Operations Management: Strategy and Analysis (6th Edition) - Hardcover

Lee J. Krajewski; Larry P. Ritzman

4.02

46 ratings by Goodreads

9780201615456: Operations Management: Strategy and Analysis (6th Edition)

Hardcover

ISBN 10: 0201615452 ISBN 13: 9780201615456

Publisher: Prentice Hall, 2001

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This highly respected book presents strategic and managerial issues in order to emphasize that the decisions made by operations managers should be consistent with a corporate strategy shared by managers in all functional areas. It presents the operations tools and techniques for solving problems in the context of achieving a firm's overall goals and strategies, and provides a balanced treatment of manufacturing and services throughout. The book blends the latest in strategic issues with proven analytic techniques, and offers a wealth of interesting examples to engage readers and bring Operations Management to life. This sixth addition adds an increased emphasis on processes, to provide linkage between operational issues, as well as new problem-solving software and a website with innovative Internet resources. Other coverage includes operations as a competitive weapon, operations strategy, managing technology, total quality management, statistical process control, capacity, location, layout, supply-chain management, forecasting, inventory management, aggregate planning, resource planning, lean systems, and scheduling. For operations managers in a variety of fields.

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About the Author:

LEE J. KRAJEWSKI is the William R. and F. Cassie Daley Professor of Manufacturing Strategy at the University of Notre Dame. Prior to joining Notre Dame, Lee was a faculty member at The Ohio State University, where he received the University Alumni Distinguished Teaching Award and the College of Business Outstanding Faculty Research Award. He initiated the Center for Excellence in Manufacturing Management and served as its director for four years. In addition, he received the National President's Award and the National Award of Merit of the American Production and Inventory Control Society. He served as President Elect of the Decision Sciences Institute and was elected a Fellow of the Institute in 1988.

Lee's career spans more than thirty-two years of research and education in the Field of operations management. He has designed and taught courses at both graduate and undergraduate levels on topics such as manufacturing strategy, introduction to operations management, operations design, and manufacturing planning and control systems.

Lee served as the editor of Decision Sciences, was the founding editor of the Journal of Operations Management (1980-1983), and has served on several editorial boards. Widely published himself, Lee has contributed numerous articles to such journals as Decision Sciences, the Journal of Operations Management, Management Science, Harvard Business Review, and Interfaces, to name just a few. He has received five best-paper awards. Lee's areas of specialization include manufacturing strategy, manufacturing planning and control systems, supply-chain management, and master production scheduling.

LARRY RITZMAN is the Thomas J. Galligan, Jr. Professor in Operations and Strategic Management at Boston College. He previously served at The Ohio State University for twenty-three years, where he acted as department chairperson and received several awards for both teaching and research. He received his doctorate at Michigan State University, having had prior industrial experience at the Babcock and Wilcox Company. Over the years, he has been privileged to teach and learn more about operations management with numerous students at all levels—undergraduate, MBA, executive MBA, and doctorate.

Particularly active in the Decision Sciences Institute, Larry has served as Council Coordinator, Publications Committee Chair, Track Chair, Vice President, Board Member, Executive Committee Member, Doctoral Consortium Coordinator, and President. He was elected a Fellow of the Institute in 1987 and earned the Distinguished Service Award in 1996. He has received three best-paper awards. He is a frequent reviewer, discussant, and session chair for several other professional organizations.

Larry's areas of particular expertise are operations strategy, production and inventory systems, forecasting, multistage manufacturing, disaggregation, scheduling, and layout. An active researcher, Larry's publications have appeared in such journals as Decision Sciences, Journal of Operations Management, Production and Operations Management, Harvard Business Review, and Management Science. He has served in various editorial capacities for several journals.

Operations Management: Strategy and Analysis, Sixth Edition, continues its hallmark reputation for innovation in presenting operations management as a powerful tool for achieving organizational objectives and gaining competitive advantage. Our goal is to help students become effective managers in today's competitive, global environment. First, because many students who take this course will go on to become managers in service and manufacturing organizations in a variety of departments and functional areas, we focus on processes—the fundamental unit of work in all organizations. It is all about processes! This unifying theme opens up the topics in operations management to all students, regardless of their majors or career paths. They discover the challenge of both managing and understanding the interrelatedness of activities throughout the organization, and how the operations function fits into the organization. Second, we seek to help students discover the excitement of the dynamic field of operations management (OM). We engage them by offering a wealth of interesting examples at numerous service and manufacturing firms that bring operations alive, presenting new technologies for enhancing decision making and data gathering, and including realistic cases that encourage open debate of important issues. Third, to put the subject in appropriate context, we want students to gain an understanding of what managers do about processes, to realize that operations management involves many cross-functional links, and to learn more about the tools that managers can use to make better operating decisions.

PHILOSOPHY OF OPERATIONS MANAGEMENT: STRATEGY AND ANALYSIS

A Balanced Perspective. The Sixth Edition blends the latest in strategic issues with proven analytic techniques. It reflects our philosophy that OM texts should address both the "big picture" strategic issues and also the analytic tools that facilitate decision making. It is not just about "concepts" or just about "numbers," but recognizes both dimensions. Strategic and managerial issues have been woven into the fabric of each chapter to emphasize that management decisions about operations and processes should be consistent with corporate strategies shared by managers in all functional areas. Tools and techniques, including computer models and Internet capabilities, are also woven into the text as ways to solve problems and develop tactics that help achieve the firm's overall goals and strategies. We also continue to provide a balanced treatment of manufacturing and services throughout the text, and give special recognition to service provider processes of with an S icon in the margin. This approach not only reflects the remarkable growth of the service sector in the global economy, but also helps the student view how designing and managing processes are fundamental to all activities throughout any organization.

Operations Management Within the Whole Firm. Our message to students is clear: This text presents practical approaches to solve operations problems, and the solutions to those problems can and do make a difference in a firm's competitiveness. New to the Sixth Edition are interdisciplinary perspectives that begin and end each chapter, giving students a better appreciation for how operations relates throughout the whole business.

Active Learning. Motivating students to learn and apply OM concepts to processes is an important ingredient to a successful course. In the Sixth Edition, we have retained several popular and time-tested features that give students a deeper understanding of realistic business issues and enable them to become active participants in and out of the classroom. For example, OM Explorer tutors, end-of-chapter cases, and experiential exercises involve the students in actually applying the concepts and theories explained in the text. New to the Sixth Edition are the Extend and SimQuick simulators. The multiple activities available at the textbook's Web site expand learning beyond the textbook and the classroom; they include Internet activities, tours, OM Explorer computer assignments, and previews of the latest "industrial strength" commercial software now used in practice. Such features recognize the rapid growth of information technology, which is significantly reshaping processes around the world.

ORGANIZATION

We have chosen to organize the text so that it moves from strategic choices to tactical decisions. Chapter 1 is an introductory chapter on the meaning and role of processes and operations. It demonstrates the role of processes in every phase of businesses and functional areas, and then explores how to manage processes to provide a competitive advantage for the firm. It also shows how trends in productivity, service operations, global competition, quality, technology, and environmental concerns are broadening the scope and increasing the importance of operations management in all organizations.

Part 1 (Strategic Choices) consists of one chapter and one supplement. Chapter 2 discusses key issues in customer-driven operations strategy that affect a company's future. Competitive priorities (for individual processes and even major business units), global strategies, service and manufacturing strategies, and new technologies such as e-commerce are important pillars of operations strategy. So is how these choices relate to customer needs and corporate strategy. Identifying the pattern of decisions—and how the pattern should vary by situation—is demonstrated with detailed tours of two real organizations: a hospital and a steel company.

Part 2 (Process) consists of three chapters and one supplement. Chapter 3 looks at important choices about processes, which are fundamental to all activities that produce goods and services. Key decisions include process choice, outsourcing, flexibility, customer involvement, and automation. These decisions, and how they are related, are described for processes of both manufacturers and service providers. We cover economies of scope and job design, and then provide a systematic approach to improving processes that includes both reengineering and process improvement. Chapter 4 focuses on project processes, so common in everyday life as well as in business. While projects can be large or small, unique or routine, they all require special approaches to manage them effectively. Chapter 5 turns to another important issue in designing processes: the use of technology. Every process uses one or more technologies. The increasing role of information technology is given particular attention, including its components, e-commerce, the Internet and World Wide Web, and enterprise resource planning (ERP). Strategic issues, such as first-mover considerations and implementation guidelines, are also covered.

Part 3 (Quality) consists of two chapters. Quality issues underlie all processes and work activities. Chapter 6 reflects current thought on quality management, including teamwork, continuous improvement through TQM, benchmarking, quality function deployment, and basic tools for data analysis. Chapter 7 shows how inspection and statistical methods can be combined to monitor and measure the capability of the process to produce goods or services to specification.

Part 4 (Capacity, Location, and Layout) consists of three chapters and two supplements. This part focuses on decisions that require long-term commitments about the process. Managers must help determine the process's capacity, where to locate new facilities (including global operations), and how to organize the layout of the processes within a facility. Discussion of these decisions completes our coverage of how to design processes for service providers and manufacturers.

Part 5 (Operating Decisions) consists of seven chapters and three supplements. This part deals with operating the processes after they have been designed. Chapters 11-17 examine the issues that managers face as they coordinate quarter-to-quarter and day-to-day issues in concert with an overall operations strategy. Topics include the supply-chain management and how to coordinate the internal and external supply chain, forecasting demand, managing inventory, controlling output and work-force levels over time, planning resource levels, managing lean systems and deciding which elements of just-in-time techniques to implement, scheduling the use of resources, and establishing priorities of work to be done.

The seven supplements interspersed in the text provide more in-depth coverage of techniques, including decision making, computer-integrated manufacturing, waiting lines, simulation, special inventory models, linear programming, and master production scheduling. Many of the supplements apply to multiple chapters, not simply to the chapter that they follow. Even more supplements are accessible on the Student CDROM packaged free with every new copy of the textbook. They cover learning curve analysis, measuring output rates, acceptance sampling plans, and financial analysis. Each topical supplement is complete within itself and includes a full problem set when appropriate. This arrangement makes incorporating this important material into courses easy and pedagogically effective for instructors.

The text aims at core-curriculum courses at the undergraduate and graduate levels. It covers all the basic topics in the area of operations management and allows the instructor to challenge the students at the appropriate level for their academic maturity. The book can be used in many ways, depending on the course objectives. It offers considerable flexibility in order, depth of coverage (qualitative or quantitative), and level (undergraduate or graduate). Thus instructors will find that the organization of the text allows smooth adaptation to various course syllabi. Once Chapters 1 and 2 have been covered, instructors can easily rearrange chapters and supplements to suit their individual course and teaching needs. The truth is that there is too much content in operations management to cover in one course. Thus the instructor will assign some materials and not others. Sequencing of materials depends on the orientation of your instructor, and what topics have already been covered in your program. We designed the book to be used flexibly, regardless of the orientation.

CHANGES FOR THE SIXTH EDITION

Following are highlights of content changes made to enhance coverage of the ever-changing field of operations management. These changes are based on extensive feedback from professors and students. All of these changes support the overall text philosophy.

NEW! Increased Emphasis on Processes. Beginning in Chapter 1, we put increased emphasis on the central role of processes. Making decisions about processes naturally leads to issues in the various chapters on competitive priorities, technology, project management, quality, capacity, layout, supply-chain management, and the like. We wanted to create a better "buy-in" for a course in operations management. Our new focus on processes does just that, because students understand that processes underlie activities throughout the organization, not just in one functional area.
NEW! Managing Technology. We significantly upgraded the chapters on managing technology, incorporating the latest developments in e-commerce (both B2B and B2C) and enterprise resource planning (ERP). Together, a chapter, case, and video on technology management explore the stages of technology development, the challenges of choosing and implementing new technology, and how technology can create a competitive advantage (Chapter 5, Managing Technology). These topics are developed further throughout in many Managerial Practices and business examples throughout the text.
NEW! Updated Coverage of Supply-Chain Management. Chapter 11 on supply-chain management has been given a major face-lift. It brings out many of the newer things going on with supply chains, while building on the base. provided in the last edition. New sections include managing the customer interface, and managing the supplier interface. The section on e-purchasing is rewritten to include catalog hubs, exchanges, and auctions. Other important additions include postponement, channel assembly, and green purchasing (Chapter 11, Supply-Chain Management).
NEW! Process Management for Services. Chapter 3, Process Management, has been given a major revision. The parts on service processes are strengthened with a new paradigm on how process choice relates with customization and volume. It now has more of a "how to" slant to revising processes, and there is more emphasis on flowcharting and simulation. Having a link to the SmartDraw Web site where students can download a trial version and Extend+ Manufacturing LT software on the Student CD-ROM adds a new dimension to process analysis.
NEW! Across the Organization. Focusing on processes allows us to expand our coverage of cross-functional perspectives. Each chapter begins and ends with a discussion of how the chapter topic is important to professionals in a variety of disciplines. In every chapter, cross-functional connections link operations management to accounting, finance, human resources, marketing, and management information systems. (See pages 29 and 58.)
NEW! Early Coverage of Project Management. Chapter 4, Managing Project Processes, has been moved to the front of the text for two reasons: It is a topic of interest to all students regardless of their functional area emphasis, and it allows for some problem solving early in the outline. It focuses on the management of project processes. Having Microsoft Project (120-day evaluation) software available on the Student CD-ROM allows students to gain experience with advanced commercial software for project management.
NEW! Resource Planning. Chapter 15, Resource Planning, has been renamed and its scope broadened. There is a completely new section on resource planning for services, including resources such as financial assets, human resources, equipment and inventories.
NEW! Student CD-ROM. This CD-ROM is packaged free with each new copy of the text. It contains OM Explorer, Extend+ Manufacturing LT software with simulation cases, Microsoft Project (120-day evaluation) software, a link to the SmartDraw Web site, CD-ROM Topics, CD-ROM tours of the Lower Florida Keys Hospital and Chaparral Steel, and a link to the MyPhlip Web site with additional student and faculty resources.
NEW! OM Explorer. This complete decision-support software package is designed specifically for this text. It has the look and feel of an Excel worksheet environment, and works with Excel 2000 and Excel 97. There are two drop-down menus that are user friendly—one for Tutors and one for Solvers. The 66 Tutors provide coaching for all of the difficult analytical methods presented in the text. They extend self-testing opportunities beyond the printed page. The Tutor icon shown in the margin flags all Tutor applications in the textbook. The package also contains 40 powerful Solvers, g...