Lean synchronization 246
12 Quality management 267
13 Operations improvement 289
Notes on chapters 315
Index 318

Contents
Guide to ‘operations in practice’ examples Trade-offs between performance objectives 62
and short cases ix Summary answers to key questions 64
Making the most of this book and MyOMLab xii Learning exercises 65
Preface xvi Want to know more? 66
To the Instructor . . . xviii Useful websites 66
To the Student . . . xix
Chapter 4
Ten steps to getting a better grade in
The design of services and products 67
operations management xx
About the authors xxi Introduction 67
Acknowledgements xxii Why is good design so important? 69
The stages of design – from concept to
Chapter 1 specifi cation 72
Operations management 1 The benefi ts of interactive design 83
Summary answers to key questions 87
Introduction 1
Learning exercises 88
What is operations management? 3
Want to know more? 88
Operations management is important in
Useful websites 89
all types of organization 5
The input–transformation–output process 9
Chapter 5
The processes hierarchy 13
Process design 90
Operations processes have different
Introduction 90
characteristics 17
What is process design? 91
The activities of operations management 21
Process types – the volume–variety effect
Summary answers to key questions 22
on process design 94
Learning exercises 23
Detailed process design 100
Want to know more? 24
Human implications for process design 112
Useful websites 24
Summary answers to key questions 116
Learning exercises 117
Chapter 2
Want to know more? 117
Operations strategy 25
Useful websites 117
Introduction 25
What is strategy and what is operations strategy? 27 Chapter 6
The ‘top-down’ and ‘bottom-up’ perspectives 30 Location, layout and fl ow 118
The market requirements and operations
Introduction 118
resources perspectives 32
The location of operations 120
The process of operations strategy 39
What is layout? 123
Summary answers to key questions 41
What is layout and what are the types used
Learning exercises 42
in operations? 131
Want to know more? 43
Workplace layout 133
Useful websites 43
Summary answers to key questions 134
Learning exercises 135
Chapter 3
Want to know more? 135
Social, environmental and
Useful websites 136
economic performance 44
Chapter 7
Introduction 44
Supply network management 137
Operations performance is vital for any
organization 46 Introduction 137
The fi ve operations performance objectives 51 The supply network perspective 139
viii Contents
Designing and managing supply networks 141 Enterprise resource planning (ERP) 240
Supply network design 144 Summary answers to key questions 243
Types of relationships in supply networks 148 Learning exercises 244
Supply network dynamics 155 Want to know more? 245
Improving supply networks 157 Useful websites 245
Summary answers to key questions 164
Learning exercises 165 Chapter 11
Want to know more? 166 Lean synchronization 246
Useful websites 166
Introduction 246
What is lean synchronization? 248
Chapter 8
The elimination of waste 252
Capacity management 167
Lean synchronization applied throughout the
Introduction 167 supply network 262
What is capacity management? 169 Summary answers to key questions 264
Measuring demand and capacity 171 Learning exercises 265
The alternative capacity plans 177 Want to know more? 265
Choosing a capacity management approach 185 Useful websites 266
Capacity planning as a queuing problem 189
Summary answers to key questions 193 Chapter 12
Learning exercises 194 Quality management 267
Want to know more? 195
Introduction 267
Useful websites 195
What is quality and why is it so important? 269
Diagnosing quality problems 271
Chapter 9
Conformance to specifi cation 273
Inventory management 196
Total quality management (TQM) 279
Introduction 196 Summary answers to key questions 286
What is inventory? 198 Learning exercises 287
Why is inventory necessary? 198 Want to know more? 287
The volume decision – how much to order 201 Useful websites 288
The timing decision – when to place
an order 212 Chapter 13
Inventory analysis and control systems 216 Operations improvement 289
Summary answers to key questions 220
Introduction 289
Learning exercises 222
Why improvement is so important 291
Want to know more? 222
Elements of improvement 291
Useful websites 222
Approaches to improvement 297
Improvement techniques 304
Chapter 10
Summary answers to key questions 312
Planning and control 223
Learning exercises 313
Introduction 223 Want to know more? 314
What is planning and control? 225 Useful websites 314
Supply and demand effects on planning
and control 226 Notes on chapters 315
Planning and control activities 231 Index 318
Guide to ‘operations in practice’ examples and
short cases
Chapter Location Company/example Region Sector/activity Company size
Chapter 1 p. 2 IKEA Global Retail Large
Operations p. 7 Acme Whistles UK Manufacturing Small
management p. 8 Oxfam Global Charity Large
p. 13 Pret A Manger Europe/USA Retail Medium
p. 18 Formule 1 Europe Hospitality Large
p. 19 Mwagusi Safari Lodge Tanzania Hospitality Small
Chapter 2 p. 26 Two operations strategies: Global/Europe Manufacturing service/ Large
Operations Flextronics and Ryanair transport
strategy p. 32 Giordano Asia Retail Large
p. 37 Amazon, what exactly is your Global Retail/business Large
core competence? services
p. 41 Sometimes any plan is better Europe Military Large
than no plan
Chapter 3 p. 45 A tale of two terminals Dubai and UK Transport Large
Social, p. 52 Lower Hurst Farm UK Agricultural Small
environmental p. 54 Accident recovery General Healthcare Medium
and economic p. 55 Dabbawalas hit 99.9999% India General service Large
performance dependability
p. 58 BBC Global Media Large
p. 59 Aldi Europe Retail Large
Chapter 4 p. 68 Airbus A380 Europe Aerospace Large
The design of p. 71 Dyson Global Design/manufacturing Large
products and p. 74 Square watermelons Japan Retail/Agriculture Various
services p. 76 Daniel Hersheson UK Hairdressing Small
p. 79 Art Attack! UK Media Small
Chapter 5 p. 91 McDonalds Global Quick service Large
Process design p. 93 Daimler-Chrysler, Smart car France Auto manufacturing Large
p. 112 Heathrow UK Transport Large
Chapter 6 p. 119 Tesco Global Retail Large
Location, p. 121 Tata Nano India Manufacturing Large
layout and flow p. 126 Surgery UK Healthcare Medium
p. 130 Cadbury UK Entertainment and Large
manufacturing
Chapter 7 p. 138 Dell Global Computer Large
Supply network manufacturing
management p. 143 Ford Motor Company Global Auto manufacturing Large
p. 147 Behind the brand names Taiwan Computer Large
manufacturing
p. 151 Northern Foods Europe Food services Large
p. 160 TDG Europe Logistics services Large
p. 161 Seven-Eleven Japan Japan Retail Large