About the Authors p. vi
Foreword p. ix
Preface p. xxi
Introduction to Operations Management
Operations and Productivity p. 1
Global Company Profile: Whirlpool p. 2
What is Operations Management? p. 4
The Heritage of Operations Management p. 4
Why Study OM? p. 6
What Operations Managers Do p. 7
Organizing to Produce Goods and Services p. 8
Where Are the OM Jobs? p. 10
Exciting New Trends in Operations Management p. 10
Operations in the Service Sector p. 12
The Productivity Challenge p. 15
The Challenge of Social Responsibility p. 22
Operations Strategy for Competitive Advantage p. 29
Global Company Profile: Komatsu p. 30
Identifying Missions and Strategies p. 32
Achieving Competitive Advantage Through Operations p. 34
Ten Strategic OM Decisions p. 37
Issues in Operations Strategy p. 40
Strategy Development and Implementation p. 43
Operations in a Global Environment p. 53
Global Company Profile: Boeing p. 54
Why Global Operations are Important p. 56
Achieving Global Operations p. 60
Global Issues in Service Operations p. 64
Global Operations Strategies p. 66
Forecasting p. 75
Global Company Profile: Tupperware Corporation p. 76
What is Forecasting? p. 78
Types of Forecasts p. 79
The Strategic Importance of Forecasting p. 79
Seven Steps in the Forecasting System p. 80
Forecasting Approaches p. 81
Time-Series Forecasting p. 82
Associative Forecasting Methods: Regression and Correlation Analysis p. 101
Monitoring and Controlling Forecasts p. 107
Forecasting in the Service Sector p. 110
Designing Operations
Design of Goods and Services p. 129
Global Company Profile: Regal Marine p. 130
Goods and Services Selection p. 132
Product Development p. 137
Issues for Product Design p. 143
Time-Based Competition p. 146
Defining the Product p. 149
Documents for Production p. 152
Service Design p. 153
Application of Decision Trees to Product Design p. 157
Transition to Production p. 158
Managing Quality p. 167
Global Company Profile: Motorola p. 168
Quality and Strategy p. 170
Defining Quality p. 171
International Quality Standards p. 173
Total Quality Management p. 174
Tools of TQM p. 179
The Role of Inspection p. 183
TQM in Services p. 186
Statistical Process Control p. 197
Statistical Process Control (SPC) p. 198
Process Capability p. 213
Acceptance Sampling p. 214
Process Strategy and Capacity Planning p. 231
Global Company Profile: Dell Computer Corp. p. 232
Four Process Strategies p. 234
Process Analysis and Design p. 243
Service Process Design p. 247
Process Reengineering p. 249
Environmentally Friendly Processes p. 250
Selection of Equipment and Technology p. 251
Capacity p. 251
Break-Even Analysis p. 256
Strategy-Driven Investments p. 261
Operations Technology, the Internet, and ERP p. 279
The Internet p. 280
Design Technology p. 282
Production Technology p. 284
Technology in Services p. 287
Information Sciences in Operations p. 288
Enterprise Resource Planning (ERP) p. 292
Location Strategies p. 299
Global Company Profile: Federal Express p. 300
The Strategic Importance of Location p. 302
Factors that Affect Location Decisions p. 303
Methods of Evaluating Location Alternatives p. 308
Service Location Strategy p. 314
Layout Strategy p. 333
Global Company Profile: McDonald's p. 334
The Strategic Importance of Layout Decisions p. 336
Types of Layout p. 336
Fixed-Position Layout p. 337
Process-Oriented Layout p. 339
Office Layout p. 348
Retail Layout p. 350
Warehousing and Storage Layouts p. 352
Repetitive and Product-Oriented Layout p. 354
Human Resources and Job Design p. 379
Global Company Profile: Southwest Airlines p. 380
Human Resource Strategy for Competitive Advantage p. 382
Labor Planning p. 383
Job Design p. 385
The Visual Workplace p. 398
Labor Standards p. 398
Work Measurement p. 407
Labor Standards and Work Measurement p. 408
Historical Experience p. 409
Time Studies p. 409
Predetermined Time Standards p. 415
Work Sampling p. 416
Managing Operations
Supply-Chain Management p. 431
Global Company Profile: Volkswagen p. 432
The Strategic Importance of the Supply Chain p. 434
Purchasing p. 436
Supply-Chain Strategies p. 438
Vendor Selection p. 442
Managing the Supply Chain p. 444
Internet Purchasing p. 446
Materials Management p. 448
Benchmarking Supply-Chain Management p. 449
E-commerce and Operations Management p. 457
Electronic Commerce p. 458
Security in the E-commerce Environment p. 459
Economics of E-commerce p. 460
Product Design p. 460
E-Procurement p. 461
Inventory Tracking p. 463
Inventory Reduction p. 464
Scheduling and Logistics Improvements p. 465
Inventory Management p. 471
Global Company Profile: Green Gear Cycling p. 472
Functions of Inventory p. 474
Inventory Management p. 475
Inventory Models p. 479
Inventory Models for Independent Demand p. 480
Probabilistic Models with Constant Lead Time p. 495
Fixed Period Systems p. 498
Just-in-Time Systems p. 515
Just-in-Time Philosophy p. 516
Suppliers p. 518
JIT Layout p. 521
Inventory p. 522
Scheduling p. 525
Quality p. 529
Employee Empowerment p. 529
Lean Production p. 529
JIT in Services p. 530
Aggregate Planning p. 537
Global Company Profile: Anheuser-Busch p. 538
The Planning Process p. 540
The Nature of Aggregate Planning p. 541
Aggregate Planning Strategies p. 543
Methods for Aggregate Planning p. 547
Aggregate Planning in Services p. 555
Material Requirements Planning (MRP) p. 571
Global Company Profile: Collins Industries p. 572
Dependent Inventory Model Requirements p. 574
MRP Structure p. 580
MRP Management p. 586
Lot-Sizing Techniques p. 587
Extensions of MRP p. 591
MRP in Services p. 595
Distribution Resource Planning (DRP) p. 596
Short-Term Scheduling p. 613
Global Company Profile: Delta Airlines p. 614
The Strategic Importance of Short-Term Scheduling p. 616
Scheduling Issues p. 616
Scheduling Process-Focused Work Centers p. 619
Loading Jobs in Work Centers p. 620
Sequencing Jobs in Work Centers p. 626
Limitations of Rule-Based Dispatching Systems p. 632
Finite Scheduling p. 632
Theory of Constraints p. 633
Bottleneck Work Centers p. 634
Repetitive Manufacturing p. 635
Scheduling for Services p. 637
Project Management p. 655
Global Company Profile: Bechtel Group p. 656
The Strategic Importance of Project Management p. 658
Project Planning p. 658
Project Scheduling p. 661
Project Controlling p. 663
Project Management Techniques: PERT and CPM p. 663
Cost-Time Trade-Offs and Project Crashing p. 677
A Critique of PERT and CPM p. 679
Maintenance and Reliability p. 697
Global Company Profile: NASA p. 698
The Strategic Importance of Maintenance and Reliability p. 700
Reliability p. 701
Maintenance p. 704
Total Productive Maintenance p. 709
Techniques for Establishing Maintenance Policies p. 710
Quantitative Modules
Decision-Making Tools p. 717
The Decision Process in Operations p. 718
Fundamentals of Decision Making p. 719
Decision Tables p. 720
Decision Trees p. 723
Linear Programming p. 739
Requirements of a Linear Programming Problem p. 741
Formulating Linear Programming Problems p. 742
Graphical Solution to a Linear Programming Problem p. 743
Sensitivity Analysis p. 749
Solving Minimization Problems p. 750
Linear Programming Applications p. 752
The Simplex Method of LP p. 758
Transportation Models p. 775
Transportation Modeling p. 776
Developing an Initial Solution p. 778
The Stepping-Stone Method p. 780
Special Issues in Modeling p. 784
Waiting-Line Models p. 801
Characteristics of a Waiting-Line System p. 803
Queuing Costs p. 808
The Variety of Queuing Models p. 809
Other Queuing Approaches p. 819
Learning Curves p. 833
Learning Curves in Services and Manufacturing p. 835
Applying the Learning curve p. 836
Strategic Implications of Learning Curves p. 840
Limitations of Learning Curves p. 841
Simulation p. 849
What is Simulation? p. 851
Advantages and Disadvantages of Simulation p. 851
Monte Carlo Simulation p. 852
Simulation of a Queuing Problem p. 855
Simulation and Inventory Analysis p. 858
The Role of Computers in Simulation p. 861
Normal Curve Areas p. 2
Poisson Distribution Values p. 4
Values of e[superscript -lambda] for Use in the Poisson Distribution p. 6
Table of Random Numbers p. 6
Using Excel OM and POM for Windows p. 7
Solutions to Even-Numbered Problems p. 11
CD-ROM Tutorials
Statistical Tools for Managers p. T1-1
Acceptance Sampling p. T2-1
The Simplex Method of Linear Programming p. T3-1
The MODI and VAM Methods of Solving Transportation Problems p. T4-1