Operations Management

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1 Operations Management r THIRD EDITION i Andrew Greasley WILEY

2 About the Author XV Preface * xvi Acknowledgements xvi Content xvii A Guide for Students xvii Online Resources xviii Lecturer Resources xviii New for the Third Edition xviii PART ONE INTRODUCTION 1 Chapter 1 Introduction 3 Introduction 3 What is operations management? 4 The history of operations management 5 The role of operations management 7 The process view of operations 8 Service operations management 10 The strategic role of operations 14 Technology and operations management 'First Bank' PLC Manufacturing's Decline Partly Due to Services Shift A Student's Perspective 17 Chapter 2 Operations Strategy 22 Introduction 22 What is strategy? 23 Judging the contribution of operations to strategy 25 Measuring the contribution of operations to strategy 27 Operations strategy approaches 33 Operations strategy alignment 36 Operations strategy formulation 37 Operations strategy implementation Q,

3 2.1 Findus Gecko Operations Strategy in Action Texon i Pure Gym 49 PART TWO DESIGN 53 Chapter 3 Process Types 55 Introduction 56 Manufacturing process types 56 Service process types 59 Matching process type with volume and variety 62 Choosing a process type Ashburton Products Democracy Made with Personalised Products The Mini 68 Chapter 4 Layout Types and Layout Design 71 Introduction 71 Layout types 72 Layout design Line Balancing in a Manufacturing Plant M&S 91 Chapter 5 Facility Design: Supply, Capacity and Location 96 Introduction 97 Supply network design 97 Long-term capacity planning 102 Facility location 108 Location selection techniques 112

4 ix 5.1 lod Advocates Space Hub to Lift Economy The Supply Chains that Could Bind Unsuspecting Managers Moving Textile Manufacturing Overseas Mom-and-Pop Companies Face Struggle for Survival Coca-Cola 120 Chapter 6 Process Technology 125 Introduction 126 Process technology for materials 126 Process technology for information 130 Process technology for customers 135 Choosing process technology Spencer Davis Engineering Kennedys Retail Applications of Transaction Processing Systems by Sainsbury's RFID American Apparel 139 Chapter 7 Product and Service Design 143 Introduction 144 Developing product and service designs 144 The relationship between product/service design and process design 145 The design process 145 Service design 155 Improving design Product Development at Fracino Benugo Wine-on-the-go 166 Chapter 8 Process Design 170 Introduction 170 Steps in process design 171 Tools for process design 173

5 X CONTENTS 8.1 Why the Bunker Mentality has become a Corporate Liability Designing a Custody-of-Prisoner Process at a Police Force F1 Pitstop 188 * Chapter 9 Job and Work Design 192 Introduction 193 Behavioural aspects of job design 193 Physical aspects of job design 200 Work study Innocent Keep up Motivation Levels through Long Summer Days Design Space: A more ergonomic earphone Experience Curves The Creative Space 210 PART THREE MANAGEMENT 215 Chapter 10 Operations Planning and Control 217 Introduction 218 Operations planning 218 Operations control 220 Optimized production technology (OPT) Workforce Scheduling at a Police Communications Centre Car Mechanics Ltd Using Workforce Scheduling to Lower Labour Costs Ocado 235 Chapter 11 Capacity Management 240 Introduction 241 Measuring demand 241 Measuring capacity 243

6 Xi Reconciling capacity and demand 246 Evaluating alternatives and making a choice 251 Appendix: Forecasting 257 T 11.1 Lloyds Cameras Cut Time in Queues Queuing Theory Glastonbury 269 Chapter 12 Inventory Management 274 Introduction 275 Types of inventory 275 Managing inventory 278 The ABC inventory classification system 280 Inventory models 281 Implementing inventory systems Pandora: Box is wide open Retail: Knowing your stock is the key to a busy shop Vauxhall 292 Chapter 13 Lean Operations 296 Introduction 297 The philosophy of lean operations 297 Lean techniques 302 Lean in service systems 312 Implementing lean operations Quake Upsets Lean Supply Model Satair Goodwin Steel Castings IQ

7 Xli CONTENTS 13.4 How Much Waste is there in the Service Industry? It Pays to Cut Out Waste but Not to Trim All the Value Away Harley-Davidson 317 Chapter 14 Enterprise Resource Planning 320 Introduction 321 Enterprise resource planning (ERP) systems 321 Customer Relationship Management (CRM) systems 326 Resource planning 327 Materials requirements planning 329 Manufacturing resource planning (MRP II) 334 Distribution requirements planning (DRP) ERP: A convincing case must be made before investment The Challenge of Changing Everything at Once Lambton Clothing Co. 337 Chapter 15 Supply Chain Management 341 Introduction 342 Supply chain design 343 Activities in the supply chain BASF and Aker Kvaerner Supplier Evaluation at EADS Chance & Hunt Amazon - A Virtual Supply Chain 368 Chapter 16 Project Management 371 Introduction 372 Project management in the organization 372 Project management activities 375 Network analysis 378!Ql

8 Xiii 16.1 Project Management: Lessons can be learned from successful delivery Fast Homes - Courtesy of Prefabrication The Orbit Tower 391 t Chapter 17 Quality 397 Introduction 398 Defining quality 398 Measuring quality 401 Improving quality 404 Methodologies for quality improvement 406 Six Sigma quality 410 Statistical process control (SPC) 414 Acceptance sampling Growth with Values Adventures in Six Sigma: How the Problem-solving Technique Helped Xerox A Disciple of Japanese Quality Management Yell Mouse Bread 434 Chapter 18 Performance Measurement and Improvement 439 Introduction 440 How do we measure performance? 440 Where should we improve performance? 445 How do we improve performance? Activity-Based Costing at a Police Service In the Age of the Smart Machine Managers Disrupt Learning with their'great Ideas' Process Improvement at a UK Police Service GOSH and F1 461 Glossary 465 Index tq

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