Brief Contents

Copyrighted material – 9781137525789 BRIEF CONTENTS Part 1: Introduction to Operations Management 1 1. Operations Management 3 2. Operations Performance 36 3. Operations Strategy 70 Part 2: Structural Issues 107 4. Facilities 109 5. Capacity 135 6. Process Design and Technology 164 7. The Supply Network 201 Part 3: Infrastructural Issues 231 8. Planning and Control 233 9. Inventory Management 264 10. Lean Operations 293 11. Quality Management 321 12. People in Operations Management 362 13. Risk, Resilience and Recovery 396 14. Operations Improvement 424 15. Innovation in Operations Management 457 Part 4: The Future of Operations Management 489 16. Emerging Challenges in Operations 490 vii Copyrighted material – 9781137525789 Copyrighted material – 9781137525789 CONTENTS Tables and Figures xvi Internationalization theories 21 Preface xviii Vernon’s product cycle theory 21 Dunning’s eclectic theory 21 Letter to the Student xx Stage theories 22 Letter to the Lecturer xxi THE INTERNATIONALIZATION OF Case Study Grid xxiii SERVICES 23 Tour of the Online Resource Separated services 24 Centre xxvi Demander-located services 25 About the Author xxvii Provider-located services 25 Peripatetic services 25 Guided Tour of the Book xxviii CHALLENGES OF OPERATING Author’s Acknowledgements xxx INTERNATIONALLY 27 Publisher’s BENEFITS FROM OPERATING Acknowledgements xxxi INTERNATIONALLY 28 Part 1: Introduction to 2. Operations Performance 36 Operations Management 1 INTRODUCTION 37 PERFORMANCE OBJECTIVES 38 1. Operations Management 3 PERFORMANCE MEASUREMENT 42 INTRODUCTION 4 PERFORMANCE MEASURES 44 THE TRANSFORMATION MODEL 6 Economy 44 DIFFERENT TYPES OF OPERATIONS 7 Efficiency 45 SERVICE OPERATIONS 9 Effectiveness 47 THE CHANGING NATURE OF DEVELOPMENTS IN PERFORMANCE OPERATIONS MANAGEMENT 13 MEASUREMENT 48 Moving beyond the factory 13 PERFORMANCE MEASUREMENT SYSTEMS 49 The increased importance of the supply network 14 PERFORMANCE STANDARDS 51 The growing importance of The organization’s past services 14 performance 51 THE INTERNATIONAL CONTEXT FOR The organization’s own targets 52 OPERATIONS MANAGEMENT 17 Competitors’ performance 52 Technological 17 Best practice 53 Political 18 Market requirements 53 Sociocultural 20 BENCHMARKING 54 Economic 20 THE TRIPLE BOTTOM LINE 57 ix Copyrighted material – 9781137525789 Copyrighted material – 9781137525789 x CoNtENts LOCATION AND OPERATIONS Part 2: Structural Issues 107 PERFORMANCE 61 4. Facilities 109 3. Operations Strategy 70 INTRODUCTION 110 INTRODUCTION 72 LOCATION DECISIONS 110 THE NATURE OF STRATEGY 72 Weighted scoring 113 Organizational-level strategy 73 Centre of gravity 114 Business-level strategy 73 THE SCALE AND SCOPE OF Functional-level strategy 74 OPERATIONS FACILITIES 119 OPERATIONS MANAGEMENT AND THE STRATEGIC ROLE AND PURPOSE STRATEGY 75 OF OPERATIONS FACILITIES 121 OPERATIONS STRATEGY 77 The primary strategic OPERATIONS STRATEGY – PROCESS 80 reason for the facility 122 Top-down 80 The level of competence Bottom-up 81 on-site 122 Market-led 82 THE CONFIGURATION OF Operations-led 82 OPERATIONS FACILITIES 124 Approaches to configuring OPERATIONS STRATEGY – CONTENT 83 international operations 124 Structure 83 Generic international Infrastructure 84 configurations 125 INTERNATIONAL OPERATIONS Configuring of international STRATEGIES 86 facilities 127 Market access strategy 86 Resource-seeking strategy 87 5. Capacity 135 THE INTERNATIONALIZATION OF INTRODUCTION 136 OPERATIONS MANAGEMENT AND THE TRANSFORMATION MODEL 88 THE MEANING OF CAPACITY 137 Inputs 89 THE MEASUREMENT OF CAPACITY 139 The process 89 FORECASTING DEMAND 141 Outputs 91 CAPACITY TIMING DECISIONS 143 ENTERING FOREIGN MARKETS 92 Capacity leads demand 143 Direct export 92 Capacity matches demand 144 Joint venture 93 Capacity lags demand 144 Establish a sales subsidiary 94 CAPACITY INCREMENTS 146 Establish a production facility 94 CAPACITY MANAGEMENT 148 INTERNATIONAL OPERATIONS Level capacity 148 AND BUSINESS STRATEGY 97 Chase demand 150 Global sourcing 98 Demand management 152 Location 98 MANAGING CAPACITY IN Network effects 98 CUSTOMER SERVICE OPERATIONS 153 Competition 99 Yield management 153 Copyrighted material – 9781137525789 Copyrighted material – 9781137525789 CoNtENts xi Queuing theory 154 THROUGHPUT 191 THE DYNAMICS OF CAPACITY QUEUING SYSTEMS 192 MANAGEMENT 157 Single line, single server 192 Single line, multiple servers 192 6. Process Design and Multiple lines, multiple servers 192 Technology 164 The psychology of queuing 192 INTRODUCTION 166 DIFFERENT PROCESS 7. The Supply Network 201 TECHNOLOGIES 167 INTRODUCTION 202 Material-processing THE IMPORTANCE OF technologies 167 PURCHASING 204 Customer-processing SUPPLY NETWORKS 204 technologies 170 THE CONFIGURATION OF THE Information-processing SUPPLY NETWORK 206 technologies 172 THE COORDINATION OF THE DECISION-MAKING ABOUT SUPPLY NETWORK 209 TECHNOLOGY 174 COLLABORATIVE PLANNING, THE CRUCIAL ROLE OF ICT 178 FORECASTING AND Localized exploitation 178 REPLENISHMENT (CPFR) 212 Internal integration 178 The SCOR model 213 Business process redesign 178 THE OUTSOURCING DECISION 213 Business network redesign 179 GLOBAL SOURCING 217 Business scope redefinition 179 RELATIONSHIPS WITH SUPPLIERS 221 TECHNOLOGY ADOPTION SINGLE VERSUS MULTI-SOURCING 223 STRATEGIES 179 TECHNOLOGY TRANSFER 180 Part 3: Infrastructural PROCESS CHOICE 183 Issues 231 Project 183 Jobbing 184 8. Planning and Control 233 Batch 184 INTRODUCTION 234 Mass 184 THE PRINCIPLES OF PLANNING Continuous 184 AND CONTROL 235 Professional services 185 THE ACTIVITIES OF PLANNING Mass services 185 AND CONTROL 238 Service shop 185 Strategic operations planning 238 THE LAYOUT OF PROCESS Aggregate planning 239 EQUIPMENT 187 Master production scheduling 240 Fixed position layout 188 Activity scheduling 240 Process layout 189 Expediting 246 Product layout 190 MEETING CUSTOMER DEMAND 249 Group (or cellular) layout 190 P:D RATIOS 252 Copyrighted material – 9781137525789 Copyrighted material – 9781137525789 xii CoNtENts PLANNING AND CONTROL Simplicity in equipment and PHILOSOPHIES 253 layout 311 Supply-push 253 Total quality 312 Demand-pull 254 Product design 312 COMPUTER-BASED PLANNING Lean supply 312 AND CONTROL 255 Total people involvement 313 OPTIMIZED PRODUCTION Total productive maintenance 313 TECHNOLOGY (OPT) 256 LEAN IN SERVICES 314 9. Inventory Management 264 LEAN AS A BEST PRACTICE MODEL 315 INTRODUCTION 265 11. Quality Management 321 TYPES OF INVENTORY 265 INTRODUCTION 322 THE ROLE OF INVENTORY 266 THE EVOLUTION OF QUALITY TYPES OF DEMAND 270 IDEAS 323 MANAGING INDEPENDENT W. Edwards Deming 323 DEMAND INVENTORY 270 Joseph Juran 323 The order quantity decision 270 Armand Feigenbaum 323 The order timing decision 272 Philip Crosby 324 INVENTORY LEVEL ANALYSIS 275 Genichi Taguchi 324 MANAGING DEPENDENT DEMAND INVENTORY 278 Kaoru Ishikawa 324 THE CUSTOMER SERVICE Quality inspection 324 ANALOGY 285 Quality control 325 Quality assurance 326 10. Lean Operations 293 Total quality management INTRODUCTION 294 (TQM) 326 LEAN PRINCIPLES 295 Quality in service operations 328 SYNCHRONIZATION 296 DEFINING QUALITY 329 LEAN AS A PLANNING AND The specification: ‘What can CONTROL SYSTEM 297 I expect when I buy Line balancing 297 the product?’ 331 Kanban 299 Conformance to specification: ‘Will it do what I expect?’ 332 LEAN AS AN INVENTORY CONTROL SYSTEM 301 Reliability: ‘Will it continue to do what I expect?’ 332 WASTE ELIMINATION 304 Delivery: ‘When can I have it?’ 332 CONTINUOUS IMPROVEMENT 305 Price: ‘How much do I have THE INVOLVEMENT OF ALL to pay?’ 332 EMPLOYEES 305 THE QUALITY GAPS MODEL 333 LEAN TECHNIQUES AND PRACTICES 309 Gap 1: the gap between Smooth flow 309 customers’ expectations and Focus on set-ups 310 management’s perceptions of Standardized procedures 311 customers’ expectations 333 Copyrighted material – 9781137525789 Copyrighted material – 9781137525789 CoNtENts xiii Gap 2: the gap between GROUP WORKING 379 management’s perception of Virtual teams 381 customers’ expectations and Factors affecting team the product specification 333 effectiveness 381 Gap 3: the gap between the Workforce diversity 384 specification and the customers’ experience of the CULTURAL CONTEXT 384 product 334 Organizational culture 385 Gap 4: the gap between the National culture 387 customers’ experience and the OTHER NATIONAL CONTEXTUAL external communications to FACTORS 390 customers 334 Gap 5: the gap between the customers’ expectations and 13. Risk, Resilience and the customers’ experiences 334 Recovery 396 MEASURING QUALITY 336 INTRODUCTION 397 Operations measures 336 RISK 399 Financial measures 336 Internal failures 400 Customer measures 340 External failures 401 STATISTICAL QUALITY Detecting failure 403 CONTROL 340 Analysing failure 405 Acceptance sampling 340 Failure patterns 407 Statistical process control Measuring failure 407 charts 341 Learning from failures 409 THE ISO 9000 SERIES QUALITY RESILIENCE 410 MANAGEMENT SYSTEM 345 Improved process design 410 ISO 9000 AND TQM 348 Redundancy 410 QUALITY AWARDS 349 Fail-safing 411 SIX SIGMA 351 Maintenance of equipment 411 GLOBAL DIFFERENCES IN QUALITY MANAGEMENT 353 Total productive maintenance (TPM) 413 12. People in Operations RECOVERY 414 Management 362 SERVICE RECOVERY 417 INTRODUCTION 363 JOB DESIGN 364 14. Operations Scientific management 364 Improvement 424 Behavioural approaches 369 INTRODUCTION 425 REWARD AND REMUNERATION 374 THE PERFORMANCE GAP 425 Levels of pay 374 The scale and scope of the Performance-related pay 375 performance gap 426 Managing employee Setting priorities for

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