Operations Management
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Discover how operations shape every industry —from AI-driven innovation to the human decisions at its core. Operations Management, by Nigel Slack, Alistair Brandon-Jones and Nicola Burgess, is a comprehensive and essential guide which gives you the tools to design, deliver, and improve processes so you can boost performance in any organization. Packed with fresh case studies and examples, this edition brings theory to life and helps students connect with the real world of business.
Focused on practical decision-making, this bestselling textbook takes you through the ‘4 Ds’ of Operations management: direction, design, delivery, and development. Real-world ‘Operations in Practice’ examples, short cases, and end-of-chapter case studies show how concepts work whilst worked examples blend quantitative and qualitative analysis. Whether you are studying for a business degree or building professional skills, you will finish with a confident, real-world toolkit for analysing operations, improving processes, and delivering results.
From services to manufacturing, explore how people drive operations—and how operations drive success. Pair this text with MyLab Management MyLab is the teaching and learning platform available to support this title. By combining trusted author content with digital tools and a flexible learning experience, MyLab Management personalises learning and assessment to help improve results. MyLab Management is not included with this title.
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- Pearson International Content
- 9781292491714
- 9781292759449
- ePub
- 11
- Nigel Slack; Alistair Brandon-Jones; Nicola Burgess
- English
- 2026-05-14
- 100
- 2
- 2
Kaflar
- Welcome
- Cover
- Half title
- Mission Statement
- Title page
- Copyright page
- Preface
- Preface
- Why you need to study operations management
- The aim of this text
- Who should use this text?
- Distinctive features
- To the instructor . . .
- To the student . . .
- Ten steps to getting a better grade in operations management
- About the Authors
- Acknowledgements
- Part 1: Directing the operation
- Directing the operation
- 1: Operations management
- Operations management
- 1.1: What is operations management?
- 1.1: What is operations management?
- Operations in Practice: LEGOLAND® and LEGO® both rely on their operations managers
- Operations in the organisation
- Quiz 1.1: What is operations management?
- 1.2: Why is operations management important in all types of organisation?
- 1.2: Why is operations management important in all types of organisation?
- Operations management in the smaller organisation
- Operations management in not-for-profit organisations
- Operations in Practice: MSF operations provide medical aid to people in danger
- The new operations agenda
- Quiz 1.2: Why is operations management important in all types of organisation?
- 1.3: What is the input–transformation–output process?
- 1.3: What is the input–transformation–output process?
- Inputs to the process – transformed resources
- Inputs to the process – transforming resources
- Outputs from the process
- Servitisation
- Operations in Practice: Renting is the new owning – but it still relies on operations management
- Customers
- SIPOC analysis
- Quiz 1.3: What is the input–transformation–output process?
- 1.4: What is the process hierarchy?
- 1.4: What is the process hierarchy?
- Critical Commentary: Internal customers and suppliers
- Operations management is relevant to all parts of the business
- Operations in Practice: Take three hairdressers
- Quiz 1.4: What is the process hierarchy?
- 1.5: How do operations (and processes) differ?
- 1.5: How do operations (and processes) differ?
- The volume dimension
- The variety dimension
- The variation dimension
- The visibility dimension
- Operations in Practice: Two very different hospitality operations
- The implications of the Four Vs of operations processes
- Worked Example: Two very different hospitality operations positioned on the Four Vs scales
- Quiz 1.5: How do operations (and processes) differ?
- 1.6: What do operations managers do?
- 1.6: What do operations managers do?
- Operations management impacts social–environmental sustainability
- The model of operations management
- Critical Commentary: Uncomfortable with ‘process’?
- Quiz 1.6: What do operations managers do?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Kaston-Trenton Service (KTS)
- Case Study: Kaston-Trenton Service (KTS)
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 2: Operations performance
- Operations performance
- 2.1: Why is operations performance vital in any organisation?
- 2.1: Why is operations performance vital in any organisation?
- Performance at three levels
- Quiz 2.1: Why is operations performance vital in any organisation?
- 2.2: How is operations performance judged at a societal level?
- 2.2: How is operations performance judged at a societal level?
- Responsible operations
- The social bottom line (people) – the social account, measured by the impact of the operation on the quality of people’s lives
- The environmental bottom line (planet) – the environmental account, measured by the environmental impact of the operation
- Case Example: Sustainability performance in two operations
- The economic bottom line (profit) – the economic account, measured by profitability, return on assets, etc., of the operation
- Critical Commentary: The triple bottom line
- Quiz 2.2: How is operations performance judged at a societal level?
- 2.3: How is operations performance judged at a strategic level?
- 2.3: How is operations performance judged at a strategic level?
- Operations management affects costs
- Operations management affects revenue
- Operations management affects the required level of investment
- Operations management affects the risk of operational failure
- Operations management affects the ability to build the capabilities on which future innovation is based
- Quiz 2.3: How is operations performance judged at a strategic level?
- 2.4: How is operations performance judged at an operational level?
- 2.4: How is operations performance judged at an operational level?
- Why is quality important?
- Operations in Practice: Milking cheese
- Why is speed important?
- Operations in Practice: Speeding response to save lives
- Why is dependability important?
- Operations in Practice: Your train is running late
- Why is flexibility important?
- Why is cost important?
- Operations in Practice: How do they do it at the price?
- The polar representation of performance objectives
- Quiz 2.4: How is operations performance judged at an operational level?
- 2.5: How can operations performance be measured?
- 2.5: How can operations performance be measured?
- What factors should be included as performance measures?
- Which are the most important performance measures?
- What detailed measures should be used?
- The balanced scorecard approach
- Quiz 2.5: How can operations performance be measured?
- 2.6: How do operations performance objectives trade off against each other?
- 2.6: How do operations performance objectives trade off against each other?
- Operations in Practice: LEGO’s sustainability trade-off
- Trade-offs and the efficient frontier
- Quiz 2.6: How do operations performance objectives trade off against each other?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: IKEA looks to the future
- Case Study: IKEA looks to the future
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 3: Operations strategy
- Operations strategy
- 3.1: What is strategy and what is operations strategy?
- 3.1: What is strategy and what is operations strategy?
- Operations in Practice: Sandwich makers react to a changing environment
- Using operations strategy to articulate a vision for the contribution of operations
- Critical Commentary: What role should operations play?
- The ‘context’, ‘content’ and ‘process’ of operations strategy
- The four perspectives on operations strategy
- Quiz 3.1: What is strategy and what is operations strategy?
- 3.2: How does operations strategy align with business strategy (top-down)?
- How does operations strategy align with business strategy (top-down)?
- Correspondence and coherence
- The concepts of the ‘business model’ and the ‘operating model’
- Worked Example: Innovation at Micraytech (Part 1, top-down)
- Quiz 3.2: How does operations strategy align with business strategy (top-down)?
- 3.3: How does operations strategy align with market requirements (outside-in)?
- 3.3: How does operations strategy align with market requirements (outside-in)?
- How market requirements influence operations strategy performance objectives
- Order winners, qualifiers and less important factors
- Operations in Practice: Dow Silicones’ operations strategy
- The impact of product/service differentiation on market requirements
- The impact of the product/service life cycle on market requirements
- Worked Example: Innovation at Micraytech (Part 2, outside-in)
- Quiz 3.3: How does operations strategy align with market requirements (outside-in)?
- 3.4: How does operations strategy align with operational experience (bottom-up)?
- 3.4: How does operations strategy align with operational experience (bottom-up)?
- Worked Example: Innovation at Micraytech (Part 3, bottom-up)
- The reinforcing effect of top-down and bottom-up perspectives on operations strategy
- Quiz 3.4: How does operations strategy align with operational experience (bottom-up)?
- 3.5: How does operations strategy align with operations resources (inside-out)?
- 3.5: How does operations strategy align with operations resources (inside-out)?
- Strategic resources and sustainable competitive advantage
- Operations in Practice: Ocado sells its operations knowledge
- Understanding existing capabilities and constraints
- Operations in Practice: The rise of intangibles
- Scarce, not very mobile, difficult to imitate or substitute for
- Structural and infrastructural decisions
- Worked Example: Innovation at Micraytech (Part 4, inside-out)
- Quiz 3.5: How does operations strategy align with operations resources (inside-out)?
- 3.6: How are the four perspectives of operations strategy reconciled?
- 3.6: How are the four perspectives of operations strategy reconciled?
- The ‘line of fit’ between market requirements and operations capabilities
- Using the importance–performance matrix to determine operations strategy improvement priorities
- Worked Example: YIR Laboratories
- Quiz 3.6: How are the four perspectives of operations strategy reconciled?
- 3.7: How can the process of operations strategy be organised?
- 3.7: How can the process of operations strategy be organised?
- Critical Commentary: The value of stage models
- Operations strategy formulation
- Operations strategy implementation
- Operations strategy monitoring
- Operations strategy control
- Quiz 3.7: How can the process of operations strategy be organised?
- Responsible operations
- Responsible operations
- Critical Commentary: Corporate social responsibility
- Summary answers to key questions
- Summary answers to key questions
- Case Study: McDonald’s – half a century of growth
- Case Study: McDonald’s – half a century of growth
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 4: Managing product and service innovation
- Managing product and service innovation
- 4.1: What is product and service innovation?
- 4.1: What is product and service innovation?
- Creativity, innovation and design
- The innovation S-curve
- Operations in Practice: IDEO and its design thinking
- Incremental or radical innovation
- Innovation is influenced by later stages in the value chain
- Quiz 4.1: What is product and service innovation?
- 4.2: What is the strategic role of product and service innovation?
- 4.2: What is the strategic role of product and service innovation?
- The process of design
- Performance objectives for the product and service innovation process
- What does quality mean for the innovation process?
- What does speed mean for the innovation process?
- What does dependability mean for the innovation process?
- What does flexibility mean for the innovation process?
- What does cost mean for the innovation process?
- Worked Example: Cyberdanss Software
- Operations in Practice: One person, two innovations, two disasters
- Quiz 4.2: What is the strategic role of product and service innovation?
- 4.3: What are the stages of product and service innovation?
- 4.3: What are the stages of product and service innovation?
- Critical Commentary: Product vs service innovation
- Concept generation
- Concept screening
- Operations in Practice: Boulanger or baguettier?
- Preliminary design
- Critical Commentary: Progressive reduction in design options?
- Standardisation
- Design evaluation and improvement
- Prototyping and final design
- Quiz 4.3: What are the stages of product and service innovation?
- 4.4: How should product and service innovation be resourced?
- 4.4: How should product and service innovation be resourced?
- Understanding capacity requirements for innovation activities
- Operations in Practice: Beer from recycled sewage
- Understanding whether innovation activities should be outsourced
- Understanding what technologies to use in the innovation process
- Understanding what organisational structure to use in the innovation process
- Understanding how to compress the innovation process
- Operations in Practice: Fjällräven products are voted the most sustainable in their field
- Integrating the design of the offering and the design of the process
- Operations in Practice: Product innovation for the circular economy
- Simultaneous development
- Early resolution of design conflict and uncertainty
- Frugal innovation
- Quiz 4.4: How should product and service innovation be resourced?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Widescale Studios and the Fierybryde development
- Case Study: Widescale Studios and the Fierybryde development
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 5: The structure and scope of supply
- The structure and scope of supply
- 5.1: What is the structure and scope of supply?
- 5.1: What is the structure and scope of supply?
- Supply networks
- The importance of a supply network perspective
- Structure and scope
- Quiz 5.1: What is the structure and scope of supply?
- 5.2: How should the supply network be configured?
- 5.2: How should the supply network be configured?
- Disintermediation
- Co-opetition
- Network hubs versus direct connection
- Operations in Practice: Virtually like Hollywood
- Business ecosystems
- Critical Commentary: The concept of business ecosystems
- The triadic perspective on supply networks
- Operations in Practice: Apps, dark kitchens, and algorithms change the ‘take-away’ meals supply network
- Structural complexity in retail supply networks
- Quiz 5.2: How should the supply network be configured?
- 5.3: How much capacity should operations have?
- 5.3: How much capacity should operations have?
- The volume versus cost argument
- The optimum capacity level
- Operations in Practice: Vinyl’s comeback poses capacity problems
- Timing changes in capacity
- Break-even analysis of capacity expansion
- Worked Example: De Vere Graphics
- Quiz 5.3: How much capacity should operations have?
- 5.4: Where should operations be located?
- 5.4: Where should operations be located?
- Reasons for location decisions
- Operations in Practice: An Iceland location helps data centres be sustainable
- Evaluating potential changes in location
- Operations in Practice: No Sphere round here
- Quiz 5.4: Where should operations be located?
- 5.5: How vertically integrated should an operation’s supply network be?
- 5.5: How vertically integrated should an operation’s supply network be?
- Advantages of vertical integration
- Disadvantages of vertical integration
- Operations in Practice: CitizenM hotels
- Quiz 5.5: How vertically integrated should an operation’s supply network be?
- 5.6: What activities should be in-house and what should be outsourced?
- 5.6: What activities should be in-house and what should be outsourced?
- Outsourcing and offshoring
- Making the outsourcing decision
- Globalisation, geopolitics, ‘reshoring’ and technology
- Quiz 5.6: What activities should be in-house and what should be outsourced?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Maid Audiovisual
- Case Study: Maid Audiovisual
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- Part 2: Designing the operation
- Designing the operation
- 6: Process design
- Process design
- 6.1: What is process design?
- 6.1: What is process design?
- Process design and product/service design are interrelated
- Process networks
- Quiz 6.1: What is process design?
- 6.2: What should be the objectives of process design?
- 6.2: What should be the objectives of process design?
- Operations in Practice: Disassembly processes
- ‘Micro’ process objectives
- Standardisation of processes
- Operations in Practice: The temptation of factory modules
- Environmentally sensitive process design
- Quiz 6.2: What should be the objectives of process design?
- 6.3: How do volume and variety affect process design?
- 6.3: How do volume and variety affect process design?
- Process types
- Manufacturing process types
- Operations in Practice: Motown’s assembly line for hit songs
- Service process types
- Operations in Practice: Dishang and Sands Film Studios – at opposite ends of the volume–variety spectrum
- Critical Commentary: Process types are not discrete
- The product–process matrix
- Worked Example: The ‘meter installation’ unit
- Critical Commentary: Is everything really a process?
- Quiz 6.3: How do volume and variety affect process design?
- 6.4: How are processes designed in detail?
- 6.4: How are processes designed in detail?
- Process mapping
- Mapping visibility in process design
- Visibility, customer experience and emotional mapping
- Throughput time, cycle time and work in progress
- Little’s law
- Worked Example: You’ll never get them back in time
- Worked Example: Workstation renovation
- Throughput efficiency
- Worked Example: The vehicle licensing centre
- Operations in Practice: A hundred weddings in one day
- Value-added throughput efficiency
- Workflow
- Process bottlenecks
- Worked Example: Karlstad Kakes
- Operations in Practice: London’s Underground tackles a bottleneck
- Arranging the stages
- Low-volume, high-variety processes
- Robotic process automation
- The effects of process variability
- Quiz 6.4: How are processes designed in detail?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: The vascular outpatient clinic
- Case Study: The vascular outpatient clinic
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 7: The layout and look of facilities
- The layout and look of facilities
- 7.1: How can the layout and look of facilities influence performance?
- 7.1: How can the layout and look of facilities influence performance?
- Operations in Practice: Ducati factory or Google office, they both must look good
- What makes a good layout?
- Operations in Practice: Reconciling quiet and interaction in laboratory layout
- Quiz 7.1: How can the layout and look of facilities influence performance?
- 7.2: What are the basic layout types and how do they affect performance?
- 7.2: What are the basic layout types and how do they affect performance?
- Fixed-position layout
- Functional layout
- Cell layout
- Line layout
- Operations in Practice: Office layout and design
- Mixed layouts
- What type of layout should an operation choose?
- Operations in Practice: Supermarket layout
- Cost analysis
- Quiz 7.2: What are the basic layout types and how do they affect performance?
- 7.3: How does the appearance of an operation’s facilities affect its performance?
- 7.3: How does the appearance of an operation’s facilities affect its performance?
- The effect of workplace design on staff
- Critical Commentary: Does aesthetics make a difference?
- The Allen curve
- Operations in Practice: Chef’s tables and open kitchens add drama to the dining experience
- The effect of workplace design on customers – servicescapes
- Quiz 7.3: How does the appearance of an operation’s facilities affect its performance?
- 7.4: What information and analysis is needed to design the layout and look of facilities?
- 7.4: What information and analysis is needed to design the layout and look of facilities?
- Information and analysis for the design of fixed-position layouts
- Case Example: BMW’s digital twin factory
- Information and analysis for the design of functional layout
- Worked Example: Rotterdam Educational Group
- Information and analysis for the design of cell layout
- Operations in Practice: Rolls-Royce factory is designed on environmental principles
- Information and analysis for the design of line layout
- Information and analysis for the design of the appearance of facilities
- Quiz 7.4: What information and analysis is needed to design the layout and look of facilities?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Misenwings SA
- Case Study: Misenwings SA
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 8: Process technology
- Process technology
- 8.1: What is process technology and why is it getting more important?
- 8.1: What is process technology and why is it getting more important?
- Process technology versus product technology
- Process technology and transformed resources
- The role of operations managers in process technology
- Operations in Practice: Bionic duckweed
- What drives the adoption of a technology?
- How do we view new technologies?
- Operations in Practice: Technology or people?
- How should operations managers manage process technology?
- Quiz 8.1: What is process technology and why is it getting more important?
- 8.2: How can one understand the potential of new process technology?
- 8.2: How can one understand the potential of new process technology?
- The four key questions
- Emerging technologies – understanding their primary capabilities
- Operations in Practice: Love it or hate it, Marmite’s energy recycling technology
- Quiz 8.2: How can one understand the potential of new process technology?
- 8.3: How can new process technologies be evaluated?
- 8.3: How can new process technologies be evaluated?
- Does the process technology fit the volume–variety characteristics of the task?
- How does the technology improve the operation’s performance?
- Operations in Practice: Is self-scanning technology worth it?
- Does the technology give an acceptable financial return?
- Worked Example: Blankston Warehouse
- Worked Example: Best-health Clinic
- Quiz 8.3: How can new process technologies be evaluated?
- 8.4: How are new process technologies developed and implemented?
- 8.4: How are new process technologies developed and implemented?
- Technology planning in the long term – technology road mapping
- Operations in Practice: Where does the water go?
- Resource and process ‘distance’
- Operations in Practice: ASML and its world-beating process technology
- Customer acceptability
- Anticipating implementation problems
- Quiz 8.4: How are new process technologies developed and implemented?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Logaltel Logistics
- Case Study: Logaltel Logistics
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 9: People in operations
- People in operations
- 9.1: Why are people so important in operations management?
- 9.1: Why are people so important in operations management?
- Operations culture
- Operations in Practice: Do you want to own the company you work for?
- Operations are socio-technical systems
- Quiz 9.1: Why are people so important in operations management?
- 9.2: How can the operations function be organised?
- 9.2: How can the operations function be organised?
- Forms of organisation structure
- Quiz 9.2: How can the operations function be organised?
- 9.3: How do we go about designing jobs?
- 9.3: How do we go about designing jobs?
- The decisions of job design
- Task allocation – the division of labour
- Designing job methods – scientific management
- Operations in Practice: Are touchscreens too distracting?
- Designing the human interface – ergonomic workplace design
- Operations in Practice: Exoskeleton devices take the strain
- Designing for job commitment – behavioural approaches to job design
- Changing the jobs themselves
- Changing the characteristics of the jobs
- Flexible working
- Operations in Practice: Working from office or working from home (WFH)?
- Work-related stress
- Work–life balance
- Operations in Practice: The stress of high customer contact jobs
- How should the working environment be designed?
- Operations in Practice: Music while you work?
- Quiz 9.3: How do we go about designing jobs?
- 9.4: How are work times allocated?
- 9.4: How are work times allocated?
- The techniques of work measurement
- Critical Commentary: Can we measure work in any meaningful way?
- Quiz 9.4: How are work times allocated?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Solving problems with different teams
- Case Study: Solving problems with different teams
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- Supplement to Chapter 9: Work study
- Supplement to Chapter 9: Work study
- Method study in job design
- Work measurement in job design
- Basic times
- Standard times
- Worked Example: The Monrovian Embassy
- Part 3: Deliver
- Deliver
- 10: Planning and control
- Planning and control
- 10.1: What is planning and control?
- 10.1: What is planning and control?
- Long-, medium- and short-term planning and control
- Operations in Practice: Planning and control at London’s Heathrow Airport
- The volume–variety effect on planning and control
- Quiz 10.1: What is planning and control?
- 10.2: How do supply and demand affect planning and control?
- 10.2: How do supply and demand affect planning and control?
- Uncertainty in supply and demand
- Dependent and independent demand
- Responding to demand
- P:D ratios
- Sales and operations planning (S&OP)
- The activities of planning and control
- Quiz 10.2: How do supply and demand affect planning and control?
- 10.3: What is ‘loading’?
- 10.3: What is ‘loading’?
- Operations in Practice: Loading up to capacity – the Rijksmuseum’s dilemma
- Finite and infinite loading
- Quiz 10.3: What is ‘loading’?
- 10.4: What is ‘sequencing’?
- 10.4: What is ‘sequencing’?
- Physical constraints
- Operations in Practice: Can airline passengers be sequenced?
- Customer priority
- Operations in Practice: The trials of triage
- Due date (DD)
- Last in, first out (LIFO)
- Longest operation time (LOT)
- Judging sequencing rules
- Worked Example: Steve Smith, website designer
- Quiz 10.4: What is ‘sequencing’?
- 10.5: What is ‘scheduling’?
- 10.5: What is ‘scheduling’?
- The complexity of scheduling
- Forward and backward scheduling
- Gantt charts
- Scheduling work patterns
- Operations in Practice: Ryanair cancels flights after ‘staff scheduling’ errors
- Theory of constraints (TOC)
- Quiz 10.5: What is ‘scheduling’?
- 10.6: What is ‘monitoring and control’?
- 10.6: What is ‘monitoring and control’?
- Push and pull control
- Drum, buffer, rope concept
- Critical Commentary: Models for control
- Controlling operations is not always routine
- Non-routine types of control
- Quiz 10.6: What is ‘monitoring and control’?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Audall Auto Servicing
- Case Study: Audall Auto Servicing
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 11: Capacity management
- Capacity management
- 11.1: What is capacity management?
- 11.1: What is capacity management?
- Operations in Practice: Air India’s long-term capacity bet
- A framework for capacity management
- Quiz 11.1: What is capacity management?
- 11.2: How is demand forecast?
- 11.2: How is demand forecast?
- Qualitative approaches to forecasting
- Quantitative approaches to forecasting
- Simple moving average forecasting
- Simple exponential smoothing
- Trend-adjusted exponential smoothing
- Seasonality in forecasting
- Causal models
- Operations in Practice: How artificial intelligence helps with demand forecasting
- Making forecasts useful for operations managers
- Quiz 11.2: How is demand measured?
- 11.3: How is capacity measured?
- 11.3: How is capacity measured?
- Operations in Practice: The world’s big capacity investment in electricity
- The effect of activity mix on capacity measurement
- Capacity ‘leakage’
- Operations in Practice: Mass transport systems have limited options in coping with demand fluctuation
- Understanding changes in capacity
- Quiz 11.3: How is capacity measured?
- 11.4: How is the demand side managed?
- 11.4: How is the demand side managed?
- Yield management
- Quiz 11.4: How is the demand side managed?
- 11.5: How is the supply side managed?
- 11.5: How is the supply side managed?
- Setting base capacity
- Level capacity plan
- Chase (demand) capacity plan
- Quiz 11.5: How is the supply side managed?
- 11.6: How can operations understand the consequences of their capacity management decisions?
- 11.6: How can operations understand the consequences of their capacity management decisions?
- Factoring in predictable versus unpredictable demand variation
- Using cumulative representations of demand and capacity
- Using queuing principles to make capacity management decisions
- Variability effects on queues
- Customer perceptions of queuing
- Operations in Practice: 3M’s COVID-19 surge capacity
- Taking a longitudinal perspective that considers short- and long-term outlooks
- Quiz 11.6: How can operations understand the consequences of their capacity management decisions?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: FreshLunch
- Case Study: FreshLunch
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 12: Supply chain management
- Supply chain management
- 12.1: What is supply chain management?
- 12.1: What is supply chain management?
- Managing supply chains and supply networks
- Quiz 12.1: What is supply chain management?
- 12.2: How should supply chains compete?
- 12.2: How should supply chains compete?
- Operations in Practice: Supply chain excellence at JD.com – the rise of an e-commerce titan
- Performance objectives for supply networks
- Operations in Practice: Zipline’s drone-enabled supply network
- Efficient versus responsive supply networks
- Quiz 12.2: How should supply chains compete?
- 12.3: How should relationships in supply chains be managed?
- 12.3: How should relationships in supply chains be managed?
- ‘Transactional’ versus ‘partnership’ relationships
- Quiz 12.3: How should relationships in supply chains be managed?
- 12.4: How is the supply side managed?
- 12.4: How is the supply side managed?
- Sourcing strategy
- Making the sourcing strategy decision
- Operations in Practice: Considering the longer-term effects of COVID-19 on managing supply networks
- Supplier selection
- Critical Commentary: Approaches to supplier selection
- Negotiating with suppliers during supplier selection
- Managing ongoing supply
- Perception differences in supply chain relationships
- Supply chain relationships are multi-tiered configurations
- Developing suppliers
- Critical Commentary: Supplier development
- Quiz 12.4: How is the supply side managed?
- 12.5: How is the demand side managed?
- 12.5: How is the demand side managed?
- Logistics services
- Volume, size and value
- Operations in Practice: Donkeys – the unsung heroes of supply networks
- Logistics and the Internet of Things (IoT)
- Critical Commentary: Potential downsides of IoT
- Customer relationship management (CRM)
- Quiz 12.5: How is the demand side managed?
- 12.6: What are the dynamics of supply chains?
- 12.6: What are the dynamics of supply chains?
- Controlling supply chain dynamics
- Blockchain technology in supply networks
- Operations in Practice: Maersk and IBM discontinue TradeLens
- Quiz 12.6: What are the dynamics of supply chains?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Big or small? EDF’s sourcing dilemma
- Case Study: Big or small? EDF’s sourcing dilemma
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 13: Inventory management
- Inventory management
- 13.1: What is inventory?
- 13.1: What is inventory?
- All processes, operations and supply networks have inventories
- Operations in Practice: An inventory of energy
- Quiz 13.1: What is inventory?
- 13.2: Why should there be any inventory?
- 13.2: Why should there be any inventory?
- Operations in Practice: Are safety stocks for coffee essential for life?
- So why have inventory?
- Operations in Practice: Getting data storage taped
- Reducing physical inventory
- The effect of inventory on return on assets
- Day-to-day inventory decisions
- Quiz 13.2: Why should there be any inventory?
- 13.3: How much should be ordered? The volume decision
- 13.3: How much should be ordered? The volume decision
- Inventory costs change with order quantity
- Inventory profiles
- The economic order quantity (EOQ) formula
- Worked Example: CVM Building Materials
- Gradual replacement – the economic batch quantity (EBQ) model
- Worked Example: Clonacola
- Critical Commentary: How good are order quantity models?
- Operations in Practice: AI-driven inventory management at Eurocell
- Responding to the criticisms of EOQ
- If customers won’t wait – the news vendor (single-period) inventory problem
- Quiz 13.3: How much should be ordered? The volume decision
- 13.4: When should an order be placed? The timing decision
- 13.4: When should an order be placed? The timing decision
- Worked Example: Knacko running shoes
- Continuous and periodic review
- Two-bin and three-bin systems
- Operations in Practice: Amazon’s ‘anticipatory inventory’
- Quiz 13.4: When should an order be placed? The timing decision
- 13.5: How can inventory be controlled?
- 13.5: How can inventory be controlled?
- Inventory priorities – the ABC system
- Worked Example: Selectro electrical wholesaler
- Critical Commentary: How useful is ABC classification?
- Measuring inventory
- Inventory information systems
- Operations in Practice: France bans the dumping of unsold stock
- Common problems with inventory systems
- Quiz 13.5: How can inventory be controlled?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Jykido takes over Supplies4Medics
- Case Study: Jykido takes over Supplies4Medics
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 14: Planning and control systems
- Planning and control systems
- 14.1: What are planning and control systems?
- 14.1: What are planning and control systems?
- Planning and control systems
- Operations in Practice: Cadbury invests in operations planning and control
- How does the system interface with customers?
- How does the system interface with suppliers?
- Hierarchical planning and control
- Critical Commentary: Hierarchical planning and control in practice
- Quiz 14.1: What are planning and control systems?
- 14.2: What is enterprise resource planning, and how did it develop into the most common planning and control system?
- 14.2: What is enterprise resource planning, and how did it develop into the most common planning and control system?
- How did ERP develop?
- The benefits of ERP
- Operations in Practice: The computer never lies – really?
- ERP changes the way companies do business
- Operations in Practice: The ERP for a chicken salad sandwich
- Web-integrated ERP
- Supply chain ERP
- Cloud ERP
- Quiz 14.2: What is enterprise resource planning, and how did it develop into the most common planning and control system?
- 14.3: How should planning and control systems be implemented?
- 14.3: How should planning and control systems be implemented?
- The particular challenges of information technology (IT) implementation
- Operations in Practice: It’s not that easy
- Implementation critical success factors
- Quiz 14.3: How should planning and control systems be implemented?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Prando’s Pizza
- Case Study: Prando’s Pizza
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- Supplement to Chapter 14: Materials requirements planning (MRP)
- Supplement to Chapter 14: Materials requirements planning (MRP)
- Master production schedule
- The master production schedule record
- The bill of materials (BOM)
- Inventory records
- The MRP netting process
- Back-scheduling
- MRP capacity checks
- Summary of supplement
- Part 4: Development
- Development
- 15: Operations improvement
- 15: Operations improvement
- 15.1: Why is improvement so important in operations management?
- 15.1: Why is improvement so important in operations management?
- Why the focus on improvement?
- The Red Queen effect
- Radical vs incremental improvement
- Operations in Practice: The power of small wins: inside British Cycling’s success
- Exploitation or exploration
- The structure of improvement ideas
- Quiz 15.1: Why is improvement so important in operations management?
- 15.2: What are the key elements of operations improvement?
- 15.2: What are the key elements of operations improvement?
- Improvement cycles
- The PDCA (or PDSA) cycle
- Critical Commentary: Implementing PDCA (or PDSA)
- The DMAIC cycle
- Operations in Practice: Disco balls and rice lead to innovative improvement
- A process perspective
- End-to-end processes
- Operations in Practice: The checklist manifesto
- Quiz 15.2: What are the key elements of operations improvement?
- 15.3: What are the broad approaches to improvement?
- 15.3: What are the broad approaches to improvement?
- Total quality management as an improvement approach
- Lean as an improvement approach
- Business process reengineering (BPR)
- Critical Commentary: BPR and human resources
- Six Sigma
- Measuring performance in Six Sigma
- The 'martial arts' analogy in Six Sigma
- Critical Commentary: What’s the value of Six Sigma?
- Operations in Practice: Six Sigma at Wipro
- Differences and similarities between improvement approaches
- Lean Sigma
- Quiz 15.3: What are the broad approaches to improvement?
- 15.4: What techniques can be used for improvement?
- 15.4: What techniques can be used for improvement?
- Scatter diagrams
- Process mapping
- Cause–effect diagrams
- Pareto curves
- Why–why analysis
- Quiz 15.4: What techniques can be used for improvement?
- 15.5: How can the improvement process be managed?
- 15.5: How can the improvement process be managed?
- Improvement is a cultural issue
- Top-management support
- Operations in Practice: Crowdsourcing values at Leeds Hospitals
- Sourcing improvement ideas
- Benchmarking
- Critical Commentary: Is benchmarking a flawed concept?
- Operations in Practice: Triumph Motorcycles resurrected through benchmarking
- Improvement as learning
- Operations in Practice: What supermarkets learned from Formula 1
- Knowledge management
- Quiz 15.5: How can the improvement process be managed?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Sales slump at Splendid Soup Co.
- Case Study: Sales slump at Splendid Soup Co.
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 16: Lean operations
- Lean operations
- 16.1: What is Lean?
- 16.1: What is Lean?
- Lean is a philosophy, an approach to planning and control, and a set of improvement ideas
- Critical Commentary: If Lean is the pervasive philosophy, why dedicate a chapter to it?
- The evolution of Lean
- Operations in Practice: Toyota: the Lean pioneer
- Quiz 16.1: What is Lean?
- 16.2: How does Lean consider flow?
- 16.2: How does Lean consider flow?
- Improving flow through using pull control
- Using kanbans to support pull control
- Operations in Practice: A very simple kanban
- Improving flow through reducing inventory
- Operations in Practice: The rise of the personal kanban
- Improving flow by decreasing capacity utilisation
- Quiz 16.2: How does Lean consider flow?
- 16.3: How does Lean consider (and reduce) waste?
- 16.3: How does Lean consider (and reduce) waste?
- Causes of waste – muda, mura, muri
- Types of waste
- How improving layout design reduces waste
- How improving process flexibility reduces waste
- Using small-scale simple process technology
- Reducing changeover times (set-up reduction)
- Implementing standard work
- Operations in Practice: Green Lean: Navigating plastic’s role in modern healthcare
- Eliminating waste through minimising variability
- Levelling product or service schedules (heijunka)
- Operations in Practice: Jamie’s ‘Lean’ cooking – heijunka in practice
- Critical Commentary: Implementation of heijunka
- Levelling delivery schedules
- Operations in Practice: The Red Kit Revolution
- Quiz 16.3: How does Lean consider (and reduce) waste?
- 16.4: How does Lean consider improvement?
- 16.4: How does Lean consider improvement?
- The Rapid Process Improvement Workshop (RPIW)
- Critical Commentary: Beyond the tools – Lean as culture, not technique
- Encouraging improvement by ‘stopping the line’
- Operations in Practice: Autonomy at Amazon
- Value stream mapping for understanding flow and identifying sources of waste
- Keeping things simple – the 5S technique
- Adopting visual management
- Operations in Practice: Visual management at KONKEPT
- Adopting total productive maintenance (TPM)
- Quiz 16.4: How does Lean consider improvement?
- 16.5: How does Lean consider the role of people?
- 16.5: How does Lean consider the role of people?
- Basic working practices
- Operations in Practice: Respect!
- Quiz 16.5: How does Lean consider the role of people?
- 16.6: How does Lean apply throughout the supply network?
- 16.6: How does Lean apply throughout the supply network?
- Critical Commentary: Can one go too far with Lean?
- Quiz 16.6: How does Lean apply throughout the supply network?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: St Bridget’s Hospital: seven years of Lean
- Case Study: St Bridget’s Hospital: seven years of Lean
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 17: Quality management
- Quality management
- 17.1: What is quality and why is it so important?
- 17.1: What is quality and why is it so important?
- The operation’s view of quality
- Customers’ view of quality
- Operations in Practice: Quality at two operations: Victorinox and Four Seasons
- Reconciling the operation’s and the customer’s views of quality
- How can quality problems be diagnosed?
- Operations in Practice: Augmented reality technology adds to IKEA’s service quality
- ‘Quality’, ‘quality of service’ and ‘quality of experience’
- Service guarantees
- The sandcone theory
- Operations in Practice: Virgin Atlantic offers a service guarantee for aviophobes
- Conformance to specification
- Quiz 17.1: What is quality and why is it so important?
- 17.2: What steps lead towards conformance to specification?
- 17.2: What steps lead towards conformance to specification?
- Step 1: Define the quality characteristics
- Step 2: Decide how to measure each characteristic
- Step 3: Set quality standards
- Step 4: Control quality against those standards
- Operations in Practice: Testing cars (close) to destruction
- Steps 5 and 6: Find and correct causes of poor quality and continue to make improvements
- Operations in Practice: Coin counting calculations
- The root causes of quality-related human failure
- Operations in Practice: The allure (and illusion) of zero defects
- Quiz 17.2: What steps lead towards conformance to specification?
- 17.3: What is total quality management (TQM)?
- 17.3: What is total quality management (TQM)?
- TQM as an extension of previous practice
- The meaning of TQM?
- TQM means meeting the needs and expectations of customers
- TQM means covering all parts of the organisation
- Critical Commentary: The downside of SLAs
- TQM means including every person in the organisation
- TQM means all costs of quality are considered
- TQM means developing the systems and procedures that support quality and improvement
- Critical Commentary: Criticism of ISO 9000 and ISO 14000
- Quality awards
- Operations in Practice: Quality systems only work if you stick to them
- Quiz 17.3: What is total quality management (TQM)?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: FareShare – redistributing food surplus to those who need it most
- Case Study: FareShare – redistributing food surplus to those who need it most
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- Supplement to Chapter 17: Statistical process control (SPC)
- Supplement to Chapter 17: Statistical process control (SPC)
- Control charts
- Variation in process quality
- Common causes
- Process capability
- Assignable causes of variation
- Critical Commentary: Are expectations of SPC too high?
- Why variability is a bad thing
- Control charts for attributes
- Control chart for variables
- Control limits for variables control chart
- Interpreting control charts
- Process control, learning and knowledge
- Summary of supplement
- Selected further reading
- 18: Managing risk and recovery
- Managing risk and recovery
- 18.1: What is risk management?
- 18.1: What is risk management?
- Operations in Practice: Facing technological risks brings rewards for ASML
- The VUCA framework
- Quiz 18.1: What is risk management?
- 18.2: How can operations assess the potential causes and consequences of failures?
- 18.2: How can operations assess the potential causes and consequences of failures?
- Identify the potential sources of risk
- Organisational failure
- Operations in Practice: Cybersecurity in transport and finance
- Supply failure
- Post-failure analysis
- Estimating likelihood of failure
- ‘Objective’ estimates of failure
- Failure rate
- Bath-tub curves
- Reliability
- Mean time between failures
- Availability
- Critical Commentary: Inspecting for failure
- Health and safety
- Failure mode and effect analysis
- Quiz 18.2: How can operations assess the potential causes and consequences of failure?
- 18.3: How can failures be prevented?
- 18.3: How can failures be prevented?
- Redundancy
- Fail-safeing
- Operations in Practice: Darktrace uses AI to guard against cyber-attacks
- Maintenance
- The three basic approaches to maintenance
- How much maintenance?
- Total productive maintenance
- Critical Commentary: The role of perception of risk
- Quiz 18.3: How can failures be prevented?
- 18.4: How can operations mitigate the effects of failure?
- 18.4: How can operations mitigate the effects of failure?
- Failure mitigation actions
- Quiz 18.4: How can operations mitigate the effects of failure?
- 18.5: How can operations recover from the effects of failure?
- 18.5: How can operations recover from the effects of failure?
- Operations in Practice: Pressing the passenger panic button
- The complaint value chain
- Failure planning
- Quiz 18.5: How can operations recover from the effects of failure?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: GuitarFest
- Case Study: GuitarFest
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- 19: Project management
- Project management
- 19.1: What are projects?
- 19.1: What are projects?
- Common features of projects
- Operations in Practice: ‘For the benefit of all’ – NASA’s highs and lows
- Differentiating between projects
- Operations in Practice: Pixar manages its creative projects
- Quiz 19.1: What are projects?
- 19.2: What is project management?
- 19.2: What is project management?
- Operations in Practice: McCormick’s AI spice project
- Project managers and their skill sets
- Forming project teams and assigning responsibilities
- Quiz 19.2: What is project management?
- 19.3: How is the project environment understood?
- 19.3: How is the project environment understood?
- Operations in Practice: The rebuilding of Notre-Dame cathedral
- The role of stakeholders in the project environment
- Identifying project stakeholders
- Understanding project stakeholders
- Managing stakeholders
- Quiz 19.3: How is the project environment understood?
- 19.4: How are projects defined?
- 19.4: How are projects defined?
- Project objectives
- Critical Commentary: Is the iron triangle restrictive?
- Project scope
- Project strategy
- Operations in Practice: When every minute counts in a project – unblocking the Suez Canal
- Quiz 19.4: How are projects defined?
- 19.5: How are projects planned?
- 19.5: How are projects planned?
- Identify project activities – work breakdown structure
- Estimate activity times and resource requirements
- Critical Commentary: Too much guesswork?
- Identify the relationships and dependencies between activities
- Gantt charts
- Network analysis
- Identify time and resource schedule constraints
- Fix schedule for time and resources
- Programme evaluation and review technique (PERT)
- Quiz 19.5: How are projects planned?
- 19.6: How are projects controlled and learned from?
- 19.6: How are projects controlled and learned from?
- Project monitoring
- Assessing project performance
- Intervention in projects
- Managing matrix tensions
- Managing project learning
- Quiz 19.6: How are projects controlled and learned from?
- Responsible operations
- Responsible operations
- Summary answers to key questions
- Summary answers to key questions
- Case Study: Kloud BV and Sakura Bank K.K.
- Case Study: Kloud BV and Sakura Bank K.K.
- Go beyond the bots in applying the principles
- Go beyond the bots in applying the principles
- Selected further reading
- Selected further reading
- Footnotes
- Glossary