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| موضوع: كتاب Operations Management الأحد 27 يونيو 2021, 2:29 am | |
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أخوانى فى الله أحضرت لكم كتاب 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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