For the introductory course in Operations Management at both the undergraduate and graduate levels. This is the first OM textbook written with the perspective that most students taking this course are not majoring in Operations. Therefore, while still covering the standard core operations concepts and tools, the authors emphasize two major themes. First, that adding value and customer satisfaction should be the ultimate objective of any firm, and second, integrated operations-that it usually takes coordinated operations, effectively integrated across all functional areas to deliver the combination of service and manufactured value required to satisfy most customers.
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PREFACE WHY DID WE WRITE THIS BOOK?
We started our study of operations management (OM) in the early 1980s and began teaching the subject during our doctoral studies later that decade. And OM has held our fascination—today we're still students of the subject.
Since taking our first course in operations, a lot has changed in business and in OM. Many firms have adopted the just-in-time management system. Total quality management has changed the way we think about employees, customers, suppliers, business processes, and quality. Business process re-engineering has helped firms achieve revolutionary process improvements. The practice of theory of constraints has allowed firms to better manage facilities containing capacity-constrained resources.
There has also been a dramatic shift in OM from a traditional, manufacturing focus to a focus on the service sector. Many businesses are now managed from a cross-functional perspective, which emphasizes how operations issues affect—and are affected by—all the areas of a firm.
Along with these developments has been the computer revolution. Think back on what the business world was like without PCs, Internet service providers, the World Wide Web, dot-coms, information systems, and the software that runs on information systems. E-commerce and supply chain management—the most recent products of this new computer infrastructure—are central to state-of-the-art OM. Frankly, if the OM courses that we took were taught today, they'd be as useful as an 8-track tape player.
Over the years, we've noticed that OM books have generally kept up with the changes by adding a chapter about the latest developments in OM to the traditional content. But not integrating these changes into the entire text has created some problems for instructors. For example, a chapter on total quality management would suggest the importance of customer-focused operations as well as cross-training workers and including them in improvement efforts. Later chapters on location and scheduling issues would then ignore these concepts and present cost-centered local optimization models, while job design content would focus heavily on job specialization through traditional work standards approaches. Similarly, a chapter on just-in-time systems would present suggestions for customer and supplier relationship management but would not explain how those concepts fit (or didn't fit) in other operational environments.
Further, service operations were usually treated as separate from manufacturing operations, even though most customers expect (and most businesses provide) a combination of service and manufactured value. The service content seemed to always follow the manufacturing content as an obligatory end-of-chapter appendix.
As a result of the add-on approach, we became increasingly frustrated in our efforts to teach a current, state-of-the-art, OM course to non-operations majors. We needed a book that integrated the changes of the last twenty years into each topic area. Also, we needed a book that helped business majors integrate their knowledge of other functional areas with what they were learning in OM. We didn't think any of the available texts met these needs, so we developed such a book—and this is the result. KEY STRENGTHS The book focuses on satisfying customers. We present OM as the part of a company that provides the value customers require, but OM must work effectively with other functional areas to achieve that value. So our focus on satisfying customers requires that we present every topic from a cross-functional business perspective, not from functional perspective focused entirely on operations management. The book has internal consistency We do not treat recent developments as chapter; or supplement add-ons. Instead, coverage in all operational areas influenced by recent developments reflects current practice. So, perspectives found in our coverage of supply chain management, e-commerce, and total quality management arcs reflected in our coverage of other operations topics. The book integrates service and manufacturing. Because customers usually buy a package of service and manufactured value, the OM function in most companies hay to create a product-service bundle. We avoid the artificial separation between service operations management and manufacturing operations management. The book is not designed around operational tools and models. We present decision-making tools and models that operations managers use as factors in business decisions, not as the force that drives the decisions. Before we present any tool, we tell students how, and in what situations, it applies. The book's organization reflects the business context of operations. For example, we don't have chapters based on a particular type of tool, such as forecasting or material requirements planning (MRP). Instead, we discuss these tools in their business contexts-how they help businesspeople make decisions. Pedagogical Features in the Book
In writing this fully integrated OM text, focused on approaches that provide the value required to satisfy customers, we provide pedagogical features that reinforce they book's uniqueness. Among these features are:
Back at the Rec Center: a conversation between four fictional managers, at the beginning of each chapter, that provides practical insight into chapter issues. The managers are a chief of operations for a small, growing airline; a hospital administrator; a marketing manager for a large electronics firm; and a production supervisor for a privately owned furniture manufacturer. In Chapter 6 (Quality Improvement Tools) for example, the manager of the large electronics firm gets help from the other managers in improving the casings and buttons on the firm's pagers. This feature allows us to illustrate OM concepts in depth because we don't need to repeat the descriptions of operations at the managers' firms. Integrating OM with Other Functions: a section and figure in each chapter that highlights the relevance of the chapter's material to professionals in other functional areas. For example, this section in Chapter 2, Supply Chain Strategy explains that marketing and engineering are most affected by supply chain configuration strategies. Illustrations of chapter content from Miami University's Recreation Center: a section in each chapter that illustrates some aspect of the chapter's content in the operations of a typical college recreational facility. The purpose of this feature is to illustrate how operations are applied in a facility that most students are familiar with. E-commerce perspectives: found throughout the text where relevant. For example, Chapter 12, which focuses on inventory management and master scheduling issues, contains significant content on enterprise resources planning systems and electronic data interchange. Similarly Chapter 8 discusses geographic information systems in the context of location decisions. Real-world examples woven into the text: examples from both service-intensive and manufacturing-intensive businesses. For example, our chapter on material planning and scheduling in complex environments contains information about the yield management practices of major airlines as well as the practices of Hill-Rom corporation (America's leading manufacturer of hospital furniture). "Integrated Operations Management: Satisfying Customers at. . ." boxed inserts: succinct illustrations of current companies' integrated operations practices, found in each chapter. Integrating Operations Management: a section in each chapter that describes the main links between the chapter's topics and other topics covered elsewhere in the text. End of chapter materials including Key Words, Solved Problems, Discussion Questions, Problems, and Cases: designed to stress the integrated nature of the chapter's coverage as well as reinforce the OM topics covered. Add Value to Your Course with these Student Ancillaries
A Free Student CD-ROM
The CD-ROM to accompany this book contains Excel OM, ExtendLT, extensive lecture notes, quizzes, and interactive exercises based on Miami University's Recreation Center.
Excel OM is Prentice Hall's exclusive user-friendly Excel Add-in. Excel OM automatically creates worksheets to model and solve problems. Users select a topic from the pull-down menu, fill in the data, and then Excel will display and graph (where appropriate) the results. This software is great for student homework, "what if" analysis, or classroom demonstration. Extend LT is a graphic simulation program that allows you to build dynamic models and systems. The version contained in this textbook is a limited version, but it is a very rich package complete with tutorials, an online manual, and "save and print" capabilities. In addition, the version contains 10 manufacturing and service models that correspond to chapter topics. These models, prepared by Robert Klassen of University of Western Ontario, are described in Word documents and can be used for homework, team projects, and classroom demonstrations. The limited version of Extend isFrom the Back Cover:
Excel OM is Prentice Hall's exclusive user-friendly Excel add-in.
Excel OM automatically creates worksheets to model and solve problems. Students select a topic from the pull-down menu, fill in the data, and then Excel will display and graph (where appropriate) the results. This software is great for student homework, "what if" analysis, or classroom demonstrations.
Extend+ is a graphic simulation program that allows you to build dynamic models and systems.
A limited version of Extend+ is included on the CD. This version contains 10 manufacturing and service models that correspond to chapter topics. These models are described in Word documents and can be used for homework, team projects, or classroom demonstrations. The limited version of Extend+ is an excellent package for demonstrating operations processes and teaching simulation.
Extensive Lecture Notes provide reinforcement of the main points of each chapter and allow students to review the chapter material.
The Lecture Notes are available in both a slide-show format, with audio clips, for in-class viewing, and in a printable format to be used as a helpful study guide.
Quizzes allow students to test their understanding of each chapter.
Exercises: Miami Rec Center.
These interactive exercises, developed by Scott Sampson in conjunction with the textbook authors, feature operational issues at Miami University's Recreational Center. Each of the 13 exercises ask students to view a short video clip, read about a key topic, and then answer follow-up discussion questions. Students can e-mail their answers to their instructor after they've finished.
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