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Welcome to

OPERATIONS MANAGEMENT

Operations Management is important, exciting, challenging, and everywhere your


look!
Important, because it’s concerned with creating all of the products and services upon
which we depend. Exciting, because it’s at the centre of so many of the changes affecting
the world of business. Challenging, because the solutions that we find need to work
globally and responsibly within society and the environment. And everywhere, because
every service and product that you use – the cereal you eat at breakfast, the chair you sit
on, and the radio station you listen to while you eat – is the result of an operation or
process.
Our aim in writing Operations Management is to give you a comprehensive understanding
of the issues and techniques of operations management, and to help you get a great final
result in your course. Here’s how you might make the most of the text:
● Get ahead with the latest developments – from the up-to-the-minute Operations in
practice features in every chapter to the focus on corporate social responsibility in the
final chapter – these put you at the cutting edge.
● Use the Worked examples and Problems and applications to improve your use of key
quantitative and qualitative techniques, and work your way to better grades in your
assignments and exams.
● Follow up on the recommended readings at the end of each chapter. They’re specially
selected to enhance your learning and give you an edge in your course work.
And in particular, look out for the references to
MyOMLab in the text, and log on to
www.myomlab.com* where you can
● check and reinforce your understanding of key concepts using self-assessment
questions, audio summaries, animations video clips and more;
● practice your problem-solving with feedback, guided solutions and a limitless supply of
questions!
We want Operations Management to give you what you need: a comprehensive view of the
subject, an ambition to put that into practice, and – of course – success in your
studies. So, read on and good luck!
Nigel Slack
Stuart Chambers
Robert Johnston

* P.S. In order to log in to MyOMLab, you’ll need to register with the access code included with all
new copies of the book.
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

Visit us on the World Wide Web at:


www.pearsoned.co.uk

First published under the Pitman Publishing imprint 1995


Second edition (Pitman Publishing) 1998
Third edition 2001
Fourth edition 2004
Fifth edition 2007
Sixth edition 2010

© 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
licence permitting restricted copying in the United Kingdom issued by the Copyright
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
rights in such trademarks, nor does the use of such trademarks imply any affiliation with
or endorsement of this book by such owners.

ISBN: 978-0-273-73046-0

British Library Cataloguing-in-Publication Data


A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data


Slack, Nigel.
Operations management / Nigel Slack, Stuart Chambers, Robert Johnston. – 6th ed.
p. cm.
ISBN 978-0-273-73046-0 (pbk.)
1. Production management. I. Chambers, Stuart. II. Johnston, Robert, 1953– III. Title.
TS155.S562 2010
658.5–dc22

10 9 8 7 6 5 4 3 2 1
14 13 12 11 10

Typeset in 10/12pt Minion by 35


Printed and bound by Rotolito Lombarda, Italy

The publisher’s policy is to use paper manufactured from sustainable forests.


Brief contents

Guide to ‘operations in practice’, Part Three


examples, short cases and PLANNING AND CONTROL 267
case studies xi
10 The nature of planning and control 268
Making the most of this book 11 Capacity planning and control 297
and MyOMLab xiv
Supplement to Chapter 11 – Analytical
Preface xviii queuing models 333
To the Instructor xx 12 Inventory planning and control 340
To the Student xxi 13 Supply chain planning and control 373
Ten steps to getting a better grade in 14 Enterprise resource planning (ERP) 406
operations management xxii Supplement to Chapter 14 – Materials
About the authors xxiii requirements planning (MRP) 422
15 Lean synchronization 429
Acknowledgements xxiv
16 Project planning and control 457
17 Quality management 495
Part One
INTRODUCTION 1 Supplement to Chapter 17 – Statistical
process control (SPC) 520
1 Operations management 2
2 Operations performance 32 Part Four
IMPROVEMENT 539
3 Operations strategy 60
18 Operations improvement 540
Part Two 19 Risk management 571
DESIGN 85 20 Organizing for improvement 601

4 Process design 86 Part Five


5 The design of products and services 112 CORPORATE SOCIAL
6 Supply network design 138 RESPONSIBILITY 631
Supplement to Chapter 6 – Forecasting 168 21 Operations and corporate social
responsibility (CSR) 632
7 Layout and flow 177
8 Process technology 206 Notes on chapters 652
9 People, jobs and organization 233 Glossary 658
Supplement to Chapter 9 – Work study 259 Index 670
Contents

Guide to ‘operations in practice’, examples, Problems and applications 58


short cases and case studies xi Selected further reading 59
Making the most of this book and MyOMLab xiv Useful web sites 59
Preface xviii
To the Instructor xx Chapter 3
To the Student xxi Operations strategy 60
Ten steps to getting a better grade in
Introduction 60
operations management xxii
What is strategy and what is operations strategy? 62
About the authors xxiii
The ‘top-down’ and ‘bottom-up’ perspectives 65
Acknowledgements xxiv
The market requirements and operations
resources perspectives 68
The process of operations strategy 75
Part One Summary answers to key questions 79
INTRODUCTION 1 Case study: Long Ridge Gliding Club 80
Problems and applications 81
Chapter 1 Selected further reading 82
Operations management 2 Useful web sites 82
Introduction 2
What is operations management? 4
Operations management is important in Part Two
all types of organization 6 DESIGN 85
The input–transformation–output process 11
The process hierarchy 15 Chapter 4
Operations processes have different Process design 86
characteristics 19 Introduction 86
The activities of operations management 23 What is process design? 87
Summary answers to key questions 25 What effects should process design have? 88
Case study: Design house partnerships at Process types – the volume–variety effect on
Concept Design Services 27 process design 91
Problems and applications 30 Detailed process design 96
Selected further reading 30 Summary answers to key questions 108
Useful web sites 31 Case study: The Central Evaluation Unit 109
Problems and applications 110
Chapter 2 Selected further reading 111
Operations performance 32 Useful web sites 111
Introduction 32
Operations performance is vital for any Chapter 5
organization 34 The design of products and services 112
The quality objective 40 Introduction 112
The speed objective 42 Why is good design so important? 114
The dependability objective 44 The benefits of interactive design 129
The flexibility objective 46 Summary answers to key questions 134
The cost objective 48 Case study: Chatsworth – the adventure
Trade-offs between performance objectives 54 playground decision 135
Summary answers to key questions 56 Problems and applications 136
Case study: Operations objectives at Selected further reading 137
the Penang Mutiara 57 Useful web sites 137
viii Contents

Chapter 6 Organization design 238


Supply network design 138 Job design 241
Introduction 138 Summary answers to key questions 255
The supply network perspective 140 Case study: Service Adhesives tries again 256
Configuring the supply network 142 Problems and applications 257
The location of capacity 146 Selected further reading 258
Long-term capacity management 155 Useful web sites 258
Summary answers to key questions 161 Supplement to Chapter 9
Case study: Disneyland Resort Paris (abridged) 162 Work study 259
Problems and applications 166
Selected further reading 167 Introduction 259
Useful web sites 167 Method study in job design 259
Work measurement in job design 262
Supplement to Chapter 6
Forecasting 168
Introduction 168 Part Three
Forecasting – knowing the options 168 PLANNING AND CONTROL 267
In essence forecasting is simple 169
Approaches to forecasting 170 Chapter 10
Selected further reading 176 The nature of planning and control 268
Introduction 268
Chapter 7 What is planning and control? 270
Layout and flow 177
Supply and demand affect planning and control 272
Introduction 177 Planning and control activities 277
What is layout? 179 Summary answers to key questions 293
The basic layout types 180 Case study: Air traffic control – a world-class
What type of layout should an operation juggling act 294
choose? 187 Problems and applications 295
Detailed design of the layout 189 Selected further reading 296
Summary answers to key questions 202 Useful web sites 296
Case study: Weldon Hand Tools 203
Problems and applications 204 Chapter 11
Selected further reading 205 Capacity planning and control 297
Useful web sites 205
Introduction 297
What is capacity management? 299
Chapter 8
Measuring demand and capacity 301
Process technology 206
The alternative capacity plans 309
Introduction 206 Choosing a capacity planning and control
What is process technology? 208 approach 317
Understanding process technologies 209 Capacity planning as a queuing problem 322
Evaluating process technologies 221 Summary answers to key questions 327
Implementing process technologies 227 Case study: Holly Farm 328
Summary answers to key questions 229 Problems and applications 331
Case study: Rochem Ltd 230 Selected further reading 332
Problems and applications 232 Useful web sites 332
Selected further reading 232
Useful web sites 232 Supplement to Chapter 11
Analytical queuing models 333
Chapter 9 Introduction 333
People, jobs and organization 233 Notation 333
Introduction 233 Variability 334
People in operations 235 Incorporating Little’s law 335
Human resource strategy 236 Types of queuing system 336
Contents ix

Chapter 12 Chapter 15
Inventory planning and control 340 Lean synchronization 429

Introduction 340 Introduction 429


What is inventory? 342 What is lean synchronization? 431
Why is inventory necessary? 342 Eliminate waste 435
Some disadvantages of holding inventory 345 Lean synchronization applied throughout
The volume decision – how much to order 346 the supply network 447
The timing decision – when to place an order 357 Lean synchronization and other approaches 449
Inventory analysis and control systems 362 Summary answers to key questions 452
Summary answers to key questions 368 Case study: Boys and Boden (B&B) 453
Case study: Trans-European Plastics 369 Problems and applications 455
Problems and applications 371 Selected further reading 456
Selected further reading 371 Useful web sites 456
Useful web sites 372
Chapter 16
Project planning and control 457
Chapter 13
Supply chain planning and control 373 Introduction 457
What is a project? 459
Introduction 373 Successful project management 461
What is supply chain management? 375 The project planning and control process 462
The activities of supply chain management 377 Network planning 475
Types of relationships in supply chains 386 Summary answers to key questions 487
Supply chain behaviour 391 Case study: United Photonics Malaysia Sdn Bhd 488
Supply chain improvement 394 Problems and applications 493
Summary answers to key questions 400 Selected further reading 494
Case study: Supplying fast fashion 401 Useful web sites 494
Problems and applications 404
Selected further reading 405 Chapter 17
Useful web sites 405 Quality management 495
Introduction 495
Chapter 14 What is quality and why is it so important? 497
Enterprise resource planning (ERP) 406 Diagnosing quality problems 501
Conformance to specification 502
Introduction 406
Total quality management (TQM) 508
What is ERP? 408
Summary answers to key questions 515
How did ERP develop? 408
Case study: Turnround at the Preston plant 516
Implementation of ERP systems 415
Problems and applications 518
Summary answers to key questions 417
Selected further reading 519
Case study: Psycho Sports Ltd 418
Useful web sites 519
Problems and applications 420
Selected further reading 421 Supplement to Chapter 17
Useful web sites 421 Statistical process control (SPC) 520
Introduction 520
Supplement to Chapter 14
Control charts 520
Materials requirements planning
Variation in process quality 521
(MRP) 422
Control charts for attributes 527
Introduction 422 Control chart for variables 528
Master production schedule 422 Process control, learning and knowledge 532
The bill of materials (BOM) 424 Acceptance sampling 533
Inventory records 425 Sampling plans 533
The MRP netting process 425 Summary 535
MRP capacity checks 428 Selected further reading 536
Summary 428 Useful web sites 536
x Contents

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

Notes on chapters 652


Glossary 658
Index 670
Guide to ‘operations in practice’, examples,
short cases and case studies

Chapter Location Company/example Region Sector/activity Company size


Chapter 1 p. 3 IKEA Global Retail Large
Operations p. 8 Acme Whistles UK Manufacturing Small
management p. 9 Oxfam Global Charity Large
p. 14 Prêt A Manger Europe/USA Retail Medium
p. 21 Formule 1 Europe Hospitality Large
p. 21 Mwagusi Safari Lodge Tanzania Hospitality Small
p. 27 Concept Design Services UK Design/manufacturing/ Medium
distribution
Chapter 2 p. 33 A tale of two terminals Dubai and UK Transport Large
Operations p. 41 Lower Hurst Farm UK Agricultural Small
performance p. 43 Accident recovery General Healthcare Medium
p. 44 Dabbawalas hit 99.9999% India General service Large
dependability
p. 47 BBC Global Media Large
p. 49 Aldi Europe Retail Large
p. 51 Hon Hai Precision Industry Taiwan/China Manufacturing Large
p. 57 Mutiara Beach Resort, Penang Malaysia Hospitality Medium
Chapter 3 p. 61 Two operations strategies: Global/Europe Manufacturing service/ Large
Operations Flextronics and Ryanair transport
strategy p. 68 Giordano Asia Retail Large
p. 74 Amazon what exactly is your Global Retail/business Large
core competence? services
p. 77 Sometimes any plan is better Europe Military Large
than no plan
p. 80 Long Ridge Gliding Club UK Sport Small
Chapter 4 p. 87 McDonalds USA Quick service Large
Process design p. 90 Daimler-Chrysler, Smart car France Auto manufacturing Large
p. 107 Heathrow UK Transport Large
p. 109 The Central Evaluation Unit Belgium Non-governmental Large
(European Union Directorate) organization
Chapter 5 p. 113 Airbus A380 Europe Aerospace Large
The design of p. 116 Dyson Global Design/manufacturing Large
products and p. 120 Square water melons Japan Retail/Agriculture Various
services p. 122 Daniel Hersheson UK Hairdressing Small
p. 125 Art Attack! UK Media Small
p. 135 Chatsworth House UK Tourism Medium
Chapter 6 p. 139 Dell Global Computer Large
Supply network manufacturing
design p. 145 Hon Hai, Quanta and Compal Taiwan Computer Large
manufacturing
p. 147 Tata Nano India Manufacturing Large
p. 149 Tesco Thailand Retail Large
p. 151 High-tech subcontracting India/China Research and Medium/large
development
p. 162 Disneyland Paris France Entertainment Large
xii Guide to ‘operations in practice’, examples, short cases and case studies

Chapter Location Company/example Region Sector/activity Company size


Chapter 7 p. 178 Tesco Global Retail Large
Layout and flow p. 180 Surgery UK Healthcare Medium
p. 185 Yamaha Japan Piano manufacturing Large
p. 186 Cadbury UK Entertainment and Large
manufacturing
p. 203 Weldon Hand Tools UK Manufacturing Large
Chapter 8 p. 207 Airlines All Airlines Large
Process p. 210 Robots All Security Various
technology p. 211 Yo! Sushi UK Restaurants Medium
p. 213 IBM USA Disaster recovery Large
p. 218 Farming Netherlands Agriculture Medium
p. 220 QB House Asia Hairdressing Medium
p. 224 SVT (Sveriges Television) Sweden Media Large
p. 230 Rochem Ltd UK Food processing Medium
Chapter 9 p. 234 W.L. Gore and Associates Global Manufacturing and Large
People, jobs research
and p. 237 Google Global e-services Large
organization p. 247 McDonalds UK Restaurants Large
p. 250 Lloyds TSB Europe Banking Large
p. 256 Service Adhesives Europe Manufacturing Large
Chapter 10 p. 269 BMW dealership UK Service and repair Medium
The nature of p. 273 Air France Global Airline Large
planning and p. 281 Accident and Emergency All Healthcare Large
control p. 286 Chicken salad sandwich All Food processing Large
(Part 1)
p. 292 Robert Wiseman Dairies UK Milk distribution Large
p. 294 Air traffic control All Air travel Medium
Chapter 11 p. 298 Britvic Europe Distribution Large
Capacity p. 304 Seasonal products and services All Various Various
planning p. 309 British Airways London Eye UK Tourism Medium
and control p. 310 Lettuce growing Europe Agriculture Large
p. 315 Seasonal products and services UK/Global Food processing/media Large
p. 317 Greetings cards All Design Large
p. 326 Madame Tussauds, Amsterdam Netherlands Tourism Medium
p. 328 Holly Farm UK Agriculture/ Small
entertainment
Chapter 12 p. 341 UK National Blood Service UK Healthcare Large
Inventory p. 348 Croft Port Europe Beverages Large
planning and p. 356 The Howard Smith Paper Group UK Distribution service Large
control p. 369 Trans-European Plastic France Manufacturing Large
Chapter 13 p. 374 Siemens Europe Service and Large
Supply chain manufacturing
planning and p. 379 Ford Motor Company Global Auto manufacturing Large
control p. 384 Levi Straus & Co Global Garment design/ Large
retailing
p. 385 TDG Europe Logistics services Large
p. 397 Northern Foods Europe Food services Large
p. 398 Seven-Eleven Japan Japan Retail Large
p. 401 H&M, Benetton and Zara Global Design/manufacturing/ Large
distribution/retail
Guide to ‘operations in practice’, examples, short cases and case studies xiii

Chapter Location Company/example Region Sector/activity Company size


Chapter 14 p. 407 Rolls Royce Global Aerospace Large
Enterprise p. 410 SAP Global IT services Large
Resource p. 411 Chicken salad sandwich All Food processing Small
Planning (Part 2)
p. 414 SAP Global IT services Large
p. 417 What a waste US Waste management Large
p. 418 Psycho Sports Ltd All Manufacturing Small
Chapter 15 p. 430 Toyota Motor Company Global Auto manufacturing Large
Lean p. 440 Hospitals UK Healthcare Medium/large
synchronization
Chapter 16 p. 458 The Millau Bridge France Construction Large
Project p. 465 The National Trust UK Heritage Various
planning p. 47 Access HK Hong Kong Charity Small
and control p. 488 United Photonics Malaysia Malaysia Research and Medium
Sdn Bhd development
Chapter 17 p. 496 Four Seasons Hotel Global/UK Hospitality Large
Quality p. 499 Tea and Sympathy USA Hospitality Small
management p. 500 Magic Moments UK Photography services Small
p. 505 Vitacress Europe Agriculture Large
p. 507 Surgical Statistics US Healthcare Various
p. 512 IBM Canada IT services Large
p. 516 Rendall Graphics Canada Manufacturing Medium
Chapter 18 p. 541 Heineken International (Part I) Netherlands Brewery Large
Improvement p. 548 Erdington UK Beverage Large
p. 556 Xchanging Europe Process outsourcing Large
p. 565 Geneva Construction and Europe Insurance Large
Risk (GCR)
Chapter 19 p. 572 Cadburys Salmonella outbreak Global Confectionary Large
Risk p. 575 Not what you want to hear USA Airline Large
management p. 577 Viruses, threats and 30 years Global Internet Various
of spam
p. 592 Otis Elevators Global Facilities services Large
p. 597 Chernobyl Ukraine Power generation Large
Chapter 20 p. 602 Taxing Quality Denmark Public service Large
Organizing for p. 620 Heineken International (Part II) Netherlands Brewery Large
improvement p. 622 Work-Out at GE Global Various ?Large
p. 626 Singapore Libraries Singapore ? ?
Chapter 21 p. 635 Ecological footprints All All All
Corporate p. 638 HP Recycling Program Global Manufacturing Large
social p. 642 The Gap between perception, Global Retail Large
responsibility reality and intention
(CSR) p. 649 CSR as it is presented Various Various Various
Preface

Introduction ● Strategic in its perspective. It is unambiguous in


treating the operations function as being central to
Operations management is important. It is concerned competitiveness.
with creating the services and products upon which we ● Conceptual in the way it explains the reasons why
all depend. And all organizations produce some mixture operations managers need to take decisions.
of services and products, whether that organization is ● Comprehensive in its coverage of the significant ideas
large or small, manufacturing or service, for profit or and issues which are relevant to most types of
not for profit, public or private. Thankfully, most com- operation.
panies have now come to understand the importance ● Practical in that the issues and challenges of making
of operations. This is because they have realized that operations management decisions in practice are
effective operations management gives the potential to discussed. The ‘Operations in practice’ feature, which
improve both efficiency and customer service simulta- starts every chapter, the short cases that appear
neously. But more than this, operations management is through the chapters, and the case studies at the end
everywhere, it is not confined to the operations function. of each chapter, all explore the approaches taken
All managers, whether they are called Operations or by operations managers in practice.
Marketing or Human Resources or Finance, or what- ● International in the examples which are used. There
ever, manage processes and serve customers (internal are over 120 descriptions of operations practice from
or external). This makes, at least part of their activities all over the world.
‘operations’. ● Balanced in its treatment. This means we reflect the
Operations management is also exciting. It is at the balance of economic activity between service and
centre of so many of the changes affecting the business manufacturing operations. Around seventy-five per
world – changes in customer preference, changes in cent of examples are from service organizations and
supply networks brought about by internet-based twenty-five percent from manufacturing.
technologies, changes in what we want to do at work,
how we want to work, where we want to work, and
so on. There has rarely been a time when operations Who should use this book?
management was more topical or more at the heart of Anyone who is interested in how services and products
business and cultural shifts. are created.
Operations management is also challenging. Promot-
ing the creativity which will allow organizations to ● Undergraduates on business studies, technical or
respond to so many changes is becoming the prime joint degrees should find it sufficiently structured to
task of operations managers. It is they who must find provide an understandable route through the subject
the solutions to technological and environmental (no prior knowledge of the area is assumed).
challenges, the pressures to be socially responsible, the ● MBA students should find that its practical discus-
increasing globalization of markets and the difficult-to- sions of operations management activities enhance
define areas of knowledge management. their own experience.
● Postgraduate students on other specialist masters
degrees should find that it provides them with a well-
The aim of this book grounded and, at times, critical approach to the subject.
This book provides a clear, authoritative, well structured
and interesting treatment of operations management as Distinctive features
it applies to a variety of businesses and organizations.
The text provides both a logical path through the activ- Clear structure
ities of operations management and an understanding The structure of the book uses a model of operations
of their strategic context. management which distinguishes between design, plan-
More specifically, this text is: ning and control, and improvement.
Preface xix

Illustrations-based Case studies


Operations management is a practical subject and cannot Every chapter includes a case study suitable for class
be taught satisfactorily in a purely theoretical manner. discussion. The cases are usually short enough to serve
Because of this we have used examples and ‘boxed’ short as illustrations, but have sufficient content also to serve
cases which explain some issues faced by real operations. as the basis of case sessions.

Worked examples Problems and applications


Operations management is a subject that blends qualit- Every chapter includes a set of problem type exercises.
ative and quantitative perspectives; ‘worked examples’ These can be used to check out your understanding
are used to demonstrate how both types of technique of the concepts illustrated in the worked examples.
can be used. There are also activities that support the learning
objectives of the chapter that can be done individually
Critical commentaries or in groups.
Not everyone agrees about what is the best approach
to the various topics and issues with operations man- Selected further reading
agement. This is why we have included ‘critical com- Every chapter ends with a short list of further reading
mentaries’ that pose alternative views to the one being which takes the topics covered in the chapter further, or
expressed in the main flow of the text. treats some important related issues. The nature of each
further reading is also explained.
Summary answers to key questions
Each chapter is summarized in the form of a list of bullet Useful websites
points. These extract the essential points which answer A short list of web addresses is included in each chapter
the key question posed at the beginning of each chapter. for those who wish to take their studies further.
To the Instructor …
Teaching and learning resources for the 6th edition
New for the sixth edition ● The ‘Problems’ and ‘Study activities’ sections have
been merged. This makes each chapter more
We have a regular opportunity to listen to the views of
compact.
users of the book and are always keen to receive feedback.
● The book has been visually redesigned to aid
Our research for the 6th edition resulted in maintaining
learning.
the successful structure of previous editions and incorp-
orating the following key changes:
Instructor’s resources
● An even greater emphasis has been placed on the idea
of ‘process management’, making the subject more A completely new instructor’s manual is available to
relevant to every functional areas of the organization. lecturers adopting this textbook, together with
● A whole new chapter on Corporate Social Respons- PowerPoint presentations for each chapter and a
ibility (CSR) has been added, and reflects a greater Testbank of assessment questions. Visit www.
emphasis on this issue throughout the book. pearsoned.co.uk/slack to access these.
● The ‘Operations in Practice’ sections that are used to In addition a new Operations in Practice DVD is
introduce the topic at the beginning of each chapter now available. Please contact your local Pearson
have been refreshed. Education Sales Consultant (www.pearsoned.co.uk/
● The Worked examples have been extended to provide replocator) for further details and to request a copy.
a better balance between qualitative and quantitative- Finally, and most importantly, a new set of online
based techniques. resources to enable students to check their understand-
● Many of the cases at the end of the chapter and short ing, practice key techniques and improve their problem-
cases are new (but the old ones are still available on solving skills now accompanies the book. Please see
the web site), and provide an up-to-date selection of below for details of MyOMLab.
operations issues.

The key to greater understanding and better grades in Operations Management!


MyOMLab for instructors
MyOMLab is designed to save you time in preparing and delivering assignments and assessments for your
course, and to enable your students to study independently and at their own pace. Using MyOMLab, you
can take advantage of:
● A wide range of engaging resources, including video, powerpoint slides and animated models with audio
commentary.
● Hundreds of self-assessment questions, including algorithmically-generated quantitative values which
make for a different problem every time.
● A Homework feature, allowing you to assign work for your students to prepare for your next class or
seminar.
● A Gradebook which tracks students' performance on sample tests as well as assessments of your own
design.
If you'd like to learn more or find out how MyOMLab could help you, please contact your local Pearson
sales consultant at www.pearsoned.co.uk/replocator or visit www.myomlab.com.
To the Student . . .
Making the most of this book
All academic textbooks in business management are, to ations management decisions and activities in newspapers
some extent, simplifications of the messy reality which and magazines. There are also examples which you can
is actual organizational life. Any book has to separate observe every day. Whenever you use a shop, eat a meal
topics, in order to study them, which in reality are in a restaurant, borrow a book from the library or ride
closely related. For example, technology choice impacts on public transport, consider the operations management
on job design which in turn impacts on quality control; issues of all the operations for which you are a customer.
yet we have treated these topics individually. The first The case exercises and study activities are there to
hint therefore in using this book effectively is to look out provide an opportunity for you to think further about
for all the links between the individual topics. Similarly the ideas discussed in the chapters. Study activities can
with the sequence of topics, although the chapters be used to test out your understanding of the specific
follow a logical structure, they need not be studied in points and issues discussed in the chapter and discuss
this order. Every chapter is, more or less, self-contained. them as a group, if you choose. If you cannot answer
Therefore study the chapters in whatever sequence is these you should revisit the relevant parts of the chapter.
appropriate to your course or your individual interests. The case exercises at the end of each chapter will require
But because each part has an introductory chapter, some more thought. Use the questions at the end of each
those students who wish to start with a brief ‘overview’ case exercise to guide you through the logic of analysing
of the subject may wish first to study Chapters 1, 4, 10 the issue treated in the case. When you have done this
and 18 and the chapter summaries of selected chapters. individually try to discuss your analysis with other course
The same applies to revision – study the introductory members. Most important of all, every time you analyse
chapters and summary answers to key questions. one of the case exercises (or any other case or example
The book makes full use of the many practical exam- in operations management) start off your analysis with
ples and illustrations which can be found in all opera- the two fundamental questions:
tions. Many of these were provided by our contacts in
companies, but many also come from journals, mag- ● How is this organization trying to compete (or satisfy
azines and newspapers. So if you want to understand its strategic objectives if a not-for-profit organization)?,
the importance of operations management in everyday ● What can the operation do to help the organization
business life look for examples and illustrations of oper- compete more effectively?

The key to greater understanding and better grades in Operations Management!


MyOMLab for students
MyOMLab has been developed to help students make the most of their studies in operations management.
Visit the MyOMLab at www.myomlab.com to find valuable teaching and learning material including:
● Self-assessment questions and a personalized Study Plan to diagnose areas of strength and weakness,
direct students’ learning, and improve results.
● Unlimited practice on quantitative techniques and solving problems.
● Audio downloads, animated models and electronic flashcards to aid exam revision.
● Video clips and short cases to illustrate operations management in action.
Ten steps to getting a better grade in
operations management
I could say that the best rule for getting a better grade is Use the videos on MyOMLab to look further at
to be good. I mean really, really good! But, there are operations in practice.
plenty of us who, while fairly good, don’t get as good a
grade as we really deserve. So, if you are studying oper- Step 7 Always answer the question. Think ‘What is
ations management, and you want a really good grade, really being asked here? What topic or topics does this
try following these simple steps: question cover?’ Find the relevant chapter or chapters,
and search the Key questions at the beginning of each
Step 1 Practice, practice, practice. Use the Key questions chapter and the Summary at the end of each chapter to
and the Problems and applications to check your under- get you started.
standing. Use the Study plan feature in MyOMLab and
practice to master the topics which you find difficult. Step 8 Take account of the three tiers of accumulating
marks for your answers.
Step 2 Remember a few key models, and apply them
(a) First, demonstrate your knowledge and under-
wherever you can. Use the diagrams and models to
standing. Make full use of the text and MyOMLab
describe some of the examples that are contained within
to find out where you need to improve.
the chapter. You can also use the revision pod casts on
(b) Second, show that you know how to illustrate and
MyOMLab.
apply the topic. The Short cases, Case studies and
‘Operations in practice’ sections, combined with
Step 3 Remember to use both quantitative and qualitative
those on MyOMLab, give you hundreds of different
analysis. You’ll get more credit for appropriately mix-
examples.
ing your methods: use a quantitative model to answer a
(c) Third, show that you can discuss and analyse the
quantitative question and vice versa, but qualify this
issues critically. Use the Critical commentaries
with a few well chosen sentences. Both the chapters of
within the text to understand some of the alterna-
the book, and the exercises on MyOMLab, incorporate
tive viewpoints.
qualitative and quantitative material.
Generally, if you can do (a) you will pass; if you can do
Step 4 There’s always a strategic objective behind any (a) and (b) you will pass well, and if you can do all
operational issue. Ask yourself, ‘Would a similar oper- three, you will pass with flying colours!
ation with a different strategy do things differently?’
Look at the Short cases, Case studies, and Operations in Step 9 Remember not only what the issue is about, but
practice pieces in the book. also understand why! Read the text and apply your
knowledge on MyOMLab until you really understand
Step 5 Research widely around the topic. Use websites why the concepts and techniques of operations man-
that you trust – we’ve listed some good websites at the agement are important, and what they contribute to an
end of each chapter and on MyOMLab. You’ll get more organisation’s success. Your new-found knowledge will
credit for using references that come from genuine stick in your memory, allow you to develop ideas, and
academic sources. enable you to get better grades.

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).
Getty Images: David Sacks (b). 95 © The Royal Bank of
Scotland Group plc. 107 Alamy Images: Michael Jones.
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
Corbis: Yiorgos Karahalis. 211 YO! Sushi: Jonathan Roberts.
213 Rex Features. 216 Rex Features. 220 Photographers
Tables Direct: Andy Maluche. 224 SVT Bengt O Nordin. 230 Press
Association Images: ECKEHARD SCHULZ/AP. 234 Alamy
Table 8.1 after E-commerce and its impact on operations man-
Images: Ashley Cooper. 237 Alamy Images: David Hancock.
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
269 © BMW Group. 273 Getty Images: AFP. 281 Alamy
Adapted from Barnes, Frank C. (1983) ‘Principles of Motion
Images: Ian Miles/Flashpoint Pictures. 292 Robert Wiseman
Economy: Revisited, Reviewed, and Restored’, Proceedings
Dairies. 294 Courtesy of Arup. 298 Wincanton. 304 Alamy
of the Southern Management Association Annual Meeting
Images: Medical-on-Line. 309 British Airways. 310 Corbis:
(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
Getty Images: Getty Images News. 384 Corbis: Joes Luis Pelaez.
385 TDG Logistics. 387 Virgin Atlantic. 398 Getty Images: AFP.
Photographs 402 Press Association Images: JAVA/ABACA. 407 © Rolls-
Royce plc. 410 Courtesy of SAP (UK) Limited. 414 Alamy
The publisher would like to thank the following for their kind
Images: Bon Appetit. 417 Alamy Images: A T Willett. 418
permission to reproduce their photographs:
Corbis: Mark Cooper. 430 Corbis: Denis Balihoudr. 440 Rex
3 Alamy Images: Neil Cannon. 7 Alamy Images: Chris Rout Features: Burger/Phanie. 458 Corbis: Jane-Philippe Arles/
(c); Golden Pixels/LLC (b). Corbis: Claudio Peri/epa (br). Reuters. 465 Alamy Images: Oleksandr Ivanchenko. 475 Image
Getty Images: Siri Stafford (tl). Rex Features: Action Press (t). courtesy of Silicon Graphics, Inc. © 2003 Silicon Graphics,
8 ACME. 9 Rex Features: Brian Rasic. 14 Alamy Images: Inc. Used. 488 Corbis: Eric K K Yu. 496 Four Seasons Hotels:
Alex Segre. 27 Alamy Images: Adrian Sherratt. 33 Alamy Robert Miller. 499 Corbis: Eleanor Bentall. 500 Alamy
Images: Craig Ingram. 34 Rex Features: Jurgen Hasenkopf. Images: Les Gibbons. 505 Alamy Images: Daniel Jones. 541
41 Alamy Images: David Hoffman Photo Library (tl); Stuart Getty Images. 548 Rex Features: Dan Tuffs. 556 Rex Features:
Pearce (b). Courtesy of Arup: (cr). Honda: (tr). Rex Features: Charles Knight. 572 Science Photo Library Ltd: Simon Fraser.
Per Lindgren. 42 Alamy Images: David Hoffman Photo Library 577 Alamy Images: Imagina Photography. 592 Alamy Images:
(cl). Rex Features: Per Lindgren (bl). 43 Corbis: Bernardo Dinodia Images. 602 Rex Features: Action Press. 622 Getty
Bucci. 44 Alamy Images: David Hoffman Photo Library (tl). Images: Paul Vismara. 633 Rex Features: Design Pics Inc.
Getty Images: AFP (b). Rex Features: Per Lindgren (cl). 46 Alamy 638 Photographers Direct: Awe Inspiring Images. 642 Alamy
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Lindgren (bl). 47 BBC Photo Library: Jeff Overs. 49 Alamy
All other images © Nigel Slack, Stuart Chambers and Robert
Images: Bildagentur-online (b); David Hoffman Photo Library
Johnston
(tl). Rex Features: Per Lindgren (cl). 57 Alamy Images: Tim
Graham. 61 Corbis: Thomas White (b); Ulrich Perrey/epa (t). Every effort has been made to trace the copyright holders and
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.

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