Nigel S., Chambers S., Johnson R. Operations Management
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Make-to-order: operations that produce products only when
they are demanded by specific customers.
Make-to-stock: operations that produce products prior to
their being demanded by specific customers.
Management information systems (MIS): information sys-
tems that manipulate information so that it can be used
in managing an organization.
Manufacturing resource planning (MRP II): an expansion
of materials requirement planning to include greater
integration with information in other parts of the organ-
ization and often greater sophistication in scheduling
calculations.
Market requirements: the performance objectives that
reflect the market position of an operation’s products or
services, also a perspective on operations strategy.
Mass customization: the ability to produce products or
services in high volume, yet vary their specification to the
needs of individual customers or types of customer.
Mass processes: processes that produce goods in high
volume and relatively low variety.
Mass services: service processes that have a high number
of transactions, often involving limited customization,
for example mass transportation services, call centres, etc.
Master production schedule (MPS): the important schedule
that forms the main input to material requirements plan-
ning, it contains a statement of the volume and timing
of the end products to be made.
Materials requirement planning (MRP): a set of calculations
embedded in a system that helps operations make volume
and timing calculations for planning and control purposes.
Mean time between failures (MTBF): operating time divided
by the number of failures; the reciprocal of failure rate.
Merchandising: a term used to describe a role in retail
operations management that often combines inventory
management and purchasing with organizing the layout
of the shop floor.
Method study: the analytical study of methods of doing
jobs with the aim of finding the ‘best’ or an improved job
method.
Micro-detailed process map: a process map that shows
each single motion or small element of an activity.
Milestones: term used in project management to denote
important events at which specific reviews of time, cost
and quality can be made.
Mix flexibility: the operation’s ability to produce a wide
range of products and services.
Modular design: the use of standardized sub-components
of a product or service that can be put together in dif-
ferent ways to create a high degree of variety.
MRP netting process: the process of calculating net
requirements using the master production schedule and
the bills of material.
Multi-skilling: increasing the range of skills of indi-
viduals in order to increase motivation and/or improve
flexibility.
Multi-sourcing: the practice of obtaining the same type
of product, component, or service from more than one
supplier in order to maintain market bargaining power
or continuity of supply.
Network analysis: overall term for the use of network-based
techniques for the analysis and management of projects,
for example, includes critical path method (CPM) and
programme evaluation and review technique (PERT).
Open sourcing: products or services developed by an open
community, including users.
Operational efficiency: helps improve supply chain
performance.
Operations function: the arrangement of resources that
are devoted to the production and delivery of products
and services.
Operations management: the activities, decisions and re-
sponsibilities of managing the production and delivery
of products and services.
Operations managers: the staff of the organization who
have particular responsibility for managing some or all of
the resources which compose the operation’s function.
Operations resource capabilities: the inherent ability of
operations processes and resources; also a perspective
on operations strategy.
Operations strategy: the overall direction and contribution
of the operation’s function with the business; the way
in which market requirements and operations resource
capabilities are reconciled within the operation.
Optimized production technology (OPT): software and
concept originated by Eliyahu Goldratt to exploit his
theory of constraints (TOC).
Order fulfilment: all the activities involved in supplying a
customer’s order, often used in e-retailing but now also
used in other types of operation.
Order-winners: the competitive factors that directly and
significantly contribute to winning business.
Outline process map: see ‘High-level process mapping’.
Outsourcing: the practice of contracting out to a supplier
work previously done within the operation.
Overall equipment effectiveness (OEE): a method of judg-
ing the effectiveness of how operations equipment is used.
Pareto law: a general law found to operate in many situ-
ations that indicates that 20 per cent of something causes
80 per cent of something else, often used in inventory
management (20 per cent of products produce 80 per cent
of sales value) and improvement activities (20 per cent
of types of problems produce 80 per cent of disruption).
Glossary
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Partnership: a type of relationship in supply chains that
encourages relatively enduring cooperative agreements
for the joint accomplishment of business goals.
Parts commonality: see ‘Commonality’.
Parts family coding: the use of multi-digit codes to indicate
the relative similarity between different parts, often used
to determine the process route that a part takes through
a manufacturing operation.
Passive interaction technology: customer-processing tech-
nology over which a customer has no, or very limited,
control, for example, cinemas and moving walkways.
PDCA cycle: stands for Plan, Do, Check, Act cycle, perhaps
the best known of all improvement cycle models.
P
:D ratio: a ratio that contrasts the total length of time
customers have to wait between asking for a product
or service and receiving it (D) and the total throughput
time to produce the product or service (P).
Performance measurement: the activity of measuring
and assessing the various aspects of a process or whole
operation’s performance.
Performance objectives: the generic set of performance
indicators that can be used to set the objectives or judge
the performance of any type of operation, although there
are alternative lists proposed by different authorities,
the five performance objectives as used in this book are
quality, speed, dependability, flexibility and cost.
Performance standards: a defined level of performance
against which an operation’s actual performance is com-
pared; performance standard can be based on historical
performance, some arbitrary target performance, the
performance of competitors, etc.
Periodic review: an approach to making inventory decisions
that defines points in time for examining inventory
levels and then makes decisions accordingly, as opposed
to continuous review.
Perpetual inventory principle: a principle used in inventory
control that inventory records should be automatically
updated every time items are received or taken out of
stock.
Physical distribution management: organizing the integrated
movement and storage of materials.
Pipeline inventory: the inventory that exists because material
cannot be transported instantaneously.
Planning: the formalization of what is intended to happen
at some time in the future.
Plant-within-a-plant: a similar term to a cell layout but some-
times used to indicate a larger clustering of resources, see
also ‘Shop-within-a-shop’.
Poka-yoke: Japanese term for fail-safeing.
Polar diagram: a diagram that uses axes, all of which
originate from the same central point, to represent dif-
ferent aspects of operations performance.
Predetermined motion–time systems (PMTS): a work
measurement technique where standard elemental times
obtained from published tables are used to construct a
time estimate for a whole job.
Preliminary design: the initial design of a product or service
that sets out its main components and functions, but
does not include many specific details.
Prevention costs: those costs that are incurred in trying
to prevent quality problems and errors occurring, an
element within quality-related costs.
Preventive maintenance: an approach to maintenance man-
agement that performs work on machines or facilities at
regular intervals in an attempt to prevent them breaking
down.
Principles of motion economy: a checklist used to develop
new methods in work study that is intended to eliminate
elements of the job, combine elements together, simplify
the activity or change the sequence of events so as to
improve efficiency.
Processes: an arrangement of resources that produces
some mixture of products and services.
Process capability: an arithmetic measure of the accept-
ability of the variation of a process.
Process design: the overall configuration of a process that
determines the sequence of activities and the flow of
transformed resources between them.
Process layout: locating similar transforming resources
together so that different products or services with dif-
ferent processing needs will take different routes through
the operation.
Process mapping: describing processes in terms of how
the activities within the process relate to each other (may
also be called ‘process blueprinting’ or ‘process analysis’).
Process mapping symbols: the symbols that are used to
classify different types of activity; they usually derive either
from scientific management or information-systems
flow-charting.
Process of strategy: the way in which strategies are
formulated.
Process outputs: the mixture of goods and services pro-
duced by processes.
Process technology: the machines and devices that create
and/or deliver goods and services.
Process types: terms that are used to describe a particular
general approach to managing processes; in manufac-
turing these are generally held to be project, jobbing,
batch, mass and continuous processes; in services they
are held to be professional services, service shops and
mass services.
Production flow analysis (PFA): a technique that examines
product requirements and process grouping simultane-
ously to allocate tasks and machines to cells in cell layout.
Glossary
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Productivity: the ration of what is produced by an opera-
tion or process to what is required to produce it, that
is, the output from the operation divided by the input to
the operation.
Product layout: locating transforming resources in a
sequence defined by the processing needs of a product
or service.
Product–process matrix: a model derived by Hayes and
Wheelwright that demonstrates that natural fit between
volume and variety of products and services produced
by an operation on one hand, and the process type used
to produce products and services on the other.
Product /service flexibility: the operation’s ability to intro-
duce new or modified products and services.
Product/service life cycle: a generalized model of the
behaviour of both customers and competitors during
the life of a product or service:; it is generally held to
have four stages: introduction, growth, maturity and
decline.
Product structure: diagram that shows the constituent
component parts of a product or service package and
the order in which the component parts are brought
together (often called components structure).
Product technology: the embedded technology within a
product or service, as distinct from process technology.
Professional services: service processes that are devoted
to producing knowledge-based or advice-based services,
usually involving high customer contact and high cus-
tomization, examples include management consultants,
lawyers, architects, etc.
Programme: as used in project management, it is generally
taken to mean an ongoing process of change comprising
individual projects.
Programme evaluation and review technique (PERT): a
method of network planning that uses probabilistic time
estimates.
Project: a set of activities with a defined start point and
a defined end state which pursue a defined goal using a
defined set of resources.
Project manager: competent project managers are vital for
project success.
Project processes: processes that deal with discrete, usu-
ally highly customized, products.
Prototyping: an initial design of a product or service devised
with the aim of further evaluating a design option.
Pull control: a term used in planning and control to indi-
cate that a workstation requests work from the previous
station only when it is required, one of the fundamental
principles of just-in-time planning and control.
Purchasing: the organizational function, often part of the
operations function, that forms contracts with suppliers
to buy in materials and services.
Push control: a term used in planning and control to
indicate that work is being sent forward to workstations
as soon as it is finished on the previous workstation.
Qualified worker: term used in work study to denote a
person who is accepted as having the necessary physical
attributes, intelligence, skill, education and knowledge
to perform the task.
Qualifiers: the competitive factors that have a minimum
level of performance (the qualifying level) below which
customers are unlikely to consider an operations per-
formance satisfactory.
Quality: there are many different approaches to defining
this. We define it as consistent conformance to customers’
expectations.
Quality characteristics: the various elements within the
concept of quality, such as functionality, appearance,
reliability, durability, recovery, etc.
Quality function deployment (QFD): a technique used to
ensure that the eventual design of a product or service
actually meets the needs of its customers (sometimes
called ‘house of quality’).
Quality loss function (QLF): a mathematical function
devised by Genichi Taguchi that includes all the costs of
deviating from a target performance.
Quality-related costs: an attempt to capture the broad cost
categories that are affected by, or affect, quality, usually
categorized as prevention costs, appraisal costs, internal
failure costs and external failure costs.
Quality sampling: the practice of inspecting only a sample
of products or services produced rather than every
single one.
Quality variables: measures of quality that can be measured
on a continuously variable scale, for example, length,
weight, etc.
Queuing theory: a mathematical approach that models
random arrival and processing activities in order to
predict the behaviour of queuing systems (also called
‘waiting line theory’).
Rating: a work study technique that attempts to assess a
worker’s rate of working relative to the observer’s con-
cept of standard performance – controversial and now
accepted as being an ambiguous process.
Received variety: the variety that occurs because the pro-
cess is not designed to prevent it.
Recovery: the activity (usually a predetermined process)
of minimizing the effects of an operation’s failure.
Redundancy: the extent to which a process, product or
service has systems or components that are used only
when other systems or components fail.
Relationship chart: a diagram used in layout to summarize
the relative desirability of facilities to be close to each other.
Glossary
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Reliability: when applied to operations performance, it can
be used interchangeably with ‘dependability’, when used
as a measure of failure it means the ability of a system,
product or service to perform as expected over time, this
is usually measured in terms of the probability of it
performing as expected over time.
Reliability-centred maintenance: an approach to main-
tenance management that uses different types of main-
tenance for different parts of a process depending on their
pattern of failure.
Remainder cell: the cell that has to cope with all the
products that do not conveniently fit into other cells.
Re-order level: the level of inventory at which more items are
ordered, usually calculated to ensure that inventory does
not run out before the next batch of inventory arrives.
Re-order point: the point in time at which more items are
ordered, usually calculated to ensure that inventory does
not run out before the next batch of inventory arrives.
Repeatability: the extent to which an activity does not vary.
Repetitive strain injury (RSI): damage to the body because
of repetition of activities.
Research and development (R&D): the function in the
organization that develops new knowledge and ideas
and operationalizes the ideas to form the underlying
knowledge on which product, service and process design
are based.
Resource-based view (RBV): the perspective on strategy
that stresses the importance of capabilities (sometimes
known as core competences) in determining sustainable
competitive advantage.
Resource-to-order: operations that buy-in resources
and produce only when they are demanded by specific
customers.
Reverse engineering: the taking apart or deconstruction
of a product or service in order to understand how it has
been produced (often by a competing organization).
Robots: automatic manipulators of transformed resources
whose movement can be programmed and reprogrammed.
Rostering: a term used in planning and control, usually to
indicate staff scheduling, the allocation of working times
to individuals so as to adjust the capacity of an operation.
Run-to-breakdown maintenance: an approach to main-
tenance management that only repairs a machine or
facility when it breaks down.
SAP: a German company which is the market leader in
supplying ERP software, systems and training.
Scheduling: a term used in planning and control to indi-
cate the detailed timetable of what work should be done,
when it should be done and where it should be done.
Scientific management: a school of management theory
dating from the early twentieth century; more analytical
and systematic than ‘scientific’ as such, sometimes
referred to (pejoratively) as Taylorism, after Frederick
Taylor who was influential in founding its principles.
Second-tier: the description applied to suppliers and
customers who are separated from the operation only by
first-tier suppliers and customers.
Sequencing: the activity within planning and control that
decides on the order in which work is to be performed.
Service-level agreements (SLAs): formal definitions of the
dimensions and levels of service that should be provided
by one process or operation to another.
Service shops: service processes that are positioned
between professional services and mass services, usually
with medium levels of volume and customization.
Set-up reduction: the process of reducing the time taken
to changeover a process from one activity to the next;
also called ‘single-minute exchange of dies’ (SMED) after
its origins in the metal pressing industry.
Shop-within-a-shop: an operations layout that groups
facilities that have a common purpose together; the term
was originally used in retail operations but is now some-
times used in other industries, very similar to the idea of
a cell layout.
Short fat processes: processes designed with relatively few
sequential stages, each of which performs a relatively large
part of the total task, the opposite of long thin processes.
Simulation: the use of a model of a process, product or
service to explore its characteristics before the process,
product or service is created.
Simultaneous development: overlapping these stages in the
design process so that one stage in the design activity can
start before the preceding stage is finished, the intention
being to shorten time to market and save design cost
(also called ‘simultaneous engineering’ or ‘concurrent
engineering’).
Single-minute exchange of dies (SMED): alternative term
for set-up reduction.
Single-sourcing: the practice of obtaining all of one type
of input product, component, or service from a single
supplier, as opposed to multi-sourcing.
Six Sigma: an approach to improvement and quality
management that originated in the Motorola Company
but which was widely popularized by its adoption in
the GE Company in America. Although based on tradi-
tional statistical process control, it is now a far broader
‘philosophy of improvement’ that recommends a par-
ticular approach to measuring, improving and managing
quality and operations performance generally.
Skunkworks: a small, focused development team who are
taken out of their normal working environment.
Social responsibility: the incorporation of the operation’s
impact on its stakeholders into operations management
decisions.
Glossary
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Spatially variable costs: the costs that are significant in the
location decision that vary with geographical position.
Speed: the elapsed time between customers’ requesting
products or services and their receiving them.
Stakeholders: the people and groups of people who have
an interest in the operation and who may be influenced
by, or influence, the operation’s activities.
Standardization: the degree to which processes, products
or services are prevented from varying over time.
Standard performance: term used in work measurement
to indicate the rate of output that qualified workers will
achieve without over-exertion as an average over the
working day provided they are motivated to apply them-
selves, now generally accepted as a very vague concept.
Standard time: a term used in work measurement indicat-
ing the time taken to do a job and including allowances
for recovery and relaxation.
Statistical process control (SPC): a technique that
monitors processes as they produce products or services
and attempts to distinguish between normal or natural
variation in process performance and unusual or
‘assignable’ causes of variation.
Stock: alternative term for inventory.
Strategic decisions: those which are widespread in their
effect, define the position of the organization relative to
its environment and move the organization closer to its
long-term goals.
Structural decisions: the strategic decisions which deter-
mine the operation’s physical shape and configuration,
such as those concerned with buildings, capacity, techno-
logy, etc.
Subcontracting: when used in medium-term capacity
management, it indicates the temporary use of other
operations to perform some tasks, or even produce whole
products or services, during times of high demand.
Supplier quality assurance (SQA): the activity of monitor-
ing and improving levels of quality of the products
and services delivered by suppliers, also used to assess
supply capability when choosing between alternative
suppliers.
Supply chain: a linkage or strand of operations that provides
goods and services through to end-customers; within a
supply network several supply chains will cross through
an individual operation.
Supply chain dynamics: the study of the behaviour of
supply chains, especially the level of activity and inven-
tory levels at different points in the chain; its best known
finding is the bull-whip effect.
Supply chain risk: a study of the vulnerability of supply
chains to disruption.
Supply network: the network of supplier and customer
operations that have relationships with an operation.
Supply side: the chains of suppliers, suppliers’ suppliers, etc.
that provide parts, information or services to an operation.
Support functions: the functions that facilitate the work-
ing of the core functions, for example, accounting and
finance, human resources, etc.
Synthesis from elemental data: work measurement
technique for building up a time from previously timed
elements.
Systemization: the extent to which standard procedures
are made explicit.
Taguchi method: a design technique that uses design com-
binations to test the robustness of a design.
Tangibility: the main characteristic that distinguishes
products (usually tangible) from services (usually
intangible).
Teleworking: the ability to work from home using tele-
communications and/or computer technology.
Theory of constraints (TOC): philosophy of operations man-
agement that focused attention on capacity constraints
or bottleneck parts of an operation; uses software known
as ‘optimized production technology’ (OPT).
Throughput time: the time for a unit to move through a
process.
Time study: a term used in work measurement to indicate
the process of timing (usually with a stopwatch) and
rating jobs; it involves observing times, adjusting or
normalizing each observed time (rating) and averaging
the adjusted times.
Time to market (TTM): the elapsed time taken for the
whole design activity, from concept through to market
introduction.
Top-down: the influence of the corporate or business
strategy on operations decisions.
Total productive maintenance (TPM): an approach to
maintenance management that adopts a similar holistic
approach to total quality management (TQM).
Total quality management (TQM): a holistic approach to
the management of quality that emphasizes the role of
all parts of an organization and all people within an
organization to influence and improve quality; heavily
influenced by various quality ‘gurus’, it reached its peak
of popularity in the 1980s and 1990s.
Total supply network: all the suppliers and customers
who are involved in supply chains that ‘pass through’ an
operation.
Trade-off theory: the idea that the improvement in one
aspect of operations performance comes at the expense
of deterioration in another aspect of performance, now
substantially modified to include the possibility that in
the long term different aspects of operations performance
can be improved simultaneously.
Glossary
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Transformation process model: model that describes
operations in terms of their input resources, transform-
ing processes and outputs of goods and services.
Transformed resources: the resources that are treated,
transformed or converted in a process, usually a mixture
of materials, information and customers.
Transforming resources: the resources that act upon the
transformed resources, usually classified as facilities (the
buildings, equipment and plant of an operation) and
staff (the people who operate, maintain and manage the
operation).
Two-handed process chart: a type of micro-detailed pro-
cess map that shows the motion of each hand used in an
activity on a common timescale.
Upstream: the other operations in a supply chain that are
towards the supply side of the operation.
Usage value: a term used in inventory control to indicate
the quantity of items used or sold multiplied by their
value or price.
Utilization: the ratio of the actual output from a process or
facility to its design capacity.
Valuable operating time: the amount of time at a piece of
equipment or work centre that is available for produc-
tive working after stoppages and inefficiencies have been
accounted for.
Value engineering: an approach to cost reduction in pro-
duct design that examines the purpose of a product or
service, its basic functions and its secondary functions.
Variation: the degree to which the rate or level of output
varies from a process over time, a key characteristic in
determining process behaviour.
Variety: the range of different products and services pro-
duced by a process, a key characteristic that determines
process behaviour.
Vertical integration: the extent to which an operation
chooses to own the network of processes that produce a
product or service, the term is often associated with the
‘do or buy’ decision.
Virtual operation: an operation that performs few, if
any, value-adding activities itself, rather it organizes a
network of supplier operations, seen as the ultimate in
outsourcing.
Virtual prototype: a computer-based model of a product,
process or service that can be tested for its character-
istics before the actual process, product or service is
produced.
Visibility: the amount of value-added activity that takes place
in the presence (in reality or virtually) of the customer,
also called ‘customer contact’.
Volume: the level or rate of output from a process, a key
characteristic that determines process behaviour.
Volume flexibility: the operation’s ability to change its level
of output or activity to produce different quantities or
volumes of products and services over time.
Waiting line theory: an alternative term for queuing theory.
Web-integrated ERP: enterprise resource planning that
is extended to include the ERP-type systems of other
organizations such as customers and suppliers.
Weighted-score method of location: a technique for com-
paring the attractiveness of alternative locations that
allocates a score to the factors that are significant in the
decision and weights each score by the significance of
the factor.
Wide-area networks (WANs): similar to local-area networks
(LANs) but with a greater reach, usually involving elements
outside a single operation.
Work breakdown structure: the definition of, and the
relationship between, the individual work packages in
project management, each work package can be allocated
its own objectives that fit in with the overall work break-
down structure.
Work content: the total amount of work required to pro-
duce a unit of output, usually measured in standard times.
Workflow: process of design of information-based processes.
Work-in-progess (WIP): the number of units within a
process waiting to be processed further (also called
‘work-in-process’).
Work measurement: a branch of work study that is con-
cerned with measuring the time that should be taken for
performing jobs.
Work study: the term generally used to encompass method
study and work measurement, derives from the scientific
management school.
World Wide Web (WWW): the protocols and standards
that are used on the internet for formatting, retrieving,
storing and displaying information.
Yield management: a collection of methods that can be
used to ensure that an operation (usually with a fixed
capacity) maximizes its potential to generate profit.
Zero defect: the idea that quality management should strive
for perfection as its ultimate objective even though in
practice this will never be reached.
Glossary
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Page numbers in bold refer to entries in the Glossary
airport security 583
Aldi 48, 49
alignment 604–5
Alkatel 151
allowances, work measurement 263,
658
alternative capacity plans 301, 309–17
alternative products and services 315
alternative suppliers, selection 379–80
alternative workplaces (AW) 249
Amazon 74, 119
ambulance services 43
Amin, V. 221
analysis and control systems, inventory
362–7
analytical estimating 254
analytical queuing models 333–9
Andon 658
annual hours 249, 313–14, 315, 658
anthropometric data 244–5, 658
anticipation inventories 311, 344, 658
AoA (activity on arrow) networks
479–80
AoN (activity on node) networks
479–81
appearance 502, 503, 504
Apple 51, 145
appraisal costs 511, 512–13, 658
appropriate zones 614
AQL (acceptable quality level) 512,
534–5
Armstrong, J.S. 176
arrival rates 324, 333–5
‘Art Attack!’ 125
assembly line surgery 181
assessments
failure causes 573–85
risks see risks
assignable causes of variation 524–5
AstraZeneca 394
ATM (automatic teller machines) 219,
221
ATP (available to promise) 423–4
attributes of quality see quality
authority 247
authorized education partners 410
Auto-ID 215–17, 658
automated guided vehicles (AGV) 210,
211, 658
automated technology 222
automatic identification technologies
(Auto-ID) 215–17, 658
automatic teller machines (ATM) 219,
221
automation 221–2, 242
automobile plants 41, 42–3, 44, 46, 49,
90, 93, 147–8, 379
autonomy 247, 434
availability 578, 582
available to promise (ATP) 423–4
AW (alternative workplaces) 249
awards, improvement 622–4
B2B (business to business) 381–2,
386–8
B2C (business to consumer) 385, 386
back-loading 385
back-office environment 22, 658
back-scheduling 425–6
backward passes 480
backward scheduling 285–6, 658
backward vertical integration 143
balance of vertical integration 144
balanced scorecard 608–9
balancing losses 197, 198, 200, 658
balancing techniques 197–200
balancing work time allocation 197
bandwagon effect 171
Bank of America 143
banking 70, 213, 214, 219, 221, 649
barcodes 215, 219, 658
basic functions 128
basic layouts 180–9
basic time 262, 658
basic working practices 434
batch processes 93, 96, 180, 658
bath-tub curves 580–1, 658
baulking 323, 324
Bayer 394
BBC news 47
behaviour
changes 550
constituent 618
supply chains 391–4
unethical 646
behavioural job design 245–51, 658
benchmarking 394, 395, 396, 603,
611–12, 658
Benetton 402–4
Bessant, J. 617
best practice 394, 395–6, 612
bills of materials (BOM) 408, 412,
424–6, 658
blood donors 341
Index
5 Ss 446
80/20 rule see Pareto law
Aarhus Region Customs and Tax 602
ABC inventory control 362–5, 658
absolute targets 547, 610
Accenture 236
acceptability, designs 120–1, 128, 660
acceptable quality level (AQL) 512,
534–5
acceptance sampling 507, 533–5, 658
Access HK 473
accessibility 179
accident investigations 578
accounting and finance functions 5–6,
18
Ace Tyre Company 275
Acme Whistles 8–9, 13–14
actions
on failures 595
quantifying 606
active interaction technology 219, 658
activities 23–5, 658
design 117
joint coordinator of 390
network planning 475–81
operations as 18
planning and control 277–92
projects 468
supply chain management 377–85
see also value-adding activities
activity on arrow (AoA) networks
479–80
activity mix 304–5
activity on node (AoN) networks
479–81
activity sampling 254
administrative experts 236
adventure playgrounds 135–6
aerospace industry 113–14, 119, 124
aggregate demand 300, 301, 303
aggregated planning and control 216,
300, 658
agility 47–8, 377, 398, 400, 607, 658
agriculture 41–2, 328–30
AGV see automated guided vehicles
Air France 273
air traffic control 294–5, 447–8
Airbus 113–14, 124
aircraft 113–14, 124, 207, 443
airlines 61, 219, 273, 316, 387–8, 443,
575
Z03_SLAC0460_06_SE_IDX.QXD 10/20/09 10:00 Page 670
‘blue sky’ research projects 459
blueprinting 658
see also processes: mapping
BMW 119, 269
Body Shop 646
Boeing 113, 114, 207, 443
Bolton Hospitals NHS Trust 440
BOM see bills of materials
Bosch 381
bottlenecks 290–1, 449–50, 658
bottom-up 65, 66–7, 658
Boys and Boden 453–5
BP 143, 394
BPO (business process outsourcing)
143–6, 159, 659
BPR see business process
re-engineering
brains, organizations as 239
brainstorming 627, 658
brands 145
Branton Legal Services 71
break-even analysis 159–60, 658
breakthrough improvement 543, 659
brewery industry 541
bridge engineering 458
British Airports Authority 33, 583
British Airways 33–4, 309
Britvic 298
broad responsibilities of operations
management 659
Brundtland Report 634
buffer inventories see inventories
building materials merchants 443–5
bullwhip effect 392–4, 659
Burger King 87
burst activities 480
bus companies 41, 42, 44, 45–6, 49
business
continuity 595–6
environments, projects 463
level analyses 15
partners 410
pressures 10–11
processes 18–19, 596
strategies 62–3, 65–6, 659
Business Excellence Model 623–4
business process modelling 394–5
business process outsourcing (BPO)
143–6, 159, 659
business process re-engineering (BPR)
18, 104, 545, 550–3, 557–8, 659
business to business (B2B) 381–2,
386–8
business to consumer (B2C) 385, 386
c-commerce 409
C2B (consumer to business) 386
C2C (customer to customer) 386
CAD see computer-aided design
Cadbury 186, 572
CADCENTRE 475
Caffyn, S. 617
call centres 95
call grading systems, police 280–1
calling population 323
campus-area networks (CAN) 212
capabilities 65, 73
envelope of 210
improvement 617–19
process 522–6, 532–3, 555, 665
resources 65, 73–5
capacity
activity mix 304–5
adjusting 313–14
balancing demand and 156–7, 324–5
changes 157–9, 321–2
checks, MRP 428
constraints 299, 449–51
control see planning and control
below
design 305–7, 660
effective 305–7, 325–9, 661
expansion 159–60
lagging 157–8, 659
leading 157–8, 659
location of 146–54
management 299–301
long-term 142, 155–60, 299, 663
medium-term 169
short-term 169
meaning 299, 659
measuring 304–9
optimum level 155–6
planning and control 297–8
aggregate demand and 300
alternative capacity plans 301,
309–17
cumulative representations 317–22
demand fluctuations 301–4
dynamics of 327
environmental issues 639
expert systems applications 216
long-term 169, 299
measuring demand and capacity
301–9
medium-term strategy 299–300
mixed plans 315–16
objectives 300–1
as queuing problem 322–7
short-term 299–300
social issues 642
steps of 301
yield management 316–17
scale of 156
smoothing with inventory 158–9
under-utilization 312
utilization see utilization
capacity requirements plans (CRP) 428
capital employed 39
capital intensity 222
capital requirements 201
car factories see automobile plants
cash flow 225–6
causal modelling 170, 171, 174–5
cause–effect diagrams 561, 659
CBM (condition-based maintenance)
589, 659
cell layouts see layouts
Central Evaluation Unit processing
unit (CEUPU) 109–10
centre-of-gravity method 152, 153–4,
659
CEUPU (Central Evaluation Unit
processing unit) 109–10
change
agents 236
control copes with 270
management, ERP 416
–17
channel alignment 398
chase demand plans 309, 312–13, 316,
321–2, 659
chase master production schedule 423
Chatsworth 135–6
Chernobyl 597–9
Chew, Bruce 228
child labour 384, 643
children 125, 135–6, 168–70, 473
children’s television 125
chocolate factories 186
Christopher, Martin 400
CI see continuous improvement
CIM (computer-integrated
manufacturing) 211, 659
Cisco 151
clarity of flows 179
client–server networks 212
closed-loop MRP 428
cluster analysis 194, 659
CNC see computer numerically
controlled machines
coffee shops 650
coherence 76–7
cold standby 587
collaborative commerce 409
combinatorial complexity 190, 194, 659
commitment, jobs 245–51
commonality 124, 659
communicated image gap 501
communications
business continuity 596
channels, projects 461
plans, ERP 416
risk management 574
community factors 150, 659
Compal 145
Compaq 145
competition 72, 382
competitive advantage 9, 73, 130
competitive analyses 396
competitive benchmarking 611
competitive factors 68–70, 76, 613, 659
competitiveness, understanding 141
competitors 72, 76, 118, 142–3, 612–13
complaint analyses 578
complementary technology partners
410
Index
671
Z03_SLAC0460_06_SE_IDX.QXD 10/20/09 10:00 Page 671
complementers 142–3
complexity 124–5, 221, 285, 459–61
components 123
inventories 345
reliability 581
structure see products: structure
comprehensiveness 76
compressed working 250–1
computer-aided design (CAD) 117,
129, 211, 659
computer-aided functional layout
design 194
computer-assisted project management
486–7
computer-integrated manufacturing
(CIM) 211, 659
computer numerically controlled
(CNC) machines 209, 210, 659
Computerized Relative Allocation of
Facilities Technique (CRAFT)
194, 660
computers
industry 139, 145, 151
security 577–8
see also information technology
Concept Design Services 27–9
concept generation 117, 118–20, 659
concept screening 117, 120–3
concept–specification gap 501
concurrent engineering 131, 667
condition-based maintenance (CBM)
589, 659
configuring supply networks 142–6
conflict resolution 132
conformance to specification 498,
502–8
connectivity of technology 222, 223,
577–8
consignment stock 347
constituent behaviours 618
constituent component parts 123
constraints
capacity 299, 449–51
resources 73, 470, 483–4
schedules, identifying 470–1
sequencing 280
theory of TOC 290, 668
time 471
construction companies 448
consultants 94, 416
consumer to business (C2B) 386
contact 390, 502, 504
containment of failures 593
content of strategies 62, 659
continuous flow manufacture see
just-in-time
continuous improvement (CI) 433,
435, 543–4, 618, 659
continuous processes 93–4, 96, 180,
574, 659
continuous reviews, inventories 360–2,
660
control
capacity see capacity: planning and
control
charts 520–1, 524, 527–32, 660
difficulties 291–2
inventories see inventories: planning
and control
limits 524, 527–32, 660
meaning of 270, 660
mechanisms, projects 461
operations 289–90
planning and, difference between
270–1
process 526, 532–3, 555
projects see projects: planning and
control
quality (QC) 505–7, 508
supply chains see supply chains:
management
visual 430
see also planning and control
controlled flows of materials and
customers 201
co-opetition 142–3
coordination
activities 390
inventories 432
Corbett, M. 415–16
core competences 73
core functions 4–6, 660
core product/services 116
corporate perspective, risk
management 574
corporate social responsibility (CSR)
24, 37, 631–2
definitions 633–4
economic dimension 634, 636–7,
643–4
environmental dimension 634–5,
638–41
global sourcing 383–4
influences on operations
management 637–45
necessary cost of doing business 645
operations managers’ analyses of
issues 646–8
as risk management 646–8
social dimension 634, 636, 641–3
stakeholder dimension 634, 637, 644
sustainability dimension see
environmental dimension above
trade-offs and 646–7
voluntary dimension 634, 637,
644
–5
corporate strategies 65–6, 660
correspondence 77
cost-to-function analysis 660
costs
appraisal 511, 512–13, 658
capacity change 321–2
corporate social responsibility 645
dependability and 45, 52
efficiency 55
empowerment 248
ERP projects, planning and
management 416
failure 511
flexibility and 20, 47, 52, 53, 96
global sourcing and 383
in-house supply 144
input 643
of inventories see inventories
labour 50, 147, 149, 223
layouts and 190–1
materials 48, 378
objectives 40, 48–54, 69, 89, 101,
282, 300
output 643–4
outsourced supply 144
performance measures 607–8
prevention 511, 512–13, 665
process technology 223
processing 643
project objectives 446–7
purchasing 378
quality 40, 52, 511–13, 666
reduction 39, 51–3, 128, 381
sandcone theory 617
spatially variable 148, 667
speed and 52
supply chains 377, 381, 399
technology 48
transformation 643
transport 645
unit 19, 22, 155–6, 189, 190, 300
variable 148, 189
coupling of technology 222, 223
CPA (critical path analysis) 475
CPM (critical path method) 475–81, 660
CRAFT (Computerized Relative
Allocation of Facilities
Technique 194, 660
crashing 485, 660
create-to-order planning and control
see make-to-order planning and
control
creativity 39, 122, 434
crisis management, ERP 416
critical path analysis (CPA) 475
critical path method (CPM) 475–81,
660
critical paths 470, 475–81, 660
critical success factors (CSF) 415–16
criticality 77
CRM (customer relationship
management) 390–1, 415
Croft Port 348
cross-border taxes 383
CRP (capacity requirements plans) 428
CSF (critical success factors) 415–16
CSR see corporate social responsibility
cultures
of improvement 617–20
organizations as 239
Index
672
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cumulative representation 317–22
customer-centricity 546
customer-driven objectives 555
customer-driven technologies 221
customer-focused operations 551
customer priority sequencing 280–1
customer relationship management
(CRM) 390–1, 415
customer to customer (C2C) 386
customers
contact skills 20, 57–8, 660
controlled flows 201
convenience for 152
expectations 498–501, 508–9, 594
fail-safeing 587
failures and 576, 594
first-tier 140–1, 377, 662
focus groups 118, 662
ideas from 118
influence on performance objectives
68–9
inputs of 12
interaction involving technology 219
internal 15, 17, 54, 509, 548, 662
inventories of 432
listening to 118
needs 18, 68, 69–71, 508–9, 545,
606, 612
non-operations functions 18
orders 422
perceptions 498–501
processing 12, 20–2
technology 208, 218–21
quality view 498–501
queuing perceptions 498
retention 396
satisfaction 39, 40, 375, 376, 396,
553, 594, 607
second-tier 140–1, 377, 667
services, e-business applications 214
short waiting tolerance 20
source of 323–4
training in technology 220–1
triggering 550
welfare 644
customization 91, 94, 97–9, 100–1,
125, 449, 660
mass 47, 664
cybermediaries 381–2
cycle inventories 343–4, 352–3, 660
cycle time 101, 196, 335, 660
cycles, improvement 544–5, 619, 662
dabbawalas 44–5
Daimler-Chrysler 90
DAN (desk-area networks) 212
Daniel Hersheson 122–3
Davenport, T. 551
DD (due date) sequencing 281, 283
decision support system (DSS) 215, 660
decisions 9
infrastructural 74–5, 662
inventories 75, 345–67
layouts 179
operations, globalization and 641
process technology 75
strategic see strategic decisions
structural 74–5, 668
supply networks design 141–2
decline stage, products/services 72
de-coupling inventories 344, 432, 660
defects 430, 435
per million 554
per million opportunities (DPMO)
554–5
per unit (DPU) 554
zero 511, 554, 669
define–measure–analyse–improve–
control cycle see DMAIC cycle
delays 449
delivered information 449
delivery
flexibility 46, 223, 660
schedules 445
Dell 47, 51, 61, 139, 145
Delphi method 171
demand
aggregate 300, 301, 303
balancing capacity and 156–7,
324–5
changes in 147, 314–15
dependent 274–5, 660
fluctuations, forecasting 301–4
forecast 422
independent 275, 662
management 309, 314–15, 316, 660
seasonality 302, 304, 315, 317
supply and 272–7, 440–2
uncertainty in 273–4
variability in 325
variation 20, 22
demand side 140–1, 148, 151–2, 377,
660
Deming, W. Edwards 544, 603
Deming cycle see PDCA cycle
Deming Prize 623
dependability 660
capacity planning and control 300
flexibility and 47, 48
in-house supply 144
inventory roles 342
objectives 40, 44–6, 52, 53, 58, 69,
89, 101, 282, 300
outsourced supply 144
performance measures 607–8
process technology 223
quality and 40–1
sandcone theory 616–17
supply chains 376
dependencies, projects 470
dependent demand 274–5, 660
see also materials requirements
planning (MRP)
dependent relationships 470
design 85
capacity 305–7, 660
computer-aided see computer-aided
design
e-business applications 214
environmentally sensitive 90–1
information flow 396
jobs see jobs
of layouts 189–202
material flow 396
organizations 238–41
package 115, 660
processes
see processes
products/services see
products/services
supply networks see supply networks
work flow 396
desk-area networks (DAN) 212
deterioration risk 364
developing countries 151
development communities 119
deviation from line of fit 605
DHL 388
diagnostic metrics 395
dimensions of process technology
221–3
direct responsibilities of operations
management 660
direction of vertical integration 143
–4
directors’ performance objectives 38
disasters 597–9
disciplinary practices 384
discipline 434
discount rate 225–6
discounting 317
discovery, failures 594–5
discrimination, global sourcing and 384
diseconomies of scale 155, 660
disintermediation 142, 660
Disney Channel 125
Disney World 208
Disneyland Paris 162–6
dispersion 334
disruptive technologies 660
distance travelled 190–1
distributed hypermedia/hypertext 213
distributed processing 660
distribution 384
see also logistics; physical distribution
management; supply chains
division of labour 95, 242–3, 660
DMAIC cycle 544, 555, 558, 661
do or buy decision 142, 143–6, 661
see also vertical integration
Dodge-Romig Sampling Inspection
Tables 534
double-loop learning 619
Dow Chemical 413
downsizing 553
downstream 141, 144, 391, 661
DPMO (defects per million
opportunities) 554–5
Index
673
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