Operations Management An Active Learning Approach

by Bicheno, John; Elliott, Bryan B. R.

• ISBN13: 9780631201809
• ISBN10: 0631201807
• Edition: 1st
• Format: Paperback
• Copyright: 1997-12-08
• Publisher: Wiley-Blackwell

Summary

Operations Management is concerned with the management of people and the customer processes and involves the study of the design, planning and control of these processes.

Author Biography

John Bicheno is Reader in Operations Management at the University of Buckingham.

Bryan B. R. Elliott is Senior Lecturer in Operations Management at Bolton Business School, Bolton Institute of Higher Education.

Table of Contents

Guide for Students	xvii
Introduction to the Module	1	(6)
Unit 1 Introduction to Operations Management	7	(42)
Introduction	8	(1)
Objectives	8	(1)
Section 1: What is Operations Management?	9	(8)
Introduction	9	(1)
1.1 Definitions of operations management	9	(1)
1.2 Origins of modern operations management	10	(5)
1.3 Continuing challenges for operations managers	15	(2)
Summary	17	(1)
Section 2: Frameworks for Operations Management	17	(24)
Introduction	17	(1)
2.1 Porter's value chain	18	(1)
2.2 Operations as systems	19	(7)
2.3 Operations mix: the six Ps of operations	26	(3)
2.4 Dimensions of competitiveness	29	(2)
2.5 Order winners, order qualifiers and the Kano model	31	(1)
2.6 Product life cycle	32	(1)
2.7 Volume variety matrix and product process matrix	32	(4)
2.8 Quality and productivity	36	(3)
2.9 Universal principles	39	(2)
Summary	41	(1)
Section 3: Operations Management in Manufacturing and Service Industries	41	(8)
Introduction	41	(3)
Summary	44	(1)
Unit Review Activity	45	(1)
Unit Summary	45	(1)
References	45	(2)
Recommended Reading	47	(2)
Unit 2 Product Planning and Positioning	49	(48)
Introduction	50	(1)
Objectives	50	(1)
Section 1: Product Strategies	50	(6)
Introduction	50	(2)
1.1 Making decisions about the product and the market	52	(3)
Summary	55	(1)
Section 2: Product Planning Concept	56	(7)
Introduction	56	(1)
2.1 Initial screening	56	(3)
2.2 Production and engineering factors	59	(2)
2.3 Research and Development (R&D) factors	61	(1)
2.4 Marketing factors	62	(1)
2.5 Financial factors	63	(1)
Summary	63	(1)
Section 3: Product Life Cycle	63	(34)
Introduction	63	(1)
3.1 Stages of an R&D programme	64	(5)
3.2 Product life cycle in greater detail	69	(4)
3.3 Value analysis	73	(5)
3.4 Methodology of value analysis: the six phase approach	78	(8)
3.5 Phases 5 and 6: product launch and growth	86	(5)
3.6 Saturation, decline and termination	91	(2)
Summary	93	(1)
Unit Review Activity	93	(1)
Unit Summary	93	(1)
References	94	(1)
Recommended Reading	94	(1)
Answers to Unit Review Activity	94	(3)
Unit 3 Process Design	97	(42)
Introduction	98	(1)
Objectives	98	(1)
Section 1: Operations and Facilities Strategies	98	(8)
Introduction	98	(1)
1.1 Linking design to facilities provisioning	99	(2)
1.2 Types of focus of facilities	101	(2)
1.3 International operations strategy	103	(2)
1.4 Facilities strategy	105	(1)
Section 2: Capacity Management Strategy	106	(7)
Introduction	106	(1)
2.1 Definitions	106	(1)
2.2 Strategies	107	(2)
2.3 Capacity and its features	109	(3)
2.4 Capacity planning	112	(1)
Summary	112	(1)
Section 3: Facilities	113	(8)
Introduction	113	(1)
3.1 Size of facilities	113	(2)
3.2 Location of facilities	115	(3)
3.3 Multiple factories, depots and warehouses	118	(1)
3.4 Competitive retailing facilities	119	(1)
3.5 Emergency services facilities	120	(1)
3.6 General service facilities	120	(1)
Summary	120	(1)
Section 4: Layout Principles within a Facility	121	(18)
Introduction	121	(1)
4.1 Layout of facilities	121	(2)
4.2 Types of layout	123	(6)
4.3 Special applications	129	(3)
4.4 Systematic layout planning	132	(1)
4.5 Business Process Reengineering (BPR)	133	(1)
Summary	134	(1)
Unit Review Activity	135	(1)
Unit Summary	135	(1)
References	136	(1)
Recommended Reading	136	(1)
Answers to Unit Review Activity	136	(3)
Unit 4 Managing Demand and Supply of Materials	139	(60)
Introduction	140	(1)
Objectives	140	(1)
Section 1: Demand Management	141	(16)
Introduction	141	(1)
1.1 Order management	141	(4)
1.2 Order service	145	(1)
1.3 Forecasting	146	(11)
Summary	157	(1)
Section 2: Material Requirements Planning (MRP)	157	(16)
Introduction	157	(1)
2.1 Background and need for MRP	157	(2)
2.2 MRP and bill of materials	159	(2)
2.3 MRP calculations	161	(6)
2.4 Requirements for successful MRP	167	(2)
2.5 Features of MRP systems	169	(1)
2.6 MRP in practice	170	(3)
Summary	173	(1)
Section 3: Independent Demand Inventory Control	173	(26)
Introduction	173	(1)
3.1 Types of inventory	173	(1)
3.2 Inventory decisions	174	(4)
3.3 How much to order: Economic order quantity	178	(3)
3.4 Limitations of the EOQ	181	(5)
3.5 Safety stock	186	(2)
3.6 Time phased order point	188	(5)
3.7 Inventory control	193	(1)
3.8 Measuring inventory performance	194	(1)
Summary	195	(1)
Unit Review Activity	196	(1)
Unit Summary	196	(1)
References	197	(1)
Recommended Reading	197	(1)
Answer to Unit Review Activity	197	(2)
Unit 5 Project Management	199	(62)
Introduction	200	(1)
Objectives	200	(1)
Section 1: Project Management	201	(12)
Introduction	201	(1)
1.1 Growth of project management	201	(4)
1.2 Major participants in project management	205	(2)
1.3 Project life cycles	207	(1)
1.4 Project documentation	208	(1)
1.5 Network planning techniques	209	(1)
1.6 Determining project activities	210	(2)
1.7 Logic principles	212	(1)
Summary	212	(1)
Section 2: Critical Path Method	213	(17)
Introduction	213	(1)
2.1 Symbols used in network planning	213	(1)
2.2 Logic conventions used in constructing the network	214	(1)
2.3 Subdivision of event symbols	215	(1)
2.4 Numbering the network	216	(3)
2.5 Determining activity times	219	(3)
2.6 Constructing the network	222	(1)
2.7 Entering activity times	223	(1)
2.8 Calculating the overall project duration	224	(1)
2.9 Float	224	(5)
2.10 Using computer packages in network planning	229	(1)
2.11 Potential problems of computer applications	229	(1)
Summary	229	(1)
Section 3: PERT	230	(2)
Introduction	230	(1)
3.1 Time estimates on networks	230	(1)
3.2 Probability of duration	230	(2)
Summary	232	(1)
Section 4: Project Resources	232	(13)
Introduction	232	(1)
4.1 Calculation of load	233	(1)
4.2 Histograms and Gantt charts	233	(2)
4.3 Project control	235	(1)
4.4 Project status reports	236	(2)
4.5 Milestones	238	(1)
4.6 Project cost scheduling	238	(2)
4.7 Crashing activities	240	(1)
4.8 Cost/time curve	241	(1)
4.9 Controlling variances	242	(1)
4.10 Project success	243	(1)
4.11 Project failure	244	(1)
Summary	244	(1)
Section 5: Activity-On-Node Technique (AON)	245	(7)
Introduction	245	(1)
5.1 Precedence diagrams	245	(2)
5.2 Networks using AON	247	(4)
Summary	251	(1)
Section 6: Line of Balance Technique	252	(9)
Introduction	252	(1)
6.1 Deriving the line of balance	252	(5)
Summary	257	(1)
Unit Review Activity	257	(1)
Unit Summary	258	(1)
References	258	(1)
Recommended Reading	258	(1)
Answers to Unit Review Activity	259	(2)
Unit 6 Quality Management	261	(78)
Introduction	262	(1)
Objectives	262	(1)
Section 1: What is Quality?	262	(10)
Introduction	262	(2)
1.1 Two views of quality	264	(3)
1.2 Customer expectations: moments of truth	267	(2)
1.3 Customer expectations: gap analysis	269	(2)
Summary	271	(1)
Section 2: Some Quality `Gurus'	272	(9)
Introduction	272	(1)
2.1 Deming	272	(4)
2.2 Juran	276	(2)
2.3 Crosby	278	(2)
2.4 Other quality gurus	280	(1)
Summary	280	(1)
Section 3: Total Quality Management	281	(10)
Introduction	281	(1)
3.1 Overview of TQM	281	(2)
3.2 The ISO 9000 system	283	(4)
3.3 The Baldridge and European Quality Awards	287	(3)
Summary	290	(1)
Section 4 Seven Tools of Quality	291	(11)
Introduction	291	(1)
4.1 The process chart	291	(1)
4.2 Pareto analysis	292	(2)
4.3 The Ishikawa diagram	294	(1)
4.4 The histogram and measles chart	295	(2)
4.5 Run diagrams	297	(2)
4.6 Correlation diagrams and stratification	299	(1)
4.7 Check sheets	300	(1)
Summary	301	(1)
Section 5: Statistical Process Control (SPC)	302	(13)
Introduction	302	(1)
5.1 Variables charts	302	(4)
5.2 Attribute charts	306	(2)
5.3 Process capability	308	(2)
5.4 Six Sigma	310	(1)
5.5 Alternatives to SPC	311	(3)
Summary	314	(1)
Section 6: Some Improvement Techniques	315	(15)
Introduction	315	(1)
6.1 Cost of quality	315	(2)
6.2 Benchmarking	317	(3)
6.3 Design of experiments	320	(2)
6.4 Quality Function Deployment	322	(6)
6.5 Kaizen	328	(1)
Summary	329	(1)
Section 7: Reliability and Maintenance	330	(9)
Introduction	330	(1)
7.1 Reliability	330	(3)
7.2 Maintenance	333	(2)
Summary	335	(1)
Unit review activity	335	(1)
Unit Summary	335	(1)
References	336	(2)
Recommended Reading	338	(1)
Unit 7 Productivity, methods and measurements	339	(66)
Introduction	340	(1)
Objectives	340	(1)
Section 1: Workforce Management Perspectives	341	(2)
Introduction	341	(1)
1.1 European perspectives	341	(1)
1.2 Japanese perspectives	342	(1)
Summary	343	(1)
Section 2: Productivity	343	(5)
Introduction	343	(1)
2.1 Definitions	344	(2)
2.2 Resources	346	(1)
2.3 Productivity-raising techniques	347	(1)
Summary	348	(1)
Section 3: Job Design	348	(4)
Introduction	348	(1)
3.1 Nature of job design	349	(1)
3.2 Problems	349	(1)
3.3 Strategies	350	(2)
Summary	352	(1)
Section 4: Problem Solving Using the Method Study Approach	352	(31)
Introduction	352	(1)
4.1 Objectives of method study	353	(1)
4.2 Methodology	353	(1)
4.3 The basic procedure	354	(2)
4.4 Step 1: Selecting the work to be studied	356	(1)
4.5 Step 2: Recording the facts	357	(13)
4.6 Step 3: Critical examination	370	(5)
4.7 Step 4: Developing the new method	375	(3)
4.8 Step 5: Installing the new method	378	(2)
4.9 Step 6: Maintaining the new method	380	(2)
4.10 Failure of projects	382	(1)
Summary	382	(1)
Section 5: Work Measurement	383	(22)
Introduction	383	(1)
5.1 Methodology	383	(2)
5.2 Time study	385	(11)
5.3 Activity sampling	396	(2)
5.4 Predetermined Motion Time Standards (PMTS)	398	(1)
5.5 Estimating systems	399	(1)
5.6 Financial incentive schemes	399	(2)
Summary	401	(1)
Unit Review Activity	401	(1)
Unit Summary	402	(1)
References	402	(1)
Recommended Reading	403	(1)
Answers to Unit Review Activity	403	(2)
Unit 8 Scheduling and Capacity	405	(54)
Introduction	406	(1)
Objectives	406	(1)
Section 1: Definitions and Concepts	406	(10)
Introduction	406	(1)
1.1 Scheduling in service industries	407	(1)
1.2 Scheduling in manufacturing industries	407	(1)
1.3 Capacity	408	(1)
1.4 Load	408	(1)
1.5 Scheduling and capacity: push and pull scheduling	409	(1)
1.6 Scheduling and capacity: finite and infinite scheduling	410	(1)
1.7 Scheduling and capacity: backward and forward scheduling	411	(1)
1.8 Capacity bottlenecks and OPT principles	412	(3)
Summary	415	(1)
Section 2: Scheduling Systems	416	(43)
Introduction	416	(1)
2.1 Evolution of manufacturing systems: an overview	416	(5)
2.2 Closed loop concept as a framework for scheduling and capacity in services and manufacturing	421	(3)
2.3 Aggregate plans in services and manufacturing	424	(7)
2.4 Master schedule in services and manufacturing	431	(5)
2.5 Rough Cut Capacity Planning in services and manufacturing	436	(3)
2.6 Material Requirements Planning in services and manufacturing	439	(1)
2.7 Capacity Requirements Planning and line balancing	439	(1)
2.8 Sequencing in services and manufacturing	440	(7)
2.9 Line balancing	447	(1)
2.10 Finite scheduling	448	(3)
2.11 Manufacturing scheduling in a repetitive environment	451	(1)
2.12 Queuing	452	(2)
Summary	454	(1)
Unit Review Activity	455	(1)
Unit Summary	455	(1)
References	456	(1)
Recommended Reading	457	(1)
Answer to Unit Review Activity	457	(2)
Unit 9 Time Based Operations	459	(72)
Introduction	460	(1)
Objectives	460	(1)
Section 1: History of Time	460	(6)
Introduction	460	(2)
1.1 Conceptual frameworks for time based operations	462	(3)
Summary	465	(1)
Section 2: Just-in-Time Operations	466	(13)
Introduction	466	(1)
2.1 JIT Scheduling	466	(2)
2.2 Pull, synchronisation and kanban	468	(6)
2.3 Final assembly scheduling under JIT	474	(4)
Summary	478	(1)
Section 3: Lean Operations	479	(18)
Introduction	479	(1)
3.1 Lean operations and waste elimination	479	(3)
3.2 Lean operations supporting techniques	482	(1)
3.3 Lean operations -- Stage 1	483	(7)
3.4 Lean operations -- Stage 2	490	(5)
3.5 Lean operations in service industry	495	(1)
Summary	496	(1)
Section 4: Time-Based Competitiveness	497	(22)
Introduction	497	(1)
4.1 Development of time-based competitiveness	497	(2)
4.2 Design for manufacture and simultaneous engineering	499	(1)
4.3 Time charting and analysis	500	(3)
4.4 Business process reengineering	503	(5)
4.5 Mass customisation	508	(1)
4.6 Agile manufacturing and agile enterprise	509	(1)
4.7 EDI, EPOS and bar coding	510	(1)
4.8 Supply chain management and quick response	511	(6)
Summary	517	(2)
Section 5: Suppliers and Purchasing	519	(12)
Introduction	519	(1)
5.1 The background	519	(1)
5.2 Supplier partnership	520	(2)
5.3 Network sourcing	522	(4)
Summary	526	(1)
Unit Review Activity	526	(1)
Unit Summary	527	(1)
References	527	(2)
Recommended Reading	529	(1)
Answer to Unit Review Activity	529	(2)
Resources section	531	(76)
1.1 Roots: the early pioneers	532	(8)
2.1 Strategic innovation	540	(5)
2.2 Life cycle engineering	545	(5)
2.3 Delphi technique	550	(1)
2.4 Hazard and operability study	551	(1)
2.5 Morphological analysis	552	(1)
3.1 Developing and introducing new consumer products	552	(10)
3.2 Travel charting and frequency travel charts	562	(1)
3.3 Ergonomics of layout planning	563	(1)
4.1 Inventory -- asset or liability?	564	(8)
5.1 What to look for when purchasing a network planning package	572	(1)
6.1 The straining of quality	572	(3)
6.2 Getting the numbers right	575	(5)
7.1 Critical examination guide sheet	580	(1)
7.2 Completed critical examination guide sheet	581	(1)
7.3 Critical examination sheet (completed for a specific activity)	582	(1)
7.4 Development stage sheet	583	(1)
7.5 Work specification sheet	584	(2)
7.6 Method change form	586	(1)
8.1 JIT and MRP II could make beautiful music together	586	(7)
9.1 Manufacturing technology survey	593	(3)
9.2 The supply chain revolution	596	(7)
9.3 The kindergarten that will change the world	603	(4)
Glossary	607