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failures (continued) estimates of objective 578–82 subjective 583 likelihood 578–83 mean time between (MTBF) 581–2, 664 mitigation 573, 592–3 operations 39 post-failure analyses 578 potential occurrences 573 prevention 75, 573, 586–92, 639, 642 rates (FR) 578, 579–80, 661 recovery from 593–43, 666 business continuity 595–6 environmental issues 639 planning 573, 594–5 quality and 502, 504 social issues 642 sources 573 traceability 578 farming 41–2, 328–30 fashion industry 401–4 fast-throughput operating see just-in-time fast fashion 401–4 fast food 87 fault tree analyses 578, 579, 661 FCFS (first come first served) 282, 324 feasibility, designs 120–1, 128, 660 feedback 428, 461 FIFO (first in first out) 282 final design 117, 128–9 finance functions 5–6, 18 financial objectives 607 financial performance 646–7 financial returns 224–6 finished goods inventory 345 finite loading 278–9, 662 Finney, S. 415–16 first-tier customers 140–1, 377, 662 first-tier suppliers first-tier see suppliers first come, first served (FCFS) 282, 324 first in first out (FIFO) 282, 283 Fisher, Marshall 391, 392 fit, deviation from line of 605 Fitzsimmons, J.A. 432 five Ps of operations strategy formation 78 fixed cost breaks 155, 159–60, 662 fixed costs 189 fixed-position layouts see layouts flexi-time working 249, 662 flexibility 662 basic working practices 434 capacity planning and control 301 costs and 20, 47, 52, 53, 96 dependability and 47, 48 in-house supply 144 inventory roles 342 long-term 179 low 243 networks 212 objectives 40, 46–8, 52, 53, 58, 69, 89, 101 outsourced supply 144 performance measures 607–8 process technology 223–2 processes 443 sandcone theory 616–17 services 449 supply chains 377 see also mix flexibility; volume: flexibility flexible manufacturing systems (FMS) 210, 662 flexible working 249–51 Flextronics 61–2 float 470, 471, 477–9 flows 177–8 charts 559–60 clarity of 179 controlled, customers and materials 201 factory flow surgery 181 length of 179 process charts 99–100 production flow analysis 194–6, 665 rates 89 record chart 190–1, 662 shapes 438 streamlined 436–40 synchronized 431–2, 547, 550 of transformed resources 187 visibility 439 volume-variety 187 fluctuations, demand 301–4 FMEA (failure mode and effect analysis) 541, 583–5, 661 FMS (flexible manufacturing systems) 210, 662 focus groups 118, 171, 662 food-processing industry 230–1 forced labour 384 Ford 379 forecast demand 422 forecasting 168–76, 301–4, 367 Formule 1 hotels 14, 21 forward-looking views, risk management 574 forward passes 480 forward scheduling 285–6, 662 forward vertical integration 144 Four Seasons Hotel 496–7 four-stage model of operations contribution 63–4, 662 FoxMeyer Drug 413 FR (failure rates) 578, 579–80, 661 freedom of association 384 Freeman, Milton 646 front-office environment 22, 662 Fujitsu 145 functional design organisation 133 functional layouts see layouts functional purposes, grouping resources as 240 functional strategies 66, 662 functionality 502, 504 functions basic 128 core 4–6, 660 manage all processes 17–18 non-operations 18 operations see operations operations as 18 secondary 128 support 5–6, 668 G/G/m queues 336, 337–9 GAM (Groupe As Maquilage) 530–2 games 424–8 Gantt charts 286–7, 475, 486, 662 Gap 642–3 gap-based approach 76 garment industry 401–4 Gate Gourmet 388 GE 622 Geneva Construction and Risk 565–8 geo-social environments 463 getting it right first time approach 513 Giordano 68 gliding club 80–1 global alliances 410 global sourcing 382–4, 400 globalization 636, 641, 662 goals perfection 547–8 projects 461 see also objectives; targets Goldratt, Eliyahu 290, 449 goods see products; products/services Google 119, 237 GORE-TEX® 234–5 governments’ performance objectives 38 gravity analogy 290 green reporting 640 greenfield operations 76 Greenpeace 583 greetings cards 317 Grohman, M.C. 176 Groupe As Maquilage (GAM) 530–2 growth stage, products/services 72 Gummesson, E. 497 H&M 401–4 Hackman, J.R. 245 hairdressers 122–3, 220 Hall, Richard 441 Hallmark Cards 317 Hammer, Michael 550–1 hand tools 203–4 Happy Products 256–7 Harrison, A. 452 Hayes, R.H. 63–4, 95–6 Index 675
676 Index health, staff health and safety at work 251, 384 heijunka 430, 444 Heineken 541, 620 helicopter ambulances 43 Hersheson 122–3 heuristics 194, 199, 662 Hewlett-Packard 516–18, 638 hidden technologies 219 hierarchy of operations 15–17, 514, 662 high-level process mapping 98, 662 high-level strategic decision-making 67 high received variety 20 high staff utilization 20 high value-added manufacture see just-in-time high-visibility operations 20, 22–3, 147 Hill methodology 662 hire and fire 314, 662 historically based targets 610 Hogarth, R.M. 175 Holly Farm 328–30 homeworking 249, 578 Hon Hai Precision Industry 51, 145 Hoover 116 hospitals 41, 42, 44, 46, 48, 49, 270, 281, 440, 507, 586 hot standby 587 hotels 13, 20, 21, 57–8, 152, 380, 496–7 house of quality see quality function deployment housekeeping 446 Howard Smith Paper Group 356–7 hows 126–7 HSBC 649 human factors engineering 244, 662 human failures 575 human interface, job design 244–5 human resources 233–5 business process re-engineering and 553 functions 5–6 management 18, 214 strategies 236–8 see also jobs: design; staff Hurricane Katrina 213 Hyatt 152 hype, excessive, avoidance 621–2 hypermedia/hypertext 213 IBM 213, 512 ice-cream 329–30 ideal operations 76 ideas 118–19, 131 identification, risks 596 idle time 313, 325, 326 IKEA 3–4, 13–14 illumination levels at work 251–2 image of location 151–2 Imai, Masaaki 544 IMF (International Monetary Fund) 636 immediate supply networks 140, 662 implementation enterprise resource planning 415–17 improvement 620–4 planning 396 of process technology 227–8 of strategy 62–3, 78 importance–performance matrices 613–16, 662 improve zones 614 improvement 539–41 approaches to 549–58 awards 622–4 benchmarking as tool for 611 breakthrough 543, 659 continuous see continuous improvement culture 617–20 cycles 544–5, 619, 662 decisions 75 design 117, 125–8 elements of 542–9 implementation 620–4 importance 542 information for 606–12 innovation-based 543 as learning 619–20 organizing for 601–2 reasons for 603 performance 24, 394–400 priorities 612–17 procedures 546–7 of processes 99–101 strategy, linking to 603–5 supply chains 394–400 systems 546–7 techniques 558–63 in-house supplies 143–6 indented bills of materials 424–5 independent demand 275, 662 independent relationships 470 indirect process technology 208, 662 indirect responsibilities of operations management 662 industrial parks 62 infinite loading 279, 662 infomediaries 381–2 information delivered 449 flow design 396 for functional layouts 190–1, 192 for improvement 606–12 inputs of 12 integration 409–10, 411, 414, 415 inventories of 432 possession of 12 processing 12, 20 technology 208, 211–17, 223 see also information technology queues of 432, 448 sharing, supply chains 397–8 sources, master production schedules 422 transparency 390, 415 information systems 6, 97, 126–7 inventories 366–7 management (MIS) 664 information technology 18, 211–17, 390, 416, 551, 662 infrastructural decisions 74–5, 662 injuries 243 innovation 39, 627 innovation-based improvement 543 input capacity measures 304 input costs 643 input resources 11–13, 662 input-transformation-output process 11–15, 24–5, 117 inputs 11–13, 89, 90, 345, 422 inspections 583 intangible resources 73–4, 662 integrated risk management 574 integrating technologies 208 Intel 99–100, 104, 151 interactive design 129–33, 662 intermediaries interaction with technology through 219–21 internal benchmarking 611 internal customers see customers internal effectiveness cost reduction through 51–3 internal environments, projects 463 internal failure costs 511, 512–13, 663 internal neutrality 63 internal stakeholders 37 internal suppliers see suppliers internal support 63–4 International Monetary Fund (IMF) 636 Internet 212–13, 214, 663 connectivity 577–8 open-sourcing 119 physical distribution management 384–5 purchasing 381 security 577–8 web-integrated ERP 409, 414, 669 see also e-business; e-commerce; e-procurement introduction stage, products/services 72 inventories analysis and control systems 362–5 anticipation 311, 344, 658 buffer 290–1, 343, 358– 9, 361–2, 431, 442, 659 carrying costs 383 components 345 control see planning and control below coordination 432 costs 342, 347, 354–6, 432 of customers 432 cycle 343–4, 352–3, 660 decisions 75, 345–67
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sixth edition OperatiOns ManageMent
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Further reading in Operations Manag
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Pearson Education Limited Edinburgh
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Contents Guide to ‘operations in
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Contents ix Chapter 12 Inventory pl
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Guide to ‘operations in practice
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Guide to ‘operations in practice
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Making the most of this book and My
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Making the most of this book and My
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Preface xix Illustrations-based Ope
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To the Student . . . Making the mos
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About the authors Nigel Slack is th
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Publisher’s acknowledgements We a
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Part One INTRODUCTION This part of
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Chapter 1 Operations management 3 O
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88 Part Two Design Figure 4.2 The d
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90 Part Two Design Environmentally
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92 Part Two Design Figure 4.3 Diffe
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94 Part Two Design Professional ser
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96 Part Two Design Figure 4.4 Devia
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98 Part Two Design Figure 4.6 Proce
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100 Part Two Design Figure 4.8 Flow
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102 Part Two Design Given that an i
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104 Part Two Design From Little’s
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106 Part Two Design The relationshi
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108 Part Two Design Summary answers
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110 Part Two Design the grant appli
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114 Part Two Design hopeless lack o
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116 Part Two Design Core products a
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118 Part Two Design Figure 5.3 The
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120 Part Two Design Short case Squa
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122 Part Two Design Critical commen
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124 Part Two Design Reducing design
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126 Part Two Design Figure 5.7 A QF
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128 Part Two Design Purpose Basic f
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130 Part Two Design Interactive des
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132 Part Two Design Early conflict
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134 Part Two Design Summary answers
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136 Part Two Design similar. It was
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Chapter 6 Supply network design Key
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140 Part Two Design The supply netw
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142 Part Two Design a particularly
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144 Part Two Design and expanding o
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146 Part Two Design Figure 6.4 Offs
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148 Part Two Design Controversially
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150 Part Two Design Energy costs. O
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152 Part Two Design product and fas
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154 Part Two Design Figure 6.7 Cent
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156 Part Two Design The blue dotted
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158 Part Two Design Table 6.4 The a
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160 Part Two Design Figure 6.11 Rep
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162 Part Two Design Case study Disn
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166 Part Two Design of a failing Di
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170 Part Two Design Figure S6.2 Som
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172 Part Two Design Figure S6.3 Tim
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174 Part Two Design Table S6.3 Expo
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176 Part Two Design a comparative s
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178 Part Two Design Operations in p
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180 Part Two Design The basic layou
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182 Part Two Design In functional l
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184 Part Two Design Figure 7.5 The
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186 Part Two Design shown with thre
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188 Part Two Design Table 7.2 The a
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190 Part Two Design Combinatorial c
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192 Part Two Design The general fun
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194 Part Two Design Heuristic proce
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196 Part Two Design Figure 7.16 (a)
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198 Part Two Design the total work
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200 Part Two Design Working from th
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230 Part Two Design Case study Roch
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236 Part Two Design Human resource
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238 Part Two Design Table 9.2 Cause
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240 Part Two Design ● Group resou
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242 Part Two Design Job design Job
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246 Part Two Design Figure 9.7 A ty
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248 Part Two Design asked to contri
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250 Part Two Design ● ● ● Eff
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252 Part Two Design Table 9.3 Examp
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254 Part Two Design Qualified worke
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256 Part Two Design Case study Serv
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258 Part Two Design 3 4 5 Step 1 -
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260 Part Two Design them. This mean
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262 Part Two Design Work measuremen
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264 Part Two Design Figure S9.1 Tim
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Chapter 10 The nature of planning a
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