Preface
Foreword
About the author
Acknowledgements
1. Operations and strategic decisions
1. Positioning operations management
and the supply chain 3
DEFING OPERATIONS MANAGEMENT AND THE SUPPLY CHAIN
Scope of operations management - The integrated
supply chain - Linkage supply chain and operations -
Serving the client - Importance of operations
management
CLASSIFICATION OF OPERATING SYSTEMS
Manufacturing industries - Service industries -
Classification anomalies - Not-for-profit organizations -
Economic classification of operations
OPERATIOND ARE INTERNATIONAL
Changes in the business environment -
Manufacturing firms - Service firms - Non-profit
organizations - Products are international - Foreign
sales and country size
EMPLOYMENT IN OPERATIONS
Manufacturing employment - Manufacturing output -
Service industries - European Union and Japan -
Developing regions - Accounting changes
MODEL OF OPERATIONS
Models in management - An operations model is a
miniature supply chain - Model economics - Product
added value
PRODUCTIVITY
Resources in operations - Productivity ratio -
Manufacturing - Service firms - Productivity changes -
Workweek and productivity
MANAGEMENT ACTIVITIES IN OPERATIONS
Interface with marketing - Working with the
finance department - Operations
SYSTEMS APPROACH TO OPERATIONS
Concept of a system - Sub-optimal performance -
System performance in the business firm -
System performance in the supply
chain
Evolution of technology - Operations and the
21st century
Case study 1.1 Pangas
2. Strategy of organizations 33
Ignore the environment - Adapt enough to survive -
Grow by exploiting opportunities - Profit, return
on investment, and cash flow
NOT-FOR-PROFIT ORGANIZATIONS
Consistency with financial resources - Equitable
services for all generations - Sources and uses of
funds should be matched - Sustainability of the
organization
THE STRATEGIC PLAN
Timeframe - Mission statement - SWOT
analysis - Action plans to achieve objectives -
Quantitative components of the
strategic plan
Strategic importance of operations and the supply
chain - Responsibilities of the firm - Challenges for
the firm
REAL-WORLD CORPORATE STRATEGIC OBJECTIVES
Hewlett-Packard - British Airways - IBM
Case study 2.1 British Petroleum
3. Site selection 47
DEFINING SITE SFLECTION 47
Nature of the facility - Strategy and operations -
Markets - Strategic role of foreign factories -
Corporate towns - Factors in site selection
STAFFING
Labour costs - Availability of competent labour -
Productivity - Trade unions - Education level - Local
labour and plant technology - Labour mix
INHERENT LOCAL CONDITIONS
Climate - Culture - Ethics - Language
INFRASTRUCTURE
Family services - Communication - Environmental
regulations - Legal framework - Transportation -
Rental costs - Living costs - Country stability
CONSTRUCTION
Land cost - Construction labour - Land preparation -
Expansion possibilities - Zoning regulations -
Environmental regulations - Material availability
FACTORS THAT IMPACT CASH FLOW
Fluctuating exchange rates - Repatriation of funds -
Taxes on operations
FINANCIAL AID
USA - United Kingdom - Germany
PROXIMITY OF RESOURCES
Raw materials - Process and utility water - Reliability of
power supplies - Suppliers or subcontractors
QUANTITATIVE APPROACHES TO SITE SELECTION
Weighting the selection criteria - Breakeven analysis -
Uncertainty and risk - Centre of gravity
Case study 3.1 Holger Co.
4. Quality management 80
QUALITY CONCERNS
Quality issues for specific industries - Quality is
a strategic issue - Quality and the supply chain -
Customers drive quality - Net income and quality
DEFINITION OF QUALITY
International Organization for Standardization -
Specification - Grade - National origin
TOTAL QUALITY MANAGEMNET
Top management - Quality-related training
Manufacturing quality supply chain - Service quality
chain - Communication - Necessity for
total quality management
LEADING PROPONENTS OF QUALITY MANAGEMENT
Deming - Juran - Crosby - Feigenbaum
COSTS OF QUALITY AND NON-QUALITY
External faults - Internal faults - Preventive
measures - Detection and/or evaluation - Percentage
cost of quality - Costs are long term - Costs and the
level of quality design
QUALITY CONTROL
Defective product - Reliability or durability -
Reproducibility - Quality control departments -
Inspection in quality control - Traceability
QUALTY-RELATED TOOLS AND TECHNIQUES
ABC analysis - Activity-based costing - Benchmarking -
Brainstorming - Failure mode, effect, and criticality
analysis - Frequency check sheets - Hoshin -
Improvement monitoring charts - Ishikawa diagram -
Just-in-time - Kaizen, or continuous improvement -
Keep designs simple - Overall equipment
effectiveness - Pareto analysis - Phantom customer in
services - Pipeline map - Poka yoke - Process flow
chart - Quality circles - Quality function deployment -
Reengineering - Scatter diagram - Spider web -
Statistical quality control charts - Taguchi
methods
INTERNATIONAL ORGANIZATION FOR STANDARDIZATION AND ISO-9000
International Organization for Standardization -
Evolution of the ISO Quality Standard - Basis of ISO-
9000 standards - Importance of certification -
Criticism of certification
EUROPEND FOUNDATION FOR QUALITY MANAGEMENT
Background- Mission of the EFQM -The European
Quality Award programme and the EFQM model -
Award winners
THE UK BEST FACTORY AWARDS
Background - Evaluation criteria - Timetable of
award process - Award categories and winners
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
Malcolm Baldrige and the award - Background of the
award - Purpose of the quality award - Award criteria -
Award winners
ETHICS AND QUALITY
Correlation between quality and ethical
situations
Case study 4.1 Mitsubishi
Case study 4.2 Wento Corp.
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