Operations Management
r iTHIRD EDITION
r iTHIRD EDITION
Andrew Greasley
WILEY
CONTENTS
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 14
Case Studies
1.1 'First Bank' PLC 15
1.2 Manufacturing's Decline Partly Due to Services Shift 16
1.3 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
CONTENTS
Case Studies
2.1 Findus 25
2.2 Gecko 30
2.3 Operations Strategy in Action 32
2.4 Texon i 35
2.5 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 63
Case Studies
3.1 Ashburton Products 65
3.2 Democracy Made with Personalised Products 66
3.3 The Mini 68
Chapter 4 Layout Types and Layout Design 71
Introduction 71
Layout types 72
Layout design 80
Case Studies
4.1 Line Balancing in a Manufacturing Plant 88
4.2 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
CONTENTS ix
Case Studies
5.1 loD Advocates Space Hub to Lift Economy 101
5.2 The Supply Chains that Could Bind Unsuspecting Managers 106
5.3 Moving Textile Manufacturing Overseas 112
5.4 Mom-and-Pop Companies Face Struggle for Survival 118
5.5 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 136
Case Studies
6.1 Spencer Davis Engineering 127
6.2 Kennedys 134
6.3 Retail Applications of Transaction Processing Systems by Sainsbury's 138
6.4 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 157
Case Studies
7.1 Product Development at Fracino 155
7.2 Benugo 157
7.3 Wine-on-the-go 166
Chapter 8 Process Design 170
Introduction 170
Steps in process design 171
X CONTENTS
Case Studies
8.1 Why the Bunker Mentality has become a Corporate Liability 182 8.2 Designing a Custody-of-Prisoner Process at a Police Force 184
8.3 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 201
Case Studies
9.1 Innocent 197
9.2 Keep up Motivation Levels through Long Summer Days 198
9.3 Design Space: A more ergonomic earphone 201
9.4 Experience Curves 209
9.5 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) 231
Case Studies
10.1 Workforce Scheduling at a Police Communications Centre 227
10.2 Car Mechanics Ltd 229
10.3 Using Workforce Scheduling to Lower Labour Costs 235
10.4 Ocado 235
Chapter 11 Capacity Management 240
Introduction 241
Measuring demand 241
Measuring capacity 243
CONTENTS Xi
Reconciling capacity and demand 246
Evaluating alternatives and making a choice 251
Appendix: Forecasting 257
Case Studies T
11.1 Lloyds Cameras Cut Time in Queues 256
11.2 Queuing Theory 267
11.3 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 291
Case Studies
12.1 Pandora: Box is wide open 278
12.2 Retail: Knowing your stock is the key to a busy shop 279
12.3 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 314
Case Studies
13.1 Quake Upsets Lean Supply Model 300
13.2 Satair 302
Xli CONTENTS
13.4 How Much Waste is there in the Service Industry? 313 13.5 It Pays to Cut Out Waste but Not to Trim All the Value Away 315
13.6 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) 335
Case Studies
14.1 ERP: A convincing case must be made before investment 325 14.2 The Challenge of Changing Everything at Once 336
14.3 Lambton Clothing Co. 337
Chapter 15 Supply Chain Management 341
Introduction 342
Supply chain design 343
Activities in the supply chain 355
Case Studies
15.1 BASF and Aker Kvaerner 351
15.2 Supplier Evaluation at EADS 359
15.3 Chance & Hunt 362
15.4 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
CONTENTS Xiii
Case Studies
16.1 Project Management: Lessons can be learned from successful delivery 373
16.2 Fast Homes - Courtesy of Prefabrication 390
16.3 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 425
Case Studies
17.1 Growth with Values 409
17.2 Adventures in Six Sigma: How the Problem-solving Technique Helped Xerox 412
17.3 A Disciple of Japanese Quality Management 431
17.4 Yell 433
17.5 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? 447
Case Studies
18.1 Activity-Based Costing at a Police Service 443
18.2 In the Age of the Smart Machine 453
18.3 Managers Disrupt Learning with their'Great Ideas' 453 18.4 Process Improvement at a UK Police Service 456
18.5 GOSH and F1 461
Glossary 465
