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esources 7–8 business continuity 596 capabilities 65, 73–5 characteristics 240 constraints 73, 470, 483–4 distance 227 effective use 39 grouping 240 intangible 73, 667 processes, failures 576 profiles 483–4 projects 461, 469–70 see also transformed resources; transforming resources respect-for-humans system 434 responses, flexibility and 48 responsibilities of operations management 23–4 responsive supply chains 391 responsiveness to clients, projects 461 restaurants 87, 185, 211, 448 retail industry 140–1, 216–17, 397–8, 401–4, 650 see also supermarkets revenues 300 reverse engineering 118, 667 RFID (Radio Frequency Identification) 216–17, 219, 627 richness, e-business 214 risks of acceptance sampling 533, 534–5 assessments business continuity 596 ethical practice breaches 647 failures 573–85 deterioration 364 ethical practice breaches 647–8 global sourcing 383 identification 596 management 571–2 corporate social responsibility as 646–8 meaning 573 principles 574 see also failures mitigation 573, 592–3 obsolescence 349, 364 operational failure 39 reduction, speed and 43 reputational 643, 645, 646 sources 573 supply chains 400, 668 vulnerability of design option 120–1 river and rocks analogy 432–3 roadmap, SCOR 396 Robert Wiseman Dairies 292 robots 209–10, 211, 218, 667 robustness 202, 243 Rochem Ltd 230–1 Rocket Chemical Company 119 Roddick, Anita 646 ROL (re-order levels) 358, 360, 667 Rolls-Royce 407, 644 ROP (re-order points) 357–8, 362, 667 rostering 288, 667 rotation, jobs 246, 663 Rotterdam Educational Group (REG) 192–3 rough-cut capacity plans (RCCP) 428 routine services 71 Royal-Dutch Shell 583 RRP (resource requirements plans) 428 RSI (repetitive strain injury) 243, 644, 667 run-to-breakdown (RTB) maintenance 588–9, 667 Ryanair 61 safety inventories see inventories: buffer layouts 179 at work 251, 384 salads 310–11 sales e-business applications 214 functions 4–6, 18 Salisbury District Hospital 440 sampling plans 533–5 quality 507, 533–5 sandcone theory 616–17 sandwiches 97–9, 100–1, 286–8, 411–13 SAP 394, 407, 408, 410, 414–15, 417, 667 satisfaction, customers see customers Satyam Computer Services Ltd 414 scale of capacity 156 scale of process technology 222–3 scatter diagrams 558–9 SCC (Supply Chain Council) 394 scenario planning 171 schedule constraints 470–1 scheduling 284–9, 667 expert systems applications 216 levelled 430, 444–6, 663 schematic layouts 193 scientific management 97, 243–4, 259, 542, 551, 553, 667 SCOR (Supply Chain Operations Reference) model 374, 394–6 screening 117, 120–3, 660 seasonality 302, 304, 310–11, 315, 317 second-tier customers 140–1, 377, 667 second-tier suppliers see suppliers secondary functions 128 security, computers and Internet 577–8 self-assessment 623 sequencing 279–84, 324, 667 sequential approach to design 131 series relationships 470 serpentine flows 438 servers client–server networks 212 queuing theory 324 Service Adhesives 256–7 service-level agreements (SLA) 509–10, 548, 667 service operations 94–5, 96, 550 service prototypes 128–9 service shops 94–5, 96, 180, 667 services fail-safeing 587 failure recovery 594 flexibility 449 lean synchronization 448–9 legal 71 merging 14–15 operations producing 13–14 providers 14 substitution in place of products 643–4 varying types 317 waste in 448 see also products/services set-up times reduction 443, 667 Seven-Eleven Japan 398 shared success, partnership relationships 389 shared vision, risk management 574 shareholders’ performance objectives 38 sharing, jobs 247, 250 Shell 381, 394 shop-within-a-shop 183–4, 665 shops see retail industry; service shops; supermarkets short cycle time manufacturing see just-in-time short fat layout 200–2, 667 short-term capacity management 169 short-term capacity planning and control 299–300 short-term planning and control 270–1 short-term transactional relationship 388 short waiting tolerance 20 shortest operation time (SOT) sequencing 282, 283 Siemens 374, 394 Silicon Valley 151 simplicity 124–5 simulation 107, 117, 667 simultaneous development 131, 667 simultaneous engineering 131, 667 single-card kanbans 441–2 single factor productivity 50 single-loop learning 619 single-minute exchange of dies (SMED) 443, 667 single-sourcing 380, 667 sites 151 Six Sigma 542, 544, 545, 553–8, 565–8, 667 skills 13, 20, 57–8, 151, 249, 548 Skinner, Wickham 54 SKU (stock-keeping units) 355, 365 Index 683
684 Index Skunkworks 129 SLA (service-level agreements) 509–10, 548, 667 Slap.com 52–3 small-scale technology 439 smaller organisations 8–9 Smart car 90 smart products 217 smart tags 216 SMED (single-minute exchange of dies) 443, 667 Smith, Adam 242 smoothing exponential 172, 173–4 with inventory 158–9 SNCF 95 social dimension of corporate social responsibility 634, 636, 641–3 social responsibilities 24, 383–4, 667 see also corporate social responsibility societal pressures 646 society’s performance objectives 38 soft drinks industry 298 solution providers 410 Sony 51, 145 SOT (shortest operation time) 282, 283 Southwest Airlines 61 space inventories 432 use of 179 spacecraft 586 spam 577 Spangler 116 spatial containment of failures 593 spatially variable costs 148, 667 SPC see statistical process control specialist services 71 specifications 117–18 conformance to 498, 501, 502–8 range 522 specified jobs 254 speculation, degree of 276–7 speed 667 capacity planning and control 300 flexibility and 48 in-house supply 144 inventory roles 342 objectives 40, 42–3, 52, 53, 57–8, 69, 89, 101, 282 outsourced supply 144 overall equipment effectiveness 307–9 performance measures 607–8 process technology 223 sandcone theory 616–17 supply chains 376 spending, e-procurement and 382 sports equipment 418–20 SQA (supplier quality assurance) 668 SQL Slammer 577 square watermelons 120 Staats, Bradley 448 stability, dependability and 46 staff 13 conditions 179 continuity, projects 461 contributions 510 costs 48, 50, 147, 149, 223 development 434 health ideas from 118 involvement 433 organizational ethics, exposure to 644 performance objectives 38 productivity 608 representative bodies’ performance objectives 38 rostering 288 utilization 20, 55 well-being 643 see also human resources stagegates 467 stakeholder dimension of corporate social responsibility 634, 637, 644 stakeholders 37–9, 463–6, 668 standard performance 254, 668 standard time 263–4, 668 standardization 20, 96, 124, 129, 668 standards ethical 646 ISO 9000 513–14, 583, 641, 663 ISO 14000 640–1, 663 quality 504–7 Starbuck’s 87, 650 statistical process control (SPC) 444, 507, 520–36, 668 stock see inventories stock cover 365–6 stock holders 141 stock-keeping units (SKU) 355, 365 stock-outs see inventories stock turn 365–6 stockless production see just-in-time; lean storage 12, 347, 349 strategic decisions 62, 74–5, 145, 668 strategic objectives 23, 607 strategic partners 236 strategic targets 610 strategies corporate 65–6, 660 development 23 emergent 67, 661 functional 66, 662 meaning 62 human resources 236–8 linking improvement to 603–5 operations 24–5, 60–81, 664 projects 467 see also business strategies streamlined flows 436–40 stress 238, 295 structural decisions 74–5, 668 structural improvement cycles 555 structures 74–5 organizations see organizations products 123, 424–5, 666 work breakdown (WBS) 468, 669 subcontracting 314, 321, 668 subjective estimates of failures 583 substitution 593, 643–4 success 39 critical success factors (CSF) 415–16 project management 461–2 Sun Microsystems 151 supermarkets 40–1, 42, 44, 46, 49, 149, 178, 390, 448 supplier quality assurance (SQA) 668 suppliers corporate social responsibility 643 development decisions 75 e-business applications 214 ethics and 644 first-tier 140–1, 345, 377, 392–3, 662 internal 15, 509, 548, 663 performance objectives 38 second-tier 140–1, 345, 377, 393, 667 selection 379–81 supply changes in 147 and demand 272–7, 440–2 failures 574–5 performance 383 risks 383 seasonality 302 uncertainty in 273–4, 364 variability in 325 Supply Chain Council (SCC) 394 Supply Chain Operations Reference (SCOR) model 374, 394–6 supply chains agility 47, 377, 398, 400 behaviour 391–4 dynamics 392–4, 399, 668 efficient policies 391 flexibility 377 improvement 394–400 lean synchronization 447–9 management 217, 373–4 activities of 377–85 corporate social responsibility 383–4 effects of e-business 397 environmental issues 639 Extranets 213 global sourcing 382–4 logistics 377–8, 384, 385 materials management 377, 378 meaning 375–7 objectives 375 physical distribution management 377, 384–5 purchasing and 378–9, 381–2 social issues 642 supplier selection 379–81
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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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Key operations questions Chapter 4
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Chapter 4 Process design Key questi
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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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Chapter 5 The design of products an
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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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164 Part Two Design plastic, and ap
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166 Part Two Design of a failing Di
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Supplement to Chapter 6 Forecasting
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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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202 Part Two Design ● ● ● Hig
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204 Part Two Design Table 7.4 Stand
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Chapter 8 Process technology Key qu
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208 Part Two Design What is process
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210 Part Two Design be used where c
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212 Part Two Design Here we will ex
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214 Part Two Design E-business E-co
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216 Part Two Design Table 8.2 Examp
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218 Part Two Design Customer-proces
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220 Part Two Design ‘drive’ it.
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222 Part Two Design Figure 8.6 Diff
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224 Part Two Design Short case SVT
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226 Part Two Design Table 8.5 Prese
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228 Part Two Design Anticipating im
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230 Part Two Design Case study Roch
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232 Part Two Design Problems and ap
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234 Part Two Design Operations in p
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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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244 Part Two Design ● ● ● ●
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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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Key operations questions Chapter 10
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Chapter 10 The nature of planning a
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270 Part Three Planning and control
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276 Part Three Make-to-stock Planni
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282 Part Three Last-in first-out se
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Chapter 14 Enterprise resource plan
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Part Four IMPROVEMENT Even the best
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in both scientific management and m
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Chapter 19 Risk management Key ques
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● ● ● Chapter 19 Risk managem
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Risk mitigation actions Chapter 19
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■ ■ Chapter 19 Risk management
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Chapter 19 Risk management 599 1.24
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Chapter 20 Organizing for improveme
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● ● ● ● understand and beli
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Part Five CORPORATE SOCIAL RESPONSI
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