Operations and Process Management: Principles and Practice for Strategic Impact (2nd Edition)

569 Pages·2008·26.13 MB·English

by  Nigel Slack

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Everyone manages processes...Everyone is an operations manager
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Written by best-selling authors in their fi eld, Operations and Process Management, Second Edition, inspires a critical
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and applied mastery of the core principles and processes fundamental to managing business operations.
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Approaching the subject from a truly managerial perspective, this brand new text provides clear and concise t
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coverage, whilst the fully updated accompanying CD provides an opportunity to practice and further explore the
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• A diagnostic approach equips you with the questions to effectively assess and improve the operations and I G
processes in your company. m
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• Cases in the main text provide an insight into the reality of managing operations. Interactive cases provide the
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opportunity to work through the decision-making process to solve operations problems.
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• An interactive study guide featuring video, animated diagrams, Excel spreadsheets and further examples T
provides practical guidance on core concepts and issues.
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This new edition has been updated throughout, including new chapter opening cases, extensive revision of the
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topical chapters on capacity management and lean sychronization, and clearer and fuller integration of the content
with the CD-ROM.
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www.pearson-books.com
an imprint of Front cover image: © Hideo Kurihara / Alamy
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OPERATIONS AND
PROCESS MANAGEMENT
You will find a CD contained within your copy of Operations
and Process Management, Second Edition, featuring a range
of additional resources. Each chapter contains the following
resources which allow you to consolidate understanding and
put the core principles into practice:
● Video of the author giving further guidance on key concepts and
questions.
● Active case –allows you to work through the decision-making process,
analysing issues, listening to different perspectives and answering
questions in relation to a real organizational situation.
● Study guideprovides practical guidance on core concepts and issues
discussed in the text. This features animated diagrams, further examples,
Excel spreadsheets and practice notes.
● Self-test materialprovides the opportunity to test your understanding and
assess progress.
● Hintson how to tackle the ‘Applying the principles’ examples in the text.
● Summary checklist –a downloadable list of the summary checklist found

at the end of each chapter.
● Operations principles –a downloadable list of all the operations
principles from each chapter.
● Flashcardsfor you to test your knowledge of key terms and phrases.
A CD icon in the left-hand margin of this book signals when you should
refer to your CD for additional resources.
Further information about the CD can be found in the CD guided tour
following the Preface and Guided tour of the book.
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We work with leading authors to develop the strongest
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thinking and best learning practice to a global market.
Under a range of well-known imprints, including
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and electronic publications which help readers to
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or at work.
To find out more about the complete range of our
publishing, please visit us on the World Wide Web at:
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A01_SLAC8512_02_SE_FM.QXD 10/30/08 2:39 PM Page iii
OPERATIONS AND
PROCESS MANAGEMENT
Principles and practice
for strategic impact
Second Edition
Nigel Slack
Stuart Chambers
Robert Johnston
Alan Betts
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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 2006
Second Edition published 2009
© Pearson Education Limited 2006, 2009
The rights of Nigel Slack, Stuart Chambers, Robert Johnston and Alan Betts to be identified
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 affiliation
with or endorsement of this book by such owners.
ISBN: 978-0-273-71851-2
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

Operations and process management : principles and practice for strategic impact /
Nigel Slack...[et al.]. —2nd ed.
p. cm.
ISBN 978-0-273-71851-2 (pbk. with cd)
1. Manufacturing processes. 2. Process control. I. Slack, Nigel. II. Title.
TS183.O64 2009
658.5—dc22
2008039182
10 9 8 7 6 5 4 3 2 1
12 11 10 09 08
Typeset in 9/12.5 pt Stone Serif by 71
Printed and bound by Rotolito Lombarda, Milan, Italy
The publisher’s policy is to use paper manufactured from sustainable forests.
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Brief contents
Guide to case studies in the book and on CD xii
Preface xv
Guided tour of the book xviii
Guided tour of the CD xx
About the authors xxiv
Acknowledgements xxv
1 Operations and processes 1
2 Operations strategy 33
3 Supply network design 65
4 Process design 1 – positioning 105
5 Process design 2 – analysis 135
6 Product and service design processes 179
7 Supply chain management 209
8 Capacity management 245
9 Inventory management 277
10 Resource p lanning and control 309
11 Lean synchronization 347
12 Quality management 383
13 Improvement 423
14 Risk and resilience 463
15 Project management 495
Index 531
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Contents
Guide to case studies in the book and on CD xii
Preface xv
Guided tour of the book xviii
Guided tour of the CD xx
About the authors xxiv
Acknowledgements xxv
1 Operations and processes 1
Executive summary 2
What is operations and process management? 4
Does the business take a process perspective? 9
Does operations and process management have a strategic impact? 19
Should all processes be managed in the same way? 21
Critical commentary 25
Summary checklist 27
Case study: AAF Rotterdam 28
Active case study: EleXon Computers 30
Applying the principles 30
Notes on chapter 32
Taking it further 32
Useful websites 32
2 Operations strategy 33
Executive summar y 34
What is operations strategy? 36
Does the operation have a strategy? 38
Does operations strategy make sense from the top and
the bottom of the business? 45
Does operations strategy align market requirements with operations
resources? 48
Does operations strategy set an improvement path? 53
Critical commentary 57
Summary checklist 58
Case study: Dresding Wilson 59
Active case study: Long Ridge Gliding Club 61
Applying the principles 62
Notes on chapter 63
Taking it further 63
Useful websites 64
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Contents vii
3 Supply network design 65
Executive summary 66
What is supply network design? 68
How should the supply network be configured? 72
Where should operations be located? 77
How much capacity should each operation in the supply network have? 80
Critical commentary 86
Summary checklist 87
Case study: Disneyland Resort Paris (abridged) 88
Active case study: Freeman Biotest 93
Applying the principles 93
Notes on chapter 94
Taking it further 95
Useful websites 95
Supplement: Forecasting 96
4 Process design 1 – positioning 105
Executive summary 106
What is process design–positioning? 108
Do processes match volume–variety requirements? 110
Are process layouts appropriate? 116
Is process technology appropriate? 121
Are job designs appropriate? 123
Critical commentary 127
Summary checklist 128
Case study: North West Constructive Bank – The New Mortgage Centre 1 129
Active case study: McPherson Charles Solicitors 132
Applying the principles 132
Notes on chapte r 133
Taking it further 133
Useful websites 134
5 Process design 2 – analysis 135
Executive summary 136
What is process design–analysis? 138
Are process performance objectives understood? 140
How are processes currently designed? 143
Are process tasks and capacity configured appropriately? 147
Is process variability recognized? 156
Critical commentary 161
Summary checklist 162
Case study: North West Constructive Bank – The New Mortgage Centre 2 163
Active case study: Action Response 167
Applying the principles 167
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viii Contents
Notes on chapter 169
Taking it further 169
Supplement: Queuing analysis 170
6 Product and service design processes 179
Executive summary 180
What is product/service design? 182
Are product/service design objectives specified? 185
Is the product/service design process defined? 188
Are the resources for developing products and services adequate? 193
Are product/service design and process design simultaneous? 196
Critical commentary 202
Summary checklist 203
Case study: Chatsworth – The adventure playground decision 204
Active case study: Getting Customer #1 205
Applying the principles 206
Notes on chapter 206
Taking it further 207
Useful websites 207
7 Supply chain management 209
Executive summary 210
What is supply chain management? 212
Are supply chain objectives clear? 215
How should supply chain relationships be managed? 222
How should the supply side be managed? 225
How should the demand side be managed? 230
Are supply chain dynamics under control? 232
Critical commentary 235

Summary checklist 237
Case study: Supplying fast fashion 238
Active case study: NK Fleet Management 240
Applying the principles 241
Notes on chapter 241
Taking it further 242
Useful websites 243
8 Capacity management 245
Executive summary 246
What is capacity management? 248
What is the operation’s current capacity? 251
How well are demand–capacity mismatches understood? 255
What should be the operation’s base capacity? 258
How can demand–capacity mismatches be managed? 260
How should capacity be controlled? 266
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Contents ix
Critical commentary 268
Summary checklist 269
Case study: Blackberry Hill Farm 270
Active case study: Fresh Salads Ltd 274
Applying the principles 275
Notes on chapter 276
Taking it further 276
Useful websites 276
9 Inventory management 277
Executive summary 278
What is inventory management? 280
Why should there be any inventory? 283
Is the right quantity being ordered? 286
Are inventory orders being placed at the right time? 294
Is inventory being controlled effectively? 297
Critical commentary 301
Summary checklist 303
Case study: supplies4medics.com 304
Active case study: Rotterdam Serum 305
Applying the principles 306
Notes on chapter 307
Taking it further 307
Useful websites 307
10 Resource planning and control 309
Executive summary 310
What is resource planning and control? 312
Does resource planning and control have all the right elements? 314
Is resource plan ning and control information integrated? 319
Are core planning and control activities effective? 323
Critical commentary 331
Summary checklist 332
Case study: subText Studios, Singapore 333
Active case study: Coburn Finnegan Accountants 336
Applying the principles 336
Notes on chapter 338
Taking it further 338
Useful websites 338
Supplement: Materials Requirements Planning (MRP) 339
11 Lean synchronization 347
Executive summary 348
What is lean synchronization? 350
What are the barriers to lean synchronization? 355