Operations Management For Dummies PDF
Preview Operations Management For Dummies
Operations Management For Dummies® Published by: John Wiley & Sons, Inc. 111 River Street Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2013 by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada 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, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. 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Library of Congress Control Number: 2013938098 ISBN 978-1-11855106-6 (pbk); ISBN 978-1-118-55109-7 (ebk); ISBN 978- 1-118-55107-3 (ebk); ISBN 978-1-118-55108-0 (ebk) Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 Operations Management For ® Dummies Visit www.dummies.com/cheatsheet/operationsmanagement to view this book's cheat sheet. Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part I: Getting Started with Operations Management Chapter 1: Discovering the Fundamentals of Operations Management Defining Operations Management Getting beyond the smokestack Seeing the relevance of operations management Understanding the Process of Operations Driving the business model Recognizing the diversity of processes Managing processes Handling special situations Meeting the Challenges Chapter 2: Defining and Evaluating Processes Mapping Processes Distinguishing between operations and delays Identifying waste Developing a process map Evaluating the Elements of a System Checking productivity Considering capacity Clocking cycle time Getting a handle on constraints Talking thruput and takt time Going with the flow time Monitoring utilization Accounting for variability Chapter 3: Designing Processes to Meet Goals Getting Started with Process Improvement Planning Operations Considering a serial process Placing operations in parallel Improving Processes According to a Goal Reducing customer flow time Increasing system capacity Balancing the line Utilizing flexible resources Improving a process that has excess capacity Managing Bottlenecks Getting tripped up by overproduction Increasing process capacity Chapter 4: Dealing with Shared Resources, Batches, and Rework Sharing Resources Assigning a resource to more than one operation Allocating resources to more than one process Batching Parts and Setting Up Operations Working with batches Maximizing operation batch size Optimizing transfer batch size Optimizing batch size with operation setups Managing Process Disruptions Putting rework back in the process that created it Pulling rework out of the main process Chapter 5: Designing Your Process to Match Your Product or Service Considering Costs, Standardization, Volume, and Flexibility Balancing operating costs Blurring the lines: Making standardized stuff customizable Improving Face-to-Face and Back-Office Operations Strengthening the customer interface Improving efficiencies behind the scenes Fulfilling Customer Demand: Making to Stock or Making to Order Making to stock Making to order A tale of two companies: Making either method work Designing for X: Designing Products with Operations in Mind Part II: Managing Variability and Risk Chapter 6: Forecasting Demand Getting Savvy about Forecasts Building a Forecast to Predict Demand Recognizing demand variation Looking to the past to predict the future Lacking data: No problem Acknowledging the Error of Your Ways Hunting down the source of your error Measuring how inaccurate you are Chapter 7: Planning Capacity Considering Capacity Matching supply and demand Timing adjustments just right Balancing Capacity and Inventory Producing to match demand Producing at capacity Increasing capacity Addressing Wait Time for Services Getting the why of waiting Estimating waiting time with queuing theory Altering customer perceptions Chapter 8: Managing Inventory Dealing with the Business of Inventory Recognizing inventory’s purposes Measuring the true cost of inventory Managing Inventory Continuous review Periodic review Single period review Comparing the options Getting Baseline Data on Performance Assessing the inventory management system Evaluating the quality of customer service Reducing Inventory without Sacrificing Customer Service Multitasking inventory: The commonality approach Holding on: The postponement strategy Managing Inventory across the Supply Chain Keeping track of the pipeline inventory Setting service levels with multiple suppliers Chapter 9: Planning for Successful Operations Planning from the Top Down Determining corporate strategy Preparing for success Executing the plan Exploring the Components of an Aggregate Plan Putting together a plan Creating the master schedule
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