Operations Management

944 Pages·2011·184.398 MB·English

by  William J Stevenson

Operations Management
eleventh edition
William J. Stevenson
This book is dedicated to you.
MANAGEMENT

United States.

1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2 1
ISBN 978-0-07-352525-9
MHID 0-07-352525-1
Vice president and editor-in-chief: Brent Gordon
Stewart Mattson
Publisher: Tim Vertovec
Executive editor: Richard T. Hercher , Jr.
Executive director of development: Ann Torbert
Managing development editor: Gail Korosa
Vice president and director of marketing: Robin J. Zwettler
Marketing director: Brad
Marketing manager: Katie
Vice president of editing, design, and production: Sesha
Senior project manager: Bruce Gin
Buyer II: Debra R. Sylvester
Interior designer: Laurie J.
Keri Johnson
Photo researcher: Bill Van Werden
Lead media project manager: Kerry Bowler
Media project Ron Nelms
Cover design: © Design Pics/Bilderbuch
10/12 Times New Roman
Compositor: Private Limited
R. R. Donnelley
Library of Congress Cataloging-in-Publication Data
Stevenson, William J.
Operations management / William J. Stevenson.—11th ed.
p. cm.

ISBN-13: 978-0-07-352525-9 (alk. paper)
ISBN-10: 0-07-352525-1 (alk. paper)
1. Production management. I. Title.
TS155.S7824 2012
2010051901
The McGraw-Hill/Irwin Series
Operations and Decision Sciences
Operations Management Hill, Manufacturing Strategy: Text & Business Dynamics: Systems
Cases, Third Edition or a Complex
Operations
World, F irst Edition
Strategy: Competing in the 21 st Century, Hopp, Supply Chain Science, First Edition
First Edition Factory Physics, Stevenson, Operations Management,
Eleventh Edition
Benton, P urchasing and Supply Chain Third Edition
Management, Second Edition Jacobs, Berry, ybark, and V Swink, Melnyk, Cooper, and Hartley,
Managing Operations Across the Supply
Bowersox, Closs, and Cooper, Supply Manufacturing Planning & Control for
Chain, First Edition
Chain Logistics Management, Third Supply Chain Management, Sixth Edition
Edition Jacobs and Chase, Operations and Supply Thomke, Managing Pr
Development: Text and Cases, First
Brown and Hyer, Managing Projects: Management: The Core, S econd Edition
Edition
A Team-Based Approach, First Edition Jacobs and Chase, Operations and Supply
Ulrich and Eppinger, P roduct Design and
Burt, Petcav Supply Chain Management, Thirteenth Edition
Development, Fourth Edition
Management, Eighth Edition Jacobs and ybark, Why ERP? F irst
Cachon and T Matching Supply Edition Zipkin, F ventory
Management, First Edition
with Demand: An Introduction to Johnson, Leenders, and Fl Purchasing
Operations Management, Second Edition and Supply Management, F ourteenth
Quantitative Methods and Management
Finch, I nteractive Models for Operations Edition
Science
and Supply Chain Management, First Larson and Gray, Project Management:
Edition The Managerial Process, F ifth Edition Hillier and Hillier, I ntroduction to
Management Science: A Modeling and
F Ser Olson, Introduction to Information Sys-
Case Studies Appr ead-
Management: Operations, Strategy, tems Project Management, S econd Edition
sheets, Fourth Edition
Information Technology,

Stevenson and Ozgur, I ntroduction to
Gehrlein, Operations Management Cases, Operations Management: Contemporary
Management Science with Spreadsheets,
First Edition Concepts and Cases, Fifth Edition
First Edition
Har Technology Simchi-Le , and Simchi-Levi,
Management, First Edition Designing and Managing the Supply
Hayen, prise Software: Chain: Concepts, Strategies, Case
An Introduction, First Edition Studies, Third Edition
iii

Preface
T he material in this book is intended as an introduction to the • New material and more emphasis have been devoted to
field of operations management. The topics covered include these topics:
both strategic issues and practical applications. Among the
Service
topics are forecasting, product and service design, capacity
Supply chain management
ven-
Ethical conduct
y chain management, and
project management.
Step-by-step problem solving
My purpose in revising this book continues to be to provide
• Linear programming is now a chapter rather than a chap-
a clear presentation of the concepts, tools, and applications
ter supplement, to allo xibility on when and
of the field of operations management. Operations manage-
where it is used.
ment is evolving and growing, and I have found updating and
integrating new material to be both rewarding and challeng- • There is added emphasis on ethics in every chapter.
ing, particularly due to the plethora of new developments in • Throughout the text, there are new, updated readings and
the f hile facing the practical limits on the length of the photos to provide students with a motivating view of the
book. y.
• Availab Video/DVD series V
This Eleventh Edition Contains a vations in operations at
companies such as Zappos.com, Xerox, Burton Snow-
Considerable Amount of Material . . .
boards, F
much more than one could hope to cover in a single semes-
ter. However, there is also considerab
Acknowledgments
what material to cover. This allows instructors to select the
chapters, or portions of chapters, that are most relevant for I w er the
their purposes. xibility also extends to the choice of recent editions, reviewers and adopters of the text have provided
relative weighting of the qualitative or quantitative aspects of a “continuously improving” wealth of ideas and suggestions. It
the material. is encouraging to me as an author. I hope all reviewers and
A s in previous editions, there are major pedagogical features w their suggestions were valuable, were care-
y appreciated. The list includes
ey features of the book, the chapter post-publication reviewers, focus group participants, and man-
elements, the supplements that are available for teaching the uscript reviewers: Vikas Agrawal, F ay ville State Univer-
course, highlights of the eleventh edition, and suggested appli- sity; Bahram Alidaee, University of M ississippi; Chen Chung,
Univ t Clark, Stony Brook Univ
is our hope that instr ve the tools to Kathy Dhanda, DePaul Univ ver-
e this learning e warding one. sity of North Carolina at Greensboro; W isher, Stephen
F. Austin State Univ xel Univ
Jooh Lee, Rowan Univ , San Jose State Uni-
What’s New in This Edition
v Univ w,
This edition has been revised to incorporate and integrate Oregon State University; Michael Shurden, Lander Univ
changes in the field of Operations Management, and the John Simon, Governors State Univ Y
many suggestions for improvement receiv uctors ge; Timothy Vaughan, Univ Wiscon-
around the world who are using the text. The following are sin at Eau Claire; Pamela Zelbst, Sam Houston State Univer-
key among the revisions: sity; Tekle W thw v .
Other contributors included accuracy checkers: Michael
• The sequence of chapters has been changed to improve
Godfrey, University of W osh and Pamela
w.
Zelbst, Sam Houston State University; T Alan
• A tutorial has been added on working with the normal C annon, University of Texas at Arlington; Power Points:
distribution. David Cook, Old Dominion University; Data Sets: Mehdi
• A list of key points has been added to ev . Kaighobadi, Florida Atlantic University; Excel Templates and
v
vi
Preface
Tangedahl, University of Montana; Univ J im Keyes, University of Wisconsin at Stout; Beate
Instructors Manual: Michael Godfre amela Zelbst. Klingenber
ho v Vinod Lall, Minnesota State Univ
helped design and develop content in Connect™ Operations K wrence, New Jersey Institute of T gy; Anita
Management y Richardson of Southern Lee-Post, University of K wis, University of
Polytechnic State Univ ho created Guided Examples Albany State University; Cheng Li,
and Shyam Jha, Univ Arizona, Nancy Lambe, Uni- California State University at Los . Lojo,
versity of South Alabama, and Andrew Manikas, University California State University at Sacramento; F. Victor Lu, St.
of W osh, who designed the new assignable s University; Janet Lyons, Utah State University; James
interactive applications. Maddox, F versity; Mark McComb, Mississippi
F inally I would like to thank all the people at McGra College; George Mechling, W v
t. It is always a pleasure to Scott Metlen, Univ
work with such a professional and competent group of people. State Univ Aja
, Executive Editor; Gail Scott S. Mor n Nazarene University; Philip F.
Korosa, Managing Developmental Editor; Bruce Gin, Project Musa, University of Alabama at Bir
Manager; Debra Sylvester, Buyer II; Katie et- Nam, University of North Dakota; Roy Nersesian, Monmouth
y Bowler and Univ versity of St. Thomas; y
eri Johnson, Photo O hlmann, Univ wa at Iowa City;
Research and many others who worked “behind the scenes.” Francisco State University; Kenneth Paetsch, Cleveland State
I would also lik y reviewers of previ- Univ Taeho Park, San Jose State University; Allison
utions. v Asef-F Pearson, Mississippi State Univ P enf
v Nor Prabir Bagchi, Syracuse University; Steve Peng, California State Univ
George Washington State University; Gordon F. Bagot, at Ha eschke, Minnesota State University at
California State Univ vi Behara, Moorhead; u Peters, San Jose State Univ
Atlantic Univ M ichael Bendixen, Nova Southeastern; Phillips, Mississippi State Univ
versity; Prashanth Univ Towson University; Zino
N. Bharadw v ania; Greg Bier, Rado , California State University at Hayward; Stephen
University of Missouri at Columbia; Joseph Biggs, Cal Poly A. Raper, University of Missouri at Rolla; Pedro Reyes,
State University; Kimball Bullington, Middle Tennessee State Baylor University; Buddhadev Roychoudhury, Minnesota
University; Alan University of Texas at Arlington; State University at Mankato; ward Uni-
veland State University; A lan Chow, Univer- v , Stony Brook Univ T
n Alabama at Mobile; DeVry Univ . Seipel, Middle Tennessee State
State University; Tech Univer- University; Raj Selladurai, Indiana University; D ooy
v R ichard Crandall, Shin, Minnesota State Univ ymond E.
Appalachian State Univ Dinesh Dave, Appalachian Simko, Myers University; Jake Simons, Geor
State University; Scott Dellana, East Carolina Univ Xin University; Charles Smith, Virginia Commonwealth Uni-
Ding, University of Utah; v v V ictor Sower,
v K Sam Houston State University; Jerem versity of
v azel, Illinois State Univ Alabama; wart, University of Wisconsin at
W anda Fennell, Univ g; J oy Stout; Dothang Truong, Fayetteville State University; M ike
F Boston College; Lillian Fok, Univ w Orleans; Umble, Baylor Univ Javad Varzandeh, California State
Charles Foley, Columbus ge; Matthew University at San Bernardino; V College;
W. F v , Boise Mark Vroblefski, University of Arizona; Gustavo Vulcano,
v A. Gates Jr., Aurora University; Tom New York University; Walter Wallace, Georgia State Uni-
, Boise State University; Damodar Golhar, W v James Walters, Ball State University; Wang,
Michig v ville State Uni- Montclair State Univ Jerry Wei, Univ
versity; v Dame; Michael g, University of Texas; Geoff
at Haresh Gurnani, University of Miami; Terry Willis, University of Central Oklahoma; Jiawei Zhang,
Har enn State University; Vishwanath Hegde, Zhenying Zhao, University of Maryland; Yong-Pin Zhou,
State University at East Bay; Craig Hill, Georgia State Univer- University of Washington.
versity of Illinois at Chicago; Jonatan Jelen,
Mercy Colle glekar, LaSalle Univ ijay
v gie-Mellon William J. Stevenson
Walkthrough
MAJOR STUDY AND LEARNING FEATURES

Examples with Solutions

EXAMPLE 7

SOLUTION
Solved Problems

Problem 1

Solution

Excel Spreadsheet
Solutions
CHAPTER ELEMENTS

Chapter Outlines

1
Introduction to
Operations
Management
CHAPTER

2 Competitiveness, Strategy and
Productivity
3 Forecasting
45 PSrtoradtuecgti ca nCda pSaecrvitiyc eP lDanensiignng for
Products and Services
6 PLaroycoeusts Selection and Facility
78 WLoocarkt iDone sPilgann nainndg Maneda sAunraelmyseinst
9 Management of Quality
10 Quality Control
11 AScghgeredgualitneg Planning and Master
12 MRP and ERP
13 Inventory Management
14 JIT and Lean Operations
15 Supply Chain Management
16 Scheduling LEARNING OBJECTIVES
17 Project Management 5
18 Management of Waiting Lines
19 Linear Programming 1 6
2
7
3
8

4
Opening Vignettes

Learning Objectives
Figures and Photos

FIGURE 2.2

Icons

S

S