Acceptable quality level (AQL), 277–8
Activity-based accounting (ABC), 312–13
Activity-on-arrow (AOA) diagrams, 253–5
Activity-on-node (AON) diagrams, 255
Aggregate demand, 185
Aggregate planning, 210–11, 246
Agile manufacturing, 52, 53–4, 114, 122–3
versus mass customization, 123
Alliances:
Japanese companies, 365
American System of Manufacture (ASM), 22–3, 24, 271
Andersen Consulting, 3
Apple Computers, 38, 41, 55, 83, 234–5
Appraisal costs, 279
Arithmetic Integrated Moving Average (AriMA) models, 385
Assets, 20
Attributes, 276
Automation, 172
Averages, 181–2, see also Moving average technique
Back-room operations, 170
Batch production, 22–3, 106, 114, 210
Bell Telephone Labs, 271
stages of benchmarking process, 330–2
types of, 329
Bin systems, 218
Bradford Health Trust, 329
Bridge model, 269 British Petroleum (BP), 155–6
British Standards Institute (BSI), 287
Buffer inventory, 212
Business process re-engineering (BPR), 325–7
Café Aroma, 213
actual capacity, 165
design capacity, 164
theoretical capacity, 164
acquiring inputs and distributing outputs, 177, 211
technology, 171
management in service operations, 188–91
management in supply operations, 191–3
over-capacity, 162
strategic capacity planning, 183–8
chase strategies, 187
demand management strategies, 187–8
level capacity strategies, 186
long-range capacity planning, 185
medium-range capacity planning, 185–6
Capacity requirements planning (CRP), 224
Carrefour, 104 Caterpillar, 40 Causal forecasting methods, 180, 182
Chain-based relatives, 398
Chase strategies, 187
Chief Executive Officer (CEO), 54
role in managing operations, 59–62
Co-production, 58
Communications management, in projects, 244
Communications technology, 29
Computer-aided design (CAD), 89–90
Computer-aided manufacturing (CAM), 89
Computer-integrated Manufacturing (CIM), 123
Computers, 29, see also Technology
Concurrent new product development (CNPD), 87–8
Conformity, 275, see also Quality Consumer's risk, 277
Continuous improvement, 298–9, 318–25
Pareto diagrams, 323
Continuous inventory systems, 216–17
economic order quantity (EOQ) systems, 216–17
fixed-order quantity systems, 216
Continuous production, 107–8, 113, 210
Control, 183
Copyright, 94
Core competences, 19
Costs:
cost transparency, 141
labour costs, 311
overhead costs, 310
project cost management, 244
supply strategy, 141
Craft production, 22, 47, 112, 178, 270
Critical Chain Methods, 241
Critical Path Analysis (CPA), 241, 254–5
Critical ratio (CR), 196
Customer attributes, 295
Customer complaints, 293
Customer contact, 16
services as customer processing, 209
Customer satisfaction, 290
Customer-driven quality, 297
Customization, 78
Daewoo, 162
DaimlerChrysler, 162–3, 351, 356
Delegated sourcing strategy, 153–4
Dell Computers, 3, 30, 41, 55, 221
Demand, 179
aggregate demand, 185
time series methods, 180, 181–2
matching supply and demand, 182–97
Dependent variable, 378
Dependent-demand inventory, 221
Design capacity, 164
Design right law, 94
Direct labour costs, 311
Direct Line, 74
Direct workers, 171
Double sampling plan, 278
Du Pont, 241
Earliest due date (EDD), 195
Earliest event time (EET), 253
Early conflict resolution (ECR), 88
Economic order quantity (EOQ) systems, 216–17
Economies of scale, 103, 168–70
Effectiveness measures, 141, 311
Efficiency measures, 140, 141, 310–11
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, 359–62
Ethics, 28
world-class operations, 357–62
environmental responsibility, 359–62
operations management and, 357–9
European Quality Award, 294
External demand, 179
External failure costs, 280, 281
Facilities:
Farmhouse Cheesemakers’ Cooperative, 265–7
Finished-goods inventories, 212
Finite loading, 194
First come, first served (FCFS), 195
First Direct Bank, 67–8, 83, 293
First-mover advantage, 74
Fixed time period systems, 217
Fixed-based relatives, 398
Fixed-order quantity systems, 216
Flexible manufacturing systems (FMS), 110–11, 123
Flexible specialization, 52
Flows, see Operations flow management Ford, 23–4, 86, 176, 350–1
time series methods, 180, 181–2
calculation of seasonal variation, 391–3
seasonally adjusted time series, 393–4
Front-room operations, 170
Futurists, 182
General Motors, 23–4, 39, 123–4
Globalization, 28
Hollola Roll Finishing plant, 306–7
Hospitals, 203
House of quality matrix, 295, 296
Human resource management, 19–20
in world-class operations, 342–4
project human resource management, 244
see also Employees; Workforce Hybrid cells, 117–19
Independent variable, 378
Independent-demand inventory, 221
time series of relatives, 398
notation, 397
Indirect workers, 171
Infinite loading, 194
Information technology, see Computers; Technology
world-class operations, 347–53
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
continuous inventory systems, 216–17
independent- and dependent-demand inventory, 221–2
periodic inventory systems, 217–18
Ishikawa diagram, 322
Japanese production systems, 24–5, 75, 272–3, 319–20, 363–6
alliances, 365
making best use of limited resources, 364
recent trends, 366
Jobs, 173
Just-in-time (JIT) production, 24, 25, 50, 136, 227–32
comparison with manufacturing resources planning (MRP), 231–2
Kaizen, see Continuous improvement Kanban production control, 229–30
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), 195–6
Latest event time (LET), 253, 254
Layout, see Facilities; Processes
Leadership, quality and, 298
world-class operations and, 338–42
Lean supply management, 135
Least slack time, 196
Least squares method, 377–82, 385–6
Lexus, 30
Lincoln Electric, 176
Line operations, 106–7, 113, 210
determining the gradient of a given line, 375–6
Linear regression, 182
Loading, 194
Longest processing time (LPT), 195
Lot tolerance percent defective (LTPD) level, 277–8
Lucent Technologies, 257
Make-to-order, 213
Make-to-stock, 213
Malcolm Baldrige National Quality Award (MBNQA), 294
Manufacturing operations, 14–18
capacity measurement, 165
challenges for operations management, 30–2
inventories, 212
mass customization, 121–2, 123
Manufacturing resource planning (MRP), 225–6
emergence of the strategic importance of operations, 49–51
Manufacturing transformation, 9, 10
Manufacturing-based quality, 268
Market pull, 76
Market-led strategies, 45
Martin's Aeronautics, 273, 340
Mass customization, 52, 114, 121–2
versus agile manufacturing, 123
Mass production, 24, 47–8, 49, 178, 353
management of, 210
see also Inventory
Materials requirements planning systems (MRP), 222–4
Mergers and alliances, world-class operations, 354–7
Meta suppliers, 133
Microsoft, 171
Modular design, 96
Mongolian Wok, 59
Motorola, 74
Moving average technique, 181–2, 385, 388–90
centring a moving average series, 389–90
Mumford's Machine Tools, 198–9
Mystery shopping, 293
National Patent Office, 94
New product development (NPD), 69–72
quality function deployment, 92–4
strategic management of development projects, 90
supplier involvement, 86
developing the product concept, 79–82
developing the product design, 82–5
testing and delivery, 85
success measures, 73
Nokia, 3
Non-profit organizations, capacity management, 166
Oakmead Social Services office, 125–7
Obodex Computers Limited, 300–1
Operating characteristics curve (OC), 278
Operational research techniques, 398–403
manufacturing transformation, 9, 10
strategic importance of, 49–51
see also Manufacturing operations; Service operations
Operations flow management, 205–11
enterprise resource planning (ERP), 226
manufacturing resource planning (MRP), 225–7
materials requirements planning systems (MRP), 222–4
services as customer processing, 209
see also Inventory; Just-in-time production
new scope of operations management, 26
operations as an open system, 26–8
environmental responsibility and, 359–62
role of Chief Executive Officer (CEO), 59–62
Operations managers, 6
new imperatives, 29
responsibilities of, 19–21, 52–3, 100, 203–4, 342
assets, 20
Operations researchers, 120
Optimized Production Technology (OPT), 232–4
Orange, 80
Organizational complexity, 243
Organizational structure, 141–2
Over-capacity, 162
Overhead costs, 310
P-chart, 285
Parkway Theatre, Oakland, 187–8
Patents, 94
objectives, 29
see also Continuous improvement; Radical performance improvement
Performance measurement, 307–18
designing a performance measurement system, 314–16
enlightened performance measures in practice, 316–18
historical perspective, 309–11
effectiveness, 311
activity-based accounting (ABC), 312–13
service operations issues, 317
Periodic inventory systems, 217–18
Phased Delivery Processes (PDP), 249
Pizza Hut, 293
project planning, see Project management
strategic capacity planning, see Capacity
Pre-determined motion time studies (PMTS), 173
Prevention costs, 279
Price relative index, 397
process capability, 286
statistical process control (SPC), 282, 286
Process intensive developments, 78
definition of, 6
manufacturing process design trends, 120–3
mass customization, 121–2, 123
hybrid process/product cell, 117–19
process choice and, 113–14, 119–20
technology role in process design, 123–4
flexible manufacturing systems (FMS), 110–11, 123
project, 104–5, 113, 210, 239–40
Producer's risk, 277
Product moment correlation, 382
Product-based quality, 268
Products:
see also New product development (NPD)
Professional services, 111, 114
Programme Evaluation and Review Technology (PERT), 241
communications management, 244
cost management, 244
designing the project process, 245–7
human resource management, 244
integration management, 244
procurement management, 244
activity-on-arrow (AOA) diagrams, 253–5
activity-on-node (AON) diagrams, 255
critical chain project planning, 256–8
project planning software, 255–6, 260
work breakdown structure (WBS), 248–9
risk management, 244
scope management, 244
time management, 244
Projects, 104–5, 113, 210, 239–40
Public Private Finance (PPF), 134
definition, 132
evolution to supply management, 133–46
economic factors, 135
technology factors, 136
see also Supply
Qualitative forecasting methods, 180, 182
quality assurance, 271
quality at the source, 288
quality management approaches, 275–86
inspection, 276
standards and certification, 286–8
total quality management (TQM), 296–300
see also Performance measurement Quality awards programmes, 293–4
Quality circles (QCs), 274, 319–20
Quality function deployment (QFD), 92–4, 295
Quantity relative index, 398
importance of analysing queuing systems, 416–17
mathematical analysis of, 417–22
queue discipline, 420
service process, 420
number of queues versus number of servers, 207
single-stage versus multiple stage queues, 208
Quicken, 83
Radical performance improvement, 325–32
types of, 329
business process re-engineering (BPR), 325–7
RAND Corporation, 241
Range chart (R-chart), 285
Rank correlation, 382
Raw materials inventories, 212
least squares method, 378–82, 385–6
obtaining a regression line, 377–8
Relationships, in supply chains, 141
Resource constraints, 84
Resource management, 162, 203–4, 308
Japanese companies, 364
manufacturing resource planning (MRP), 225–6
see also Capacity; Operations flow management
Resource-based strategies, 45–6
Resource-to-order, 213
Risk management, projects, 244
Rolls-Royce, 268
project time management, 244
Scientific management, 23, 173
Seasonal variation:
seasonally adjusted time series, 393–4
Sega, 4
Self-service, 54
Semi-averages technique, 377, 385, 386–8
Sequential sampling plan, 279
Service factories, 112
challenges for operations management, 29–30
customer processing, 209, see also Queuing
definition of, 18
management system analysis, 410–13
culture and philosophy, 411
service concept, 412
service delivery system, 412–13
service image, 412
performance measures, 317
Service package, 413
reliability, 286
Service recovery, 58, 292, 293
Service shops, 111
Service standards, 288
Shell, 28
Shortest processing time (SPT), 195
Simulation, 422
Single sampling plan, 278
Sky TV, 3
Small-lot production, 230
Smith, Adam, 22
Sony, 3
Sourcing strategy, see Supply
Specialization of labour, 173
Staff, see Employees; Workforce
Standard time, 173
environmental standards, 360–2
Statistical approaches, 372–94
Statistical process control (SPC), 282, 286
Strategic operations, 52
Strategic positioning matrix, 147–8
Strategic Transition model, 143–6
market-led versus resource-based strategies, 45–6
new product development, 90
project strategy, 245
service operations strategy, 57–9
see also Manufacturing strategy
Subway sandwich shop, 213
Supersonic Transport project, 182
capacity and capabilities of, 103
capacity measurement, 166
involvement in new product development, 86
meta suppliers, 133
performance measurement, 317–18
Supplies, 212
as a strategic process, 137–40
definition, 132
management in service operations, 190–1
matching supply and demand, 182–97
position in supply chain, 14
project procurement management, 244
delegated sourcing strategy, 153–4
strategic supply wheel, 139–43
cost/benefit, 141
organizational structure, 141–3
relationship portfolio, 141
skills and competencies, 143
see also Purchasing; Supply chain management
Supply chain management, 27–8, 131, 136–7
evolution from purchasing, 133–46
economic factors, 135
technology factors, 136
see also Supply
Sydney Opera House, 83
Tangibility, 16
Tasks, 173
Taylorism, 23
Technical constraints, 84
capacity and, 171
complexity, 243
purchasing and, 136
Technology push, 77
Tequila, 177
Theoretical capacity, 164
Theory of constraints, 232–4, 256 3M Corporation, 81, 82
Throughput management, see Operations flow management Time and work measurement, 172–3
Time series methods, 180, 181–2, 384–91
comparison of techniques, 391
method of least squares regression, 385–6
method of semi-averages, 386–8
seasonally adjusted time series, 393–4
techniques for finding the trend, 385
time series of relatives, 398
Toronto Dominion Bank, 292
Total quality control, 273
Total Quality Management (TQM), 25, 136, 274, 296–300, 319
Toyota, 3, 34–5, 86–7, 88, 227–8, 319–20, 324–5, 352–3
Trademark registration, 94
User-based quality, 268
Utzon, Jørn, 83
Valmet Corporation, 306
Value-based quality, 268
Variable measures, 276
Vendor assessment schemes, 140
Very Clever Software Company, 258–9
West Country Farmhouse Cheesemakers’ Cooperative, 265–7
Work breakdown structure (WBS), 248–9
Work-in-progress (WIP) inventories, 212
image problem of work study, 173–4
see also Employees; Human resource management
World-class manufacturing (WCM), 136
World-class operations, 55, 337–66
environmental responsibility, 359–62
operations management and, 357–9
human resource management role, 342–4
Xerox, 328
Yamaha, 41
Yo! Sushi, 410
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