Operations management

929 Pages·2018·81.84 MB·English

by  Stevenson, William J.

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Operations Management
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Operations Management
THIRTEENTH EDITION
William J. Stevenson
Saunders College of Business
Rochester Institute of Technology
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This book is dedicated to you.
OPERATIONS MANAGEMENT, THIRTEENTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2018 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2015, 2012, and
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Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 LWI 21 20 19 18 17
ISBN 978-1-259-66747-3
MHID 1-259-66747-2
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Library of Congress Cataloging-in-Publication Data
Names: Stevenson, William J., author.
Title: Operations management / William J. Stevenson, Saunders College of Business,
Rochester Institute of Technology.
Description: Thirteenth edition. | New York, NY : McGraw-Hill Education,
[2018] | Series: The McGraw-Hill series in operations and decision sciences
Identifiers: LCCN 2016052871| ISBN 9781259667473 (alk. paper) | ISBN 1259667472 (alk. paper)
Subjects: LCSH: Production management.
Classification: LCC TS155 .S7824 2018 | DDC 658.5--dc23 LC record available at
https://lccn.loc.gov/2016052871
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not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not
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mheducation.com/highered
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The McGraw-Hill Series in Operations
and Decision Sciences
Operations Management Harrison and Samson, Technology Simchi-Levi, Kaminsky, and Simchi-Levi,
Management, First Edition Designing and Managing the Supply
Beckman and Rosenfield, Operations,
Hayen, SAP R/3 Enterprise Software: An Chain: Concepts, Strategies, Case
SFtirrsatt Eegdyit:i oCnompeting in the 21st Century, Introduction, First Edition Studies, Third Edition
Hill, Manufacturing Strategy: Text & Sterman, Business Dynamics: Systems
Benton, Purchasing and Supply Chain
Management, Second Edition Cases, Third Edition Thinking and Modeling for Complex
World, First Edition
Hopp, Supply Chain Science, First Edition
Bowersox, Closs, Cooper, and Bowersox,
Stevenson, Operations Management,
Supply Chain Logistics Management, Jacobs, Berry, Whybark, and Vollmann,
Thirteenth Edition
Fourth Edition Manufacturing Planning & Control for
Supply Chain Management, Sixth Edition Swink, Melnyk, Cooper, and Hartley,
Brown and Hyer, Managing Projects: A
Team-Based Approach, First Edition Jacobs and Chase, Operations and Supply Managing Operations Across the Supply
Management: The Core, Fourth Edition Chain, Third Edition
Burt, Petcavage, and Pinkerton, Supply
Management, Eighth Edition Jacobs and Chase, Operations and Supply Thomke, Managing Product and Service
Management, Fifteenth Edition Development: Text and Cases, First
Cachon and Terwiesch, Operations
Edition
Management, First Edition Jacobs and Whybark, Why ERP? First
Edition Ulrich and Eppinger, Product Design and
Cachon and Terwiesch, Matching Supply
Development, Fourth Edition
with Demand: An Introduction to Larson and Gray, Project Management:
Operations Management, Third Edition The Managerial Process, Seventh Edition Zipkin, Foundations of Inventory
Cooper and Schindler, Business Research Leenders, Johnson, and Flynn, Purchasing Management, First Edition
Methods, Twelfth Edition and Supply Management, Fifteenth
Edition Quantitative Methods and Management
Finch, Interactive Models for Operations
and Supply Chain Management, First Olson, Introduction to Information Science
Edition Systems Project Management, Second Hillier and Hillier, Introduction to
Edition
Fitzsimmons, Fitzsimmons, and Bordoloi, Management Science: A Modeling
Service Management: Operations, Schroeder, Goldstein, Rungtusanatham, and Case Studies Approach with
Strategy, Information Technology, Eighth Operations Management: Contemporary Spreadsheets, Fifth Edition
Edition Concepts and Cases, Seventh Edition Stevenson and Ozgur, Introduction to
Gehrlein, Operations Management Cases, Seppanen, Kumar, and Chandra, Process Management Science with Spreadsheets,
First Edition Analysis and Improvement, First Edition First Edition
v
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Preface
The material in this book is intended as an introduction to the been added. The explanation of learning curve time reduction
field of operations management. The topics covered include has been simplified with a new diagram. Some older readings
both strategic issues and practical applications. Among the have been deleted, and new readings added on such topics as
topics are forecasting, product and service design, capacity fracking, mass customization of fast foods, and self-driving
planning, management of quality and quality control, inven- vehicles.
tory management, scheduling, supply chain management, and
Acknowledgments
project management.
My purpose in revising this book continues to be to provide I want to thank the many contributors to this edition. Review-
a clear presentation of the concepts, tools, and applications of ers and adopters of the text have provided a “continuously
the field of operations management. Operations management is improving” wealth of ideas and suggestions. It is encourag-
evolving and growing, and I have found updating and integrat- ing to me as an author. I hope all reviewers and readers will
ing new material to be both rewarding and challenging, particu- know their suggestions were valuable, were carefully consid-
larly due to the plethora of new developments in the field, while ered, and are sincerely appreciated. The list includes post-
facing the practical limits on the length of the book. publication reviewers.
This text offers a comprehensive and flexible amount
Robert Aboolian, California State University—San Marcos
of content that can be selected as appropriate for different
courses and formats, including undergraduate, graduate, and Pamela Barnes, Kansas State University
executive education. Greg Bier, University of Missouri
This allows instructors to select the chapters, or portions of
Gary Black, University of Southern Indiana
chapters, that are most relevant for their purposes. That flex-
Jeff Brand, Marquette University
ibility also extends to the choice of relative weighting of the
qualitative or quantitative aspects of the material and the order Cenk Caliskan, Utah Valley University
in which chapters are covered because chapters do not depend Cem Canel, University of North Carolina—Wilmington
on sequence. For example, some instructors cover project
Jen-Yi Chen, Cleveland State University
management early, others cover quality or lean early, etc.
Robert Clark, Stony Brook University
As in previous editions, there are major pedagogical fea-
tures designed to help students learn and understand the mate- Dinesh Dave, Appalachian State University
rial. This section describes the key features of the book, the Abdelghani Elimam, San Francisco State
chapter elements, the supplements that are available for teach-
Kurt Engemann, Iona College
ing the course, highlights of the eleventh edition, and sug-
Michael Fathi, Georgia Southwestern State
gested applications for classroom instruction. By providing
this support, it is our hope that instructors and students will Warren Fisher, Stephen F. Austin State University
have the tools to make this learning experience a rewarding Gene Fliedner, Oakland University
one.
Theodore Glickman, George Washington University
What’s New in This Edition Haresh Gurnani, University of Miami
Class preparation exercises are now available for all chapters Johnny Ho, Columbus State University
and chapter supplements. The purpose of these exercises is to Ron Hoffman, Greenville Technical College
introduce students to the subject matter before class in order Lisa Houts, California State University—Fresno
to enhance classroom learning. These exercises are available
Stella Hua, Western Washington University
in the Instructor’s Resource Manual. Special thanks to Linda
Brooks for her help in developing the exercises. Neil Hunt, Suffolk University
Some content has been rewritten or added to improve clar- Faizul Huq, Ohio University
ity, shorten wording, or update information. New material Richard Jerz, St. Ambrose University
has been added on supply chains (including a different, more
George Kenyon, Lamar University
realistic, way to conceptualize supply chains), as well as on
product life-cycle management, 3-D printing, drones, loca- Casey Kleindienst, California State University—Fullerton
tions, and other topics. New critical thinking exercises have John Kros, East Carolina University
vii
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viii Preface
Anita Lee-Post, University of Kentucky Community College; Matthew W. Ford, Northern Kentucky
Nancy Levenburg, Grand Valley State University University; Phillip C. Fry, Boise State University; Charles
A. Gates Jr., Aurora University; Tom Gattiker, Boise State
F. Edward Ziegler, Kent State University
University; Damodar Golhar, Western Michigan University;
Other contributors include accuracy checkers: Gary Black, Robert Graham, Jacksonville State University; Angappa
University of Southern Indiana, Michael Godfrey, Univer- Gunasekaran, University of Massachusetts at Dartmouth;
sity of Wisconsin at Oshkosh, and Richard White, Univer- Haresh Gurnani, University of Miami; Terry Harrison, Penn
sity of North Texas; Test Bank: Alan Cannon, University of State University; Vishwanath Hegde, California State Uni-
Texas at Arlington; PowerPoints: David Cook, Old Dominion versity at East Bay; Craig Hill, Georgia State University;
University; Data Sets: Mehdi Kaighobadi, Florida Atlantic Jim Ho, University of Illinois at Chicago; Seong Hyun Nam,
University; Excel Templates and ScreenCam tutorials: Lee University of North Dakota; Jonatan Jelen, Mercy College;
Tangedahl, University of Montana; Instructors Manual: Prafulla Joglekar, LaSalle University; Vijay Kannan, Utah
Michael Godfrey. State University; Sunder Kekre, Carnegie-Mellon Univer-
Special thanks goes out to Larry White, Eastern Illinois sity; Jim Keyes, University of Wisconsin at Stout; Seung-Lae
University, who helped revise, design, and develop interactive Kim, Drexel University; Beate Klingenberg, Marist College;
content in Connect ® Operations Management for this edition. John Kros, East Carolina University; Vinod Lall, Minnesota
Finally I would like to thank all the people at McGraw- State University at Moorhead; Kenneth Lawrence, New
Hill/Irwin for their efforts and support. It is always a pleasure Jersey Institute of Technology; Jooh Lee, Rowan University;
to work with such a professional and competent group of peo- Anita Lee-Post, University of Kentucky; Karen Lewis, Uni-
ple. Special thanks go to Dolly Womack, Senior Brand Man- versity of Mississippi; Bingguang Li, Albany State Univer-
ager; Michele Janicek, Lead Product Developer; Christina sity; Cheng Li, California State University at Los Angeles;
Holt and Ryan McAndrews, Product Developers; Harvey Yep Maureen P. Lojo, California State University at Sacramento;
and Kristin Bradley, Content Project Managers; Sandy Ludo- F. Victor Lu, St. John’s University; Janet Lyons, Utah State
vissy, Buyer; Matt Diamond, Designer; Shawntel Schmitt and University; James Maddox, Friends University; Gita Mathur,
Beth Thole, Content Licensing Specialists; and many others San Jose State University; Mark McComb, Mississippi Col-
who worked behind the scenes. lege; George Mechling, Western Carolina University; Scott
I would also like to thank the many reviewers of previous Metlen, University of Idaho; Douglas Micklich, Illinois
editions for their contributions. Vikas Agrawal, Fayetteville State University; Ajay Mishra, SUNY at Binghamton; Scott
State University; Bahram Alidaee, University of Mississippi; S. Morris, Southern Nazarene University; Philip F. Musa,
Ardavan Asef-Faziri, California State University at North- University of Alabama at Birmingham; Roy Nersesian,
ridge; Prabir Bagchi, George Washington State University; Monmouth University; Jeffrey Ohlmann, University of Iowa
Gordon F. Bagot, California State University at Los Angeles; at Iowa City; John Olson, University of St. Thomas; Ozgur
Ravi Behara, Florida Atlantic University; Michael Bendixen, Ozluk, San Francisco State University; Kenneth Paetsch,
Nova Southeastern; Ednilson Bernardes, Georgia Southern Cleveland State University; Taeho Park, San Jose State Uni-
University; Prashanth N. Bharadwaj, Indiana University of versity; Allison Pearson, Mississippi State University; Pat-
Pennsylvania; Greg Bier, University of Missouri at Columbia; rick Penfield, Syracuse University; Steve Peng, California
Joseph Biggs, Cal Poly State University; Kimball Bullington, State University at Hayward; Richard Peschke, Minnesota
Middle Tennessee State University; Alan Cannon, University State University at Moorhead; Andru Peters, San Jose State
of Texas at Arlington; Injazz Chen, Cleveland State Univer- University; Charles Phillips, Mississippi State University;
sity; Alan Chow, University of Southern Alabama at Mobile; Frank Pianki, Anderson University; Sharma Pillutla, T owson
Chrwan-Jyh, Oklahoma State University; Chen Chung, Uni- University; Zinovy Radovilsky, California State Univer-
versity of Kentucky; Robert Clark, Stony Brook University; sity at Hayward; Stephen A. Raper, University of Missouri
Loretta Cochran, Arkansas Tech University; Lewis Cooper- at Rolla; Pedro Reyes, Baylor University; Buddhadev Roy-
smith, Rider University; Richard Crandall, Appalachian State choudhury, Minnesota State University at Mankato; Narendra
University; Dinesh Dave, Appalachian State University; Scott Rustagi, Howard University; Herb Schiller, Stony Brook
Dellana, East Carolina University; Kathy Dhanda, DePaul University; Dean T. Scott, DeVry University; Scott J. Seipel,
University; Xin Ding, University of Utah; Ellen Dumond, Middle Tennessee State University; Raj Selladurai, Indiana
California State University at Fullerton; Richard Ehrhardt, University; Kaushic Sengupta, Hofstra University; Kenneth
University of North Carolina at Greensboro; Kurt Engemann, Shaw, Oregon State University; Dooyoung Shin, Minnesota
Iona College; Diane Ervin, DeVry University; Farzaneh State University at Mankato; Michael Shurden, Lander Uni-
Fazel, Illinois State University; Wanda Fennell, University of versity; Raymond E. Simko, Myers University; John Simon,
Mississippi at Hattiesburg; Joy Field, Boston College; Warren Governors State University; Jake Simons, Georgia Southern
Fisher, Stephen F. Austin State University; Lillian Fok, Uni- University; Charles Smith, Virginia Commonwealth Uni-
versity of New Orleans; Charles Foley, Columbus State versity; Kenneth Solheim, DeVry University; Young Son,
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Preface ix
Bernard M. Baruch College; Victor Sower, Sam H ouston James Walters, Ball State University; John Wang, Montclair
State University; Jeremy Stafford, University of North State University; Tekle Wanorie, Northwest Missouri State
Alabama; Donna Stewart, University of Wisconsin at Stout; University; Jerry Wei, University of Notre Dame; Michael
Dothang Truong, Fayetteville State University; Mike Umble, Whittenberg, University of Texas; Geoff Willis, University
Baylor University; Javad Varzandeh, California State Uni- of Central Oklahoma; Pamela Zelbst, Sam Houston State
versity at San Bernardino; Timothy Vaughan, University of University; Jiawei Zhang, NYU; Zhenying Zhao, University
Wisconsin at Eau Claire; Emre Veral, Baruch College; Mark of Maryland; Yong-Pin Zhou, University of Washington.
Vroblefski, University of Arizona; Gustavo Vulcano, New
York University; Walter Wallace, Georgia State University; William J. Stevenson
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