Index

ABC classification, 21821

Acceptable quality level (AQL), 2778

Acceptance sampling, 2769

sampling plans, 2789

Activity-based accounting (ABC), 31213

Activity-on-arrow (AOA) diagrams, 2535

Activity-on-node (AON) diagrams, 255

Aggregate demand, 185

Aggregate planning, 21011, 246

Agile manufacturing, 52, 534, 114, 1223

versus mass customization, 123

Alliances:

Japanese companies, 365

world-class operations, 3547

Amazon.com, 3, 56, 74, 318

American System of Manufacture (ASM), 223, 24, 271

Andersen Consulting, 3

Apple Computers, 38, 41, 55, 83, 2345

Appraisal costs, 279

Arithmetic Integrated Moving Average (AriMA) models, 385

Arrival process, 41819

Assets, 20

Assignment modelling, 398403

Attributes, 276

Automation, 172

Automobile industry, 1612

Averages, 1812, see also Moving average technique

Back-room operations, 170

Balanced scorecard, 31314

Batch production, 223, 106, 114, 210

Bell Telephone Labs, 271

Benchmarking, 32732

objectives of, 32930

stages of benchmarking process, 3302

types of, 329

Bi-variate data, 3723

Bin systems, 218

Body Shop, 28990

Botchit and Leggit, 99100

Bottlenecks, 2323

Bradford Health Trust, 329

Bridge model, 269 British Petroleum (BP), 1556

British Standards Institute (BSI), 287

Buffer inventory, 212

Bullwhip effect, 1923

Business process re-engineering (BPR), 3257

process mapping, 3267

Café Aroma, 213

Calling population, 41718

Capacity, 16378

definitions, 1645

actual capacity, 165

design capacity, 164

theoretical capacity, 164

Capacity (cont.)

inputs to, 16677

acquiring inputs and distributing outputs, 177, 211

facilities, 16771

technology, 171

workforce, 1717

management in service operations, 18891

demand management, 18890

supply management, 1901

management in supply operations, 1913

measurement of, 1656

over-capacity, 162

strategic capacity planning, 1838

chase strategies, 187

demand management strategies, 1878

level capacity strategies, 186

long-range capacity planning, 185

medium-range capacity planning, 1856

Capacity requirements planning (CRP), 224

Carrefour, 104 Caterpillar, 40 Causal forecasting methods, 180, 182

Cellular layout, 11719, 229

Certification, 2868

Chain-based relatives, 398

Chase strategies, 187

Chief Executive Officer (CEO), 54

role in managing operations, 5962

Chrysler, 1623, 356

Co-production, 58

Communications management, in projects, 244

Communications technology, 29

Compaq Corporation, 38, 83

Competition, 14, 49, 52

Computer-aided design (CAD), 8990

Computer-aided manufacturing (CAM), 89

Computer-integrated Manufacturing (CIM), 123

Computers, 29, see also Technology

Concurrent new product development (CNPD), 878

Conformity, 275, see also Quality Consumer's risk, 277

Continuous improvement, 2989, 31825

fishbone diagram, 3223

five-why process, 3245

Pareto diagrams, 323

PDCA cycle, 3212

world-class operations, 3467

Continuous inventory systems, 21617

economic order quantity (EOQ) systems, 21617

fixed-order quantity systems, 216

Continuous production, 1078, 113, 210

Control, 183

Copyright, 94

Core competences, 19

Correlation techniques, 3824

Costs:

cost transparency, 141

labour costs, 311

management of, 201

of inventory, 21516

of quality, 27981

overhead costs, 310

project cost management, 244

supply strategy, 141

Craft production, 22, 47, 112, 178, 270

Critical Chain Methods, 241

project planning, 2568

Critical Path Analysis (CPA), 241, 2545

Critical ratio (CR), 196

Cross-functional teams, 867

Customer attributes, 295

Customer complaints, 293

Customer contact, 16

Customer flows, 2059

queuing, 2068, 41626

services as customer processing, 209

Customer satisfaction, 290

Customer-driven quality, 297

Customization, 78

Daewoo, 162

DaimlerChrysler, 1623, 351, 356

Delegated sourcing strategy, 1534

Dell Computers, 3, 30, 41, 55, 221

Delphi technique, 180, 182

Demand, 179

aggregate demand, 185

forecasting, 17982

causal methods, 180, 182

qualitative methods, 180, 182

time series methods, 180, 1812

management strategies, 1878

service operations, 18890

matching supply and demand, 18297

planning and control, 18393

scheduling, 1937

Deming Prize, 2934

Dependent variable, 378

Dependent-demand inventory, 221

Design capacity, 164

Design quality, 2946

Design right law, 94

Direct labour costs, 311

Direct Line, 74

Direct workers, 171

Disney Corp., 80, 345

Double sampling plan, 278

Downsizing, 3434

Du Pont, 241

Dyson, 812

Earliest due date (EDD), 195

Earliest event time (EET), 253

Early conflict resolution (ECR), 88

Economic order quantity (EOQ) systems, 21617

Economies of scale, 103, 16870

Economy, 30910

Effectiveness measures, 141, 311

Efficiency measures, 140, 141, 31011

Efficient Consumer Response (ECR), 192

EMI, 75

Employees, 28

involvement of, 298

see also Human resource management; Workforce

Enterprise Resource Planning (ERP), 123, 226, 316

Environment, 29

environmental responsibility, 35962

Ethics, 28

world-class operations, 35762

environmental responsibility, 35962

operations management and, 3579

European Quality Award, 294

External demand, 179

External failure costs, 280, 281

Facilities:

economies of scale, 16870

layout, 1701

location, 1678

Farmhouse Cheesemakers’ Cooperative, 2657

Federal Express, 58, 345

Finished-goods inventories, 212

Finite loading, 194

First come, first served (FCFS), 195

First Direct Bank, 678, 83, 293

First-mover advantage, 74

Fishbone diagram, 3223

Five-why process, 3245

Fixed time period systems, 217

Fixed-based relatives, 398

Fixed-order quantity systems, 216

Fixed-position layout, 11415

Flexible manufacturing systems (FMS), 11011, 123

Flexible specialization, 52

Flows, see Operations flow management Ford, 234, 86, 176, 3501

Forecasting, 3945

demand, 17982

causal methods, 180, 182

qualitative methods, 180, 182

time series methods, 180, 1812

seasonal variation and, 3914

calculation of seasonal variation, 3913

seasonally adjusted time series, 3934

Front-room operations, 170

Futurists, 182

Gantt chart, 1967, 2512

Gaps model, 2902

General Motors, 234, 39, 1234

Gillette, 78, 107

Globalization, 28

Hewlett Packard, 46, 121

Hollola Roll Finishing plant, 3067

Honda, 38, 41, 320, 3512

Hospitals, 203

House of quality matrix, 295, 296

Human resource management, 1920

downsizing, 3434

in world-class operations, 3424

project human resource management, 244

see also Employees; Workforce Hybrid cells, 11719

IBM, 38, 349

Independent variable, 378

Independent-demand inventory, 221

Index numbers, 3958

definition of, 3967

index relatives, 3978

time series of relatives, 398

notation, 397

Indirect workers, 171

Infinite loading, 194

Information flows, 21011

Information technology, see Computers; Technology

Innovation, 20, 68, 69, 71

Japanese companies, 3656

world-class operations, 34753

see also New product development (NPD)

Inspection:

quality control, 276

regression line calculation, 377

Intangibility, 16

Intellectual property, 94

Internal demand, 179

Internal failure costs, 280

Invention, 69

Inventory, 21122

costs of, 21516

location of, 21214

management of, 21522

ABC classification, 21821

continuous inventory systems, 21617

independent- and dependent-demand inventory, 2212

periodic inventory systems, 21718

reasons for, 21415

Investment, 489

Ishikawa diagram, 322

Japanese production systems, 245, 75, 2723, 31920, 3636

alliances, 365

innovation, 3656

making best use of limited resources, 364

manufacturing focus, 3634

recent trends, 366

strategy, 3645

Jobbing, 105, 113

Jobs, 173

Just-in-time (JIT) production, 24, 25, 50, 136, 22732

comparison with manufacturing resources planning (MRP), 2312

origins of, 2278

requirements of, 2301

Kaizen, see Continuous improvement Kanban production control, 22930

Key Performance Indicators (PKI), 8

KeyLine, 208

Komatsu, 40

Labour costs, 311

Labour specialization, 173

Land Rover, 78

Lane Group, 290

Last arrived, first processed (LAFP), 1956

Latest event time (LET), 253, 254

Layout, see Facilities; Processes

Leadership, quality and, 298

Lean production, 52, 135

world-class operations and, 33842

Lean supply management, 135

Learning curves, 1767

Least slack time, 196

Least squares method, 37782, 3856

Lexus, 30

Lincoln Electric, 176

Line operations, 1067, 113, 210

Linear functions, 3746

determining the gradient of a given line, 3756

Linear regression, 182

Loading, 194

Longest processing time (LPT), 195

Lot tolerance percent defective (LTPD) level, 2778

Lucent Technologies, 257

McDonald's, 3, 29, 207

Make-to-order, 213

Make-to-stock, 213

Malcolm Baldrige National Quality Award (MBNQA), 294

Manufacturing operations, 1418

capacity measurement, 165

challenges for operations management, 302

inventories, 212

Japanese companies, 3634

materials flows, 20910

process design trends, 1203

agile manufacturing, 1223

mass customization, 1212, 123

Manufacturing resource planning (MRP), 2256

comparison with JIT, 2312

limits of, 2267

Manufacturing strategy, 4757

emergence of the strategic importance of operations, 4951

modern era, 525

strategic resonance, 557

Manufacturing transformation, 9, 10

Manufacturing-based quality, 268

Market pull, 76

Market segment, 41112

Market-led strategies, 45

Martin's Aeronautics, 273, 340

Mass customization, 52, 114, 1212

versus agile manufacturing, 123

Mass production, 24, 478, 49, 178, 353

Mass services, 11112

Materials flows, 20910

management of, 210

see also Inventory

Materials requirements planning systems (MRP), 2224

Mazda, 11011

Mergers and alliances, world-class operations, 3547

Meta suppliers, 133

Method study, 172, 1745

Microsoft, 171

Modular design, 96

Mongolian Wok, 59

Monte Carlo simulation, 4224

Motorola, 74

Moving average technique, 1812, 385, 38890

centring a moving average series, 38990

Multi-skilling, 172, 229

Multi-variate data, 373, 376

Multiple sourcing, 1523

Mumford's Machine Tools, 1989

Mystery shopping, 293

National Patent Office, 94

New product development (NPD), 6972

best practice in, 8594

concurrent engineering, 878

cross-functional teams, 867

process integration, 8890

quality function deployment, 924

strategic management of development projects, 90

supplier involvement, 86

importance of, 726

failure factor, 756

time-to-market, 745

process of, 7685

developing the product concept, 7982

developing the product design, 825

filters, 78, 79

testing and delivery, 85

success measures, 73

tools and techniques, 901

NHS Drop-in Centres, 203, 208

Nokia, 3

Non-profit organizations, capacity management, 166

Noodle bars, 4067

Nordstrom's, 78

NUMMI plant, 173, 174

Oakmead Social Services office, 1257

Obodex Computers Limited, 3001

Operating characteristics curve (OC), 278

Operational research techniques, 398403

Operations, 34, 212

as an open system, 268

definition, 56

models of, 811

manufacturing transformation, 9, 10

service transformation, 9, 10

strategic importance of, 4951

typology of, 1318

see also Manufacturing operations; Service operations

Operations flow management, 20511

computerized systems, 2227

enterprise resource planning (ERP), 226

manufacturing resource planning (MRP), 2257

materials requirements planning systems (MRP), 2224

customer flows, 2059

queuing, 2068

services as customer processing, 209

information flows, 21011

materials flows, 20910

theory of constraints, 2324

see also Inventory; Just-in-time production

Operations management, 67

current issues, 268

new scope of operations management, 26

operations as an open system, 268

environmental responsibility and, 35962

ethics and, 3579

history of, 216

new pressures on, 289

role of Chief Executive Officer (CEO), 5962

Operations managers, 6

new imperatives, 29

responsibilities of, 1921, 523, 100, 2034, 342

assets, 20

costs, 201

human resources, 1920

role of, 1113, 100

strategic role, 467

Operations researchers, 120

Operations strategy, 1012

Optimized Production Technology (OPT), 2324

Orange, 80

Organizational complexity, 243

Organizational structure, 1412

supply strategy and, 1423

Over-capacity, 162

Overhead costs, 310

P-chart, 285

Parallel sourcing, 1545

Pareto principle, 218, 323

Parkway Theatre, Oakland, 1878

Patents, 94

PDCA cycle, 320, 3212, 330

Performance, 7, 8

objectives, 29

see also Continuous improvement; Radical performance improvement

Performance measurement, 30718

designing a performance measurement system, 31416

enlightened performance measures in practice, 31618

historical perspective, 30911

economy, 30910

effectiveness, 311

efficiency, 31011

new approaches, 31114

activity-based accounting (ABC), 31213

balanced scorecard, 31314

service operations issues, 317

supply issues, 1401, 31718

Periodic inventory systems, 21718

Phased Delivery Processes (PDP), 249

Pizza Hut, 293

Planning, 1834, 210

aggregate planning, 21011

project planning, see Project management

strategic capacity planning, see Capacity

Platform products, 778

Policies, 78

Practices, 78

Pre-determined motion time studies (PMTS), 173

Prêt a Manger, 21213

Prevention costs, 279

Price relative index, 397

Process control, 2826

control charts, 2836

attribute charts, 2856

for variables, 2835

process capability, 286

statistical process control (SPC), 282, 286

Process design, 1013

Process intensive developments, 78

Process mapping, 3267

Processes, 7, 256

definition of, 6

manufacturing process design trends, 1203

agile manufacturing, 1223

mass customization, 1212, 123

physical layout, 103, 11320

fixed position layout, 11415

hybrid process/product cell, 11719

process choice and, 11314, 11920

process layout, 11516

product layout, 11617

process integration, 8890

service processes, 11112

technology role in process design, 1234

types of, 10311

batch, 223, 106, 114, 210

continuous, 1078, 113, 210

flexible manufacturing systems (FMS), 11011, 123

job, 105, 113

line, 1067, 113, 210

project, 1045, 113, 210, 23940

Producer's risk, 277

Product layout, 11617

Product moment correlation, 382

Product-based quality, 268

Products:

life cycle, 6971, 10810

platform products, 778

see also New product development (NPD)

Professional services, 111, 114

Programme Evaluation and Review Technology (PERT), 241

Programme of work, 2456

Project management, 2412

communications management, 244

cost management, 244

designing the project process, 2457

human resource management, 244

integration management, 244

key project processes, 2425

procurement management, 244

project planning, 24658

activity-on-arrow (AOA) diagrams, 2535

activity-on-node (AON) diagrams, 255

critical chain project planning, 2568

Gantt charts, 2512

overall plan, 2478

project planning software, 2556, 260

stage-gate planning, 24950

work breakdown structure (WBS), 2489

risk management, 244

scope management, 244

time management, 244

Projects, 1045, 113, 210, 23940

project complexity, 2435

Prototypes, 85, 89

Public Private Finance (PPF), 134

Purchasing, 28, 131, 1323

definition, 132

evolution to supply management, 13346

economic factors, 135

political factors, 1345

social/image changes, 1356

technology factors, 136

see also Supply

Qualitative forecasting methods, 180, 182

Quality, 231, 2679

cost of, 27981

definitions of, 2679

design quality, 2946

historical perspective, 2705

quality assurance, 271

quality control, 2701

quality management, 2723

recent trends, 2735

quality at the source, 288

quality management approaches, 27586

acceptance sampling, 2769

inspection, 276

process control, 2826

service quality, 28893

resolving problems, 2923

Servqual model, 2902

standards and certification, 2868

total quality management (TQM), 296300

world-class operations, 3447

see also Performance measurement Quality awards programmes, 2934

Quality circles (QCs), 274, 31920

Quality function deployment (QFD), 924, 295

Quantity relative index, 398

Queuing, 2058, 41626

importance of analysing queuing systems, 41617

mathematical analysis of, 41722

arrival process, 41819

calling population, 41718

queue configuration, 41920

queue discipline, 420

service process, 420

Monte Carlo simulation, 4224

number of queues versus number of servers, 207

single-stage versus multiple stage queues, 208

Quicken, 83

Radical performance improvement, 32532

benchmarking, 32732

objectives of, 32930

stages of, 3302

types of, 329

business process re-engineering (BPR), 3257

process mapping, 3267

RAND Corporation, 241

Range chart (R-chart), 285

Rank correlation, 382

Raw materials inventories, 212

Regression analysis, 37682

least squares method, 37882, 3856

obtaining a regression line, 3778

Relationships, in supply chains, 141

Renault, 162, 351

Resource constraints, 84

Resource management, 162, 2034, 308

Japanese companies, 364

manufacturing resource planning (MRP), 2256

see also Capacity; Operations flow management

Resource-based strategies, 456

Resource-to-order, 213

Reverse engineering, 956

Risk management, projects, 244

Rolls-Royce, 268

RS Components, 1301

Sampling plans, 2789

Scheduling, 1937

Gantt chart, 1967

project time management, 244

shift scheduling, 4256

Scientific management, 23, 173

Seasonal variation:

calculation, 3913

seasonally adjusted time series, 3934

Sega, 4

Self-service, 54

Semi-averages technique, 377, 385, 3868

Sequencing, 1946

Sequential sampling plan, 279

Service blueprinting, 41416

Service factories, 112

Service fail-safing, 2923

Service guarantees, 58, 292

Service operations, 1419, 54

analysis of, 41422

Monte Carlo simulation, 4224

queuing, 41622

service blueprinting, 41416

shift scheduling, 4256

capacity management, 18891

demand management, 18890

supply management, 1901

capacity measurement, 1656

challenges for operations management, 2930

customer processing, 209, see also Queuing

definition of, 18

importance of, 1819

management system analysis, 41013

culture and philosophy, 411

market segment, 41112

service concept, 412

service delivery system, 41213

service image, 412

materials flows, 20910

performance measures, 317

service processes, 11112

strategies, 579

Service package, 413

Service quality, 28893

reliability, 286

resolving problems, 2923

Servqual model, 2902

Service recovery, 58, 292, 293

Service shops, 111

Service standards, 288

Service transformation, 9, 10

Servqual model, 2902

Shell, 28

Shift scheduling, 4256

Shortest processing time (SPT), 195

Simulation, 422

Monte Carlo simulation, 4224

Single sampling plan, 278

Single sourcing, 1512

Sky TV, 3

Small-lot production, 230

Smith, Adam, 22

Social Services, 1257

Sony, 3

Sourcing strategy, see Supply

Specialization of labour, 173

Specifications, 2756

Staff, see Employees; Workforce

Stage-gate planning, 24950

Standard time, 173

Standards, 2868, 310

environmental standards, 3602

Statistical approaches, 37294

correlation techniques, 3824

linear functions, 3746

regression analysis, 37682

time series modelling, 38491

Statistical process control (SPC), 282, 286

Strategic operations, 52

Strategic positioning matrix, 1478

Strategic resonance, 557

Strategic Transition model, 1436

Strategy, 3946

elements of, 467

Japanese companies, 3645

market-led versus resource-based strategies, 456

new product development, 90

operations strategy, 1013

origins of, 401

project strategy, 245

responsibility for, 434

service operations strategy, 579

strategy formulation, 413

see also Manufacturing strategy

Subway sandwich shop, 213

Supersonic Transport project, 182

Suppliers:

capacity and capabilities of, 103

capacity management, 1913

capacity measurement, 166

involvement in new product development, 86

meta suppliers, 133

performance measurement, 31718

Supplies, 212

Supply, 28, 1326

as a strategic process, 13740

definition, 132

management in service operations, 1901

matching supply and demand, 18297

planning and control, 18393

scheduling, 1937

position in supply chain, 14

project procurement management, 244

sourcing strategies, 14655

delegated sourcing strategy, 1534

multiple sourcing, 1523

parallel sourcing, 1545

positioning matrix, 1478

single sourcing, 1512

strategic supply wheel, 13943

cost/benefit, 141

organizational structure, 1413

performance measures, 1401

relationship portfolio, 141

skills and competencies, 143

Transition model, 1436

see also Purchasing; Supply chain management

Supply chain management, 278, 131, 1367

evolution from purchasing, 13346

economic factors, 135

political factors, 1345

social/image changes, 1356

technology factors, 136

see also Supply

Swatch watches, 778

Sydney Olympic Games, 2389

Sydney Opera House, 83

Tangibility, 16

Tasks, 173

Taylorism, 23

Technical constraints, 84

Technology, 534, 8990

capacity and, 171

complexity, 243

purchasing and, 136

role in process design, 1234

Technology push, 77

Tequila, 177

Theoretical capacity, 164

Theory of constraints, 2324, 256 3M Corporation, 81, 82

Throughput management, see Operations flow management Time and work measurement, 1723

Time series methods, 180, 1812, 38491

comparison of techniques, 391

forecasting, 3945

method of least squares regression, 3856

method of semi-averages, 3868

moving average, 38890

seasonally adjusted time series, 3934

techniques for finding the trend, 385

time series of relatives, 398

Time-to-market, 745

Toronto Dominion Bank, 292

Total quality control, 273

Total Quality Management (TQM), 25, 136, 274, 296300, 319

Toyota, 3, 345, 867, 88, 2278, 31920, 3245, 3523

Trademark registration, 94

Transcendent quality, 2678

Transformation process, 811

Transition model, 1436

Triumph Motorcycles, 38, 956

User-based quality, 268

Utzon, Jørn, 83

Valmet Corporation, 306

Value analysis, 2956

Value engineering, 2956

Value-based quality, 268

Variable measures, 276

Variables, 3723, 378

Variances, 31011

Variety of products, 1314

Vendor assessment schemes, 140

Very Clever Software Company, 2589

Volkswagen (VW), 71, 86

Volume, 1314

Volvo Cars, 11920

Wagamama, 4089

West Country Farmhouse Cheesemakers’ Cooperative, 2657

Wok-Wok, 40910

Work breakdown structure (WBS), 2489

Work-in-progress (WIP) inventories, 212

Workforce, 1713

capacity measurement, 1723

image problem of work study, 1734

learning curves, 1767

method study, 1745

work measurement, 1756

shift scheduling, 4256

see also Employees; Human resource management

World-class manufacturing (WCM), 136

World-class operations, 55, 33766

becoming world-class, 3534

ethical issues, 35762

environmental responsibility, 35962

operations management and, 3579

human resource management role, 3424

innovation role, 34753

lean production and, 33842

mergers and alliances, 3547

quality role, 3447

X-chart, 2845

Xerox, 328

Yamaha, 41

Yield management, 1878

Yo! Sushi, 410

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