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Arapu Case Study Answers


OPERATIONS MANAGEMENT. Seventh edition. Nigel Slack. Alistair Brandon- Jones. Robert Johnston. PEARSON. Harlow, England • London • New York ...

OPERATIONS MANAGEMENT Seventh edition

Nigel Slack Alistair Brandon-Jones Robert Johnston

PEARSON Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Auckland • Singapore • Hong Kong Tokyo • Seoul < Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

Guide to 'operations in practice', examples, short cases and case studies

xii

Making the most of this book and MyOMLab Preface

xvi v

xx

To the Instructor... To the Student...

xxii .

xxiii

Ten steps to getting a better grade

Why is flexibility important? Why is cost important? Trade-offs between performance objectives

52 55 60

Summary answers to key questions Case study: Operations objectives at the Penang Mutiara Problems and applications Selected further reading Useful websites

62 64 65 66 67

in operations management

xxiv

About the authors

xxv

Chapter 3 Operationsjtrategy

68

Acknowledgements

xxvi

Introduction

68

INTRODUCTION Chapter 1 Operations management

3 4

Introduction

4

What is operations management? Operations management is important in all types of organization The input-transformation-output process The process hierarchy Operations processes have different characteristics What do operations managers do?

6 8 13 18 23 .26

Summary answers to key questions 30 Case study: Design house partnerships at Concept Design Services 31 Problems and applications 34 Selected further reading 34 Useful websites 35

Chapter 2 Operations performance

36

Introduction

36

Operations performance is vital for any organization Why is quality important? Why is speed important? Why is dependability important?

38 46 47 49

^"\

What is strategy and what is operations strategy? The 'top-down' and 'bottom-up' perspectives The market requirements and operations resources perspectives How can an operations strategy be put together? Summary answers to key questions Case study: Long Ridge Gliding Club Problems and applications Selected further reading Useful websites

70 73 77 86 89 91 92 93 93

Part Two DESIGN Chapter 4 process design Introduction What is process design? What objectives should process design have? Process types - the volume-variety effect on process design Detailed process design Summary answers to key questions Case study: The Action Response Applications Processing Unit (ARAPU) Problems and applications Selected further reading Useful websites

95

96 96 — 97 98 101 109 120 121 123 124 124

VII

Chapter 8

Chapter 5 Innovation a n d design in services and products

Process technology

223

125

Introduction

223

Introduction

125

How does innovation impact on design? Why is good design so important? The stages of design - from concept to specification What are the benefits of interactive design?

127 130

Operations management and process technology What do operations managers need to know about process technology? How are process technologies evaluated? How are process technologies implemented?

225 237 242

147

Summary answers to key questions Case study: Rochem Ltd

246 247

148

Problems and applications Selected further reading Useful websites

249 249 250

Chapter 9 People, j o b s a n d organization

251 251

131 141

Summary answers to key questions Case study: Chatsworth - the adventure playground decision Problems and applications Selected further reading Useful websites

-

150 150 151



225

Chapter 6 Supply n e t w o r k design

152

Introduction

Introduction

152

The supply network perspective Configuring the supply network Where should an operation be located? libng-term capacity management Break-even analysis of capacity expansion

153 155 160 168 174

People in operations Human resource strategy Organization design Job design Allocate work time

253 253 256 259 271

Summary answers to key questions Case study: Disneyland Resort Paris (abridged)

175 176

Problems and applications Selected further reading Useful websites

180 182 182

Summary answers to key questions Case study: Service Adhesives try again Problems and applications Selected further reading

273 21A 276 277

Useful websites

277

Supplement to Chapter 9 Work study

279

'

Supplement to Chapter 6 Forecasting

183

Introduction

183

Forecasting - knowing the options In essence forecasting is simple Approaches to forecasting Selected further reading

183 184 185 190

Chapter 7 Layout and flow

191

Introduction

191

What is layout? 193 The basic layout types 193 What type of layout should an operation choose? 200 How should each basic layout type be designed in detail? 204 Summary answers to key questions Case study: North West Constructive Bank (abridged)

217 218

Problems and applications Selected further reading Useful websites ,

220 222 222

VIII

-

—__^^

Introduction

279

Method study in job design Work measurement in job design

279 282

Part Three DELIVER - P L A N N I N G A N D C O N T R O L L I N G OPERATIONS

287

Chapter 10 The nature o f p l a n n i n g a n d c o n t r o l

288

Introduction

288

What is planning and control? The effect of supply and demand on planning and control Planning and control activities Controlling operations is not always routine

290 293 299 314

Summary answers to key questions

316

Case study: subText Studios, Singapore (abridged) Problems and applications Selected further reading Useful websites "

317 320 321 321

Chapter 11 Capacity management

322

Introduction

322

What is capacity management? How is capacity measured? Coping with demand fluctuation How can operations plan their capacity level? How is capacity planning a queuing problem?

324 326 334 343 348

Summary answers to key questions Case study: Blackberry Hill Farm Problems and applications Selected further reading Useful websites

353 354 358 360 360

Supplement to Chapter 11 Analytical Queuing Models

361

Introduction

361

Notation Variability Incorporating Little's law Types of queuing system

361 361 363 363

Chapter 12 Inventory management

368

Introduction

368

What is inventory? Why should there be any inventory? How much to order - the volume decision When to place an order - the timing decision How can inventory be controlled?

370 372 376 388 392

Summary answers to key questions Case study: supplies4medics.com Problems and applications Selected further reading Useful websites

398 400 401 402 402

Chapter 13 Supply chain management Introduction

404 „

What is supply chain management? The activities of supply chain management Single-and multi-sourcing

404 406 409 413

Relationships between operations in a supply chain How do supply chains behave in practice? How can supply chains be improved?

419 424 426

Summary answers to key questions Case study: Supplying fast fashion Problems and applications Selected further reading Useful websites

433 434 437 438 438

Chapter 14 Enterprise resource planning (ERP)

439

Introduction

439

What is ERP? How did ERP develop? Implementation of ERP systems

440 441 449

Summary answers to key questions Case study: Psycho Sports Ltd Problems and applications Selected further reading Useful websites

451 452 454 455 455

Supplement to Chapter 14 Materials requirements planning (MRP)

456

Introduction

456

Master production schedule The bill of materials (BOM) Inventory records The MRP netting process MRP capacity checks

456 458 459 459 461

Summary

463

Chapter 15 Lean synchronization

464

Introduction

464

What is lean synchronization? How does lean synchronization eliminate waste? Lean synchronization applied throughout the supply network Lean synchronization compared with other approaches

465

Summary answers to key questions Case study: The National Tax Service (NTS) Problems and applications Selected further reading Useful websites

471 484 486 489 490 492 493 494

IX

Chapter 16 Project management

495

Introduction

495

What is project management? How are projects planned and controlled? What is network planning?

497 500 514

Summary answers to key questions Case study: United Photonics Malaysia Sdn Bhd Problems and applications Selected further reading Useful websites

526 527 531 532 533

The key elements of operations improvement The broad approaches to managing improvement What techniques can be used for improvement? Summary answers to key questions Case study: GCR Insurance Problems and applications Selected further reading Useful websites

584 588 598 603 605 608 609 609

Chapter 19 Risk management

6io

Introduction

610

Chapter 17 Quality management

534

Introduction

534

612

536 540 541 541 548

613 624

Statistical process control (SPC)

What is risk management? Assessing the potential causes of and risks from failure , Preventi ng fai I u re How can operations mitigate the effects of failure? 556 How can operations recover from the effects of failure? 557 559 Summary answers to key questions 560 Case study: Slagelse Industrial 560 Services (SIS) Problems and applications Selected further reading Useful websites 562

Introduction

562

Control charts Variation in process quality Control charts for attributes Control chart for variables Process control, learning and knowledge Summary Selected further reading Useful websites

562 563 568 569 573 574 574 574

What is quality and why is it so important? How can quality problems be diagnosed? Conformance to specification Achieving conformance to specification Total quality management (TQM) Summary answers to key questions Case study: Turnround at the Preston plant Problems and applications Selected further reading Useful websites

Supplement to Chapter 17

Part Four IMPROVEMENT

577

Chapter 18 Operations improvement

578

Introduction

578

Why is improvement so important in operations management?

580

631 632 635 636 638 638 639

Chapter 20 Organizing for improvement

640

Introduction

640

Why the improvement effort needs organizing Li n ki ng i m p rovem ents to strategy What information is needed for improvement? .What should be improvement priorities? How can organizational culture affect improvement? Key implementation issues Summary answers to key questions Case study: Re-inventing Singapore's libraries Problems and applications Selected further reading Useful websites

642 643 645 652 657. 659 664 666 667 668 668

Part Five CORPORATE SOCIAL RESPONSIBILITY

671

Chapter 21 Operations and corporate social responsibility (CSR)

672

Introduction

.

What is corporate social responsibility? The wider view of corporate social responsibility

672 674 679

How can operations managers analyse CSR issues?

686

Summary answers to key questions Case study: CSR as it is presented Problems and applications Selected further reading Useful websites

689 690 691 691 691

Notes on chapters

693

Glossary

700

Index

713

XI

This Case Study presents the Action Response Applications Processing Unit (ARAPU). Action Response is presented as a London-based charity purposed with providing short-term funding for charitable causes around the world, ensuring that the charities have enough funding to continue operations while seeking more permanent funding from larger donors and sources. Action Response typically receives requests for funding from intermediary advocates who are seeking to aid small charities and seeks to process each request as quickly as possible so that funding is provided when and where it is needed most. Action Response’s overall objective is to process each application from receipt to response within a 20 day window. At no time had Action Response ever formally measured their response time, it was generally thought that all applications processed were not processed within this time frame. In order to provide a more honed and efficient process, Action Response Application Processing Unit’s first objective should be to engage in a Process Design Analysis. ARAPU will

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