Richard B. Chase Nicholas J. Aquilano

PRODUCTION
AND OPERATIONS
MANAGEMENT
A Life Cyde Approadi
Richard B. Chase
University of Soutiiern California
Nicholas J. Aquilano
University of Arizona
GIFT OF
THE ASIA FOUNDATION
NOT FOR RE-SALE
.
OAI HOC QU6'C GIA HA NO
TRUNGTANUH^^
Fifth Edition
1989
IRWIN
Ho me wood, IL 60430
Boston. MA 02116
s
Contents
SECTION I
THE NATURE AND C O N T E X T OF OPERATIONS
MANAGEMENT
2
Chapter 1
Introduction and Overview
4
Specific Objectives of the Book.
Operations Management Defined.
The Operations Function and Its Environment.
Operations Objectives.
Production Systems.
The Life Cycle Approach.
Operations Management and Other Business Specialties.
Historical Development of OM.
Conclusion: Current Issues in Operations Management.
Chapter 2
Productivity and Competitiveness
26
Competitiveness Defined.
Productivity Measurement and Trends.
General Causes and Solutions to the Competitiveness Problem.
Productivity and Competitiveness.
Competitive Priorities,
Manufacturing's Role in Corporate Strategy.
Case: Splash-N-Wipe Manufacturing.
SECTION II
PRODUCT DESIGN AND PROCESS SELECTION
46
Chapter 3
Product Design and Process Selection—Manufacturing
48
Product Design and Development Sequence.
Product Design and Selection.
Process Selection.
Automation.
Process Flow Design.
Case: The W. C. Adams Company.
XI
Xfi
Contents
Supplement
Computer-Integrated Manufacturing
75
Computer-Integrated Manufacturing.
Benefits of CIM.
Examples of CIM.
Reading: MAP Pilot Pays Off for Lockheed.
Chapter 4
Product Design and Process Selection—Services
92
The Nature and Importance of Services.
An Operational Classification of Services.
A Systems View of High-Contact Services.
Service-System Design Matrix.
Service Blueprinting.
Identifying Sales Opportunities.
Three System Design Options.
Case: Kinko's Copier Stores.
Tutorial 1
Waiting Line Theory
120
Economics of the Waiting Line Problem.
Waiting Line Characteristics.
Seven Typical Waiting Line Situations.
Computer Simulation of Waiting Lines.
Chapter 5
Design of the Quality Control System
162
Organization and Role of the Quality Control Function.
Meaning and Measurement of Quality.
Cost of Quality.
Statistical Quality Control (SQC).
Acceptance Sampling.
Process Control Procedures.
Taguchi Methods.
Personnel Considerations.
Quality Measurement in Service Industries.
Reading: Making Quality Control Theories Workable.
SECTION III
DESIGN OF FACILITIES AND JOBS
212
Chapter 6
Forecasting
214
Demand Management.
Types of Forecasting.
Contents
xiii
Components of Demand.
Casual Relationships.
Time Series Analysis.
Forecast Errors.
Focus Forecasting.
Computer Programs.
Chapter 7
Capacitv Planning and Location
270
Importance of Capacity Decisions.
Important Capacity Concepts.
Capacity Planning.
Facility Location.
Locating Service FaciHties.
Case: Community Hospital.
Case: Zepf Technologies Inc. (B).
Tutorial 2
Linear Programming
308
The Linear Programming Model.
Graphical Linear Programming.
The Simplex Method.
Transportation Method.
Assignment Method.
Karmarkar's Algorithm for Solving Linear Programming Problems.
General Algebraic ModeHng System (GAMS).
Chapter 8
Facility Layout
356
Basic Layout Formats.
Process Layout.
Product Layout.
Assembly Lines.
Assembly Line Balancing.
Mixed-Model Line Balancing.
The Contemporary Approach to Lines.
Group Technology (Cellular) Layout.
Tutorial 3
Simulation
Definition of Simulation.
Simulation Methodology.
Computerization of the Fish Market Example.
Simulating Waiting Lines.
Simulation Programs and Languages.
Advantages and Disadvantages of Simulation.
386
xfv
OofKcnts
Chapter 9
Job Design and Work Measurement
42^
Job Design.
Behavioral Considerations in lob Desit^n.
Physical Considerations in Job Design.
Methods, Measurement, and Payment.
SECTION IV
STARTUP OF THE SYSTEM
470
Chapter 10
Project Planning and Control
472
Definition of Project Management.
Organizational Forms.
Project Control.
Critical Path Scheduling.
Time-Oriented Techniques.
Time-Cost Models.
Computer Programs for Project Scheduling.
Criticisms of PERT and CPM.
Tutorial 4
Experience Curves
514
Predicting Startup Progress: Experience Curves.
Simple Exponential Curve.
Time-Constant Learning Curve Model.
SECTION V
THE SYSTEM IN STEADY STATE
542
Chapter 11
Aggregate Planning
544
Overview of Manufacturing Planning Activities.
Hierarchical Production Planning.
Aggregate Production Planning.
Aggregate Planning Techniques.
Chapter 12
Inventory Systems for Independent Demand
Independent versus Dependent Demand.
Definition of Inventory.
Purpose of Inventory.
Inventory Costs.
Inventory Systems.
576
Contents
xv
Basic Model Types.
A Major Problem: Determining ReaHstic Costs.
Chapter 13
Inventory Systems for Dependent Demand:
Materials Requirements Planning
A Simple MRP Example.
Material Requirements Planning (MRP) Systems.
Material Requirements Planning Systems Structure.
An Example Using MRP.
MRP in Services.
Capacity Requirements Planning.
Manufacturing Resource Planning (MRP II).
Miscellaneous MRP Issues.
Instalhng an MRP System.
Case: Nichols Company.
Chapter 14
Operations Planning and Control
^^^
672
Job Shop Defined.
Scheduling and Control in the Job Shop.
Elements of the Job-Shop Scheduling Problem.
Priority Rules and Techniques.
Shop-Floor Control.
Example of a Total System: H. P.'s Production Management/3000.
Personnel Scheduling in Services.
Case: McCall Diesel Motor Works.
Chapter 15
Materials Management and Purchasing
"02
Overview of the Materials-Flow Process.
Organizational Placement of Materials Management.
Purchasing.
Materials Management and Manufacturing.
Marketing and Distribution.
Case: Thomas Manufacturing Company.
Case: Ohio Tool Company.
SECTION VI
IMPROVING THE SYSTEM
732
Chapter 16
lust-in-Time Production Systems
734
The Japanese Approach to Productivity
How to Accomplish JIT Production.
KV^
Oot^eaa
Some Technical Issues about Kanban.
Company Experiences with JIT.
Case: XYZ Products Company.
Case: McCall Diesel Motor Works Revisited.
Supplement
JIT for Services
774
JIT: Not Just for the Factory.
Midway Airlines Problem-Solving Groups Apply Analytical Tools to
Departure Delays.
Japanese Management and the 100 Yen Sushi House.
Chapter 17
Synchronized Manufacturing
790
Hockey-Stick Phenomenon.
Goal of the Firm.
Performance Measurements.
Attempts to Balance Capacity.
Bottlenecks, Nonbottlenecks, and Capacity-Constrained Resources.
Basic Manufacturing Building Blocks.
Comparing Synchronized Manufacturing to MRP and JIT.
Methods for Control in Synchronized Manufacturing.
VAT Classification of Firms.
Relationship with Other Functional Areas.
Estabhshing a Process of Ongoing Improvement.
Chapter 18
Revising Operations Strategy
840
Manufacturing's Role in Corporate Strategy.
Developing and Implementing a Manufacturing Strategy.
Operations Strategy in Services.
The Service Factory.
Case: Memphis Toy Company.
Case: Big Jim's Gym.
APPENDIXES
A: Financial Analysis in Production and Operations
Management
B: Uniforrnly Distributed Random Digits
C: Normally Distributed Random Digits
D: Areas of the Standard Normal Distribudon
E: Areas of the Cumulative Standard Normal Distribudon
F: Negadve Exponential Distribudon: Values of e"^
869
870
890
891
892
893
899
G: Cumulative Poisson Disinbution
901
H- !ntrf«t Tables
907
! Answers to Selected Problems
913
QIC
THE
MCGRAW-HILL/IRWIN
SER?
Operations and Decision Sciences
OPERATIONS MANAGEMENT
Bowersox and Closs
Logistical Management: The Integrated Supply Chain Process
First Edition
Chase, Aquilano, and Jacobs
Operations Management tor Competitive Advantage
Ninth Edition
Chu, Hottenstein, and Greenlaw
PROSIM for Windows
Third Edition
Moses, Seshadri, and Yakir
HOM Operations Management Software for Windows
First Edition
Nahmias
Production and Opeiotions Analysis
Fourth Edition
Nicholas
Competitive Manufacturing Management
First Edition
Olson
Introduction to Information Systems Project MaFirst Edition
Cohen and Apte
Manufacturing Automation
First Edition
Pinedo and Chao
Operations Scheduling
First Edition
Davis, Aquilano, and Chase
Fundamentals of Operations Management
Third Edition
Sanderson and IJ/umeri
Managing Product Families
First Edition
Dobler and Burt
Purchasing and Supply Management
Sixth Edition
Flaherty
Global Operations Management
First Edition
i
Fitzsimmons and Fitzsimmons
Service Management: Operations, Strategy, Information Technology
Third Edition
Schroeder
Operations Management: Contemporary Concepts and Cases
First Edition
Schonberger and Knod
Operations Management
Seventh Edition
Gray and Larson
Project Management: The Managerial Process
First Edition
Simchi-Levi, Kaminsky, and Simchi-Levi
Designing and Managing the Supply Chain: Concepts, Strategies,
and Case Studies
First Edition
Hill
Manufacturing Strategy: Text & Cases
Third Edition
Sterman
Business Dynamics: Systems Thmknig and Modeling for a Complex World
First Edition
,
Hopp and Spearman
Factory Physics
Second Edition
Stevenson
Production/Operations Management
Sixth Edition
Jacobs and Whybark
Why ERP: A Primer on SAP Implementaion
First Edition
Vollmann, Berry, and Whybark
Manufacturing Planning & Control Systems
Fourth Edition
Lambert and Stock
Strategic Logistics Management
Third Edition
Zipkin
Foundations of Inventory Management
First Edition
Leenders and Fearon
Purchasing and Supply Chain Management
Eleventh Edition
QUANTITATIVE METHODS AND MANAGEMENT SCIENCE
Alwan
Statistical Process Analysis
First Edition
Bonini, Hausman, and Bierman
Quantitative Analysis for Business Decisions
Ninth Edition
Bodily, Carraway, Frey, Pfeifer
Quantitative Business Analysis: Casebook
First Edition
Hesse
Managerial Spreadsheet Modeling and Analysis
First Edition
Hillier, Hillier, Liebemian
Intrt)duction to Management Science: A Modeling and Case Studies
Approach with Spreadsheets
First Edition
Bodily, Carraway, Frey, Pfeifer
Quantitative Business Analysis: Text and Cases
I It St Edition
CONTENTS
SECTION
IN
BRIEF
O N E
11 F^»-^--sting 432
•'^~ Aggregate Piannsrig 460
OPERATIONS STRATEGY A N D M A N A G I N G
CHANGE
"^3 I f u c i i t L
1 I n t r o d u c t i o n t o t h e Field 4
14 Mau.
2 O p e r a t i o n s Strategy and
C o m p e t i t i v e n e s s 22
Technical Note 2
Learning
Technical
Curves
SE
REVISING J^C- SVS^
PRODUCT DESIGN A N D PROCESS SELECTION
4 Process Analysis 9 0
Technical Note 4 Job Design and Work
Measurement
113
5 Product Design and Process
S e l e c t i o n — M a n u f a c t u r i n g 142
Facility
Layout
Waiting
174
SECTION
Management
Process Capability
Control
290
and
APPENDICES
A Answers t o Selected Problems 729
B Uniformly Distributed Random Digits 734
C Normally Distributed Random Digits 735
Electronic
Commerce
8 Supply Chain Strategy 3 3 0
9 Strategic Capacity Management 352
Facility
Location
373
10 Just-in-Time and Lean Systems 3 9 2
D Areas o f the Standard Normal
D i s t r i b u t i o n 736
E Areas o f the Cumulative Standard
N o r m a l D i s t r i b u t i o n 737
F Negative Exponentia 1 D i s t r i b u t i o n :
Value o f e~' 738
G Interest Tables 739
SECTION
720
258
SUPPLY C H A I N DESIGN
Technical Note 9
A Linear Programming w i t h the Excel
Solver 6 9 4
B Financial Analysis 703
THREE
Managerial Briefing
and E-Ops"
316
17 Synchronous M a n u f a c t u r i n g a
T h e o r y o f Constraints 662
C O p e r a t i o n s Technology
7 Q u a l i t y Managennent
Technical Note 7
Statistical Quality
Line
16 O p e r a t i o n s Co-is
Reengineering 6 4 0
SUPPLEMENTS
6 Product Design and Process
Selection—Services 206
Technical Note 6
230
No'.
40
Two
Technical Note 5
• Requirerrients f-
15 v^,'peratior!S Sc?
3 Project Managennent 56
SECTION
.oncroi -:
FOUR
PLANNING AND CONTROLLING THE SUPPLY
CHAIN
PHOTO CREDITS
N A M E INDEX
Managerial Briefing
Enterprise
Planning Systems 420
743
745
Resource
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