Operations Management 10Th Edition Nigel Slack Full Chapter
Operations Management 10Th Edition Nigel Slack Full Chapter
Nigel Slack
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OPERATIONS MANAGEMENT
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flourishes, so do people.
Nigel Slack
Alistair Brandon-Jones
Nicola Burgess
PEARSON EDUCATION LIMITED
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United Kingdom
Tel: +44 (0)1279 623623
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10 9 8 7 6 5 4 3 2 1
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PART ONE
Directing the operation
1 Operations management
2 Operations performance
3 Operations strategy
4 Managing product and service innovation
5 The structure and scope of supply
PART TWO
Designing the operation
6 Process design
7 The layout and look of facilities
8 Process technology
9 People in operations Supplement to Chapter 9 — Work study
PART THREE
Deliver
PART FOUR
Development
15 Operations improvement
16 Lean operations
17 Quality management Supplement to Chapter 17 — Statistical
process control (SPC)
18 Managing risk and recovery
19 Project management
Glossary
Index
Credits
CONTENTS
PART ONE
1 Operations management
Introduction
1.1 What is operations management?
1.2 Why is operations management important in all types of organisations?
1.3 What is the input–transformation–output process?
1.4 What is the process hierarchy?
1.5 How do operations (and processes) differ?
1.6 What do operations managers do?
Summary answers to key questions
Case study: Kaston-Trenton Service (KTS)
Problems and applications
Selected further reading
Notes on chapter
2 Operations performance
Introduction
2.1 Why is operations performance vital in any organisation?
2.2 How is operations performance judged at a societal level?
2.3 How is operations performance judged at a strategic level?
2.4 How is operations performance judged at an operational level?
2.5 How can operations performance be measured?
2.6 How do operations performance objectives trade off against each other?
Summary answers to key questions
Case study: IKEA looks to the future
Problems and applications
Selected further reading
Notes on chapter
3 Operations strategy
Introduction
3.1 What is strategy and what is operations strategy?
3.2 How does operations strategy align with business strategy (top-down)?
3.3 How does operations strategy align with market requirements (outside-in)?
3.4 How does operations strategy align with operational experience (bottom-up)?
3.5 How does operations strategy align with operations resources (inside-out)?
3.6 How are the four perspectives of operations strategy reconciled?
3.7 How can the process of operations strategy be organised?
Summary answers to key questions
Case study: McDonald’s: half a century of growth
Problems and applications
Selected further reading
Notes on chapter
6 Process design
Introduction
6.1 What is process design?
6.2 What should be the objectives of process design?
6.3 How do volume and variety affect process design?
6.4 How are processes designed in detail?
Summary answers to key questions
Case study: The Action Response Applications Processing Unit (ARAPU)
Problems and applications
Selected further reading
Notes on chapter
9 People in operations
Introduction
9.1 Why are people so important in operations management?
9.2 How can the operations function be organised?
9.3 How do we go about designing jobs?
9.4 How are work times allocated?
Summary answers to key questions
Case study: Grace faces (three) problems
Problems and applications
Selected further reading
Notes on chapter
DELIVER
11 Capacity management
Introduction
11.1 What is capacity management?
11.2 How is demand measured?
11.3 How is capacity measured?
11.4 How is the demand side managed?
11.5 How is the supply side managed?
11.6 How can operations understand the consequences of their capacity
management decisions?
Summary answers to key questions
Case study: FreshLunch
Problems and applications
Selected further reading
Notes on chapter
13 Inventory management
Introduction
13.1 What is inventory?
13.2 Why should there be any inventory?
13.3 How much should be ordered? The volume decision
13.4 When should an order be placed? The timing decision
13.5 How can inventory be controlled?
Summary answers to key questions
Case study: Supplies4medics.com
Problems and applications
Selected further reading
Notes on chapter
PART FOUR
DEVELOPMENT
15 Operations improvement
Introduction
15.1 Why is improvement so important in operations management?
15.2 What are the key elements of operations improvement?
15.3 What are the broad approaches to improvement?
15.4 What techniques can be used for improvement?
15.5 How can the improvement process be managed?
Summary answers to key questions
Case study: Sales slump at Splendid Soup Co.
Problems and applications
Selected further reading
Notes on chapter
16 Lean operations
Introduction
16.1 What is lean?
16.2 How does lean consider flow?
16.3 How does lean consider (and reduce) waste?
16.4 How does lean consider improvement?
16.5 How does lean consider the role of people?
16.6 How does lean apply throughout the supply network?
Summary answers to key questions
Case study: St Bridget’s Hospital: seven years of lean
Problems and applications
Selected further reading
Notes on chapter
17 Quality management
Introduction
17.1 What is quality and why is it so important?
17.2 What steps lead towards conformance to specification?
17.3 What is total quality management (TQM)?
Summary answers to key questions
Case study: Rapposcience Labs
Problems and applications
Selected further reading
Notes on chapter
19 Project management
Introduction
19.1 What are projects?
19.2 What is project management?
19.3 How is the project environment understood?
19.4 How are projects defined?
19.5 How are projects planned?
19.6 How are projects controlled and learned from?
Summary answers to key questions
Case study: Kloud BV and Sakura Bank K.K.
Problems and applications
Selected further reading
Notes on chapter
Glossary
Index
Credits
Companion Website
For open-access student resources specifically written to complement this
textbook and support your learning, please visit
go.pearson.com/uk/he/resources
Lecturer Resources
For password-protected online resources tailored to support the use of this
textbook in teaching, please visit go.pearson.com/uk/he/resources
Pearson’s Commitment to Diversity,
Equity and Inclusion
Pearson is dedicated to creating bias-free content that reflects
the diversity, depth and breadth of all learners’ lived
experiences. We embrace the many dimensions of diversity
including, but not limited to, race, ethnicity, gender, sex, sexual
orientation, socioeconomic status, ability, age and religious or
political beliefs.
Distinctive features
Clear structure
The structure of the text uses the ‘4Ds’ model of operations management
that distinguishes between the strategic decisions that govern the direction
of the operation, the design of the processes and operations that create
products and services, planning and control of the delivery of products and
services, and the development, or improvement, of operations.
Illustrations-based
Operations management is a practical subject and cannot be taught
satisfactorily in a purely theoretical manner. Because of this we have used
short ‘Operations in practice’ examples that explain some of the issues
faced by real operations.
Worked examples
Operations management is a subject that blends qualitative and quantitative
perspectives; worked examples are used to demonstrate how both types of
technique can be used.
Critical commentaries
Not everyone agrees about what is the best approach to the various topics
and issues with operations management. This is why we have included
‘critical commentaries’ that pose alternative views to the ones being
expressed in the main flow of the text.
Responsible operations
In every chapter, under the heading of ‘Responsible operations’, we
summarise how the topic covered in the chapter touches upon important
social, ethical and environmental issues.
Case studies
Every chapter includes a case study suitable for class discussion. The cases
are usually short enough to serve as illustrations, but have sufficient content
also to serve as the basis of case sessions.
We could say that the best rule for getting a better grade is to be good. I
mean really, really good! But there are plenty of us who, while fairly good,
don’t get the grade we really deserve. So, if you are studying operations
management, and you want a really good grade, try following these simple
steps:
Step 1 Practise, practise, practise. Use the ‘Key questions’ and the
‘Problems and applications’ to check your understanding.
Step 2 Remember a few key models and apply them wherever you can.
Use the diagrams and models to describe some of the examples that are
contained within the chapter.
Step 5 Research widely around the topic. Use websites that you trust –
don’t automatically believe what you read. You’ll get more credit for using
references that come from genuine academic sources.
Step 6 Use your own experience. Every day, you’re experiencing an
opportunity to apply the principles of operations management. Why is the
queue at the airport check-in desk so long? What goes on on in the kitchen
of your favourite restaurant?’
Step 7 Always answer the question. Think ‘what is really being asked
here? What topic or topics does this question cover?’ Find the relevant
chapter or chapters, and search the key questions at the beginning of each
chapter and the summary at the end of each chapter to get you started.
Step 8 Take account of the three tiers of accumulating marks for your
answers:
(a) First, demonstrate your knowledge and understanding. Make full use
of the text to find out where you need to improve.
(b) Second, show that you know how to illustrate and apply the topic. The case studies
and ‘Operations in practice’ sections provide many different examples.
(c) Third, show that you can discuss and analyse the issues critically. Use the critical
commentaries within the text to understand some of the alternative viewpoints.
Generally, if you can do (a) you will pass; if you can do (a) and (b) you will
pass well; and if you can do all three, you will pass with flying colours!
Step 9 Remember not only what the issue is about, but also understand
why! Try to understand why the concepts and techniques of operations
management are important, and what they contribute to an organisation’s
success. Your new-found knowledge will stick in your memory, allow you
to develop ideas and enable you to get better grades.
Step 10 Start now! Don’t wait until two weeks before an assignment is
due. Read on, and GOOD LUCK!
During the preparation of the 10th edition of this text (and previous
editions) we have received an immense amount of help from friends and
colleagues in the operations management community. In particular,
everybody who has attended one of the regular ‘faculty workshops’
deserves thanks for the many useful comments. The generous sharing of
ideas from these sessions has influenced this and all the other OM texts that
we prepare. Our thanks go to everyone who attended these sessions and
other colleagues who have helped us. It is, to some extent, invidious to
single out individuals – but we are going to.
We thank Pär Åhlström of Stockholm School of Economics, James
Aitken of University of Surrey,Eamonn Ambrose of University College
Dublin, Erica Ballantyne of Sheffield University, Andrea Benn of
University of Brighton, Yongmei Bentley of the University of Bedfordshire,
Helen Benton of Anglia Ruskin University, Ran Bhamra of Loughborough
University, Tony Birch of Birmingham City University, Briony Boydell of
University of Portsmouth, Emma Brandon-Jones, John K Christiansen of
Copenhagen Business School, Philippa Collins of Heriot-Watt University,
Paul Coughlan of Trinity College Dublin, Doug Davies of University of
Technology, Sydney, J.A.C. de Haan of Tilburg University, Ioannis
Dermitzakis of Anglia Ruskin University, Stephen Disney of Cardiff
University, Carsten Dittrich of the University of Southern Denmark, Tony
Dromgoole of the Irish Management Institute, David Evans of Middlesex
University, Ian Evans of Sunderland University, Margaret Farrell of Dublin
Institute of Technology, Andrea Foley of Portsmouth University, Paul
Forrester of Keele University, Abhijeet Ghadge of Heriot Watt University,
Andrew Gough of Northampton University, Ian Graham of Edinburgh
University, John Gray of The Ohio State University, Alan Harle of
Sunderland University, Catherine Hart of Loughborough Business School,
Susan Helper of Case Western Reserve University, Graeme Heron of
Newcastle Business School, Steve Hickman of University of Exeter, Chris
Hillam of Sunderland University, Ian Holden of Bristol Business School,
Mickey Howard of Exeter University, Stavros Karamperidis of Heriot Watt
University, Tom Kegan of Bell College of Technology, Hamilton, Benn
Lawson of the University of Cambridge, Xiaohong Li of Sheffield Hallam
University, John Maguire of the University of Sunderland, Charles Marais
of the University of Pretoria, Lynne Marshall, Nottingham Trent University,
Roger Maull of Exeter University, Bart McCarthy of Nottingham
University, Peter McCullen of University of Brighton, John Meredith Smith
of EAP, Oxford, Joe Miemczyk of ESCP Business School Europe, Michael
Milgate of Macquarie University, Keith Millar of Ulster University, Keith
Moreton of Staffordshire University, Phil Morgan of Oxford Brooks
University, Adrian Morris of Sunderland University, Nana Nyarko of
Sheffield Hallam University, Beverly Osborn of The Ohio State University,
John Pal of Manchester Metropolitan University, Sofia Salgado Pinto of the
Católica Porto Business School, Gary Priddis of University of Brighton,
Carrie Queenan of University of South Carolina, Gary Ramsden of
University of Lincoln, Steve Robinson of Southampton Solent University,
Frank Rowbotham of University of Birmingham, James Rowell of
University of Buckingham, Hamid Salimian of University of Brighton,
Sarah Schiffling of University of Lincoln, Alex Skedd of Northumbria
Business School, Andi Smart of Exeter University, Nigel Spinks of the
University of Reading, Dr Ebrahim Soltani of the University of Kent, Rui
Soucasaux Sousa of the Católica Porto Business School, Martin Spring of
Lancaster University,James Stone of Aston University, R. Stratton of
Nottingham Trent University, Ali Taghizadegan of University of Liverpool,
Kim Hua Tan of the University of Nottingham, Dr Nelson Tang of the
University of Leicester, Meinwen Taylor of South Wales University,
Christos Tsinopoulos of Durham University, David Twigg of Sussex
University, Arvind Upadhyay of University of Brighton, Helen Valentine of
the University of the West of England, Andy Vassallo of University of East
Anglia, Vessela Warren of University of Worcester, Linda Whicker of Hull
University, John Whiteley of Greenwich University, Bill Wright of BPP
Professional, Ying Xie of Anglia Ruskin University, Des Yarham of
Warwick University, Maggie Zeng of Gloucestershire University and Li
Zhou of University of Greenwich University.
In this edition we have received specific help with the new case studies.
Our grateful thanks go to Vaggelis Giannikas, University of Bath, Jas Kalra,
Newcastle University, Jens Roehrich, University of Bath, Nigel Spinks,
Henley and Brian Squire, University of Bath.
Our academic colleagues in the Operations Management Group at
Warwick Business School and Bath University also helped, both by
contributing ideas and by creating a lively and stimulating work
environment.
At Warwick, thanks go to Vikki Abusidualghoul, Daniella Badu, Haley
Beer, Mehmet Chakkol, Altricia Dawson, Mark Johnson, Anna Michalska,
Pietro Micheli, Giovanni Radaelli, Ross Ritchie, Rhian Silvestro, and Chris
Voss.
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important affairs arise, to invite the head official to be
present in the Executive Council whose department is more
directly concerned with the subject to be treated of. The said
head official shall then have a vote in the Executive Council,
be equally responsible for the resolution taken, and sign it
along with the others.
ARTICLE 83.
According to the intention of Article 82 the following shall
be considered "Head Officials": The State Attorney, Treasurer,
Auditor, Superintendent of Education, Orphan-Master, Registrar
of Deeds, Surveyor-General, Postmaster-General, Head of the
Mining Department, Chief Director of the Telegraph Service,
and Chief of Public Works.
ARTICLE 84.
The President shall be Chairman of the Executive Council, and
in case of an equal division of votes have a casting vote. For
the ratification of sentences of death, or declarations of
war, the unanimous vote of the Executive Council shall be
requisite for a decision. …
ARTICLE 87.
All resolutions of the Executive Council and official letters
of the President must, besides being signed by him, also be
signed by the Secretary of State. The latter is at the same
time responsible that the contents of the resolution, or the
letter, is not in conflict with the existing laws.
ARTICLE 88.
The two enfranchised burghers or members of the Executive
Council contemplated by Article 82 are chosen by the Volksraad
for the period of three years, the Commandant-General for ten
years; they must be members of a Protestant Church, have had
no sentence in a criminal court to their discredit, and have
reached the age of thirty years.
ARTICLE 89.
The Secretary of State is chosen also by the Volksraad, but is
appointed for the period of four years. On resignation or
expiration of his term he is re-eligible. He must be a member
of a Protestant Church, have had no sentence in a criminal
court to his discredit, possess fixed property in the
Republic, and have reached the age of thirty years. …
ARTICLE 93.
The military force consists of all the men of this Republic
capable of bearing arms, and if necessary of all those of the
natives within its boundaries whose chiefs are subject to it.
ARTICLE 94.
Besides the armed force of burghers to be called up in times
of disturbance or war, there exists a general police and corps
of artillery, for which each year a fixed sum is drawn upon
the estimates.
ARTICLE 95.
The men of the white people capable of bearing arms are all
men between the ages of sixteen and sixty years; and of the
natives, only those which are capable of being made
serviceable in the war.
ARTICLE 96.
For the subdivision of the military force the territory of
this Republic is divided into field-cornetcies and districts.
…
ARTICLE 97.
The men are under the orders of the following officers,
ascending in rank: Assistant Field-Cornets, Field-Cornets,
Commandants, and a Commandant-General.
CONSTITUTION OF SWITZERLAND:
Amendments.
{170}
CONSTITUTION OF UTAH.
COOMASSIE,
KUMASSI:
Occupation by the British.
Siege and relief.
COPTIC CHURCH:
Authority of the Pope re-established.
COREA.
COSTA RICA.
CRETE:
Recent archæological explorations.
Supposed discovery of the Palace of Minos and
the Cretan Labyrinth.
Fresh light on the origin of the Alphabet.
CRETE: A. D. 1896.
Conflict between Christians and Mussulmans,
and its preceding causes.
CRETE: A. D. 1897.
Fresh conflicts.
Reports of the British Consul-General and others.
Greek interference and demands for annexation to Greece.
Action of the Great Powers.
Blockade of the island.
CRETE: A. D. 1897.
Withdrawal of Greek troops.
Acceptance of autonomy by the Greek government.
CRETE: A. D. 1897-1898.
Prolonged anarchy, and blockade by the Powers.
Final departure of Turkish troops and officials.
Government established under Prince George of Greece.
CRETE: A. D. 1901.
Successful administration of Prince George of Greece.
CRISPI, Signor:
Ministry.
CRISPI, Signor:
Parliamentary investigation of charges against.
See (in this volume)
ITALY: A. D. 1898 (MARCH-JUNE).
CROKER, "Boss."
CROMER, Viscount:
Administration in Egypt.
----------CUBA: Start--------
Map of Cuba and West Indies.
CUBA: A. D. 1868-1885.
Ten years of insurrection.
The United States and Spain.
The Affair of the Virginius.
End of Slavery.
"In February, 1873, when King Amadeus resigned his crown and a
republic was proclaimed in Spain, the United States made haste to
give the new government recognition and support, which led to
friendly relations between the two countries for a time, and
promised happy results. The Spanish republicans were being
urged to give the Cubans self-government and end slavery in
the whole Spanish domain, and they were lending, at least, a
considerate ear to the advice. But negotiation on that topic
was soon disturbed. On October 31, 1873, the steamer
'Virginius,' sailing under American colors and carrying a
United States registry, was captured on the high seas by the
'Tornado,' a Spanish war vessel, and on the afternoon of the
first of November taken into the port of Santiago de Cuba. The
men and supplies she bore were bound for the insurgents, but
the capture did not occur in Cuban waters. General Burriel,
the commandant of the city, summoned a court-martial, and, in
spite of the protests of the American consul, condemned to
death—at the first sitting—four of the passengers—General W.
A. C. Ryan, an Irish patriot, and three Cubans. They were shot
on the morning of November 4. On the 7th twelve other
passengers were executed, and on the 8th Captain Fry and his
entire crew, numbering 36, making the total number of
executions 53." This barbarous procedure caused hot excitement
in the United States, and demands for reparation were made so
sharply that the two countries came near to war. In the end it
was shown that the "Virginius" was sailing under the American
flag without right, being owned by Cubans and controlled by
them. The vessel was surrendered, however, but foundered off
Cape Fear, while being conveyed to the United States. Her
surviving passengers were released, and an indemnity was paid
for all who were put to death. The brutal officer who took
their lives was never brought to justice, though his
punishment was promised again and again. On the settlement of
the Virginius question, the government of the United States
resumed its efforts to wring concessions to the Cubans from
Spain, and sought to have its efforts supported by Great
Britain and other European powers. Cold replies came from all
the cabinets that were approached. At the same time, the
Spanish government met the demand from America with promises
so lavish (April, 1876), going so far in appearance towards
all that had been asked, that no ground for intervention
seemed left. The act of Secretary Fish, in proposing
intervention to foreign powers, was sharply criticised as a
breach of the Monroe doctrine; but he made no defense.
J. H. Latané,
The Diplomatic Relations of the United States
and Spanish America,
chapter 3.
CUBA: A. D. 1895.
Insurrection renewed.
Early in 1895 a new uprising of the oppressed Cubans was
begun, and on the 7th of December, in that year, T. Estrada
Palma, writing as their authorized representative, presented
to the State Department at Washington a statement setting
forth the causes of the revolt and describing its state of
organization at that time. The causes, he wrote, "are
substantially the same as those of the former revolution,
lasting from 1868 to 1878, and terminating only on the
representation of the Spanish Government that Cuba would be
granted such reforms as would remove the grounds of complaint
on the part of the Cuban people. Unfortunately the hopes thus
held out have never been realized. The representation which
was to be given the Cubans has proved to be absolutely without
character; taxes have been levied anew on everything
conceivable; the offices in the island have increased, but the
officers are all Spaniards; the native Cubans have been left
with no public duties whatsoever to perform, except the
payment of taxes to the Government and blackmail to the
officials, without privilege even to move from place to place
in the island except on the permission of the governmental
authority. Spain has framed laws so that the natives have
substantially been deprived of the right of suffrage. The
taxes levied have been almost entirely devoted to support the
army and navy in Cuba, to pay interest on the debt that Spain
has saddled on the island, and to pay the salaries of the vast
number of Spanish officeholders, devoting only $746,000 for
internal improvements out of the $26,000,000 collected by tax.
No public schools are within reach of the masses for their
education. All the principal industries of the island are
hampered by excessive imposts. Her commerce with every country
but Spain has been crippled in every possible manner, as can
readily be seen by the frequent protests of shipowners and
merchants. The Cubans have no security of person or property.
The judiciary are instruments of the military authorities.
Trial by military tribunals can be ordered at any time at the
will of the Captain-General. There is, beside, no freedom of
speech, press, or religion. In point of fact, the causes of
the Revolution of 1775 in this country were not nearly as
grave as those that have driven the Cuban people to the
various insurrections which culminated in the present
revolution. …
{172}
{173}
CUBA: A. D. 1896-1897.
Captain-General Campos succeeded by General Weyler.
Weyler's Concentration Order and other edicts.
Death of Antonio Maceo.
Weyler succeeded by Blanco.
"Article 1.
All inhabitants of the district of Sancti Spiritus and the
provinces of Puerto Principe and Santiago de Cuba will have to
concentrate in places which are the headquarters of a
division, a brigade, a column, or a troop, and will have to be
provided with documentary proof of identity, within eight days
of the publication of this proclamation in the municipalities.
"Article 2.
To travel in the country in the radius covered by the columns
in operation, it is absolutely indispensable to have a pass
from the mayor, military commandants, or chiefs of
detachments. Anyone lacking this will be detained and sent to
headquarters of divisions or brigades, and thence to Havana,
at my disposition, by the first possible means. Even if a pass
is exhibited, which is suspected to be not authentic or granted
by authority to person with known sympathy toward the
rebellion, or who show favor thereto, rigorous measures will
result to those responsible.
"Article 3.
All owners of commercial establishments in the country
districts will vacate them, and the chiefs of columns will
take such measures as the success of their operations dictates
regarding such places which, while useless for the country's
wealth, serve the enemy as hiding places in the woods and in
the interior.
"Article 4.
All passes hitherto issued hereby become null and void."