Operations Management Seventh Edition William J Stevenson Rochester lnstitute of Technology Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto This Book 1s Dedicated to You McGraw-Hill Higher Education A Division of The McGraw-Hill 'l:Z Companies OPERATIONS MANAGEMENT Earlier editions titled Production/Operations Management Published by McGraw-HilllIrwin, an imprint of The McGraw-Hill Companies, Inc 1221 Avenue of the Americas, New York, NY, 10020 Copyright ©2002, 1998, 1995, 1992, 1988, 1985, by The McGraw-Hill Companies, Inc All rights reserved No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free domestic international paper FGRlFGR 1 FGRlFGR ISBN 0-07-244390-1 Publisher: Brent Gordon Executive editor: Richard T Hercher, Jr Senior developmental editor: Wanda J Zeman Marketing manager: Zina Craft Senior project manager: Jean Lou Hess Production supervisor: Debra Sylvester Coordinator freelance design: Gino Cieslik Photo research coordinator: Ira Roberts Photo researcher: Connie Gardner Supplement coordinator: Cathy Tepper Media technology producer: Greg Bates Cover photos: © PhotoDisc Interior design: Ellen Pettengell Design Compositor: GAC / Indianapolis Typeface: 10.5/12 Goudy Printer: Quebecor World Fairfield Inc Library of Congress Card Catalog number: 2001091412 INTERNATIONAL EDITION ISBN 0-07-112129-3 Copyright ©2002 Exclusive rights by The McGraw-Hill This book cannot be re-exported The International www.mhhe.com Companies, Inc for manufacture from the country to which it is sold by McGraw-Hill Edition is not available in North America and export OPERATIONS MANAGEMENT Bowersox, Closs, and Cooper Supply Chain Logistics Management First Edition Chase, Aquilano, and Jacobs Operations Management for Competitive Advantage Ninth Edition Chu, Hottenstein, and Greenlaw PROS 1M for Windows Third Edition • ">" Cohen and Apte Manufacturing Automation First Edition Davis, Aquilano, and Chase Fundamentals of Operations Management Third Edition Dobler and Burt Purchasing and Supply Management Sixth Edition Flaherty Global Operations Management First Edition Fitzsimmons and Fitzsimmons Service Management: Operations, Strategy, Information Technology Third Edition Gray and Larson Project Management: The Managerial Process First Edition Hill Manufacturing Strategy: Text & Cases Third Edition Hopp and Spearman Factory Physics Second Edition Jacobs and Whybark Why ERP: A Primer on SAP Implementation First Edition Knod and Schonberger Operations Management: Meeting Customers' Demands Seventh Edition Lambert and Stock Strategic Logistics Management Third Edition Leenders and Fearon Purchasing and Supply Chain Management Eleventh Edition Moses, Seshadri, and Yakir HOM Operations Management Software for Windows First Edition Nahmias Production and Operations Analysis Fourth Edition Nicholas Competitive Manufacturing Management First Edition Olson Introduction to Information Systems Project Management First Edition Pinedo and Chao Operations Scheduling First Edition Sanderson and Uzumeri Managing Product Families First Edition Schroeder Operations Management: Contemporary Concepts and Cases First Edition Simchi-Levi, Kaminsky, and Simchi-Levi Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies First Edition Sterman Business Dynamics: Systems Thinking and Modeling for a Complex World First Edition Stevenson Operations Management Seventh Edition Vollmann, Berry, and Whybark Manufacturing Planning and Control Systems Fourth Edition Zipkin Foundations of Inventory Management First Edition QUANTITATIVE METHODS AND MANAGEMENT SCIENCE Alwan Statistical Process Analysis First Edition Bodily, Carraway, Frey, Pfeifer Quantitative Business Analysis: Casebook First Edition Bodily, Carraway, Frey, Pfeifer Quantitative Business Analysis: Text and Cases First Edition Bonini, Hausman, and Bierman Quantitative Analysis for Business Decisions Ninth Edition Hesse Managerial Spreadsheet Modeling and Analysis First Edition Hillier, Hillier, Lieberman Introduction to Management Science: A Modeling and Case Studies Approach with Spreadsheets First Edition v Preface The material in this book is intended as an introduction to the field of operations management It is suitable for both undergraduate and graduate students The field of operations management is dynamic, and very much a part of many of the good things that are happening in business organizations The book is intended to be interesting and informative Much of what you learn will have practical application The subject matter repre,sents a blend of concepts from industrial engineering, cost accounting, general management, quantitative methods, and statistics Operations activities, such as forecasting, choosing a location for an office or plant, allocating resources, designing products and services, scheduling activities, and assuring and improving quality are core activities and often strategic issues in business organizations Some of you are or will be employed directly in these areas, while others will have jobs that are indirectly related to this area So whether this is your field of study or not, knowledge of this field will certainly benefit you and the organization you work for The text contains more material than one could normally hope to cover in a one-semester course Rather than rely on the author's personal bias, each instructor can choose those topics most suited to his or her own proclivities Those who prefer an analytic quantitative emphasis, for example, will be quite comfortable with the abundance of examples and student problems Those who prefer a more qualitative approach will welcome the fact that some of the more quantitative material is placed in chapter supplements and that there are memo exercises, operations tours, and cases for assignment Obviously, there are many possibilities between these two extremes ACKNOWLEDGMENTS I would like to thank the reviewers of this edition who contributed significantly to the final product They are: Kwasi Amoako-Gyampah, University of North Carolina-Greensboro; Mehmet Barut, Wichita State University; William J Cosgrove, California Polytechnic University-Pomona; Anne Davey, Northeastern State University; Jose H Dula, University of Mississippi; Kamvar Farahbod, California State University-San Bernardino; Richard A Fentriss, University of South Florida; Dan Heiser, DePaul University; Timothy C Ireland, Oklahoma State University; Thomas E Johnson, Jr., University of South Florida; Yunus Kathawala, Eastern Illinois University; Peter Kelle, Louisiana State University; Wieslaw Kubiak, Memorial University of Newfoundland; Terry Nels Lee, Brigham Young University; Mark McKay, University of Washington; Ajay K Mishra, SUNY Binghamton; Zubair M Mohamed, Western Kentucky University; Sharma Pillutla, Towson University; Karen Papke- Shields, Salisbury State University; Charles Petersen, Northern Illinois University; Patrick Philipoom, University of South Carolina; Michael F Pohlen, University of Delaware; Zinovy Radovilsky, California State-Hayward; Robert Russell, University of Tulsa; William R Sherrard, San Diego State University; Marius M Solomon, Northeastern University; Ulrich A W Tetzlaff, George Mason University; Geoff Willis, University of Central Oklahoma I would also like to thank all of the reviewers of previous editions for their valuable contributions to the success of this book Many students and instructors offered valuable suggestions, and I want to thank them as well And, Ceyhun Ozgur and Phil F Musa did a great job of accuracy checking vii viii PREFACE I would also like to thank the authors of the various CD-ROM supplements and stand-alone supplements that are designed to accompany the textbook Lee Tangedahl developed the spreadsheet templates; Mehdi Kaighobadi put together the data files; Ceyhun Ozgur updated the Instructor's Manual; Ralph Butler developed Powerpoint presentations; Seung Lae Kim updated the Test Bank and the computerized test bank; and Paul Van Ness coauthored the Study Guide Note to tne Student The material in this text is part of the core knowledge in signed questions and problems, you should be able to your education Consequently, you will derive consider- each of the following: able benefit from your study of operations management, ,:egardless ~fyour major Practically speaking, operations Identify the key features of that material Define and use terminology ISa course 1ll management This book describes principles and concepts of opera- Solve typical problems hons management You should be aware that many of Recognize applications of the concepts and techniques these principles and concepts are applicable to other ascovered pects of your professional and personal life Consequently, you should expect,the benefits of your study of Discuss the subject matter in some depth, including its relevance, managerial considerations, and advantages operations management to serve you in those other areas and limitations as well Some students approach this course with apprehen- You will encounter a number of chapter supplements SlOn,and perhaps even some negative feelings It may be Check with your instructor to determine whether or not to that they have heard that the course contains a certain study them amount of quantitative material which they may feel unThis book places an emphasis on problem solving comfortable with, or that the subject matter is dreary, or There are many examples throughout the text illustrating that the course is about "factory management." This is un- solutions In addition, at the end of most chapters and fortunate, because the subject matter of this book is inter- supplements you will find a group of solved problems esting and vital for all business students While it is true The examples within the chapter itself serve to illustrate that some of the material is quantitative, numerous exam- concepts and techniques Too much detail at those points pies, solved problems, and answers at the back of the would be counterproductive Yet, later on, when you bebook will help you with the quantitative material As for gin to solve the end-of-chapter problems, you will find "factory management," there is material on manufactur- the solved problems quite helpful Moreover, those solved ing as well as on services Manufacturing is important, problems usually illustrate more and different details than and something that you should know about for a number the problems within the chapter of reasons Look around you Most of the "things" you I suggest the following approach to increase your see were manufactured: cars, trucks, planes, clothing, chances of getting an "A" in this course: shoes, computers, books, pens and pencils, desks, and cell phones And these are just the tip of the iceberg So it Look over the chapter outline and learning objectives makes sense to know something about how these sorts of Read the chapter summary, and then skim the chapter things are produced Beyond all that is the fact that man3 Read the chapter and take notes using the study quesufacturing is largely responsible for the high standard of tions on the CD-ROM living people have in industrialized countries After reading each chapter or supplement in the text, Look over and try to answer the discussion and review questions attending related classroom lectures, and completing asix x NOTE TO THE STUDENT Solve the problems, referring to the solved problems and chapter examples as needed Take the quizzes on the CD Note that the answers to many problems are given at the end of the book Try to solve each problem before turning to the answer Remember-tests don't come with answers Brief Contents 10 Quality Control 417 Supplement to Chapter 10 Acceptance Sampling 457 PART ONE lntroduction Introduction to Operations Management 11 TQM and Quality Tools 37 Competitiveness, Strategy, and Productivity PART FIVE PART TWO Supply Chain Management Forecasting Forecasting 469 503 12 Supply Chain Management Supplement to Chapter 12 Purchasing and 527 Supplier Management 69 PART THREE 13 Inventory Management System Design 14 Aggregate Planning Product and Service Design 127 Supplement to Chapter Reliability 158 173 Capacity Planning Supplement to Chapter Decision Theory 15 MRP and ERP Design of Work Systems 307 Supplement to Chapter Learning Curves 342 Location Planning and Analysis 355 Supplement to Chapter The Transportation Model 385 603 639 16 Just-in- Time Systems 683 Supplement to Chapter 16 Maintenance 196 Process Selection and Facility Layout 217 Supplement to Chapter Linear Programming 541 17 Scheduling 719 728 274 PART SIX Project Management 18 Project Management 765 PART SEVEN Waiting Lines and Simulation PART FOUR Qua lity lntroduction to Quality 393 19 Waiting Lines 817 Supplement to Chapter 19 Simulation 853 xi Contents Reading: Productivity Gains at Whirlpool lntroduction lntroduction Management An American Tragedy: How a Good Company Died 60 61 Home-Style Cookies 63 Hazel Revisited Reading: Economic Vitality 63 65 Operations Tour: The US Postal Service to Operations Introduction Why Study Operations Management? Functions within Business Organizations The Scope of Operations Management Differentiating Features of Operations PART TWO 12 13 Systems 16 17 Introduction The Historical Evolution of Operations 21 Management 27 Approaches 31 to Forecasting 72 73 Forecasts Based on Time Series Data Associative Forecasting Techniques Accuracy and Control of Forecasts CHAPTER TWO Competitiveness, and Productivity Strategy, 37 Choosing a Forecasting Technique U sing Forecast Information Computers in Forecasting 38 Operations 38 Strategy 75 91 96 103 104 104 104 Newsclip: A Strong Channel Hub 40 Reading: Time-Based Information xii Process Forecasts Based on Judgment and Opinion 31 Operations Tour: Wegmans Food Markets Competitiveness 71 72 Elements of a Good Forecast Steps in the Forecasting Reading: Agile Manufacturing 30 Hazel Total Recall 70 Features Common to All Forecasts 24 Trends in Business Introduction 69 Forecasting Operations Managers and Decision Making Cases: Forecasting CHAPTER THREE The Operations Manager and the Management Strategy 60 Cases: CHAPTER ONE Process 51 Productivity PART ONE 49 Case: M & L Manufacturing 123 105 73 PART THREE System Design CHAPTER FOUR Product and Service Design 127 Introduction 128 Sources of Ideas for New or Redesigned Products and Services 130 Readings: Managers' Journal: When Customer Research Is a Lousy Idea 132 Vlasic on a Roll with Huge Pickle Slices 133 Legal, Ethical, and Environmental Issues 134 Other Issues in Product and Service Design 135 Designing for Manufacturing 141 Reading: Making It (Almost) New Again Designing for Services 147 Quality Function Deployment Operations Strategy SUPPLEMENT 145 150 154 TO CHAPTER Relia bility 158 Introduction 159 Quantifying Reliability Availabili ty 159 165 CHAPTER FIVE Capacity Planning 173 Introduction 174 Importance of Capacity Decisions Defining and Measuring Capacity 174 175 Determinants of Effective Capacity 177 Determining Capacity Requirements 178 Developing Capacity Alternatives Planning Service Capacity Evaluating Alternatives 180 183 184 Operations Strategy 189 Operations Tour: High Acres Landfill SUPPLEMENT TO CHAPTER Decision Theory Introduction 197 Causes of Poor Decisions Decision Environments 196 197 198 194 898 INDEX NationsBank Corp., 497 Nissan Motor Co., 394, 685 Nucor Steel, 223 Outsource Enterprises of Rochester, 147 Pepperidge Farms, 224 PepsiCo, 46, 220 Photikon Corp., 146-147 Pier One, 517 Pipian Bike, Procter & Gamble, 489 Quigley Corp., 175 Rand Corp., 74 Remington Rand Corporation, 775 Richard Change Associates, 499 Rubbermaid Inc., 606 Ryder, 508 SAP, 663 Sears, 4, 423 Shell Oil Co., 594 Sherwin-Williams, 423 Siemens, A.G., 362 Skynet Worldwide Courier, 41 Solectron Corp., 730 Sony Corp., 132,366-367 Spartan Stores, 514 Sport Obermeyer, 506 Stickley Furniture, 679-681 Stryker Howmedica, 49 Textron, 709 Thompson Factory, 142 Toyota Motor Co., 45, 49, 148,251,394,489, 684-686 Toys "R" Us, 515 TriState Industries, 699 Tropicana, 360 Union Carbide, 25, 41 United Parcel Service, 146,514-516,594-595 United States Postal Service, 65 UniY~rsity Games Corp., 362 , Van Waters & Rogers, 504 Varian Associates Inc., 496-497 Vlasic Foods International, 133-134 Wallace Co., 497 Wal-Mart, 4, 423, 507, 513, 516-517, 522 WebvanGroup,516 Wegmans Food Markets, 31-34 Wendy's, 606 Western Electric, 23 Whirlpool, 60 Xerox Corp., 145-147,471,474,489 Zac Precision, 474 Subject lndex ABC approach, 548-550 Abernathy, w.J., 352 Acceptable quality level (AQL), 460 461 Acceptance sampling, 458 467; See also Quality control acceptable quality level, 460-461 average quality of inspected lots, 463 464 defined, 458 inspection, 418 422 operating characteristic (OC) curve, 459 463 sampling plans, 458 459 Accidents, causes of, 321-322 Accounting cost, 697 forecasting and, 70 function of, 11,529 Accuracy, in forecasting, 96-98 Activities, 776 Activity-based costing, 697 Activity-on-arrow (AOA), 776-777, 780-784 Activity-on-node (AON), 776-777, 785 Additive model, 87-88 Advertising and promotion, 608 Aggregate planning, 604-636; See also Capacity planning capacity options, 608-610 choosing a strategy, 612-613 concept of aggregation, 605-606 defined, 604 demand, 608, 610-612 disaggregating the plan, 623-624 informal techniques, 613-618 inputs, 607 linear programming, 619-621 master scheduling, 605, 623-628 mathematical techniques, 618-622 overview of, 606-607 planning levels, 604-605 services, 622-623 simulation models, 621-622 Aggregate planning-Cont strategies for meeting uneven demand, 610-612 Akao, Yoji, 152 Alampi, James, 504 Alber, Karen, 526 Algorithms, use in PERT, 780-786 Allen, Robert E., 497 Alliances, strategic, 509 Allison-Koerber, Deborah, 103 Allowance factor, in time studies, 326-328 American National Standards Institute (ANSI), 409 American Production and Inventory Control Society (APICS), 6, 550, 641 American Society for Quality (ASQ), American Society for Quality Control (ASQc), 394-395 Anders, George, 525 Andon, 696 Angus, Robert B., 814 Ansari, Shahid, 413 AOQ,463 464 AOQL, 464 Applied research, 131 Appointment systems, 749 Appraisal costs, 402 Apte, Uday M., 157, 195,224,242,273 AQL,460-461 Argote, Linda, 352 Arrival and service patterns, 822-824 Assembly line; See also Line balancing balancing of, 242-251 defined, 5,233-234 Assignable variation, 423 Assignment model, 735 Association for Systems Management, Associative forecasting techniques, 91-96 Associative model, 73, 91-96 Attributes, 426, 430 433 Audits, of suppliers, 535 Automatic identification and data capture (AIDC), 547 Automation, 222-230 computer-aided manufacturing (CAM), 223 computer-integrated manufacturing (CIM), 228 fixed, 223 flexible, 224 flexible manufacturing system (FMS), 227-228,240 numerically controlled machines (N/C), 223 programmable, 223 robots, 223-225 Autonomation, 692 Availability, 165 Available-to-promise inventory (ATP), 624 Average, moving, 77-79,103,107 Average outgoing quality (AOQ), 463 464 Average outgoing quality limit (AOQL), 464 Average quality of inspected lots, 463 464 Averaging techniques, 76-81,107 Avery, Rod, 359 Awad, Elias M., 316 Awards, for quality, 406 409 Ayres, R.U., 242 Baatz, E., 664 Back orders, 608 Backward scheduling, 734 Baker, Stephen, 366-367 Balance delay, 246 Balance sheet approach to problem solving, 488 Balancing transactions, 705 Baldrige Award, 406 408 Baldwin, Carliss C., 157 Ballou, Ronald H., 384, 525 Banham, Russ, 362 Bar coding, 546-547 Barnes, Ralph M., 341 Bartlett, Christopher A., 48n, 66 Basic research, 131 Batch processing, 219-222 Behavioral approach, to job design, 309-311 899 900 INDEX Belkauoi, Ahmed, 352 Bell, Janice, 413 Benchmarking, 471, 488-489 Bender, Paul S., 525 Bennett, Wayne D., 681 Benton, W.C., 718 Bernstein, Aaron, 66 Berry, William L., 601, 636, 681, 706, 718, 762 Besterfield, Dale H., 413, 456,500 Besterfield, Glen, 413, 456, 500 Besterfield-Micha, Carol, 413, 456,500 Besterfield-Sacre, Mary, 413, 456, 500 Beta distribution, 786 Bhatnagar, Rohit, 525 Bias, 98 Bidding, competitive, 532, 535 Bierman, Harold, 215, 304, 390 Bill of materials (BOM), 643 Billington, C., 521n, 526 Binding constraints, 290 Blackburn, Joseph D., 66, 718 Blackstone, John H., 601, 636 Blackwell, Kristina, 525 Blackwell, Roger D., 525 Block, M.R., 413 Blueprinting, 230 Blumenstein, Rebecca, 229, 372 Bolwijn, PT, 195,273 BOM, 643 Bonini, Charles P., 215, 304, 390 Bottleneck operations, 56, 189,748 Bounded rationality, 198 Bounds, Gregory, 34 Bovet, David, 525 Brainstorming, 487 Brandimarte, P., 636 Brassard, Michael, 500 Break-even point (BEP), 185-187 Breakdown maintenance, 720 Bridger, R.S., 341 Brooks, Roger B., 601 B2B,517-518 Budgeting, 10 Buffa, Elwood, 852 Bulfin, Robert, Jr., 636 Bull-whip effect, 521-522 Business organizations, functions within, 6-12 Business plan, 604-605 Business-to-business (B2B) commerce, 517-518 Butman, J Juran, 413 Buxley, G., 636 c-chart, 432-433 CAD, 142-143 CAM, 223 Campy, James, 34 Capability analysis, 438-440 Capacity, 174,607-610 Capacity planning, 174-195; See a/so Aggregate planning defining and measuring, 175-177 determining requirements, 178-180 developing alternatives, 180-183 evaluating alternatives, 184-189 factors affecting, 177-179 Capacity planning-Cont importance of, 174-175 planning service capacity, 183-184 rough-cut, 623 Capacity requirements planning, 657-660 Capezio, Peter, 405, 413 Cappels, Thomas, 500 Carlisle, Brian, 341 Carpenter, Donna Sammons, 692n Carrying costs, 547-548, 551-556 Cartin, Thomas J., 470n Cartwright, Edmund, 21 Carvajal, Doreen, 370 Carville, Richard 0., 146 Cases An American Tragedy: How a Good Company Died, 60-61 The Case of the Mexican Crazy Quilt, 812-813 Chick-n-Gravy Dinner Line, 494 Coquille Refinery Corporation, 872 Dewey Stapler Company, 595-596 DMD Enterprises, 678 Eight Glasses a Day, 635-636 Harvey Industries, 594-595 Hazel, 30-31 Hazel Revisited, 63 Home-Style Cookies, 61-63 Level Operations, 716 M&L Manufacturing, 123-124 Product Recall, 353 Son, Ltd., 304 Tiger Tools, 453-454 Time, Please, 813 Tip Top Markets, 494-496 Total Recall, 31 Toys, Inc., 453 UPD Manufacturing, 593 Cash flow, 188 Cause-and-effect diagrams, 406, 479, 481, 483-484 Cellular layouts, 238-240; See a/so Facilities layout Cellular manufacturing, 238-240 Center of gravity method, 376-379 Centered moving average, 89-90 Central limit theorem, 424 Centralized inspection, 421 Centralized purchasing, 533 Certainty, 198-199 Certification quality, 409 supplier, 535, 702-703 Chakrapani, c., 413 Chang, Richard, 499-500 Change transactions, 705 Changeover time, 49 Changes, 654 Channel, 822 Chao, X., 762 Chapman, Chris, 814 Chase demand strategy, 611-612 Check sheets, 478-481 Chopra, Sunil, 525 CIM, 228 Clark, Andrew, 484 Clark, Kim B., 157 Clark, Timothy, 484 Classification system, for inventory, 548-550 Cld'-lnd, David 1., 814 Cr~~ents, James P., 814 Climate, impact on location decisions, 361 Closeness ratings, 255-256 Cohen, Morris A., 157, 195, 224, 242, 273 Cole, R.E., 413 Colvin, Geoffrey, 34, 66 Common variability, 423 Community factors in location decisions, 365,368 Compensation, 333-336 Competencies, distinctive, 44-45 Competitive bidding, 532, 535 Competitive edge, 44 Competitiveness, 38-40; See a/so Strategies Computer-aided design (CAD), 142-143 Computer-aided manufacturing (CAM),223 Computer applications CIM, 228 computer-aided design, 142-143 e-business, 24 e-commerce, 506, 515-517 e-procurement,538-539 EDI, 513-514, 538 ERP, 664-669 geographical information system (GIS), 361,366 linear programming, 291-293, 735-736 MRP; See Material requirements planning (MRP) Computer-integrated manufacturing (CIM),228 Computerized numerical control (CNC), 223 Concurrent engineering, 141-142 Condit, Donald E, 595 Condon, James D., 146-147 Conlin, William, 474 Constraints binding, 290 defined, 276 plotting of, 280-283 redundant, 287 Consumer surveys, used to forecast, 74 Consumer's risk, 461 Continual system, 545 Continuous improvement, 471, 696-697 Continuous processing, 221-222 Continuous stocking levels, 574-576 Contracts, with suppliers, 535 Control, Control charts, 424-438 attributes, 426, 430-433 defined, 99,424, 481 errors, 425-426 examples of, 479, 482, 487 forecasting and, 99-102 mean, 427-430 range, 428-430 run tests, 435-438 variables, 426-430 when to use, 434-435 Control limits, 425 INDEX Conversion process, 8-9 CON WHIP (constant work in process), 522 Cooper, Tom, 668 Copacino, William c., 525 Core function, of an organization, 12 Corner points, 287-288 Corporate downsizing, 26 Correlation, 94 Cost accounting, 697 Cost analysis, 833-834 Cost-profit-volume analysis, 373-375 Cost-volume analysis, 185-188 Costs activity based, 697 appraisal, 402 carrying, 547-548, 551-556 distribution, 376 ERP, 665-666 excess, 574 failure, 401 fixed, 185-187 holding, 512, 547-548 maintenance, 720-721 ordering, 548, 551-556 prevention, 402 quality, 401-402 shortage, 548, 574 step, 186-187 total cost, 665-666 transportation, 253-255, 359-360, 375 variable, 185-187 Counting systems, for inventory, 550 Cox, Jeff, 762 Cpb 440-441 CPM (critical path method), 18,775; See also PERT (Program evaluation and review technique) CR (critical ratio), 739-744 Craft production, 21, 28 Crainer, Stuart, 34 Crandall, Robert L., 750-751 Crash, 794-796 Critical activities, 777 Critical path, 777 Critical path method (CPM), 18,775; See also PERT (Program evaluation and review technique) Critical ratio, 739-744 Crosby, Philip, 395,404-405 Cross, K.F., 500 Cross-docking, 522 Cross training, 251, 696 CRP, 657-660 Cullinane, Thomas P., 814 Cummins, Thomas, 708 Cumulative lead time, 643 Cumulative trauma disorders, 322-323 Cunningham, J Barton, 341 Curvilinear regression analysis, 96 Customer needs, 44 Customer research, 132-133 Customer satisfaction, 25 Customer service, 39, 44 Customization, mass, 138-139 Customized output, 13 Cycle counting, 550 Cycle time, 243-247 Cycles, 75-76,90-91 Dale, Barrie G., 413 -"':' Dalla- Vicenza, Mario, 363 Danner, David L., 341 Darnell, Michele, 133 Dash, Julekha, 771 Davenport, Tom, 681 Davis, Stanley B., 413, 456 Day, Susan, 144 Decentralized purchasing, 533 Decision making capacity planning; See Capacity planning under certainty, 198-199 decision trees, 201-203 environments, 198 establishing priorities, 19-20 ethics and, 20 expected monetary value (EMV) criterion, 200-201 expected value of perfect information, 203-204 models, ]7- 18, 23 poor decision making, causes of, ]97-198 quantitative methods, 18-19 under risk, 200-201 sensitivity analysis, 204-206 systems approach, 19 trade-offs, 19 under uncertainty, 199-200 Decision Sciences Institute, Decision theory; See Decision making Decision trees, 201-203 Decision variables, 275 Delayed differentiation, 138-139,522 Delivery time, 49 Dell, Michael, 47 Delphi method, 74,103 Delurgio, Stephen, 124 Demand aggregate planning and, 607-608 dependent, 640-641 independent, 640-641 lumpy, 640 meeting uneven, 610-612 prediction of; See Forecasting Demand chain, 504 Demand forecasts, 547 Deming, W Edwards, 395, 402-403, 409, 474,497 Deming Prize, 402, 409 Deming wheel, 475 Dependent demand, 640-641 Depth skills, 335 Derman, c., 456 Design, of products and services availability, 165 capacity and, 178 component commonality, 147 computer-aided design (CAD), 142-143 concurrent engineering, 141-142 customer research and, 132-133 design time, 49 environmental issues, 134-135, 143-144 ethical issues, 134-135 901 Design, of products and services-Cont forecasting, 70 ideas for new/redesigned, 130-134 JIT, 688-689 legal issues, 134-135 life cycles, 136-137,221 manufacturing and, 141-147 mass customization and, 138-139 objecti ves of, 130 production requirements, 143 quality and, 397-398 quality function deployment (QFD), 130, 150-]54 reasons for, 128-129 recycling, 143-144 reliability and, ]39-140, 159-]64 remanufacturing, 144-147 research and development, 131-132 reverse engineering, 130 robust design, 140-14] services, ]47-150 standardization, 137-138 systems, ]2 Design for assembly (DFA), 143 Design for disassembly (DFD), 145 Design for manufacturing (DFM), 143 Design for operations, 130 Design for recycling (DFR), 143 Design for response, ]33 Deterministic time estimates, 778-780 Detroit-type automation, 223 DeWeaver, Mary Feeherry, 814 Differentiation delayed, 138-139,522 product or service, 38 Dimensions of quality, 395-396 Direct numerical control (DNC), 223 Disaggregation, 623-624 Discounts, quantity, 558-563 Discrete stocking levels, 576-577 Disintermediation, 522 Distinctive competencies, 44-45 Distribution costs, 376 Distribution function, 12 Distribution requirements planning (DRP),514 Division of labor, 22 Dixon, Lance, 711 Dobbins, H., 34 Dodge, H.F., 23, 394 Dornier, Phillippe-Pierre, 525 Double sampling plan, 458-459 Double smoothing, 85 Downsizing, 26 DRP,514 Drum-buffer-rope, 748 Due date, rule for sequencing, 739-740, 743-744 Duncan, A.J., 467 Duray, Rebecca, 157 Dynamic line balancing, 251 e-business, 24 e-commerce, 506, 515-517 Earliest due date (EDD), 739-740, 743-744 Eberle, Ted, 341 902 INDEX Ebersole, Phil, 145, 147 Economic lot sizes, 544 Economic order quantity (EOQ), 551-577 basic model, 551-556 defined, 551 economic production quantity, 556-558 fixed-order-interval model, 571-574 MRP and, 656 quantity discounts, 558-563 reorder points, 564-571 single period model, 574-577 Economic production quantity (EPQ), 556-558 Economies of scale, 21 EDD (earliest due date), 739-740, 743-744 EDI, 513-514, 538 Efficiency, 56 Efficiency school, 309 Efficient consumer response (ECR), 513-514 Ehrsam, Fred, 363 80-20 rule, 480 Electronic data interchange (EDI), 513-514,538 Emerson, Harrington, 22 Empowerment, 471, 488 Engineering, interface with purchasing, 529 Englund, Randall L., 814 Enrick, Norbert L., 467 Enterprise resource planning (ERP), 664-669; See also Material requirements planning (MRP) Environment environmentally responsible manufacturing, 25-26 ISO 14000,412 product design issues, 134-135 recycling, 143-144, 174 trends, 25-26 Environmental Protection Agency (EPA), ]35 Environmental scanning, 46 Environmentally responsible manufacturing, 25-26 EOQ; See Economic order quantity (EOQ) Eppen, G.D., 215 Eppinger, Steven D., 157 Epple, Dennis, 352 Equivalent current value, 188 Equivalent interest rate, 188 Ergonomics, 309 Erlang, A.K., 818 Ernst, Ricardo, 525 ERP, 664-669 Errors, 96-102, 425 426 Esayian, Harry, 474 Esseling, Erik K.C., 413 Ethics design issues and, 134-135 operations management, 40 project management, 770 purchasing, 533-534 quality issues, 402 Ettlie, John, 195, 273 Evans, James R., 456, 872 Evans, P., 66 Events, 776 Exception reports, 654 Excess cost, 574 Executive opinions, used to forecast, 73-74,103 Expected monetary value (EMV) criterion, 200-201 Expected value of perfect information (EVPI), 203-204 Exponential smoothing, 80-81,85-87, 103,107 External failures, 401 Fabrication, Fabrycky, W.J., 352 Facilities, location of; See Location planning Facilities layout; See also Location planning; Process selection and design capacity planning; See Capacity planning cellular layouts, 238-240 combination layouts, 238 fixed-position, 237-238 line balancing, 242-251 cycle time, 243-247 guidelines for, 247-249 parallel workstations, 250-251 precedence diagrams, 245, 248-249 procedures, 245-246 process layouts, 235-237, 251-258 product layouts, 232-235, 242-251, 258 service layouts, 240-241 Factor-rating, 375-376 Fail-sating, 471 Failure, 139 Failure costs, 401 Failure rates, 161-163 Fazel, Farzaneh, 473n, 500 FCFS (first come, first served), 739-743 Fearon, Harold E., 539 Feasibility, range of, 296 Feasible solution space, 276, 278, 283 Feedback, Feigenbaum, Armand, 395, 404 405 Feitzinger, Edward, ]57 Fender, Michel, 525 Finance function, 9-10, 70 Financial analysis, 188-189 Finite loading, 732, 734 Finite source defined, 821 queuing models, 839-844 Finucane, James, 359 First come, first served rule, 739-743 Fishbone diagram, 406, 481, 483 Fisher, Marshall, 506n, 525 Fitzgerald, Kevin R., 528, 539 Fitzsimmons, James A., 872 5W2H approach, 489 Fixed automation, 223 Fixed costs, 185-187 Fixed-order-interval (FOI) model, 571-574 Fixed-period ordering, 656 Fixed-position layout, 237-238; See also Facilities layout Flattening, of the organization, 26 Flexibility, 38, 44, 180, 692-693 Flexible automation, 224 Flexible factories strategy, 46 Flexible manufacturing system (FMS), 227-228,240 Florida, Richard L., 367 Fl.8w process chart, 314, 316 Flow-shop scheduling, 728 Flow system, 728-729 Flowcharts, 230-231, 478 480 Flynn, Mike, 229 FMS, 227-228, 240 Focused factories strategy, 46 Fogarty, Donald w., 239, 601,636 Foolproofing,471 Foote, David, 813 Ford, Henry, 684, 686 Forecasting, 70-124 accuracy, 96-98 approaches to, 73 associative techniques curvilinear and multiple regression, 96 simple linear regression, 91-96,107 based on judgment and opinion, 73-75, 103 based on time series data averaging, 76-81,103,107 cycles, 75-76, 90-91 naive methods, 75-76, 107 seasonality, 75-76, 87-90,179-180 trend adjusted exponential smoothing, 85-87, 103, 107 trends, 75-76, 81-85,107 choosing a technique, 103-104 common features, 71-72 computers and, 104 control of, 107 defined, 70 demand, 547 elements of a good, 72 formulas used in, 107 naive approach, 75-76, 107 steps in the process, 72-73 uses of data, 70-71 Foreign locations, 361-362, 370-373 Forward scheduling, 734 Foster, Thomas A., 413 Fowler, Oscar S., 34 Francis, Richard L., 273, 384 Freivalds, Andris, 341 Fulfillment, of orders, 515-516 Functional strategies, 42 Furrer, Matt, 105 Gantt, Henry, 22 Gantt charts, 22, 731-733, 774-775 Garvin, David A., 396n, 413 Gass, S.I., 304 General Agreement on Tariffs and Trade (GATT), 25, 371 Geographical information system (GIS), 361,366 Georgoff, D.M., 124 Ghare, P.M., 352 Ghattas, KG., 814 Ghoshal, Sumantra, 48n, 66 Gido, Jack, 814 Giffith, Gary K., 500 INDEX Gilbreth, Frank, 22-23, 315-316, 318 Gilbreth, Lillian, 23, 318 Gillespie, Lori Ciprian, 814 Gilmore, James, 157 Gispan, Jonathan, 770 Gitlow, Howard, 456, 500 Glaxner, Wayne, 229 Global locations, 361-362, 370-373 Global supply chain, 515 Globalization, 25 Goals, 41-42 Goetsch, David L., 413, 456 Goldratt, Eliyahu M., 748-749, 762, 797n,814 Goods-service continuum, 8, 10 Goods versus services operations, 14-16 Gorman, Michael E., 157 Gould, FJ., 215 Graham, Robert J., 814 Grant, Eugene L., 429, 456 Graphical linear programming, 278-290 defined, 278 feasible solution space, 283 minimization, 288-290 objective function line, 283-287 plotting constraints, 280-283 procedures, 278-280 redundant constraints, 287 slack and surplus, 290 solutions/corner points, 287-288 Gravity method, center of, 376-379 Gray, Clifford F., 766, 772-773,814 Greenspan, Alan, 63-64 Griffin, w., 852 Griffith, Gary K., 456 Grimshaw, David 1., 384 Gronski, Linda, 474 Groover, Mikell P., 157,239, 250n, 273 Gross requirements, 647 Group incentive plans, 335 Group technology, 238-240, 691 Grover, Varun, 44n Growth strategies, 48 Gryna, Derek S., 413 Gryna, Frank M., 413, 456, 467 Guide, V Daniel, 718 Gundersen, Norman A., 814 Gupta, Tarun, 718 Hachman, Mark, 66 Hall, Robert w., 725 Hammer, Michael, 34 Handfield, Robert B., 526 Hargreave,James,21 Harrell, c., 872 Harrington, H James, 413 Harris, F.w., 23 Harry, Mikel, 500 Hausman, Warren H., 215, 304, 390 Hazelwood, R.N., 840, 843 Hendrick, Thomas E., 195 Hendricks, Kevin B., 500 Hertzberg, Frederick, 23 Heskett, James L., 157 Heuristic rule, 256 Hill, Terry, 44, 66, 195,273,526,539 Hillier, Frederick S., 304, 852, 872 Hillier, Mark S., 304, 872 Hinckley, John, 226 Histograms, 478-479, 481 Hoffmann, Thomas R., 239, 601, 636 Holding costs, 512, 547-548 Holland, Max, 60-61 Holstein, William J., 66 Holusha, John, 27 Hopp, WallaceJ., 124,601,636,681,718,762 Hopp, William, Jr., 34 Hora, Michael E., 725 Horizontal loading, 310, 732-733 Horizontal skills, 335 House of quality, 150-151 Housekeeping, 705 Hout, Thomas, 46n Howe, Tom, 454 Howley, Lauraine, 49 Human relations movement, 22-23 Human resources, 11, 70 Hungarian method, 736 Huse, Edgar F., 340 Illumination, working conditions and, 320 Implied warranties, 135 Incentives, 333-336 Independence, 790 Independent contractors, 609 Independent demand, 640-641 Independent events, 159-160 Indexes, 88, 94 Industrial engineering function, 12 Industrial Revolution, 21 Infinite loading, 732-733 Infinite source, 821 Information technology, 25 Information velocity, 519 Input/output (I/O) control, 734-735 Inputs, 8-9, 607, 642-646 Inspection, 418-422; See also Acceptance sampling Institute for Operations Research and the Management Sciences (INFORMS), Institute of Industrial Engineers, Interchangeable parts, 22, 137 Intermittent processing, 235 Internal failures, 401 Internal rate of return (IR), 188 International Organization for Standardization (ISO), 409-410 Internet business-to-business (B2B) commerce, 517-518 e-business, 24 e-commerce, 506, 515-517 e-procurement,538-539 Interviewing, 488 Inventory, 542 Inventory management, 541-601; See also Aggregate planning: Material requirements planning (MRP) ABC approach, 548-550 bar coding, 546-547 bull-whip effect, 521-522 carrying costs, 547-548, 551-556 903 Inventory management-Cont classification system, 548-550 costs, 547-548, 551-556 _"it:' counting system, 545-547 cycle counting, 550 cycles, 552 demand forecasts, 547 DRP,514 economic order quantity (EOQ) basic model, 551-556 defined, 551 economic production quantity, 556-558 fixed-order-interval model, 571-574 quantity discounts, 558-563 reorder points, 564-571 single period model, 574-577 functions of, 543-544 JIT, 693-694 lead time information, 547 objectives of, 544 ordering costs, 548, 551-556 records, 646 requirements for effective, 545-550 safety stock, 564-565, 654-655 service level, 565, 568-571 shortages, 568-571 stocking levels, 574-577 turnover of, 544 velocity, 519-520 Inventory models, 18 Inventory records, 646 Inventory turnover, 544 Inventory velocity, 519-520 Ireland, Samuel" 414 Irregular variation, 75-76 Ishikawa, Kaoru, 406 Ishikawa diagram, 483 ISO 9000, 409-410 ISO 14000,412 Jacobs, Robert F., 681 Jacques, March Laree, 414 Japan Prize, 409 Japanese manufacturers, influence of, 23, 44 Jeffery, Bill, 681 Jensch, Tom, 702 Jidoka, 692 JIT; See Just-in-time (JIT) JIT 11,711-712 Job design, 308-323; See also Work measurement behavioral approaches, 310-311 methods analysis, 313-315 motion study, 315-318 motivation, 311 specialization, 309-310 teams, 312-313 working conditions, 318-323 Job enlargement, 310 Job enrichment, 310-311 Job rotation, 310 Job-shop scheduling, 731 Job shops, 219-222 Job splitting, 745 Job time, 739-740 Johnson, AI, 709 904 INDEX Johnson, S.M., 745n Johnson's rule, 745 Jones, Daniel T., 34, 686n, 692n Jorgensen, Karen, 34] Judgmental forecasts, 73-75 Juran, Joseph M., 395, 403-405, 414, 456, 467,497,500 Just-in-time (JIT), 684 -718 converting to, 705-708 defined, 694 deliveries, 514-515 goals of, 687-688 history of, 684-686 inventory control, 693-694 JIT II, 711-712 kanban, 700-701 level loading, 697-699 lot sizes, 690 manufacturing planning and control, 697-705 personnel organizational elements, 695~697 process design, 689-694 product design, 688-689 production t1exibility, 692-693 pull systems, 699-700 purchasing, 711 services, 709-711 setup time reduction, 691-692 supplier relationships, 702-704 visual systems, 700-701 Kahn, Salina, 844 Kaiser plan, 335 Kaizen, 471 Kalian, Arianna, 229 Kaminsky, Philip, 516, 526 Kanabar, Vijaay, 814 Kanban,700-701 Kano model, 153-154 Kapp, Karl M., 681 Katz, K.L., 852 Keating, Barry, 124 Kelly, J.E., 775 Kelton, David, 872 Kerzner, Harold, 814 Kilbridge, M.D., 273 Kinni, Theodore B., 499 Klammer, Thomas, 413 Knod, Edward M., Jr., 693 Knowledge-based pay, 335 Koch, Christopher, 664 Kodak plan, 335 Kolarik, William J., 456 Koopman, John, 363-365 Kouvelis, Panos, 525 Kuchler, Theodore C., 708 Kumpe, T., 195, 273 La Lopa, Joseph M., 414 Labor factors, impact on location decisions, 361 Lankford, William M., 718 Laplace, 199-200 Larson, B.M., 852 Larson, Erik w., 766, 772-773, 814 Larson, Melissa, 814 Larson, R.C., 852 Latamore, G Berton, 521 Latham, Bill, 681 Latham, Hester-Ford, 681 Law, Avrill, 872 Lawrence, Carol, 413 Layout of facilities; See Facilities layout Lead time, 11, 523, 547, 643 Leadership, 697 Lean production, 26-28, 251, 684; See also Just-in-time (JIT) Learning curves applications, 347-349 concept of, 343-347 limitations, 349-350 Least squares line, 91-92 Leavenworth, Richard, 429, 456 Lee, Hau L., 157, 521n, 526 Leenders, Michiel R., 539 Legal issues design of products/services, 134-135 liability, 135,399 UCC,135 warranties, 135 Lehner, Urban, 684-685 Level capacity strategy, 611-612 Level loading, 697-699 Levy, Richard M., 497 Liability, 135,399 Lieberman, Gerald J., 304, 852, 872 Liebhaber, Richard, 358-359 Lientz, Bennet P, 500, 814 Life cycle, 136-137, 221, 772 Lincoln plan, 335 Lindsay, W.M., 456 Line balancing aggregate planning, 619-621 cycle time, 243-247 defined, 243 guidelines for, 247-249 parallel workstations, 250-251 precedence diagrams, 245, 248-249 procedures, 245-246 Linear decision rule, 620-621 Linear programming, 274-304 aggregate planning, 619-621 computer solutions, 291-293 graphical programming, 278-290 feasible solution space, 283 minimization, 288-290 objective function line, 283-287 plotting constraints, 280-283 procedures, 278-280 redundant constraints, 287 slack and surplus, 290 solutions and corner points, 287-288 models, 275-278, 735-736 sensitivity analysis, 293-297 simplex method, 290 Linear regression analysis, 91-96, 107 Linear trend equation, 81-84 List reduction approach to problem solving, 488 Load chart, 731-733 Load reports, 658-660 Loading, 731 Location planning, 355-390 evaluating alternatives, 373-379 center of gravity method, 376-379 cost-profit-volume analysis, 373-375 -" factor rating, 375-376 transportation model, 375, 385-390 factors affecting, 358-370 community, 365, 368 regional factors, 359-362, 368 site-related factors, 366-368 global locations, 361-362, 370-373 importance of, 356 location options, 357 multiple plant manufacturing strategies, 367-369 objectives of, 357 procedures, 357-358 service and retail locations, 369-371 Locational cost-profit-volume analysis, 373-375 Logistical transactions, 705 Logistics, 510-515; See also Supply chain management Long-term capacity needs, 179 Loper, Marvin, 813 Lot-for-Iot ordering, 649-650, 656 Lot sizes, 655-657, 690-691 Lot tolerance percent defective (LTPD), 461 Love, Stephen, 659 Lovelock, Christopher H., 157 Low cost labor strategy, 44 Lumpy demand, 640 Lund, Robert T., 145 Lynch, R.L., 500 Lyne, Jack, 384 ~' McCaslin, John, 420 McGinnis, Leon E, Jr., 273, 384 McGregor, Douglas, 23 Machine productivity, 52 Machine shop, 236 McKee, Sandra L., 814 McNeil, Gordon H., 147 McNulty, Steven, 134 McPherson, K., 273 MAD, 97-101, 107 Maintenance breakdown, 720, 723 costs, 720-721 defined, 720 predictive, 722 preventative, 233, 705, 720-722 replacement, 724 responsibility of, 12 total productive, 722 Make or buy defined, 219 factors to consider, 219, 509, 531-532 Makespan, 740 Malhotra, Manoj K., 44n Management compensation, 335-336 Management information systems (MIS), 11,70 Management science techniques, 23 Mann, Lawrence, JL, 725 Mantel, Samuel, 814 INDEX Manufacturability, 11, 130 Manufacturing cells, 224, 692 Manufacturing planning and control, 697-705 Manufacturing resources planning (MRP 11),661-663; See also Material requirements planning (MRP) Manufacturing systems automation systems, 222-230 cellular, 238-240 computer-integrated manufacturing (CIM), 228 designing for, ]41-]47 flexible manufacturing, 46, 227-228, 240 JIT; See Just-in-time (JIT) Marecki, Richard E, 4]4 Margretta, Joan, 66, 526 Markels, A]ex, 358 Market area plant strategy, 368 Marketing customer research, 132-133 financial strategy, 43 forecasting and, 70 function of, 10-11 order qualifiers and winners, 44 Markets, location decisions and, 360-361 Martin, Judith, 818 Martin, Justin, 526 Martin, Tony, 359 Mas]ow, Abraham, 23 Mass customization, 138-139 Mass production, 22, 28 Masson, Bernard, 474 Master production schedule (MPS), 624, 642-643 Master schedule, 605, 623-628, 642-643 Masters, Robert, 473n Materia] handling, 224 Material requirements planning (MRP), 640-664; See also Inventory management benefits and requirements, 660-661 bill of materials, 643-646 capacity requirements planning, 657-660 defined, 640 dependent versus independent demand, 640-641 ERP, 664-669 inputs, 642-646 inventory records, 646 JIT, 684 lot sizing, 655-657 master schedule, 642-643 MRP II, 661-663 outputs, 654 overview of, 640-642 processing, 646-654 safety stock, 654-655 services, 660 updating records, 652-654 Mathematical models, 17 Mathews, Anna Wilde, 851 Maximax,199-200 Maximin, 199 Maximum line length, 834-835 Maynard, Miche]ine, 548 Mayo, Elton, 23 Mean absolute deviation (MAD), 97-101,107 Mean control chart, 427-430 , Mean squared error (MSE), 97-101,107 Mean time between failures (MTBF), 161-163 Mears, P., 500 Meczkowski, Frank, 133-]34 Meindl, Peter, 525 Meredith, Jack R., 2]5, 8]4 Methods analysis, 313-3]5 Methods-time measurement (MTM), 329-330 Metters, Richard, 762 Metz, Peter J., 526 Meyers, Fred E., 341 Microfactory, 371 Micromotion study, 318 Midgley, Maureen, 229 Mi]akovich, ME, 414 Mi]as, Gene H., 273 Miller, Jeffrey G., 705 Milligan, Glenn w., ]57 Minimax regret, 199-200 Minimization, 288-290 MIS, 1],70 Mission, 40-41 Mission statement, 40-4 ] Mitra, Amitava, 456, 500 Mixed model line, 251 Models additive, 87-88 assignment, 735-736 associative, 73 decision making, 17-] 8, 23 defined, 17 EOQ basic, 551-556 fixed-order-interva],57]-574 single period, 574-577 finite source, 839-844 infinite source, 825-839 inventory, 18 Kano,153-154 linear programming, 275-278 mathematical, 17 multiple channels, 829-833 multiple priority, 835-839 multiplicative, 87-88 part period, 656 physical, ]7 project, 18 quantitative, 23 schematic, 17 simu]ation,621-622 single channel, 827-829 statistical, 18 transportation, 375, 385-390 Modular design, 139, 688 Monden, Yasubiro, 718 Monroe, Joseph, 195,273 Monte Carlo method, 856-857 Montgomery, Douglas C., 456 Moog, Bob, 362-363 Moore, Franklin, ]95 Moore, Jeffrey H., 215 Moran, Linda, 34] 905 Morehouse, Debra, 405, 413 Morgan, Jim, 536n Morrison, Jim, 681 Most likely time, 786 Motion study, 22, 315-318 Motivation, 31] Motivational theories, 23 Moving assembly line, 22 Moving average, 77-79, 103, 107 MPS, 624 MRP; See Material requirements planning (MRP) MRP II, 661-663 MSE, 97-10], 107 MTBF, ]61-]63 Multiple channel systems, 829-833 Multip]e plant manufacturing strategies, 367-369 Multiple-priority model, 835-839 Multiple regression analysis, 96 Multiple-samp]ing plan, 459 Multip]icative model, 87-88 Munde], Marvin E., 34] Murdick, R.G., 124 Muss]ewhite, Ed, 34] Muther, Richard, 255n, 273 Muther grid, 255 NAFTA, 362 Naive forecast, 75-76, 107 Nationa] Association of Purchasing Management (NAPM), 6, 533 National Institute of Standards, 400 National Institute of Standards and Technology, 406 Negative exponential distribution, 822-823 Negotiation, 532-533 Net-change system, 654-655 Net requirements, 647 Netting, 646 Network conventions, 777-778 Network (precedence) diagram, 776-777 Neubauer, Dean, 456 Newsbite, A QFD Snapshot, ]52-]53 Newsboy problem, 574 Newsclips $$$,542 Desperately Seeking e-Fu]fillment, 516-517 Efficient Consumer Response, 514 Ford Trip]es Its Billion-Dollar CostCutting Goal, 548 High Forecasts Can Be Bad News, 97 Hotels Exp]oring Easier Customer CheckIns, 844-845 Innovative MCI Unit Finds Culture Shock in Colorado Springs, 358-359 Less Trash Leaves Landfills in a Bind, 174 Medica] Mistakes Kill Almost 98,000 a Year, 400 More Cars Come with a Shade of Green _ Recycled Materials, ]44 Oops!, 420 "People" Firms Boost Profits, Study Shows, 696 906 INDEX Newsclips-Cont Productivity Gains Curb Inflation, 57 SAP R/3 Leads Pack of Enterprise Resource Planning Software Packages, 663 A Strategy for Continuous Improvement, 49 A Strong Channel Hub, 105 Supply Chain Optimization at Internet Speed,521 Time-Based Innovation, 49-51 Toyota Mixes and Matches, 251 Vying for Patients, Hospitals Think Location, Location, 370 Nichols, Ernest L., Jr., 526 Nichols, Karen, 771 Niebel, Benjamin w., 315, 317, 319-321, 328,341 Noise and vibration, working conditions and, 320 Nolden, Carol, 725 Nonlinear trend, 81-82 Normal operating conditions, 139 Normal time, in work measurement, 325-327 North American Free Trade Agreement, 362 Numerically controlled machines (N/C), 223 Objective function, 275 Objective function line, 283-287 Objectives of location decisions, 357 of product and service design, 130 Observed time, in work measurement, 325-327 OC curve, 459 463 Occupational Health and Safety Administration (OSHA), 135 Occupational Safety and Health Act, 322 Office layouts, 241 Ohno, Taiichi, 684-685, 691-692 Ohsone, Kozo, 132 Olson, David L., 872 On-site inspection, 421 Ono, Yumiko, 270 Operating characteristic (OC) curve, 459 463 Operations management careers in, decision making, 17-20 defined, 4-5 evolution of, 21-24 forecasting; See Forecasting functions of, 7-9 goods versus services operations, 14-16 Japanese influence on, 23 role of managers, 12, 16 scope of, 12-13 service operations, 14-16 standardization, 13 strategy; See Strategies transformation process, 8-10 trends, 24-28 Operations plan, 605 Operations strategy, 43 44 Operations Tour Boeing, 716-717 Bruegger's Bagel Bakery, 597 Operations Tour-Cont In the Chips at Jays, 454 455 High Acres Landfill, 194 Morton Salt, 271-273 PSC, Inc., 598-600 Stickley Furniture, 679-681 US Postal Service, 65-66 Wegmans Food Markets Inc., 31-34 Opinions, forecasts based on, 73-74 Oppenheim, Alan, 456, 500 Oppenheim, Bohdan w., 500 Oppenheim, Rosa, 456, 500 Opportunity losses, 200 Optimistic time, 786 Order cycles, 544 Order fulfillment, 515-516 Order qualifiers, 44 Order release, 654 Order winners, 44 Ordering costs, 548, 551-556 Organizations accounting function, II competitiveness and, 38 40 finance function, 9-10 flattening of, 26 functions within, 6-12 human resources function, II marketing function, 10-11 missions, 40 41 operations function, 7-9 reasons for failure, 40 strategy, 40 43 Orlicky, Joseph, 641, 681 Osborn, Jack D., 341 OSHA, 322 Oswald, Lawrence J., 229 Ott, Ellis, 456 Ouchi, William, 23 Output, 8-9,13-14,654 Output-based system, 333-334 Outsourcing, 47, 218, 506, 531-532 Owens, James, 34 p-Chart,431 432 Padmanaghan, v., 526 Paired comparisons approach to problem solving, 488 Parallel workstations, 250-251 Parameter design, 140-141 Parameters, 276 Pareto, Vilfredo, 480 Pareto analysis, 479 482, 487 Pareto phenomenon, 20 Part-period model, 656 Partnerships, 519, 536-537 Patel, Keyur, 105 Path, 777 Paul, Lauren Gibbons, 681 Pay systems, 333-336 Payback, 188 Payoff table, 197 PDSA, 475 477, 484 Pearson, John N., 718 Peck, L.G., 840, 843 Pegging, 651 Pender, Lee, 681 Performance-control reports, 654 Performance measurement sequencing, 739-740 sUpply chain, 509-510 Periodic system, 545 Perpetual inventory system, 545-546 Personnel, 11,695-696 PERT (Program evaluation and review technique) activity-on-arrow, 776-777, 780-784 activity-on-node, 776, 785 advantages of using, 797 algorithms, use of, 780-786 defined, 775 deterministic time estimates, 778-780 network conventions, 777-778 network diagram, 776-777 probabilistic time estimates, 786-792 slack time, computing of, 786 Pessimistic time, 786 Peterson, R., 601, 636, 762 Pfeiffer, Raymond S., 34 Physical models, 17 Pine, B Joseph, III, 157 Pinedo, M., 762 Pingho, LeRoy, 359 Pipeline inventories, 544 Plan-do-study-act (PDSA) cycle, 475 477,484 Planned-order receipts, 647-648 Planned-order release, 648-650 Planned orders, 654 Planning reports, 654 Planning time, 49 Plant layout; See Facilities layout Plant location; See Location planning Plossl, George, 641 Plotting constraints, in graphical linear programming, 280-283 Point-of-sale (POS) system, 513, 547 Poisson distribution, 822-823 Pokayoke,471 Pooler, David 1., 539 Pooler, Victor H., 539 Population source, 821 Powers, Richard, 363 Prasad, Biren, 157 Precedence diagram, 245, 248-249, 776-777 Predetermined prices, 532 Predetermined time standards, 329-330 Predictive maintenance, 722 Predictor variables, 91 Present value (PV), 188 Preventative maintenance, 233, 705, 720-722 Prevention costs, 402 Pricing competitiveness and, 38, 44 demand options and, 608 determination of, 532-533 Priorities, establishment of, 19-20 Priority rules, 739-745 Probabilistic time estimates, 778, 786-792 Probability, 159 Problem solving, 18-19,475 477; See also Decision making Process batch, 749 INDEX Process capability, 438-442 Process charts, 314-315 Process control, 418 Process design, 689-694 Process improvement, 25, 477-478 Process layouts, 235-237,252-258; See also Facilities layout Process plant strategy, 368-369 Process selection and design, 218-232; See also Facilities layout automation, 222-230 defined, 218 make or buy decisions, 218-219 process systems, 219-222 service process design, 230-231 Process systems, 219-222 Process variability, 424, 438 Processing time, 49 Producer's risk, 461 Product design; See Design, of products and services Product differentiation, 38 Productlayout,232-235,242-251,258;See also Facilities layout Product liability, 135, 399 Product plant strategy, 368 Product safety, 135 Product structure tree, 643-645 Production and Operations Management Society (POMS), Production control, 511-512 Production flexibility, 692-693 Production line, 233, 235 Production plan, 605 Production systems craft, 21, 28 lean, 26-28, 251 maintenance of, 720-725 mass, 22, 28 Productivity, 15,51-57 Program evaluation and review technique; See PERT (Program evaluation and review technique) Programmable automation, 223 Project, 222 Project champion, 770 Project management, 767-814; See also Scheduling behavioral aspects, 768-772 CPM, 775 crashing, 793-796 ethics 770 Oanttcharts, 731, 774-775 key decisions in, 768-769 life cycle, 772 PERT activity-on-arrow, 776-777, 780-784 activity-on-node, 776, 785 advantages of using, 797 algorithms, use of, 780-786 defined, 775 deterministic time estimates, 778-780 network conventions, 777-778 network diagram, 776-777 probabilistic time estimates, 786-792 slack time, computing of, 786 Project management-Colli project manager, role of, 697, 769-770 risk management, 773 simulation, 793 technology, 792-793 work breakdown structure, 774 Project Management Institute (PMI), 6, 770 Project models, ]8 Projected on hand, 647 Projects, 767 Promotion, 608 Przasnyski, Zbigniew H., 500 Ptak, Carol A., 526, 68] Public relations function, 12 PuJI system, 699-700 Pulliam, Susan, 97 Purchasing, 528-539; See also Supply chain management centralized versus decentralized, 533 certification of suppliers, 535 cycle of, 530 determining prices, 532-533 e-procurement, 538-539 EDI, 513-514, 538 ethics, 533-534 interfaces, 528-529 liT, 74 make or buy, 2] 8-219, 509, 531-532 negotiation, 532-533 outsourcing, 47, 2] 8,506,531-532 partnerships, 519, 536-537 relationship with suppliers, 535-536, 702-704 responsibility of, I], 507 selecting suppliers, 533-535 strategic all iances, 509 supplier management, 533-537 value analysis, 530-531 Purchasing cycle, 530 Push system, 699 Pyke, D.E, 636, 762 Pyzdek, Thomas, 414 QFD, 130, 150-]54 Quality, 393-414; See also Quality control; Total quality management (TQM) awards for, 406-409 Baldrige Award, 406-408 benefits of good, 400 certification of, 409 consequences of poor, 398-400 continuous improvement, 47], 696-697 costs of, 40] -402 defined, 394 determinants of, 396-398 dimensions of, 395-396 ethics and, 402 evolution of, 394-395 gurus, 402-406 importance of, 25 ISO 9000, 409-410 ISO 14000,412 kaizen, 47] responsibility for, 400-40 I strategies based on, 48 ,It:" 907 Quality-Colli TQM; See Total quality management (TQM) Quality at the source, 472 Quality-based strategy, 48 Quality circles, 406, 487-488 Quality control, 417-467; See also Quality acceptance sampling acceptable quality level, 460-461 average quality of inspected lots, 463-464 defined, 458 operating characteristic curve, 459-463 sampling plans, 458-459 control charts; See Control charts defined, 418 inspection, 418-422 lIT, 692 process capability, 438-442 process control, 418 quality function deployment (QFD), ]30, 150-154 service sector, 15 six-sigma, 471,488 statistical process control; See Statistical process control (SPC) total quality management (TQM); See Total quality management (TQM) Quality function deployment (QFD), 130, 150-154 Quality of conformance, 398, 421 Quality of design, 397-398 Quality transactions, 705 Quantitative approach to problem solving, 18-19 Quantitative models, 23 Quantity discounts, 558-563 Queue discipline, 824-825 Queuing models, infinite source, 825-839 Queuing techniques, ]8 Queuing theory, 818 Quick response, 513 Radford, O.S., 394 Radio frequency identification (RFID), 547 Ragsdale, ClitTT., 304 Rajan, Murli, 490 Random, 856 Random variations, 75-76,423 Range control chart, 428-430 Range of feasibility, 296 Range of optimality, 294 Raw materials, location decisions and, 359-360 Rea, Kathryn P., 500, 814 Readings The ABCs of ERP, 664-668 Aesop on Quality Systems, 410-412 Agi]e Manufacturing, 27 Baldrige Core Values and Concepts, 407-408 Benchmarking Corporate Websites of Fortune 500 Companies, 490 Box Maker Keeps the Lid on Lead Times, 709 908 INDEX Readings-Cont CalComp: Disaster Becomes Success, 474-475 Continuous Improvement on the FreeThrow Line, 484-485 Delivering the Goods, 510-511 Designing Supermarkets, 241 Developing the JIT Philosophy, 702 E-Procurement at IBM, 538-539 Economic Vitality, 63-64 Electric Car Drives Factory Innovations, 229-230 Five Ways to PUMP UP Your Champion, 771 Global Strategy: GM is Building Plants in Developing Nations to Woo New Markets, 372 The International Space Station Project (ISS), 766 JIT and Quality: A Perfect Fit, 708-709 JIT II, 711-712 Making Hotplates, 340-341 Making It (Almost) New Again, 145-147 Making Quality Pay: Return on Quality, 496-498 Manager's Journal: When Customer Research Is a Lousy Idea, 132-133 Managing Projects With a New View, 813-814 New U.S Factory Jobs Aren't in the Factory, 366-367 Not-So-Clear Choices: Should You Export, or Manufacture Overseas?, 362-365 The Nuts and Bolts of Japan's Factories, 685-686 Pedal Pushers, 694-695 Productivity Gains at Whirlpool, 60 Project Managers Have Never Been More Critical, 770-771 Quality Programs Don't Guarantee Results, 498-499 RFID,547 Romantic JIT and Pragmatic JIT, 687 Servicing Passenger Planes, 751 Stopped at a Light? Why Not Read This, You May Have Time, 851-852 Swimming Upstream, 499-500 Tour de Force, 225-227 Using Information to Speed Execution, 520 Vlasic on a Roll with Huge Pickle Slices, 133-134 Waiting - A New Popular Pastime: Miss Manners, 818 What Works to Cut CTD Risk, Improve Job Productivity?, 322-323 Wireless ERP, 668 Workplace Upheavals Seem to be Eroding Employees' Trust, 311-312 Would You Like That Rare, Medium or Vacuum-Packed?, 270-271 Receiving, 529 Recycling, 143-144,174 Redesign of products and services; See Design, of products and services Reduced transaction processing, 705 Redundancy, 159 Redundant constraints, 287 Reed, Michael E., 497 Reeser, Clayton, 813 Regenerative system, 654 655 Regional factors, location decisions and, 359-362, 368 Regression, 91-96 Regret, 200 Reimann, Curt W., 498 Reina, Dennis, 312 Reina, Michelle, 312 Reliability, 139-140, 159-164 Remanufacturing, 144 147 Reorder point (ROP), 564-571 Repetitive processing, 220-222 Replacement, of equipment or parts, 724 Research and development, 131-132 Reservation systems, 750 Response time for complaints, 49 Retail sector layout, 240-241 location planning, 369-371 superstores, 32 Return on investment (ROI), 543 Reverse engineering, 130 Risk, 198, 200-201 Risk management, 773 Ritter, Diane, 500 Roach, Stephen, 66 Robinson, Alan, 489 Robitaille, Denise E., 410 Robot, 223-225 Robust design, 140-141 Rolling horizon, 607, 652 Romig, H.G., 23, 394 Roos, Daniel, 34, 686n, 692n Rosenthal, Stephen R., 157 Ross, D.E, 66, 526 Ross, Joel E., 414 Ross, S.M., 456 Rough-cut capacity planning, 623 Rowe, G., 124 Run, 435 Run charts, 484, 486 Run tests, 435-438 Rush, 739 S/O (slack per operation), 739, 744-745 Sabath, Robert, 510 Sabolik, Jerome, 359 Safety, 321 Safety stock, 564 565, 654-655 Salegna, Gary, 473n, 500 Salesforce opinions, 74 Sampling distribution, 424 plans, 458-459 work, 331-333, 336 Sasser, W Earl, Jr., 157 Scale-based strategy, 44 Scanlan, Phillip M., 498 Scanlon plan, 335 Scanning, environmental, 46 Scatter diagrams, 479, 481-482 Schardt, David, 241 Schedule chart, 734 Scheduled receipts, 647 Sch.eduling, 728-762; See also Project )'management appointment system, 749 assignment model, 735 backward, 734 defined, 728 forward, 734 Gantt charts, 731, 774-775 high-volume systems, 728-729 Hungarian method, 736 intermediate-volume systems, 730-731 job-shop/low-volume systems, 731 loading, 731-738 multiple resources, 750 problems with, 748 reservation system, 750 sequencmg Johnson's rule, 745 makespan,740 priority rules, 739-745 sequence dependent setup times, 747-748 service system, 749-751 theory of constraints, 748-749 workforce, 750 Schematic models, 17 Scherkenbach, W.W., 414 Schiller, Zachary, 60 Schilling, Edward G., 456 Schlesinger, Leonard A., 157 Schmidt, C.P., 215 Schonberger, Richard J., 474, 693 Schorr, John E., 539 Schragenheim, Eli, 526, 681 Schroeder, Richard, 500 Scientific management, 21-22 SCOR (Supply Chain Operations Reference Model), 509 Scott, Gerald, 225 Seasonal indexes, 88 Seasonal relative, 88-89 Seasonal variations, 87-90, 179-180 Seasonality, 75-76,87-90 Sebastianelli, Rose, 473n, 490 Self-directed teams, 312-313 Sensitivity analysis, 204 206, 293-297 Sequencing, 738-748 Johnson's rule, 745 makes pan, 740 priority rules, 739-745 sequence dependent setup times, 747-748 Service blueprint, 230 Service design, 147-150; See also Design, of products and services Service level, 565, 568-571 Service-oriented organizations, Service sector aggregate planning and, 622-623 capacity planning, 183-184 designing for, 147-150 differentiation, 38 facilities layout, 240-241 versus goods, 14-16 location planning, 369-371 INDEX Service sector-Cont MRP, 660 operations, 14-16 process design, 230 231 productivity, 55 scheduling, 749-751 Setrakian, Scott, 363-364 Setup time reduction, 522, 691-692 Shadow price, 295 Shafer, Scott M., 814 Shaw, John c., 157 Sheffi, Yossi, 525 Shellenbarger, Sue, 311 Shewhart, Walter, 23, 394, 484 Shewhart cycle, 475 Shin, Hojung, 718 Short-term capacity needs, 179 Shortage costs, 548, 574 Shortages, 568-571 Shulman, L.E., 66 Shunk, Dan L., 273 Silver, E.A., 601, 636, 762 Silverstein, Judith, 517, 526 Simchi-Levi, David, 516, 526 Simchi-Levi, Edith, 516, 526 Simo chart, 3]8-319 Simple linear regression, 91-96, 107 Simplex, 290 Simulation, 854-872 advantages and disadvantages of using, 865-866 computer simulation, 864-865 defined, 854 Monte Carlo method,856-857 project management and, 793 steps in the process, 854-856 theoretical distribution, 861-864 Simulation models, 621-622 Simultaneous chart, 3] 8-319 Simultaneous development, 141 Singhal, Vinod R., 500 Single channel, 827-829 Single-period model, 574-577 Single-sampling plan, 458 Sipper, Daniel, 636 Sirkin, Harold, 504 Site-related factors, location planning and, 366-368 Six-sigma, 471, 488 Slack, 290, 777, 786 Slack per operation (S/O), 739, 744-745 Slater, Derek, 664, 681 Smith, Adam, 22 Smith, Gerald, 456, 500 Smith-Daniels, Dwight, 814 Smoothing, 80-81, 85-87, 107 Snook, David M., 146 SPC; See Statistical process control (SPC) Spearman, Mark L., 34, 124, 601, 636, 681, 718,762 Special variation, 423 Specialization, 309-310 Specifications, 438 439 Spence, Randy, 134 Spencer, Michael S., 718 SPT (shortest processing time), 739-744 Sriparavastu, Loknath, 718 Stalk, George, Jr., 46n, 49, 51, 66 Stamatis, D.H., 414 Standard elemental times, 329 Standard parts, 688 Standard time, 323 Standardization, 13,22,137-138,688 Statistical models, 18 Statistical process control (SPC), 421 438; See also Quality control control charts attributes, 426, 430 433 defined, 424 errors, 425 426 mean, 427 430 range, 428 430 run tests, 435 438 variables, 426 430 when to use, 434 435 control process, 422 423 variations and control, 423 424 Stauffer, Robert, 273 Steele, Daniel C., 44n Steeples, Marion M., 414 Steinberg, Neil, 454 Step costs, 186-187 Stevens, Tim, 694-695 Stevenson, William J., 2]5, 304, 387n, 390, 500,814,852 Stocking levels, 574-577 Stockouts, 544 Stoll, Henry, 195,273 Stopwatch time study, 324-329 Storage layout, 240 Straight piecework, 334 Straker, D., 500 Strategic alliances, 509 Strategic partnering, 519, 536-537 Strategic planning, 25 Strategies, 40-51 defined, 40 external facts affecting, 46 flexible factories, 46 focused factories, 46 formulation of, 44 48 functional, 42 goals, 41 42 growth, 48 internal factors affecting, 46 47 low cost labor, 44 missions, 40 41 operations, 43 44 organizational, 40 43 quality based, 48 scale-based, 44 tactics, 41 42 time-based, 48-51 Sturn, David, 311 Subcontracting, 610 Suboptimization, 198 Substitutability, of parts, 147 Sullivan, Robert S., 872 Summers, Donna, 414, 456, 476, 500 Superstores, 32 : 909 Suppliers audit, 535 certification of, 535, 702-703 JIT systems, 702-704 management of, 533-537 partnering with, 519, 536-537 quality and, 472 selection of, 533-535 strategic alliances, 509 Supply chain, 24-25, 504-505 Supply chain management, 504-526; See also Purchasing benefits of effective, 506-507 challenges, 520-523 defined, 504-505 distribution requirements planning, 514 e-commerce, 506, 515-517 electronic data interchange, 513-514, 538 elements of, 507-509 global supply chains, 515 JIT,514-5]5 keys to effective, 517-5]8 logistics and, 510 515 managing the chain, 507-510 need for, 506 performance measures, 509-510 steps in creating effective, 519 strategic, tactical, operating issues, 509-510 Supply chain optimization (SCO), 521 Surplus, 290 Surveys, consumer, 74 Sutton, Margaret, 814 Swanson, Christine A., 718 SWOT analysis, 44 System, 19 System design, 12; See also Process selection and design System operation, ] Systems approach, to decision making, 19 Tactics, 41 42 Taguchi, Genichi, 140 141,406 Tamimi, Nabil, 473n, 490 Tangible output, 14 Taxes, impact on location decisions, 361 Taylor, Bernard w., 215, 304 Taylor, Frederick Winslow, 21-22, 309, 394 Teams decision making, 488 incentive plans for, 335 problem solving, 471 self-managed, 312-313 Technology impact on operations, 25 management of, 230-232 Temperature and humidity, 319-320 Teplitz, Charles J., 352 Ternicko, John, 157 Terry, David, 475 Tersine, Richard J., 532n, 601 Theory of constraints, 748-749 Theory X, Y, Z, 23 Therbligs,316-318 Third party logistics, 515 Third-party maintainers (TPMs), 520 910 INDEX Three-sigma, 429 Time, 38-39, 44 Time based competition, 605 Time-based strategy, 48-51 Time-based system, 333-334 Time buckets, 642-643 Time estimates deterministic, 778-780 probabilistic, 786-792 Time fences, 628, 658 Time reduction, 25 Time series, 75 Time series data, forecasting methods using averaging, 76-81, 107 cycles, 75-76, 90-91 naive method, 75-76,107 seasonality, 75-76, 87-90 trend, 75-76,81-85, 107 trend adjusted exponential smoothing, 85-87, 103, 107 Time studies, 324-329 Time value of money, 188 Tippett, L.H.C., 23 Tolerances, 438 Torgersen, P.E., 352 Total cost of ownership (TCO), 665-666 Total productive maintenance, 722 Total quality management (TQM), 470 500 approach to, 470-471 continuous improvement, 471 , 696-697 criticisms of, 473 defined,470 elements of, 471-472 obstacles to implementing, 473 problem solving process, 475-477 process improvement, 477-478 tools benchmarking, 471, 488-489 brainstorming, 487 cause and effect diagrams, 479, 481, 483-484 check sheets, 478-481 control charts, 479, 481-482, 487 5W2H approach, 489 flowcharts, 478-480 histograms, 478-479, 481 interviewing, 488 Pareto analysis, 479-482 quality circles, 406, 487-488 run charts, 484, 486 scatter diagrams, 479, 481-482 Toyota Production System (TPS), 694 TQM; See Total quality management (TQM) Tracking signal, 98, 107 Trade-off decisions, 19 Traffic management, 512 Training, 251, 696 Transfer batch, 749 Transformation processes, 8-10 Transportation costs, 253-255, 359-360, 375 model, 375, 385-390 traffic management, 512 Treece, James B., 366-367 Trend analysis of, 81-85,107 defined,75-76 Trend-adjusted exponential smoothing, 85-87 Trend equation, 81-84 Tumay, K., 872 Turban, Efraim, 215 Turnover, of inventory, 544 Two-bin system, 546 Type I error, 425-426 Type II errors, 426 U-shaped layouts, 235 UCC,135 Ulrich, Karl T., 157 Uncertainty, 198-200 Uniform Commercial Code (UCC), 135 Universal Product Code (UPC), 513, 546-547 Upton, David, 195, 273 Value-added, 8-9 Value analysis, 530-531 Value chains, 504-505 Van Nimwegen, Harm, 413 Vargus, Vicente, 762 Variable costs, 185-187 Variables, 426-430 Variations and control, in SPC, 423-424 Velocity, 519-520 Vendor analysis, 535 Vendors; See Suppliers Ventilation, 320 Vertical loading, 310-311, 732 Vertical skills, 335 Villa, A., 636 Visual JIT systems, 700-70 I Viswanathan, S., 525 Vollmann, Thomas E., 601, 636, 681, 705-706,718, 745n, 762 Vranizan, Michelle, 474 Wagar, Keith, 514 Wages, 333-336 Waiting lines, 818-852 anal ysis of, 189 arrival and service patterns, 822-824 cost analysis, 833-834 finite source models, 839-844 goals of analysis for, 819-821 infinite source model, 825-839 basic relationship, 826-827 multiple channel, 829-833 multiple priorities, 835-839 single channel, 827-829 managerial implications of, 819 maximum line length, 834-835 multiple priorities, 835-839 number of servers/channels, 822 performance measures, 825 population source, 821 queue discipline, 824-825 Waiting lines-Cant queuing theory, 818 reasons for, 819 system characteristics, 821-825 '"Walker, M.R., 775 Walker, Stanley, 709 Walker, William T., 526 Ward, Stephen, 814 Ware, Norman, 636 Warehousing cross-docking, 522 DRP, 514 layout, 240 Warranties, 135 Wartzman, Rick, 60 Watt, James, 21 Weatherford, Larry R., 215 Weighted average, 78-80 Weinstein, Bob, 770 Werner, Helmet, 367 Wester, L., 273 Whang, Seunjin, 526 Wheatley, Malcolm, 681 Wheeler, John, 255n White, Daryl, 511 White, John A., 273, 384 White, Richard E., 718 Whitney, Eli, 22 Whybark, D Clay, 601, 636, 681, 706, 718, 762 Wiesenborn, Gary, 359 Wight, Oliver w., 596, 641, 681 Wilkerson, Ella Mae, 134 Wilson, J Holton, 103, 124 Wilson, Larry w., 601 Winkler, David E., 708 Wireman, Terry, 725 Womack, James P., 34, 686n, 692n Woolsey, Gene, 542 Work breakdown structure, 774 Work breaks, 320-321 Work measurement, 323-333; See also Job design predetermined time standards, 329-330 standard elemental times, 329 stopwatch time study, 324-329 work sampling, 331-333, 336 Work system design; See Job design Worker-machine chart, 314,317 Workers as assets, 695 Workforce, scheduling of, 750 Working conditions, 318-323 Workstation, 243, 250-251, 738 Wright, G., 124 Yablonsky, Dennis, 367 Zangwill, Willard 1.,132-133 Zenger, John, 341 Zero defects, 395 Zipkin, Paul H., 687, 718 Zucco, James, 359 Zuckerman, A., 414 ... field of operations management It describes the na- function of a business organization ture and scope of operations management, and how operations management relates to other parts of management. .. Study Operations Management? Careers in Operations Management, ~~'"! Functions within Business Organizations, Operations, Finance, Marketing, 10 Other Functions, 11 The Scope of Operations Management, ... of Operations Management Third Edition Dobler and Burt Purchasing and Supply Management Sixth Edition Flaherty Global Operations Management First Edition Fitzsimmons and Fitzsimmons Service Management: