Nigel S., Chambers S., Johnson R. Operations Management
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DPU (defects per unit) 554
drive-through services 87
driving strategy 63
drugs 115
drum, buffer, rope concept 290–1, 450,
661
DSS (decision support system) 215,
660
due date (DD) sequencing 281, 283
dummy activities 476–7
durability 502, 504
duty costs 383
dynamics
capacity planning and control 327
supply chains 392–4, 399
Dyson 116–17
Dyson, James 116–17, 119
e-business 214–15, 397, 661
e-commerce 214, 414, 415, 661
e-procurement 381–2, 661
earliest event times (EET) 477–9
earliest start times 480–1
early conflict resolution 132
earned-value control 661
earnings before investment and tax
(EBIT) 36
EBIT (earnings before investment and
tax) 36
EBQ (economic batch quantity)
352–4, 661
ecological footprints 635
economic batch quantity (EBQ)
352–4, 661
economic dimension of corporate
social responsibility 634, 636–7,
643–4
economic manufacturing quantity
(EMQ) see economic batch
quantity
economic mitigation 593
economic order quantity (EOQ)
349–52, 354–6, 360, 367, 661
econo-political environments 463
economies of scale 51, 155, 661
EDI (electronic data interchange) 213,
367, 397
EET (earliest event times) 477–9
effective capacity 305–7, 325, 661
effectiveness 54–5, 307–9
efficiency 103–4, 201, 306, 382, 399,
436, 607–8
efficient frontiers 54–5, 646–7
efficient supply chains 391
EFQM Excellence Model 623–4, 661
electronic data interchange (EDI) 213,
367, 397
electronic manufacturing services
(EMS) 61
electronic marketplaces 381–2
electronic point of sale (EPOS) 208,
397, 661
electronic product codes (ePC) 216
elemental data, synthesis from 254, 668
elevators 592
elimination of waste see waste
emergency services 43, 281
emergent strategies 67, 661
Emirates Airline 33–4
employee champions 236
employees see staff
empowerment 247–8, 548, 661
EMQ (economic manufacturing
quantity) see economic batch
quantity
EMS (electronic manufacturing
services ) 61
enablers 618–19
end-of-life of products 90, 643–4
end-to-end business processes 18–19,
661
end-to-end improvement processes
545–6
end-to-end system mapping 436–7
energy 90, 150, 643, 645
enlargement, jobs 246, 663
enrichment, jobs 246–7, 663
enterprise project management (EPM)
486–7, 661
enterprise resource planning (ERP)
268, 357, 406–7, 557, 661
benefits 411
changing methods of doing business
413
critical success factors 415–16
development of 408–15
implementation 415–17
investment in, reasons 413
nature of 408
problems 417
selection 416
supply chains 415
web-integrated 409, 414, 669
envelope of capability 210
environmental dimension of corporate
social responsibility 634–5,
638–41
environmental disruption 576
environmental management systems
640–1
environmental protection 661
environmental reporting 640
environmentally sensitive design 90–1
EOQ see economic order quantity
ePC (electronic product code) 216
EPM (enterprise project management)
486
–7, 661
EPOS (electronic point of sale) 208,
397, 661
EQA (European Quality Awards) 623,
661
equality 434
equipment
costs 48
efficiency 436
maintenance 541
overall effectiveness (OEE) 307–9,
664
Erdington Group 548–9
ergonomics 244–5, 251–2, 661
ERP see enterprise resource planning
errors 509, 511–12, 575, 597–9
type I and type II 506–7, 524–5,
533–5
ES (expert systems) 215, 216, 661
estimates of failures see failures
ethernet 212, 661
ethics 641, 643, 644, 645, 646, 647–8
European Quality Award (EQA) 623,
661
evaluation
design 117, 120–1, 122, 125–8
process technology 221–6
events (critical path method) 475–81,
661
evidence 555
evidence-based problem-solving 545–6
excess zones 614–15
EXL Laboratories 615–16
expectations 390, 498–501, 508–9, 594
expenditure, planned and actual 474
experience, loss of 553
expert systems (ES) 215, 216, 661
exponential smoothing 172, 173–4
exposure 20–2
Express Foods 315
extent of vertical integration 144
external benchmarking 611
external failure costs 511, 512–13, 661
external neutrality 63
external performance-based targets 610
external stakeholders 37
external support 65
extranets 213, 661
Exult 143
facilitating products 13, 661
facilitating services 13, 661
facilities 13
costs 48
failures 576
layouts of
environmental issues 639
expert systems applications 216
social issues 642
location 216
‘factory flow’ surgery 181
fail-safeing 430, 587, 661
failure mode and effect analysis
(FMEA) 541, 583–5, 661
failures
analysis 661
causes
assessments of 573–85
potential, identification 574–8
costs 511, 512–13
Index
674
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failures (continued)
estimates of
objective 578–82
subjective 583
likelihood 578–83
mean time between (MTBF) 581–2,
664
mitigation 573, 592–3
operations 39
post-failure analyses 578
potential occurrences 573
prevention 75, 573, 586–92, 639, 642
rates (FR) 578, 579–80, 661
recovery from 593–43, 666
business continuity 595–6
environmental issues 639
planning 573, 594–5
quality and 502, 504
social issues 642
sources 573
traceability 578
farming 41–2, 328–30
fashion industry 401–4
fast-throughput operating see
just-in-time
fast fashion 401–4
fast food 87
fault tree analyses 578, 579, 661
FCFS (first come first served) 282, 324
feasibility, designs 120–1, 128, 660
feedback 428, 461
FIFO (first in first out) 282
final design 117, 128–9
finance functions 5–6, 18
financial objectives 607
financial performance 646–7
financial returns 224–6
finished goods inventory 345
finite loading 278–9, 662
Finney, S. 415–16
first-tier customers 140–1, 377, 662
first-tier suppliers first-tier see
suppliers
first come, first served (FCFS) 282, 324
first in first out (FIFO) 282, 283
Fisher, Marshall 391, 392
fit, deviation from line of 605
Fitzsimmons, J.A. 432
five Ps of operations strategy formation
78
fixed cost breaks 155, 159–60, 662
fixed costs 189
fixed-position layouts see layouts
flexi-time working 249, 662
flexibility 662
basic working practices 434
capacity planning and control 301
costs and 20, 47, 52, 53, 96
dependability and 47, 48
in-house supply 144
inventory roles 342
long-term 179
low 243
networks 212
objectives 40, 46–8, 52, 53, 58, 69,
89, 101
outsourced supply 144
performance measures 607–8
process technology 223–2
processes 443
sandcone theory 616–17
services 449
supply chains 377
see also mix flexibility; volume:
flexibility
flexible manufacturing systems (FMS)
210, 662
flexible working 249–51
Flextronics 61–2
float 470, 471, 477–9
flows 177–8
charts 559–60
clarity of 179
controlled, customers and materials
201
factory flow surgery 181
length of 179
process charts 99–100
production flow analysis 194–6, 665
rates 89
record chart 190–1, 662
shapes 438
streamlined 436–40
synchronized 431–2, 547, 550
of transformed resources 187
visibility 439
volume-variety 187
fluctuations, demand 301–4
FMEA (failure mode and effect
analysis) 541, 583–5, 661
FMS (flexible manufacturing systems)
210, 662
focus groups 118, 171, 662
food-processing industry 230–1
forced labour 384
Ford 379
forecast demand 422
forecasting 168–76, 301–4, 367
Formule 1 hotels 14, 21
forward-looking views, risk
management 574
forward passes 480
forward scheduling 285–6, 662
forward vertical integration 144
Four Seasons Hotel 496–7
four-stage model of operations
contribution 63–4, 662
FoxMeyer Drug 413
FR (failure rates) 578, 579–80, 661
freedom of association 384
Freeman, Milton 646
front-office environment 22, 662
Fujitsu 145
functional design organisation 133
functional layouts see layouts
functional purposes, grouping
resources as 240
functional strategies 66, 662
functionality 502, 504
functions
basic 128
core 4–6, 660
manage all processes 17–18
non-operations 18
operations see operations
operations as 18
secondary 128
support 5–6, 668
G/G/m queues 336, 337–9
GAM (Groupe As Maquilage) 530–2
games 424–8
Gantt charts 286–7, 475, 486, 662
Gap 642–3
gap-based approach 76
garment industry 401–4
Gate Gourmet 388
GE 622
Geneva Construction and Risk 565–8
geo-social environments 463
getting it right first time approach 513
Giordano 68
gliding club 80–1
global alliances 410
global sourcing 382–4, 400
globalization 636, 641, 662
goals
perfection 547–8
projects 461
see also objectives; targets
Goldratt, Eliyahu 290, 449
goods see products; products/services
Google 119, 237
GORE-TEX® 234
–5
governments’ performance objectives
38
gravity analogy 290
green reporting 640
greenfield operations 76
Greenpeace 583
greetings cards 317
Grohman, M.C. 176
Groupe As Maquilage (GAM) 530–2
growth stage, products/services 72
Gummesson, E. 497
H&M 401–4
Hackman, J.R. 245
hairdressers 122–3, 220
Hall, Richard 441
Hallmark Cards 317
Hammer, Michael 550–1
hand tools 203–4
Happy Products 256–7
Harrison, A. 452
Hayes, R.H. 63–4, 95–6
Index
675
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health, staff
health and safety at work 251, 384
heijunka 430, 444
Heineken 541, 620
helicopter ambulances 43
Hersheson 122–3
heuristics 194, 199, 662
Hewlett-Packard 516–18, 638
hidden technologies 219
hierarchy of operations 15–17, 514, 662
high-level process mapping 98, 662
high-level strategic decision-making 67
high received variety 20
high staff utilization 20
high value-added manufacture see
just-in-time
high-visibility operations 20, 22–3, 147
Hill methodology 662
hire and fire 314, 662
historically based targets 610
Hogarth, R.M. 175
Holly Farm 328–30
homeworking 249, 578
Hon Hai Precision Industry 51, 145
Hoover 116
hospitals 41, 42, 44, 46, 48, 49, 270,
281, 440, 507, 586
hot standby 587
hotels 13, 20, 21, 57–8, 152, 380, 496–7
house of quality see quality function
deployment
housekeeping 446
Howard Smith Paper Group 356–7
hows 126–7
HSBC 649
human factors engineering 244, 662
human failures 575
human interface, job design 244–5
human resources 233–5
business process re-engineering and
553
functions 5–6
management 18, 214
strategies 236–8
see also jobs: design; staff
Hurricane Katrina 213
Hyatt 152
hype, excessive, avoidance 621–2
hypermedia/hypertext 213
IBM 213, 512
ice-cream 329–30
ideal operations 76
ideas 118–19, 131
identification, risks 596
idle time 313, 325, 326
IKEA 3–4, 13–14
illumination levels at work 251–2
image of location 151–2
Imai, Masaaki 544
IMF (International Monetary Fund) 636
immediate supply networks 140, 662
implementation
enterprise resource planning 415–17
improvement 620–4
planning 396
of process technology 227–8
of strategy 62–3, 78
importance–performance matrices
613–16, 662
improve zones 614
improvement 539–41
approaches to 549–58
awards 622–4
benchmarking as tool for 611
breakthrough 543, 659
continuous see continuous
improvement
culture 617–20
cycles 544–5, 619, 662
decisions 75
design 117, 125–8
elements of 542–9
implementation 620–4
importance 542
information for 606–12
innovation-based 543
as learning 619–20
organizing for 601–2
reasons for 603
performance 24, 394–400
priorities 612–17
procedures 546–7
of processes 99–101
strategy, linking to 603–5
supply chains 394–400
systems 546–7
techniques 558–63
in-house supplies 143–6
indented bills of materials 424–5
independent demand 275, 662
independent relationships 470
indirect process technology 208, 662
indirect responsibilities of operations
management 662
industrial parks 62
infinite loading 279, 662
infomediaries 381–2
information
delivered 449
flow design 396
for functional layouts 190–1, 192
for improvement 606–12
inputs of 12
integration 409–10, 411, 414, 415
inventories of 432
possession of 12
processing 12, 20
technology 208, 211–17, 223
see also information technology
queues of 432, 448
sharing, supply chains 397–8
sources, master production schedules
422
transparency 390, 415
information systems 6, 97, 126–7
inventories 366–7
management (MIS) 664
information technology 18, 211–17,
390, 416, 551, 662
infrastructural decisions 74–5, 662
injuries 243
innovation 39, 627
innovation-based improvement 543
input capacity measures 304
input costs 643
input resources 11–13, 662
input-transformation-output process
11–15, 24–5, 117
inputs 11–13, 89, 90, 345, 422
inspections 583
intangible resources 73–4, 662
integrated risk management 574
integrating technologies 208
Intel 99–100, 104, 151
interactive design 129–33, 662
intermediaries
interaction with technology through
219–21
internal benchmarking 611
internal customers see customers
internal effectiveness
cost reduction through 51–3
internal environments, projects 463
internal failure costs 511, 512–13, 663
internal neutrality 63
internal stakeholders 37
internal suppliers see suppliers
internal support 63–4
International Monetary Fund (IMF)
636
Internet 212–13, 214, 663
connectivity 577–8
open-sourcing 119
physical distribution management
384–5
purchasing 381
security 577–8
web-integrated ERP 409, 414, 669
see also e-business; e-commerce;
e-procurement
introduction stage, products/services 72
inventories
analysis and control systems 362
–5
anticipation 311, 344, 658
buffer 290–1, 343, 358– 9, 361–2,
431, 442, 659
carrying costs 383
components 345
control see planning and control
below
coordination 432
costs 342, 347, 354–6, 432
of customers 432
cycle 343–4, 352–3, 660
decisions 75, 345–67
Index
676
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inventories (continued)
de-coupling 344, 432, 660
disadvantages of holding 345–6
finished goods 345
forecasting 367
of information 432
information systems 366–7
of materials 432
meaning 342, 663
measuring 365–6
multi-echelon systems 345–6
need for 342–6
pipeline 344, 665
planning and control 340–1
ABC system 362–5
analysis and control systems 362–5
continuous reviews 360–2, 660
day-to-day decisions 345–67
economic batch quantity model
352–4
economic order quantity formula
349–52, 354–6
environmental issues 639
expert systems applications 216
periodic reviews 355, 360–2, 665
perpetual inventory principle 367,
665
problems 367
social issues 642
three-bin systems 362
time interval between orders 361
timing decisions 345, 357–62
two-bin systems 362
volume decisions 345, 346–57
position of 345–6
priorities 362–5
profiles 348–9, 352
push and pull control and 290
quality 432
raw materials 345
records 366, 425
reports 367
roles of 342
safety see buffer above
smoothing with 158–9
space 432
speed and 43
stock-outs 347, 358, 360, 361, 364, 367
supply chains and 391, 400
utilization 432
vendor-managed inventory 398
waste from 430, 435
work-in-process 344, 345
investments 39, 413
involvement 434–5
ISO 9000 standard 513–14, 583, 641, 663
ISO 14000 standard 640–1, 663
IT see information technology
item master files 425
jidoka 430
JIT see just-in-time
jobbing processes 92–3, 96, 180, 663
jobs
commitment 245–51
design 201, 233–5, 241
behavioural approaches 245–51,
658
decisions 75
definition 242, 663
environmental issues 639
ergonomics 244–5, 251–2
human interface 244–5
for job commitment 245–51
methods 243–4, 259–65
social issues 642
task allocation 242–3
work times allocation 252–4
working environment 251–2
enlargement 246, 663
enrichment 246–7, 246–7, 663
rotation 246, 663
sharing 247, 250
specified 254
John Lewis Partnership 650
Johnson, Gerry 617
Johnson’s Rule 284
joint coordination of activities 390
joint learning 390
joint problem solving 390
judging sequencing rules 282
just-in-time (JIT) 268, 430
backward scheduling 285
corporate social responsibility and
639
economic order quantities and 355
environmental issues 639
materials requirements planning and
451
meaning 433, 663
see also lean
kaizen 435, 544, 663
kanbans 430, 441–2, 663
Karlstad Kakes (KK) 199–200
Kaston Pyral Services Ltd 559, 560,
561, 562, 563
keiretsu 663
Kendall’s notation 336
key performance indicators (KPI) 395,
607
knowledge
process 533
technical 17
see also expert systems
KPI (key performance indicators) 395,
607
labour
costs 48, 50, 147, 149, 223
division of 95, 242–3, 660
efficiency 436
see also human resources; skills; staff
lagging, capacity 157–8, 659
land costs 149
landed costs 383
LAN (local area networks) 212, 409, 663
last in first out (LIFO) 282
latest event times (LET) 477–9
latest start times 480–1
layouts 177–8
basic 180–9
cell 180, 183, 187, 188, 194–6, 436,
659
decisions 179
detailed design 189–202
of facilities 216
fixed-position 180–1, 185, 187, 188,
189, 662
functional 180, 181–3, 185, 187, 188,
189–94, 436
line 183, 663
long thin 200–2
meaning 179
mixed 185–6
objectives 179
process see functional
above
product 180, 183
–4, 187, 188,
196–202, 436, 666
selecting type of 187–9
short fat 200–2
transparency 439
Laz-skan project 488–92
LCL (lower control limits) 525, 527–32
lead logistics providers (LLP) 385
lead time 168, 357–9, 425–6, 451
lead-time usage 358–60, 663
leading, capacity 157–8, 659
lean 355, 433, 551, 663
as improvement approach 550, 557–8
social issues 642
synchronization 347, 429–30
capacity utilization and 433–4
benefits of synchronized flows
431–2
involvement of everyone 434–5
materials requirements planning
and 451–2
meaning 431–5
river and rocks analogy 432–3
services 448–9
supply networks 447–9
theory of constraints and 449–51
waste elimination 435–46
see also just-in-time
lean Sigma 557
learning 242
double-loop 619
from failures 595
improvement as 619–20
organizations 618
partnership supply relationships 390
potential 227
process control 532–3
single-loop 619
legal services 71
Index
677
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length of flows 179
lens manufacture 488–92
less important competitive factors
69–71, 613, 663
LET (latest event times) 477–9
level capacity plans 309, 316, 318–21,
663
level master production schedule 423
levelled resources 472
levelled scheduling 430, 444–6, 663
Levi Strauss 383, 384
libraries 182–3
life cycles
analysis 91, 663
products/services 72, 91, 666
LIFO (last in first out) 282
lifts 591
lighting 251–2
Andon 658
likelihood of failures 578–83
line balancing 197, 663
line layouts 183, 663
line of fit, deviation from 605
line-stop authority 430
listening to customers 118
Little’s Law 101–3, 335, 663
Lloyd’s of London 556
Lloyds TSB 250–1
LLP (lead logistics providers) 385
loading 277–9, 663
lobby groups’ performance objectives
38
local area networks (LAN) 212, 409,
663
location 663
of capacity 146–54
of customers 12
decisions 147–52
design decisions 142
facilities 216
files 425
flexibility 249
image of 151–2
materials 12
techniques 152–4
Lockheed Martin 129
logistics 356, 377–8, 384, 385, 663
London Eye 309
Long Ridge Gliding Club 80–1
long-term capacity management 142,
155–60, 299, 663
long-term capacity planning and
control 169
long-term expectations 390
long-term flexibility 179
long-term issues, supply networks and
141
long-term planning and control 270–1
long thin layout 200–2, 663
longest operation time (LOT)
sequencing 282
loss reduction 593
lot tolerance percentage defective
(LTPD) 534–5
low unit costs 19
low-visibility operations 20–2
lower control limits (LCL) 525, 527–32
Lower Hurst Farm 41–2
LSG Sky Chefs 388
LTPD (lot tolerance percentage
defective) 534–5
M-business 215
M-form organizations 240, 241
M/M/m queues 336–7, 339
machines 239
macro level operations 16
Magic Moments 500–1
maintenance 216, 588–92, 663
see also total productive maintenance
make-to-order planning and control
275, 663
make-to-stock planning and control
276, 663
Makridakis, S. 175
Malaysia Airlines 129
Malcolm Baldrige National Quality
Award 623
MAN (metropolitan-area networks)
212
management
coordination 179
performance 610–11
projects see projects
of risks see risks
of stakeholders 463–6
see also top management
management information systems
(MIS) 664
manufacturing
computer integrated (CIM) 211, 659
flexible systems (FMS) 210, 662
process types 91–4, 96, 180
resource planning (MRP II) 409, 664
mapping
process see processes: mapping
value stream 436–7
market influence on performance
objectives 68–9
market objectives 607
market requirements 7–8, 65, 68–75,
223, 604–5, 606, 664
market supply relationships, traditional
388–9
marketing
e-business applications 214
functions 4–6, 17–18
markets, grouping resources as 240
Marks and Spencer 37, 146
martial arts analogy of Six Sigma 555–6
mass customization 47, 664
mass processes 93, 96, 180, 664
mass production 91, 93
mass services 95, 96, 180, 664
master production schedules (MPS)
408, 422
–4, 664
material inputs 12
materials
bills of see bills of materials
controlled flow 201
costs 48, 378
flow design 396
handling 201
inventories of 432
management 377, 378
processing technology 208, 209–11
queues of 432
materials requirements planning
(MRP) 285, 289, 408–9, 664
bills of materials see bills of materials
capacity checks 428
closed loop 428
environmental issues 639
inventory records 425
just-in-time and 451
lean synchronization and 451–2
master production schedules 408,
422–4
netting process 425–7, 664
social issues 642
matrix organizations 133, 240, 241
Matsushita 151
Matsushito, Konosuke 511
maturity stage, products/services 72
McDonald’s 19, 87, 247
mean time between failures (MTBF)
581–2, 664
mean time to repair (MTTR) 582
measurement
capacity 304–9
inventories 365–6
performance see performance
quality characteristics 503–4
medium-term capacity management
169
medium-term capacity planning and
control 299–300
medium-term planning and control
270–1
Mercedes-Benz 43
merchandising 664
merge events 480
method study 243, 259–61, 551, 664
metropolitan-area networks (MAN)
212
micro-detailed process map 664
micro level operations 16, 89
milestones 467, 664
milk industry 292, 328–30
milking machines 218
Millau Bridge 458
minimization of waste 639–40
MIS (management information
system) 664
miscommunication in supply chains
393–4
Index
678
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mitigation
of ethical practice breaches effects
648
of failures 573, 592–3
Mitsubishi 126
mix flexibility 46, 201, 223, 664
mixed capacity plans 315–16
mixed layouts 185–6
mixed modelling 445–6
mobile phones 128, 215, 649–50
mobile working 249
model of operations management 24–5
modular design 124–5, 664
money
time value of 224–6
see also costs
monitoring
operations 289–90, 291
projects 474
monotonous work 202, 243
motion
economy principles 261, 665
waste of 430, 435
motor manufacturing see automobile
plants
Motorola 128, 129, 553
moving-average forecasting 172–3, 174
MPS see master production schedules
MRP see materials requirements
planning
MRP II (manufacturing resource
planning) 409, 664
MRP netting 425–7, 664
MTBF (mean time between failures)
581–2, 664
MTTR (mean time to repair) 582
multi-echelon inventory system 345–6
multi-factor productivity 50
multi-skilling 249, 664
multi-sourcing 380–1, 664
Murphy curves 228
Mwagusi Safari Lodge 14, 21, 23
N-form organizations 240, 241
nagare 4330
National Blood Service 341
National Library Board, Singapore
626–7
National Trust 465–6
natural diagonals 96, 436
needs 18, 68, 69–71, 508–9, 545, 606,
612
net present value (NPV) 224–6
netting process, MRP 425–7, 664
network form organizations 240, 241
networks
analysis 475, 664
design
environmental issues 639
social issues 642
extranets 213, 661
internal 15
intranets 213
networked information technology
213
planning 475–87
see also Internet; supply networks
neutrality 63
Nicholas, J.M. 460
noise at work 252
Nokia 51, 61
non-competitive benchmarking 611
non-operations functions 18
non-productive work 242
non-value-adding activities 437–8
Northamptonshire Police 280
Northern Foods 388
Northrop Grumman 207
not-for-profit organizations 9–10, 37,
148
notebook computers 145
Novotel 314
NPV (net present value) 224–6
nuclear power 586, 597–9
objective estimates of failures 578–82
objectives
capacity planning and control 300–1
cost see costs
customer-driven 555
dependability see dependability
financial 607
flexibility see flexibility
layouts 179
of location decisions 148–9
market 607
operations 57–8, 607, 612–13
overall strategic 607
performance see performance
process design 88–91
projects 459, 466–7
quality see quality
speed see speed
strategic 23, 607
supply chains 375–7
obsolescence 347, 349, 364
OC (operating characteristics) 534
occupational health and safety see
health and safety at work
OEE (operating equipment efficiency)
541
OEE (overall equipment effectiveness)
307–9, 664
OEM (original equipment
manufacturers) 392–3, 410
offices
ergonomics in 252–3
replacement 596
virtual 249
Ohno, Taiichi 550
Oldham, G. 245
one-sided capability indices 522
open communications, risk
management 574
open-sourcing 119
operating characteristics (OC) 534
operating equipment efficiency (OEE)
541
operating inefficiency costs 347
operation time sequencing 282
‘operational’, definition 62
operational efficiency 201, 399, 664
operational equipment efficiency see
overall equipment effectiveness
operational risks, global sourcing 383
operations
as activities 18, 23
–5
analyses 15
broad definition of 5, 659
characteristics 19–23
control 289–90
decisions, globalization and 641
efficiency 608
functions 4–6, 17–18, 664
hierarchy of 15–17, 514, 662
improvements 604–5
managers 4, 664
corporate social responsibility,
analyses of issues 646–8
meaning 62
monitoring 289–90
new agenda 10–11
objectives 57–8, 607, 612–13
in organizations 4–6, 17–18
performance objectives see
performance
quality view 498–501
resource capabilities 65, 73–5, 664
service providers 14
strategies 24–5, 60–81, 664
typology 22
operations contribution, four-stage
model of 63–4, 662
operations management
corporate social responsibility
influences on 637–45
definition 2, 4–6, 664
e-business and 214
expert systems and 216
importance in all types of
organization 6–11
make or break activity 34–5
model of 24–5
not-for-profit organizations 9–10
process technology and 209
relevance to all parts of businesses
17–18
smaller organizations 8–9
operations network management 551
OPT see optimized production
technology
optimistic estimates 469, 481–3
optimized production technology
(OPT) 290, 449–50, 664
optimum capacity level 155–6
Oracle 408
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Orange 649–50
orders
fulfilment 385, 664
generating 366–7
placing costs 347, 349–51
quantity decisions 345, 346–57
timing decisions 357–62
winning competitive factors 69–71,
613, 664
organic farming 41–2
organisms, organizations as 239
organizational abilities 617–18
organizational ethics 644
organizational failures 576
organizational learning 227
organizations
design 238–41
operations in 4–6, 17–18
perspectives on 239
structures
definition 238
forms of 239–41
project-based 132–3
organizing for improvement see
improvement
original equipment manufacturers
(OEM) 392–3, 410
Otis Company 592
outline process maps 98, 664
output capacity measure 304
output costs 643–4
outputs 11, 7–8, 13–15, 19
outsourcing 142, 143–6, 389, 467, 556,
664
over-booking capacity, airlines 316
over-production, waste from 430, 435
overall equipment effectiveness (OEE)
307–9, 664
overall strategic objectives 607
overtime 313–14
Oxfam 9–10
P:D ratios 276–7, 451, 665
P2P (peer-to-peer) relationships 386
packages see products/services
panel approach to forecasting 171
paper industry 184, 356–7
parallel processors 323–4
parallel relationships 470
Parasuraman, A. 500
Pareto analyses 562
Pareto diagrams 561–2
Pareto law 363–5, 664
Paris Miki 47
part-time staff 314
participation 78
partnership supply chain relationship
389–90, 664
parts commonality see commonality
parts family coding 665
passive interaction technology 219, 665
paths, critical 470, 475–81, 660
PDA (personal digital assistants)
215
PDCA cycle 544–5, 665
peer-to-peer networks 212
peer-to-peer (P2P) relationships 386
Penang Mutiara 57–8
people
human failures 575
queues of 432
total involvement 435
see also customers; human resources;
staff
perfection 547–8
performance 32–4
benchmarking 394, 395, 611
competitors and 612–13
defined levels of 254
ethical 646–7
financial 646–7
of forecasting models 175–6
improvement 24, 394–400, 605
key performance indicators (KPI)
395, 607
management 610–11
measurement 554, 606–9, 610–11,
665
metrics 395
objectives 101, 665
basic 39–40
competitive factors 68–9
cost see costs
customer influence 68–9
dependability see dependability
flexibility see flexibility
market influence 68–9
outsourcing and 144
polar representation 53–4
process design 89
product/service life cycle influence
72
project management 466–7
quality see quality
speed see speed
of top management 39
trade-offs between 54–5
processes 547
projects, assessing 474
standard 254, 668
standards 665
target setting 609–11
vital nature of 34–40
periodic reviews, inventories 355,
360–2, 665
perpetual inventory principle 367, 665
personal digital assistants (PDA) 215
personnel see staff
PERT (programme evaluation and
review technique) 452, 481–3,
666
pessimistic estimates 469, 481–3
PFA (production flow analysis) 194–6,
665
pharmaceuticals 115
photography 500–1
photonics industry 488–92
physical constraints, sequencing 280
physical distribution management 377,
384–5, 665
physical injuries 243
physical properties 12
physiological state 12
pianos 185
Pig Stand restaurant 87
pipeline inventory 344, 665
pipelines, supply chains 375
plan–do–check–act (PDCA) cycle
544–5, 665
planning
business continuity 595–6
ERP 416
failure recovery 573, 594
–5
implementation 396
meaning 270, 665
see also enterprise resource planning;
materials requirements planning
planning and control 24, 267–9
activities 277–92
decisions 75
differences between 270–1
environmental issues 639
meaning and nature 270–2
social issues 642
supply and demand 272–7
volume-variety effect 272
waste effects 639
see also capacity: planning and
control; control; inventories:
planning and control;
planning; projects: planning and
control; quality: management;
supply chains:
management
plant-within-a-plant 665
plastic household items 369–71
Platts, Ken 78
PM (preventive maintenance) 588–9,
665
PMTS (predetermined motion–time
systems) 254, 665
point of entry 78
poka-yoke 587, 665
polar diagrams 53–4, 606, 665
polar representation 53–4
police call grading system 280–1
political systems, organizations as 239
pollution 639
POQ (production order quantity) see
economic batch quantity
positioning 54, 55
possession of information 12
post-failure analyses 578
potential failure 573, 574–8
power–interest grid 464–5
practice benchmarking 611
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precedence diagrams 197–9, 481
precedence networks 480–1
predetermined motion–time systems
(PMTS) 254, 665
preliminary design 117, 123–5, 665
pressures, business 10–11
Preston Plant of Rendall Graphics
516–19
Prêt a Manger 13–15
prevention
costs 511, 512–13, 665
ethical practice breaches 648
of failures 573, 586–92
preventive maintenance (PM) 588–9,
665
prices
discounting 317, 347, 349
global sourcing and 383
principles of motion economy 261, 665
priorities, improvement 612–17
priority sequencing 281
prison labour 384
probabilistic estimates 469–70, 481–3
problems
solving
evidence-based 545–6
joint 390
quality gap 501
process flow charting 551
process variation 553–4
processes 665
analysis see mapping below
batch see batch processes
blueprinting see mapping below
business 18–19
capability 522–6, 532–3, 555, 665
characteristics 19–23
continuous see continuous processes
control 526, 532–3, 555
defining, to create package 125
delays 449
design 24, 86–111, 115, 116–17, 555,
576, 665
distance 227
end-to-end 545–6
exposure 20–2
flexibility 443
hierarchy of 15–19, 514
implementation 78
improvement 99–101, 545
inputs to 12–13
jobbing see jobbing processes
knowledge 533
layouts 665
see also layouts: functional
management 17–18
in manufacturing 91–4, 96
mapping 92, 97–101, 125, 437,
559–60, 665
mapping symbols 97–9, 665
mass see mass processes
mass services see mass services
in non-operations functions 18
of operations strategy 75–8
outputs 13–15, 665
performance 547
product–process matrix 95–6, 666
professional services see professional
services
project see project processes
quality variation 521–6
resourcing failures 576
in service operations see service
operations
service shops see service shops
of strategy 62, 75–8, 665
technology 206–7
automation 221–2
customer-processing technology
218–21
decisions 75
dimensions of 221–3
environmental issues 639
evaluation of 221–6
implementation 227–8
indirect 208, 662
information-processing technology
211–17
integrating technologies 208–3
materials-processing technology
209–11
meaning 208–9, 665
operations management and 209
scale of 222–3
small-scale 439
social issues 642
volume-variety reflected by 221–3
types 91–6, 180, 665
utilization 105–7
variability 105–7
variation reduction 547
yield 554
processing 12, 20
costs 643
times (VUT formula) 337
waste 430, 435
procurement see
e-procurement;
purchasing
product
–process matrix 95–6, 666
production
e-business applications 214
production flow analysis (PFA) 194–6,
665
production of waste 643
production order quantity (POQ) see
economic batch quantity
productivity 49–51, 608, 665
products
defects, waste from 430, 435
layouts see layouts
prototypes 128–9
recalls 572, 576
structure 123, 424–5, 666
substitution of services in place of
643–4
technology 666
products/services
alternative 315
core 116
decline stage 72
design 24, 88, 112–14
acceptability 120–1, 128, 660
complexity reduction 124–5
concept 115, 660
concept generation 118–20
concurrent approach 131
creativity 122
criteria 120–1
decisions 75
environmental issues 639
evaluation 117, 122, 125–8
expert systems applications 216
failures 576
feasibility 120–1, 128, 660
final 117, 128–9
funnel 121–2, 660
importance of good design
114–29
improvement 117, 125–8
interactive 129–33, 662
open-sourcing 119
preliminary 117, 123–5, 665
process 115, 116–17
prototyping 117, 128–9, 666
screening 117, 120–3, 660
sequential approach 131
simultaneous development 131
social issues 642
stages 117–29
vulnerability 120–1, 128, 660
development functions 5–6
flexibility 46, 666
growth stage 72
introduction stage 72
life cycles 72, 91, 666
maturity stage 72
merging 14–15
new, design see design above
outputs of 11–12
packages of 115–16, 123, 125
quality sampling 507, 533–5
supporting 116
see also products; services
professional services 94, 96, 180, 666
profiles, inventory 348–9, 352
profitability 34–7, 114, 124, 130, 390,
396, 399
profits 34–7
programme evaluation and review
technique (PERT) 452, 481–3,
666
programmes 459, 666
project-based organization structures
132–3
project champions, ERP 416
project processes 91–2, 96, 180, 666
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681
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projects
definition 462, 466–7, 666
common elements 459
design organization 132–3
environments, understanding 463–6
intervening to change 474–5
management
computer-assisted 486–7
ERP 416
implementation 78
stages 462–3
stakeholders 463–6
successful 461–2
managers 461–2
meaning 459, 666
monitoring 474
objectives 459, 466–7
performance assessment 474
planning and control 457–8
control 473–5
environmental issues 639
network planning 475–87
social issues 642
scope 467
stakeholders 463–6
strategy 467
typology 459–61
proportion defective 554
prototyping 117, 128–9, 666
Psycho Sports Ltd 418–20
psychological state 12
pull control 289–90, 441, 448, 451,
666
see also just-in-time
purchase prices, global sourcing and
383
purchasing 214, 378–9, 608, 666
pure functional forms 133
pure project forms 133
purpose 78, 128
push control 289–90, 451, 666
see also materials requirements
planning
QA (quality assurance) 508
QB House 220
QFD (quality function deployment)
125–7, 666
QLF (quality loss function) 525–6,
666
QSR (quick service restaurants) 87
qualified workers 254, 666
qualifying competitive factors 69–71,
613, 666
qualitative forecasting 170–1
quality 495–7
acceptance sampling 507, 658
assurance (QA) 508
attributes 504, 527–8, 658
awards 622–4
capacity planning and control 300
characteristics 502–4, 666
control (QC) 505–7, 508
costs 40, 52, 511–13, 666
customers’ view 498–501
definitions 498, 666
environmental issues 639
gaps, perceived 498–500, 501
in-house supply 144
importance 497–501
inventories and 342, 432
management
acceptance sampling 507, 533–5,
658
conformance to specification 498,
502–8
customer-focus 514
expert systems applications 216
improvement-driven 514
statistical process control see
statistical process control
see also total quality management
market requirements and 68–9
measurement 503–4
objectives 40–2, 52, 53, 57–8, 69, 89,
101, 300
operation’s view 498–501
outsourced supply 144
overall equipment effectiveness
307–9
performance measurement 514,
521–2, 607–8
problems 501
procedures 513–14
process technology 223
project objectives 446–7
sampling 507, 533–5, 666
sandcone theory 616–17
Six Sigma approach see Six Sigma
social issues 642
at source 548
standards 504–7
supply chains 376
systems 513–14, 546
target-oriented 525–6
variables 504, 528–32, 666
quality function deployment (QFD)
125–7, 666
quality loss function (QLF) 525–6, 666
quality of working life (QWL) 434
Quanta 145
quantifying actions 606
quantitative evidence 555
quantitative forecasting 170, 171–4
queuing
analyses 106
analytical models
notation 333
types of system 336–9
balancing capacity and demand
324–5
customer perceptions 326
discipline 324
information, queues of 432, 448
management 323–4, 326
material, queues of 432
people, queues of 432
systems 333, 336–9
theory 317, 322, 336, 666
variability in demand/supply 325
quick service restaurants (QSR) 87
QWL (quality of working life) 434
R&D (research and development) 119,
667
Radio Frequency Identification (RFID)
216–17, 219, 627
rail transport 95
ratings, work measurement 262, 666
raw materials inventories 345
RBV (resource-based view) 73, 667
RCCP (rough-cut capacity plans) 428
RCM (reliability-centred maintenance)
591, 667
reach, e-business 214
received variety 20, 666
record charts, flow 190–1,
662
recovery
from ethical practice breaches effects
648
from failures see failures
recycling 638, 639, 643
Red Queen effect 543
reduction of waste 639
–40
redundancy 586–7, 666
regulators’ performance objectives 38
rejecting, queuing theory 324
relationship matrices 125–7
relationships
charts 666
projects 470
in supply chains 386–91
relative uncertainty 302
reliability 502, 504, 578, 581, 666– 7
reliability-centred maintenance (RCM)
591, 667
remainder cells 196, 667
remote mice 123, 128
Rendall Graphics 516–19
reneging, queueing theory 324
re-order levels (ROL) 358, 360, 667
re-order points (ROP) 357–8, 362, 667
repeatability 19, 22, 667
repetition 221
repetitive strain injury (RSI) 243, 644,
667
replacement offices 596
repositioning 54
reputational risks 643, 645, 646
research and development (R&D) 119,
667
resilience 39, 607
resource-based view 73, 667
resource requirements plans (RRP) 428
resource-to-order planning and control
275, 667
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resources 7–8
business continuity 596
capabilities 65, 73–5
characteristics 240
constraints 73, 470, 483–4
distance 227
effective use 39
grouping 240
intangible 73, 667
processes, failures 576
profiles 483–4
projects 461, 469–70
see also transformed resources;
transforming resources
respect-for-humans system 434
responses, flexibility and 48
responsibilities of operations
management 23–4
responsive supply chains 391
responsiveness to clients, projects 461
restaurants 87, 185, 211, 448
retail industry 140–1, 216–17, 397–8,
401–4, 650
see also supermarkets
revenues 300
reverse engineering 118, 667
RFID (Radio Frequency Identification)
216–17, 219, 627
richness, e-business 214
risks
of acceptance sampling 533, 534–5
assessments
business continuity 596
ethical practice breaches 647
failures 573–85
deterioration 364
ethical practice breaches 647–8
global sourcing 383
identification 596
management 571–2
corporate social responsibility as
646–8
meaning 573
principles 574
see also failures
mitigation 573, 592–3
obsolescence 349, 364
operational failure 39
reduction, speed and 43
reputational 643, 645, 646
sources 573
supply chains 400, 668
vulnerability of design option 120–1
river and rocks analogy 432–3
roadmap, SCOR 396
Robert Wiseman Dairies 292
robots 209–10, 211, 218, 667
robustness 202, 243
Rochem Ltd 230–1
Rocket Chemical Company 119
Roddick, Anita 646
ROL (re-order levels) 358, 360, 667
Rolls-Royce 407, 644
ROP (re-order points) 357–8, 362, 667
rostering 288, 667
rotation, jobs 246, 663
Rotterdam Educational Group (REG)
192–3
rough-cut capacity plans (RCCP) 428
routine services 71
Royal-Dutch Shell 583
RRP (resource requirements plans) 428
RSI (repetitive strain injury) 243, 644,
667
run-to-breakdown (RTB) maintenance
588–9, 667
Ryanair 61
safety
inventories see inventories: buffer
layouts 179
at work 251, 384
salads 310–11
sales
e-business applications 214
functions 4–6, 18
Salisbury District Hospital 440
sampling
plans 533–5
quality 507, 533–5
sandcone theory 616–17
sandwiches 97–9, 100–1, 286–8,
411–13
SAP 394, 407, 408, 410, 414–15, 417,
667
satisfaction, customers see customers
Satyam Computer Services Ltd 414
scale of capacity 156
scale of process technology 222–3
scatter diagrams 558–9
SCC (Supply Chain Council) 394
scenario planning 171
schedule constraints 470–1
scheduling 284–9, 667
expert systems applications 216
levelled 430, 444–6, 663
schematic layouts 193
scientific management 97, 243–4, 259,
542, 551, 553, 667
SCOR (Supply Chain Operations
Reference) model 374, 394–6
screening 117, 120–3, 660
seasonality 302, 304, 310–11, 315, 317
second-tier customers 140–1, 377, 667
second-tier suppliers see suppliers
secondary functions 128
security, computers and Internet 577–8
self-assessment 623
sequencing 279–84, 324, 667
sequential approach to design 131
series relationships 470
serpentine flows 438
servers
client–server networks 212
queuing theory 324
Service Adhesives 256–7
service-level agreements (SLA) 509–10,
548, 667
service operations 94–5, 96, 550
service prototypes 128–9
service shops 94–5, 96, 180, 667
services
fail-safeing 587
failure recovery 594
flexibility 449
lean synchronization 448–9
legal 71
merging 14–15
operations producing 13–14
providers 14
substitution in place of products
643–4
varying types 317
waste in 448
see also products/services
set-up times reduction 443, 667
Seven-Eleven Japan 398
shared success, partnership
relationships 389
shared vision, risk management 574
shareholders’ performance objectives 38
sharing, jobs 247, 250
Shell 381, 394
shop-within-a-shop 183–4, 665
shops see
retail industry; service shops;
supermarkets
short cycle time manufacturing see
just-in-time
short fat layout 200
–2, 667
short-term capacity management 169
short-term capacity planning and
control 299–300
short-term planning and control 270–1
short-term transactional relationship
388
short waiting tolerance 20
shortest operation time (SOT)
sequencing 282, 283
Siemens 374, 394
Silicon Valley 151
simplicity 124–5
simulation 107, 117, 667
simultaneous development 131, 667
simultaneous engineering 131, 667
single-card kanbans 441–2
single factor productivity 50
single-loop learning 619
single-minute exchange of dies
(SMED) 443, 667
single-sourcing 380, 667
sites 151
Six Sigma 542, 544, 545, 553–8, 565–8,
667
skills 13, 20, 57–8, 151, 249, 548
Skinner, Wickham 54
SKU (stock-keeping units) 355, 365
Index
683
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