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page i

Operations Management
page ii
page iii

Operations Management
FOURTEENTH EDITION

William J. Stevenson
Saunders College of Business
Rochester Institute of Technology
page iv

OPERATIONS MANAGEMENT

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright


© 2021 by McGraw-Hill Education. All rights reserved. Printed in the United States
of America. No part of this publication may be reproduced or distributed in any
form or by any means, or stored in a database or retrieval system, without the
prior written consent of McGraw-Hill Education, including, but not limited to, in any
network or other electronic storage or transmission, or broadcast for distance
learning.

Some ancillaries, including electronic and print components, may not be available
to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20

ISBN 978-1260-57571-2
MHID 1-260-57571-3

Cover Image: Daniel Prudek/Shutterstock


All credits appearing on page or at the end of the book are considered to be an
extension of the copyright page.

The internet addresses listed in the text were accurate at the time of publication.
The inclusion of a website does not indicate an endorsement by the authors or
McGraw-Hill Education, and McGraw-Hill Education does not guarantee the
accuracy of the information presented at these sites.

mheducation.com/highered
page v

The McGraw-Hill Series in Operations and


Decision Sciences

Supply Chain Management

Benton
Purchasing and Supply Chain Management
Third Edition

Bowersox, Closs, Cooper, and Bowersox


Supply Chain Logistics Management
Fifth Edition

Burt, Petcavage, and Pinkerton


Supply Management
Eighth Edition

Johnson
Purchasing and Supply Management
Sixteenth Edition

Simchi-Levi, Kaminsky, and Simchi-Levi


Designing and Managing the Supply Chain: Concepts,
Strategies, Case Studies
Third Edition
Stock and Manrodt
Supply Chain Management

Project Management
Brown and Hyer
Managing Projects: A Team-Based Approach

Larson
Project Management: The Managerial Process
Eighth Edition

Service Operations Management


Bordoloi, Fitzsimmons, and Fitzsimmons
Service Management: Operations, Strategy, Information
Technology
Ninth Edition

Management Science
Hillier and Hillier
Introduction to Management Science: A Modeling and Case
Studies Approach with Spreadsheets
Sixth Edition

Business Research Methods


Schindler
Business Research Methods
Thirteenth Edition

Business Forecasting
Keating and Wilson
Forecasting and Predictive Analytics
Seventh Edition

Business Systems Dynamics


Sterman
Business Dynamics: Systems Thinking and Modeling for
Complex World

Operations Management
Cachon and Terwiesch
Operations Management
Second Edition

Cachon and Terwiesch


Matching Supply with Demand: An Introduction to
Operations Management
Fourth Edition

Jacobs and Chase


Operations and Supply Chain Management: The Core
Fifth Edition

Jacobs and Chase


Operations and Supply Chain Management
Sixteenth Edition

Schroeder and Goldstein


Operations Management: Contemporary Concepts and Cases
Eighth Edition

Stevenson
Operations Management
Fourteenth Edition

Swink, Melnyk, and Hartley


Managing Operations Across the Supply Chain
Fourth Edition

Business Statistics
Bowerman, Drougas, Duckworth, Froelich, Hummel, Moninger, and
Schur
Business Statistics and Analytics in Practice
Ninth Edition

Doane and Seward


Applied Statistics in Business and Economics
Sixth Edition

Doane and Seward


Essential Statistics in Business and Economics
Third Edition

Lind, Marchal, and Wathen


Basic Statistics for Business and Economics
Ninth Edition

Lind, Marchal, and Wathen


Statistical Techniques in Business and Economics
Eighteenth Edition

Jaggia and Kelly


Business Statistics: Communicating with Numbers
Third Edition

Jaggia and Kelly


Essentials of Business Statistics: Communicating with
Numbers
Second Edition

McGuckian
Connect Master: Business Statistics

Business Analytics
Jaggia, Kelly, Lertwachara, and Chen
Business Analytics: Communicating with Numbers

page vi
page vii

Preface
The material in this book is intended as an introduction to the field
of operations management. The topics covered include both
strategic issues and practical applications. Among the topics are
forecasting, product and service design, capacity planning,
management of quality and quality control, inventory management,
scheduling, supply chain management, and project management.
My purpose in revising this book continues to be to provide a
clear presentation of the concepts, tools, and applications of the field
of operations management. Operations management is evolving and
growing, and I have found updating and integrating new material to
be both rewarding and challenging, particularly due to the plethora
of new developments in the field, while facing the practical limits on
the length of the book.
This text offers a comprehensive and flexible amount of content
that can be selected as appropriate for different courses and
formats, including undergraduate, graduate, and executive
education.
This allows instructors to select the chapters, or portions of
chapters, that are most relevant for their purposes. That flexibility
also extends to the choice of relative weighting of the qualitative or
quantitative aspects of the material, and the order in which chapters
are covered, because chapters do not depend on sequence. For
example, some instructors cover project management early, others
cover quality or lean early, and so on.
As in previous editions, there are major pedagogical features
designed to help students learn and understand the material. This
section describes the key features of the book, the chapter
elements, the supplements that are available for teaching the
course, highlights of the fourteenth edition, and suggested
applications for classroom instruction. By providing this support, it is
our hope that instructors and students will have the tools to make
this learning experience a rewarding one.

What’s New in This Edition


In many places, content has been rewritten or added to improve
clarity, shorten wording, or update information. New material has
been added on supply chains, and other topics. Some problems are
new, and others have been revised. Many new readings and new
photos have been added.
Some of the class preparation exercises have been revised. The
purpose of these exercises is to introduce students to the subject
matter before class in order to enhance classroom learning. They
have proved to be very popular with students, both as an
introduction to new material and for study purposes. These exercises
are available in the Instructor’s Resource Manual. Special thanks to
Linda Brooks for her help in developing the exercises.

Acknowledgments
I want to thank the many contributors to this edition. Reviewers and
adopters of the text have provided a “continuously improving”
wealth of ideas and suggestions. It is encouraging to me as an
author. I hope all reviewers and readers will know their suggestions
were valuable, were carefully considered, and are sincerely
appreciated. The list includes post-publication reviewers.

Jenyi Chen Cleveland State University


Eric Cosnoski Lehigh University
Mark Gershon Temple University
Narges Kasiri Ithaca College
Nancy Lambe University of South Alabama
Anita Lee-Post University of Kentucky
Millersville University of
Behnam Nakhai
Pennsylvania
Rosa Oppenheim Rutgers Business School
Marilyn Preston Indiana University Southeast
Avanti Sethi University of Texas at Dallas
John T. Simon Governors State University
Lisa Spencer California State University, Fresno
Nabil Tamimi University of Scranton
Oya Tukel Cleveland State University
Theresa Wells University of Wisconsin-Eau Claire
Heath Wilken University of Northern Iowa

Additional thanks to the instructors who have contributed extra


material for this edition, including accuracy checkers: Ronny
Richardson, Kennesaw State University and Gary Black, University of
Southern Indiana; Solutions and SmartBook: Tracie Lee, Idaho State
University; PowerPoint Presentations: Avanti Sethi, University of
Texas-Dallas; Test Bank: Leslie Sukup, Ferris State University.
Special thanks goes out to Lisa Spencer, California State
University-Fresno, for her help with additional readings and
examples.

page viii

Finally, I would like to thank all the people at McGraw-Hill for


their efforts and support. It is always a pleasure to work with such a
professional and competent group of people. Special thanks go to
Noelle Bathurst, Portfolio Manager; Michele Janicek, Lead Product
Developer; Fran Simon and Katie Ward, Product Developers; Jamie
Koch, Assessment Content Project Manager; Sandy Ludovissy, Buyer;
Matt Diamond, Designer; Jacob Sullivan, Content Licensing
Specialist; Harper Christopher, Executive Marketing Manager; and
many others who worked behind the scenes.
I would also like to thank the many reviewers of previous editions
for their contributions: Vikas Agrawal, Fayetteville State University;
Bahram Alidaee, University of Mississippi; Ardavan Asef-Faziri,
California State University at Northridge; Prabir Bagchi, George
Washington State University; Gordon F. Bagot, California State
University at Los Angeles; Ravi Behara, Florida Atlantic University;
Michael Bendixen, Nova Southeastern; Ednilson Bernardes, Georgia
Southern University; Prashanth N. Bharadwaj, Indiana University of
Pennsylvania; Greg Bier, University of Missouri at Columbia; Joseph
Biggs, Cal Poly State University; Kimball Bullington, Middle
Tennessee State University; Alan Cannon, University of Texas at
Arlington; Injazz Chen, Cleveland State University; Alan Chow,
University of Southern Alabama at Mobile; Chrwan-Jyh, Oklahoma
State University; Chen Chung, University of Kentucky; Robert Clark,
Stony Brook University; Loretta Cochran, Arkansas Tech University;
Lewis Coopersmith, Rider University; Richard Crandall, Appalachian
State University; Dinesh Dave, Appalachian State University; Scott
Dellana, East Carolina University; Kathy Dhanda, DePaul University;
Xin Ding, University of Utah; Ellen Dumond, California State
University at Fullerton; Richard Ehrhardt, University of North Carolina
at Greensboro; Kurt Engemann, Iona College; Diane Ervin, DeVry
University; Farzaneh Fazel, Illinois State University; Wanda Fennell,
University of Mississippi at Hattiesburg; Joy Field, Boston College;
Warren Fisher, Stephen F. Austin State University; Lillian Fok,
University of New Orleans; Charles Foley, Columbus State
Community College; Matthew W. Ford, Northern Kentucky University;
Phillip C. Fry, Boise State University; Charles A. Gates Jr., Aurora
University; Tom Gattiker, Boise State University; Damodar Golhar,
Western Michigan University; Robert Graham, Jacksonville State
University; Angappa Gunasekaran, University of Massachusetts at
Dartmouth; Haresh Gurnani, University of Miami; Terry Harrison,
Penn State University; Vishwanath Hegde, California State University
at East Bay; Craig Hill, Georgia State University; Jim Ho, University
of Illinois at Chicago; Seong Hyun Nam, University of North Dakota;
Jonatan Jelen, Mercy College; Prafulla Joglekar, LaSalle University;
Vijay Kannan, Utah State University; Sunder Kekre, Carnegie-Mellon
University; Jim Keyes, University of Wisconsin at Stout; Seung-Lae
Kim, Drexel University; Beate Klingenberg, Marist College; John Kros,
East Carolina University; Vinod Lall, Minnesota State University at
Moorhead; Kenneth Lawrence, New Jersey Institute of Technology;
Jooh Lee, Rowan University; Anita Lee-Post, University of Kentucky;
Karen Lewis, University of Mississippi; Bingguang Li, Albany State
University; Cheng Li, California State University at Los Angeles;
Maureen P. Lojo, California State University at Sacramento; F. Victor
Lu, St. John’s University; Janet Lyons, Utah State University; James
Maddox, Friends University; Gita Mathur, San Jose State University;
Mark McComb, Mississippi College; George Mechling, Western
Carolina University; Scott Metlen, University of Idaho; Douglas
Micklich, Illinois State University; Ajay Mishra, SUNY at Binghamton;
Scott S. Morris, Southern Nazarene University; Philip F. Musa,
University of Alabama at Birmingham; Roy Nersesian, Monmouth
University; Jeffrey Ohlmann, University of Iowa at Iowa City; John
Olson, University of St. Thomas; Ozgur Ozluk, San Francisco State
University; Kenneth Paetsch, Cleveland State University; Taeho Park,
San Jose State University; Allison Pearson, Mississippi State
University; Patrick Penfield, Syracuse University; Steve Peng,
California State University at Hayward; Richard Peschke, Minnesota
State University at Moorhead; Andru Peters, San Jose State
University; Charles Phillips, Mississippi State University; Frank Pianki,
Anderson University; Sharma Pillutla, Towson University; Zinovy
Radovilsky, California State University at Hayward; Stephen A. Raper,
University of Missouri at Rolla; Pedro Reyes, Baylor University;
Buddhadev Roychoudhury, Minnesota State University at Mankato;
Narendra Rustagi, Howard University; Herb Schiller, Stony Brook
University; Dean T. Scott, DeVry University; Scott J. Seipel, Middle
Tennessee State University; Raj Selladurai, Indiana University;
Kaushic Sengupta, Hofstra University; Kenneth Shaw, Oregon State
University; Dooyoung Shin, Minnesota State University at Mankato;
Michael Shurden, Lander University; Raymond E. Simko, Myers
University; John Simon, Governors State University; Jake Simons,
Georgia Southern University; Charles Smith, Virginia Commonwealth
University; Kenneth Solheim, DeVry University; Young Son, Bernard
M. Baruch College; Victor Sower, Sam Houston State University;
Jeremy Stafford, University of North Alabama; Donna Stewart,
University of Wisconsin at Stout; Dothang Truong, Fayetteville State
University; Mike Umble, Baylor University; Javad Varzandeh,
California State University at San Bernardino; Timothy Vaughan,
University of Wisconsin at Eau Claire; Emre Veral, page ix
Baruch College; Mark Vroblefski, University of Arizona;
Gustavo Vulcano, New York University; Walter Wallace, Georgia State
University; James Walters, Ball State University; John Wang,
Montclair State University; Tekle Wanorie, Northwest Missouri State
University; Jerry Wei, University of Notre Dame; Michael
Whittenberg, University of Texas; Geoff Willis, University of Central
Oklahoma; Pamela Zelbst, Sam Houston State University; Jiawei
Zhang, NYU; Zhenying Zhao, University of Maryland; Yong-Pin Zhou,
University of Washington.
William J. Stevenson
page x

Walkthrough

MAJOR STUDY AND LEARNING FEATURES

A number of key features in this text have been


specifically designed to help introductory students
learn, understand, and apply operations concepts and
problem-solving techniques.

Examples with Solutions


Throughout the text, wherever a quantitative or analytic technique is
introduced, an example is included to illustrate the application of that
technique. These are designed to be easy to follow.
page x

Solved Problems
At the end of chapters and chapter supplements, “Solved Problems”
are provided to illustrate problem solving and the core concepts in the
chapter. These have been carefully prepared to help students
understand the steps involved in solving different types of problems.
The Excel logo indicates that a spreadsheet is available on the text’s
website.
Excel Spreadsheet Solutions
Where applicable, the examples and solved problems include screen
shots of a spreadsheet solution.
page x

CHAPTER ELEMENTS

Within each chapter, you will find the following


elements that are designed to facilitate study and
learning. All of these have been carefully developed
over many editions and have proven to be successful.

Learning Objectives
Every chapter and supplement lists the learning objectives to achieve
when studying the chapter material. The learning objectives are also
included next to the specific material in the margins of the text.

Chapter Outlines
Every chapter and supplement includes an outline of the topics
covered.

Opening Vignettes
Each chapter opens with an introduction to the important operations
topics covered in the chapter. This enables students to see the
relevance of operations management in order to actively engage in
learning the material.

page xi

Figures and Photos


The text includes photographs and graphic illustrations to support
student learning and provide interest and motivation. Approximately
100 carefully selected photos highlight the 14th edition. The photos
illustrate applications of operations and supply chain concepts in man
successful companies. More than 400 graphic illustrations, more than
any other text in the field, are included and all are color coded with
pedagogical consistency to assist students in understanding concepts

page xiv

Operations Strategies
An Operations Strategy section is included at the end of most chapter
These sections discuss how the chapters’ concepts can be applied and
how they impact the operations of a company.
Readings
Readings highlight important real-world applications, provide example
of production/operations issues, and offer further elaboration of the
text material. They also provide a basis for classroom discussion and
generate interest in the subject matter. Many of the end-of-chapter
readings include assignment questions.
page xv

END-OF-CHAPTER RESOURCES

For student study and review, the following items are


provided at the end of each chapter or chapter
supplement.

Summaries and Key Points


Chapters contain summaries that provide an overview of the material
covered, and the key points of the chapter are emphasized in a
separate section.
Key Terms
Key terms are highlighted in the text and then repeated in the margin
with brief definitions for emphasis. They are listed at the end of each
chapter (along with page references) to aid in reviewing.

Taking Stock and Critical Thinking Exercises


These activities encourage analytical thinking and help broaden
conceptual understanding. A question related to ethics is included in
the Critical Thinking Exercises.

Discussion and Review Questions


Each chapter and each supplement have a list of discussion and revie
questions. These precede the problem sets and are intended to serve
as a student self-review or as class discussion starters.

Problem Sets
Each chapter includes a set of problems for assignment. The problem
have been refined over many editions and are intended to be
challenging but doable for students. Short answers to most of the
problems are included in Appendix A so students can check their
understanding and see immediately how they are progressing.

page xv

Operations Tours
These provide a simple “walkthrough” of an operation for students,
describing the company, its product or service, and its process of
managing operations. Companies featured include Wegmans Food
Markets, Morton Salt, Stickley Furniture, and Boeing.
Cases
The text includes short cases. The cases were selected to provide a
broader, more integrated thinking opportunity for students without
taking a full case approach.
page xv

INSTRUCTOR RESOURCES
Available within Connect, instructors have access to teaching suppor
such as electronic files of the ancillary materials: Solutions Manua
Instructor’s Manual, Test Bank, PowerPoint Lecture Slides, Digit
Image Library, and accompanying Excel files.

Instructor’s Manual. This manual, revised for the new edition b


Tracie Lee, Idaho State University, includes teaching notes, chapt
overview, an outline for each chapter, and solutions to the problems
the text.

Test Bank. Updated for the new edition by Leslie Sukup, Ferris Sta
University, and reviewed by Nancy Lambe, University of Sou
Alabama, the Test Bank includes over 2,000 true/false, multiple-choic
and discussion questions/problems at varying levels of difficulty. Th
Test Bank is available to assign within Connect, as Word files availab
in the Instructor Resource Library, and through our online te
generator. Instructors can organize, edit, and customize questions an
answers to rapidly generate tests for paper or online administration.

PowerPoint Lecture Slides. Revised by Avanti Sethi, University


Texas-Dallas, the PowerPoint slides draw on the highlights of eac
chapter and provide an opportunity for the instructor to emphasize th
key concepts in class discussions.

Digital Image Library. All the figures in the book are included f
insertion in PowerPoint slides or for class discussion.
page xviii

FOR INSTRUCTORS
You’re in the driver’s seat.
Want to build your own course? No problem. Prefer to use our
turnkey, prebuilt course? Easy. Want to make changes throughout
the semester? Sure. And you’ll save time with Connect’s auto-
grading too.

They’ll thank you for it.


Adaptive study resources like SmartBook® 2.0 help your students be
better prepared in less time. You can transform your class time from
dull definitions to dynamic debates. Find out more about the
powerful personalized learning experience available in SmartBook
2.0 at www.mheducation.com/highered/connect/smartbook
Laptop: McGraw-Hill; Woman/dog: George Doyle/Getty Images

Make it simple, make it affordable.


Connect makes it easy with seamless integration using any of
the major Learning Management Systems—Blackboard®,
Canvas, and D2L, among others—to let you organize your
course in one convenient location. Give your students access
to digital materials at a discount with our inclusive access
program. Ask your McGraw-Hill representative for more
information.

Padlock: Jobalou/Getty Images

Solutions for your challenges.


A product isn’t a solution. Real solutions are affordable,
reliable, and come with training and ongoing support when
you need it and how you want it. Our Customer Experience
Group can also help you troubleshoot tech problems—although
Connect’s 99% uptime means you might not need to call them.
See for yourself at status.mheducation.com
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page xix

FOR STUDENTS
Effective, efficient studying.
Connect helps you be more productive with your study time and get
better grades using tools like SmartBook 2.0, which highlights key
concepts and creates a personalized study plan. Connect sets you up
for success, so you walk into class with confidence and walk out with
better grades.

Study anytime, anywhere.


Download the free ReadAnywhere app and access your online eBook
or SmartBook 2.0 assignments when it’s convenient, even if you’re
offline. And since the app automatically syncs with your eBook and
SmartBook 2.0 assignments in Connect, all of your work is available
every time you open it. Find out more at
www.mheducation.com/readanywhere
“I really liked this app—it made it easy to
study when you don’t have your textbook
in front of you.”

- Jordan Cunningham, Eastern Washington


University

No surprises.
The Connect Calendar and Reports tools keep you on track with the
work you need to get done and your assignment scores. Life gets
busy; Connect tools help you keep learning through it all.

Calendar: owattaphotos/Getty Images

Learning for everyone.


McGraw-Hill works directly with Accessibility Services Departments
and faculty to meet the learning needs of all students. Please
contact your Accessibility Services office and ask them to email
accessibility@mheducation.com, or visit
www.mheducation.com/about/accessibility for more
information.
Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero
Images/Getty Images
page xx

Note to Students
The material in this text is part of the core knowledge in your
education. Consequently, you will derive considerable benefit from
your study of operations management, regardless of your major.
Practically speaking, operations is a course in management.
This book describes principles and concepts of operations
management. You should be aware that many of these principles
and concepts are applicable to other aspects of your professional
and personal life. You can expect the benefits of your study of
operations management to serve you in those other areas as well.
Some students approach this course with apprehension, and
perhaps even some negative feelings. It may be that they have
heard that the course contains a certain amount of quantitative
material that they feel uncomfortable with, or that the subject
matter is dreary, or that the course is about “factory management.”
This is unfortunate, because the subject matter of this book is
interesting and vital for all business students. While it is true that
some of the material is quantitative, numerous examples, solved
problems, and answers at the back of the book help with the
quantitative material. As for “factory management,” there is material
on manufacturing, as well as on services. Manufacturing is
important, and something that you should know about for a number
of reasons. Look around you. Most of the “things” you see were
manufactured: cars, trucks, planes, clothing, shoes, computers,
books, pens and pencils, desks, and cell phones. And these are just
the tip of the iceberg. So it makes sense to know something about
how these things are produced. Beyond all that is the fact that
manufacturing is largely responsible for the high standard of living
people have in industrialized countries.
After reading each chapter or supplement in the text, attending
related classroom lectures, and completing assigned questions and
problems, you should be able to do each of the following:

. Identify the key features of that material.


. Define and use terminology.
. Solve typical problems.
4. Recognize applications of the concepts and techniques covered.
. Discuss the subject matter in some depth, including its relevance,
managerial considerations, and advantages and limitations.

You will encounter a number of chapter supplements. Check with


your course syllabus to determine which ones are included.
This book places an emphasis on problem solving. There are
many examples throughout the text illustrating solutions. In
addition, at the end of most chapters and supplements you will find
a group of solved problems. The examples within the chapter itself
serve to illustrate concepts and techniques. Too much detail at those
points would be counterproductive. Yet, later on, when you begin to
solve the end-of-chapter problems, you will find the solved problems
quite helpful. Moreover, those solved problems usually illustrate more
and different details than the problems within the chapter.
I suggest the following approach to increase your chances of
getting a good grade in the course:

. Do the class preparation exercises for each chapter if they are


available from your instructor.
. Look over the chapter outline and learning objectives.
. Read the chapter summary, and then skim the chapter.
4. Read the chapter and take notes.
. Look over and try to answer some of the discussion and review
questions.
. Work the assigned problems, referring to the solved problems and
chapter examples as needed.

Note that the answers to many problems are given at the end of
the book. Try to solve each problem before turning to the answer.
Remember—tests don’t come with answers.
And here is one final thought: Homework is on the Highway to
Success, whether it relates to your courses, the workplace, or life!
So do your homework, so you can have a successful journey!
W.J.S.
page xxi

Brief Contents

Preface vii
1 Introduction to Operations Management 2
2 Competitiveness, Strategy, and Productivity 40
3 Forecasting 74
4 Product and Service Design 138

SUPPLEMENT TO CHAPTER 4: Reliability 176


5 Strategic Capacity Planning for Products and Services
190

SUPPLEMENT TO CHAPTER 5: Decision Theory 222


6 Process Selection and Facility Layout 244
7 Work Design and Measurement 300

SUPPLEMENT TO CHAPTER 7: Learning Curves 336


8 Location Planning and Analysis 348
9 Management of Quality 378
10 Quality Control 418
11 Aggregate Planning and Master Scheduling 464
12 Inventory Management 502
13 MRP and ERP 560
14 JIT and Lean Operations 610

SUPPLEMENT TO CHAPTER 14: Maintenance 646


15 Supply Chain Management 654
16 Scheduling 692
17 Project Management 732
18 Management of Waiting Lines 784
19 Linear Programming 824

Appendix A: Answers to Selected Problems 858


Appendix B: Tables 870
Appendic C: Working with the Normal Distribution 876
Appendic D: Ten Things to Remember Beyond the Final Exam 882
Company Index 883
Subject Index 884
page xxii

Contents

Preface vii

1 Introduction to Operations Management 2


Introduction 4
Production of Goods Versus Providing Services 8
Why Learn About Operations Management? 10
Career Opportunities and Professional Societies 12
Process Management 13
The Scope of Operations Management 14
Reading:
Why Manufacturing Matters 17
Operations Management and Decision Making 18
Reading:
Analytics 20
The Historical Evolution of Operations Management 21
Operations Today 24
Reading:
Agility Creates a Competitive Edge 26
Key Issues for Today’s Business Operations 27
Readings:
Sustainable Kisses 28
Diet and the Environment: Vegetarian vs. Nonvegetarian 29
Operations Tour:
Wegmans Food Markets 33
Summary 36
Key Points 36
Key Terms 36
Discussion and Review Questions 36
Taking Stock 37
Critical Thinking Exercises 37
Case:
Hazel 38
Selected Bibliography and Further Readings 38
Problem-Solving Guide 39

2 Competitiveness, Strategy, and Productivity


40
Introduction 42
Competitiveness 42
Mission and Strategies 44
Readings:
Amazon Ranks High in Customer Service 45
Low Inventory Can Increase Agility 50
Operations Strategy 51
Implications of Organization Strategy for Operations
Management 54
Transforming Strategy into Action: The Balanced Scorecard 54
Productivity 56
Readings:
Why Productivity Matters 59
Dutch Tomato Growers’ Productivity Advantage 60
Productivity Improvement 62
Summary 62
Key Points 63
Key Terms 63
Solved Problems 63
Discussion and Review Questions 64
Taking Stock 64
Critical Thinking Exercises 65
Problems 65
Cases:
Home-Style Cookies 67
Hazel Revisited 68
“Your Garden Gloves” 69
Girlfriend Collective 69
Operations Tour:
The U.S. Postal Service 70
Selected Bibliography and Further Readings 73

3 Forecasting 74
Introduction 76
Features Common to All Forecasts 78
Elements of a Good Forecast 78

page xxiii

Forecasting and the Supply Chain 79


Steps in the Forecasting Process 79
Approaches to Forecasting 80
Qualitative Forecasts 80
Forecasts Based on Time-Series Data 82
Associative Forecasting Techniques 98
Another random document with
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A man whose vocabulary seems to be unlimited when he desires
to describe conditions, and whose nights were made sleepless by a
switch engine, recently wrote as follows to the railroad company:

Is it absolutely necessary, in discharge of his duty day and


night, that the engineer of your yard at the upper terminal
bridge should make his engine ding and dong and fizz and
spit and clang and bang and buzz and hiss and bell and wail
and pant and rant and yowl and grate and grind and puff and
bump and click and clank and chug and moan and hoot and
toot and crash and grunt and gasp and groan and whistle and
wheeze and squawk and blow and jar and perk and rasp and
jingle and twang and clack and rumble and jangle and ring
and clatter and yelp and croak and howl and hum and snarl
and puff and growl and thump and boom and clash and jolt
and jostle and shake and screech and snort and snarl and
slam and shake and throb and crink and quiver and rumble
and roar and rattle and yell and smoke and smell and shriek
like hell?—Labor Clarion, 1916.

The Habit of Swallowing the “G”

The Problem
It is strange why so many people fail to sound the “ing” ending
clearly when in reality to do so requires less effort than not to. There
is no better way of describing it than the swallowing of the “g.”
Let us take the word “running” and determine the action of the
tongue in the proper and improper enunciation of the “ing.”
1. Repeat it as “runnin’” and note the position of the tongue tip at
the end of the word. You will find it pressed against the roof of the
mouth just back of the upper front teeth. You will also note that the
vowel sound “i” is changed to “u.”
2. Now repeat “running.” You will discover the mouth is more open,
and the tongue tip just back of the lower front teeth, and the pure
vowel quality of “i” is retained.

Evil Effects
There are three serious effects upon the person who persists in
swallowing his “g’s”:
1. It causes a restricted throat, and consequently a tired one.
2. It causes a stoppage of pure tone, and consequently develops
nasality.
3. It shows a lack of care and culture.

Practice Exercises
Repeat the following exercises with distinctness and precision:
1. Beng, bang, bawng, bahng, bong, boong.
2. Deng, dang, dawng, dahng, dong, doong.
3. Feng, fang, fawng, fahng, fong, foong.
4. Geng, gang, gawng, gahng, gong, goong, (Hard “g” sound.)
5. Heng, hang, hawng, hahng, hong, hoong.
6. Jeng, jang, jawng, jahng, jong, joong.
7. Keng, kang, kawng, kahng, kong, koong.
8. Leng, lang, lawng, lahng, long, loong.
9. Meng, mang, mawng, mahng, mong, moong.
10. Peng, pang, pawng, pahng, pong, poong.
11. Qeng, qang, qawng, qahng, qong, qoong.
12. Reng, rang, rawng, rahng, rong, roong.
13. Seng, sang, sawng, sahng, song, soong.
14. Teng, tang, tawng, tahng, tong, toong.
15. Veng, vang, vawng, vahng, vong, voong.
16. Weng, wang, wawng, wahng, wong, woong.
17. Yeng, yang, yawng, yahng, yong, yoong.

HOW THE WATER COMES DOWN AT LODORE


By Robert Southey

Receding and speeding, and shocking and rocking,


And darting and parting, and threading and spreading,
And whizzing and hissing, and dripping and skipping,
And brightening and whitening, and quivering and shivering,
And hitting and splitting, and shining and twining,
And rattling and battling, and shaking and quaking,
And pouring and roaring, and waving and raving,
And tossing and crossing, and flowing and growing,
And running and stunning, and hurrying and scurrying,
And glittering and flittering, and gathering and feathering,
And dinning and spinning, and foaming and roaming,
And dropping and hopping, and working and jerking,
And gurgling and struggling, and heaving and cleaving,
And thundering and floundering:
And falling and crawling, and sprawling,
And driving and riving and striving,
And sprinkling and twinkling and wrinkling,
And sounding and bounding and rounding,
And bubbling and troubling and doubling,
Dividing and gliding and sliding,
And grumbling and rumbling and tumbling,
And clattering and battering and shattering,
And gleaming and streaming and steaming and beaming,
And rushing and flushing and brushing and gushing,
And flapping and rapping and clapping and slapping,
And curling and whirling and purling and twirling,
Retreating and meeting and beating and sheeting,
Delaying and straying and playing and spraying,
Advancing and prancing and glancing and dancing,
Recoiling, turmoiling, and toiling and boiling,
And thumping and plumping and bumping and jumping,
And dashing and flashing and splashing and clashing,
And so never ending but always descending,
Sounds and motions forever and ever are blending;
All at once, and all o’er, with a mighty uproar,
And in this way the water comes down at Lodore.

—Abridged.

Overcoming the Rising Inflection


One of the most effective elements of convincing speech is the
inflection.
By inflection is meant the glide of the voice to a higher or lower
pitch. This glide may be quick and short, or long and slow. It may be
a rising or falling glide, or both.
Complaints are constantly being made against the improper use of
the “rising inflection.” This misuse of one of the most invaluable
agencies for forceful utterance is persistently indulged in by the
majority of students. It is a common fault.
Its disastrous effect does not lie merely in ineffectiveness of
speech, yet that in itself ought to be sufficient cause for its cure, but
rather in its destructibility of the pupil’s will-power and self-
confidence. The pupil who has persisted in answering with a
question mark in his voice is indelibly marked. He is likely to be
dependent instead of independent and dependable; he is groping in
the dark for a crutch in order to keep his mental balance.
The most flagrant causes for such improper and inexcusable
speech may be enumerated under two heads:

On the Part of the Pupil


The pupil is not sure of the answer.
The pupil wishes to please the teacher.
The pupil is not sure he has answered enough.
The pupil fears he will make a mistake.
The pupil waits for the teacher to verify his answer.
The pupil is not sure of what he intends to say.
The pupil does not believe what he says. He is in doubt.
The pupil does not concentrate.
The pupil is careless and lazy.

On the Part of the Teacher


The teacher throws out suggestive hints of the answer and the
pupil answers in guesses.
The teacher’s question has not been clearly put.
The teacher has not definitely planned the lesson and
consequently uses the rising inflection too often.
The teacher does not demand definite and clear thought from
pupils.
The teacher accepts slovenly work.
The teacher grows calloused to the sound of the inflection
because of its never ceasing recurrence.
Is it not a lamentable fact that our schools have not given the
proper attention to eradicating this common and inexcusable fault?
Even in business and society the cultured ear is continually annoyed
by the common use of this abomination.
It is almost unbelievable that, out of twenty-five teachers recently
examined, but two were able to distinguish the good and bad
qualities of their own voices. Few teachers have ever given serious
thought to their own voices as invaluable instruments in the carrying
out of their duties.
At one time one of the authors made a careful study of the effect
of the teacher’s voice upon pupils. He visited the same grade at the
same hour on the same day in two different weeks and in two
different school-rooms. This is what he found.
In the first room the children were extremely nervous, restless,
unhappy and irritable. In the other room they were quiet, restful,
obedient and happy. In the first room the teacher used a hard
metallic tone, and usually spoke in quick, short “jabs” of speech.
There was little modulation of voice and she seemed to be talking
continuously, for when she was silent her harsh tones seemed to
continue reverberating in his ears.
In the second room the teacher had splendid poise and a pleasing,
well-modulated and natural tone. Her voice as well as her general
manner had a soothing effect upon the children, for, at the end of the
day, they, as well as herself, were not tired.
How often we hear people around us say of a public speaker: Why
doesn’t he speak so that people can hear him? or more clearly and
distinctly? etc.
During the training of would-be officers for our speedily required
army quite a number were passed as incompetent because their
voices were inadequate to give command. Only recently one of the
authors was present at a high school military drill. The boy in
command had a high, piping voice, of which he had little control, and
he was openly laughed at by his fellows to his intense mortification
and disgust. A good voice, properly trained and obedient to the will
of the personality behind it is an invaluable asset in life to every one.
If one does not possess it, he must gain it, and to accomplish this
theory is of little or no avail. The student must practice diligently and
persistently. The following exercises are carefully selected for the
purpose of giving power and voice control.

Exercises in Inflectional Agility

The Rising, Quick, Short Glide


Note: The italicized words are to be given quick, short, rising
inflection.
Attention.
Get on your mark! get set! go!
Company, halt!
Get ready, aim, fire!
Hands up!
Halt! who goes there?
Strike one, strike two; out!
All aboard!
Good night!
Sail on! Sail on! and on!
O James! come here! come here!
Charge, Chester, charge!
On, Stanley, on!
Hats off! hats off! I say.
Now’s the day and now’s the hour!

“Yo, ho, lads! yo ho, yo ho!


Joy, joy to all, for we must go,
Yo ho, lads! yo ho, yo ho!”

“I love, ah! how I love to ride


On the fierce, foaming, bursting tide.”

“To arms! they come! the Greek! the Greek!”


“Remember March, the ides of March remember.”
“Give us, O give us, the man who sings at his work!”

The Counting Exercise


1, 2, 3, 4, 5, 6, 7, 8, 9, 10.
1, 2, 3, 4, 5, 6, 7, 8, 9, 10.
1, 2, 3, 4, 5, 6, 7, 8, 9, 10.
(This exercise can be carried on indefinitely.)

Indicate the Inflected Words in the Following Excerpts


We, the People of the United States, in order to form a more
perfect Union, establish Justice, insure domestic Tranquillity, provide
for the common defense, promote the general welfare, and secure
the Blessings of Liberty to ourselves and our posterity, do ordain and
establish this Constitution of the United States of America.

Reading maketh a full man; conference, a ready man; and writing


an exact man.
—Francis Bacon: “Of Studies.”

He prayeth well who loveth well


Both man, and bird, and beast.

—S. T. Coleridge: “Ancient Mariner.”

So nigh is grandeur to our dust,


So near is God to man,
When Duty whispers low, “Thou must,”
The youth replies, “I can.”

—Ralph Waldo Emerson.


The Falling, Quick, Short Glide
Note: Italicized words are given quick and short falling inflections.
Hold that line, hold that line, hold that line hard.
Good night (a provincialism, meaning disgust or hopelessness).
“Hence! home, you idle creature; get you home!”
“I am a Jew.”
“Laughed at my losses, mocked at my gains, scorned my nation,
thwarted my bargains, cooled my friends, heated mine enemies.”

Indicate the Inflected Words in the Following Excerpts


Quoth the raven, “Never more.”
O death, where is thy sting!
No stir in the air, no stir in the sea.
Leave me to my fate.
My heart is awed within me.
Roll on, thou deep and dark blue Ocean, roll!
Full fathom five thy father lies.

Break, break, break,


At the foot of thy crags, O Sea!
But the tender grace of a day that is dead
Will never come back to me.

—Tennyson.

“The noise that twenty or thirty lions can make, deliberately bent
on making it and roaring all at once, is unbelievable. They throw their
heads up and glory in strength of lungs until thunder takes second
place, and the listener knows why not the bravest, not the most
dangerous of beasts has managed to impose the fable of his
grandeur on men’s imagination.”
—Talbot Mundy, in “The Ivory Trail.”

We’re foot—slog—slog—slog—sloggin’ over Africa!


Foot—foot—foot—foot—sloggin’ over Africa—
(Boots—boots—boots—boots—movin’ up and down again!)
There’s no discharge in the war!

Seven—six—eleven—five—nine-an’-twenty mile to-day—


Four—eleven—seventeen—thirty-two the day before—
(Boots—boots—boots—boots—movin’ up and down again!)
There’s no discharge in the war!

Don’t—don’t—don’t—don’t—look at what’s in front of you


(Boots—boots—boots—boots—movin’ up an’ down again!)
Men—men—men—men—men go mad with watchin’ ’em,
An’ there’s no discharge in the war!

—Kipling.

The Rising Long and Slow Glide


Note: The italicized words are given a long, slow, upward glide.
“Now, then,” cried Squeers, from the bottom of the stairway, “are
you going to sleep all day, up there?”

Breathes there a man, with soul so dead,


Who never to himself hath said,
“This is my own, my native land!”
Whose heart hath ne’er within him burned,
As home his footsteps he hath turned
From wandering on a foreign strand?
If such there breathe, go, mark him well.
—Scott.

Higher still and higher


From the earth thou springest
Like a cloud of fire;
The blue deep thou wingest
And singing still dost soar, and soaring ever singest.

—Shelley.

Sweet are the uses of adversity,


Which, like the toad, ugly and venomous,
Wears yet a precious jewel in his head;
And this our life, exempt from public haunt,
Finds tongues in trees, books in the running brooks,
Sermons in stones, and good in every thing.

—Shakespeare.

Indicate the Inflected Words in the Following Excerpts


There were seen, side by side, the greatest painter and the
greatest scholar of the age.
They must upward still, and onward, who would keep abreast of
Truth.
He has this day surprised the thousands who hung with rapture on
his accents, by such an array of talents, such an exhibition of
capacity, such a display of powers, as are unparalleled in the annals
of oratory; a display that reflects the highest honor on himself—luster
upon letters—renown upon parliament—glory upon the country.
—Burke, on “Sheridan.”

Better to smell the violet cool


Than sip the glowing wine;
Better to hark a hidden brook
Than watch a diamond shine.

Better to sit at a master’s feet


Than thrill a listening state;
Better suspect that thou art proud
Than be sure that thou art great.

The Falling Long and Slow Inflection


Note: The italicized words are given a long, slow, downward glide:
Whoever would have thought of that!
Yes, it is gone forever and ever.
Well, did you ever!

Under the one, the Blue;


Under the other, the Gray.

No, sir! these walls, these columns


Shall fly
From their firm base as soon as I.

These are the sins I fain


Would have thee take away:
Malice, and cold disdain,
Hot anger, sullen hate,
Scorn of the lowly, envy of the great,
And discontent that casts a shadow gray
On all the brightness of the common day.

Indicate the Inflected Words in the Following Excerpts


He bowed his head, and bent his knee
Upon the monarch’s silken stool;
His pleading voice arose: “O Lord,
Be merciful to me, a fool!”

Break, break, break,


On thy cold gray stones, O Sea!
And I would that my tongue could utter
The thoughts that arise in me.

Break, break, break,


At the foot of thy crags, O Sea!
But the tender grace of a day that is dead
Will never come back to me.

Most potent, grave, and reverend signiors,


My very noble, and approved good masters,
That I have ta’en away this old man’s daughter,
It is most true; true, I have married her.

He loved his country as no other man has loved her; but no man
deserved less at her hands.
Tell me not in mournful numbers.
I told you so. And you will, will you?

The Hills,
Rock-ribbed, and ancient as the sun; the vales
Stretching in pensive quietness between;
The venerable woods; rivers that move
In majesty, and the complaining brooks,
That make the meadows green; and, poured round all,
Old ocean’s gray and melancholy waste,—
Are but the solemn decorations all
Of the great tomb of man!
...
It is ten o’clock:
Thus may we see how the world wags:
’Tis but an hour ago, since it was nine;
And after an hour more ’twill be eleven;
And so from hour to hour we ripe and ripe,
And then, from hour to hour, we rot and rot,
And thereby hangs a tale.
Our hearts, our hopes, are all with thee,
Our hearts, our hopes, our prayers, our tears,
Our faith triumphant o’er our fears,
Are all with thee,—are all with thee!

—Longfellow.

Exercises Containing a Variety of Inflections


Let each pupil decide for himself what he believes to be the most
effective and proper inflections in the following. In doing this it is well
to have him state his reason. This act of reasoning will aid him in
concentrating upon the thought matter.

The cold feeble dawn of a January morning was stealing in at the


windows of the common sleeping room, when Nicholas, raising
himself on his arm, looked among the prostrate forms in search of
the boy Smike.
“Now, then,” cried Squeer, from the bottom of the stairway, “are
you going to sleep all day, up there?”
“We shall be down directly, sir.”
“Down directly! You had better be down directly, or I’ll be down on
some of you in less time than directly. Where’s that Smike?”
Nicholas looked round again.
“He is not here, sir.”
“Don’t tell me a lie. He is.”
“He is not. Don’t tell me.”
Squeers bounced into the dormitory, and, swinging his cane in the
air ready for a blow, darted into the corner where Smike usually lay
at night. The cane descended harmlessly. There was nobody there.
“What does this mean? Where have you hid him?”
“I have seen nothing of him since last night.”
“Come, you won’t save him this way. Where is he?”
“At the bottom of the nearest pond for anything I know.”
—Charles Dickens.

We hold these truths to be self-evident: that all men are created


equal; that they are endowed by their Creator with certain inalienable
rights; that among these are life, liberty, and the pursuit of
happiness.

Breathes there a man, with soul so dead,


Who never to himself hath said,
“This is my own, my native land!”
Whose heart hath ne’er within him burned,
As home his footsteps he hath turned
From wandering on a foreign strand?
If such there breathe, go, mark him well;
For him no Minstrel-raptures swell;
High though his titles, proud his name,
Boundless his wealth as wish can claim;
Despite those titles, power, and pelf,
The wretch concenter’d all in self,
Living, shall forfeit fair renown,
And, doubly dying, shall go down
To the vile dust, from whence he sprung,
Unwept, unhonor’d, and unsung.

—Scott.
What constitutes a state?
Not high-raised battlement or labored mound,
Thick wall or moated gate;
Not cities proud with spires and turrets crowned;
Not bays and broad-armed ports,
Where, laughing at the storm, rich navies ride;
Not starred and spangled courts,
Where low-browed baseness wafts perfume to pride.
No: men—high-minded men,
With powers as far above dull brutes endued
In forest, brake, or den,
As beasts excel cold rocks and brambles rude;
Men, who their duties know,
But know their rights, and, knowing, dare maintain.

—Sir William Jones.

What a piece of work is man! How noble in reason! How infinite in


faculties! In form and moving, how express and admirable! In action,
how like an angel! In apprehension, how like a god!
—Shakespeare.

Neither a borrower, nor a lender be;


For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all,—to thine own self be true;
And it must follow, as the night the day,
Thou canst not then be false to any man.

—Shakespeare.

There is a tide in the affairs of men,


Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows, and in miseries.
On such a full sea are we now afloat;
And we must take the current when it serves,
Or lose our ventures.

—Shakespeare.

All the world’s a stage,


And all the men and women merely players:
They have their exits and their entrances,
And one man in his time plays many parts,
His acts being seven ages. At first the infant,
Mewling and puking in the nurse’s arms.
And then the whining school-boy, with his satchel
And shining morning face, creeping like snail
Unwillingly to school. And then the lover,
Sighing like furnace, with a woeful ballad
Made to his mistress’s eyebrow. Then a soldier,
Full of strange oaths, and bearded like the pard,
Jealous in honor, sudden and quick in quarrel,
Seeking the bubble reputation
Even in the cannon’s mouth. And then the justice,
With eyes severe, and beard of formal cut,
Full of wise saws and modern instances;
And so he plays his part. The sixth age shifts
Into the lean and slippered pantaloon,
With spectacle on nose, and pouch on side;
His youthful hose, well saved, a world too wide
For his shrunk shank; and his big manly voice,
Turning again towards childish treble, pipes
And whistles in his sound. Last scene of all,
That ends this strange eventful history,
Is second childishness, and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything.
—Shakespeare.

Stay, you that bear the corse, and set it down.

These are the gifts I ask


Of thee, Spirit serene:
Strength for the daily task,
Courage to face the road,
Good cheer to help bear the traveler’s load,
And, for the hours of rest that come between,
An inward joy in all things heard and seen.

—Van Dyke.

These are the things I prize


And hold of dearest worth:
Light of sapphire skies,
Peace of the silent hills,
Shelter of forests, comfort of the grass,
Music of birds, murmur of little rills,
Shadows of cloud that swiftly pass,
And, after showers,
The smell of flowers
And of the good brown earth,—
And best of all, along the way, friendship and mirth.

—Van Dyke.

The year’s at the spring


And day’s at the morn;
Morning’s at seven;
The hillside’s dew-pearled;
The lark’s on the wing;
The snail’s on the thorn:
God’s in his heaven—
All’s right with the world!

—Browning.

Oh, to be in England
Now that April’s there,
And whoever wakes in England
Sees, some morning, unawares,
That the lowest boughs and the brush-wood sheaf
Round the elm-tree bole are in tiny leaf,
While the chaffinch sings on the orchard bough
In England—now!

—Browning.

Day!
Faster and more fast,
O’er night’s brim, day boils at last:
Boils, pure gold, o’er the cloud-cup’s brim
Where spurting and suppressed it lay,
For not a froth-flake touched the rim
Of yonder gap in the solid gray
Of the eastern cloud, an hour away;
But forth one wavelet, then another, curled,
Till the whole sunrise, not to be suppressed,
Rose, reddened, and its seething breast
Flickered in bounds, grew gold, then overflowed the world.

—Browning.

Oh, such a commotion under the ground


When March called, “Ho, there! ho!”
Such spreading of rootlets far and wide,
Such whispering to and fro.
And “Are you ready?” the Snowdrop asked;
“’Tis time to start, you know.”
“Almost, my dear,” the Scilla replied;
“I’ll follow as soon as you go.”
Then, “Ha! Ha! Ha!” a chorus came
Of laughter soft and low
From the millions of flowers under the ground—
Yes—millions—beginning to grow.

—From “Nature in Verse.” By kind permission of Silver, Burdett


and Company, Publishers.

My good blade carves the casques of men,


My tough lance thrusteth sure,
My strength is as the strength of ten,
Because my heart is pure.
The shattering trumpet shrilleth high,
The hard brands shiver on the steel,
The splinter’d spear-shafts crack and fly,
The horse and rider reel:
They reel, they roll in clanging lists,
And when the tide of combat stands,
Perfume and flowers fall in showers,
That lightly rain from ladies’ hands.

—Tennyson.

Such a starved bank of moss till, that May-morn,


Blue ran the flash across: violets were born!
Sky—what a scowl of cloud till, near and far,
Ray on ray split the shroud: splendid, a star!
World—how it walled about life with disgrace
Till God’s own smile came out: that was thy face!

—Browning.

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