Operations management

713 Pages·2010·22.812 MB·xxv, 686 p. : col. ill\713

by  Nigel Slack, Robert Johnston, Chambers Stuart

Operations management is important, exciting, challenging … and sixth
everywhere you look!
edition
Operations management is critical to the success of all organisations, no matter how large or
O
small. It enables them to provide services and products that we all need; it is central to changes
in customer preference, networks of supply and demand, and developments in technology; and
p
its responsibilities are fi nancial and logistical, social and environmental. Whether at work or at
home, we all experience and manage processes and operations ...
e
r
a
So, let the ‘grand master’ authors of Operations Management paint a vivid picture
of what you need to know in this digitally-enhanced 6th edition of the market-leading t
text.
i
Benefi t from an unmatched clarity on areas such as: O
• Focus on the sustainable and socially responsible imperatives of operations
n
management
• Over 120 cases and illustrations of real-life operations, from fast fashion at Zara s
and technology subcontracting in China to European agriculture and safari tours
in Tanzania
M
• Greater emphasis on ‘process management’, making the discipline directly
sixth edition
relevant to all areas of an organisation’s activity
a
• Worked examples to give you confi dence in applying quantitative and qualitative
n OperatiOns ManageMent
problem-solving techniques
a
g
Nigel Slack
And get exclusive access to e
online resources in MyOMLab Stuart Chambers
M
which will enable you to check
your understanding, apply Robert Johnston
e
knowledge and techniques,
n
and prepare for exams and
assessments – all in your own
t
time and at your own pace.

Just visit www.myomlab.com
and register using the access Slack
code included with this book.
Chambers
Johnston
ACCESS
CODEINSIDE
unlock valuable
online learning
resources
www.pearson-books.com
Front cover image: © Getty Images
CVR_SLAC0460_06_SE_CVR.indd 1 20/10/09 09:38:10
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page i
Welcome to
OPERATIONS MANAGEMENT
Operations Managementis important, exciting, challenging, and everywhere your
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 find 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 aimin writing Operations Managementis to give you a comprehensive understanding
of the issues and techniques of operations management, and to help you get a great final
resultin 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
practicefeatures in every chapter to the focus on corporate social responsibility in the
final chapter – these put you at the cutting edge.
● Use the Worked examplesand Problems and applicationsto 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 readings at the end of each chapter. They’re specially
selected to enhance your learning and give you an edgein your course work.
And in particular, look out for the references to
MyOMLabin 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!
We want Opera tions Managementto give you what you need: a comprehensive view 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
Stuart Chambers
Robert Johnston
* P.S. In order to log in to MyOMLab, you’ll need to register with the access codeincluded with all
new copies of the book.
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page ii
Further reading in Operations Management
Take your study and interest in operations management further with these leading
textbooks written by the same team of expert authors.
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page iii
OPERATIONS MANAGEMENT
Sixth Edition
Nigel Slack
Stuart Chambers
Robert Johnston
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page iv
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 under the Pitman Publishing imprint 1995
Second edition (Pitman Publishing) 1998
Third edition 2001
Fourth edition 2004
Fifth edition 2007
Sixth edition 2010
© Nigel Slack, Stuart Chambers, Christine Harland, Alan Harrison, Robert Johnston 1995, 1998
© Nigel Slack, Stuart Chambers, and Robert Johnston 2001, 2004, 2007, 2010
The rights of Nigel Slack, Stuart Chambers, and Robert Johnston 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: 978-0-273-73046-0
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.
Operations management / Nigel Slack, Stuart Chambers, Robert Johnston. – 6th ed.
p. cm.
ISBN 978-0-273-73046-0 (pbk.)
1. Production management. I. Chambers, Stuart. II. Johnston, Robert, 1953– III. Title.
TS155.S562 2010
658.5–dc22
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Typeset in 10/12pt Minion by 35
Printed and bound by Rotolito Lombarda, Italy
The publisher’s policy is to use paper manufactured from sustainable forests.
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page v
Brief contents
Guide to ‘operations in practice’, Part Three
examples, short cases and PLANNING AND CONTROL 267
case studies xi
10 The nature of planning and control 268
Making the most of this book
11 Capacity planning and control 297
and MyOMLab xiv
Supplement to Chapter 11 – Analytical
Preface xviii queuing models 333
To the Instructor xx 12 Inventory planning and control 340
To the Student xxi 13 Supply chain planning and control 373
Ten steps to getting a better grade in 14 Enterprise resource planning (ERP) 406
operations management xxii Supplement to Chapter 14 – Materials
requirements planning (MRP) 422
About the authors xxiii
15 Lean synchronization 429
Acknowledgements xxiv
16 Project planning and control 457
17 Quality management 495
Part One
INTRODUCTION 1 Supplement to Chapter 17 – Statistical
process control (SPC) 520
1 Operations management 2
Part Four
2 Operations performance 32
IMPROVEMENT 539
3 Operations strategy 60
18 Operations improvement 540
Part Two 19 Risk management 571
DESIGN 85 20 Organizing for improvement 601
4 Process design 86
Part Five
5 The design of products and services 112 CORPORATE SOCIAL
RESPONSIBILITY 631
6 Supply network design 138
Supplement to Chapter 6 – Forecasting 168 21 Operations and corporate social
responsibility (CSR) 632
7 Layout and flow 177
8 Process technology 206 Notes on chapters 652
9 People, jobs and organization 233 Glossary 658
Supplement to Chapter 9 – Work study 259 Index 670
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page vi
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page vii
Contents
Guide to ‘operations in practice’, examples, Problems and applications 58
short cases and case studies xi Selected further reading 59
Making the most of this book and MyOMLab xiv Useful web sites 59
Preface xviii
To the Instructor xx Chapter 3
To the Student xxi Operations strategy 60
Ten steps to getting a better grade in
Introduction 60
operations management xxii
What is strategy and what is operations strategy? 62
About the authors xxiii
The ‘top-down’ and ‘bottom-up’ perspectives 65
Acknowledgements xxiv
The market requirements and operations
resources perspectives 68
The process of operations strategy 75
Part One
Summary answers to key questions 79
INTRODUCTION 1
Case study: Long Ridge Gliding Club 80
Problems and applications 81
Chapter 1
Selected further reading 82
Operations management 2 Useful web sites 82
Introduction 2
What is operations management? 4
Operations management is important in Part Two
all types of organization 6 DESIGN 85
The input–transformation–output process 11
The process hierarchy 15 Chapter 4
Operations processes have different Process design 86
characteristics 19
Introduction 86
The activities of operations management 23
What is process design? 87
Summary answers to key questions 25
What effects should process design have? 88
Case study: Design house partnerships at
Process types – the volume–variety effect on
Concept Design Services 27
process design 91
Problems and applications 30
Detailed process design 96
Selected further reading 30
Summary answers to key questions 108
Useful web sites 31
Case study: The Central Evaluation Unit 109
Problems and applications 110
Chapter 2 Selected further reading 111
Operations performance 32 Useful web sites 111
Introduction 32
Chapter 5
Operations performance is vital for any
The design of products and services 112
organization 34
The quality objective 40 Introduction 112
The speed objective 42 Why is good design so important? 114
The dependability objective 44 The benefits of interactive design 129
The flexibility objective 46 Summary answers to key questions 134
The cost objective 48 Case study: Chatsworth – the adventure
Trade-offs between performance objectives 54 playground decision 135
Summary answers to key questions 56 Problems and applications 136
Case study: Operations objectives at Selected further reading 137
the Penang Mutiara 57 Useful web sites 137
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page viii
viii Contents
Chapter 6 Organization design 238
Supply network design 138 Job design 241
Summary answers to key questions 255
Introduction 138
Case study: Service Adhesives tries again 256
The supply network perspective 140
Problems and applications 257
Configuring the supply network 142
Selected further reading 258
The location of capacity 146
Useful web sites 258
Long-term capacity management 155
Summary answers to key questions 161
Supplement to Chapter 9
Case study: Disneyland Resort Paris (abridged) 162 Work study 259
Problems and applications 166
Introduction 259
Selected further reading 167
Method study in job design 259
Useful web sites 167
Work measurement in job design 262
Supplement to Chapter 6
Forecasting 168
Introduction 168 Part Three
Forecasting – knowing the options 168 PLANNING AND CONTROL 267
In essence forecasting is simple 169
Approaches to forecasting 170 Chapter 10
Selected further reading 176 The nature of planning and control 268
Introduction 268
Chapter 7
What is planning and control? 270
Layout and flow 177
Supply and demand affect planning and control 272
Introduction 177 Planning and control activities 277
What is layout? 179 Summary answers to key questions 293
The basic layout types 180 Case study: Air traffic control – a world-class
What type of layout should an operation juggling act 294
choose? 187 Problems and applications 295
Detailed design of the layout 189 Selected further reading 296
Summary answers to key questions 202 Useful web sites 296
Case study: Weldon Hand Tools 203
Problems and applications 204
Chapter 11
Selected further reading 205 Capacity planning and control 297
Useful web sites 205
Introduction 297
What is capacity management? 299
Chapter 8
Measuring demand and capacity 301
Process technology 206
The alternative capacity plans 309
Introduction 206
Choosing a capacity planning and control
What is process technology? 208
approach 317
Understanding process technologies 209
Capacity planning as a queuing problem 322
Evaluating process technologies 221
Summary answers to key questions 327
Implementing process technologies 227
Case study: Holly Farm 328
Summary answers to key questions 229
Problems and applications 331
Case study: Rochem Ltd 230
Selected further reading 332
Problems and applications 232
Useful web sites 332
Selected further reading 232
Useful web sites 232 Supplement to Chapter 11
Analytical queuing models 333
Chapter 9
Introduction 333
People, jobs and organization 233
Notation 333
Introduction 233 Variability 334
People in operations 235 Incorporating Little’s law 335
Human resource strategy 236 Types of queuing system 336
A01_SLAC0460_06_SE_FM.QXD 10/21/09 11:48 Page ix
Contents ix
Chapter 12 Chapter 15
Inventory planning and control 340 Lean synchronization 429
Introduction 340 Introduction 429
What is inventory? 342 What is lean synchronization? 431
Why is inventory necessary? 342 Eliminate waste 435
Some disadvantages of holding inventory 345 Lean synchronization applied throughout
The volume decision – how much to order 346 the supply network 447
The timing decision – when to place an order 357 Lean synchronization and other approaches 449
Inventory analysis and control systems 362 Summary answers to key questions 452
Summary answers to key questions 368 Case study: Boys and Boden (B&B) 453
Case study: Trans-European Plastics 369 Problems and applications 455
Problems and applications 371 Selected further reading 456
Selected further reading 371 Useful web sites 456
Useful web sites 372
Chapter 16
Project planning and control 457
Chapter 13
Supply chain planning and control 373 Introduction 457
What is a project? 459
Introduction 373 Successful project management 461
What is supply chain management? 375 The project planning and control process 462
The activities of supply chain management 377 Network planning 475
Types of relationships in supply chains 386 Summary answers to key questions 487
Supply chain behaviour 391 Case study: United Photonics Malaysia Sdn Bhd 488
Supply chain improvement 394 Problems and applications 493
Summary answers to key questions 400 Selected further reading 494
Case study: Supplying fast fashion 401 Useful web sites 494
Problems and applications 404
Selected further reading 405 Chapter 17
Useful web sites 405 Quality management 495
Introduction 495
Chapter 14 What is quality and why is it so important? 497
Enterprise resource planning (ERP) 406 Diagnosing quality problems 501
Conformance to specification 502
Introduction 406
Total quality management (TQM) 508
What is ERP? 408
Summary answers to key questions 515
How did ERP develop? 408
Case study: Turnround at the Preston plant 516
Implementation of ERP systems 415
Problems and applications 518
Summary answers to key questions 417
Selected further reading 519
Case study: Psycho Sports Ltd 418
Useful web sites 519
Problems and applications 420
Selected further reading 421 Supplement to Chapter 17
Useful web sites 421 Statistical process control (SPC) 520
Introduction 520
Supplement to Chapter 14
Control charts 520
Materials requirements planning
Variation in process quality 521
(MRP) 422
Control charts for attributes 527
Introduction 422 Control chart for variables 528
Master production schedule 422 Process control, learning and knowledge 532
The bill of materials (BOM) 424 Acceptance sampling 533
Inventory records 425 Sampling plans 533
The MRP netting process 425 Summary 535
MRP capacity checks 428 Selected further reading 536
Summary 428 Useful web sites 536