Fundamentals of Operations Management with Student CD-Rom

by Davis, Mark M.; Aquilano, Nicholas J.; Chase, Richard B.

• ISBN13: 9780072554571
• ISBN10: 0072554576
• Edition: 4th
• Format: Hardcover
• Copyright: 2002-07-24
• Publisher: MCG

Summary

A major revision, Fundamentals of Operations Management, 4/e introduces students to the fundamental processes of managing and controlling a variety of operations. Davis' book addresses the increasing trend away from lengthy, highly quantitative texts toward more pragmatic, managerial issues that confront today's operations managers. There is increased coverage of service operations rather than the more traditional "factory", or manufacturing approach. It's written in a style suited for non-majors who assume no prior background in the field of operations. Davis covers introductory and numerical examples and quantitative methods, but the main focus is on general concepts and applications. Unlike Stevenson, which focuses on the tools of operations management, Davis' approach to the subject is more conceptual or managerial.

Table of Contents

Introduction to Operations Management	2	(24)
What Is Operations Management?	4	(5)
An Organizational Perspective	4	(3)
An Operational Perspective	7	(2)
Operations Management's Contributions to Society	9	(1)
Higher Standard of Living	9	(1)
Better Quality Goods and Services	9	(1)
Concern for the Environment	10	(1)
Improved Working Conditions	10	(1)
The Emergence of Operations Management	10	(4)
Application of OM to Service Operations	10	(3)
An Expanded Definition of Quality	13	(1)
Expansion of OM Concepts into Other Functions	13	(1)
A New Paradigm for OM	13	(1)
The Ever-Changing World of Operations Management	14	(6)
Increased Global Competition	14	(1)
Advances in Technology	15	(1)
Linking Operations Management to Customers and Suppliers	16	(3)
Job Opportunities in Operations Management: Relating OM to Other Business Functions	19	(1)
Historical Development of OM	20	(6)
Prior to 1900	20	(1)
Scientific Management	20	(1)
Moving Assembly Line	21	(1)
Hawthorne Studies	21	(1)
Operations Research	21	(1)
OM Emerges as a Field	22	(1)
The Marriage of OM and Information Technology	22	(1)
OM in Services	22	(1)
Integration of Manufacturing and Services	22	(4)
Operations Strategy: Defining How Firms Compete	26	(24)
Operations Strategy---An Overview	28	(2)
Definitions	28	(1)
A Short History of Operations Strategy	29	(1)
What Is Operations Strategy?	30	(1)
Operations Strategy Means Adding Value for the Customer	30	(2)
Trends Affecting Operations Strategy Decisions	32	(1)
Globalization	32	(1)
Technology	33	(1)
Competitive Priorities	33	(3)
Cost	33	(1)
Quality	34	(1)
Delivery	34	(1)
Flexibility	35	(1)
Service	35	(1)
The Next Sources of Competitive Advantage?	36	(1)
Developing and Operations Strategy from Competitive Priorities	36	(6)
Factory Focus and Trade-Offs	36	(1)
Questioning the Trade-Offs	37	(2)
Order-Qualifiers and Order-Winners	39	(3)
Focusing on Core Capabilities	42	(1)
Integration of Manufacturing and Services	42	(8)
The Customer's Activity Cycle (CAC)	43	(1)
Looking Toward Downstream Services	44	(1)
Additional Approaches for Integrating Manufacturing and Services	44	(6)
New Product and Service Development, and Process Selection	50	(36)
Why the Emphasis on New Goods and Services	52	(1)
Increased Competition	52	(1)
Advances in Technology	52	(1)
The Benefits of Introducing New Products Faster	53	(1)
Greater Market Share	53	(1)
Price Premiums	53	(1)
Quick Reaction to Competition	54	(1)
Set Industry Standards	54	(1)
Categories of New Products	54	(2)
Incremental or Derivative Products	55	(1)
Next Generation or Platform Products	55	(1)
Breakthrough or Radical Products	55	(1)
The New Product Development (NPD) Process	56	(5)
Idea Generation	57	(1)
Concept Development	58	(1)
Quality Function Deployment	58	(2)
Design for Manufacturability (DFM)	60	(1)
Process Selection in Manufacturing	61	(5)
Types of Processes	61	(2)
The Product-Process Matrix	63	(3)
Categories of New Services	66	(2)
``Window Dressing'' Services	67	(1)
Breadth-of-Offering Services	67	(1)
Revolutionary Services	67	(1)
Channel Development Services	67	(1)
The New Service Development (NSD) Process	68	(6)
The Customer Contact Approach to Designing Service Processes	69	(2)
Designing a New Service Organization	71	(1)
Designing the Customer Service Encounter	72	(2)
Process Selection in Services	74	(12)
Types of Service Organizations	74	(1)
The Production Line Approach	74	(1)
The Customer Involvement Approach	75	(1)
The Personal Attention Approach	75	(11)
Supplement 3 Project Management	86	(96)
Definition of Project Management	87	(3)
Work Breakdown Structure	89	(1)
Organizational Considerations in Project Management	90	(1)
Role of the Project Manager	90	(1)
High-Performance Project Teams	90	(1)
Project Control	91	(3)
Critical Path Scheduling	94	(1)
Time-Oriented Techniques	94	(11)
CPM with a Single Time Estimate	95	(5)
CPM with Three Activity Time Estimates	100	(2)
Maintaining Ongoing Project Schedules	102	(3)
Time-Cost Trade-Off Models	105	(2)
Minimum-Cost Scheduling (Time--Cost Trade-Off)	105	(2)
Criticisms of PERT and CPM	107	(2)
Project Management Software	109	(13)
The Role of Technology in Operations	122	(26)
How Technology Affects Operations	124	(1)
Technology in Manufacturing	125	(3)
Automation	125	(1)
Information Technology	126	(2)
Enterprise Resource Planning (ERP) Systems	128	(4)
Defining ERP Systems	128	(1)
Evolution of ERP Systems	128	(2)
Benefits of ERP Systems	130	(1)
Why ERP Systems Fail	131	(1)
Criticisms of ERP Systems	131	(1)
Technology in Services	132	(6)
Technology Trends in Services	132	(3)
Integrating Technology into Services	135	(3)
E-Services	138	(4)
Communication Network Environment	138	(2)
Types of E-Services	140	(2)
Technology-Related Issues	142	(6)
Overcoming Barriers to Entry	142	(1)
Training and Support	142	(6)
Process Measurement and Analysis	148	(34)
Defining a Process	150	(2)
Process Measurement	152	(5)
Types of Performance Measures	152	(5)
Process Analysis	157	(8)
Definitions	157	(3)
Capacity versus Demand	160	(1)
Process Flowcharts	160	(2)
Service Blueprinting	162	(1)
Fail-safing	163	(2)
Business Processes	165	(2)
Business Process Analysis	165	(2)
Benchmarking	167	(4)
What Should We Benchmark?	169	(1)
Key Steps in Benchmarking	169	(1)
Types of Benchmarking	170	(1)
Business Process Reengineering	171	(11)
Reengineering Defined	171	(1)
Characteristics of a Reengineered Process	172	(1)
Issues with Reengineering	173	(9)
Supplement 5 Financial Analysis in Operations Management	182	(66)
Cost Definitions	183	(2)
Fixed Costs	183	(1)
Variable Costs	183	(1)
Sunk Costs	183	(1)
Opportunity Costs	184	(1)
Avoidable Costs	184	(1)
Out-of-Pocket Costs	184	(1)
Cost of Capital	184	(1)
Activity-Based Costing	185	(2)
Break-Even Analysis	187	(5)
Revenues versus Costs	187	(2)
Choice of Processes	189	(3)
Obsolescence, Depreciation, and Taxes	192	(2)
Economic Life and Obsolescence	192	(1)
Types of Depreciation	192	(2)
The Effects of Taxes	194	(1)
Types of Economic Decisions	194	(1)
Financial Definitions	195	(4)
Compound Value of a Single Amount	196	(1)
Compound Value of an Annuity	196	(1)
Present Value of a Future Single Payment	197	(1)
Present Value of an Annuity	198	(1)
Discounted Cash Flow	199	(1)
Methods for Evaluating Investment Alternatives	199	(3)
Net Present Value	199	(2)
Payback Period	201	(1)
Internal Rate of Return	201	(1)
Ranking Investments with Uneven Lives	202	(1)
Sample Problems on Investment Decisions	202	(10)
An Expansion Decision	202	(2)
A Replacement Decision	204	(2)
A Make-or-Buy Decision	206	(1)
An Example Using Excel	206	(6)
Quality Management	212	(36)
The Quality Gurus	214	(4)
Walter A. Shewhart	214	(1)
W. Edwards Deming	215	(1)
Joseph M. Juran	216	(2)
Armand Feigenbaum	218	(1)
Philip Crosby	218	(1)
Genichi Taguchi	218	(1)
Defining Quality	218	(5)
Quality in Goods	219	(1)
Quality in Services	220	(1)
Additional Views of Quality	221	(2)
The Cost of Quality	223	(3)
Cost of Prevention	223	(1)
Cost of Detection/Appraisal	224	(1)
Cost of Failure	224	(1)
Service Guarantees	225	(1)
Organizationwide Quality Initiatives	226	(5)
Total Quality Management	226	(3)
Six Sigma	229	(2)
Recognizing and Rewarding Quality	231	(17)
Malcolm Baldrige National Quality Award (MBNQA)	232	(4)
ISO 9000	236	(2)
European Quality Award	238	(1)
The Deming Prize	239	(9)
Supplement 6 Quality Control Tools for Improving Processes	248	(170)
The Basic Quality Control Tools	249	(5)
Process Flowcharts (or Diagrams)	249	(1)
Checksheets	249	(1)
Bar Charts and Histograms	250	(1)
Pareto Charts	251	(1)
Scatterplots (or Diagrams)	252	(1)
Run (or Trend) Charts	252	(1)
Cause-and-Effect (or Fishbone) Diagrams	253	(1)
Statistical Analysis of Processes	254	(1)
Attributes and Variables	254	(1)
Sampling Errors	255	(1)
Acceptance Sampling	255	(6)
Designing a Sampling Plan for Attributes	255	(3)
Operating Characteristic Curves	258	(1)
Designing a Sampling Plan for Variables	259	(2)
Statistical Process Control	261	(9)
SPC Charts	263	(2)
SPC Using Attribute Measurements	265	(1)
Variable Measurements Using X and R Charts	266	(1)
How to Construct X and R Charts	267	(3)
A Framework for Applying the Tools	270	(1)
Six Sigma	270	(3)
Process Capability	270	(2)
Six-Sigma Calculations	272	(1)
Taguchi Methods	273	(15)
Facility Decisions: Location and Capacity	288	(34)
Locating Manufacturing Facilities	290	(4)
Qualitative Factors	291	(2)
Quantitative Factors	293	(1)
Locating Service Operations	294	(5)
Location Strategies	294	(1)
Computer Programs for Site Selection	295	(1)
Types of Service Facilities	296	(3)
Methods for Evaluating Potential Locations	299	(5)
Factor-Rating Systems	299	(1)
Center-of-Gravity Method	300	(2)
A Spreadsheet Approach to Locating Facilities	302	(2)
Capacity Decisions	304	(18)
Important Capacity Concepts	304	(3)
Capacity Strategies	307	(1)
Capacity Planning	307	(2)
Capacity Measures	309	(13)
Facility Decisions: Layouts	322	(28)
Types of Manufacturing Layouts	324	(15)
Process Layout	326	(4)
Product Layout	330	(8)
Current Thoughts on Assembly Lines	338	(1)
Group Technology (Cellular) Layout	338	(1)
Facility Layouts for Services	339	(11)
Types of Service Layouts	339	(2)
Layout Considerations in Services	341	(9)
Forecasting	350	(46)
Types of Forecasting	352	(1)
Components of Demand	353	(3)
Time-Series Analysis	356	(10)
Simple Moving Average	357	(2)
Weighted Moving Average	359	(1)
Exponential Smoothing	360	(6)
Forecasting Errors in Time-Series Analysis	366	(5)
Sources of Error	367	(1)
Measurement of Error	367	(4)
Linear Regression Analysis	371	(5)
Casual Relationship Forecasting	376	(3)
Reliability of the Data	377	(2)
Multiple Regression Analysis	379	(1)
Neural Networks	379	(1)
The Application of Forecasting in Service Operations	380	(1)
Forecasting Software Programs	380	(16)
Human Resource Issues in Operations Management	396	(22)
The New Managerial Role	398	(3)
Emerging Trends in the Workplace	401	(4)
Increased Diversity in Workforce Demographics	401	(1)
Increase in Flexible Work Hours	401	(1)
Part-Time Work and Job Sharing	402	(1)
Increased Use of Temporary Labor	402	(1)
The Impact of Technology	402	(1)
Increasing Emphasis on Teamwork	403	(2)
Employee Turnover	405	(3)
Employee Turnover Costs	405	(2)
The Hiring Process	407	(1)
Job Design	408	(10)
Behavioral Considerations in Job Design	410	(2)
Physical Considerations in Job Design	412	(6)
Supplement 10 Work Performance Measurement	418	(44)
Work Methods	419	(7)
Overall Operation	419	(2)
Worker at a Fixed Workplace	421	(3)
Worker Interacting with Equipment	424	(1)
Workers Interacting with Other Workers	424	(2)
Work Measurement	426	(8)
Time Study	427	(2)
Elemental Standard-Time Data	429	(1)
Predetermined Motion-Time Data	429	(1)
Work Sampling	430	(4)
Financial Incentive Plans	434	(10)
Basic Compensation Systems	434	(1)
Individual or Small-Group Incentive Plans	434	(1)
Organizational Plans	434	(10)
Waiting Line Management	444	(18)
The Importance of Good Service	447	(1)
Customer Waiting Time versus Process Efficiency: The Trade-Off in Waiting Line Management	448	(2)
Defining Customer Satisfaction	450	(2)
Definition of Customer Satisfaction	450	(1)
Customer Expectations	451	(1)
Perceived Waiting Time	451	(1)
Factors Affecting Customer Satisfaction with Waiting	452	(4)
Firm-Related Factors	452	(2)
Customer-Related Factors	454	(1)
Both Firm- and Customer-Related Factors	455	(1)
A Focus on Providing Fast Service	456	(2)
Service System Design Concepts	456	(2)
Toward Faster and More Efficient Services	458	(1)
How Technology Can Provide Faster Service	458	(4)
Supplement S11 Waiting Line Theory	462
Waiting Line Characteristics	463	(6)
Population Source	463	(1)
Arrival Characteristics	464	(1)
Physical Features of Lines	465	(1)
Customer Selection	466	(1)
Service Facility Structure	466	(2)
Exit	468	(1)
Waiting Line Equations	469	(2)
Capacity Utilization and Waiting Time	471	(1)
The Trade-Off between Balking and Reneging	471	(1)
Two Typical Waiting Line Situations	472	(4)
Problem 1: Customers in Line	473	(2)
Problem 2: Equipment Selection	475	(1)
Computer Simulation of Waiting Lines	476	(6)
Scheduling	482	(32)
The Job Shop Defined	484	(1)
Scheduling in a Job Shop	484	(2)
Elements of the Job Shop Scheduling Problem	486	(3)
Priority Rules for Allocating Jobs to Machines	487	(1)
Schedule Evaluation Criteria	488	(1)
Priority Rules and Techniques	489	(6)
Scheduling n Jobs on One Machine	489	(3)
Scheduling n Jobs on Two Machines	492	(1)
Scheduling n Jobs on m Machines---Complex Job Shops	493	(1)
OPT Scheduling Concepts	493	(2)
Control in the Job Shop	495	(4)
Tools of Shop-Floor Control	496	(3)
Scheduling Workers in Service Operations	499	(15)
Why Scheduling Is Important in Services	499	(1)
A Framework for Scheduling Service Workers	499	(4)
The Use of Technology in Scheduling	503	(1)
Examples of Scheduling in Services	503	(11)
Supply Chain Management	514	(22)
Definition of Supply Chain Management	516	(1)
The Evolution of Supply Chain Management	517	(3)
Factors Impacting the Supply Chain	520	(4)
Reduced Number of Suppliers	520	(1)
Increase in Competition	520	(1)
Shorter Product Life Cycles	520	(1)
Increase in Supplier-Managed Inventories (SMI)	520	(1)
Increase in Consignment Inventories	521	(1)
Advances in Technology	522	(2)
Shared or Reduced Risk	524	(1)
Requirements for a Successful Supply Chain	524	(2)
Trust	524	(1)
Long-Term Relationships	524	(1)
Information Sharing	524	(2)
Individual Strengths of Organizations	526	(1)
The Role of Logistics in the Supply Chain	526	(3)
Partnering	526	(1)
In-Transit Inventory Costs	526	(3)
Disintermediation	529	(7)
JIT II®	529	(1)
The Impact of Technology	530	(6)
Just-in-Time Systems	536	(32)
JIT Logic	538	(1)
The Japanese Approach to Productivity	538	(12)
Elimination of Waste	540	(7)
Respect for People	547	(3)
JIT in the United States	550	(1)
Implementing JIT Production	551	(9)
JIT Layouts/Design Flow Process	553	(3)
Total Quality Control	556	(1)
Stabilize Schedule	556	(1)
Kanban Pull	557	(2)
Work with Vendors	559	(1)
Continuous Inventory Reduction	559	(1)
Improve Product Design	559	(1)
Concurrently Solve Problems and Measure Performance	559	(1)
Company Experiences with JIT	560	(1)
JIT in Services	560	(8)
Application of JIT to Services	562	(6)
Aggregate Planning	568	(34)
Overview of Operational Planning Activities	570	(3)
Long-Range Planning	570	(1)
Intermediate-Range Planning	571	(2)
Short-Range Planning	573	(1)
Aggregate Production Planning	573	(4)
Production Planning Environment	574	(1)
Production Planning Strategies	574	(2)
Relevant Costs	576	(1)
Aggregate Planning Techniques	577	(8)
Full Costs versus Marginal Costs	577	(1)
A Simple Example of Aggregate Planning	578	(1)
A More In-Depth Example: The C&A Company	579	(3)
Aggregate Planning Applied to Services: Tucson Parks and Recreation Department	582	(3)
Yield Management	585	(17)
Market Segmentation	587	(1)
High-Fixed and Low-Variable Costs	588	(1)
Product Perishability	588	(1)
Presold Capacity	588	(14)
Inventory Systems for Independent Demand	602	(34)
Definition of Inventory	604	(1)
Reasons for Maintaining Inventory	604	(1)
Inventory Costs	605	(2)
Independent versus Dependent Demand	607	(1)
Types of Inventory Systems	607	(2)
Fixed-Order-Quantity and Fixed-Time-Period Systems	607	(2)
Basic Inventory Models	609	(8)
Basic Fixed-Order-Quantity Model	609	(3)
Fixed-Order-Quantity Model with Usage	612	(2)
Fixed-Time-Period Model	614	(1)
Quantity-Discount Model	615	(2)
Inventories and Service Levels	617	(1)
Economic Order Quantity Models in Relation to the Real World	617	(2)
Perishable Inventory	619	(1)
Single-Period Inventory Model	619	(2)
Inventory Management in Services	621	(4)
Yield Management or Revenue Management	621	(4)
Additional Issues in Inventory Management	625	(3)
Determining Realistic Costs	625	(1)
ABC Inventory Planning	626	(1)
Inventory Accuracy	627	(1)
Current Trends in Inventory Management	628	(8)
Inventory Systems for Dependent Demand	636
Master Production Schedule	639	(1)
Time Fences	639	(1)
Materials Requirements Planning (MRP) Systems	640	(4)
Purposes, Objectives, and Philosophy of MRP	641	(1)
Benefits of an MRP System	642	(1)
Where MRP Can Be Used	642	(2)
MRP System Structure	644	(5)
Demand for Products	645	(1)
Bill of Materials File	645	(1)
Inventory Records File	646	(1)
MRP Computer Program	647	(1)
Output Reports	648	(1)
A Simple MRP Example	649	(3)
Bill of Materials (Product Structure Tree) File	649	(1)
Inventory Records File	649	(1)
Running the MRP Program	649	(3)
Capacity Requirements Planning (CRP)	652	(2)
Computing Work Center Load	652	(2)
Manufacturing Resource Planning (MRP II)	654	(1)
MRP II	654	(1)
Sales and Operations Planning	654	(1)
MRP in Services	655	(1)
Lot Sizing in MRP Systems	656
Appendix A: Interest Tables for Financial Analysis	1	(4)
Appendix B: Areas of the Standard Normal Distribution	5	(3)
Appendix C: Areas of the Cumulative Standard Normal Distribution	8	(2)
Appendix D: Answers to Selected Problems	10
Photo Credits	1	(1)
Name Index	1	(6)
Subject Index	7