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Also, the manager needs to ensure that the necessary administrative and legal formalities are completed. The structure must account for the fact that strategic quality planning is an ongoing process, based on the principles of quality improvement and involves the EMS system's organizational, financial and clinical aspects. The customer may opt for a generic scheme, such as the ISO 9000 series, considering that accreditation of the supplier’s systems would be sufficient guarantee of performance.

Pages: 123

Publisher: Springer Gabler; 2015 edition (June 5, 2015)

ISBN: 3658099178

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It is the process of structuring a company's resources—its personnel and materials—in a way that will allow it to achieve its objectives Foundations of Production and Operations Management. Industrial quality experts define "quality" as a continuous effort by all members of an organization to meet needs and expectations of customer. Recognition and analysis of variation is fundamental to quality management and particularly important in medical care where there are multiple sources of variation that combine at random to cause variations in outcome (sources of variation include, e.g., patients, preexisting condition, presentation, provider mix, availability of diagnostic tests, and accuracy of results) The Effect Of Global Branding Strategies On Consumer Values And Needs. An alternative to choosing and developing a particular management structure is to hire the person you're sure you want and go with her management preferences Second Largest Expense: Leasing Solutions Per Square Foot. They coach and influence their unit managers, rather than control them. Geographic density is Capacity and scheduling management 273 not too great an issue for them as they do not believe they have to spend a lot of time in each unit. Goss-Turner and Jones (2000) suggest that individual managers could not easily move from one firm to another with different characteristics The Going Lean Fieldbook: A Practical Guide to Lean Transformation and Sustainable Success. The plans should be specific and measurable, for example, meaning that they will have definite goals that can be measured against definite results. Plans should also be time-oriented, or should be devised with deadlines for accomplishing parts of the entire goal and a final deadline for completion. Insufficient resources or impossible goals can thwart motivation and result in underperformance SURFACE PRODUCTION OPERATIONS VOL 1 THIRD 3RD EDITION. He moved from Denver to Detroit when the company was acquired by Capital Cities Cable and took on additional responsibilities in financial analysis and reporting in the accounting department. Gosch then transferred to Phoenix in his first divisional role as a business division manager, when The Washington Post acquired the cable division from Capital Cities Communications Fire Hydrants: Water Distribution Operator Training.

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Normann, R. and Ramirez, R. (1993) From value chain to value constellation: designing interactive strategy. R. (1999) A multiple-method study of environmental uncertainty and manufacturing flexibility. Journal of Operations Management, 17, 307–325. Prais, S. (1981) Productivity and Industrial Structure: A Statistical Study of Manufacturing in Britain, Germany and the U Current Construction Costs 2000. Krcmarov worked extensively in Australia, Chile and Peru with Homestake Mining, which was acquired by Barrick in 2001. At that time, he was appointed Barrick’s General Manager Exploration for Australia, and subsequently took on responsibility for exploration in Africa and Asia before becoming Vice President, Global Exploration in 2005 Factors Driving Social Network Site Usage online. Rolls Royce was sold in 1998 and Rover had been sold to BMW in 1994. Britain now acts as host to a number of major players. But the strategic significance of this development for the UK is evident in the following (Standard and Poor’s Industry Survey, 3 June 1999): In the case of every plant, from General Motors’ Astra-producing facility at Ellesmere Port, a few miles from Halewood on Merseyside, through Nissan’s at Sunderland,Toyota’s in Derbyshire, Honda’s at Swindon, to the Rover and Land Rover plants of the Midlands, ultimate decisionmaking lies not in the UK but in the boardrooms of Detroit, Munich and Tokyo The Economics of Aid (Routledge Library Editions: Development).

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Representative strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains. · Tactical issues include plant layout and structure, project management methods, and equipment selection and replacement Analytics in Operations/Supply Chain Management. He is also a director and Chairman of the Compensation Committee of Scientific Drilling International, Inc. Gobe is a graduate of the University of Texas with a degree in history and earned his MBA at the University of Louisiana in Lafayette. Retired Dean, Mewbourne College of Earth and Energy, The University of Oklahoma Stacy Methvin became a Director of the Company in July 2013 Applied Systems Theory. This is called a service and the businesses that provide these are found in industries in the tertiary sector. The tertiary sector is where the output is sold to the customer. For example, the banking industry sells financial services to customers and the retail industry sells retail products Operations Management for MBAs, 5th Edition. Prior to joining Caesars Entertainment (then Harrah’s Entertainment), Donovan served as Executive Vice President, General Counsel and Corporate Secretary of Republic Services, Inc. from December 2008 to March 2009 after a merger with Allied Waste Industries, Inc., where he served in the same capacities from April 2007 to December 2008 Banking/Trading - Operations Management (Finance and Capital Markets Series). His vision for Gates going forward includes his commitment to growth, innovation, and operational excellence The Rise and Fall of COMSAT: Technology, Business, and Government in Satellite Communications. The MRP system can also serve to highlight business performance problems with delivery speed and reliability. As Schmenner (1990, p. 487) suggests: Not only can an MRP system detail what should be ordered and when, but also it can indicate how and when late items will affect other aspects of production. It can signal … how tardiness will alter the existing production schedule. Since delivery speed and reliability are crucial in many markets, it is clear that MRP can play an important role in achieving these market requirements Port-Focal Logistics and Global Supply Chains.

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Be clear on the organization’s vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community Supply Chain Analysis. The second major challenge of capacity management is therefore fundamentally about matching the productive output of the operation with market 266 Strategic operations management demand The Lean Design Solution. Samina is a co-founder of Merrick Systems, which P2 acquired in December 2014. A leading energy and technology entrepreneur, Samina co-founded Merrick in 1989 and served as the company’s CEO, CFO, COO, and Chairman of the Board. On what inspired her and her two nephews to found Merrick, Samina commented: “Poor and outdated production data was being used in energy companies to make key decisions and in accounting and engineering Supply Chain Simulation: A System Dynamics Approach for Improving Performance. Ask his former employers and colleagues about his management style, his relationships with others in the organization, the ways in which he might solve a particular problem, etc. If someone makes you uncomfortable or feels "wrong," that's significant: don't ignore it, no matter how great her resume looks. If you have a sense of the people you're looking for, you'll know at least some of them when you see them download Factors Driving Social Network Site Usage pdf. The Plex manufacturing management software solution provides a real-time view of your plant floor operations for smarter, more confident decisions that drive increased efficiency. For effective decision-making, you need reliable, actionable information. Plex delivers a manufacturing management software solution that is available to the entire organization – in real-time On the Economy of Machinery and Manufactures. The knowledgeable, experienced and strategic management team and Board of Directors at Pioneer guide the company's success Managing Innovation from the Land of Ideas and Talent: The 10-Year Story of SAP Labs India. Demand on the supplying sources is recognized as dependent, and standard MRP logic applies A facility that receives items in large lots, stores them temporarily, and breaks them into smaller lots destined for a variety of locations A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory A program by which specific quality and packaging requirements are met before the product is released Production Functions: Theoretical and Empirical Study. Chief Executive Officer and Co-Founder, Qifang Calvin Chin is Co-Founder and Chief Executive Officer of Qifang, China's leading online student loan service and the first Chinese company recognized by the World Economic Forum as a Technology Pioneer Go Get Your Muda!: 35 Waste-Busting Exhortations from a Professional Process Geek. If managers discover that certain specific actions produce consistently superior results, then it might be beneficial to inform employees of the specific actions that are expected of them, for example, by publishing these desired actions in a procedures manual The Elegant Process: The Guide to Enhanced Quality and Reduced Costs. Index ABC analysis, 194–5 ABCD checklist, 198–9 ACCOR Hotels, 53 Added value in operations management, 14–16, 29 in supply chain, 228–9 Advanced manufacturing technology (AMT), 127–8 Affiliation, 8 Aggregate planning, 277–8, 280–1 Agile manufacturing, 94 practices model, 132–3 Agile production, 120, 131–3 v. mass customization, 131, 133 Agility, 81–2, 83–4 definition, 132 dimensions of, 134 and focus, 74–5 in the future, 363 in the modern era, 29, 80–1 Airlines low-cost, 147 overbooking, case study, 260–3 Southwest Airlines, 333, 349 Alcatel, 387 Amazon.com, 141, 167–8 case study, 394–5 Amend-to-order, 212 American system of work mechanization, 340–2 Aprilia, 221 Archetypal area managers, 272 Area managers, types, 271–3 Assemble-to-order, 281 Asset management, 17 Auctions, online, 238 Averaging capacity, 278, 279 B&Q, 404–5 Banking industry, 147 see also Financial services, case study Batch processes, 105–7, 126 Batch sizes, effect of JIT on, 210 Bell Telephone Laboratories, 293 Benchmarking, 77–8 in quality, 301–3 Body Shop,The, 141 Bottlenecks, 264–5 effect of JIT on, 210 BPR, see Business process re-engineering Brands, 28–9 global, 385 British Nuclear Fuels, supply network innovation programme, 249–50 British Standards, BS 7000, 161 BS 7000, 161 BT, 403–4 Build-to-order (BTO), hybrid/true, 212 Bus modularity, 123 Business mature v. dynamic, 270–1 renewal of, 140–2 vulnerability of, 140 Business managers, 272–3 Business process re-engineering (BPR), 320–2 dangers with, 321–2 definition, 321 Buyer–supplier relationships, 211–14, 242, 243–53 410 Index Cellular production, 130–1 Cessna, case study, 124–5 Change attitudes to, 144–7 change management, 354–5 discontinuous, 155 driving forces for, 30–2 see also Innovation Chase demand, 278, 279, 280 Chevron Texaco, 337 Child labour, 396, 401 China car industry, 259 challenge from, 389 China box, 377–80, 384–5 CI, see Continuous improvement CIM (computer-integrated manufacture), 83, 127, 129 CIRCA (Continuous Improvement Research for Competitive Advantage), 311, 318 Cisco, 396 Closed factory, 394 Commodity Councils, 239 Company-wide quality control (CWQC), 307–8 Compaq, 49, 76–7, 257 Competence, see Core competence Competence trust, 213 Competition, 292 ability to compete, 4 increasing levels of, 323 Competitive advantage CIRCA project, 311, 318 creation of, 52–3 human resources and, 330, 332–9 Competitive factors operations and, 59, 60 process choice and, 116–17 Competitive profiling, 77–8 Competitive strategy impact of flexible manufacturing, 127 see also Strategy Competitor alliances, 53 Complex product systems, 159 Component-sharing modularity, 122 Component-swapping modularity, 122 Computer-aided design/manufacturing (CAD/CAM), 83 Computer-integrated manufacture (CIM), 83, 127, 129 CAD/CAM (computer-aided design/manufacturing), 83 Call centres in India, 222–3 ‘Can’t say no syndrome’, 263 Capability dynamic, 70 employees’, 68 in innovation management, 162–3, 164, 165 operations as distinctive capability, 79–80 Capacity averaging capacity, 278, 279 bottlenecks, 264–5 effect of JIT on, 210 capacity/scheduling interface, 282 challenges, 265–7 chase demand, 278, 279, 280 definition, 259–60 demand management, 279, 280 demand smoothing, 279 designed capacity, 260, 263 effective capacity, 260, 263 fixed capacity, 278 four Vs of, 266 inputs, 264–5 lag capacity, 278, 279 lead capacity, 278, 278–9 level capacity, 278, 279, 279–80 level production, 279 management of, 6, 257–9 aggregate planning, 277–8, 280–1 ‘can’t say no syndrome’, 263 factors affecting complexity of, 266 importance of, 263–4 strategies for, 277–82 summary, 284 in mass services, 274–6 measurement, 260 outputs, 264–5 overbooking, case study, 260–3 in services, 267–74, 274–6 Capital One, 337 Car industry in China, 259 problems with JIT, 214 recycling, 403 ‘three-day car’, 393 in UK, 388 world-wide, 385–6 Cascade strategy, 248–9 Index Conformance, quality of, 290–1 Conspicuous consumption, 30–1 Continuous improvement (CI), 308, 310–20 behavioural patterns in, 315–16 CI journey, 311–13 enablers for, 317 learning, 313–16, 355–6 management of, 317–18 obstacles to, 317 Continuous improvement innovation, 343 Continuous Improvement Research for Competitive Advantage (CIRCA), 311, 318 Continuous processes, 108–9, 267 Continuous reconfiguration, 318–20 Contract manufacturers, 222 Contractual trust, 213 Core competence, 146, 169–70 human resources, 330 operations as, 79–80 Core rigidity, 146 Corporate expansion, role of operations, 377–81 Corporate lobotomy, 321, 330–1 Corporate social responsibility (CSR), 400 Costs inventory management, 192 labour costs, 38, 96, 330–1 management of, 5–6, 17 quality, 287, 294 Craft, transition to strategic operations, 26 Craft era, 25–7 Creative destruction, 168, 395 Critical ratio, 283 Crown Equipment Corp., case study, 215–16 CSR (corporate social responsibility), 400 Current (modern) era, 29–30, 32–3 need for flexibility and agility, 80–1 Customer contact in service operations, 37 Customer processing operations (CPOs), 260, 275–6 Customer relationship management (CRM), 243 Customers location of facilities, 37–8 satisfaction v. loyalty, 303–5 Customization four faces of, 123 ‘pure standardization’ to ‘pure customization’, 121 see also Mass customization Cut-to-fit modularity, 122–3 CWQC (company-wide quality control), 307–8 Data-mining, 84–5 Decisions, see Location, decisions; Strategic decisions Dell Computers, 72, 141, 257–8 Demand, 174–7, 195–6 dependent, 195–6 Demand management, 279, 280 Demand smoothing, 279 Design organization design, 353–4 quality of, 290 Designed capacity, 260, 263 Development human resources, 354–5 network development, 219, 225–6, 249–50 supplier development, 247–9 sustainable, 397, 399 two-way vertical, 249, 250 Disk drives, 174–5, 374 Disrupting technologies, 175–7 Distinctive capability, operations as, 79–80 Division of labour, 340, 341 Drinking glasses, pre-filled, case study, 150 Dynamic capability, 70 Dyson, James, case study, 179–80 Easyjet, 141 Economic order quantity (EOQ), 190–4 Edison,Thomas, 148 Effective capacity, 260, 263 EFQM (European Foundation for Quality Management) model, 302 Emphasis inspection, 296 Employees effect of JIT on, 210 employee share ownership programmes (ESOPs), 351 satisfaction and capability, 68 see also Human resources management Enterprise resource planning (ERP), 83, 203–6 Entrepreneurial area managers, 272 Environmental issues, 397–405 environmental manager, 401–2 recycling, 402–4 standards, 399–401 supply chain, 404–5 411 412 Index General Motors (GM) automation and, 97–8 environmental issues, 405 market share, 53 market-led, 28 outsourcing, 223 relationships with suppliers, 213 Glass-making, 155 GlaxoSmithKline, 238 Global 500, 19, 21–2 Globalization challenge of global growth, 372–5 impact on operations management, 382–6, 388 investment in global operations, 375, 386–9 service operations and, 375–7 strategic operations and, 386 GM, see General Motors Goodwill trust, 213 Growth, operations strategy for, 389, 390 Guild system, 292, 340 Harley-Davidson, 143 Hawthorne experiments, 343 Hewlett Packard, 162–3, 220–1, 374 Holism, 75, 75–7 Honda, 48–9, 374 Hoover, 148 Hotel chains case study, 276–7 expansion, 384 Human relations school of management, 343 Human resources management, 7–8, 17, 329–70 commitment to people as strategic resources, 349–50 competitive advantage and, 330, 332–9 cost-cutting initiatives, 330–1 current good practice, 347–8 development, 354–5 enabling structures, 351, 352–4 future directions, 361–3 importance of human resources, 330, 331, 332–9 mass production era, 343–4 organizational learning and, 359–61 reward systems, 350, 351 shared involvement, 356–9 shared purpose, 350–2 in strategic operations, 348 Environmental soundness, 398–9 EOQ (economic order quantity), 190–4 ERP (enterprise resource planning), 83, 203–6 Ethical concerns, 400 European Foundation for Quality Management (EFQM) model, 302 Expansion, corporate, 377–81 FAG Kugelfischer, case study, 125 Fashion, 30–1, 32–3 Feedback, 39 Financial services case study, 283–4 see also Banking industry Firm-specific routines, 162–3 Fixed capacity, 278 Fixed layout, 100 Flexibility, 65 in the modern era, 80–1 Flexible manufacturing, 83, 120, 125–6 impact on competitive strategy, 127–31 Flexible manufacturing systems (FMS), 83, 126, 127–8, 130–1 Flexible specialization, 29, 94 Focus, 74–5, 75–7, 220–1 agility and, 74–5 Ford customer choice, 129–30 environmental issues, 405 globalization, 385 intranets, 129 outsourcing, 221 process innovation, 155 production model change, 359–60 Fordism, 28, 341, 359, 374 Foreign investment, 378 Forestry Stewardship Council (FSC), 404 Fortune 500, 19, 371 Franchising, 375 advantages, 269 corporate franchisees, 269 franchisor–franchisee relationships, 273–4 hotel chains, 384 hybrid firms, 376–7 single franchisees (‘mom-and-pop’ operators), 269 FSC (Forestry Stewardship Council), 404 GEC Alsthom, 380–1 General Electric, 388 Index summary, 364–5 training, 345, 354–6 Hybrid process/product cell, 101–2 IBM, 52–3, 145–6, 221–2 Ice industry, 146 Iceberg principle in Service operations, 11 ICI-Zeneca, 171 Import/export gap, 19, 23 Incremental innovation, 156, 157 Industrial Revolution, 292–3, 340 Information-sharing employer/employee, 351–2 purchaser/supplier, 251–2 Information technology (IT), 237–8 Innovation, 94, 140–50 attitudes to, 144–7 demand and, 174–7 discontinuous, management of, 164–74 high involvement, 310, 335–6, 337–8 see also Continuous improvement incremental, 156, 157 influencing factors, 159 involvement, 178 key areas in, 165 knowledge management, 177–8, 334, 361–2 learning from, 158 management of, 151, 161–4 capabilities in, 162–3, 164, 165 key activities in, 160 marketing/operations interface in, 153 models of, 160–1 nature of, 143 operations management and, 150–3 output innovation, 154 partial views of, 152 as a process, 148–9 process innovation, 154, 155, 166 process of, 157–61 product innovation, 154, 155–6, 166 push v. pull strategies, 149 radical, 156, 157, 170, 171 stages in, 157 summary, 180 sustainability, 178–9 transforming industries through, 143–4 types of, 153–7 see also Change; Process technology Intangibility of service products, 35–6 Integration, 8 Intel, 258, 388 International standards ISO 9000, 295, 299–300, 319 ISO 14000 series, 399–400 SA 8000 (UN), 400, 401 Internationalization, see Globalization Internet, 371–2 challenge of, 389–91 design of offers, 391–2 speed of response, 392–3 transparency, 393 Intervention strategy, 248–9 Intranets, 129 Invention, 30, 31, 33, 148–50 see also Innovation Inventory effect of JIT on, 210 management of, see Inventory management obsolescence risk, 191, 193 problems with holding, 191–2, 210 stock-outs, 191–2 Inventory management, 185–7, 189–90 costs, 192 development of strategic importance of, 204 Japanese approach, 189 push v. pull strategies, 205–6, 212 summary, 216–17 Investment foreign investment, 378 in global operations, 375, 386–9 in process technology, 95–9, 137 Investors in People, 335 Involvement in innovation, 178, 310, 335–6, 337–8 shared involvement, 356–9 ISO 9000, 295, 299–300, 319 ISO 14000 series, 399–400 IT (information technology), 237–8 Japanese approach, 381–2 international operations, 381–2 inventory management, 189 lean thinking, 344–6 to manufacturing, 208–9 to quality, 244, 294, 296–8 supplier associations, 231, 251 tiered system, 229–31 see also Just-in-time (JIT) operations 413 414 Index decisions, 6 multi-unit operations, 268 purchasing, 235–40 Lovelock service matrix, 110–11 McDonaldization, 28 McDonald’s, 39–40, 143, 147, 275 Magic Tours, case study, 161 Mainspring Inc., 392 Make-to-forecast (MTF), 212 Make-to-order, 281 Make-to-stock, 281 Management contracting, 375, 384 Mannesman, 171 Manufacturing, definition, 23 Manufacturing eras, 25–30, 93–4, 292 craft era, 25–7 impact on process choice, 119 mass production era, 27–9, 81, 341–2 human resource management, 343–4 quality in, 293 modern (current) era, 29–30, 32–3 transition in, 26, 62 Manufacturing operations, 33–5 changing tasks in, 120 decline in, 24–5 Japanese approach, 208–9 links/contrast with service operations, 34–5, 42 manufacturing/service divide, 18–25 performances, 85–6 strategic challenge, 82–5 technical and strategic concerns in, 54 see also Operations management Manufacturing resource planning (MRPII), 83, 200–1 closed-loop system, 202 hybrid with JIT, 208 MRP as subset of, 201 Manufacturing strategy, 9, 57–9, 60–1 Market niches, 26, 29 Market volatility, 32–3 Marketing, links with operations, 18, 19, 153 Marketing strategy, process choice, 114 Martin Corporation, 298 Marvellous Motors, case study, 323–6 Mass customization, 29, 84, 94, 119–24 v. agile production, 131, 133 basic ways of achieving, 120–1 case study, 124–5 JIT, see Just-in-time (JIT) operations Job processes, 104–5 Job shops, 37 Just-in-case, 193, 216 Just-in-time (JIT) operations, 57–8, 206–9 car industry, problems with, 214 challenges of, 209–15 effect on operations, 210 elimination of waste, 209 hybrid with MRP/MRPII, 208 a pull system, 208 total quality management as prerequisite for, 206 Kaizen, 325, 332, 338, 351 Kanban, 208 Keiretsu networks, 226, 229 Kingfisher Bay resort and village, case study, 405–6 Knowledge management, 177–8, 334, 361–2 Kodak, 147, 170–1, 173 Kyoryokukai, 231, 251 Labour costs, 38, 96, 330–1 division of, 340, 341 Lag capacity, 278, 279 Layout fixed layout, 100 hybrid process/product cell, 101–2 process choice and, 99–100, 112–14 process layout, 100–1 product layout, 102–3 summary, 137 types of, 99–103 Lead capacity, 278, 278–9 Lean production, 29, 94, 345–6, 395–7 Lean supply, 396 Lean thinking, 344–6 Leanness, 81–2 Learning, 354–6 continuous improvement (CI), 313–16, 355–6 organizational learning, 359–61 Level production, 279 Light-bulbs, 144, 148 Light-emitting diodes (LEDs), 144 Lincoln Electric, 349 Line processes, 107–8 Locate-to-order (LTO), 212 Location Index challenges, 124 perceived requirements, 124 Mass production, 155 Mass production era, 27–9, 81, 341–2 human resource management, 343–4 quality in, 293 Mass services, 28 capacity in, 274–6 scheduling in, 274–6 Material requirement planning (MRP), 195–200 ABCD checklist, 198–9 hybrid with JIT, 208 linkages within, 204 as push system, 205 resolving problems of, 201–3 as subset of MRPII, 201 Materials management enterprise resource planning (ERP), 83, 203–6 just-in-time (JIT) management, 206–9 manufacturing resource planning, see Manufacturing resource planning material requirement planning, see Material requirement planning Materials ordering, effect of JIT on, 210 Matsushita, 388 Mechanistic organizations, 353 Mergers, 384 Microprocessors, 31 Microsoft, 388 Mission statements, 15, 48–9 Mix modularity, 123 Modern (current) era, 29–30, 32–3 need for flexibility and agility, 80–1 Modularity, 122–3 ‘Moment of truth’, 11, 185 Monopoly profits, 168 Motorola, 127 MRP, see Material requirement planning MRPII, see Manufacturing resource planning Multi-brand area managers, 272 Multi-unit firms location, 268–9 monitoring quality, 274 operations management, 269–71 Music industry, 143–4 National Health Service (NHS), pharmaceuticals in, case study, 239–40 Net present value (NPV), 96 415 Network development, 249–50 supply networks, 219, 225–6 New United Motor Manufacturing Industry (NUMMI), 97–8, 384 NHS (National Health Service), pharmaceuticals in, case study, 239–40 Nichia, 144 Nissan, 258 case study, 134–6 Nokia, 170 NUMMI (New United Motor Manufacturing Industry), 97–8, 384 Nunca, case study, 253–4 Offers (on Internet), design of, 391–2 Offshoring, 222–3 Online auctions, 238 Onshoring, 223 Open-book negotiation/management, 251–2, 352, 394 Operations as core competence, 79–80 as distinctive capability, 79–80 links with marketing, 153 models of, 11–12 strategic importance of, 1–2 Operations management added value and, 14–16, 29 definitions of, 9–13 in the future, 363, 371–408 challenges for, 372 corporate expansion, 377–81 global growth, 372–5 role of, 406–7 see also Environmental issues; Internet globalization impact, 382–6, 388 service operations, 375–7 history of, 339–47 importance of, 1–2 innovation and, 150–3 innovation management, see Innovation, management link with marketing, 18, 19 manufacturing v. services, 33–5 multi-unit firms, 269–71 responsibilities of operations managers, 16–17 in fast-food market, 2–4, 5 role in corporate expansion, 377–81 services, multi-unit operations, 268–9 416 Index Policies, 231–2 supply policy, 231–5 Policy deployment, 351 Portsmouth Hotel, case study, 276–7 Pre-filled drinking glasses, case study, 150 Preussag, 171 Printing industry, 144–5 Priority management, 282 Process choice (transformation process), 93, 94–5, 103–9 batch processes, 105–7, 126 competitive factors and, 116–17 continuous processes, 108–9 impact of manufacturing eras, 119 job processes, 104–5 layout and, 99–100, 112–14 line processes, 107–8 mapping process, 116, 117–18 marketing strategy and, 114 project processes, 103–4 strategic importance of, 114–15 summary, 137 see also Transformation processes Process innovation, 154, 155, 166 Process layout, 100–1 Process management, 6–7 Process technology, 94–5, 137 human element, 94 investment in, 95–9, 137 Product innovation, 154, 155–6, 166 Product layout, 102–3 Product technology, 94 Production-lining service (service ‘industrialization’), 28, 112–13 Productivity ratio, 63 Products of service organizations, 34–5 intangibility of, 35–6 unit cost, 227 Profiling, competitive, 77–8 Project processes, 103–4 Publishing, 166–7, 170 Purchasing buyer–supplier relationships, 211–14, 242, 243–53 information technology and, 237–8 location, 235–9 process, role of, 235–40 process of, 241–2 Operations management (contd ) strategy, see Operations strategy summary, 42–3 transitions, 25–30 craft era, 25–7 forces that drive change, 30–2 impact on process choice, 119 mass production era, see Mass production era modern (current) era, 29–30, 32–3 Operations strategy, 9, 54–6, 57–9, 83 competitive factors, 59, 60 competitive profiling, 77–8 contribution to firm’s overall strategy, 64–7 for growth, 389, 390 importance of, 59–61 international operations, 383 model of, 13 strategy forming process, 61–4 summary, 86 see also Strategy Optimized Production Technology (OPT), 265 Order-qualifying criteria, 65–7, 116–17, 117–18 Order-winning criteria, 65–7, 116–17, 117–18 Organic organizations, 353 Organization design, 353–4 Organizational congruence, 271, 272 Organizational learning, 359–61 Organizational structures, 352–4 Organizations organic, 353 virtual, 186, 221, 283 Output innovation, 154 Outsourcing, 221–4 Overbooking by airlines, case study, 260–3 Panasonic, 403 Pareto 80-20 effect, 235, 306 Partnership Act 1891, 246 Parts explosion, 196, 197–8 People management, see Human resources management PepsiCo, 258, 270 PEST (Political, Economic, Social and Technical) model, 55 Pharmaceutical groups, mergers, 384 Pharmaceuticals in NHS hospitals, case study, 239–40 Pilkington, 155 Plural processes, 376–7 Index Purchasing ratio, 227 Push v. pull strategies, 205–6, 212 in innovation, 149 Quality, 286–328 benchmarking in, 301–3 as competitive imperative, 288 components of, 291 of conformance, 290–1 costs, 287, 294 current era, 299–301 customer satisfaction v. loyalty, 303–5 definitions of, 289–91 of design, 290 effect of JIT on, 210 historical trends, 292–6 inspection as control mechanism, 293 Japanese approach, 244, 294, 296–8 major developments in, 296 management of, 244 tools and techniques, 306–7 process approach, 301 in service operations, 288–9, 293 measurement of, 38–40 SERVQUAL model, 303–5 stages of development in, 308 strategic quality, 291–2 summary, 326 total quality control, 294 total quality management, see Total quality management Quality assurance (QA), 294–6 supplier quality assurance (SQA), 244, 295 Quality circles (QCs), 298, 309–10, 344 Quality control company-wide (CWQC), 307–8 statistical quality control, 293 total quality control, 294 Radical innovation, 156, 157, 170, 171 Radio frequency identification (RFID), 243–4 Recycling, 402–4 Relationship assessment process (RAP), 246, 247 Relationship Positioning Tool, 245 Response time, 392–3 Restaurants, roadside restaurant chains, case study, 305 Return on capital employed (ROCE) ratio, 63, 64 Return on net assets (RONA), 95 Reverse logistics, 402–3 Reward systems, 350, 351 Roadside restaurant chains, case study, 305 SA 8000 (UN standard), 400, 401 SAP AG (software house), 83, 203 Scheduling capacity/scheduling interface, 282 in mass services, 274–6 methods, 282–3 Schmenner service matrix, 104, 105, 109–10 Screwdriver plants, 378 Sectional modularity, 123 Self-service, 83, 84 Service operations, 33–5 back-of-house/front-of-house, 113, 268 capacity in, 267–74, 274–6 concept, 15–16, 41 customer contact, 37 customer participation, 37 delivery system, 42, 67–8 globalization and, 375–7 growth in, 362 iceberg principle, 11 image, 41 labour costs, 38 life cycle of firms, 269–70 link with marketing, 18, 19 links/contrast with manufacturing, 34–5, 42 location of facilities, 37–8 management system, 40–2 manufacturing/service divide, 18–25 market segment, 40 mass services, 28, 274–6 matrices used in, 104, 105, 109–11 model of, 20 multi-unit firms, 268–9, 269–71, 274 production-lining service (service ‘industrialization’), 28, 112–13 products, 34–5 intangibility of, 35–6 profiling within, 78 quality in, 288–9, 293 measurement of, 38–40 scheduling, 274–6 service concept, 15–16, 41 service package, 35, 41–2 service profit chain, 67–8 service variety, 36–7 417 418 Index competitive advantage creation, 52–3 competitor alliances, 53 content of, 51, 55–6 decisions, see Strategic decisions flexible manufacturing impact on, 127–31 four stages of, 58 framework, 65, 66 for growth, 389, 390 implementation, present-day problem, 63–4 intervention strategy, 248–9 long-term implications, 53–4 manufacturing strategy, 9, 57–9, 60–1 market-led, 69, 70, 71 mission statement, 15, 48–9 model of, 50–1 in the modern era, 29 operations, see Operations strategy process of, 51, 55, 56 purchasing process, 235–40 resource-based, 50, 69, 70, 71 reverse marketing approach, 50 role of senior management, 52, 62 sourcing strategy, 234–5 supply strategy, 231–4 basis for, 240 formation of, 231 technological aids, 83–4, 127–9 vital role of, 52–4 see also Operations strategy Structures, organizational, 352–4 Suggestion schemes, 325–6, 335–8, 339, 345–6 Sunnyside Up, case study, 2–4 Superquinn, 391–2 Supplier assessment, 244–6, 248 development of, 246–51 Supplier associations, 231, 251 Supplier–buyer relationships, 211–14, 242, 243–53 Supplier development, 247–9 cascade strategy, 248–9 intervention strategy, 248–9 Supplier quality assurance (SQA), 244, 295 Supplier relationship management (SRM), 243–53 information sharing, 251–2 policy and strategy, 252–3 shared responsibility, legal implications, 246 supplier assessment, 244–6, 248 development of, 246–51 supplier–buyer relationships, 211–14, 242, 243–53 Service operations (contd ) strategic challenge, 82–5 see also Franchising; Operations management Service profit chain, 67–8 SERVQUAL model, 303–5 Share ownership programmes, employees’ (ESOPs), 351 Shared involvement, 356–9 Siemens, 388 Silos, 236 Single digit set-up, 208–9 Six Sigma, 288, 307 SmithKline Beecham, see GlaxoSmithKline Sony Walkman, 151 Sourcing strategy, 234–5 Southwest Airlines, 333, 349 Specialization, flexible, 29, 94 Speed of response, 392–3 Springfield ReManufacturing Company, 352 SQA (supplier quality assurance), 244, 295 SRM, see Supplier relationship management Standardization,‘pure standardization’ to ‘pure customization’, 121 Standards BS 7000, 161 environmental, 399–401 ISO 9000, 295, 299–300, 319 ISO 14000 series, 399–400 SA 8000, 400, 401 world-class, 22, 292 Statistical process control (SPC), 296, 298 Statistical quality control, 293 Strategic challenge, 82–5 Strategic decisions, 73 consequences of, 53 long-term implications, 53–4 process choice, 94–5 v. tactical decisions, 54, 73 Strategic dissonance, 76 Strategic operations globalization and, 386 human resources, case study, 364 transition from craft, 26 Strategic quality, 291–2 Strategic resonance, 69–73 creating and sustaining, 72–3 Strategy, 25, 46–8 for capacity management, 277–82 cascade strategy, 248–9 Index Suppliers, tiers, 229–31 Supply build-up of value and costs, 227–8 management of, see Supply management nature of, 224–6 networks, 219, 225–6 outsourcing, 221–4 process of, 241–2 Supply base, 241–2 rationalization of, 230–1 structuring of, 229–31 Supply chains, 188, 211, 219–20, 225–6 added value in, 228–9 environmental concerns, 404–5 management of, 281 Supply management, 219–20, 227–35 case study, 253–4 and focus, 220–1 objective, 227–9 open-book negotiation, 251–2, 394 purchasing, 235–40 location, 235–40 sourcing strategy, 234–5 summary, 254 supplier development, 247–9 supply base, 241–2 rationalization of, 230–1 structuring of, 229–31 supply policy, 231–5 supply strategy, 231–4 basis for, 240 formation of, 231 see also Supply Sustainability, 178–9, 397 Sustainable development, 397, 399 Sustaining technologies, 175–7 Taco Bell, case study, 115–16 Teamworking, 343, 349, 356–9 Technological aids, 83–4, 127–9 Technological discontinuities, 172–4 Technology/ies convergence of, 33 disrupting, 175–7 human element, 94, 97, 98, 99 management of, 7, 94–5 process technology, 94–5, 95–9, 137 product technology, 94 sustaining, 175–7 419 Technophilia, 77 Telephones, 155–6 3M, 162, 170, 288 human resource management and operations at, 336 Tiers, 229–31 TopsyTail, 221 Total productive maintenance (TPM), 324–6 Total quality control, 294 Total quality management (TQM), 57–8, 296, 298, 307–9 approaches to, 318–19 continuous reconfiguration, 318–20 future developments, 322–3 planned, 319 prerequisite for JIT, 206 problems with, 320–1 top management commitment, 308 training TQM, 319 transformational, 319 vision-led, 318 Toyota, 29, 128, 178, 208–9 just-in-time, 206–8 ToysRUs.com, case study, 185 TPM (total productive maintenance), 324–6 TQM, see Total quality management Training, 345, 354–6 Transformation processes, 9–10, 11, 12 see also Process choice Transparency, 393–5 open-book negotiation, 251–2, 394 value transparency, 252 Transplants, 378, 384 Travel industry, Internet use, 393 Trend Micro, 386 Trust, in buyer–supplier relationships, 213 Two-way vertical development, 249, 250 Unipart, 356 Vacuum cleaners, case study, 179–80 Value added value, 14–16, 29, 228–9 management of, 5–6 Value chain management, 186–7 Value chain model, 14–15 Value transparency, 252 Variability, law of, 267 420 Index Western Electric Company, 343 Workforce effect of JIT on, 210 see also Employees; Human resources management World-class standards, 22, 292 XYZ Systems, case study, 364 Yield management, 276 case study, 276–7 Vertical integration, 13, 187–9 case study, 215–16 Virtual organizations, 186, 221, 283 Volatility of market, 32–3 Wage and status differentials, 350 Wal-Mart, 243–4 Waste categories of, 82, 207 elimination of, 6, 209 Wealth, 30–1, 32