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OPERATIONS MANAGEMENT
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Further reading in Operations Management
Take your study and interest in operations management further with these leading
textbooks written by the same team of expert authors.
OPERATIONS MANAGEMENT
Sixth Edition
Nigel Slack
Stuart Chambers
Robert Johnston
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
© Nigel Slack, Stuart Chambers, Christine Harland, Alan Harrison, Robert Johnston 1995, 1998
© Nigel Slack, Stuart Chambers, and Robert Johnston 2001, 2004, 2007, 2010
The rights of Nigel Slack, Stuart Chambers, and Robert Johnston to be identified as authors
of this work have been asserted by them in accordance with the Copyright, Designs and
Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without either the prior written permission of the publisher or a
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Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
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or endorsement of this book by such owners.
ISBN: 978-0-273-73046-0
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Chapter 12 Chapter 15
Inventory planning and control 340 Lean synchronization 429
Chapter 20
Part Four
Organizing for improvement 601
IMPROVEMENT 539
Introduction 601
Why the improvement effort needs organizing 603
Chapter 18 Linking improvements to strategy 603
Operations improvement 540
Information for improvement 606
Introduction 540 Improvement priorities – what to start on? 612
Why improvement is so important 542 Improvement culture 617
Elements of improvement 542 Implementing improvement 620
Approaches to improvement 549 Summary answers to key questions 624
Improvement techniques 558 Case study: Re-inventing Singapore’s libraries 626
Summary answers to key questions 564 Problems and applications 628
Case study: Geneva Construction Selected further reading 628
and Risk 565 Useful web sites 629
Problems and applications 569
Selected further reading 570
Useful web sites 570 Part Five
CORPORATE SOCIAL RESPONSIBILITY 631
Chapter 19
Risk management 571 Chapter 21
Introduction 571 Operations and corporate social
What is risk management? 573 responsibility (CSR) 632
Assess the potential causes of and risks
Introduction 632
from failure 573
What is corporate social responsibility? 633
Preventing failure occurring 586
How does the wider view of corporate social
Mitigating the effects of failure 592
responsibility influence operations
Recovering from the effects of failure 593
management? 637
Summary answers to key questions 596
How can operations managers analyse CSR
Case study: The Chernobyl failure 597
issues? 646
Problems and applications 599
Summary answers to key questions 648
Selected further reading 600
Case study: CSR as it is presented 649
Useful web sites 600
Problems and applications 650
Selected further reading 651
Useful web sites 651
Step 6 Use your own experience. Every day, you’re Step 10 Start now! Don’t wait until two weeks before an
experiencing an opportunity to apply the principles assignment is due. Log on (www.myomlab.com), read
of operations management. Why is the queue at the on, and GOOD LUCK!
airport check-in desk so long? What goes on behind
the ‘hole in the wall’ of your bank’s ATM machines? Nigel Slack
About the authors
Nigel Slack is the Professor of Operations Management Rolls Royce Aerospace, graduating in mechanical engi-
and Strategy at Warwick University. Previously he has neering, and then worked in production and general
been Professor of Service Engineering at Cambridge management with companies including Tube Invest-
University, Professor of Manufacturing Strategy at Brunel ments and the Marley Tile Company. In his mid-thirties
University, a University Lecturer in Management Studies and seeking a career change, he studied for an MBA, and
at Oxford University and Fellow in Operations Manage- then took up a three-year contract as a researcher in
ment at Templeton College, Oxford. manufacturing strategy. This work enabled him to help
He worked initially as an industrial apprentice in the executives develop the analyses, concepts and practical
hand-tool industry and then as a production engineer solutions required for them to develop manufacturing
and production manager in light engineering. He holds strategies. Several of the case studies prepared from this
a Bachelor’s degree in Engineering and Master’s and work have been published in an American textbook
Doctor’s degrees in Management, and is a chartered on manufacturing strategy. In addition to lecturing on
engineer. He is the author of many books and papers in a range of operations courses at the Business School
the operations management area, including The Manu- and in industry, he undertakes consultancy in a diverse
facturing Advantage, published by Mercury Business range of industries and is co-author of several operations
Books, 1991, and Making Management Decisions (with management books.
Steve Cooke), 1991, published by Prentice Hall, Service
Superiority (with Robert Johnston), published in 1993 Robert Johnston is Professor of Operations Manage-
by EUROMA and Cases in Operations Management (with ment at Warwick Business School and its Deputy Dean.
Robert Johnston, Alan Harrison, Stuart Chambers and He is the founding editor of the International Journal
Christine Harland) third edition published by Financial of Service Industry Management and he also serves on
Times Prentice Hall in 2003, The Blackwell Encyclopedic the editorial board of the Journal of Operations Man-
Dictionary of Operations Management (with Michael agement and the International Journal of Tourism and
Lewis) published by Blackwell in 2005, Operations Hospitality Research. He is the author of the market
Strategy together with Michael Lewis, the second edition leading text, Service Operations Management (with
published by Financial Times Prentice Hall in 2008 and Graham Clark), now in its 3rd edition (2008), published
Perspectives in Operations Management (Volumes I to by Financial Times Prentice Hall. Before moving to
IV) also with Michael Lewis, published by Routledge academia Dr Johnston held several line management
in 2003. He has authored numerous academic papers and senior management posts in a number of service
and chapters in books. He also acts as a consultant to organizations in both the public and private sectors.
many international companies around the world in many He continues to maintain close and active links with
sectors, especially financial services, transport, leisure many large and small organizations through his research,
and manufacturing. His research is in the operations and management training and consultancy activities. As a
manufacturing flexibility and operations strategy areas. specialist in service operations, his research interests
include service design, service recovery, performance
Stuart Chambers is a Principle Teaching Fellow at measurement and service quality. He is the author or
Warwick Business School, where he has been since 1988. co-author of many books, as well as chapters in other
He began his career as an undergraduate apprentice at texts, numerous papers and case studies.
Acknowledgements
During the preparation of the fifth edition of this book, Sohal of Monash University, Alex Skedd of Northumbria
the authors conducted a number of ‘faculty workshops’ Business School, Martin Spring of Lancaster University,
and the many useful comments from these sessions have Dr Ebrahim Soltani of the University of Kent, R. Stratton
influenced this and the other books for the ‘Warwick of Nottingham Trent University, Dr Nelson Tang of the
group’. Our thanks go to everyone who attended these University of Leicester, David Twigg of Sussex Univer-
sessions and other colleagues. We thank Pär Åhlström of sity, Helen Valentine of the University of the West of
Stockholm School of Economics and Alistair Brandon- England, Professor Roland van Dierdonck of the Univer-
Jones of Bath University for assistance well beyond the sity of Ghent, Dirk Pieter van Donk of the University of
call of duty, Alan Betts of ht2.org for case writing help Groningen and Peter Worthington.
and support, and Shirley Johnston for case writing help Our academic colleagues in the Operations Manage-
and support. Also, Professor Sven Åke Hörte of Lulea ment Group at Warwick Business School also helped,
University of Technology, Eamonn Ambrose of Univer- both by contributing ideas and by creating a lively and
sity College, Dublin, Colin Armistead of Bournemouth stimulating work environment. Our thanks go to Jannis
University, Ran Bhamra, Loughbrough University, Ruth Angelis, Nicola Burgess, Dan Chicksand, Michaelis
Boaden of Manchester Business School, Peter Burcher of Giannakis, Zoe Radnor, Michael Shulver, Rhian
Aston University, John K Christiansen of Copenhagen Silvestro, Nick Wake, Dick Wheeler, Helen Walker,
Business School, Philippa Collins of Heriot-Watt Univer- and Paul Walley. We are also grateful to many friends,
sity, Henrique Correa of Rollins College, Florida, Paul colleagues and company contacts. In particular thanks
Coughlan, Trinity College Dublin, Simon Croom, Univer- for help with this edition goes to Philip Godfrey and
sity of San Diego, Stephen Disney, Cardiff University, Cormac Campbell and their expert colleagues at OEE,
Doug Davies of University of Technology, Sydney, Tony David Garman and Carol Burnett of The Oakwood
Dromgoole of the Irish Management Institute, Dr J.A.C. Partnership, Clive Buesnel of Xchanging, Hans Mayer
de Haan of Tilburg University, Carsten Dittrich, Univer- and Tyko Persson of Nestlé, Peter Norris and Mark Fisher
sity of Southern Denmark, David Evans of Middlesex of the Royal Bank of Scotland, John Tyley of Lloyds
University, Paul Forrester of Keele University, Keith TSB, Joanne Chung of Synter BMW, Michael Purtill of
Goffin, Cranfield University, Ian Graham of Edinburgh Four Seasons Hotel Group, Catherine Pyke and Nick
University, Alan Harle of Sunderland University, Fudge of Lower Hurst Farm, Johan Linden of SVT,
Norma Harrison of Macquarie University, Catherine John Matthew of HSPG, Dan McHugh of Credit Swiss
Hart of Loughborough Business School, Chris Hillam First Boston, David Nichol of Morgan Stanley, Leigh
of Sunderland University, Ian Holden of Bristol Busi- Rix of The National Trust, and Simon Topman of Acme
ness School, Matthias Holweg, Cambridge University, Whistles. Mary Walton is coordinator to our group
Mickey Howard, Bath University, Brian Jefferies of West at Warwick Business School. Her continued efforts at
Herts College, Tom Kegan of Bell College of Techno- keeping us organized (or as organized as we are capable
logy, Hamilton, Denis Kehoe, Liverpool University, Mike of being) are always appreciated, but never more so
Lewis, Bath University, Peter Long of Sheffield Hallam than when we were engaged on ‘the book’.
University, John Maguire of the University of Sunder- We were lucky to receive continuing professional and
land, Charles Marais of the University of Pretoria, Roger friendly assistance from a great publishing team. Especial
Maull, Exeter University, Bart McCarthy, Nottingham thanks to Matthew Walker, Elizabeth Wright and Colin
University, Harvey Maylor of Cranfield University, John Reed.
Meredith Smith of EAP, Oxford, Michael Milgate of Finally, all six editions were organized, and largely
Macquarie University, Keith Moreton of Staffordshire word processed by Angela Slack. It was, yet again, an
University, Chris Morgan, Cranfield University, Adrian heroic effort. To Angela – our thanks.
Morris of Sunderland University, Steve New, Oxford
University, John Pal of Manchester Metropolitan Univer- Nigel Slack
sity, Peter Race of Henley College, Reading University, Stuart Chambers
Ian Sadler of Victoria University, Richard Small, Supply Robert Johnston
Network Solutions, Andi Smart, Exeter University, Amrik
Acknowledgements xxv
Publisher’s acknowledgements
We are grateful to the following for permission to reproduce 93 Getty Images: Burje/Triolo Productions (tr). Rex Features:
copyright material: Richard Jones (cr). 94 Alamy Images: Directphoto.org (t).
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Figures 113 Rex Features: Action Press. 116 Alamy Images: Adrian
Figure 15.11 from ‘Strategies for implemeting JIT’ in Just in Time Sherratt. 120 Getty Images. 122 Photographers Direct: Martin
Manufacture IFS/Springer-Verlag (Voss, C.A., and Harrison, A. Karius. 139 Corbis: Gianni Giansanti /Sygma. 145 Rex
1987) Springer; Figure 17.4 adapted from A conceptual model Features: Image Source. 147 Getty Images: AFP. 151 Getty
of service quality and implications for future research, Journal Images: AFP. 162 Corbis: Jacques Langevin. 178 Alamy Images:
of Marketing, vol. 49, Fall, pp. 41–50 (Parasuraman, A. et al. British Retail Photography. 186 Cadbury World: (t). Corbis:
1985), American Marketing Association. Marijan Murat/epa (b). 207 Rex Features: Action Press. 210
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213 Rex Features. 216 Rex Features. 220 Photographers
Tables Direct: Andy Maluche. 224 SVT Bengt O Nordin. 230 Press
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Table 8.1 after E-commerce and its impact on operations man-
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agement, International Journal of Production Economics, 75,
247 Corbis: Reuters. 248 Getty Images. 250 Rex Features:
pp. 185 –97 (Gunasekaran, A., Marri, H.B., McGaughey, R.E.
Voisin Phanie. 251 Getty Images: Williams & Hirakawa.
and Nebhwani, M.D. 2002), Elsevier; Table S9.2 adapted from
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Adapted from Barnes, Frank C. (1983) ‘Principles of Motion
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Economy: Revisited, Reviewed, and Restored’, Proceedings
Dairies. 294 Courtesy of Arup. 298 Wincanton. 304 Alamy
of the Southern Management Association Annual Meeting
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(Atlanta, G.A. 1983), p. 298.
G Flayols /Photocuisine. 317 Press Association Images: Orlin
In some instances we have been unable to trace the owners of Wagner/AP. 341 Alamy Images: Van Hilversum. 356 Howard
copyright material, and we would appreciate any information Smith Paper Group. 369 Alamy Images: Archive Berlin
that would enable us to do so. Fotoagentur GmbH. 374 Alamy Images: Imagebroker. 379
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385 TDG Logistics. 387 Virgin Atlantic. 398 Getty Images: AFP.
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The publisher would like to thank the following for their kind
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All other images © Nigel Slack, Stuart Chambers and Robert
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Johnston
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68 Alamy Images: Rob Crandell. 74 Alamy Images: Bernhard we apologise in advance for any unintentional omissions. We
Classen. 87 Getty Images: AFP. 90 Getty Images. 92 Corbis: would be pleased to insert the appropriate acknowledgement
Construction Photography (cr); Heinz von Heyenaber (br). in any subsequent edition of this publication.