Preface v About the Authors xv Chapter 1 Introduction to Operations Management 1 What is Operations Management? 2 Differences between Manufacturing and Service Organizations 5 Operations Management Decisions 6 Historical Development 10 Today''s OM Environment 18 Operations Management in Practice 19 Within OM: How It All Fits Together 20 OM Across the Organization 20 Chapter 2 Operations Strategy and Competitiveness 28 The Role of Operations Strategy 29 Developing a Business Strategy 30 Developing an Operations Strategy 34 Strategic Role of Technology 40 Productivity 41 Operations Strategy Within OM: How it All Fits Together 45 Operations Strategy Across the Organization 46 Chapter 3 Product Design and Process Selection 54 Product Design 55 The Product Design Process 56 Factors Impacting Product Design 60 Process Selection 64 Designing Processes 67 Process Performance Metrics 69 Linking Product Design and Process Selection 72 Technology Decisions 77 Designing Services 82 Product Design and Process Selection Within OM: How It All Fits Together 86 Product Design and Process Selection Across the Organization 87 Chapter 4 Supply Chain Management 98 Basic Supply Chains 99 Issues Affecting Supply Chain Management 106 The Role of Purchasing 116 Sourcing Decisions 120 The Role of Warehouses 130 Implementing Supply Chain Management 135 Supply Chain Management Within OM: How It All Fits Together 139 SCM Across the Organization 140 Chapter 5 Total Quality Management 151 Defining Quality 152 Cost of Quality 154 The Evolution of Total Quality Management (TQM) 156 The Philosophy of TQM 160 Quality Awards and Standards 171 Why TQM Efforts Fail 174 Total Quality Management (TQM) Within OM: How It All Fits Together 175 Total Quality Management (TQM) Across the Organization 175 Chapter 6 Statistical Quality Control 185 What Is Statistical Quality Control? 186 Sources of Variation: Common and Assignable Causes 187 Descriptive Statistics 187 Statistical Process Control Methods 189 Control Charts for Variables 191 Control Charts for Attributes 197 Process Capability 203 Six Sigma Quality 208 Acceptance Sampling 210 Implications for Managers 216 Statistical Quality Control in Services 217 Statistical Quality Control (SQC) Within OM: How It All Fits Together 219 Statistical Quality Control (SQC) Across the Organization 219 Chapter 7 Just-in-Time and Lean Systems 234 The Philosophy of JIT 235 Elements of JIT 237 Just-in-Time Manufacturing 241 Total Quality Management 249 Respect for People 251 Benefits of JIT 255 Implementing JIT 256 JIT in Services 258 JIT and Lean Systems Within OM: How It All Fits Together 259 JIT and Lean Systems Across the Organization 259 Chapter 8 Forecasting 267 Principles of Forecasting 268 Steps in the Forecasting Process 268 Types of Forecasting Methods 269 Time Series Models 272 Causal Models 289 Measuring Forecast Accuracy 293 Selecting the Right Forecasting Model 296 Collaborative Planning, Forecasting, and Replenishment (CPFR) 299 Forecasting Within OM: How It All Fits Together 300 Forecasting Across the Organization 301 Chapter 9 Capacity Planning and Facility Location 316 Capacity Planning 317 Making Capacity Planning Decisions 323 Decision Trees 325 Location Analysis 328 Making Location Decisions 332 Capacity Planning and Facility Location Within OM: How It All Fits Together 343 Capacity Planning and Facility Location Across the Organization 343 Chapter 10 Facility Layout 355 What Is Layout Planning? 356 Types of Layouts 356 Designing Process Layouts 360 Special Cases of Process Layout 366 Designing Product Layouts 370 Group Technology (Cell) Layouts 377 Facility Layout Within OM: How It All Fits Together 378 Facility Layout Across the Organization 378 Chapter 11 Work System Design 392 Work System Design 393 Job Design 393 Work Measurement 402 Compensation 415 Work System Design Within OM: How It All Fits Together 418 Work System Design Across the Organization 418 Chapter 12 Inventory Management 432 Basic Inventory Principles 433 Inventory Management Objectives 436 Relevant Inventory Costs 440 ABC Inventory Classification 442 Inventory Record Accuracy 445 Determining Order Quantities 446 Determining Safety Stock Levels 463 The Periodic Review System 466 Inventory Management within OM: How It All Fits Together 468 Inventory Management across the Organization 469 Chapter 13 Aggregate Planning 483 Business Planning 484 Aggregate Planning Options 486 Aggregate Plan Strategies 490 Developing the Aggregate Plan 492 Aggregate Planning Within OM: How It All Fits Together 502 Aggregate Planning Across the Organization 502 Chapter 14 Resource Planning 517 Enterprise Resource Planning 518 The Benefits and Costs of ERP 522 Material Planning Systems 524 How MRP Works 532 Capacity Requirements Planning (CRP) 538 Resource Planning Within OM: How It All Fits Together 540 Resource Planning Across the Organization 540 Chapter 15 Scheduling 553 Basic Scheduling Concepts 554 Developing a Schedule of Operations 560 Optimized Production Technology 569 Scheduling Issues for Service Organizations 572 Scheduling Within OM: Putting It All Together 576 Scheduling Across the Organization 576 Chapter 16 Project Management 589 The Project Life Cycle 590 Project Management Concepts 591 Estimating the Probability of Completion Dates 604 Reducing Project Completion Time 606 The Critical Chain Approach 609 Project Management Within OM: How It All Fits Together 611 Project Management OM Across the Organization 611 Appendix A Solutions to Odd-Numbered Problems 625 Appendix B The Standard Normal Distribution 647 Appendix C p-Chart 648 Name index 651 Subject index 654.