O'Reilly logo

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Operations Management, 3rd Edition

Book Description

Operations Management: Theory and Practice is the outcome of continuous testing of alternative ideas, concepts and pedagogical designs with MBA students, working executives from diverse industries, and research scholars. The basic concept of this book is to incorporate the salient features one usually finds in international textbooks, and at the same time, enrich the book with contextually relevant examples.  New chapter: Sustainability is increasingly becoming important for businesses. Several of the current students will be required to play a key role in managing businesses that are also sustainable in their operations. In order to equip the students with the necessary understanding of the related issues, a new chapter—Chapter 3 titled &ldquoSustainability in Operations"— has been introduced in this edition. Updated material: Several topics, such as the design of manufacturing processes, lean management and six sigma, have been revised to make them more comprehensive. Moreover, many of the Ideas at Work boxes, such as Café Coffee Day (CCD), and the data provided in the tables have been updated to reflect recent events. The description of the new attempts by businesses to addresses sustainability and project management pertaining to Terminal 3 of Indira Gandhi International Airport, New Delhi is an example in this category. Additions to the end-of-chapter exercises: Mini Projects and Net-wise Exercises have been updated Video Insights: This is a new feature introduced in this edition. In an era of media convergence and availability of useful information on the Internet, the students need to benefit from these and expand their understanding and scope of application of the concepts discussed in the book. To facilitate this process, over 15 videos have been identified and their URLs have been provided so that students can pursue them. These videos cover the actual working of a variety of manufacturing and service firms along with expert opinions and interviews on certain aspects of operations. Formula Review: This feature has been added at the end of such chapters where several new formulae have been introduced

Table of Contents

  1. Cover
  2. Title Page
  3. Brief Contents
  4. Contents
  5. Dedication
  6. Preface
  7. About the Author
  8. PART I CONCEPTUALIZING SUSTAINABLE OPERATIONS
    1. 1. Operations Management: Trends and Issues
      1. IDEAS AT WORK 1.1: NARAYANA HEALTH (NH): A JOURNEY THAT BEGAN WITH WINING THE HEART OF INDIA
      2. 1.1 Introduction to Operations Management
      3. 1.2 Manufacturing and Service Sector Trends in India
      4. 1.3 Services as a Part of Operations Management
        1. Intangibility
        2. Heterogeneity
        3. Simultaneous Production and Consumption
      5. VIDEO INSIGHTS 1.1
        1. Perishability
      6. IDEAS AT WORK 1.2: OPERATIONS MANAGEMENT IN SERVICE SYSTEMS
      7. 1.4 Operations as a Key Functional Area
      8. 1.5 Operations Management: A Systems Perspective
      9. VIDEO INSIGHTS 1.2
      10. 1.6 Operations Management Functions
        1. Design Versus operational Control Issues
        2. Long-term Versus Short-term Issues
      11. 1.7 Challenges in Operations Management
        1. Competitive Pressure due to Economic Reforms
        2. Growing Customer Expectations
        3. Technological Developments
        4. Environmental Issues
        5. 1.8 Current Priorities for Operations Management
      12. IDEAS AT WORK 1.3: INDIA - AN EMERGING GLOBAL MANUFACTURING BASE
      13. Summary
      14. Review Questions
      15. Net-Wise Exercises
      16. Suggested Readings
    2. 2. Operations Strategy
      1. IDEAS AT WORK 2.1: CAFE COFFEE DAY: A STRATEGY FOR AFFORDABLE LUXURY
      2. 2.1 The Relevance of Operations Strategy
      3. 2.2 The Strategy-Formulation Process
        1. Step 1: understand the Competitive Market Dynamics
        2. Step 2: Identify order-qualifying and order-winning Attributes
        3. Step 3: Identify Strategic options for Sustaining Competitive Advantage
        4. Step 4: Devise the overall Corporate Strategy
        5. Step 5: Arrive at the operations Strategy
      4. 2.3 Measures for Operational Excellence
      5. VIDEO INSIGHTS 2.1
      6. IDEAS AT WORK 2.2: MEASURES FOR OPERATIONAL EXCELLENCE: THE CASE OF INDIGO AIRLINES
      7. 2.4 Options for Strategic Decisions in Operations
        1. Product Portfolio
        2. Process Design
        3. Supply Chain
        4. Technology
      8. VIDEO INSIGHTS 2.2
        1. Capacity
      9. 2.5 Break-Even Analysis
      10. 2.6 The Cost versus Flexibility Trade-off in Operations Strategy
      11. 2.7 World-class Manufacturing Practices
        1. Toyota’s Journey as a World-class Manufacturer
        2. Principles of World-class Manufacturing
        3. Challenges in WCM
      12. 2.8 Emerging Context for Operations Strategy
        1. Globalization of the Indian Economy
        2. The outsourcing Wave
        3. Collaborative Commerce through the Internet
      13. Summary
      14. Review Questions
      15. Problems
      16. Net-Wise Exercises
      17. Case: Ginger Hotel
      18. Suggested Readings
    3. 3. Sustainability in Operations
      1. IDEAS AT WORK 3.1: FIRST ENERGY: A SUSTAINABLE TECHNOLOGY TO ADDRESS COOKING NEEDS
      2. 3.1 Sustainability: A Key Business Requirement
      3. 3.2 Notion of Sustainability
      4. VIDEO INSIGHTS 3.1
      5. 3.3 Framework for Sustainable Operations Management
      6. IDEAS AT WORK 3.2: REUSE THROUGH RECYCLING: A CORE ELEMENT OF CREATING SUSTAINABLE OPERATIONS
      7. 3.4 Reverse Logistics: A Framework
        1. Networks in Reverse Logistics
        2. Decision options in Reverse Logistics
        3. Entities in Reverse Logistics
      8. 3.5 Design for Sustainability
      9. IDEAS AT WORK 3.3: SUSTAINABILITY—INDIAN CULTURAL ETHOS
      10. 3.6 Remanufacturing
      11. IDEAS AT WORK 3.4: GREEN MANUFACTURING EXCELLENCE AWARDS
      12. 3.7 Periodic Review Inventory Control for Remanufacturing
      13. 3.8 Challenges in Creating Sustainable Operations
        1. Lack of Regulatory Framework
      14. VIDEO INSIGHTS 3.2
        1. Mindset Inertia
        2. Lack of TOP Management Vision
        3. Inability to See the Big Picture
        4. Need for Substantive Investments
        5. Benefits are Notional, not obvious
        6. Crisis Is Yet to BLOW over
      15. Summary
      16. Review Questions
      17. Net-Wise Exercises
      18. Suggested Readings
    4. 4. Project Management
      1. IDEAS AT WORK 4.1: TERMINAL THREE AT INDIRA GANDHI INTERNATIONAL (IGI) AIRPORT, NEW DELHI
      2. 4.1 Characteristics of Project Organizations
      3. VIDEO INSIGHTS 4.1
      4. 4.2 The Phases of Project Management
      5. 4.3 A Framework for Project Management
        1. Work Breakdown Structure
        2. organization Breakdown Structure
        3. Cost Breakdown Structure
      6. 4.4 Tools and Techniques for Project Management
        1. Developing a Network representation of a Project
      7. IDEAS AT WORK 4.2: THE CHAINSA-GURGAON PIPELINE PROJECT
      8. Analysis of Project Networks
      9. 4.5 Addressing Time and Resource Constraints
        1. Resource Levelling
        2. Time-Cost Trade-offs in Projects
      10. 4.6 Handling Uncertainty in Project Completion
        1. Simulation of Project Networks
      11. IDEAS AT WORK 4.3: CRITICAL CHAIN: APPLICATION OF THE THEORY OF CONSTRAINTS TO PROJECT MANAGEMENT
      12. Summary
      13. Formula Review Questions
      14. Review Questions
      15. Problems
      16. Mini Projects
      17. Case Study
      18. Suggested Readings
  9. PART II OPERATIONS AND THE VALUE CHAIN
    1. 5. Supply Chain Management
      1. IDEAS AT WORK 5.1: MOTHER DAIRY: A CASE FOR SUPPLY CHAIN MANAGEMENT?
      2. 5.1 What is a Supply Chain?
        1. The Need for Efficient Supply Chain Management
        2. Information and Material Flows in the Supply Chain
      3. 5.2 Supply Chain Components
        1. The Inbound Supply Chain
        2. The In-house Supply Chain
        3. The Outbound Supply Chain
      4. VIDEO INSIGHTS 5.1
      5. IDEAS AT WORK 5.2: SUPPLY CHAIN MANAGEMENT SOLUTION FOR INDIAN OIL CORPORATION LIMITED
      6. 5.3 Supply Chain Management: A Process Orientation
      7. 5.4 Supply Chain Structure
      8. 5.5 The Bullwhip Effect
      9. 5.6 Measures of Supply Chain Performance
        1. Post-process Indices
        2. Process Indices
      10. IDEAS AT WORK 5.3: PROJECT SHAKTI OF HUL: A UNIQUE DISTRIBUTION CHAIN FOR RURAL MARKETS
      11. 5.7 Design of Supply Chains
      12. VIDEO INSIGHTS 5.2
        1. Designing Efficient Supply Chains
        2. Designing Responsive Supply Chains
      13. 5.8 Third-Party Logistics in Web-Based Firms
      14. Summary
      15. Review Questions
      16. Formula Review
      17. Net-Wise Exercises
      18. Mini Projects
      19. Suggested Readings
    2. 6. Facilities Location
      1. IDEAS AT WORK 6.1: AKSHAYA PATRA: THE NATION-WIDE MID-DAY MEAL SCHEME OF ISKCON
      2. 6.1 Globalization of Operations
        1. Regulatory Issues
        2. Factor Advantages
        3. Expanding Markets in Developing Countries
      3. 6.2 Factors Affecting Location Decisions
        1. Market-related Issues
      4. IDEAS AT WORK 6.2: ARAVIND EYE HOSPITAL’S APPROACH TO LOCATION OF HEALTHCARE DELIVERY SYSTEMS
        1. Cost-related Issues
        2. Regulatory and Policy Issues
        3. Other Issues
      5. 6.3 Location Planning Methods
        1. Location Factor Rating
      6. IDEAS AT WORK 6.3: SPECIAL ECONOMIC ZONES: A POLICY ANGLE TO LOCATION PLANNING
        1. The Centre-of-gravity Method
        2. The Load-Distance Method
        3. The Transportation Model
      7. 6.4 Other Issues in Location Planning
      8. Summary
      9. Formula Review Questions
      10. Review Questions
      11. Problems
      12. Net-Wise Exercises
      13. Mini Project
      14. Case Study
      15. Suggested Readings
    3. 7. Sourcing and Supply Management
      1. IDEAS AT WORK 7.1: EID PARRY: SUPPLIER AS A STAKEHOLDER IN BUSINESS
      2. 7.1 The Importance of Sourcing and Supply Management
        1. Quality Management Issues
        2. Changing Cost Structure
        3. Quick-response Requirements
        4. Creating a Lean organization
        5. The Importance of New-product Development
      3. 7.2 Strategic Sourcing
      4. 7.3 The Procurement Process
      5. 7.4 Approaches to Supply Management
      6. IDEAS AT WORK 7.2: ALTERNATIVE PROCUREMENT PROCESSES FOLLOWED BY ORGANIZATIONS
      7. IDEAS AT WORK 7.3: TRUSTING SUPPLIERS?
      8. 7.5 Developing Reliable Vendors
        1. Supplier Development
      9. VIDEO INSIGHTS 7.1
        1. Supplier Certification Programmes
      10. IDEAS AT WORK 7.4: THE CLUSTER APPROACH TO SUPPLIER DEVELOPMENT
        1. Vendor Rating
      11. 7.6 Measures for Sourcing and Supply Chain Management
        1. Basic Measures for Supplier Performance
        2. Measures for Long-term Partnerships
      12. IDEAS AT WORK 7.5: TOTAL COST OF OWNERSHIP IN AN AUTO-COMPONENT MANUFACTURING UNIT
      13. 7.7 The Make-or-Buy Decision
        1. Cost
        2. Core versus Non-core Activities
        3. Management of Capacity Expansion
        4. Strategic Restructuring
      14. 7.8 E-Procurement
      15. VIDEO INSIGHTS 7.2
        1. Collaborative Market Mechanisms
        2. Quasi-market Mechanisms
        3. Neutral Market Mechanisms
      16. Summary
      17. Review Questions
      18. Case Study
      19. Suggested Readings
  10. PART III DESIGNING OPERATIONS
    1. 8. Process and Capacity Analysis
      1. IDEAS AT WORK 8.1: CAPACITY EXPANSION PLANS AT INDIAN OIL CORPORATION LIMITED (IOCL)
      2. 8.1 Process as a Unit of Measurement in Operations
      3. 8.2 Process Flow-Charting
      4. 8.3 Planning Premises and Process Implications
        1. Make to Stock (MTS)
        2. Make to order (MTO)
        3. Assemble to order (ATO)
      5. 8.4 Analysing Processes
      6. 8.5 Process Redesign Using Business Process Re-Engineering (BPR)
        1. Value-added (VA) Activities
        2. Non-value-added (NVA) Activities
        3. Necessary but Non-value-added (NNVA) Activities
      7. 8.6 Defining Capacity
      8. VIDEO INSIGHTS 8.1
      9. 8.7 Measures of Capacity
      10. 8.8 The Time Horizon in Capacity Planning
      11. IDEAS AT WORK 8.2: NINE SOURCES OF WASTE
      12. 8.9 The Capacity Planning Framework
        1. Estimating the Total Requirement
        2. Estimating Labour and Machine Requirements
        3. Computing Capacity Availability
        4. Process Mapping and Capacity Analysis
      13. 8.10 Alternatives for Capacity Augmentation
        1. Waste Elimination
        2. Multi-skilling of the Workforce
        3. Subcontracting/outsourcing
      14. 8.11 Decision Tree for Capacity Planning
      15. Summary
      16. Formula Review Questions
      17. Review Questions
      18. Problems
      19. Mini Project
      20. Case Study
      21. Suggested Readings
    2. 9. Design of Manufacturing Processes
      1. IDEAS AT WORK 9.1: PROCESS DESIGN AT MILLTEC MACHINERY
      2. 9.1 Determinants of Process Characteristics in Operations
        1. Volume
        2. Variety
        3. Flow
      3. 9.2 Types of Processes and Operations Systems
        1. Continuous Flow Systems
      4. VIDEO INSIGHTS 9.1
      5. IDEAS AT WORK 9.2: THE POLYESTER FILAMENT YARN PLANT AT RELIANCE INDUSTRIES LIMITED
      6. VIDEO INSIGHTS 9.2
        1. Intermittent Flow
        2. Jumbled Flow Systems
      7. IDEAS AT WORK 9.3: PROCESS REDESIGN FOR IMPROVING FLOW
      8. 9.3 The Process-Product Matrix
      9. 9.4 Layout Planning
      10. 9.5 Types of Layouts
        1. Process Layout
        2. Product Layout
        3. Group Technology Layout
        4. Fixed Position Layout
      11. IDEAS AT WORK 9.4: WORKPLACE ORGANIZATIOI AT THERMAX
      12. 9.6 Performance Measures for Layout Design
      13. 9.7 Design of Process Layouts
        1. The Qualitative Approach to Layout Design
        2. The Quantitative Approach to Layout Design
        3. Software Packages for Layout Design
      14. 9.8 Design of Product Layouts
      15. 9.9 Design of Group Technology Layouts
      16. 9.10 One Worker-Multiple Machine Layouts
      17. 9.11 Technology issues in Process Design
        1. Flexible Manufacturing Systems
        2. Automated Material-handling Systems
      18. 9.12 Complexity in Operations Management
      19. Summary
      20. Formula Review
      21. Review Questions
      22. Problems
      23. Net-Wise Exercises
      24. Mini Project
      25. Case Study
      26. Suggested Readings
    3. 10. Design of Service Systems
      1. IDEAS AT WORK 10.1: DESIGN OF LUXURY SERVICES
      2. 10.1 Design of Service Systems: Characteristic Aspects
      3. 10.2 Customer Contact in Service Systems
      4. VIDEO INSIGHTS 10.1
      5. 10.3 Complexity and Divergence in Service Systems
      6. 10.4 Service Positioning
      7. VIDEO INSIGHTS 10.2
      8. IDEAS AT WORK 10.2: BLUE GINGER: THE VIETNAMESE RESTAURANT AT TAJ WEST END, BANGALORE
      9. 10.5 Service Blueprinting
      10. 10.6 Capacity Planning in Services Using Queueing Analysis
        1. The Basic Structure of a Queueing System
      11. 10.7 Other Aspects of Addressing Capacity Issues in Services
      12. 10.8 Service Quality
      13. IDEAS AT WORK 10.3: IMPROVING SERVICE QUALITY THROUGH BETTER COMMUNICATION: THE CASE OF ARAVIND EYE HOSPITALS
      14. Summary
      15. Formula Review
      16. Review Questions
      17. Problems
      18. Net-Wise Exercises
      19. Mini Projects
      20. Case Study
      21. Suggested Readings
      22. Supplement 10A: Simulation Modelling
      23. Summary
      24. Review Questions
      25. Problems
      26. Suggested Readings
    4. 11. Product Development Process
      1. IDEAS AT WORK 11.1: DEVELOPMENT OF AEH BY PHILIPS: A NEW APPROACH TO R&D
      2. 11.1 India’s Role in Research and Development
      3. 11.2 Product Development: The Key to Competitive Advantage
      4. 11.3 The Product Development Process
      5. Stages in the Product Development Process
      6. IDEAS AT WORK 11.2: CROSS-BADGING: A TOOL FOR NEW RAPID AND NEW PRODUCT INTRODUCTION
      7. VIDEO INSIGHTS 11.1
        1. The Stage-Gate Approach: An Alternative representation of the Product Development Process
      8. 11.4 Organization for Product Development
      9. 11.5 Tools For Efficient Product Development
        1. Understanding Customer Needs
      10. IDEAS AT WORK 11.3: GETTING TOGETHER TO KNOW WHAT THE CUSTOMER WANTS
      11. VIDEO INSIGHTS 11.2
        1. Quality Function Deployment
        2. Value Engineering
        3. Design for Manufacturability
        4. Tools for Mass Customization
      12. IDEAS AT WORK 11.4: VARIETY REDUCTION EXERCISE: OPPORTUNITIES FOR COST CUTTING
      13. 11.6 Performance Measures for the Product Development Process
      14. 11.7 Management Accounting Tools for Product Development
      15. 11.8 Software Product Development
      16. Summary
      17. Review Questions
      18. Net-Wise Exercises
      19. Case Study
      20. Suggested Readings
    5. 12. Total Quality Management
      1. IDEAS AT WORK 12.1: POKA YOKE FOR DEFECT PREVENTION
      2. 12.1 The Quality Revolution
      3. 12.2 Quality Gurus
        1. William Edwards Deming
        2. Joseph M. Juran
        3. Philip B. Crosby
        4. Karou Ishikawa
        5. Shigeo Shingo
        6. Genichi Taguchi
      4. 12.3 Definitions of Quality
        1. Conformance to Specifications
        2. Fulfilling Customer Needs
        3. Fitness for Use
      5. 12.4 Total Quality Management
      6. Commitment of Top Management
      7. IDEAS AT WORK 12.2: QUALITY POLICY IN SOME ORGANIZATIONS
        1. Employee Involvement
        2. Addressing Training Requirements
      8. 12.5 Quality Management Tools
        1. Histograms
        2. Pareto Diagrams
        3. Cause and Effect (Fishbone) Diagrams
        4. CEDAC
        5. Poka Yoke
      9. IDEAS AT WORK 12.3: MATRIX DIAGRAM FOR ENHANCING THE COMPETITIVENESS OF A PRODUCT
        1. Quality Function Deployment
        2. Quality Costing
      10. 12.6 Quality Certifications and Awards
        1. Quality Awards
        2. Quality Certifications
      11. IDEAS AT WORK 12.4: SRF’S TQM JOURNEY TOWARDS THE DEMING PRIZE
      12. 12.7 Design of Quality Assurance Systems
      13. Summary
      14. Review Questions
      15. Problems
      16. Net-Wise Exercises
      17. Mini Projects
      18. Case Study
      19. Suggested Readings
    6. 13. Lean Management
      1. IDEAS AT WORK 13.1: NOTION OF WASTE IN OFFICES
      2. 13.1 The Origins of Lean Management
      3. 13.2 Why Lean Management?
      4. 13.3 The Philosophy of Lean Management
      5. 13.4 Creating a Lean Enterprise
      6. 13.5 Waste Elimination as the Core Logic of JIT
      7. VIDEO INSIGHTS 13.1
      8. 13.6 Elements of JIT Manufacturing
        1. Changes in the Manufacturing Architecture
        2. Lot-size Reduction
        3. Set-up Time Reduction Through SMED
        4. Kanban as a Control TOOL
      9. IDEAS AT WORK 13.2: SET-UP TIME REDUCTION IN BRAKES INDIA
      10. 13.7 Production Planning and Control in JIT
        1. Push and Pull Scheduling
        2. The Kanban System
        3. Design of Kanban Quantities
      11. 13.8 The Continuous Improvement Process
      12. IDEAS AT WORK 13.3: TOWARDS ZERO NON-VALUE-ADDED ACTIVITIES
      13. VIDEO INSIGHTS 13.2
      14. 13.9 Tools for Continuous Improvement
      15. 13.10 Organization For Continuous Improvement
        1. Task Force for Continuous Improvement
        2. Quality Circles
        3. Project-based Small Group Improvement Activities (SGIA)
        4. Visual Control Aids for Improvement
      16. 13.11 Organizational Challenges in Lean Management
        1. JIT Implementation Issues
      17. IDEAS AT WORK 13.4: APPLICATION OF LEAN MANAGEMENT IN HEALTHCARE
        1. Cultural and Human Issues
      18. Summary
      19. Review Questions
      20. Problems
      21. Mini Projects
      22. Case Study
      23. Suggested Readings
  11. PARR IV PLANNING AND CONTROL OF OPERATIONS
    1. 14. Demand Forecasting
      1. IDEAS AT WORK 14.1: THE ROLE OF FORECASTING IN A PETROCHEMICAL-MANUFACTURING COMPANY
      2. 14.1 Forecasting as a Planning Tool
      3. 14.2 Why Do We Forecast?
      4. 14.3 Forecasting Time Horizon
        1. Short-term Forecasting
        2. Medium-term Forecasting
        3. Long-term Forecasting
      5. 14.4 Design of Forecasting Systems
      6. 14.5 Developing the Forecasting Logic
      7. 14.6 Sources of Data
        1. Sales-force Estimates
        2. Point of Sales (POS) Data Systems
        3. Forecasts from Supply Chain Partners
        4. Trade/Industry Association Journals
        5. B2B Portals/Marketplaces
        6. Economic Surveys and Indicators
        7. Subjective Knowledge
      8. 14.7 Extrapolative Methods Using Time Series
      9. IDEAS AT WORK 14.2: A FORECASTING MODEL TO IMPROVE CREDIT CARD BUSINESS PERFORMANCE AT COMMERCE BANK
        1. Moving Averages
        2. The Exponential Smoothening Method
        3. Extracting the Components of Time Series
        4. Estimating the trend using Linear Regression
        5. Extracting the Seasonal Component
      10. 14.8 Causal Methods of Forecasting
        1. Econometric Models
      11. 14.9 Accuracy of Forecasts
      12. IDEAS AT WORK 14.3: FACTORS AFFECTING FERTILIZER USE IN PUNJAB
        1. Forecast Error (FE)
        2. Mean Absolute Deviation (MAD)
        3. Mean Absolute Percentage Error (MAPE)
        4. Mean Squared Error (MSE)
        5. Tracking Signal (TS)
      13. 14.10 Using the Forecasting System
        1. Getting Started
        2. Focus Forecasting
        3. Incorporating External Information
        4. Forecasting Systems: Stability Versus Responsiveness
      14. Summary
      15. Formula Review
      16. Review Questions
      17. Problems
      18. Net-Wise Exercises
      19. Mini Project
      20. Case Study
      21. Suggested Readings
    2. 15. Operations Planning
      1. IDEAS AT WORK 15.1: OPERATIONS PLANNING AT AMAZON TO IMPROVE SERVICE EFFECTIVENESS
      2. 15.1 Planning Hierarchies in Operations
      3. 15.2 Aggregate Operations Planning
      4. 15.3 The Need for Aggregate Operations Planning
      5. 15.4 Alternatives for Managing Demand
        1. Reservation of Capacity
        2. Influencing Demand
      6. 15.5 Alternatives for Managing Supply
        1. Inventory-based Alternatives
        2. Capacity Adjustment Alternatives
      7. 15.6 Basic Strategies for Aggregate Operations Planning
        1. Level Strategy
        2. Chase Strategy
        3. Mixed Strategy
      8. 15.7 Aggregate Operations Planning Methods
        1. Heuristic Methods for AOP
        2. Optimal Methods for AOP
      9. 15.8 Operations Research Tools for Operations Planning
        1. Aggregate operations Planning Using the Transportation Model
      10. IDEAS AT WORK 15.2: USE OF SPREADSHEETS FOR AGGREGATE PRODUCTION PLANNING
        1. The Linear Programming Model for AOP
        2. The Linear Decision Rule (LDR)
      11. 15.9 Master Operations Scheduling
      12. Summary
      13. Review Questions
      14. Problems
      15. Case Study
      16. Suggested Readings
      17. Supplement 15: Linear Programming
      18. Summary
      19. Review Questions
      20. Problems
      21. Suggested Readings
    3. 16. Resources Planning
      1. IDEAS AT WORK 16.1: ERP IMPLEMENTATION AT HPCL
      2. 16.1 Dependent Demand Attributes
      3. 16.2 Planning A Framework: The Basic Building Blocks
        1. Multiple Levels in Products
        2. Product Structure
        3. The Bill of Materials (BOM)
        4. Time Phasing the Requirement
        5. Determining the Lot Size
        6. Incorporating Lead-time Information
        7. Establishing the Planning Premises
      4. 16.3 MRP Logic
      5. 16.4 Using The MRP System
        1. Updating MRP Schedules
        2. Safety Stock and Safety Lead Time
      6. 16.5 Capacity Requirements Planning (CRP)
      7. 16.6 Distribution Requirement Planning (DRP)
      8. 16.7 Manufacturing Resources Planning (MRP II)
      9. IDEAS AT WORK 16.2: OPEN SOURCE ERP SOLUTION FOR VENKATESWARA HATCHERIES
      10. 16.8 Enterprise Resource Planning (ERP)
      11. 16.9 Resources Planning in Services
      12. IDEAS AT WORK 16.3: SERVICES RESOURCES PLANNING (SRP): AN ERP SOLUTION FROM RAMCO
      13. Summary
      14. Review Questions
      15. Problems
      16. Net-Wise Exercises
      17. Mini Projects
      18. Suggested Readings
    4. 17. Inventory Planning and Control
      1. IDEAS AT WORK 17.1: INVENTORY MANAGEMENT IN A CONSUMER PRODUCTS COMPANY
      2. 17.1 Inventory Planning for Independent Demand Items
        1. Continuous Demand
        2. Uncertainty of Demand
      3. 17.2 Types of Inventory
        1. Seasonal Inventory
        2. Decoupling Inventory
        3. Cyclic Inventory
        4. Pipeline Inventory
        5. Safety Stock
      4. 17.3 Inventory Costs
        1. Inventory-carrying Cost
        2. Cost of ordering
        3. Cost of Shortages
      5. 17.4 Inventory Control for Deterministic Demand Items
        1. Problems in the EOQ model
      6. 17.5 Handling Uncertainty in Demand
      7. 17.6 Inventory Control Systems
        1. The Continuous Review (Q) System
        2. The Periodic Review (P) System
        3. Issues in the P and Q Systems of Inventory Control
      8. 17.7 Selective Control of Inventory
        1. ABC Classification
        2. Other Classification Schemes for Selective Control
        3. IDEAS AT WORK 17.2: THE INVENTORY CONTROL SYSTEM OF A PETROCHEMICAL MANUFACTURER
      9. 17.8 Inventory Planning for Single-Period Demand
      10. 17.9 Other Issues in Inventory Planning and Control
      11. Summary
      12. Formula Review
      13. Review Questions
      14. Problems
      15. Mini Projects
      16. Case Study
      17. Suggested Readings
    5. 18. Operations Scheduling
      1. IDEAS AT WORK 18.1: SCHEDULING THE ORDER PROCESSING OPERATION AT BLOCKBUSTER DISTRIBUTION CENTER
      2. 18.1 The Need for Scheduling
      3. 18.2 Scheduling: Alternative Terms
        1. Planning-related Terms
        2. Technological Constraints-related Terms
        3. Administration-related Terms
      4. 18.3 The Loading of Machines
      5. 18.4 The Scheduling Context
      6. IDEAS AT WORK 18.2: SCHEDULING OF PHYSICIAN IN THE EMERGENCY DEPARTMENT OF A HOSPITAL
        1. Scheduling Rules
        2. Performance Criteria
      7. 18.5 Scheduling of Flow Shops
        1. Johnson’s Rule
      8. 18.6 Scheduling of Job Shops
      9. 18.7 Input-Output Control
      10. 18.8 Operational Control Issues in Mass Production Systems
        1. Machine Redeployment
        2. Altering operator Allocations
        3. Adjusting Material Feed Rates
      11. 18.9 Operations Planning and Control Based on the Theory of Constraints
        1. Measures of Performance
        2. The Analogy of Marching Soldiers
        3. Synchronous Manufacturing
        4. Constraints in a Manufacturing System
        5. The Drum-Buffer-Rope (DBR) Methodology
      12. Summary
      13. Formula Review
      14. Review Questions
      15. Problems
      16. Mini Projects
      17. Suggested Readings
    6. 19. Six-Sigma Quality Control
      1. IDEAS AT WORK 19.1: QUALITY CONTROL AT INDIAN FOOD SPECIALTIES LIMITED
      2. 19.1 The Six-Sigma Approach to Quality Control
      3. 19.2 Defects Per Million Opportunities (DPMO)
      4. 19.3 Six-Sigma Methodology (DMAIC)
      5. IDEAS AT WORK 19.2: DEFECT OPPORTUNITIES: THE CASE OF FIXED DEPOSITS
      6. 19.4 Variations in Processes
        1. Common Causes
        2. Assignable Causes
      7. 19.5 Process Control Fundamentals
      8. 19.6 Setting Up a Process Control System
        1. Step 1: Choose the Characteristic for Process Control
        2. Step 2: Choose the Measurement Method
        3. Step 3: Choose an Appropriate Sampling Procedure
        4. Step 4: Choose the Type of Control Chart
        5. Step 5: Compute the Control Limits
        6. Step 6: Plot the Data and Analyse it
      9. 19.7 Process Improvements in the Long Run
        1. Process Capability
        2. Potential Capability
        3. Actual Capability
      10. 19.8 Six Sigma and Process Capability
      11. 19.9 Acceptance Sampling
        1. Single Sampling Plan
        2. AQL and LTPD
      12. Summary
      13. Formula Review
      14. Review Questions
      15. Problems
      16. Net-Wise Exercises
      17. Mini Project
      18. Suggested Readings
  12. Notes
  13. Copyright