CONTENTS IN BRlEF
Partl
PRODUCTlON AND OPERATlONS
MANAGEMENT: INTRODUCTlON AND
OVERVIEW
Chapter 1
Production and Operations Management (POM): An
Introduction
Chapter 2
Operations Strategy: Using Quality, Cost, and Service as
Competitive Weapons
Chapter 3
Forecasting in POM: The Starting Point for All
Planning
Partll
STRATEGlC DEClSlONS: PLANNlNG PRODUCTS
PROCESSES, TECHNOLOGBES, AND
FAClLmES l13
Chapter 4
Designing and Developing Products and Production
Processes: Manufacturing and Service Operations
Chapter5
Production Technology: Selection and Management
Chapter 6
Allocating Resources to Strategic Altematives
Chapter 7
Long-Range Capacity Planning and Facility Location
Chapter 8
Facility Layout: Manufacturing and Services
Part lll
OPERATlNG DEClSlONS: PLANNlNG
PRODUCTION TO MEET DEMAND
Chapter 9
Production-Planning Systems, Aggregate Planning, and
Master Production Scheduling
Chapter lO
Independent Demand Inventory Systems
Chapter 11
Resource Requirements Planning Systems: Material
Requirements Planning (MRP) and Capacity Requirements
Planning (CRP)
Chapter 12
Shop-Hoor Planning and Control in Manufacturing
Chapter 13
Planning and Scheduling Service Operations
Chapter 14
Just-in-Time (JlT) Manufacturing
Chapter 15
Materials Management and Purchasing
PartlV
CONTROL DEClSlONS: PLANNlNG AND
CONTROLLlNG OPERATlONS FOR
PRODUCTlVlTY, QUALlTY, AND
RELlABlLlTY
Chapter 16
Productivity, Teamwork, and Empowennent: Behavior, Work
Methods, and Work Measurement
Cbapter 17
Total Quality Management (TQM)
Chapter 18
Quality Control
Chapter 19
Planning and Controlling Projects
Chapter 20
Maintenance Management and Reliability
Appendlxes
A Nonnal Probability Distribution
B Student's t Probability Distribution
C The POM Computer Library
D Linear Progranuning Solution Methods
E Answers to Odd-Numbered Problems
F Glossary
index
CONTENTS
Partl
PRODUCTION AND OPERATIONS MANAGEMENT:
INTRODUCTION AND OVERVIEW
Chapterl
Production and Operations Management (POM) :An Introduction
Historical Milestones in POM
The Industrial Revolution
Post-Civil War Period
Scientific Management
Human Relations and Behavioralism
Operations Research
The Service Revolution
Factors Affecting POM Toaay
Different Ways of Studying POM
Production as a System
Production as an Organization Function
Decision Making in POM .
WRAP-UP:WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DISCUSSION QUESTIONS
SELECTED BIBLIOGRAPHY
INDUSTRY SNAPSHOT:
1.1 Scientific Mmagement at Ford' s Rouge Plant
Chapter2
Operations Strategy: Using Quality.Cost.and Service as Competitive
Weapons
Today's Global Business Condidons
Reality of Global Competition
U. S. Quality , Flexibility, and Cost Challenges
Advanced Production Technology
Continued Growth of the Service Sector
Scarcity of Production Resources
Social-Responsibility Issues
Operations Strategy
Competitive Priorities of Production
Elements of Operations Strategy
Operations Strategy in Services
Forming Operations Strategies
Evolution of Positioning Strategies
Linking Operations and Marketing Strategies
Variety of Strategies Can Be Successful
Competitiveness of U. S. Manufacturers
WRAP-UP:WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DISCUSSION QUESTIONS
CASES
SELECTED BIBLIOGRAPHY
INDUSTRY SNAPSHOTS:
2.1 Optimistic Signals About the Health ofU.S. Manufacturing
2.2 Strategic AUiances
2.3 World Cars Getting Worldlier
2.4 North American Auto Industry Transplants
2.5 Clewing Vp Pays Off
2.6 Recycling and Conservation in Industry
2.7 Ethics Can Boost the Bottom tine
Chapter 3
Forecasting in POM: The Starting Point for All Planning
Qualitative Forecasting Methods
Quantitative Forecasting Models
Forecast Accuracy
Long-Range Forecasts
Short-Range Forecasts
How to Have a Successful Forecasting System
How to Select a Forecasting Method
How to Monitor and Control a Forecasting Model
Computer Software for Forecasting
Forecasting in Small Businesses and Start-Up Ventures
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DISCUSSION QUESTONS
PROBLEMS
CASES
SELECTED BffiLIOGRAPHY
INDUSTRY SNAPSHOTS:
3.1 Dealins with Risk in Forecasting at Royal Dutch/shell Group
3.2 Using a Forecasling Expert System at Xerox
3.3 Forecasting Flare Sales at Olin Corpomfion
3.4 Focus Forecastinj! at American Hardware Supply
Partll
STRATEGIC DECISIONS: PLANNING PRODUCTS, PROCESSES
TECHNOLOGIES, AND FACILITIES
Chapter 4
Designing and Developing Products and Production Processes: Manufacturing and
Service Operations
Designing and Developing Products and Services
Sources ofProduct Inwvation
Devehping New Products
Geiting New Products to Market Faster
Improving the Designs ofExisting Products
Designing for Ease ofProduction
Designingfor Quality
Designing and Developing New Services
Process Planning and Design
Major Pactors Affecting Process Design Decisions
Nature of Product/Servke Demand
Degree cf Vertical Integration
Production Flexibility
Degree ofAutomation
Product/Service Quality
Types of Process Designs
Product-Focused
process-Focused
Group Technology/Cellular Manufacturing
Interrelationships Among Product Design, Process Design, and Inventory Policy
Process Design in Services
Deciding Among Processing Altematives
Batch Size and Product Variety
Capital Requirements for Process Designs
Economic Analysis
Assembly Charts
Process Charts
Plant Tours
A Product-Focused, Dedicated Factory: Safety Products Corporation
A Process'Focused Factory: R. R. Donnelley & Sons
A Service Operation: Wal-Mart Regional Distribution Center
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
RBVIEW AND DISCUSSION QUBSTTONS
PROBLBMS
CASES
SBLECTED BfflLIOGRAPHY
INDUSTRY SNAPSHOTS:
4.1 What Some U.S. Companies Are Doing to Get New Products to Markets Faster
4.2 Product Design Is Key to U.S. Manufacluring Competitiveness
4.3 Compaq Changes to Produce-to-Order
4.4 Developing a Blueprint for Services
Chapter5
Production Technology: Selectioa and Management
Proliferation of Automation
Types of Automation
Machine Attachments
Numerically Controlled (N/C) Machines
Robots
Automated Quality Control Inspection
Automatic Jdentification Systems (AIS)
Automated Process Controls
Automated Production Systems
Automated Flow LInes
Automated Assembly Systems
Flexible Manufacturing Systems (FMS)
Automated Storage and Retrieval Systems (ASRS)
Pactodes of the Future
CAD/CAM
Computer-lntegrated Manufacluring (ClM)
Characteristics ofFactories ofthe Future
Automadon in Services
Automadon Issues
High-Tech, Mid-Tech, or Low-Tech Production?
Building Manufacturing Flexibility
Justifying Automation Projects
Mcmaging Technological Change
Worker Displacement, Training, and Retraining
Deciding Among Automation Altematives
Economic Analysis
Rating Scale Approach
Relative-Aggregate-Scores Approach
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTlONS
PROBLBMS
CASES
SELECTED BlBUOORAPHY
INDUSTRY SNAPSHOTS:
5.1 Gamble on New Technology Pays QffBig
5.2 U.S. Maunfacturwg Tuming to Aulmation
5.3 One ofthe First N/C Machines
5.4 A Breakthrough in Automating the Assembly Line
5.5 FMS Switches to Other Products in Seconds
5.6 Integrating Information and Automation Technology into Service Operations
Chapter 6
Allocating Resources to Strategic Alteraatives
Recognizing LP Problems
Fonnulating LP Problems
Solving LP Problems
Graphical LP Solutions
Overview of Other LP Solution Methods
Real LP Problems
Interpreting Computer Solutions of LP Problems
WRAP-UP: WHAT WORLD-CLASS PRODUCBRS DO
RBVffiW AND DBCUSSlON QUESTlONS
PROBLBMS
ASBS
SBLBCTBD BlBUOORAPHY
INDUSTRY SNAPSHOTS:
6.1 U.S. Econwmic Development Threatened by Resowce Shortage
6.2 Prodwction Reswrces Are in Short Supply
6.3 Linear Programming Cutting Costs at American Airlines
6.4 Scientific American Praises the Simplex Method ofLinear Programnting
6.5 The Startling Discovery at Bell Labs
Chaptar 7
Long-Range Capaclty Planning and Facility Locatfon
Long-Range Capacity Planning
Definifion ofProduction Capacity
Measurements ofCapacity
Forecastmg Capacity Denumd
Ways of Changing Capacity
Economies ofScale
Analyzing Capacity-Planniftg Decisions
Decision Tree Analysis
Facility Location
Factors Affecting Locafion Decisions
Types of Facilities and Their Dominant Locational Factors
Data, Politics,Incentives, and Preemptive Tactics
Analyzing Retailing and Other Service Locations
Anatyzing industrial Facility Locations
Integrating Quantitative cmd Qualitative Factors into Location Decisions
WRAP-UP: WHAT WORLD-CLASS PRODUCBRS DO
REVIEW AND DlSCUSSlON QUESTONS
PROBLEMS
CASES
SBLECTED BBUOGRAPHY
INDUSTKY SNAPSHOTS:
7.7 Automakers Facing Challenge ofthe 'Ws Overcapacity
7.2 GM Fmds a LocaUon for Satum
7.3 Mexico Is Attracting More Foreign Plants
7.4 McDonald's Site-Location Softwore
Chaptar 8
Facility Layout: Manufacturing and Services
Manufacturing Pacility Layouts
Materials Handling
Process Layouts
Product Layouts
Cellular Manufacturing (CM) Layouts
Fixed-Position Layouts
Hybrid Layouts
New Trends in Manufacmnng Layouts
Analyzing Manufacturing Facility Layouts
Planning Process andWarehouse Layouts
Plannmg Product Layouts
Service Facility Layouts
Types ofService Facility Layouts
Analyzing Service Facility Layouts
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DISCUSSlON QUESTlONS
PROBLEMS
CASES
SELECTED BBLlOGRAPHY
INDUSTRY SNAPSHOT:
8.1 The Nature of Mimufactwing Cells
Part lll
OPERATlNG DEClSlONS; PLANNlNG PRODUCTlON TO MEET
DEMAND
Cbapter 9
Production-Planning Systems, Aggregate Planning, and Master Production
Scheduling
Production-Planning Hierarchy
Aggregate Planning
Aggregate Demand
Dimensions ofProduction Capacity
Sources of Medium-Range Production Capacity
Some Tradilional Aggregate Plans
Criteriafor Selecting Aggregate Plans
Aggregate Plansfor Services
Mathematical Models for Aggregate Planning
Preemptive Tactics
Master Production Scheduling
Objectives ofMaster Production Scheduling
Time Fences in Master Production Schedules
Procedures for Developing Master Production Schedules
Demand Management
Weekly Updating ofthe MPS
MPS in Produce-to-Stock and Produce-to-Order Firms
Length ofPlanning Horiwns
Computerized MPS
Types of Production-Planning and Control Systems
Pond-Draining Systems
Push Systems
Pull Systems
Focusing on Bottlenecks
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DBCUSSlON QUESTTONS
PROBLEMS
CASES
SELECTED BlBLIOGRAPHY
INDUSTRY SNAPSHOT:
9.7 Aggregate Planning at Sherman-Brown Chemical Company
Chapter lO
INdependent Demand Inventory Systems
Opposing Views of Inventories
Why We Want to Hold Inventories
Why We Do Not Want to Hold Inventories
Nature of Inventones
Fixed Order Quantity Systems
Determinmg Order Qwmtities
Determining Order Points
Fixed Order Period Systems
Other Inventory Modets
Hybrid Inventory Models
Single-Period Inventory Models
Some Realities of Inventory Planning
ABC Classification ofMaterials
EOQ and Uncertainty
Dynamics oflnventory Planning
Other Factors Affecting Inventory Planning
Computers and Inventory Planning
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTlONS
PROBLEMS
CASES
SELECTED BBUOORAPHY
INDUSTRY SNAPSHOT:
lO. l Managers Use Computers to Make Inventory Decisions
Chapter 11
Resource Requirements Planning Systems: Material Requirements Planning
(MRP) aod Capacity Requirements Planning (CRP)
Material Requirements Planning (MRP)
Objectives ofMRP
Elements ofMRP
Green Thumb Water Sprinkler Company
Lot-Sizing in MRP
Issues in MRP
From MRP l to MRP ll
How MRP Adapts to Change
Evaluation ofMRP
Capacity Requirements Planning (CRP)
Load Schedules
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTlONS
PROBLEMS
CASES
SELBCTED BBUOGRAPHY
INDUSTRY SNAPSHOT:
ll.l Green Thumb Water Sprinkler Company
Chapter 12
Shop Floor Planning and Control in Manufacturing
Scheduling Process-Focused ManirfactBrina
Shop-Floor Plamiing and Control
prder-Sequencing Problems
Assignmenl Problems
Scheduling Product-Focused Manufactaring
Batch Scheduling
Delivery Schedules: Line-of-Balance Method
Computerized Scheduling Systfems
WRAP-UP: WHAT WORLD-CLASS PRODUCTRS DO
REVBW AND DlSCUSSlON QUBSTIONS
PROBLEMS
CASBS
SELECTED BIBLUOGRAPHY
INDUSTRY SNAPSHOT:
12.1 Finite Loading at SMC
Chapter13
Planning and Scheduling Service ODeratfons
Nature ofServices Revisited
Operations Strategies for Services
Types ofService Operations
Scheduling Challenges in Semces
Scheduling Quasi Manufacturing Service Operanons
Process-Focused Operations
Product-Focused Operations
Work-Shtft Scheduling in Service Operatwns
Scheduling Customer-as-Participant servica Opeiatioas
Nature of These Operations
Waiting Lines in Service Operanons
Scheduling Customer-as-Product Service OPerations
Nature of These Operations
Using Computer Simutation m Servtce OPeranons
WRAP-UP: WHAT WORLD-CKASS PRODUCERS DO
RBVIEW AND DISCUSSlON QUBSTlONS
PROBLBMS
CASBS
SELECTBD BlBLlOGRAPHY
INDUSTRY SNAPSHOT!
13.1 Reality of Competifion Orippins the U-S. Service sector
Chaptar14
Just-in-Time (JTT) Manufacturing
The Just-in-Time (JlT) Manufacturing Philosophy
Prerequisites for JlT Manufacturma
Elements of JIT Manufacturing
Eliminating Waste
Enforced Problem Solving and Continuous Inwrovement
People Make JIT Work
Total Quality Mcmagement (TQM)
Parallel Processing
Kanban Prodwtion Control
JIT Purchasmg
Workins Toward Reducing Inventories
Working Toward Repetifive Manufacturing
Benefits of JIT Manufacturing
Success and JIT Manufacturing
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DISCUSSION QUESTIONS
PROBLBMS
CASES
SELECTBD BIBLIOGRAPHY
INDUSTRY SNAPSHOTS:
14.1 A Revolutionary Way to Streamline the Factory
14.2 Using Queuing Theory to Achieve Time-Based Competition
14.3 JIT Purchasing: Success and Obstacles
14.4 JTT Manufacturing Successes
Chapter 15
Materials Management and Purchasing
Purchasing
Importance ofPurchasing Today
Mission ofPurchasing
What Purchasing Managers Do
Purchasing Departments in Organizattons
Purchasing Processes
Buyers and Their Duties
Make-or-Buy Anatysis
Ethics in Buying
Purchasing: The Intemational Frontier
Just-in-Time (JIT) Purcfaasing
Logistics
Production Control: Movemenf ofMatervals within Factoies
Shipments fo mdfrom Factones
Innovafions in Logistics
Warehousing
Warehousing Operations
Melhods ofInventory Accountmg
Contemporary Developments m Warehousing
Expediting
Benchmarking the Performance of Materials Manaeers
WRAP-UP: WHAT WORLD-CLASS PRODUGBSS DO
REVIEW AND DISCUSSION QUESTIONS
FIELD PROIECTS IN MATERIALS MANAGEMENT
PROBLEMS
CASES
SELECTBD BIBUOGRAPHY
INDUSTRY SNAPSHOTS:
15.1 Allegations oflmproper Behavior by Buyers
15.2 Manufacturers and Suppliers Fom New Partnerships
15.3 Innovation in Shipping Methods
l5.4 Truckmg Firms Use Computers
PartlV
CONTROL DEClSlONS: PLANNlNG AND CONTROLLlNG
OPERATlONS FOR PRODUCTlVlTY, QUALlTY, AND
RELlABlLlTY
Chapter16
Productivity, Teamwork, and Empowerment: Behavior, Work Methods, and
Work Measurement
Productivity and Human Behavior
Multffactor Approach to Measuring Productivity
Labor Prvductivity
Designing Workers' Jobs
Empowering Workers
Work Methods Analysis
Principles ofMotion Economy
Hcw to Do Methods Anatysis
Work Measurement
Labor Standards
Time Study
Work Sampling
Predetermined Time Standards
Leaming Curves
Arithmetic Analysis
Logarithmic Analysis
Leaming-Curve Tables
Selecting a Leaming Rate
Uses and Limitations ofLeammg Curves
Employees* Health and Safety
WRAP-UP: WHAT WORLD-CLASS PRODUCBRS DO
REVlEW AND DlSCUSSlON QUESTIONS
PROBLEMS
CASBS
SBLECTED BBUOGRAPHY
INDUSTRY SNAPSHOTS:
16.1 Low Wages No tonger Give Competitive Edse
16.2 Multifactor Approach to Measuring Productivity
16.3 U-S. ProductivtyandStandardOflivingNo. l in World
16.4 Pfvductivity lmprovement w rora MOtor Comjpany
16.5 Training Employeesfor a Competilive Edge
16.6 The Japanese Approach to Job Security and Lifetime Emplayment
Chapter17
Total Quality Management (TQM)
Nature of Quality
Dimensions of Quality
Determinants of Quality
Costs of Quality
Traditional Quality Management
Modem Quality Management
Quality Gurus
Quality Drives the Productivity Machine
Other Aspects ofthe Quality Picture
Emerging Quality Standards
Malcolm Baldrige National Quality'Award
The Deming Prize
ISO 9000 Stanlards
Total Quality Management (TQM) Programs
Top Management Commitment and Involvement
Customer Involvement
Designing Products for Quality
DesignIng and Controlling Production Processes
Developing Supplier Partnerships
Customer Service, Distribution, and Installation
Bulding Teams ofEmpowered Employees
Benchmarking and Continwus Improvement
TQM in Service
Evaluation of TQM
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTlONS
PROBLEMS
CASES
SELECTED BBUOGRAPHY
INDUSTRY SNAPSHOTS:
17.1 U-S. Quality Is Better, Bul Needs to Be Best
77.2 Demmg's Way
77.3 The Malcolm Balbrige National Quality Award
17.4 Empowered Work Teams at Square D Corporation
77.5 World-Class Companies in Benchmarking
77.6 Closing the Service Quality Gaps
77.7 Examples ofTQM in Services
77.8 Avoiding the Pitfalls in Installing TQM Progrwns
Cbapter 18
Quality Control
Statistical Concepts in Quality Control
Samplmg
Central Limit Theorem and Quality Control
Control Charts
Control Charts for Attributes
Control Charts for Variables
Acceptance Plans
Single, Double, and Sequential Samples
Single-Sample Acceptance Plans for Attributes
Estimating Acceptance Criteria
Single-Sample Acceptance Plansfor Variables
Computers in Quality Control
Quality Control in Services
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTONS
PROBLEMS
CASES
SELECTED BlBLIOGRAPHY
INDUSTRY SNAPSHOT:
18.1 Statistical Process Control (SPC)
Chapter 19
Planning and Controlling Projects
Project Management
Prqject-Planning and Control Techniques
Scheduling and Control Charts
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
Project Cost Control Systems
CPM/PERT in Practice
Computer Software for Project Management
An Evaluation of CPM/PERT
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVIEW AND DlSCUSSlON QUBSTlONS
PROBLEMS
CASES
SELECTED BIBUOORAPHY
Chapter 20
Maintenance Management and Reliability
Repair Programs
Repair Crews, Standby Machines, and Repair Shops
Breakdowns Trigger Repairs and Corrective Actions
Early Parts-Replacement Policies
Letting Workers Repair Their Own Machines
Preventive Maintenance (PM) Programs
PM and Operations Strategies
Automation and the Prominence ofPM
Scheduling PM Activities
PM Data Base Requirements
Modem Approaches to PM
Machine Reliability
Secondary Maintenance Department Responsibilities
Trends in Maintenance
WRAP-UP: WHAT WORLD-CLASS PRODUCERS DO
REVlEW AND DlSCUSSlON QUESTTONS
PROBLEMS
CASBS
SBLECTED BBUOGRAPHY
INDUSTRY SNAPSHOTS:
20.7 PM at the Source, or Total Prevenlive Maintenance (TPM)
20.2 GM Vses Computer Monitoring ofMachines
20.3 Decision Support Systemfor Aircraft Maintenance Plmning at American Airlines
Appendixes
Appendix A
Nonnal Probability Distribution
Appendix B
Student's t Probability Distribution
Appendix C
The POM Computer Library
Appendix D
Linear Programming Solution Methods
Appendix E
Answers to Odd-Numbered Problems
Appendix F
Glossary
Author Index
Subject Index
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