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 |  موضوع: كتاب Operations Management الأحد 27 يونيو 2021, 2:29 am | |
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Operations Management
Eleventh Edition
William J. Stevenson
Rochester Institute of Technology
و المحتوى كما يلي :
Brief Contents
Preface v
1 Introduction to Operations Management 2
2 Competitiveness, Strategy, and Productivity 40
3 Forecasting 72
4 Product and Service Design 132
SUPPLEMENT TO CHAPTER 4: Reliability 169
5 Strategic Capacity Planning for Products and Services 182
SUPPLEMENT TO CHAPTER 5: Decision Theory 212
6 Process Selection and Facility Layout 234
7 Work Design and Measurement 284
SUPPLEMENT TO CHAPTER 7: Learning Curves 320
8 Location Planning and Analysis 332
SUPPLEMENT TO CHAPTER 8: The Transportation Model 363
9 Management of Quality 370
10 Quality Control 418
SUPPLEMENT TO CHAPTER 10: Acceptance Sampling 462
11 Aggregate Planning and Master Scheduling 472
12 MRP and ERP 508
13 Inventory Management 554
14 JIT and Lean Operations 618
SUPPLEMENT TO CHAPTER 14: Maintenance 655
15 Supply Chain Management 662
16 Scheduling 700
17 Project Management 740
18 Management of Waiting Lines 792
19 Linear Programming 832
Appendix A: Answers to Selected Problems 864
Appendix B: Tables 879
Appendix C: Working with the Normal Distribution 887
Photo Credits 892
Company Index 893
Subject Index 894xxvii
Contents
Preface v
1 Introduction to Operations
Management 2
Introduction 4
Process Management 9
The Scope of Operations Management 11
Reading:
Why Manufacturing Matters 14
Why Learn about Operations Management? 14
Operations Management and Decision
Making 17
The Historical Evolution of Operations
Management 21
Operations Today 24
Key Issues for Today’s Business
Operations 27
Readings:
Universities Embrace Sustainability 29
Diet and the Environment: Vegetarian vs.
Nonvegetarian 29
Operations Tour:
Wegmans Food Markets 33
Summary 36
Key Points 36
Key Terms 36
Discussion and Review Questions 36
Taking Stock 37
Critical Thinking Exercises 37
Case:
Hazel 38
Selected Bibliography and Further Readings 38
2 Competitiveness, Strategy, and
Productivity 40
Introduction 42
Competitiveness 42
Mission and Strategies 44
Reading:
AMAZON Tops in Customer Service 45
Operations Strategy 52
Reading:
Productivity Gains Curb Inflation 53
Implications of Organization Strategy for
Operations Management 54
Transforming Strategy into Action:
The Balanced Scorecard 54
Productivity 56
Readings:
Why Productivity Matters 59
Productivity Improvement 62
Summary 63
Key Points 63
Key Terms 63
Solved Problems 63
Discussion and Review Questions 64
Taking Stock 65
Critical Thinking Exercises 65
Problems 65
Cases:
An American Tragedy: How a Good
Company Died 66
Home-Style Cookies 67
Hazel Revisited 69
“Your Garden Gloves” 69
Operations Tour:
The U.S. Postal Service 70
Selected Bibliography and Further Readings 71
3 Forecasting 72
Introduction 74
Features Common to All Forecasts 75
Elements of a Good Forecast 76
Forecasting and the Supply Chain 76
Steps in the Forecasting Process 77
Forecast Accuracy 77
Reading:
High Forecasts Can Be Bad News 78
Approaches to Forecasting 80
Qualitative Forecasts 80xxviii Contents
Forecasts Based on Time-Series Data 82
Associative Forecasting Techniques 98
Monitoring the Forecast 103
Choosing a Forecasting Technique 107
Using Forecast Information 109
Computer Software in Forecasting 109
Operations Strategy 109
Reading:
Gazing at the Crystal Ball 110
Summary 111
Key Points 112
Key Terms 114
Solved Problems 114
Discussion and Review Questions 120
Taking Stock 121
Critical Thinking Exercises 121
Problems 121
Cases:
M&L Manufacturing 130
Highline Financial Services, Ltd. 130
Selected Bibliography and Further Readings 131
4 Product and Service Design 132
Reading:
Design as a Business Strategy 134
Introduction 134
Reading:
Product Redesign, Not Offshoring, Holds Cost
Advantages for U.S. Manufacturers 135
Reading:
Dutch Boy Brushes Up Its Paints 136
Idea Generation 137
Reading:
Vlasic on a Roll with Huge Pickle Slices 138
Legal and Ethical Considerations 139
Human Factors 140
Reading:
Do You Want Pickled Beets with That? 141
Cultural Factors 141
Global Product and Service Design 141
Environmental Factors: Sustainability 142
Reading:
Best Buy Wants Your Junk 143
Reading:
Kraft Foods’ Recipe for Sustainability 144
Readings:
Xerox Diverts 2 Billion Pounds of
Waste from Landfills through Green
Initiatives 145
Recycle City: Maria’s Market 146
Other Design Considerations 147
Phases in Product Design and Development 157
Designing for Production 157
Service Design 160
Reading:
The Challenges of Managing Services 164
Operations Strategy 164
Summary 165
Key Points 165
Key Terms 165
Discussion and Review Questions 166
Taking Stock 166
Critical Thinking Exercises 166
Problems 167
Operations Tour:
High Acres Landfill 168
Selected Bibliography and Further Readings 168
SUPPLEMENT TO CHAPTER 4: Reliability 169
5 Strategic Capacity Planning for
Products and Services 182
Introduction 183
Reading:
Excess Capacity Can Be Bad News! 184
Capacity Decisions Are Strategic 185
Defining and Measuring Capacity 186
Determinants of Effective Capacity 187
Reading:
Less Trash Leaves Landfills in a Bind 188
Strategy Formulation 190
Forecasting Capacity Requirements 190
Additional Challenges of Planning Service
Capacity 192
Do It In-House or Outsource It? 193
Reading:
My Compliments to the Chef, er, Buyer 194
Developing Capacity Strategies 194
Constraint Management 199
Evaluating Alternatives 199Contents xxix
Operations Strategy 204
Summary 205
Key Points 205
Key Terms 206
Solved Problems 206
Discussion and Review Questions 208
Taking Stock 208
Critical Thinking Exercises 208
Problems 208
Case:
Outsourcing of Hospital Services 211
Selected Bibliography and Further Readings 211
SUPPLEMENT TO CHAPTER 5:
Decision Theory 212
6 Process Selection and
Facility Layout 234
Introduction 236
Process Selection 236
Operations Tour:
Morton Salt 240
Technology 243
Reading:
Tour de Force 247
Process Strategy 248
Strategic Resource Organization: Facilities
Layout 248
Reading:
Designing Supermarkets 258
Designing Product Layouts:
Line Balancing 259
Reading:
BMW’s Strategy: Flexibility 267
Designing Process Layouts 267
Summary 272
Key Points 272
Key Terms 272
Solved Problems 273
Discussion and Review Questions 276
Taking Stock 277
Critical Thinking Exercises 277
Problems 277
Selected Bibliography and Further Readings 283
7 Work Design and Measurement 284
Introduction 285
Quality of Work Life 285
Reading:
Choosing Incentive Plans 289
Job Design 291
Methods Analysis 295
Motion Study 299
Work Measurement 301
Operations Strategy 313
Summary 313
Key Points 314
Key Terms 315
Solved Problems 315
Discussion and Review Questions 316
Taking Stock 316
Critical Thinking Exercise 316
Problems 317
Case:
Making Hotplates 319
Selected Bibliography and Further Readings 319
SUPPLEMENT TO CHAPTER 7:
Learning Curves 320
8 Location Planning and Analysis 332
The Need for Location Decisions 333
The Nature of Location Decisions 334
Global Locations 336
Reading:
Not-So-Clear Choices: Should You Export,
or Manufacture Overseas? 338
General Procedure for Making Location
Decisions 340
Identifying a Country, Region, Community,
and Site 341
Reading:
Innovative MCI Unit Finds Culture Shock
in Colorado Springs 341
Service and Retail Locations 348
Readings:
Vying for Patients, Hospitals Think Location,
Location 349
Clicks or Bricks, or Both? 350
Evaluating Location Alternatives 350
Summary 356
Key Points 356
Key Terms 356
Solved Problems 357
Discussion and Review Questions 358xxx Contents
Taking Stock 358
Critical Thinking Exercises 358
Problems 359
Case:
Hello, Walmart? 362
Selected Bibliography and Further Readings 362
SUPPLEMENT TO CHAPTER 8:
The Transportation Model 363
9 Management of Quality 370
Introduction 371
Reading:
Whatever Happened to Quality? 372
Insights on Quality Management 373
Readings:
The Sounds of Quality 375
Medical Mistakes Kill Almost 98,000 a Year 378
Hyundai: Kissing Clunkers Goodbye 379
Recipe for Business Success: Quality 380
The Evolution of Quality Management 382
The Foundations of Modern Quality Management:
The Gurus 383
Quality Awards 386
Quality Certification 387
Quality and the Supply Chain 389
Reading:
Improving Quality and Reducing Risk
in Offshoring 390
Total Quality Management 390
Reading:
What Keeps Six Sigma Practitioners Up
at Night? 395
Problem Solving 396
Process Improvement 398
Quality Tools 399
Readings:
Continuous Improvement on the
Free-Throw Line 404
Benchmarking Corporate Web Sites of
Fortune 500 Companies 409
Operations Strategy 409
Summary 409
Key Points 410
Key Terms 410
Solved Problem 410
Discussion and Review Questions 411
Taking Stock 412
Critical Thinking Exercises 412
Problems 412
Cases:
Chick-n-Gravy Dinner Line 414
Tip Top Markets 415
Selected Bibliography and Further Readings 417
10 Quality Control 418
Introduction 419
Inspection 420
Reading:
In the Chips at Jays 423
Statistical Process Control 425
Process Capability 443
Operations Strategy 448
Reading:
Bar Codes Might Cut Drug Errors in
Hospitals 448
Summary 449
Key Points 449
Key Terms 449
Solved Problems 450
Discussion and Review Questions 454
Taking Stock 455
Critical Thinking Exercises 455
Problems 455
Cases:
Toys, Inc. 460
Tiger Tools 460
Selected Bibliography and Further Readings 461
SUPPLEMENT TO CHAPTER 10:
Acceptance Sampling 462
11 Aggregate Planning and Master
Scheduling 472
Introduction 474
Reading:
Duplicate Orders Can Lead to Excess
Capacity 478
Basic Strategies for Meeting Uneven
Demand 481
Techniques for Aggregate Planning 484
Aggregate Planning in Services 491Contents xxxi
Disaggregating the Aggregate Plan 493
Master Scheduling 493
The Master Scheduling Process 494
Summary 498
Key Points 499
Key Terms 500
Solved Problems 500
Discussion and Review Questions 502
Taking Stock 503
Critical Thinking Exercise 503
Problems 503
Case:
Eight Glasses a Day (EGAD) 507
Selected Bibliography and Further Readings 507
12 MRP and ERP 508
Introduction 509
An Overview of MRP 510
MRP Inputs 512
MRP Processing 515
MRP Outputs 523
Other Considerations 523
MRP in Services 525
Benefits and Requirements of MRP 525
MRP II 526
Capacity Requirements Planning 528
ERP 530
Readings:
The ABCs of ERP 532
The Top 10 ERP Mistakes 536
Tips for Successful ERP Projects 538
Operations Strategy 538
Summary 538
Key Points 539
Key Terms 539
Solved Problems 539
Discussion and Review Questions 542
Taking Stock 543
Critical Thinking Exercises 543
Problems 543
Cases:
Promotional Novelties 549
DMD Enterprises 549
Operations Tour:
Stickley Furniture 550
Selected Bibliography and Further Readings 552
13 Inventory Management 554
Introduction 556
Reading:
$$$ 556
The Nature and Importance of Inventories 556
Requirements for Effective Inventory
Management 559
Reading:
Radio Frequency Identification (RFID) Tags 561
Inventory Ordering Policies 566
How Much to Order: Economic Order Quantity
Models 566
Reorder Point Ordering 578
How Much to Order: Fixed-Order-Interval
Model 585
The Single-Period Model 588
Operations Strategy 593
Summary 593
Key Points 593
Key Terms 595
Solved Problems 595
Discussion and Review Questions 601
Taking Stock 601
Critical Thinking Exercises 601
Problems 601
Cases:
UPD Manufacturing 609
Harvey Industries 609
Grill Rite 611
Farmers Restaurant 612
Operations Tours:
Bruegger’s Bagel Bakery 613
PSC, Inc. 614
Selected Bibliography and Further Readings 616
14 JIT and Lean Operations 618
Introduction 620
Reading:
Toyota Recalls 621
Supporting Goals 622
Building Blocks 623
Readings:
General Mills Turns to NASCAR to Reduce
Changeover Time 626xxxii Contents
Pedal Pushers 629
“People” Firms Boost Profits, Study Shows 631
Value Stream Mapping 641
Reading:
Nearby Suppliers Match Ford’s Mix 643
Transitioning to a Lean System 643
Lean Services 645
Reading:
To Build a Better Hospital, Virginia Mason
Takes Lessons from Toyota Plants 646
JIT II 647
Operations Strategy 648
Summary 648
Key Points 649
Key Terms 649
Solved Problems 650
Discussion and Review Questions 650
Taking Stock 651
Critical Thinking Exercises 651
Problems 651
Case:
Level Operations 652
Operations Tour:
Boeing 652
Selected Bibliography and Further Readings 653
SUPPLEMENT TO CHAPTER 14:
Maintenance 655
15 Supply Chain Management 662
Introduction 663
Reading:
Veggie Tales 666
Trends in Supply Chain Management 667
Global Supply Chains 669
Management Responsibilities 670
Procurement 671
Reading:
IBM’s Supply Chain Social Responsibility 674
E-Business 675
Readings:
Desperately Seeking E-Fulfillment 676
E-Procurement at IBM 677
Supplier Management 678
Reading:
NestléUSA and Ocean Spray Form Strategic
Operations Alliance 680
Inventory Management 681
Order Fulfillment 682
Logistics 683
Operations Tour:
Wegmans’ Shipping System 684
Readings:
Springdale Farm 686
RFID Tags: Keeping the Shelves
Stocked 686
Active RFID vs. Passive RFID 687
Rise of the 3PL 688
Creating an Effective Supply Chain 689
Strategy 694
Summary 694
Key Points 695
Key Terms 695
Discussion and Review Questions 695
Taking Stock 695
Critical Thinking Exercises 696
Problems 696
Cases:
Master Tag 696
B&L Inc. 697
Selected Bibliography and Further Readings 698
16 Scheduling 700
Scheduling Operations 702
Scheduling in Low-Volume Systems 705
Scheduling Services 723
Reading:
Servicing Passenger Planes 725
Operations Strategy 727
Summary 727
Key Points 728
Key Terms 728
Solved Problems 728
Discussion and Review Questions 732
Taking Stock 732
Critical Thinking Exercises 732
Problems 733
Case:
Hi-Ho, Yo-Yo, Inc. 738
Selected Bibliography and Further Readings 739
17 Project Management 740
Introduction 742
Project Life Cycle 742
Behavioral Aspects of Project Management 744Contents xxxiii
Reading:
Project Managers Have Never Been
More Critical 747
Work Breakdown Structure 748
Planning and Scheduling with Gantt Charts 749
PERT and CPM 750
Deterministic Time Estimates 753
A Computing Algorithm 754
Probabilistic Time Estimates 761
Determining Path Probabilities 764
Simulation 766
Budget Control 767
Time–Cost Trade-Offs: Crashing 767
Advantages of Using PERT and Potential
Sources of Error 770
Critical Chain Project Management 771
Other Topics in Project Management 771
Project Management Software 772
Operations Strategy 773
Risk Management 773
Summary 774
Key Points 775
Key Terms 775
Solved Problems 775
Discussion and Review Questions 781
Taking Stock 782
Critical Thinking Exercises 782
Problems 782
Cases:
The Case of the Mexican Crazy Quilt 789
Time, Please 790
Selected Bibliography and Further Readings 790
18 Management of Waiting Lines 792
Why Is There Waiting? 794
Managerial Implications of Waiting Lines 795
Reading:
New Yorkers Do Not Like Waiting in Line 795
Goal of Waiting-Line Management 795
Characteristics of Waiting Lines 796
Measures of Waiting-Line Performance 800
Queuing Models: Infinite-Source 801
Queuing Model: Finite-Source 815
Reading:
Hotels Exploring Easier Customer
Check-ins 820
Constraint Management 821
The Psychology of Waiting 821
Readings:
David H. Maister on the Psychology
of Waiting 822
Managing Waiting Lines at Disney
World 823
Operations Strategy 823
Summary 823
Key Points 824
Key Terms 824
Solved Problems 824
Discussion and Review Questions 826
Taking Stock 826
Critical Thinking Exercises 826
Problems 827
Case:
Big Bank 830
Reading:
Stopped at a Light? Why Not Read This, You
May Have Time 830
Selected Bibliography and Further Readings 831
19 Linear Programming 832
Introduction 833
Linear Programming Models 834
Graphical Linear Programming 836
The Simplex Method 848
Computer Solutions 848
Sensitivity Analysis 851
Summary 854
Key Points 854
Key Terms 854
Solved Problems 854
Discussion and Review Questions 857
Problems 857
Cases:
Son, Ltd. 861
Custom Cabinets, Inc. 862
Selected Bibliography and Further Readings 863
Appendix A: Answers to Selected Problems 864
Appendix B: Tables 879
Appendix C: Working with the Normal
Distribution 887
Photo Credits 892
Company Index 893
Subject Index 894
Subject Index
Note: Boldface entries indicate key terms and the
page numbers where they are defined; page numbers followed by n refer to notes.
A-B-C approach, 563–565
Acceptable quality level (AQL), 464–465
Acceptance sampling; see also Quality control
acceptable quality level, 464–465
average quality of inspected lots, 467–468
defined, 462
inspection, 256, 420–425
operating characteristic curve, 464–467
sampling plans, 463
Accidents, causes of, 286–287
Accounting
costs, 633
forecasting and, 74
function of, 16, 672
Accuracy, in forecasting, 74, 77–80
Activities, 750
Activity-based costing, 633
Activity-on-arrow (AOA), 750–752, 754–758
Activity-on-node (AON), 750–752, 758–759
Actual output, 186–187
Actual time, 821
Adams, Bob, 290
Additive model, 94
Advertising and promotion, 42, 478
Aggregate planning, 473–507; see also
Inventory management
concept of aggregation, 475–476
defined, 473
demand and supply, 477, 479
disaggregating the plan, 493
goal of, 473
inputs to, 477, 495
linear programming, 488–490
master scheduling, 475, 493–498, 512
mathematical techniques, 488–491
need for, 476
outputs, 495–498
overview of, 476–477
planning levels, 474
in services, 491–492
simulation models, 491
summary of, 499
supply chain, 477
techniques for, 484–491
trial-and-error techniques, 484–488
uneven demand, strategies for meeting,
481–483
variations, 476
Agile manufacturing, 54
Agility, 26–27, 54
Ahire, S. L., 394n, 417
Algorithm, use in PERT, 754–761
Allison-Koerber, Deborah, 108
Allowance factor, in time studies, 305
Alpha risk, 429
American Production and Inventory Control
Society (APICS), 17, 565
American Society for Quality (ASQ), 17, 372, 382
Analysis
capability, 444–446
cost-profit-volume, 351–352
cost-volume, 200–203
feasibility, 157, 742
financial, 203–205
job, 295–299
methods, 295–299
multiple regression, 103
Pareto, 402
process, 26
sensitivity, 220–221, 851–853
supplier, 678
SWOT, 47
value, 143, 145
waiting line, 204
Andon, 632
Angus, Robert B., 790
Ansari, Shahid, 417
Anticipation stocks, 558
AOQ, 467–468
APICS, 17, 565
Applied research, 137
Appointment systems, 724
Appraisal costs, 380–381
Apte, Uday M., 283
AQL, 464–465
Argote, Linda, 330
Armony, Mor, 478
Armstrong, Larry, 379
Arrival patterns, 797–800
Ashkenas, Ronald N., 791
Assemble-to-order (ATO), 682
Assembly, 238
Assembly diagram, 512–513
Assembly line, 12, 22–23, 238, 249
Assembly time chart, 515–516
Assignable variation, 10, 426
Assignment model, 709–712
Associative forecasting techniques, 80, 98–103
Associative model, 80
Atkinson, Roy, 372
Attributes, 430, 435–438
Audits, of suppliers, 678–679
Automation
advantages, 243–244
computer-aided manufacturing (CAM), 245
computer-integrated manufacturing, 246
defined, 243
disadvantages, 244
fixed, 245
flexible, 246, 256
numerically controlled (N/C), 245
programmable, 245
robots, 245
in services, 258
Autonomation, 620, 626
Availability, 175–176, 186
Available-to-promise (ATP) inventory,
496, 498
Average, moving, 84–86, 95–96
Average outgoing quality (AOQ), 467–468
Average outgoing quality limit (AOQL), 468
Average quality of inspected lots, 467–468
Averaging techniques, 83–88
Avoidance, 691
Awad, Elias M., 298
Awards, for quality, 384, 386–387
Baatz, E., 532
Bacal, Robert, 294n
Back orders, 478–479
Backflushing, 525
Backward scheduling, 708
Bakke, N. A., 211
Balance delay, 262
Balanced Scorecard, 54–56
Balanced systems, 627–628
Balancing transactions, 640
Baldrige, Malcolm, 386
Baldrige Award, 386–387
Baldwin, Carliss C., 168
Balking, 800
Ballou, Ronald H., 362
Banham, Russ, 338–339
Bar coding, 448, 560–561
Barnes, Ralph M., 319
Bartholomew, Doug, 538
Bartlett, Christopher A., 51n, 71
Basic research, 137
Batch processing, 237
Bateman, Nicola, 654
Behavioral approach
to job design, 292–293
to project management, 744–748
Behavioral school, 291
Belkauoi, Ahmed, 330
Bell, Janice, 417
Benchmarking, 392, 408–409
Bender, Paul S., 698
Bennett, Wayne D., 552
Bernstein, Aaron, 71
Berry, Julie, 611
Berry, Leonard L., 374n, 376n
Berry, William L., 507, 552, 622, 653, 739
Best practices, of design, 135–136
Besterfield, Dale H., 417, 461
Besterfield, Glen, 417
Besterfield-Micha, Carol, 417
Besterfield-Sacre, Mary, 417
Beta distribution, 761
Bias, 105, 438Subject Index 895
Bierman, Harold, 368
Bill of materials (BOM), 512–515, 525
Billington, C., 692n
Binding constraints, 847
Black, Cherie, 647
Black belts, 393–394
Blackburn, Joseph D., 71
Blanket purchase orders, 672–673
Blueprint, for services, 162–163
Blumberg, Donald F., 698
BOM, 512–515, 525
Bonini, Charles P., 368
Bonus, 289
Bottleneck operation, 195–196, 204, 266,
722–723
Bounded rationality, 213–214
Bowersox, Donald J., 698
Bowie, Norman E., 38
Brainstorming, 407
Brandimarte, P., 507
Branding, 7
Brassard, Michael, 417
Break-even point (BEP), 200–203
Breakdown maintenance, 656
Breakdown programs, 659
Bribery, 338
Brice, Virginia, 89n
Bricks and mortar company, 676
Bridger, R. S., 319
B2B, 676, 677
Budgeting, 15
Buffa, Elwood, 831
Buffers, inventory, 558, 681
Bulfin, Robert, Jr., 507
Bullwhip effect, 681
Burt, David N., 698
Bushong, J. Gregory, 739
Business organizations
functions within, 4, 15–16
trends, 24–27
Business plan, 474–475
Business process management (BPM), 10
Business processes, 9–11
Business-to-business (B2B) commerce, 676, 677
Butman, John, 417
Buxey, G., 507
C-chart, 436–438
C-kanban, 636
CAD, 158–159, 772
Caldwell, Philip, 621
Calkins, Patricia, 145
CAM, 245
Capability analysis, 444–446
Capability index, 445–447
Capacity, 183
Capacity buffers, 771
Capacity chunks, 196
Capacity costs, 795–796
Capacity cushion, 190
Capacity disposal strategies, 205
Capacity planning, 182–211; see also Aggregate
planning
airline industry, 11
constraint management, 199, 821
cost-volume analysis, 200–203
defining and measuring, 186–187
determining requirements, 192
enhancing, 194–198
evaluating alternatives, 199–204
factors affecting, 187–189
forecasting, 190–192
goal of, 183
importance of, 185
long term, 190, 192
make or buy, 193–194
planning service capacity, 192–193
rough-cut, 494–495
short term, 190
steps in the process, 190
strategy formulation, 190
volatility of demand, 192–193
Capacity requirements planning, 528–530
Capacity utilization, 187
Capital productivity, 58
Caputo, Michael, 188
Carbon footprint, 28, 242
Carbone, James, 677
Carlisle, Brian, 319
Carrying costs, 562, 566–570
Carvajal, Doreen, 349
Cascio, Wayne, 319
Cases
An American Tragedy: How a Good
Company Died, 66–67
Big Bank, 830
B&L Inc., 697–698
The Case of the Mexican Crazy Quilt, 789–790
Chick-n-Gravy Dinner Line, 414
Custom Cabinets, Inc , 862–863
DMD Enterprises, 549
Eight Glasses a Day (EGAD), 507
Farmers Restaurant, 612
Grill Rite, 611
Harvey Industries, 609–611
Hazel, 38
Hazel Revisited, 69
Hello, Walmart?, 362
Hi-Ho Yo-Yo, Inc., 738–739
Highline Financial Services, Ltd., 130
Home-Style Cookies, 67–69
Level Operations, 652
Making Hotplates, 319
MasterTag, 696–697
M&L Manufacturing, 130
Outsourcing of Hospital Services, 211
Product Recall, 330
Promotional Novelties, 549
Son, Ltd., 861
Tiger Tools, 460–461
Time, Please, 790
Tip Top Markets, 415–416
Toys, Inc., 460
UPD Manufacturing, 609
“Your Garden Gloves,” 69
Cash flow, 203
Causal variables, 80
Cause-and-effect diagrams, 385, 403–404
Cell, 253
Cellular layouts, 253–256; see also Facilities
layout
Cellular production, 253–256
Center of gravity method, 354–356
Centered moving average, 95–96
Central limit theorem, 426
Centralized inspection, 425
Centralized inventory management, 681
Centralized purchasing, 673–674
Certainty, 214–215
Certification
of employees, 17
of project managers, 748
of quality, 387–389
of suppliers, 638, 679
Chakrapani, C., 417
Chalice, Robert, 653
Change, technological, 48–49, 60–61
Change transactions, 640
Changeover time, 54, 626
Changes, 523
Channel, 797
Chapman, Chris, 790
Chase demand strategy, 481–483
Check sheet, 399
Chen, Injazz, 698
Chi-square goodness-of-fit test, 799
CIM, 246
Clark, Andrew, 404–405
Clark, Kim B., 168
Clark, Timothy, 404–405
Classification systems, 563–566
Cleland, David I., 790
Clements, James P., 790
Click and brick companies, 676
Clicks-or-bricks model, 350
Climate, impact on location decisions, 344
Closed-loop MRP, 527
Closed-loop supply chain, 692
Closeness ratings, 270–271
Closs, David J., 698
Clustering, 349
Coburn, Larry, 372–373
Cohen, Morris A., 283
Column reduction, 710
Colvin, Geoffrey, 38, 71
Combination layouts, 252–253
Common Good Principle, 30
Community factors, in location decisions, 345–346
Compensation, 287–290
Competition, time-based, 475
Competitive edge, 47
Competitiveness, 42–44
Component commonality, 159–160
Computer-aided design (CAD), 158–159, 772
Computer-aided manufacturing (CAM), 245
Computer applications
CAD, 158–159, 772
CIM, 246
e-business, 24, 32, 675–677
e-commerce, 24, 535–536
e-procurement, 24, 677
EDI, 677
ERP, 530–538, 643
for forecasting, 109
GIS, 348
linear programming, 848–851
Computer-integrated manufacturing
(CIM), 246896 Subject Index
Computer viruses, 61
Computerized numerical control (CNC), 245
Computing algorithm, 754–761
Concurrent engineering, 157–158, 624
Conformance, quality of, 376–377
Constant lead time, 586
Constant service time, 804–805
Constant work-in-process (CONWIP), 638
Constrained optimization, 833
Constraint management, 199, 821
Constraints
binding, 847
categories of, 199
defined, 199, 834
plotting, 838–841
redundant, 844–845
theory of, 722–723
Construction costs, 198
Consumer price index (CPI), 101
Consumer surveys, used to forecast, 81
Consumer’s risk, 430, 465
Continual inventory system, 560
Continuous improvement, 392, 404–405, 632;
see also Quality
Continuous processing, 238
Continuous stocking levels, 589–590
Contractors, independent, 480
Contracts, long term, 679
Contribution margin, 200
Control, 5, 13
Control charts
attributes, 430, 435–438
defined, 103, 403, 428
errors, 429–430
forecasting and, 103–104
mean, 430–435
nonrandom patterns, 439, 442–443
process, 427–428
range, 432–435
run tests, 438–442
for variables, 430–435
when to use, 438
Control limits, 428–429, 443
Control process, 427–428
Conversion process, 4
Conveyance kanban, 636
CONWIP, 638
Cooper, M. Bixby, 698
Corbett, James J., 668n, 698
Core competencies, 47
Corner points, 845
Corrective action, 4
Correlation, 101
Cost accounting, 633
Cost analysis, 809–811
Cost-profit-volume analysis, 351–352
Cost reduction, 42
Cost-volume analysis, 200–203
Costs
activity based, 633
appraisal, 380–381
capacity, 795–796
carrying, 562, 566–570
construction, 198
distribution, 198
ERP, 533–535
excess, 588–589
failure, 381
fixed, 193, 198, 200, 351–352
holding, 562, 688
inspection, 420
maintenance, 656, 657
opportunity, 478
ordering, 562, 566–570
overhead, 633
prevention, 381
processing, 198
quality, 380–381, 385, 447
rework, 381
setup, 704–705
shortage, 562–563, 588–589
total, 351–352, 533
transportation, 268–269, 336, 341, 343, 693
variable, 200, 351–352
Council of Supply Chain Management Professionals, 17
Counting systems, for inventory, 560–561
Cox, Jeff, 739
C
p, 445–446
C
pk, 446–447
CPM (Critical path method), 19, 750–753;
see also PERT (Program evaluation
and review technique)
CR (critical ratio), 712, 716
Cradle-to-grave assessment, 142
Craft production, 21
Crainer, Stuart, 38
Crandall, Robert L., 725, 727
Crash
defined, 768
project management and, 767–770
Creeping featurism, 141
Critical activities, 751
Critical chain project management (CCPM), 771
Critical path, 751
Critical path method (CPM), 19, 750–753
Critical ratio (CR), 712, 716
Crosby, Philip B., 381, 385
Cross-docking, 593, 693
Cross training, 267, 631
CRP, 528–530
Cullinane, Thomas P., 790
Culture, impact on design, 141
Cumulative lead time, 512
Cunningham, J. Barton, 319
Customer satisfaction, 26, 391, 559
Customization
degree of, 20
mass, 149–151
Cycle, 82–83, 98, 438
Cycle counting, 565–566
Cycle stock, 566
Cycle time, 260–262, 638
Cyclical scheduling, 726
Danner, David L., 319
Darnell, Michele, 138
Databases, 50–51
Davenport, Tom, 552
Davis, Mark M., 168
Davis, Stanley B., 417, 461
Decentralized inventory management, 681
Decentralized purchasing, 673–674
Decision making
capacity planning; see Capacity planning
causes of poor, 213–214
under certainty, 214–215
decision areas, 53
decision trees, 217–219
design and operating decisions, 13
establishing priorities, 20–21
ethics and, 29–30
expected monetary value criterion, 216–217
expected value of perfect information, 219–220
hierarchical organizations, 45–46
location, 33
models, 18–19, 24
process of, 212–213
quantitative approaches, 19, 24
under risk, 216–217
sensitivity analysis, 220–221, 851–853
systems approach, 20
trade-offs, 19
under uncertainty, 215–216
Decision Sciences Institute, 17
Decision table, 591
Decision theory, 204, 212–232, 724; see also
Decision making
Decision trees, 217–219
Decision variables, 834–835
Decline phase, 148, 195
Decoupling, 558
Defects, zero, 382, 385
Define, measure, analyze, improve, and control
(DMAIC), 394
Delayed differentiation, 150, 693
Delivery time, 54
Dell, Michael, 50
Delphi method, 81
Delurgio, Stephen, 131
Demand
aggregate planning, 477, 479
common patterns, 191
dependent, 509–510
fluctuations in, 196–197
forecasting of, 562
independent, 510
lumpy, 510, 692
meeting uneven, 481–483
new, 479
seasonal, 191, 196–197
variations in, 476
volatility of, 192–193
Demand chain, 665
Demand fence, 528
Deming, W. Edwards, 24, 372, 384, 387
Deming Prize, 384, 387
Deming wheel, 397
Dependent demand, 509–510
Depth skills, 290
Derman, C., 461
Design, of products and services, 132–168
activities and responsibilities, 134
availability, 175–176, 186
best practices, 135–136
capacity; see Capacity planning
component commonality, 159–160
computer-aided design, 158–159, 772
concurrent engineering, 157–158, 624
cultural issues, 141
degree of newness, 152–153Subject Index 897
elements of, 623–624
ethical issues, 139–140
global, 141–142
human factors, 140–141
idea generation, 137
Kano model, 155–156
legal issues, 139–140
life cycles; see Life cycles
mass customization, 149–151
phases, 147–149, 157
production, 157–160
production requirements, 159
products versus services, 161–162
quality, 376–377
quality function deployment, 153–155
reasons for, 135
recycling, 145–147, 188
redesign, 135–136
reliability, 151–152, 169–181
remanufacturing, 143–144
research and development, 137
reverse engineering, 137
robust design, 152
services, 160–164
standardization, 61, 149, 624
sustainability, 142–147
technology changes, 135
value analysis, 143, 145
Design capacity, 186
Design for assembly (DFA), 159
Design for disassembly (DFD), 144
Design for manufacture and assembly
(DFMA), 135
Design for manufacturing (DFM), 159
Design for recycling (DFR), 145
Design of experiments, 152
Design review, 157
Deterministic time estimates, 753–754
Dettmer, H. William, 199n, 211
DeWeaver, Mary Feeherry, 790
Dewhurst, Nicholas P., 135–136
Differentiation, delayed, 150, 693
Diffusion models, 89
Dimensions of quality, 373–375
Direct numerical control (DNC), 245
Disaggregation, 493
Discounts, quantity, 558, 573–577
Discrete stocking levels, 590–592
Diseconomies of scale, 197–198
Disintermediation, 693
Distribution costs, 198
Distribution decisions, 33
Distribution function, 13
Distribution requirements planning (DRP), 530
Division of labor, 23
DMAIC, 394
Dobler, Donald W., 698
Dodge, H. F., 24, 382
Double-sampling plans, 463
Double smoothing, 92
Downsizing, 26
DRP, 530
Drum-buffer-rope technique, 722
Due date, rule for sequencing, 712
Dummy activity, 751
Duncan, A. J., 471
Dunn, Brian, 143
Duray, Rebecca, 168
Dynamic line balancing, 267
E-business, 24, 32, 675–677
E-commerce, 24, 535–536
E-procurement, 24, 677
Earliest due date (EDD), 712–717
Ease of use, 377
Eberle, Ted, 319
Economic indicators, 101
Economic lot sizes, 558
Economic order quantity (EOQ)
basic model, 566–570
defined, 566
economic production quantity, 570–573
fixed-order-interval model, 585–588
in MRP, 524–525
quantity discounts, 558, 573–577
reorder points, 578–585
single-period model, 588–592
versus small lot sizes, 624–625
Economic production quantity (EPQ), 570–573
Economies of scale, 21, 197–198
EDD (earliest due date), 712–717
EDI, 677
Edmondson, Gail, 380
Effective capacity, 186
Efficiency, 20, 62, 187
Efficiency school, 291
Ehrsam, Fred, 339
Eidam, Michael, 379
80/20 rule, 402
El-Haik, Basem, 417, 653
Electronic commerce, 24, 535–536
Electronic data interchange (EDI), 677
Electronic junk, 143
Emerson, Harrington, 22
Employment, 9, 13–14
Empowerment, 392, 407
End-of-life (EOL) programs, 142
Energy productivity, 58
Engineer-to-order (ETO), 682
Engineering
concurrent, 157–158, 623
reverse, 137
Engineering changes, 624, 640
Englund, Randall L., 790
Enrick, Norbert L., 471
Enterprise resource planning (ERP), 530–538,
643, 669; see also Material requirements planning (MRP)
Enumeration approach, 845
Environment
end-of-life programs, 142
ISO 14000, 387–389
recycling, 145–147, 188
sustainability, 28–29, 46, 142–147, 242, 668
Environmental Protection Agency, 139
Environmental scanning, 47–48
EOQ; see Economic order quantity (EOQ)
Eppen, G. D., 232
Eppinger, Steven D., 168
Epple, Dennis, 330
Equivalent current value, 204
Equivalent interest rate, 204
Ergonomics, 294–295
Erlang, A. K., 794
ERP, 530–538, 643
Errors, 78–80, 103–107, 429–430
Esain, Ann, 654
Ethical framework, 30
Ethics
codes for, 30
decision making, 29–30
defined, 30
design issues, 139–140
global, 338
location decisions and, 346
project management, 746
purchasing, 674
quality, 382
and supply chains, 670
working conditions, 287
European Quality Award, 387
Evans, James R., 374n, 461
Evans, P., 71
Event management, 690
Events, 750
Exception reports, 523
Excess capacity, 10
Excess cost, 588–589
Executive opinions, used to forecast, 80–81
Expand-early strategy, 205
Expected monetary value (EMV) criterion,
216–217
Expected value of perfect information
(EVPI), 219–220
Experiments, design of, 152
Explanatory variables, 80
Explicit services, 160
Exponential service time, 803–804
Exponential smoothing, 87–88
External failures, 381
Eyring, Veronika, 668n
Fabrication, 12
Facilities layout; see also Process selection and
design
capacity, 188
cellular layouts, 253–256
combination layouts, 252–253
fixed position, 249, 252
flexible-manufacturing systems, 246, 256
information requirements, 268
line balancing
cycle time, 260–262
defined, 259
flow systems, 703–704
guidelines for, 263–264
JIT, 627–628
mixed model line, 267
parallel workstations, 266
precedence diagram, 261, 750–751
measuring effectiveness, 268
need for planning, 248
objectives of, 248–249
problems with poor, 248
process layouts, 251–252, 267–272
product layouts, 249–251, 259–267
service layouts, 256–258
transportation issues, 268–269
u-shaped layouts, 250–251
Facilities location; see Location planning
Factor rating, 353–354898 Subject Index
Fail-safing, 391, 630–631
Failure
defined, 151
external, 381
internal, 381
Failure costs, 381
Failure rates, 171–172
Fairness Principle, 30
Fazel, Farzaneh, 395n, 417
FCFS (first come, first served), 712–717, 800
Feasibility, range of, 853
Feasibility analysis, 157, 742
Feasible solution space, 834–835, 841
Feedback, 4, 13
Feeding buffers, 771
Feigenbaum, Armand, 384–385
Feitzinger, Edward, 168
Fences, time, 495
Ferdows, Kasra, 362
Fill rate, 584, 690
Finance function, 4, 15–16, 74
Financial analysis, 203–205
Finite element analysis (FEA), 158–159
Finite loading, 706–707
Finite-source situation
defined, 797
queuing models, 815–820
Finucane, James, 341
First come, first served rule, 712–717, 800
Fishbone diagram, 385, 403
Fitness, 139
Fitness-for-use, 374, 384
Fitzgerald, Kevin R., 671, 698
Fitzsimmons, James A., 38, 160n, 168
Fitzsimmons, Mona J., 38, 160n, 168
5W2H approach, 642
Fixed automation, 245
Fixed costs, 193, 198, 200, 351–352
Fixed-order-interval model, 585–588
Fixed-period ordering, 525
Fixed-position layout, 249, 252; see also
Facilities layout
Flapper, Simme Douwe P., 698
Flattening, of the organization, 27
Flexibility, 42–43, 194, 204
Flexible manufacturing system (FMS), 246, 256
Flexible system, 622, 627
Flow management, 666
Flow process chart, 297–298
Flow-shop scheduling, 702–704
Flow system, 702–704
Flowchart, 399
Flynn, Anna E., 698
FMS, 246, 256
Focus forecasting, 89
Fogarty, Donald W., 507
Following capacity strategy, 190
Food and Agricultural Organization (FAO), 29
Food and Drug Administration, 139
Foolproofing, 391
Ford, Henry, 22–23, 621
Forecasting, 72–131
accuracy of, 74, 77–80
airline industry, 11
approaches to, 80, 112
associative techniques, 80, 98–103
capacity requirements, 190–192
choosing a technique, 107–108
common features, 75–76
computers in, 109
defined, 74
Delphi method, 81
demand, 562
diffusion models, 89
elements of good, 76
errors, 78–80, 103–107
focus, 89
formulas used in, 112–113
importance of, 74
monitoring, 103–107
qualitative methods, 80–81
quantitative methods, 80
steps in the process, 77
supply chain, 76–77
technology, 81
time series data, based on
averaging, 83–88, 95–96
cycles, 82–83, 98
defined, 80
exponential smoothing, 87–88
irregular variations, 82–83
naive method, 82–83
random variations, 82–83
seasonality, 82–83, 93–97, 191, 196–197
trend, 82–83, 89–92
trend-adjusted exponential smoothing,
92–93
uses of data, 74–75
using information, 109
Foreign locations, 336–339; see also
International business
Forward scheduling, 708
Foster, Nicole, 696
14 Toyota Way Principles, 391
Francis, Richard L., 283, 362
Freivalds, Andris, 319
Friedman, Norm, 211
From-to charts, 268–269
Frozen, 495, 528
Fulfillment, of orders, 682–683
Functional strategies, 45–46
Gantt, Henry, 22, 705
Gantt charts, 22, 705–708, 749–750
Garvin, David A., 373n, 417
Gatekeeping, 691
Gauging systems, 21
General Agreement on Tariffs and Trade
(GATT), 26, 336
Geographical information system (GIS), 348
Ghattas, R. G., 790
Ghoshal, Sumantra, 51n, 71
Gido, Jack, 790
Gilbreth, Frank, 22, 23, 294, 299
Gilbreth, Lillian, 23, 294, 301
Gillespie, Lori Ciprian, 790
Gilmore, James, 168
Gispan, Jonathan, 747
Gitlow, Howard S., 403, 417, 461
Global priority rules, 712
Global product design, 141–142
Global strategy, 51
Global supply chains, 26, 32, 669–670
Global warming, 28, 142, 144
Globalization; see also International business
benefits, 336
disadvantages, 337
location decisions, 336–339
risks, 337–338
strategy, 51
Go, no-go gauge, 438
Goals
capacity planning, 183
defined, 44
of JIT, 622–623
waiting line management, 795–796
Goetsch, David L., 417, 461
Goldratt, Eliyahu M., 199, 211, 722n, 739, 771, 790
Goncalves, Marcus, 790
Gonzalez, Adrian, 689
Goods
defined, 4
versus services operations, 7–9, 12
Goods-services continuum, 5–7
Gorman, Michael E., 168
Gould, F. J., 232
Graham, Robert J., 790
Grant, Eugene L., 433, 461
Graphical linear programming
defined, 836
feasible solution space, 834–835, 841
minimization, 834, 845–846
objective function, 834–835
objective function coefficient change,
851–852
objective function line, 841–844
plotting constraints, 838–841
procedures, 836–838
redundant constraints, 844–845
slack and surplus, 847–848
solutions and corner points, 845
Graphs, used in aggregate planning, 484–488
Gravity method, center of, 354–356
Gray, Clifford F., 743, 773, 790
Green, Erin H., 668n, 698
Green belts, 393–394
Green initiatives, 28
Griebenow, Allan, 687
Griffin, Gale, 339
Griffin, W., 831
Griffith, Gary K., 461
Grimshaw, David J., 362
Groover, Mikell P., 168, 256, 266n, 283
Gross requirements, 516
Group incentive plans, 289
Group technology, 255–256, 626
Growth phase, 148, 194–195
Growth strategies, 50
Gryna, Frank M., 461, 471
Guide, V. Daniel, 698
Gundersen, Norman A., 790
Gupta, Praveen, 417
Hachman, Mark, 71
Hall, Robert W., 661
Hammer, Michael, 71
Handfield, Robert B., 698
Hanke, John E., 38Subject Index 899
Hard data, 80
Hariharn, Arun, 653
Harrington, Jim, 417
Harris, F. W., 24
Hausman, Warren H., 368
Hazelwood, R. N., 816, 819
Hedging, 558
Heijunka, 620
Heineke, Janelle, 168
Hellburg, R., 211
Hertzberg, Frederick, 23
Heskett, James L., 168
Heuristic rule, 261
Hickey, Kathleen, 698
Hierarchical organizations, 45–46
High technology, 24, 243; see also Technology
High volume systems, scheduling in, 702–704
Hill, Terry, 71, 211, 283
Hillier, Frederick S., 831, 863
Hillier, Mark S., 863
Hira, Ronald, 698
Hiring, of workers, 479
Histogram, 399, 402
Hoerl, Roger W., 417
Holding costs, 562, 688
Holland, Max, 66
Holstein, William J., 71
Hopp, Wallace J., 131, 507, 552, 616, 653,
698, 739
Hora, Michael E., 661
Horizontal loading, 292
Horizontal skills, 290
House of quality, 153–155
Housekeeping, 640–641
Howe, Tom, 423–424
Howley, Lauraine, 62
Human relations movement, 23
Human resources, 16, 75; see also Personnel
issues
Hungarian method, 709–710
Huse, Edgar F., 319
Idle time, 262
Ihlwan, Moon, 379
Illumination, working conditions and, 286
Imai, Masaaki, 623n
Immelt, Jeffery, 14
Implicit services, 160
Implied warranties, 139
Incentive plans, 61, 287–290
Independence, 764
Independent contractors, 480
Independent demand, 510
Independent events, 170
Indexes, 94, 101
Indicators, economic, 101
Indifference point, 201
Individual incentive plans, 289
Industrial engineering function, 13
Industrial Revolution, 21, 382
Infinite loading, 706–707
Infinite source models
basic relationships, 801–803
multiple priorities, 812–815
multiple servers, 805–809
single server, 803–805
Infinite source situation, 796–797
Information technology; see Technology
Information velocity, 690
Ingold, Anthony, 71, 211
Innovating, 27
Innovation, technological, 243
Input/output (I/O) control, 708–709
Inputs
aggregate planning, 477, 495
MRP, 512–515
operations management, 5–6
Inspection, 256, 420–425; see also Acceptance
sampling
Institute for Operations Research and the
Management Sciences, 17
Institute for Supply Management (ISM), 17
Institute of Industrial Engineers, 17
Interchangeable parts, 23, 149
Intermediate plans, 474–475
Intermediate-volume systems, scheduling in,
704–705
Intermittent processing, 251–252
Internal failures, 381
Internal rate of return (IRR), 204
International business; see also Globalization
design issues, 141–142
GATT, 26, 336
global strategy, 51
location decisions, 336–339
NAFTA, 26, 336
trade agreements, 336
International Ergonomics Association, 294
International Organization for Standardization,
387–389
Internet; see also Technology
benefits of, 61
clicks-or-bricks model, 350, 676
e-business, 24, 32, 675–677
e-commerce, 24, 535–536
e-procurement, 24, 677
Introduction phase, 194
Intuitive rules, 261
Inventory
available-to-promise, 496, 498
defined, 556
functions of, 558
pipeline, 558
turnover of, 559
vendor-managed, 648, 681
work-in process, 557, 628, 638
Inventory management, 554–616
ABC approach, 563–565
bar coding, 448, 560–561
bullwhip effect, 681
carrying costs, 562, 566–570
centralized, 681
counting systems, 560–561
cycle counting, 565–566
demand forecasts, 562
economic order quantity (EOQ)
basic model, 566–570
defined, 566
economic production quantity, 570–573
fixed-order-interval model, 585–588
in MRP, 524–525
quantity discounts, 558, 573–577
reorder points, 578–585
single-period model, 588–592
versus small lot sizes, 624–625
80/20 rule, 402
formulas, 594
importance of, 556–559
lead time information, 562, 586
lean operations, 628–629
objectives of, 559
ordering costs, 562, 566–570
perpetual system, 560, 578
requirements for effective, 559–566
RFID, 561–562, 685–687
safety stock, 523–524, 558, 566, 578–580
service levels, 579, 582–585
shortages, 582–585
stocking levels, 589–592
stockouts, 558, 579
two-bin system, 560, 637
Inventory models, 19
Inventory records, 515
Inventory turnover, 559
Inventory velocity, 681
Irregular variation, 82–83
Ishikawa, Kaoru, 385
Ishikawa diagram, 403
ISO 9000, 387–388, 679
ISO 9001, 748
ISO 14000, 388–389
ISO 24700, 389
Jacobs, F. Robert, 507, 552, 653
Japan Prize, 387
Japanese manufacturers, influence of, 24
Japp, Len, Jr., 424
Jeffery, Bill, 552
Jidoka, 620, 626
Jimenez, Alicia, 424
JIT, 619, 643
JIT II, 647–648
Job analysis, 295–299
Job design, 291–295; see also Work design
behavioral approaches, 292–293
compensation, 287–290
defined, 291
ergonomics, 294–295
human relations movement, 23
methods analysis, 295–299
motion study, 22, 299–301
motivation, 12, 23, 293
specialization, 291–292
teams, 293–294
working conditions, 285–287
Job enlargement, 292
Job enrichment, 292
Job flow time, 713
Job lateness, 713
Job rotation, 292
Job shop, 236–237
Job shop scheduling
defined, 705
loading, 705–712
sequence dependent setup times, 720–721
sequencing, 712–721
two work centers, sequencing through,
718–720900 Subject Index
Job splitting, 718
Job time, 712
Jockeying, 800
Johnson, P. Fraser, 698
Johnson, S. M., 718n
Johnson’s rule, 718
Jones, Daniel T., 38, 620, 654
Jorgensen, Karen, 319
Judgmental forecasts, 80
Juran, Joseph M., 24, 381, 417, 461, 471
Just-in-time (JIT), 619, 643; see also Lean
Operations
Kahn, Salina, 820
Kaizen, 385, 392, 620, 623
Kaminsky, Philip, 675
Kanban, 620, 636–638
Kanbar, Vijay, 790
Kano, Noriaki, 155
Kano model, 155–156
Kaplan, Robert, 54n
Kapp, Karl M., 552
Kasibhatla, Prasad, 668n
Katz, K. L., 831
Keating, Barry, 131
Kelly, John, 141
Kenney, Brad, 373
Kerzner, Harold, 790
Kilbridge, M. D., 283
Kiley, David, 375
Klammer, Thomas, 417
Knowledge-based pay, 290
Koch, Christopher, 532, 536
Koopman, John, 339
Kowalski, Bill, 395–396
Labor factors, impact on location
decisions, 344
Labor productivity, 58
Labor turnover, 61
Laplace, 215–216
Larson, B. M., 831
Larson, Erik W., 743, 773, 790
Larson, Melissa, 790
Larson, R. C., 831
Latham, Bill, 552
Latham, Hester-Ford, 552
Lauer, Axel, 668n
Lawrence, Carol, 417
Layoffs, 61, 479
Layout of facilities; see Facilities layout
Lead time
constant, 586
cumulative, 512
defined, 16, 562
stacked, 512
Leadership, 633
Leading capacity strategy, 190
Leading variable, 98
Lean operations, 618–661
benefits of, 593
defined, 619
ERP, 530–538, 643
inventory control, 628–629
JIT, 619, 643
JIT II, 647–648
kanban, 620, 636–638
level loading, 633–635
limited work-in-process, 638
line balancing; see Line balancing
lot sizes; see Lot sizing
manufacturing cells, 626
manufacturing planning and control, 633–641
versus MRP, 637–638
obstacles, 644
overview of, 649
personnel/organizational elements,
631–633
preventive maintenance, 249–250, 640–641,
656–658
process design, 624–631
product design, 623–624
production flexibility, 627
pull systems, 620, 635–636
quality improvement, 626–627
services, 645–647
setup time reduction, 625–626, 705
six sigma, 26, 393–394, 446, 642–643, 771
supporting goals, 622–623
Toyota approach, 620–621
versus traditional, 641
transitioning to, 643–645
value stream mapping, 641–643
vendor relationships, 638–639
visual systems, 636–638
Lean process design, 242–243
Lean production, 27, 292
Lean/six sigma, 393–394
Lean supply chains, 669
Lean systems, 27
Learning curves
applications of, 324–326
concept of, 320–324
limitations of, 326–327
Least squares line, 98–99
Leavenworth, Richard, 433, 461
Lee, Hau L., 168, 692n, 698
Leenders, Michiel R., 698
Legal issues
design of products/services, 139–140
product liability, 139, 379
UCC, 139
warranties, 139
Level capacity strategy, 481–483
Level loading, 633–635
Levine, David M., 417
Liability, 139, 379
Lieberman, Gerald J., 831, 863
Liebhaber, Richard, 341
Lientz, Bennett P., 791
Life cycle analysis, 142
Life cycles
decline phase, 148, 195
introductory phase, 194
maturity phase, 148, 195
product, 239
project, 742–743
Liker, Jeffrey K, 391n, 653
Lindsay, W. M., 374n, 461
Line balancing
cycle time, 260–262, 638
defined, 259
flow systems, 703–704
guidelines for, 263–264
mixed model line, 267
parallel workstations, 266
precedence diagram, 261, 750–751
takt time and, 627–628
Line functions, 4
Linear programming, 832–863
aggregate planning, 488–490
assignment method, 709–712
components, 834
computer solutions, 848–851
graphical linear programming
defined, 836
feasible solution space, 834–835, 841
minimization, 834, 845–846
objective function, 834–835
objective function coefficient change,
851–852
objective function line, 841–844
plotting constraints, 838–841
procedures, 836–838
redundant constraints, 844–845
slack and surplus, 847–848
solutions and corner points, 845
models, 834–836
sensitivity analysis, 220–221, 851–853
simplex method, 848
transportation model, 352–353, 363–368,
488–490
uses for, 19
Linear regression, simple, 98–102
Linear trend equation, 90
Liquid, 495
Little’s Law, 558, 638, 802
Load charts, 706–707
Load reports, 528–529
Loading, 705–712
Local optima, 214
Local priority rules, 712
Location planning, 332–362
decision making, 33
ethics and, 346
evaluating location alternatives
center of gravity method, 354–356
cost-profit-volume analysis, 351–352
factor rating, 353–354
transportation model, 352–353,
363–368, 488–490
factors affecting
community considerations, 345–346
multiple plant, 346–348
regional, 343–345
site-related factors, 346
global locations, 336–339
importance of, 42, 334
location options, 335
objectives of, 334–335
procedures for, 340
service and retail locations, 348–350
supply chain considerations, 335
Locational cost-profit-volume analysis,
351–352
Logistical transactions, 640
Logistics, 664, 683–689; see also Transportation
Long-range plans, 474Subject Index 901
Long-term capacity needs, 190, 192
Long-term contracts, 679
Long-term forecasts, 74
Loper, Marvin, 790
Lot-for-lot ordering, 517–520, 524
Lot sizing
defined, 524
economic, 558
versus EOQ, 624–625
large versus small, 692
MRP, 524–525
small, 624–625
Lot tolerance percent defective (LTPD), 465
Love, Stephen, 529
Lovelock, Christopher H., 168
Low-level coding, 515
Low-volume system
loading, 705–712
sequence dependent setup times, 720–721
sequencing, 712–721
two work centers, sequencing through,
718–720
Lower control limits (LCL), 103, 104, 429
Lubbers, Sarah, 612
Lumpy demand, 510, 692
Lyne, Jack, 362
M/D/1, 804–805
M/M/1, 803–804
M/M/S, 805–809
MacDonald, Jim, 136
Machine productivity, 58
Machine shop, 251
MAD, 78–80
Maintenance
breakdown, 656
costs, 656, 657
defined, 655
predictive, 658
preventive, 249–250, 640–641, 656–658
replacement, 659
responsibility of, 13
total productive, 658
Maister, David H., 822
Make or buy, 193–194
Make-to-order (MTO), 682
Make-to-stock (MTS), 683
Makespan, 713
Management compensation, 290
Management information systems (MIS), 16,
74–75
Management science techniques, 24
Mann, David, 653
Mann, Lawrence, Jr., 661
Mantel, Samuel, 791
Manufacturability, 16, 134, 159
Manufacturing
agile, 54
craft production, 21
employment, 9, 13–14
Japanese influence on, 24
lean; see Lean operations
mass production, 22
versus service, 7–9
Manufacturing cells, 626
Manufacturing planning and control, 633–641
Manufacturing resources planning
(MRP II), 526–527
Manufacturing systems
assembly lines, 12, 22–23, 238, 249
automation systems, 243–247
cellular, 253–256
computer-aided, 245
computer-integrated, 246
designing for, 157–160
flexible, 246, 256
JIT, 619, 643
job shop, 236–237
line balancing; see Line balancing
multiple plant location, 346–348
robots, 245
sustainable production, 242
MAPE, 79–80
Mapping, value stream, 641–643
Markels, Alex, 341–342
Market area plant strategy, 347
Market test, 157
Marketing
advertising and promotion, 42
forecasting, 75
function, 4, 15–16
influence on competitiveness, 42
order qualifiers/winners, 47–48
Markets, location decisions and, 343–345
Markula Center for Applied Ethics, 30
Maslow, Abraham, 23
Mass customization, 149–151
Mass production, 22
Massey, Lynn, 654
Master production schedule (MPS), 493, 512
Master schedule, 475, 493–498, 512
Material and Information Flow Mapping, 641
Material requirements planning (MRP),
508–552
benefits and requirements, 525–526
bill of materials, 512–515, 525
capacity requirements planning, 528–530
closed loop, 527
defined, 510
DRP, 530
ERP, 530–538, 643
inputs, 512–515
inventory records, 515
versus kanban, 637–638
lot sizing, 524–525
master schedule, 475, 493–498, 512
MRP II, 526–527
outputs, 523
overview of, 510–511
processing, 515–522
safety stock, 523–524, 558, 578–580
in services, 525
updating the system, 521–522
Materials handling, 251
Mathematical decision-making models, 18
Mathematical techniques, for aggregate planning,
488–491
Mathews, Anna Wilde, 830–831
Matrix organization, 744
Matta, Nadim F., 791
Maturity stage, 148, 195
Maximax, 215
Maximin, 215
Maximum line length, 811
Mayo, Elton, 23
McGinnis, Leon F., Jr., 283, 362
McGregor, Douglas, 23
McKee, Sandra L., 790
McMahon-Beattie, Una, 71, 211
McNulty, Steven, 138–139
Mean, 11
Mean absolute deviation (MAD), 78–80
Mean absolute percent error (MAPE), 79–80
Mean control charts, 430–435
Mean squared error (MSE), 78–80
Mean time between failures (MTBF), 171–178
Measured daywork systems, 287
Measurement, of capacity, 186–187
Meczkowski, Frank, 138
Meeker, David G., 135
Merchantability, 139
Meredith, Jack R., 232, 791
Mergers and acquisitions, 47
Methods analysis, 295–299
Methods Engineering Council, 307
Methods-time measurement (MTM), 307–308
Metters, Richard, 739
Meyers, Fred E., 319
Microfactory, 345
Micromotion study, 301
Milas, Gene H., 283
Miller, Jeffrey G., 639n
Milligan, Glenn W., 168
Mills, Karen, 626
Minimax regret, 215–216
Minimization, 834, 845–846
MIS, 16, 74–75
Mission, 44
Mission statements, 44
Mitchell, Mike, 680
Mitchell, William E., 390
Mitra, Amitava, 461
Mixed model line, 267
Mixed-model sequencing, 633–634
Models
additive, 94
associative, 80
benefits of using, 18–19
decision making, 18–19, 24
defined, 18
finite source, 815–820
infinite source; see Infinite source models
inventory, 19
Kano, 155–156
limitations of, 19
linear programming, 834–836
mathematical, 18
multiple-priority, 812–815
multiplicative, 94
physical, 18
project, 19
quantitative, 19, 24
schematic, 18
simulation, 491
single-period, 588–592
statistical, 19, 24
transportation, 352–353, 363–368, 488–490
Modular design, 150–151, 623–624902 Subject Index
Monden, Yasuhiro, 653
Montgomery, Douglas C., 461
Moog, Bob, 338
Moore, Jeffrey H., 232
Morrison, Jim, 552
Most likely time, 761
Motion study, 22, 299–301
Motion study principles, 299–300
Motivation, 12, 23, 293
Moving assembly line, 22
Moving average, 84–86, 95–96
MPS, 493, 512
MRP; see Material requirements planning (MRP)
MRP II, 526–527
MSE, 78–80
MTBF, 171–178
Muda, 620
Multiple break-even points, 202
Multiple-channel servers, 797
Multiple plant location strategies, 346–348
Multiple-priority model, 812–815
Multiple regression analysis, 103
Multiple resources scheduling, 726–727
Multiple-sampling plans, 463
Multiple servers, 805–809
Multiple-source purchasing, 638–639
Multiplicative model, 94
Mundel, Marvin E., 319
Muther, Richard, 270n
Muther grid, 270–271
NAFTA, 26, 336
Naive forecasts, 82–83
National Association of Purchasing
Management, 674
National Institute of Standards, 378, 386
Near-sourcing, 670
Negative exponential distribution, 798
Negotiated purchasing, 324–325
Net-change system, 521
Net requirements, 516
Netting, 517
Network configuration, 670
Network conventions, 751–753
Network (precedence) diagram, 750–751
Neubauer, Dean, 461
Newbold, R. C., 791
Newness, degree of, 152–153
Newsboy problem, 588
Nichols, Ernest L., Jr., 698
Nichols, Karen, 747
Niebel, Benjamin W., 286, 297, 300, 302, 306, 319
Noise and vibrations, working conditions
and, 286
Nolden, Carol, 661
Nonlinear regression analysis, 103
Nonmanufactured goods, 7
Nonrandom patterns, 439, 442–443
Nonrandom variation, 426
Nonrepetitive processing, 251–252
Normal distribution, 426–427
Normal operating conditions, 151
Normal time, in work measurement, 304–305
North American Free Trade Agreement, 26, 336
Norton, David, 54n
Numerically controlled (N/C) machines, 245
Objective function, 834–835, 841–844,
851–852
Objectives
facilities layout, 248–249
inventory management, 559
location decisions, 334–335
scheduling, 702
Observed time, in work measurement, 304
OC curve, 464–467
Occupational Health and Safety Administration,
139
Occupational health care, 286
Occupational Safety and Health Act, 287
Office layouts, 257
Offshoring, 390
Ohno, Taiichi, 385, 619
On-site inspection, 425
Operating characteristic (OC) curve, 464–467
Operational decisions, 13
Operational processes, 10
Operations management
careers in, 17
decision making and, 13, 17–21, 45–46
defined, 4
evolution of, 21–24, 25
function, 4, 13, 672
goods versus services, 7–9, 12
influence on competitiveness, 42–43
interface with other functions, 13, 15–16
Japanese influence on, 24
key issues, 27–32
role of managers, 13
scope of, 11–13
service operations, 7–9
transformation process, 5–7
trends in, 24–27
Operations strategy, 26, 48, 52–54
Operations Tour
Boeing, 652–653
Bruegger’s Bagel Bakery, 613
High Acres Landfill, 168
Morton Salt, 240–242
PSC, Inc., 614–616
Stickley Furniture, 550–552
U.S. Postal Service, 70–71
Wegmans Food Markets, 33–35
Wegmans’ Shipping System, 684–685
Opinions, forecasts based on, 80–81
Oppenheim, Alan J., 417, 461
Oppenheim, Rosa, 417, 461
Opportunity costs, 478
Opportunity losses, 216
Optimistic time, 761
Optimization, constrained, 833
Order cycles, 558
Order fulfillment, 682–683
Order qualifiers, 47–48
Order releases, 523
Order winners, 47–48
Ordering costs, 562, 566–570
Orders
back, 478–479
duplicate, 478
fixed-period, 525
process, 672–673
Organizational strategies, 44, 45–46, 54, 55
Organizations
accounting function, 16
centralization of, 673–674
competitiveness and, 42–44
finance function, 4, 15–16, 74
flattening, 27
hierarchical, 45–46
marketing function, 4, 15–16
matrix, 744
missions of, 44
reasons for failure, 43–44
OSHA, 287
Ott, Ellis, 461
Ouchi, William, 23
Output
actual, 186–187
examples of, 6
master scheduling process, 495–498
MRP, 523
tangible, 7
Output-based (incentive) system, 287–289
Output constraints, 263
Outsourcing
defined, 31
hospital services, 211
of logistics, 688–689
make or buy, 193–194
quality issues, 390
reasons for, 50, 62, 135–136
risks of, 193, 390, 668
sustainability and, 28
Overhead costs, 633
Overtime, 479–480
Ozgur, Ceyhun, 232, 365n, 368, 791,
831, 863
P-chart, 435–436
P-kanban, 636
Packaging, 6, 143–144, 146–147
Papadellis, Randy, 680
Parallel workstations, 266
Parameter design, 152
Parameters, 834
Parasuraman, A., 374n, 376n
Pareto, Vilfredo, 402
Pareto analysis, 402
Pareto phenomenon, 20–21
Part families, 253, 255
Part time workers, 480
Partnerships, 679–680
Patents, 9
Path, 751
Path probabilities, determining, 764–766
Paulraj, Antony, 698
Pay systems, 287–290
Payback, 204
Payoff table, 213
PDSA, 397–398, 723
Pear, Robert, 378
Peck, L. G., 816, 819
Pegging, 521
Perceived time, 821
Performance-control reports, 523
Performance metrics
benchmarking, 392, 408–409
importance of, 690Subject Index 903
key measures, 690
waiting lines, 800
Periodic maintenance, 657
Periodic orders, 558
Periodic system, 560
Perpetual inventory system, 560, 578
Personnel issues
hiring, 479
human resources function, 16, 75
independent contractors, 480
layoffs, 61, 479
in lean operations, 631–633
part time workers, 480
salaries/wages, 287–290
PERT (Program evaluation and review
technique), 19, 750–753, 770–771
Pessimistic time, 761
Peterson, R., 507, 616
Pexton, Carolyn, 417
Physical decision-making models, 18
Physical inventory count, 560
Picking system, 257
PIMS, 50–51
Pine, B. Joseph, 168
Pinedo, M., 707, 739
Pingho, LeRoy, 341
Pipeline inventories, 558
Plambeck, Erica L., 478
Plan-do-study-act (PDSA), 397–398, 723
Planned-order receipts, 516–517
Planned-order releases, 517
Planned orders, 523
Planning fence, 528
Planning horizon, 476
Planning reports, 523
Planning time, 54
Plant layout; see Facilities layout
Plant locations; see Location planning
Plotting constraints, 838–841
Point-of-sale (POS) systems, 560–561
Poisson distribution, 191, 436–438, 466,
798–799
Poka-yoke, 391, 630
Population source, 796–797
Postponement, 150
Powers, Richard, 338–339
Prasad, Biren, 168
Precedence diagram, 261, 750–751
Predetermined time standards, 307–308
Predictive maintenance, 658
Predictor variables, 98
Present value (PV), 203
Prevention costs, 381
Preventive maintenance, 249–250, 640–641,
656–658
Pricing
competitiveness and, 42
demand and, 478
hedging, 558
shadow, 852
Primary reports, 523
Priorities, establishment of, 20–21
Priority rules, 712–718
Proactive planning strategies, 478
Probabilistic time estimates, 753, 761–763
Probability distribution, 191
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