OPERATIONS AND PROCESS MANAGEMENT Principles and practice for strategic impact
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1 OPERATIONS AND PROCESS MANAGEMENT Principles and practice for strategic impact Second Edition Nigel Slack Stuart Chambers Robert Johnston Alan Betts FT Prentice Hall FINANCIAL TIMES An imprint of Pearson Education Harlow, England London New York Boston San Francisco Toronto Sydney Tokyo Singapore Hong Kong Seoul Taipei New Delhi Cape Town Madrid Mexico City Amsterdam Munich Paris Milan
2 Contents Guide to case studies in the book and on CD Preface Guided tour of the book Guided tour of the CD About the authors Acknowledgements Operations and processes Executive summary What is operations and process management? Does the business take a process perspective? Does operations and process management have a strategic impact? Should all processes be managed in the same way? Critical commentary Summary checklist Case study: AAF Rotterdam Active case study: EleXon Computers Applying the principles Notes on chapter Taking it further Useful websites Operations strategy Executive summary What is operations strategy? Does the operation have a strategy? Does operations strategy make sense from the top and the bottom of the business? Does operations strategy align market requirements with operations resources? Does operations strategy set an improvement path? Critical commentary Summary checklist Case study: Dresding Wilson Active case study: Long Ridge Gliding Club Applying the principles Notes on chapter Taking it further Useful websites XII xv xviii xx xxiv xxv
3 Supply network design 65 Executive summary 66 What is supply network design? 68 How should the supply network be configured? 72 Where should operations be located? 77 How much capacity should each operation in the supply network have? 80 Critical commentary 86 Summary checklist 87 Case study: Disneyland Resort Paris (abridged) 88 Active case study: Freeman Biotest 93 Applying the principles 93 Notes on chapter 94 Taking it further 95 Useful websites 95 Supplement: Forecasting 96 Process design 1 - positioning 105 Executive summary 106 What is process design-positioning? 108 Do processes match volume-variety requirements? 110 Are process layouts appropriate? 116 Is process technology appropriate? 121 Are job designs appropriate? 123 Critical commentary 127 Summary checklist 128 Case study: North West Constructive Bank - The New Mortgage Centre Active case study: McPherson Charles Solicitors 132 Applying the principles 132 Notes on chapter 133 Taking it further 133 Useful websites 134 Process design 2 - analysis 135 Executive summary 136 What is process design-analysis? 138 Are process performance objectives understood? 140 How are processes currently designed? 143 Are process tasks and capacity configured appropriately? 147 Is process variability recognized? 156 Critical commentary 161 Summary checklist 162 Case study: North West Constructive Bank - The New Mortgage Centre Active case study: Action Response 167 Applying the principles 167
4 Notes on chapter 169 Taking it further 169 Supplement: Queuing analysis Product and service design processes 179 Executive summary 180 What is product/service design? 182 Are product/service design objectives specified? 185 Is the product/service design process defined? 188 Are the resources for developing products and services adequate? 193 Are product/service design and process design simultaneous? 196 Critical commentary 202 Summary checklist 203 Case study: Chatsworth - The adventure playground decision 204 Active case study: Getting Customer #1 205 Applying the principles ' 206 Notes on chapter ' Taking it further 207 Useful websites Supply chain management 209 Executive summary 210 What is supply chain management? 212 Are supply chain objectives clear? 215 How should supply chain relationships be managed? 222 How should the supply side be managed? 225 How should the demand side be managed? 230 Are supply chain dynamics under control? 232 Critical commentary 235 Summary checklist 237 Case study: Supplying fast fashion 238 Active case study: NK Fleet Management 240 Applying the principles 241 Notes on chapter 241 Taking it further 242 Useful websites Capacity management 245 Executive summary 246 What is capacity management? 248 What is the operation's current capacity? 251 How well are demand-capacity mismatches understood? 255 What should be the operation's base capacity? 258 How can demand-capacity mismatches be managed? 260 How should capacity be controlled? 266
5 Critical commentary 268 Summary checklist 269 Case study: Blackberry Hill Farm 270 Active case study: Fresh Salads Ltd 21A Applying the principles 275 Notes on chapter 276 Taking it-further 276 Useful websites Inventory management 277 Executive summary 278 What is inventory management? 280 Why should there be any inventory? 283 Is the right quantity being ordered? 286 Are inventory orders being placed at the right time? 294 Is inventory being controlled effectively? 297 Critical commentary > 301 Summary checklist 303 Case study: supplies4medics.com 304 Active case study: Rotterdam Serum 305 Applying the principles 306 Notes on chapter 307 Taking it further 307 Useful websites Resource planning and control 309 Executive summary 310 What is resource planning and control? 312 Does resource planning and control have all the right elements? 314 Is resource planning and control information integrated? 319 Are core planning and control activities effective? 323 Critical commentary 331 Summary checklist 332 Case study: subtext Studios, Singapore 333 Active case study: Coburn Finnegan Accountants 336 Applying the principles 336 Notes on chapter 338 Taking it further Useful websites. 338 Supplement: Materials Requirements Planning (MRP) Lean synchronization 347 Executive summary 348 What is lean synchronization? 350 What are the barriers to lean synchronization? 355
6 STO8I1II83 Is flow streamlined? 359 Does supply exactly match demand? 361 Are processes flexible? 363 Is variability minimized? 364 Is lean synchronization applied throughout the supply network? 367 Critical commentary p ' Summary checklist 376 Case study: Boys and Boden (B&B) 377 Active case study: Treating Ann 379 Applying the principles 379 Notes on chapter 380 Taking it further 381 Useful websites Quality management 383 Executive summary 384 What is quality management?. 386 Is the idea of quality management universally understood and applied? 388 Is 'quality' adequately defined? 390 Is 'quality' adequately measured? 393 Is 'quality' adequately controlled? 397 Does quality management always lead to improvement? 401 Critical commentary 403 Summary checklist 405 Case study: Turnround at the Preston plant 406 Active case study: 'You have eight messages' 408 Applying the principles 408 Notes on chapter 409 Taking it further 409 Useful websites 410 Supplement: Statistical Process Control (SPC) Improvement 423 Executive summary 424 What is improvement? 426 What is the gap between current and required performance? 428 What is the most appropriate improvement path? 438 What techniques should be used to facilitate improvement? 446 How can improvement be made to stick? 451 Critical commentary 454 Summary checklist 456 Case study: Geneva Construction and Risk (GCR) 457 Active case study: Ferndale Sands Conference Centre 460 Applying the principles 460
7 Notes on chapter 461 Taking it further 461 Useful websites Risk and resilience 463 Executive summary 464 What are risk and resilience? 466 Have potential failure points been assessed? 469 Have failure prevention measures been implemented? 477 Have failure mitigation measures been implemented? 481 Have failure recovery measures been implemented? 485 Critical commentary 487 Summary checklist 489 Case study: The Chernobyl failure 490 Active case study: Paterford Elevators 491 Applying the principles 492 Notes on chapter : Taking it further 493 Useful websites Project management 495 Executive summary 496 What is project management? 498 Is the project environment understood? 501 Is the project well defined? 505 Is project management adequate? 506 Has the project been adequately planned? 508 Is the project adequately controlled? 516 Critical commentary 520 Summary checklist 521 Case study: United Photonics Malaysia Sdn Bhd 522 Active case study: National Trust 527 Applying the principles 527 Notes on chapter 528 Taking it further 529 Useful websites 529 Index 531
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