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9780471692096

Operations Management: Quality and Competitiveness in a Global Environment, 5th Edition

by ;
  • ISBN13:

    9780471692096

  • ISBN10:

    0471692093

  • Edition: 5th
  • Format: Hardcover
  • Copyright: 2005-01-01
  • Publisher: WILEY
  • Purchase Benefits
List Price: $218.70

Summary

Featuring an ideal balance of managerial issues and quantitative techniques, this new Fifth Edition of Russell and Taylor's comprehensive introduction to operations management keeps pace with current innovations and issues in the field, particularly those related to the impact of information technology and the global business environment on OM. The authors present the concepts clearly and logically, and help students see how OM relates to real business. Russell and Taylor recognize that many students struggle with the quantitative material in their Operations Management course. That's why their text offers extensive collection of exercises and solved problems, along with outstanding problem-solving support, including eGrade Plus. eGrade Plus links problems from the book to relevant sections in an online version of the text, and provides opportunities for practice and a quantitative survival guide.

Table of Contents

Preface.
PART ONE: DESIGNING A PRODUCTIVE SYSTEM.
1. Operations and Competitiveness.
The Operations Function.
The Evolution of Operations Management.
Operations Management in the Service Sector.
Operations Management in an E-Business Environment.
Globalization.
It’s a Global Workforce.
Risks of Globalization.
The Balancing Act at New Balance.
Competitiveness.
Productivity as a Measure of Competitiveness.
Competitive Industries.
Competitive Firms.
An Overview of the Scope of Operations Management.
Strategy.
Quality.
Products and Services.
Processes, Technology, and Capacity.
Facilities.
Human Resources.
Project Management.
The Supply Chain.
Forecasting.
Planning and Scheduling.
Learning Objectives of This Course.
Summary.
Summary of Key Terms.
Questions.
Problems.
Case Problem 1.1: What Does It Take to Compete?
Case Problem 1.2: Value-Added Operations at Lands’ End.
References.
2. Operations Strategy.
Strategy Formulation.
Competitive Priorities.
Competing on Cost.
Competing on Quality.
Competing on Flexibility.
Competing on Speed.
Operations’ Role in Corporate Strategy.
Strategy and the Internet.
Strategic Decisions in Operations.
Products and Services.
Processes and Technology.
Capacity and Facilities.
Human Resources.
Quality.
Sourcing.
Operating Systems.
Strategy Deployment.
The Strategic Planning Hierarchy.
Policy Deployment.
Balanced Scorecard.
Issues and Trends in Operations.
Summary.
Summary of Key Terms.
Questions.
Case Problem 2.1: Visualize This.
Case Problem 2.2: Whither an MBA at Strutledge?
Case Problem 2.3:Weighing Options at the Weight Club.
References.
SUPPLEMENT.
2. Operational Decision-Making Tools: Decision Analysis.
Decision Analysis.
Decision Making without Probabilities.
Decision Analysis with Excel.
Decision Making with Probabilities.
Expected Value of Perfect Information.
Sequential Decision Trees.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problem.
Problems.
Case Problem S2.1: Transformer Replacement at Mountain States Electric Service.
Case Problem S2.2: Evaluating Projects at Nexcom Systems.
References.
3. Quality Management.
The Meaning of Quality.
Quality from the Consumer’s Perspective.
Dimensions of Quality: Manufactured Products.
Dimensions of Quality: Services.
Quality from the Producer’s Perspective.
The Meaning of Quality: A Final Perspective.
Total Quality Management.
The Evolution of Total Quality Management.
Principles of Total Quality Management.
TQM and Business Partners.
TQM and Customers.
The Challenge of Becoming A Whirlpool Supplier in a TQM Environment.
TQM and Information Technology.
Quality Improvement and the Role of Employees.
Kaizen and Continuous Improvement.
Quality Circles.
Process Improvement Teams.
Strategic Implications of TQM.
Leadership.
Goals.
Plans.
Feedback.
Six Sigma.
The Six Sigma Goals—3.4 DPMO.
Improvement Projects.
The Breakthrough Strategy: DMAIC.
Black Belts and Green Belts. *Six Sigma at Bank of America.
Design for Six Sigma.
TQM in Service Companies.
Quality Attributes in Services. *Quick Service and Customer Satisfaction at Pal’s Sudden Service. *Ritz-Carlton Hotels: Two-Time Baldridge National Quality Award Winner.
The Cost of Quality.
The Cost of Achieving Good Quality.
The Cost of Poor Quality.
Measuring and Reporting Quality Costs.
The Quality–Cost Relationship. *Reducing Quality Costs at Seagate Technology.
The Bottom Line—Profitability.
The Effect of Quality Management on Productivity.
Productivity.
Measuring Product Yield and Productivity.
The Quality–Productivity Ratio.
Identifying Quality Problems and Causes.
Pareto Analysis.
Process Flowcharts.
Check Sheets and Histograms.
Scatter Diagrams.
Process Control Charts and Statistical Quality Control.
Cause-and-Effect Diagrams.
Quality Awards and Setting Quality Standards.
The Malcolm Baldrige Award. *Baldridge Quality Award Winners: What It Takes.
Other Awards for Quality. *The Chugach School District, A Baldrige Award Winner in Education. *Quality Award Winners in Hungary.
American Customer Satisfaction Index.
ISO 9000.
Standards.
Certification. *Global ISO 9001 Certification at Dow Corning.
Implications of ISO 9000 for U.S. Companies.
ISO 9000 Accreditation.
ISO Registrars.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 3.1: Designing a Quality-Management Program for the Internet at D4Q.
Case Problem 3.2: TQM at State University.
Case Problem 3.3: Quality Problems at the Tech Bookstores.
Case Problem 3.4: Product Yield at Continental Luggage Company.
Case Problem 3.5: US East Airlines.
References.
4. Statistical Process Control.
The Basics of Statistical Process Control.
SPC in TQM.
Quality Measures: Attributes and Variables.
SPC Applied to Services.
Where to Use Control Charts.
Control Charts.
Control Charts for Attributes.
p-Chart.
c-Chart. *Using Control Charts for Improving Health-Care Quality.
Control Charts for Variables.
Mean ( -) Chart.
Range (R-) Chart.
Using - and R-Charts Together. *Using Control Charts at Kentucky Fried Chicken.
Control Chart Patterns. *Using -Charts at Frito-Lay.
Sample Size Determination.
SPC with Excel.
Process Capability.
Process Capability Measures.
Design Tolerances at Harley-Davidson Company.
Computing Process Capability Measures with Excel.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 4.1: Quality Control at Rainwater Brewery.
Case Problem 4.2: Quality Control at Grass, Unlimited.
Case Problem 4.3: Improving Service Time at Dave’s Burgers.
References.
SUPPLEMENT.
4. Operational Decision-Making Tools:Acceptance Sampling.
Single-Sample Attribute Plan.
Producer’s and Consumer’s Risks.
The Operating Characteristic Curve.
Developing a Sampling Plan with Excel.
Average Outgoing Quality.
Double- and Multiple-Sampling Plans.
Summary.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
5. Products and Services.
The Design Process.
Idea Generation.
Great Ideas from IDEO.
Feasibility Study.
Rapid Prototyping.
Form Design.
Functional Design.
Production Design.
Final Design and Process Plans.
Reducing Time-to-Market.
Design Teams.
Concurrent Design.
Design for Manufacture and Assembly.
Technology in Design.
H&Ms Lightning Fast Design-to-Market Time.
Collaborative Product Commerce.
Improving the Quality of Design.
Design Review.
Design for Environment.
Metrics for Design Quality.
Quality Function Deployment.
Design for Robustness.
Special Considerations in Service Design.
Characteristics of Services.
The Service Design Process.
Bank of America’s Innovation Experiments.
Summary.
Summary of Key Terms.
Summary of Key Formulas.
Solved Problems.
Questions.
Problems.
Case Problem 5.1: Lean and Mean.
References.
6. Processes, Technology, and Capacity.
Process Planning.
Make-or-Buy Decisions.
Process Selection.
Projects.
Factories for Hire.
Process Selection with Breakeven Analysis.
Process Plans.
Process Analysis.
Process Innovation.
Steps in Process Innovation.
Progressive Innovates Processes.
Technology Decisions.
Financial Justification of Technology.
A Technology Primer.
Capacity Decisions.
Capacity Planning.
Diseconomies of Scale.
Summary.
Summary of Key Terms.
Summary of Key Formulas.
Solved Problem.
Questions.
Problems.
Case Problem 6.1: A Manager’s Woes.
Case Problem 6.2: Herding the Patient.
Case Problem 6.3: Streamlining the Refinancing Process.
References.
7. Facilities.
Basic Layouts.
Process Layouts.
Product Layouts.
Fixed-Position Layouts.
Designing Process Layouts.
Block Diagramming.
Relationship Diagramming.
Computerized Layout Solutions.
Designing Service Layouts.
Shared Spaces.
Designing Product Layouts.
Line Balancing.
Computerized Line Balancing.
Hybrid Layouts.
Cellular Layouts.
Rowe’s Cells Make Sofas Fly.
Flexible Manufacturing Systems.
Mixed-Model Assembly Lines.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 7.1:Workout Plus.
Case Problem 7.2: Photo Op—Please Line Up.
Case Problem 7.3: Jetaway Industries.
References.
SUPPLEMENT.
7. Operational Decision-Making Tools: Facility Location Models.
Types of Facilities.
Site Selection: Where to Locate.
Global Location Factors.
Regional and Community Location Factors in the United States.
Location Incentives.
Location Analysis Techniques.
Location Factor Rating.
Location Factor Rating with Excel.
Center-of-Gravity Technique.
Center-of-Gravity Technique with Excel.
Load-Distance Technique.
Load-Distance Technique with Excel.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
Case Problem S5.1: Selecting a European Distribution Center.
Site for American International Automotive Industries.
References.
8. Human Resources.
Human Resources and Quality Management.
Employee-Driven Success at Sears.
The Changing Nature of Human Resources Management.
The Assembly Line.
Limitations of Scientific Management.
Employee Motivation.
Contemporary Trends in Human Resources Management.
Job Training.
Cross Training.
Job Enrichment.
Empowerment.
Teams.
Flexible Work Schedules.
Alternative Workplaces and Telecommuting.
Telecommuting at Merrill Lynch.
Part-Time Employees at UPS.
Temporary and Part-Time Employess.
Employee Compensation.
Types of Pay.
Gainsharing and Profit Sharing.
Managing Diversity in the Workplace.
Affirmative Action and Equal Opportunity.
Diversity Management Programs.
Global Diversity Issues.
Job Design.
The Elements of Job Design.
Task Analysis.
Worker Analysis.
Environmental Analysis.
Ergonomics.
Technology and Automation.
Job Analysis.
Process Flowchart.
Worker-Machine Chart.
Motion Study.
Learning Curves.
Determining Learning Curves with Excel.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
Case Problem 8.1: Maury Mills.
References.
SUPPLEMENT.
8. Operational Decision-Making Tools: Work Measurement.
Time Studies.
Stopwatch Time Study.
Number of Cycles.
Elemental Time Files.
Predetermined Motion Times.
Work Sampling.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem S8.1: Measuring Faculty Work Activity at State University.
References.
9. Project Management.
Project Planning.
Elements of a Project Plan.
The Project Team.
The Project Manager.
Scope Statement.
Work Breakdown Structure.
Responsibility Assignment Matrix.
Global Issues in Project Planning.
Project Scheduling.
The Gantt Chart.
Project Control.
Time Management.
Cost Management.
Quality Management.
Performance Management.
Communication.
Enterprise Project Management.
The Mars Pathfinder Project.
CPM/PERT.
The Project Network.
AOA Network.
AON Network.
The Critical Path.
Activity Scheduling.
Activity Slack.
Disposing of the Trojan Nuclear Reactor.
Probabilistic Activity Times.
Probabilistic Time Estimates.
Probabilistic Network Analysis.
Microsoft Project.
PERT Analysis with Microsoft Project.
Project Crashing and Time–Cost Trade-Off.
Kodak’s Advantix Advanced Photo System (APS) Project.
Project Crashing.
The General Relationship of Time and Cost.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
Case Problem 9.1: The Bloodless Coup Concert.
Case Problem 9.2: Moore Housing Contractors.
References.
PART TWO: OPERATING THE PRODUCTIVE SYSTEM.
10. Supply Chain Management.
Supply Chains for Service Providers.
Value Chains.
Supply Chain Management.
Supply Chain Uncertainty and Inventory.
The Bullwhip Effect.
Supply Chain Management at 3M.
Information Technology: A Supply Chain Enabler.
Electronic Business.
Electronic Data Interchange.
Bar Codes.
Radio Frequency Identification.
The Internet.
Build-to-Order (BTO).
Supply Chain Integration.
Collaborative Planning, Forecasting, and Replenishment.
Suppliers.
Supplier Teamwork.
Outsourcing.
Single-Sourcing.
Supplier Awards at Intel.
E-Procurement.
E-Marketplaces.
Reverse Auctions.
Virtual Manufacturing at Palm, Inc.
The Wal-Mart Supply Chain.
Distribution.
Speed and Quality.
Amazon.com.
Distribution Centers and Warehousing.
Postponement.
Warehouse Management Systems.
Distribution and Warehouse Management at Timberland.
Vendor-Managed Inventory.
Vendor-Managed Inventory (VMI) at Dell.
Collaborative Logistics.
Distribution Outsourcing.
Transportation.
Internet Transportation Exchanges.
Supply Chain Management (SCM) Software.
Measuring Supply Chain Performance.
Key Performance Indicators.
Process Control.
SCOR.
Supply Chain Management at Kraft Foods.
The Global Supply Chain.
Obstacles to Global Supply Chain Management.
Duties, Tariffs, and Global Trading Groups.
Hong Kong—Based Global Supply Chain Management at Li & Fung.
Landed Cost.
Web-Based International Trade Logistics Systems.
Global Supply Chains in France.
Global Supply Chain Management at Hyundai Motor Company.
Recent Trends in Globalization for U.S. Companies: Mexico and China.
Effects of 9/11 on Global Supply Chains.
Summary.
Summary of Key Terms.
Summary of Key Formulas.
Solved Problem.
Questions.
Problems.
Case Problem 10.1: Somerset Furniture Company’s Global Supply Chain.
References.
SUPPLEMENT.
10. Operational Decision-Making Tools: Transportation and Transshipment Models.
The Transportation Model.
Solution of the Transportation Model with Excel.
The Transshipment Model.
Solution of the Transshipment Problem with Excel.
Summary.
Summary of Key Terms.
Solved Problem.
Problems.
Case Problem S10.1: Stateline Shipping and Transport Company.
Case Problem S10.2: Global Supply Chain Management at Cantrex Apparel International.
References.
11. Forecasting.
The Strategic Role of Forecasting in Supply Chain Management and TQM.
Supply Chain Management.
Total Quality Management.
Strategic Planning.
Components of Forecasting Demand.
Time Frame.
Demand Behavior.
Forecasting Service Calls at Federal Express.
Forecasting Methods.
Forecasting Process.
Time Series Methods.
Moving Average.
Weighted Moving Average.
Exponential Smoothing.
Forecasting Customer Demand at Taco Bell.
Adjusted Exponential Smoothing.
Linear Trend Line.
Seasonal Adjustments.
Seasonal Forecasting at Dell.
Forecast Accuracy.
Mean Absolute Deviation.
Cumulative Error.
Forecast Control.
Time Series Forecasting Using Excel.
Regression Methods.
Linear Regression.
Correlation.
Regression Analysis with Excel.
Multiple Regression with Excel.
Forecasting Daily Demand in the Gas Industry.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 11.1: Forecasting at State University.
Case Problem 11.2: The University Bookstore Student Computer Purchase Program.
Case Problem 11.3: Cascades Swim Club.
References.
12. Inventory Management.
The Elements of Inventory Management.
The Role of Inventory in Supply Chain Management.
Demand.
Inventory and Quality Management.
Inventory Costs.
Inventory Control Systems.
Continuous Inventory Systems.
Periodic Inventory Systems.
The ABC Classification System.
Economic Order Quantity Models.
The Basic EOQ Model.
The Production Quantity Model.
Computer Solution of EOQ Models with Excel.
Quantity Discounts.
Parts Inventory Management at Teradyne.
Quantity Discounts with Constant Carrying Cost.
Electronic Auctions for Quantity-Discount Orders at Mars, Inc.
Quantity-Discount Model Solution with Excel.
Reorder Point.
Safety Stocks.
Service Level.
Reorder Point with Variable Demand.
Establishing Inventory Safety Stocks at Kellogg’s.
Determining the Reorder Point with Excel.
Order Quantity for a Periodic Inventory System.
Order Quantity with Variable Demand.
Determining the Order Quantity for the Fixed-Period Model with Excel.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 12.1: The Instant Paper Clip Office Supply Company.
Case Problem 12.2: The Texas Gladiators Apparel Store.
Case Problem 12.3: Pharr Foods Company.
References.
SUPPLEMENT.
12. Operational Decision-Making Tools: Simulation.
Monte Carlo Simulation.
Computer Simulation with Excel.
Decision Making with Simulation.
Areas of Simulation Application.
Waiting Lines/Service.
Inventory Management.
Production and Manufacturing Systems.
Capital Investment and Budgeting.
Logistics.
Service Operations.
Environmental and Resource Analysis.
Summary.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
References.
13. Aggregate Planning.
The Aggregate Planning Process.
Strategies for Adjusting Capacity.
Level Production.
Chase Demand.
Following the Harvest.
Peak Demand.
Overtime and Undertime.
Subcontracting.
Part-Time Workers.
More Green for Green Mountain Coffee.
Strategies for Managing Demand.
Quantitative Techniques for Aggregate Production Planning.
APP Using Pure Strategies.
APP Using Mixed Strategies.
General Linear Programming Model.
APP by the Transportation Method.
Other Quantitative Techniques.
The Hierarchical Nature of Planning.
Collaborative Planning.
Available-to-Promise.
Aggregate Planning for Services.
Yield Management.
Summary.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 13.1: Have a Seat, Bloke.
Case Problem 13.2: Erin’s Energy Plan.
References.
SUPPLEMENT
13. Operational Decision-Making Tools: Linear Programming.
Model Formulation.
Graphical Solution Method.
Linear Programming Model Solution.
The Simplex Method.
Operational Cost Control at Kellogg’s.
Slack and Surplus Variables.
Solving Linear Programming Problems with Excel.
Sensitivity Analysis.
Sensitivity Ranges.
Summary.
Summary of Key Terms.
Solved Problem.
Questions.
Problems.
Case Problem S13.1: Mossaic Tile Company.
Case Problem S13.2: Summer Sports Camp at State University.
Case Problem S13.3: Spring Garden Tools.
Case Problem S13.4:Walsh’s Juice Company.
Case Problem S13.5: Julia’s Food Booth.
References.
14. Resource Planning.
Material Requirements Planning (MRP).
When to Use MRP.
Master Production Schedule.
Product Structure File.
Time-Phased Bills.
Item Master File.
Five Million Possibilities at Hubbell Lighting.
The MRP Process.
Lot Sizing in MRP Systems.
MRP Outputs.
Capacity Requirements Planning (CRP).
Overloads.
Load Leveling.
Relaxing MRP Assumptions.
Enterprise Resource Planning (ERP).
ERP Modules.
Finance Accounting.
Best-of-Breed at Best Buy.
ERP Implementation.
Operational Excellence at Nike.
Customer Relationship Management (CRM).
Supply Chain Management (SCM).
Collaborative Product Commerce (CPC).
Connectivity.
Summary.
Summary of Key Terms.
Questions.
Solved Problems.
Problems.
Case Problem 14.1: Hosuki.
References.
15. Lean Production.
The Basic Elements of Lean Production.
Flexible Resources.
Cellular Layouts.
Lean Service at Jefferson Pilot.
The Pull System.
Kanbans.
Small Lots.
Quick Setups.
Uniform Production Levels.
Quality at the Source.
Xerox is Back, Thanks to Lean Six Sigma.
Total Productive Maintenance.
Supplier Networks.
As You Like It.
The Benefits of Lean Production.
Implementing Lean Production.
TPS, A Learning Organization.
Drawbacks of Lean Production.
Lean Services.
Lean Retailing at Blockbuster.
Lean Banking.
Lean Health Care.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Questions.
Problems.
Case Problem 15.1: The Blitz is On.
Case Problem 15.2: Where’s My Cart.
References.
16. Scheduling.
Objectives in Scheduling.
Loading.
The Assignment Method of Loading.
Sequencing.
Sequencing Jobs Through One Process.
Sequencing Jobs Through Two Serial Processes.
Guidelines for Selecting a Sequencing Rule.
Monitoring.
Gantt Charts.
Input/Output Control.
Advanced Planning and Scheduling Systems.
Scheduling—More Important than Ever.
Theory of Constraints.
Drum-Buffer-Rope.
Process vs. Transfer Batch Sizes.
Employee Scheduling.
Automated Scheduling Systems.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 16.1: From a Different Perspective.
References.
17. Waiting Line Analysis for Service Improvement.
Elements of Waiting Line Analysis.
Elements of a Waiting Line.
The Calling Population.
Arrival Rate.
Service Times.
Arrival Rate Less Than Service Rate.
Queue Discipline and Length.
Basic Waiting Line Structures.
Operating Characteristics.
Waiting Line Analysis and Quality.
The Traditional Cost Relationship in Waiting Line Analysis.
Improving Waiting Time in England’s National Health Service.
Waiting Line Costs and Quality Service.
The Psychology of Waiting.
The Psychology of Waiting at Bank of America.
Single-Server Models.
The Basic Single-Server Model.
Service Improvement Analysis.
Solution of the Single-Server Model with Excel.
Constant Service Times.
Solution of the Constant Service Time Model with Excel.
Finite Queue Length.
Excel Solution of the Finite Queue Length Model.
Finite Calling Populations.
Solution of the Finite Population Model with Excel.
Multiple-Server Model.
The Basic Multiple-Server Model.
Solution of the Multiple-Server Model with Excel.
Summary.
Summary of Key Formulas.
Summary of Key Terms.
Solved Problems.
Questions.
Problems.
Case Problem 17.1: The College of Business Copy Center.
Case Problem 17.2: Northwoods Backpackers.
References.
EPILOGUE.
APPENDIX A—Normal Curve Areas.
SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS.
INDEX.

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