Operations management astreamline 3d course for student and business people

title author publisher isbn10 | asin print isbn13 ebook isbn13 language subject publication date lcc ddc subject cover next page > cover next page > : : : : : : : : : : : < previous page page_i next page > Page i Operations Management Jae K Shim, Ph.D College of Business Administration California State University, Long Beach Joel G Siegel, Ph.D Queens College of the City University of New York < previous page page_i next page > < previous page page_ii next page > Page ii Copyright © 1999 by Barron's Educational Series, Inc All rights reserved No part of this book may be reproduced in any form, by photostat, microfilm, xerography or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the copyright owner All inquiries should be addressed to: Barron's Educational Series, Inc 250 Wireless Boulevard Hauppauge, New York 11788 http://barronseduc.com Library of Congress Catalog Card No 98-27825 International Standard Book No 0-7641-0510-8 Library of Congress Cataloging-in-Publication Data Shim, Jae K Operations management / Jae K Shim, Joel G Siegel p cm (Business review series) Includes index ISBN 0-7641-0510-8 Production management I Siegel, Joel G II Title III Series TS155.S4535 1999 658.5dc21 98-27825 CIP PRINTED IN THE UNITED STATES OF AMERICA 98765432 < previous page page_ii next page > < previous page page_iii next page > Page iii Contents Preface viii The Scope of Operations and Production Management General Description of Production and Operations Systems Manufacturing Operations versus Service Operations Operations Strategy Productivity Total Quality Management and Quality Costs Continuous Improvement KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Decision Making: Concepts and Tools Decision Making under Uncertainty Decision Matrix 17 20 20 21 21 22 26 27 28 Decision Trees Modeling a Real-Life System Linear Programming KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Forecasting Who Uses Forecasts? Forecasting Methods Selection of Forecasting Method The Qualitative Approach Steps in the Forecasting Process Moving Averages and Smoothing Methods Regression Analysis Regression Statistics Use of Computer Software for Regression Multiple Regression 31 35 38 50 50 51 51 56 65 66 67 67 68 69 70 78 81 84 85 85 Time Series Analysis and Classical Decomposition 94 Computer Software for Forecasting 95 Evaluation of Forecasts < previous page page_iii next page > < previous page page_iv next page > Page iv KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Product Planning, Process Selection, and Capacity Planning Product Design Interaction between Product Design and Production Costs Basic Product Design Alternatives Quality Function Deployment Processes and Process Planning General- and Special-Purpose Equipment Automation Process Planning Product Analysis MakeBuy Analysis Process Selection Reliability and Maintenance 98 98 99 99 103 114 116 117 118 119 119 121 122 124 125 129 130 131 Capacity Planning Evaluating Alternative Capacities KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Facility Location Factors in Location Site Selection Multiplant Location Special Considerations in Location Decisions Location Decisions KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Design of the Work System and Work Measurement 139 142 145 145 145 146 149 155 156 156 157 157 158 169 169 169 170 172 179 180 Work and Job Design 185 Work Measurement and Production Standards 187 Work Measurement Systems 194 Learning Curve < previous page page_iv next page > < previous page page_v next page > Page v KNOW THE CONCEPTS Do You Know the Basics? Terms for Study Practical Application ANSWERS Facilities Design and Layout Layout of Facilities Material-Handling Methods Classical Layout Types Minimization of Material-Handling Cost Systematic Layout Planning Computerized Plant Layouts Product Layout and Line Balancing Balancing Techniques A Plant Layout Decision KNOW THE CONCEPTS Do You Know the Basics? Terms for Study 197 197 198 198 200 205 206 207 207 211 211 213 214 218 221 223 223 224 < previous page page_482 next page > Page 482 closed loop, 316 computer program, 310313 inventory decision rules, 315 outputs, 314315 versus Just-in-time manufacturing, 329330 Materials, 118119 control, handling: costs, minimizing, 211 methods, 207 Mathematical models, 26, 3536 Maximum cycle time, 216 Maxmax, 30 Maxmin, 30 Mean: absolute deviation, 65, 95 squared error, 95 time between failures, 132 time to repair, 132 Measures, 12 performance, productivity, 89 Minimum possible cycle time, 216 Models, 26, 3538 critical path method, 373377 decision trees, 32 descriptive, 38 graphical, 3637 management, 37 coefficients, 244 mathematical, 3536 narrative, 35 optimization, 26, 37 physical, 35 prescriptive, 38 program evaluation and review technique (PERT), 37 project: planning, 37 scheduling, 362 quantity discount, 268 queuing notations, 407410 simulation, 3738 statistical, 37 Modified distribution method, 166 Modular design, 115, 117 Monte Carlo simulation, 287289, 390, 396 Motion study, 179 Moving average, 65, 7073, 8990 Multiplant location, 157 Multiple: channel line, 390 multiple phase case, 394395 single phase case, 394 regression, 85 sampling, 439 N Narrative models, 35 Net present value, 342, 347348 Network construction, rules, 364368 Nodes, 361 decision tree, 3133 Noise, 184 Nonnegativity, 48 Normal time, 373 Northwest corner rule, 162163 Numerical control, 122123 O Open orders, 310 Operating characteristic curve, 422, 431436 Operations: manufacturing, 56 process charts, 127, 179 scheduling, 247255 loading, 248251 assignment method, 249251 Gantt charts, 248 sequencing, 251255 sequencing: Johnson's rule, 254255 priority rules, 251254 scope, 125 service, 56 strategy, Opportunity costs, 4950 Optimization models, 26, 37 Ordering costs, 269, 324325 Organization, Outputs, P Parallel system, 135136 Pareto analysis, 17, 423424 Parts, joining, 118 Payback period, 342, 346 Payoff table, 2829 PDCA cycle, 17 Percentage defective charts, 440441 Perfect information, expected value, 2931 Performance: measures, rating, 186 Physical models, 35 Planned receipts, 310311 Plant layout decision, 221223 < previous page page_482 next page > < previous page page_483 next page > Page 483 Poisson distribution, 390, 396, 398406 Prediction confidence interval, 8384 Prescriptive models, 38 Present value of money, 344 Preventative maintenance, 137 Prevention costs, 1314 Prices, shadow, 4950 Priority rules, 231, 251254 Process: business reengineering, 1, 20 forecasting, 6970 flow chart, 114, 127128 layout, 205, 209210 planning, 115, 124 reliability, 134135 selection, 114154 statistical control, 17 Processes, 118121 assembly, 120121 changing shape or form, 120 chemical, 120 clerical and information, 121 transport, 121 Producer's risk, 422 Product: analysis, 115, 125129 assembly charts, 125126 flow diagrams, 126129 Gozinto charts, 125 operation process charts, 127 design, 115117 alternatives, 118119 joining of parts, 118 materials, 118119 parts, joining, 118 processes, 118121 reduced processing, 119 simplified designs, 118119 tolerances, 118 functional design, 116 production design, 116117 modular design, 117 simplification, 117 standardization, 116 layout, 207208, 210, 214217 planning, 114154 automation, 122124 equipment, 121122 Production: costs, 117 design, 116117 planning, 6, 232233 standards, 185187 determination, 186 uses, 185 systems, 1, 45 Productivity, measures, 89 Program evaluation and review technique (PERT), 361, 363373 critical path steps, 368372 rules of network construction, 364368 summary, 372373 Project: management, 361389 computer software, 378 planning models, 37 scheduling models, 362 Q Quality, 1, 67 acceptable level, 10 assurance, 422453 acceptable outgoing quality level, 422 acceptance sampling, 430438 assignable causes, 422 average quality of outgoing lots, 436438 computer software, 443 consumer's risk, 422 control chart, 422 attributes, 440443 means, 426428 ranges, 428430 defects-per-unit charts, 442443 double sampling, 439 multiple sampling, 439 operating characteristic curve, 422, 431436 Pareto analysis, 423424 percentage defective charts, 440441 producer's risk, 422 sampling plans, 438440 sequential sampling, 439440 state of statistical control, 425 statistical quality control, 424430 awards, 18 certifications, 18 circles, 17 control: computer software, 443 Taguchi method, 2, 1820 costs, 9, 1315 optimal, 1416 definition, 10 < previous page page_483 next page > < previous page page_484 next page > Page 484 function deployment, 119 loss function, 1819 management, total, Quantity discount model, 268 Queue, 390 discipline, 390, 396 Queuing, 390421 analysis, 392393 notations, 397410 finite source model, 407410 multiple channel waiting line, Poisson arrivals and exponential service times, 404406 single channel waiting line, Poisson arrivals: constant service times, 401402 exponential service times, 398401 service times not specified, 403404 problems, structure, 394395 theory, 390 R Random component, 86 Ratings: as measurement, 186187 performance, 186 Recognition, importance of, 13 Reduced processing, 119 Regression: analysis, 65, 7881 computer software, 8485 multiple, 85 simple, 78 statistics, 8183 coefficient of determination, 8183 correlation coefficient, 8182 prediction confidence interval, 8384 standard error of the estimate, 8384 Reliability, 115, 131136 measures, 132136 Reorder point, 268, 271 Rewards, importance of, 13 Risk, decision making, 26 Robotry, 123 Rough cut capacity planning, 231232, 246247 S Safety stock, 268 determination, 279281 Sales force polling, 69 Sample size, determining, 190191 Sampling plans, 438440 Scheduled receipts, 310 Scheduling, 39, 232 Search decision rule, 244246 Seasonal component, 86 Semiautomatic systems, 182 Sequencing, 232, 251255 Johnson's rule, 254255 priority rules, 251254 Sequential sampling, 439440 Series system, 135136 Service: level, 268 operations, 56 rate, 390, 396 Shadow prices, 26, 4950 Shortage costs, 269 Shortest processing time (SPT), 232 Simple regression, 65, 78 Simplex method, 27, 4448 Simplification, 117 Simplified designs, 118119 SIMSCRIPT, 390 Simulation, 27, 286289, 390 models, 3738 Single channel, 390 multiple phase case, 394 single phase case, 394 Site selection, 156157 Slack, 361 Standard: data, 192193 for job families, 193 error of the estimate, 8384 Standardization, 116 Standards, 12 determination, 186, 191192 predetermined, 192 uses, 185 State of statistical control, 425 Statistical: models, 37 process control, 17 quality control, 424430 Stepping stone method, 166168 Stockout costs, 269 incorporation, 282283 Stopwatch methods, 187190 Straight line layout, 207208 Supplier certification, 18 Supply chain management, 1, System: components, 309310 logic, 307309 Systematic layout planning, 205, 211213 < previous page page_484 next page > < previous page page_485 Page 485 Systems: continuous, intermittent, production, 1, 45 T Tactual displays, 183 Taguchi method of quality control, 2, 1820 Tardiness, 232 Technical estimates, 193 Technology, Temperature, 184 Theory of constraints (TOC), 115 Time: bucket, 305 series analysis, 8586 standard, 179 study, 179, 187190 value of money, 343344 Tolerances, 118 Total quality: costs, 14 management, 2, 913 elements, 1213 principles, 11 Tracking signals, 9697 Training, commitment to, 1213 Transport processes, 121 Transportation linear programming, 155, 161169, 241243 degeneracy, 168 modified distribution method, 166 northwest corner rule, 162163 stepping stone method, 166168 unbalanced problems, 168 Vogel's approximation method, 163165 Trend: analysis, 65, 86 component, 86 Trial and error method, 234239 U Unbalanced problems, 168 Uncertainty, decision making, 2728, 30 Uniform output rate plan, 236 Universal standard data, 193 Utilization, 140 factor, 390 V Value: analysis, 115, 330 engineering, 330 Variable output rate plan, 237 Vertical integration, Visual displays, 183 Vogel's approximation method, 163165 W Waiting lines, 390421 analytical models, 395397 computer simulation, 411 problems, 394395 Weighted moving average, 72 Work: design, 180185 concepts, 181182 automatic systems, 182 manual systems, 182 semiautomatic systems, 182 human manipulative activities, 183184 control activities, 183184 manual activity, 184 information input, 183 auditory displays, 183 tactual displays, 183 visual displays, 183 man machine systems, 180181 environment, 184185 airflow, 184 contaminants, 185 hazards, 185 humidity, 184 light, 185 noise, 184 temperature, 184 force, measurement, 179204 sampling, 179, 190192 system, design, 179204 < previous page page_485