Modern production management: managing the operations functions

754 Pages·1977·63.95 MB·English

by  Elwood S. Buffa

Modern Production Management
ing the ion iti

Operations Function 5th Edition

ELWOOD S. BUFFA
Modern Production Management
‘The Wiley/Hamilton Series in Management and Administration
Elwood 8. Buffa, Advisory Editor University of California, Los Angeles

PRINCIPLES OF MANAGEMENT: A Modern Approach: Fourth Edition Henry H. Albers
OPERATIONS MANAGEMENT: Problems and Models, Third Edition_Elwood 8. Buffs
PROBABILITY FOR MANAGEMENT DECISIONS William R. King.

MODERN PRODUCTION MANAGEMENT: Managing the Operations Function, Fifth Edition
Elwood 8. Buia

CASES IN OPERATIONS MANAGEMENT: A Systems Approach
Richard 8, Rosenbloom

ORGANIZATIONS: Structure and Behavior, Volume I, Second Edition Joseph A. Litterer

umes 1. McKenney and

ORGANIZATIONS: Systems, Control and Adaptation, Volume Il Joseph A.

itterer
Multidimensional Approach Billy J. Hodge

MANAGEMENT AND ORGANIZATIONAL BEMAVIO)
and Herbert J. Johnson

MATHEMATICAL PROGRAMMING: Claude MeMillan

DECISION MAKING THROUGH OPERATIONS RESEARCH, Second Edition Robert J. Thierauf and
Robert C. Klekamp

QUALITY CONTROL FOR MANAGERS & ENGINEERS Elwood G. Kilpatrick
PRODUCTION Systems: Planning, Analysis and Control, Second Edition James L. Rigg:
SIMULATION MODELING: A Guide to Using Simscript Forrest P. Wyman

BASIC STATISTICS FOR BUSINESS AND ECONOMICS, Second Edition Paul G, Hoel and
Raymond J. Jessen

COMPUTER SIMULATION OF HUMAN mEHAvIOR John M. Dutton and William H. Starbuck

INTRODUCTION TO GAMING: Management Decision Simulations John G. H. Carlson and
Michael J. Misshauk

PRINCIPLES OF MANAGEMENT AND ORGANIZATIONAL REHAVIOR Burt K. Scanlan
COMMUNICATION IN MODERN ORGANIZATIONS George. and Patricia B. Vardaman
‘THE ANALYSIS OF ORGANIZATIONS, Second Edition Joseph A. Litterer

COMPLEX MANAGERIAL DECISIONS INVOLVING MULTIPLE opjecTIVEs Allan Easton
MANAGEMENT SYSTEMS, Second Edition Peter P. Schoderbek

ADMINISTRATIVE PoLicy: Text and Cases in the Policy Sciences
Richard M. Hodgetts and Max S. Wortman, Je.

THE ECONOMICS OF INTERNATIONAL BUSINESS R. Hal Mason, Robert R. Mille
and Dale R. Weigel

BASIC PRODUCTION MANAGEMENT Elwood S. Buffa

FUNDAMENTALS OF MANAGEMENT COORDINATION: Supervisor, Middlemanagers and
Executives Thomas A. Petit

QUANTITATIVE AUSINESS ANALYSIS David E. Smith
OPERATIONS MANAGEMENT: The Management of Production Systems Elwood S. Buffa
PERSONNEL ADMINISTRATION AND HUMAN RESOURCES MANAGEMENT Andrew F. Sikula

MANAGEMENT SCIENCE/OPERATIONS RESEARCH: Model Formulation and Solution Methods
Elwood S. Bulfa and James S. Dyer

MANAGEMENT PRINCIPLES AND PRACTICES Robett J. Thierauf, Robert Klekamp
and Daniel Geeding
Modern Production
Management

FIFTH EDITION
Managing the Operations Function

Elwood S. Buffa

University of California, Los Angeles

A Wiley/Hamilton Publication
John Wiley & Sons

Santa Barbara New York London Sydney Toronto
This book was set in 10 point Medallion by Dharma
Press and printed and bound by Kingsport Press.

Chuck Pendergast and Jean Varven supervised pro:
duction, Cover design by Tri-Arts. illustrations by
Graphics Two.

Copyright © 1977 by John Wiley & Sons. Inc.

Alll rights reserved. Published simultaneously
in Canada.

Library of Congress Cataloging in Publication Data

Buffa, Elwood Spencer, 1923-
Modern production management.

(The Wiley/Hamilton series in management and
administration)

Includes bibliographies.

1, Production management. L. Title.
T$195.B723 1977 658.5 76-44547

ISBN 0-471-11829-x.

‘No part of this book may be reproduced by
any means, nor transmitted, not translated
into a machine language without the written
permission of the publisher

ISBN 0-471-11829-x.

Printed in the United States of America.
w987654321

About the Author

Elwood S. Buffa is professor of management science and operations manage-
ment at the Graduate School of Management of the University of California,
Los Angeles. He received his B.S. and M.B.A. degrees from the University of
Wisconsin, and his Ph.D. from the University of California, Los Angeles. He
worked as an operations analyst at the Eastman Kodak Company before en-
tering the teaching profession, and has engaged in consulting activities in a
wide variety of settings during the past twenty years. He has served as assistant
dean and associate dean at the Graduate School of Management, Chairman of
UCLA's Academic Senate, and has held visiting appointments at IPSOA in
Turin, Italy, and at the Harvard Business School. Professor Buffa has published
many research papers in management science and operations management. He
is the author of other books published by Wiley and Wiley/Hamilton, including
OPERATIONS MANAGEMENT: The Management of Productive Systems;
OPERATIONS MANAGEMENT: Problems and Models; BASIC PRODUCTION
MANAGEMENT; and, coauthored with James S. Dyer, MANAGEMENT
SCIENCE/OPERATIONS RESEARCH: Model Formulation and Solution
Methods. In addition, Professor Buffa is advisory editor for the Wiley/Hamilton
series in management and administration. Currently, he serves on the board of
directors of On-Line Decisions, Incorporated.
Preface

The fifth edition of MODERN PRODUCTION MANAGEMENT: Managing the
Operations Function represents a major change from the previous editions, and
this is partially indicated by the addition of a subtitle. Previous editions in-
cluded material representing service and nonmanufacturing operations. How-
ever, the fifth edition represents a total reorganization, integrating into the
conceptual framework materials dealing with service and nonmanufacturing
operations throughout the book. There are two chapters that deal exclusively
with service and nonmanufacturing operations. Chapter 14 discusses the oper-
ations, planning, and control of such systems, and Chapter 15, “Work Shift
Scheduling,” deals with the important problems of manpower scheduling in
service operations, However, in most other chapters, service operations are
considered along with manufacturing. For example, Chapter 5 develops the
design of the service offered and its relationship with the productive system
design; Chapter 6 considers the decisions involving the location of service
operations; Chapter 8 integrates the layout of physical facilities for service
operations with similar problems in manufacturing; and Chapter 16 considers
the problems of defining the meaning of quality for services, and controlling
quality, along with manufacturing operations.

There are other significant changes in the fifth edition that have consider-
able importance. Chapter 3 develops the nature of systems concepts and their
importance for production/operations management somewhat beyond the
material found in the fourth edition. Chapter 4, “Analytical Methods in Pro-
duction/Operations Management,” presents a new framework for relating the
various analytical models. Chapter 5, “Design of Products and Services,” has
new important material on technological forecasting and its relationship to the
viii / PREFACE

design of productive systems. Chapter 6, “Distribution and Facility Locatio:
develops the problem of product distribution and presents new material on ware-
house location, as well as the new materials on the location of service operations
that we mentioned before. Chapter 7, “Processes and Job Design,” integrates
these two related topics within a new framework and in addition includes impor-
tant materials on sociotechnical systems. Chapter 9 on forecasting is now a sepa-
rate chapter and includes materials on causal methods as well as exponential
and adaptive forecasting methods. Chapter 11, “Inventories in the System,” is
now a separate chapter, and includes new materials on practical methods for
determining buffer stocks. Chapter 12, which deals with industrial operations
planning and control, combines materials that formerly were presented in two
chapters, and introduces substantial material on “Material Requirements Plan-
ning.” Finally, Chapter 16, “Maintaining System Reliability,” integrates the ma-
terials dealing with quality control and maintenance into a unified framework.

Even the appendixes dealing with analytical models have been revised thor-
oughly. Appendix A, “Cost Models,” combines materials that formerly occu-
pied two chapters. Appendix B, “Linear Programming,” presents substantially
modified material that emphasizes formulation, and the managerial uses of the
results of linear programming. In Appendix C, “Linear Programming—Distribu-
tion,” Vogel's approximation method for establishing an initial solution has
been added. In Appendix D, "Waiting Lines,” the material dealing with infinite
queues has been reorganized around a simple Poisson input model that accepts
any service time distribution. The materials dealing with the multiple-channel
case have been reorganized for problem solution through the use of a simple
table, and materials dealing with finite queues have been added. Finally, the
chapter end, Review Questions and Problems, have been revised thoroughly
throughout, in keeping with the book’s broader scope.
ACKNOWLEDGMENTS

A book of this length is necessarily based on a wide variety of sources. While I
have made original contributions in some specific areas of analysis and appli-
cation and in the conceptual framework, the bulk of the material on which
Modern Production Management is based comes from original work by scores
of colleagues throughout the country. The sources of these materials are cited
where the materials are discussed. I hope I have made no omissions.

Thave benefited greatly from reviews and comments on previous editions by
well-known professors, such as Robert Albanese of Texas A&M University;
William H. Bolen of Georgia Southern College; Robert W. Boling of the Uni-
versity of Tennessee; John D. Burns of DePaul University; Y. S, Chang of Boston
University; Norbert L. Enrick of Kent State University; George ]. Gore of the
University of Cincinnati; Gene K. Groff of Georgia State University; S. T. Hardy
of Ohio State University; Warren Hausman of the University of Rochester;
Roy Housewright of Western Illinois University; James L. McKenney of Harvard
University; William T. Newell of the University of Washington; J. A. Sargeant
of the University of Toronto; Richard J. Tersine of Old Dominion University;
and Thomas E. Vollmann of Indiana University.

I would like to thank Professor Gene K. Groff of Georgia State University
and Professor Alan Krigline of the University of Akron for their considerable
wisdom, good judgment, and suggestions in reviewing the final manuscript.
Professors Ronald J. Ebert of the University of Missouri-Columbia, James A.
Fitzsimmons of the University of Texas at Austin, Thomas E. Hendrick of the
University of Colorado, Jarrett Hudnall, Jr., of Louisiana Tech University, Terry
Nels Lee of Brigham Young University, D. Roman of George Washington
University, and John E. Van Tassel, Jr., of Boston College helped immeasurably
by reviewing parts of the manuscript and making suggestions.

‘The basic organization of the book retains the major division of materials into
the strategic managerial decisions, and the shorter-run managerial decisions of
operations planning and control. By placing the analytical materials in appen-
dixes, we have been able to cover the basic concepts of production/operations
management in sixteen substantive chapters. By placing the analytical chapters
in appendixes, we have enabled instructors to assign these chapters in whatever
sequence desired, or to not assign them if the instructors feel that students have
had adequate prior preparation.

Elwood S. Buffa
Pacific Palisades, California