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Operations Management
ste3889X_fm_i-1.indd i 11/29/19 03:49 PM

viii Preface
Finally, I would like to thank all the people at McGraw-Hill Prafulla Joglekar, LaSalle University; Vijay Kannan, Utah
for their efforts and support. It is always a pleasure to work State University; Sunder Kekre, Carnegie-Mellon University;
with such a professional and competent group of people. Jim Keyes, University of Wisconsin at Stout; Seung-Lae Kim,
Special thanks go to Noelle Bathurst, Portfolio Manager; Drexel University; Beate Klingenberg, Marist College; John
Michele Janicek, Lead Product Developer; Fran Simon and Kros, East Carolina University; Vinod Lall, Minnesota State
Katie Ward, Product Developers; Jamie Koch, Assessment University at Moorhead; Kenneth Lawrence, New Jersey
Content Project Manager; Sandy Ludovissy, Buyer; Matt Dia- Institute of Technology; Jooh Lee, Rowan University; Anita
mond, Designer; Jacob Sullivan, Content Licensing Special- Lee-Post, University of Kentucky; Karen Lewis, University of
ist; Harper Christopher, Executive Marketing Manager; and Mississippi; Bingguang Li, Albany State University; Cheng
many others who worked behind the scenes. Li, California State University at Los Angeles; Maureen P.
I would also like to thank the many reviewers of previous Lojo, California State University at Sacramento; F. Victor
editions for their contributions: Vikas Agrawal, Fayetteville Lu, St. John’s University; Janet Lyons, Utah State Univer-
State University; Bahram Alidaee, University of Mississippi; sity; James Maddox, Friends University; Gita Mathur, San
Ardavan Asef-Faziri, California State University at North- Jose State University; Mark McComb, Mississippi College;
ridge; Prabir Bagchi, George Washington State University; George Mechling, Western Carolina University; Scott Metlen,
Gordon F. Bagot, California State University at Los Angeles; University of Idaho; Douglas Micklich, Illinois State Univer-
Ravi Behara, Florida Atlantic University; Michael Bendixen, sity; Ajay Mishra, SUNY at Binghamton; Scott S. Morris,
Nova Southeastern; Ednilson Bernardes, Georgia Southern Southern Nazarene University; Philip F. Musa, University of
University; Prashanth N. Bharadwaj, Indiana University of Alabama at Birmingham; Roy Nersesian, Monmouth Univer-
Pennsylvania; Greg Bier, University of Missouri at Columbia; sity; Jeffrey Ohlmann, University of Iowa at Iowa City; John
Joseph Biggs, Cal Poly State University; Kimball Bullington, Olson, University of St. Thomas; Ozgur Ozluk, San Francisco
Middle Tennessee State University; Alan Cannon, University State University; Kenneth Paetsch, Cleveland State Univer-
of Texas at Arlington; Injazz Chen, Cleveland State Univer- sity; Taeho Park, San Jose State University; Allison Pearson,
sity; Alan Chow, University of Southern Alabama at Mobile; Mississippi State University; Patrick Penfield, Syracuse Uni-
Chrwan-Jyh, Oklahoma State University; Chen Chung, Uni- versity; Steve Peng, California State University at Hayward;
versity of Kentucky; Robert Clark, Stony Brook University; Richard Peschke, Minnesota State University at Moorhead;
Loretta Cochran, Arkansas Tech University; Lewis Cooper- Andru Peters, San Jose State University; Charles Phillips,
smith, Rider University; Richard Crandall, Appalachian State Mississippi State University; Frank Pianki, Anderson Uni-
University; Dinesh Dave, Appalachian State University; Scott versity; Sharma Pillutla, Towson University; Zinovy Rado-
Dellana, East Carolina University; Kathy Dhanda, DePaul vilsky, California State University at Hayward; Stephen A.
University; Xin Ding, University of Utah; Ellen Dumond, Raper, University of Missouri at Rolla; Pedro Reyes, Baylor
California State University at Fullerton; Richard Ehrhardt, University; Buddhadev Roychoudhury, Minnesota State Uni-
University of North Carolina at Greensboro; Kurt Engemann, versity at Mankato; Narendra Rustagi, Howard University;
Iona College; Diane Ervin, DeVry University; Farzaneh Herb Schiller, Stony Brook University; Dean T. Scott, DeVry
Fazel, Illinois State University; Wanda Fennell, University of University; Scott J. Seipel, Middle Tennessee State Univer-
Mississippi at Hattiesburg; Joy Field, Boston College; War- sity; Raj Selladurai, Indiana University; Kaushic Sengupta,
ren Fisher, Stephen F. Austin State University; Lillian Fok, Hofstra University; Kenneth Shaw, Oregon State University;
University of New Orleans; Charles Foley, Columbus State Dooyoung Shin, Minnesota State University at Mankato;
Community College; Matthew W. Ford, Northern Kentucky Michael Shurden, Lander University; Raymond E. Simko,
University; Phillip C. Fry, Boise State University; Charles Myers University; John Simon, Governors State University;
A. Gates Jr., Aurora University; Tom Gattiker, Boise State Jake Simons, Georgia Southern University; Charles Smith,
University; Damodar Golhar, Western Michigan University; Virginia Commonwealth University; Kenneth Solheim,
Robert Graham, Jacksonville State University; Angappa DeVry University; Young Son, Bernard M. Baruch College;
Gunasekaran, University of Massachusetts at Dartmouth; Victor Sower, Sam Houston State University; Jeremy Staf-
Haresh Gurnani, University of Miami; Terry Harrison, Penn ford, University of North Alabama; Donna Stewart, Univer-
State University; Vishwanath Hegde, California State Uni- sity of Wisconsin at Stout; Dothang Truong, Fayetteville State
versity at East Bay; Craig Hill, Georgia State University; University; Mike Umble, Baylor University; Javad Varzan-
Jim Ho, University of Illinois at Chicago; Seong Hyun Nam, deh, California State University at San Bernardino; Timothy
University of North Dakota; Jonatan Jelen, Mercy College; Vaughan, University of Wisconsin at Eau Claire; Emre Veral,
ste3889X_fm_i-1.indd viii 11/29/19 03:49 PM

Preface ix
Baruch College; Mark Vroblefski, University of Arizona; Geoff Willis, University of Central Oklahoma; Pamela Zelbst,
Gustavo Vulcano, New York University; Walter Wallace, Sam Houston State University; Jiawei Zhang, NYU; Zheny-
Georgia State University; James Walters, Ball State Univer- ing Zhao, University of Maryland; Yong-Pin Zhou, Univer-
sity; John Wang, Montclair State University; Tekle Wanorie, sity of Washington.
Northwest Missouri State University; Jerry Wei, University
of Notre Dame; Michael Whittenberg, University of Texas; William J. Stevenson
ste3889X_fm_i-1.indd ix 11/29/19 03:49 PM

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 Rev.Confirming Pages
analytic technique is introduced, an example is
included to illustrate the application of that tech-
nique. These are designed to be easy to follow.
Chapter Three Forecasting 103
Determining a Regression Equation EXAMPLE 8

Sales of new houses and three-month lagged unemployment are shown in the following
table. Determine if unemployment levels can be used to predict demand for new houses
mhhe.com/stevenson14e
and, if so, derive a predictive equation.
Period . . . . . . . . . . . . . 1 2 3 4 5 6 7 8 9 10 11
Units sold . . . . . . . . . . 20 41 17 35 25 31 38 50 15 19 14
Unemployment %
(three-month lag) 7.2 4.0 7.3 5.5 6.8 6.0 5.4 3.6 8.4 7.0 9.0
1. Plot the data to see if a linear model seems reasonable. In this case, a linear model S O L U T I O N
seems appropriate for the range of the data.
50
40
Units sold, y
30
20
10
0
2 4 6 8 10
Level of unemployment (%), x
2. Check the correlation coefficient to confirm that it is not close to zero using the web-
site template, and then obtain the regression equation:
r = −.966
This is a fairly high negative correlation. The regression equation is
y = 71.85 − 6.91x
Note that the equation pertains only to unemployment levels in the range 3.6 to 9.0, because
sample observations covered only that range.
ste3889X_fm_i-1.indd x 11/29/19 03:49 PM

Chapter Two Competitiveness, Strategy, and Productivity Final PDF to printer
1. Competitive pressure often means that business organizations must frequently assess their com-
petitors’ strengths and weaknesses, as well as their own, to remain competitive. KEY POINTS
2. Strategy formulation is critical because strategies provide direction for the organization, so they
can play a role in the success or failure of a business organization.
3. Functional strategies and supply chain strategies need to be aligned with the goals and strategies
of the overall organization.
4. The three primary business strategies are low cost, responsiveness, and differentiation.
5. Productivity is a key factor in the cost of goods and services. Increases in productivity can
become a competitive advantage.
6. High productivity is particularly important for organizations that have a strategy of low costs.
competitiveness, 42 mission statement, 44 quality-based strategies, 52

core competencies, 46 operations strategy, 51 strategies, 44 KEY TERMS
environmental scanning, 48 order qualifiers, 48 SWOT, 48
Solved Problems goals, 44

mission, 44
order winners, 48
productivity, 56
tactics, 45
time-based strategies, 53
At the end of chapters

and chapter supplements, SOLVED PROBLEMS
“Solved Problems” are Computing Productivity Problem 1
provided to illustrate A company that processes fruits and vegetables is able to produce 400 cases of canned peaches in
one-half hour with four workers. What is labor productivity?
problem solving and the Quantity produced 400 cases
Labor productivity = ________________ = ________________________ Solution

core concepts in the chapter. Labor hours 4 workers × 1 / 2 hour / worker
= 200 cases per labor hour
These have been carefully
prepared to help students Computing Multifactor Productivity Problem 2
A wrapping-paper company produced 2,000 rolls of paper in one day. Labor cost was $160, material
understand the steps cost was $50, and overhead was $320. Determine the multifactor productivity.
Quantity produced
involved in solving different Multifactor productivity = ______________________________
Labor cost + Material cost + Overhead
Solution
types of problems. The Excel 2,000 rolls
= _______________ = 3.77 rolls per dollar input
$160 + $50 + $320
logo indicates that a spread-
A variation of the multifactor productivity calculation incorporates the standard price in the
sheet is available on the numerator by multiplying the units by the standard price.Rev.Confirming Pages
text’s website.
Computing Multifactor Productivity Problem 3
Compute the multifactor productivity measure for an eight-hour day in which the usable output was
300 units, produced by three workers who used 600 pounds of materials. Workers have an hourly
wage of $20, and material cost is $1 per pound. Overhead is 1.5 times labor cost.
Chapter Sixteen Scheduling Usable output 707
Multifactor productivity = __________________________________ Solution
Labor cost + Material cost + Overhead cost
300 units
TABLE 16.5 Excel solution for Example 2a = _____________________________________________________
(3 workers × 8 hours × $20 / hour) + (600 pounds × $1 / pound) +
300 units
Excel Spreadsheet
(3 workers × 8 hours × $20 / hour × 1.50)
= ________________
$480 + $600 + $720
= .167 units of output per dollar of input
Solutions
Where applicable, the
examples and solved
problems include screen
shots of a spreadsheet
ste3889X_ch02_040-073.indd 63
solution. 09/04/19 09:59 AM
Source: Microsoft
c. Using earliest due date as the selection criterion, the job sequence is C-A-E-B-D-F.
The measures of effectiveness are as follows (see table):
(1) Average flow time: 110/6 = 18.33 days xi
(2) Average tardiness: 38/6 = 6.33 days
(3) Average number of jobs at the work center: 110/41 = 2.68
(1) (2) (3) (2) – (3)

Job Processing Flow Due Days Tardy
Sequence Time Time Date [0 if negative]
C 4 4 4 0
ste3889X_fm_i-1.indd
A xi 2 6 7 0 11/29/19 03:49 PM
E 5 11 15 0
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 Rev.Confirming Pages
material. The learning objectives are also Rev.Confirming Pages
included next to the specific material in the

margins of the text.
4
C H A P T E R
Product and Service
Design
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
LO4.1 Explain the strategic importance of product and service design.
LO4.2 Describe what product and service design does.
LO4.3 Name the key questions of product and service design.
LO4.4 Identify some reasons for design or redesign.
LO4.5 List some of the main sources of design ideas.
LO4.6 Discuss the importance of legal, ethical, and sustainability considerations in product and service design.
Mark Lennihan/AP Images
LO4.7 Explain the purpose and goal of life-cycle assessment.
LO4.8 Explain the phrase “the 3 Rs.”
LO4.9 Briefly describe the phases in product design and development.
165 Service Blueprinting 168 4.12 Operations Strategy 170
LO4.10 Discuss several key issues in product or service design. 4.11 Service
OverviewDesign
of Service Design 166 Characteristics of Well- Operations Tour: High Acres
LO4.11 Discuss the two key issues in service design. Differences between Designed Service Systems 168 Landfill 174
LO4.12 List the characteristics of well-designed service systems. Service Design and Challenges of Service Chapter Supplement:
Product Design 166 Design 169 Reliability 176
LO4.13 List some guidelines for successful service design.
Phases in the Service Design Guidelines for Successful
Process 167 Service Design 169
C H A P T E R O U T L I N E
4.1 Introduction 140 4.7 Environmental Factors: Designing for Mass
What Does Product and Service Sustainability 146 Customization 154 The essence of a business organization is the products and services it offers, and every LO4.1 Explain the strate-
Design Do? 140 Cradle-to-Grave Assessment 146 Reliability 156 aspect of the organization and its supply chain are structured around those products gic importance of product
Objectives of Product and End-of-Life Programs 147 Robust Design 157 and services. Organizations that have well-designed products or services are more and service design.
Service Design 141 The Three Rs: Reduce, Reuse, Degree of Newness 158 likely to realize their goals than those with poorly designed products or services. Hence,
Key Questions 141 and Recycle 147
Reduce: Value Analysis 147
Quality Function Deployment 158 organizations have a strategic interest in product and service design. Product or service design should be closely tied
Reasons for Product or Service The Kano Model 160
Design or Redesign 141 Reuse: Remanufacturing 148 to an organization’s strategy. It is a major factor in cost, quality, time-to-market, customer satisfaction, and competitive
Recycle 149 4.9 Phases in Product Design advantage. Consequently, marketing, finance, operations, accounting, IT, and HR need to be involved. Demand fore-
4.2 Idea Generation 142 and Development 162
4.3 Legal and Ethical 4.8 Other Design casts and projected costs are important, as is the expected impact on the supply chain. It is significant to note that an
Considerations 151 4.10 Designing for Production 163
Considerations 144
Concurrent Engineering 163
important cause of operations failures can be traced to faulty design. Designs that have not been well thought out, or
Strategies for Product or
4.4 Human Factors 145 Service Life Stages 151 Computer-Aided Design are incorrectly implemented, or instructions for assembly or usage that are wrong or unclear, can be the cause of prod-
4.5 Cultural Factors 145 Product Life Cycle (CAD) 164 uct and service failures, leading to lawsuits, injuries and deaths, product recalls, and damaged reputations.
4.6 Global Product and Service Management 153 Production Requirements 165
Design 146 Degree of Standardization 153 Component Commonality 165 continued
138 139
ste3889X_ch04_138-175.indd 138 08/01/19 07:17 AM

ste3889X_ch04_138-175.indd 139 08/01/19 07:17 AM
Chapter Outlines Opening Vignettes

Every chapter and supplement includes an Each chapter opens with an introduction to the
outline of the topics covered. important operations topics covered in the chapter.
This enables students to see the relevance of
xii
operations management in order to actively engage
in learning the material.
ste3889X_fm_i-1.indd xii 11/29/19 03:49 PM

Figures and Photos

The text includes photographs and
Rev.Confirming Pages
graphic illustrations to support
student learning and provide interest
and motivation. Approximately 100
carefully selected photos highlight 246 Chapter Six Process Selection and Facility Layout
the 14th edition. The photos illustrate
FIGURE 6.1 Inputs Outputs
applications of operations and supply Process selection and
chain concepts in many successful capacity planning influence Forecasting
Facilities and
equipment
system design
companies. More than 400 graphic Capacity
illustrations, more than any other Planning
text in the field, are included and all Product and

service design
Layout
are color coded with pedagogical Rev.Confirming Pages

Process
consistency to assist students in Selection
understanding concepts. Technological Work

change design
56 Chapter Two Competitiveness, Strategy, and Productivity
A major key to Apple’s continued

success is its ability to keep pushing
the boundaries of innovation. Apple
6.1 INTRODUCTION
LO6.1 Explain the
has demonstrated how to create
growth by dreaming up products so strategic importance of Process selection refers to deciding on the way production of goods or services will be orga-
new and ingenious that they have process selection and the nized. It has major implications for capacity planning, layout of facilities, equipment, and
upended one industry after another. influence it has on the design of work systems. Process selection occurs as a matter of course when new products or
organization and its supply services are being planned. However, it also occurs periodically due to technological changes
chain. in products or equipment, as well as competitive pressures. Figure 6.1 provides an overview
of where process selection and capacity planning fit into system design. Forecasts, product
and service design, and technological considerations all influence capacity planning and pro-
cess selection. Moreover, capacity and process selection are interrelated, and are often done in
concert. They, in turn, affect facility and equipment choices, layout, and work design.
How an organization approaches process selection is determined by the organization’s pro-
cess strategy. Key aspects include:
• Capital intensity: The mix of equipment and labor that will be used by the organization.
Pieter Beens/Shutterstock
• Process flexibility: The degree to which the system can be adjusted to changes in
processing requirements due to such factors as changes in product or service design,
changes in volume processed, and changes in technology.
Moreover, this approach pays little attention to suppliers and government regulations, and
6.2 PROCESS SELECTION
community, environmental, and sustainability issues are missing. These are closely linked,
and business organizations LO6.2
need to Name theoftwo
be aware the impact they are having in these areas and
respond accordingly. Otherwise, organizations
main factors Process
may be subject
that influence choice
to attack by is demand-driven.
pressure groups The two key questions in process selection are:
and risk damage to their reputation.
process selection.
1. How much variety will the process need to be able to handle?
2. How much volume will the process need to be able to handle?
Answers to these questions will serve as a guide to selecting an appropriate process. Usu-
2.7 PRODUCTIVITY ally, volume and variety are inversely related; a higher level of one means a lower level of the
LO2.6 Define the term
other. However, the need for flexibility of personnel and equipment is directly related to the
productivity and explain One of the primary responsibilities of a manager is to achieve productive use of an organiza-
why it is important to com-
level
tion’s resources. The term productivity is used to describe this. of variety the
Productivity is anprocess will need to handle: The lower the variety, the less the need for
index that
panies and to countries. flexibility,
measures output (goods and services) relative to the input (labor, while
materials, the higher
energy, the variety, the greater the need for flexibility. For example, if a
and other
worker’s
resources) used to produce it. It is usually expressed as the ratio job to
of output in input:
a bakery is to make cakes, both the equipment and the worker will do the same
Productivity A measure of thing day after day, with little need for flexibility. But if the worker has to make cakes, pies,
Output cookies, brownies, and croissants, both the worker and the equipment must have the flexibil-
the effective use of resources, Productivity = ______ (2–1)
usually expressed as the ratio Input ity to be able to handle the different requirements of each type of product.
of output to input. Thereitisisanother
Although productivity is important for all business organizations, aspect
particularly of variety that is important. Variety means either having dedicated
impor-
tant for organizations that use a strategy of low cost, becauseoperations
the higherfortheeach differentthe
productivity, product or service, or if not, having to get equipment ready every
lower the cost of the output. time there is the need to change the product being produced or the service being provided.
A productivity ratio can be computed for a single operation, a department, an organiza-
tion, or an entire country. In business organizations, productivity ratios are used for planning
workforce requirements, scheduling equipment, financial analysis, and other important tasks.
Productivity has important implications for business organizations and for entire nations.
For nonprofit organizations, higher productivity means lower costs; for profit-based organiza-
tions, productivity is an important factor in determining how competitive a company is. For
a nation, the rate of productivity growth is of great importance. Productivity growth is the
ste3889X_ch06_244-299.indd 246 08/01/19 07:28 AM
increase in productivity from one period to the next relative to the productivity in the preced-
ing period. Thus,
Current productivity − Previous productivity xiii
Productivity growth = _____________________________________ × 100 (2–2)
Previous productivity
ste3889X_fm_i-1.indd xiii 11/29/19 03:49 PM

ste3889X_ch02_040-073.indd 56 09/04/19 09:59 AM
Rev.Confirming Pages
Chapter Five Strategic Capacity Planning for Products and Services 213
5.12 OPERATIONS STRATEGY Operations Strategies

The strategic implications of capacity decisions can be enormous, impacting all areas of the An Operations Strategy section
organization. From an operations management standpoint, capacity decisions establish a set is included at the end of most
of conditions within which operations will be required to function. Hence, it is extremely
important to include input from operations management people in making capacity decisions.
chapters. These sections discuss
Flexibility can be a key issue in capacity decisions, although flexibility is not always an how the chapters’ concepts can
option, particularly in capital-intensive industries. However, where possible, flexibility allows
an organization to be agile—that is, responsive to changes in the marketplace. Also, it reduces
be applied and how they impact
to a certain extent the dependence on long-range forecasts to accurately predict demand. And the operations of a company.
flexibility makes it easier for organizations to take advantage of technological and other inno-
vations. Maintaining excess capacity (a capacity cushion) may provide a degree of flexibility,
albeit at added cost.
Some organizations use a strategy of maintaining a capacity cushion for the purpose of
blocking entry into the market by new competitors. The excess capacity enables them to pro-
duce at costs lower than what new competitors can. However, such a strategy means higher-
than-necessary unit costs, and it makes it more difficult to cut back if demand slows, or to
shift to new product or service offerings.
Efficiency improvements and utilization improvements can provide capacity increases.
Such improvements can be achieved by streamlining operations and reducing waste. The
chapter on lean operations describes ways for achieving those improvements.
Bottleneck management can be a way to increase effective capacity, by scheduling non-
bottleneck operations to achieve maximum utilization of bottleneck operations.
In cases where capacity expansion will be undertaken, there are two strategies for deter-
mining the timing and degree of capacity expansion. One is the expand-early strategy (i.e.,
before demand materializes). The intent might be to achieve economies of scale, to expand
market share, or to preempt competitors from expanding. The risks of this strategy include Rev.Confirming Pages
an oversupply that would drive prices down, and underutilized equipment that would result in
higher unit costs.
The other approach is the wait-and-see strategy (i.e., to expand capacity only after demand
materializes, perhaps incrementally). Its advantages include a lower chance of oversupply due
to more accurate matching of supply and demand, and higher capacity utilization. The key
READING DUTCH BOY BRUSHES
risks are loss of market share and the inability to meet demand if expansion requires a long
UP ITS PAINTS
lead time.
Sherwin-Williams’ Dutch Boy Group put a revolutionary spin on
In cases where capacity contraction will paint be undertaken, capacity
cans with its innovative disposal Twist
square-shaped strategies
& PourTM
become important. This can be the result of thepaint-delivery
need to replace
container aging equipment
for the Dirt with
Fighter interior latexnewer
paint line.
equipment. It can also be the result of outsourcing and downsizing
The four-piece square containeroperations. The
could be the first majorcost or in
change
how house paint is packaged in decades. Lightweight but sturdy,
benefit of asset disposal should be taken into account when contemplating these actions.
the Twist & Pour “bucket” is packed with so many conveniences, it
Readings is next to impossible to mess up a painting project.

Winning Best of Show in an AmeriStar packaging competi-
tion sponsored by the Institute of Packaging Professionals, the
Readings highlight important
Capacity refers to a system’s potential for producingexclusive,
goods orall-plastic
delivering
paint services over aalmost
container stands specified
7½ in. time
tall and
holds 126isoz.,
interval. Capacity decisions are important because capacity a bit lesson
a ceiling than 1 gal. Rust-resistant
output and a majorand moisture-
determi- SUMMARY
real-world applications, provide
nant of operating costs.
resistant, the plastic bucket gives users a new way to mix, brush,
and store paint.
examples of production/
Three key inputs to capacity planning are the kind ofA capacity
hollow handlethatonwill
one be
sideneeded,
makes it how muchtowill
comfortable pourbeand
needed, and when it will be needed. Accurate forecasts areA critical
carry. convenient,to the planning
snap-in process.
pour spout neatly pours paint into
operations issues, and offer
The capacity planning decision is one of the most a trayimportant decisions
with no dripping but canthat managers
be removed make.toThe
if desired, allow
capacity decision is strategic and long term in nature,a wide brushinvolving
often to be dipped into the 5¾-in.-diameter
a significant mouth. Cap-
initial investment
further elaboration of the text
of capital. Capacity planning is particularly difficultping the container
in cases whereis returns
a large, twist-off lid that over
will accrue requires no tools to
a lengthy
material. They also provide a
period, and risk is a major consideration.
open or close. Molded with two lugs for a snug-finger-tight clos-
ing, the threaded cap provides a tight seal to extend the shelf life
Jerry Simon
A variety of factors can interfere with effective capacity, so effective capacity is usually somewhat
basis for classroom discussion of unused paint.
less than design capacity. These factors include facilitiesWhiledesign and layout,
the lid requires no tools human
to access,factors,
the snap-offproduct/
carry bail
in the bottom that mates with the lid’s top ring. “The new design
allows for one additional shelf facing on an eight-foot rack or
and generate interest in the
service design, equipment failures, scheduling problems,
can be
and quality
is assembled on theconsiderations.
container in a “locked-down position” and
pulled up after purchase for toting or hanging on relate
a ladder.
shelf area.”
Capacity planning involves long-term and short-term considerations. Long-term considerations The labels are applied automatically, quite a feat, considering
subject matter. Many of the Large, nearly 4½-inch-tall label panels allow glossy front and back
to the overall level of capacity; short-term considerations relate to variations in capacity requirements their complexity, size, and the hollow handle they likely encounter
labels printed and UV-coated to wrap around the can’s rounded during application. MacDonald admits, “Label application was a
due to seasonal, random, and irregular fluctuations corners,
end-of-chapter readings include in demand. Ideally, display.
for an impressive capacity will match demand.
challenge. We had to modify the bottle several times to accom-
Jim MacDonald, co-designer of the Twist & Pour and a packag- modate the labeling machinery available.”
assignment questions. ing engineer at Cleveland-based Sherwin-Williams, tells Packaging
Digest that the space-efficient, square shape is easier to ship and Source: “Dutch Boy Brushes Up Its Paints,” Packaging Digest, October 2002.
easier to stack in stores. It can also be nested, courtesy of a recess Copyright ©2002 Reed Business Information. Used with permission.
4.2 IDEA GENERATION

ste3889X_ch05_190-221.indd 213 08/01/19 07:22 AM
LO4.5 List some of the
main sources of design Ideas for new or redesigned products or services can come from a variety of sources, includ-
ideas. ing customers, the supply chain, competitors, employees, and research. Customer input can
come from surveys, focus groups, complaints, and unsolicited suggestions for improvement.
xiv Input from suppliers, distributors, and employees can be obtained from interviews, direct or
indirect suggestions, and complaints.
One of the strongest motivators for new and improved products or services is competi-
tors’ products and services. By studying a competitor’s products or services and how the
competitor operates (pricing policies, return policies, warranties, location strategies, etc.), an
organization can glean many ideas. Beyond that, some companies purchase a competitor’s
product and then carefully dismantle and inspect it, searching for ways to improve their
Reverse engineering Dis- own product. This is called reverse engineering. Automotive companies use this tactic in
mantling and inspecting a developing new models. They examine competitors’ vehicles, searching for best-in-class
competitor’s product to dis- components (e.g., best hood release, best dashboard display, best door handle). Sometimes,
ste3889X_fm_i-1.indd xiv cover product improvements. reverse engineering can enable a company to leapfrog the competition by developing an even03:49 PM
11/29/19
better product. However, some forms of reverse engineering are illegal under the Digital
Technique Formula Definitions
Ft = a + bt
where
n∑ ty − ∑ t∑ y a = y intercept
Linear trend forecast b = ______________
n∑ t 2 − (∑ t 2) b = Slope
∑ y − b∑ t
a = ______ or ¯y − b¯t
n
Trend-adjusted TAF t+1 = S t + T t t = Current period

forecast where TAF t+1 = Trend-adjusted forecast for
S t = TAF t + α( A t − TAF t) next period
T t = T t−1 + β( TAF t − TAF t−1 − T t−1) S = Previous forecast plus
smoothed error
T = Trend component
Y c = a + bx y c = Computed value of dependent

where variable
n (∑ xy ) − (∑ x) (∑ y) x = Predictor (independent) variable
Linear regression b = _____________________
n(∑ x 2) − (∑ x 2) b = Slope of the line
forecast
a = Value of y c when x = 0
∑ y − b∑ x
END-OF-CHAPTER RESOURCES a = ______ or ¯y − b¯x

n
√
________
Standard error of ∑ (y − y c) 2
_______
S e = Standard error of estimate
estimate Se = y = y value of each data point
n−2
n = Number of data points
For student study and review, the following items are

t
Tracking signal ∑e
TS t = _____
MAD t
_____
√ √
Control limits UCL = 0 + z MSE
_____ MSE = standard deviation
provided at the end of each chapter or chapter supplement.

_____ z = Number of standard deviations;
√ LCL = 0 − z MSE
2 and 3 are typical values
Microsoft
Summaries and Key Points

1. Demand forecasts are essential inputs for many business decisions. They help managers decide
how much supply or capacity will be needed to match expected demand, both within the organiza- KEY POINTS
tion and in the supply chain.
2. Because of random variations in demand, it is likely that the forecast will not be perfect, so man-
3.
agers need to be prepared to deal with forecast errors.
Other, nonrandom factors might also be present, so it is necessary to monitor forecast errors to
Chapters contain summaries that provide an
4.
check for nonrandom patterns in forecast errors.
It is important to choose a forecasting technique that is cost-effective and one that minimizes fore-
Rev.Confirming Pages overview of the material covered, and the
cast error.
key points of the chapter are emphasized in a
associative model, 80 judgmental forecasts, 80 regression, 98
bias, 109
centered moving average, 96
least squares line, 99
linear trend equation, 89
seasonality, 82
seasonal relative, 94
KEY TERMS
separate section.
control chart, 107 Chapter One deviation
mean absolute Introduction to Operations Management
seasonal variations, 93 37
correlation, 102 (MAD), 106 standard error of estimate, 100 Confirming Pages
cycle, 82 mean absolute percent error time series, 82
7. What are models
Delphi
8. Why error,
method,and
is the
81why are they important?
(MAPE), 106
degree of customization an mean
105 important consideration
squared
time-series forecasts, 80
in process
error (MSE), 106 planning?
tracking signal, 109
Key Terms
9. Listexponential smoothing,
the trade-offs 87consider for
you would moving
each average,
of these 84
decisions: trend, 82
focus forecasting, 88 naive forecast, 82
a. Driving your own car versus public transportation.
forecast, 76 predictor variables, 98
trend-adjusted exponential
smoothing, 92
Key
Chapter Five
terms are highlighted in the text and then217
Strategic Capacity Planning for Products and Services
b. irregular
Buying a variation,
computer 82
now versus waiting for an
random improved82model.
variations, weighted average, 86
c. Buying a new car versus buying a used car. repeated in the margin with brief definitions for
5. Give some examples of building flexibility into system design.
d. Speaking up in class versus waiting to get called on by the instructor.
e. A small business owner having a website versus newspaper advertising. emphasis.
6. Why is it important to adopt a big-picture They
approach to capacity are listed at the end of each
planning?
Taking Stock and Critical

10. Describe each of these systems: craft production, mass production, and lean production.
11. Why might some workers prefer not to work in a lean production environment?
7. What is meant by “capacity in chunks,” and why is that a factor in capacity planning?
8. What kinds of capacity problems do chapter
many elementary(along
and secondarywith page experi-
schools periodically references) to aid in
Thinking Exercises
12. Discuss the importance of each of the following:
a. ste3889X_ch03_074-137.indd
Matching supply and demand 117
ence? What are some alternatives to deal with those problems?
09/25/19 10:58 AM
reviewing.
9. How can a systems approach to capacity planning be useful?
10. How do capacity decisions influence productivity?
These activities encourage analytical thinking
b. Managing a supply chain
13. List and briefly explain the four basic sources of variation, and explain why it is important for
11. Why is it important to match process capabilities with product requirements?
12. Briefly discuss how uncertainty affects capacity decisions.
managers to be able to effectively deal with variation.
and14.help broaden
Why do people conceptual
do things that are unethical? understanding. 13. Discuss the importance of capacity planning in deciding on the number of police officers or fire
trucks to have on duty at a given time.
A q15.
uestion related
Explain the term value-added.
to ethics
16. Discuss the various impacts of outsourcing.
is included in the Discussion and Review Questions
14. Why is capacity planning one of the most critical decisions a manager has to make?
15. Why is capacity planning for services more challenging than it is for goods production?
Critical Thinking Exercises.
17. Discuss the term sustainability, and its relevance for business organizations.
16. What are some capacity measures for each of the following?
a. University Each chapter and each supplement have a
b. Hospital
This item appears at the end of each chapter. It is intended to focus your attention on three key
issues for business organizations in general, and operations management in particular. Those issues TAKING c.STOCK
Computer repair shop list of discussion and review questions. These
d. Farm
are trade-off decisions, collaboration among various functional areas of the organization, and the
impact of technology. You will see three or more questions relating to these issues. Here is the first precede
17. What is the benefit to a business organization of havingthe
capacityproblem
measures? sets and are intended
set of questions:
1. What are trade-offs? Why is careful consideration of trade-offs important in decision making?
to serve as a student self-review or as class
1. What are the major trade-offs in capacity planning?
2. Who needs to be involved in capacityd iscussion starters.
2. Why is it important for the various functional areas of a business organization to collaborate? TAKING STOCK
planning?
3. In what general ways does technology have an impact on operations management decision 3. In what ways does technology have an impact on capacity planning?
making?
1. A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, how-
ever, is 64 repairs per day, and its actual output is 62 repairs per day. The manager would like to CRITICAL THINKING
This item also will appear in every chapter. It allows you to critically apply information you learned in increase the number of repairs per day because demand is higher than 70 repairs per day, creating a EXERCISES
the chapter to a practical situation. Here is the first set of exercises: CRITICAL THINKING
backlog of orders. Which factors would you recommend that the manager investigate? Explain your
EXERCISES
1. Many organizations offer a combination of goods and services to their customers. As you learned reasoning.
in this chapter, there are some key differences between the production of goods and the delivery of 2. Compared to manufacturing, service requirements tend to be more time dependent, location depen-
services. What are the implications of these differences relative to managing operations? dent, and volatile. In addition, service quality is often directly observable by customers. Find a
recent article in a business magazine that describes how a service organization is struggling with
2. Why is it important to match supply and demand? If a manager believes that supply and demand
one or more of these issues and make recommendations on what an organization needs to do to
will not be equal, what actions could the manager take to increase the probability of achieving a
overcome these difficulties.
match?
3. Identify four potential unethical actions or inactions related to capacity planning, and the ethical
3. One way that organizations compete is through technological innovation. However, there can be principle each violates (see Chapter 1).
downsides for both the organization and the consumer. Explain.
4. Any increase in efficiency also increases utilization. Although the upper limit on efficiency is
4. What ethical considerations are important in development of technology in general, as well as AI 100 percent, what can be done to achieve still higher levels of utilization?
(artificial intelligence)?
5. a. What would cause a businessperson to make an unethical decision?
Problem Sets
b. What are the risks of doing so?
1. Determine the utilization and efficiency for each of the following situations.
a. A loan processing operation that processes an average of 7 loans per day. The operation has a
PROBLEMS
design capacity of 10 loans per day and an effective capacity of 8 loans per day.
Each chapter includes a set of problems b. A furnace repair team that services an average of four furnaces a day if the design capacity is
six furnaces a day and the effective capacity is five furnaces a day.
for assignment. The problems have been c. Would you say that systems that have higher efficiency ratios than other systems will always
have higher utilization ratios than those other systems? Explain.
refined over many editions and are intended 2. In a job shop, effective capacity is only 50 percent of design capacity, and actual output is 80 percent
of effective output. What design capacity would be needed to achieve an actual output of eight jobs
per week?
to be challenging but doable for students.
ste3889X_ch01_002-039.indd 37 08/01/19 06:47 AM
Short answers to most of the problems

are included in Appendix A so students
can check their understanding and see ste38891_ch05_190-221.indd 217 07/12/19 04:29 PM
immediately how they are progressing.
xv
ste3889X_fm_i-1.indd xv 11/29/19 03:49 PM

After the dot-com business he tried to start folded, David “Marty” Final PDF to printer
Dawkins decided to pursue his boyhood dream of owning a bike
factory. After several false starts, he finally got the small company suppliers):
up and running. The company currently assembles two models
Marty designed: the Arrow and the Dart. The company hasn’t Item Lead Time (weeks) On Hand Lot-Sizing Rule
turned a profit yet, but Marty feels that once he resolves some of Arrow 2 5 Lot-for-lot
the problems he’s having with inventory and scheduling, he can Dart 2 2 Lot-for-lot
increase productivity and reduce costs. X 1 5 Multiples of 25
At first, he ordered enough bike parts and subassemblies for
W 2* 2 Multiples of 12
four months’ worth of production. Parts were stacked all over the
place, seriously reducing work space and hampering movement F 1 10 Multiples of 30
of workers and materials. And no one knew exactly where any- K 1 3 Lot-for-lot
thing was. In Marty’s words, “It was a solid mess!” Q 1 15 Multiples of 30
He and his two partners eventually managed to work off M 1 0 Lot-for-lot
most of the inventory. They hope to avoid similar problems in the *LT = 3 weeks for orders of 36 or more units on this item
future by using a more orderly approach. Marty’s first priority is to Confirming Pages
Scheduled receipts are:
develop a materials requirement plan for upcoming periods. He
wants to assemble 15 Arrows and 10 Darts each week, to have Period 1: 20 Arrows and 18 Ws
Operations Tours them ready at the start of weeks 4 through 8. The product struc-
ture trees for the two bikes follow.
Period 2: 20 Darts and 15 Fs
As the third partner, it is your job to develop the material require-
These provide a simple “walkthrough” of an operation Arrow
Chapter Thirteen MRP and ERP
Dart ments plan. 605
for students, describing the company, its product

17. The MRP Department has a problem. Its computer
X “died”
M just as it spit W
out the following
K(2) infor- F
or service, and its Planned
mation: process of managing
order release operations.
for item J27 = 640 units in week 2. The firm has been able to
reconstruct all the information they lost except
F the master schedule for end item 565. The firm is
Companies featured include
fortunate because Wegmans
J27 is used Food
only in 565s. Given Markets,
the following productW(2)
structure tree and asso-
Q
ciated inventory status record information, determine what master schedule entry for 565 was
Morton Salt, Stickley Furniture, and Boeing.
exploded into the material requirements plan that killed the computer.
Part Number On Hand Lot Size Lead Time 565

565 0 Lot-for-lot 1 week
X43 60 Multiples of 120 1 week
X43 Y36 (2) N78
N78 0 Lot-for-lot 2 weeks
Y36 200 Lot-for-lot 1 week
OPERATIONS TOUR
J27 0 Lot-for-lot 2 weeks
J27 (4) X43 STICKLEY FURNITURE
18. Develop a material requirements plan for component H. Lead times for the end item and each compo-
nent except B are one week. The lead time forIntroduction
B is three weeks. Sixty units of A are needed at the start in New York State, two in Connecticut, one in North Carolina, and
of week 8. There are currently 15 units of B on hand and 130 of E on hand, and 50 units of H are in its furniture is sold nationally by some 120 dealers.
www.stickley.com
production and will be completed by the start of week 2. Lot-for-lot ordering will be used for all items.
AL. & J.G. Stickley was founded in 1900 by brothers Leopold and Production
George Stickley. Located just outside of Syracuse, New York, the The production facility is a large, rectangular building with a
company is a producer of fine cherry, white oak, and mahogany 30-foot ceiling. Furniture making is labor intensive, although saws,
furniture. In the 1980s, the company reintroduced the company’s sanders, and other equipment are very much a part of the pro-
B(2) original line of Cmission oak furniture, which now accounts for cess. In fact, electric costs average about $60,000 a month. The
nearly 50 percent of the company’s sales. company has its own tool room where cutting tools are sharp-
Over the years, the company experienced both good and bad ened, and replacement parts are produced as needed.
times, and at one point it employed over 200 people. However, Worker skills range from low-skilled material handlers to highly
D(2) E(2) by the
D(2)early 1970s, the business
E(4) was in disarray; there were only skilled craftsmen. For example, seven master cabinet makers han-
about 20 full-time employees, and the company was on the brink dle customized orders.
of bankruptcy. The present owners bought the ailing firm in 1974, The process (see figure below) begins with various sawing
and under their leadership, the company has prospered and grown, operations where large boards received from the lumber mills
H(3) and
K now has 1,350 H(3)employees. Stickley
K has five retail showrooms are cut into smaller sizes. The company recently purchased a
606
CASE PROMOTIONAL NOVELTIES

ste3889X_ch13_560-609.indd 606 08/08/19 09:27 AM
Promotional Novelties provides a wide range of novelty items for The company can complete final assembly of the tractor-
its corporate customers. It has just received an order for 20,000 trailers at the rate of 10,000 a week. The tractor and trailer bodies
toy tractor-trailers that will be sold by a regional filling station com- are purchased; lead time is three weeks. The wheels are the
pany as part of a holiday promotion. The order is to be shipped manager’s main concern.
at the beginning of week 8. The tree diagram shows the various The company has a sufficient supply of brackets on hand.
components of the trucks. Assembly time is one week each for tractors, trailers, and wheel
Tractor-trailer assembly. However, the wheel department can only produce
wheels at the rate of 100,000 a week. The manager plans to
use the wheel department to full capacity, starting in week 2
Tractor Trailer of the schedule, and order additional wheels from a supplier
as needed. Ordered wheels come in sets of 6,400. The lead
time for delivery from the supplier is expected to be two to
three weeks. Use lot-for-lot ordering for all items except the
Wheel Body Wheel Body purchased wheels.
assembly assembly
Questions
1. How many wheel sets should the manager order?
Wheels (6) Bracket Wheels (12) Bracket 2. When should the wheel sets be ordered?
ste3889X_ch13_560-609.indd 605 08/08/19 09:27 AM
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.
xvi
ste3889X_fm_i-1.indd xvi 11/29/19 03:49 PM

INSTRUCTOR RESOURCES
Available within Connect, instructors have access to teaching supports such as electronic files
of the ancillary materials: Solutions Manual, Instructor’s Manual, Test Bank, PowerPoint
Lecture Slides, Digital Image Library, and accompanying Excel files.
Instructor’s Manual. This manual, revised for the new edition by Tracie Lee, Idaho
State University, includes teaching notes, chapter overview, an outline for each chapter, and
solutions to the problems in the text.
Test Bank. Updated for the new edition by Leslie Sukup, Ferris State University, and
reviewed by Nancy Lambe, University of South Alabama, the Test Bank includes over
2,000 true/false, multiple-choice, and discussion questions/problems at varying levels of
difficulty. The Test Bank is available to assign within Connect, as Word files available in
the Instructor Resource Library, and through our online test generator. Instructors can orga-
nize, edit, and customize questions and answers to rapidly generate tests for paper or online
administration.
PowerPoint Lecture Slides. Revised by Avanti Sethi, University of Texas-Dallas, the

PowerPoint slides draw on the highlights of each chapter and provide an opportunity for the
instructor to emphasize the key concepts in class discussions.
Digital Image Library. All the figures in the book are included for insertion in PowerPoint
slides or for class discussion.
xvii
ste3889X_fm_i-1.indd xvii 11/29/19 03:49 PM

FOR INSTRUCTORS
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FOR STUDENTS
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ste3889X_fm_i-1.indd xix 11/29/19 03:49 PM

Note to Students
The material in this text is part of the core knowledge in your 5. Discuss the subject matter in some depth, including its
education. Consequently, you will derive considerable ben- relevance, managerial considerations, and advantages
efit from your study of operations management, regardless and limitations.
of your major. Practically speaking, operations is a course in
You will encounter a number of chapter supplements.
management.
Check with your course syllabus to determine which ones are
This book describes principles and concepts of operations
included.
management. You should be aware that many of these prin-
This book places an emphasis on problem solving. There
ciples and concepts are applicable to other aspects of your
are many examples throughout the text illustrating solutions.
professional and personal life. You can expect the benefits of
In addition, at the end of most chapters and supplements you
your study of operations management to serve you in those
will find a group of solved problems. The examples within
other areas as well.
the chapter itself serve to illustrate concepts and techniques.
Some students approach this course with apprehension, and
Too much detail at those points would be counterproductive.
perhaps even some negative feelings. It may be that they have
Yet, later on, when you begin to solve the end-of-chapter
heard that the course contains a certain amount of quantitative
problems, you will find the solved problems quite helpful.
material that they feel uncomfortable with, or that the subject
Moreover, those solved problems usually illustrate more and
matter is dreary, or that the course is about “factory manage-
different details than the problems within the chapter.
ment.” This is unfortunate, because the subject matter of this
I suggest the following approach to increase your chances
book is interesting and vital for all business students. While
of getting a good grade in the course:
it is true that some of the material is quantitative, numerous
examples, solved problems, and answers at the back of the 1. Do the class preparation exercises for each chapter if
book help with the quantitative material. As for “factory man- they are available from your instructor.
agement,” there is material on manufacturing, as well as on 2. Look over the chapter outline and learning objectives.
services. Manufacturing is important, and something that you
3. Read the chapter summary, and then skim the chapter.
should know about for a number of reasons. Look around you.
Most of the “things” you see were manufactured: cars, trucks, 4. Read the chapter and take notes.
planes, clothing, shoes, computers, books, pens and pencils, 5. Look over and try to answer some of the discussion and
desks, and cell phones. And these are just the tip of the ice- review questions.
berg. So it makes sense to know something about how these 6. Work the assigned problems, referring to the solved
things are produced. Beyond all that is the fact that manufac- problems and chapter examples as needed.
turing is largely responsible for the high standard of living
people have in industrialized countries. Note that the answers to many problems are given at the
After reading each chapter or supplement in the text, end of the book. Try to solve each problem before turning to
attending related classroom lectures, and completing assigned the answer. Remember—tests don’t come with answers.
questions and problems, you should be able to do each of the And here is one final thought: Homework is on the
following: Highway to Success, whether it relates to your courses, the
workplace, or life! So do your homework, so you can have a
1. Identify the key features of that material. successful journey!
2. Define and use terminology.
3. Solve typical problems. W.J.S.
4. Recognize applications of the concepts and techniques
covered.
xx
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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
xxi
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Contents
Preface vii 2 Competitiveness, Strategy, and

Productivity 40
1 Introduction to Operations
Introduction 42
Management 2
Competitiveness 42
Introduction 4
Mission and Strategies 44
Production of Goods Versus Providing
Readings:
Services 8
Amazon Ranks High in Customer Service 45
Why Learn About Operations Management? 10
Low Inventory Can Increase Agility 50
Career Opportunities and Professional
Operations Strategy 51
Societies 12
Implications of Organization Strategy for Operations
Process Management 13
Management 54
The Scope of Operations Management 14
Transforming Strategy into Action: The Balanced
Reading:
Scorecard 54
Why Manufacturing Matters 17
Productivity 56
Operations Management and Decision
Readings:
Making 18
Why Productivity Matters 59
Reading:
Dutch Tomato Growers’ Productivity Advantage 60
Analytics 20
Productivity Improvement 62
The Historical Evolution of Operations
Summary 62
Management 21 Key Points 63
Operations Today 24 Key Terms 63
Solved Problems 63
Reading:
Discussion and Review Questions 64
Agility Creates a Competitive Edge 26 Taking Stock 64
Key Issues for Today’s Business Operations 27 Critical Thinking Exercises 65
Problems 65
Readings:
Cases:
Sustainable Kisses 28
Home-Style Cookies 67
Diet and the Environment: Vegetarian
Hazel Revisited 68
vs. Nonvegetarian 29
“Your Garden Gloves” 69
Operations Tour:
Wegmans Food Markets 33 Girlfriend Collective 69
Summary 36 Operations Tour:
Key Points 36 The U.S. Postal Service 70
Key Terms 36 Selected Bibliography and Further Readings 73
Taking Stock 37
Critical Thinking Exercises 37 3 Forecasting 74
Case:
Introduction 76
Hazel 38
Selected Bibliography and Further Readings 38 Features Common to All Forecasts 78
Problem-Solving Guide 39 Elements of a Good Forecast 78
xxii
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Forecasting and the Supply Chain 79 Legal and Ethical Considerations 144
Steps in the Forecasting Process 79 Human Factors 145
Approaches to Forecasting 80 Cultural Factors 145
Qualitative Forecasts 80 Reading:
Forecasts Based on Time-Series Data 82 Green Tea Ice Cream? Kale Soup? 146
Associative Forecasting Techniques 98 Global Product and Service Design 146
Reading: Environmental Factors: Sustainability 146
Lilacs 104 Readings:
Forecast Accuracy 104 Kraft Foods’ Recipe for Sustainability 148
Reading: China Clamps Down on Recyclables 149
High Forecasts Can be Bad News 106 Recycle City: Maria’s Market 150
Monitoring Forecast Error 107 Other Design Considerations 151
Choosing a Forecasting Technique 111 Readings:
Using Forecast Information 112 Lego A/S in the Pink 152
Computer Software in Forecasting 113 Fast-Food Chains Adopt Mass Customization 155
Operations Strategy 113 Phases in Product Design and Development 162
Reading: Designing for Production 163
Gazing at the Crystal Ball 114 Service Design 165
Summary 115
Key Points 117
Reading:
Key Terms 117 The Challenges of Managing Services 169
Solved Problems 118 Operations Strategy 170
Summary 170
Taking Stock 125
Critical Thinking Exercises 125 Key Points 171
Problems 125 Key Terms 171
Cases: Taking Stock 172
M&L Manufacturing 136 Critical Thinking Exercises 172
Highline Financial Services, Ltd. 137 Problems 172
Selected Bibliography and Further Readings 137 Operations Tour:
High Acres Landfill 174
4 Product and Service Design 138 Selected Bibliography and Further Readings 174
Reading: SUPPLEMENT TO CHAPTER 4: Reliability 176
Design as a Business Strategy 140
Introduction 140 5 Strategic Capacity Planning for Products
Reading: and Services 190
Dutch Boy Brushes Up Its Paints 142 Introduction 191
Idea Generation 142 Reading:
Reading: Excess Capacity Can Be Bad News! 192
Vlasic’s Big Pickle Slices 143 Capacity Decisions Are Strategic 193
xxiii
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xxiv Contents
Defining and Measuring Capacity 194 Designing Process Layouts 281

Determinants of Effective Capacity 196 Summary 285
Key Points 286
Strategy Formulation 197 Key Terms 286
Forecasting Capacity Requirements 198 Solved Problems 286
Additional Challenges of Planning Service Capacity 200 Taking Stock 291
Do It In-House or Outsource It? 201 Critical Thinking Exercises 291
Problems 291
Reading: Selected Bibliography and Further Readings 298
My Compliments to the Chef, Er, Buyer 202
Developing Capacity Strategies 202 7 Work Design and Measurement 300
Constraint Management 207
Introduction 301
Evaluating Alternatives 207
Job Design 301
Quality of Work Life 305
Summary 213
Key Points 214 Methods Analysis 310
Key Terms 214 Reading:
Solved Problems 214
Discussion and Review Questions 216 Taylor’s Techniques Help UPS 311
Taking Stock 217 Motion Study 315
Critical Thinking Exercises 217
Problems 217 Work Measurement 316
Case: Operations Strategy 327
Outsourcing of Hospital Services 221 Summary 328
Key Points 328
Selected Bibliography and Further Readings 221
Key Terms 329
Solved Problems 329
SUPPLEMENT TO CHAPTER 5: Decision
Theory 222 Taking Stock 331
Problems 331
6 Process Selection and Facility Layout 244 Selected Bibliography and Further Readings 334
Introduction 246
SUPPLEMENT TO CHAPTER 7: Learning
Process Selection 246 Curves 336
Operations Tour:
Morton Salt 250
8 Location Planning and Analysis 348
Technology 252
The Need for Location Decisions 350
Readings:
Foxconn Shifts Its Focus to Automation 254 The Nature of Location Decisions 350
Global Locations 352
Zipline Drones Save Lives in Rwanda 258
Reading:
Self-Driving Vehicles 259
Coffee? 355
Process Strategy 260
General Procedure for Making Location
Strategic Resource Organization: Facilities Decisions 355
Layout 260
Identifying a Country, Region, Community, and
Reading: Site 356
A Safe Hospital Room of the Future 269
Service and Retail Locations 363
Designing Product Layouts: Line Balancing 272
Evaluating Location Alternatives 364
Reading: Summary 370
BMW’s Strategy: Flexibility 280 Key Points 370
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Contents xxv
Key Terms 371 Process Capability 443

Solved Problems 371
Discussion and Review Questions 372 Readings:
Taking Stock 372 RFID Chips Might Cut Drug Errors in
Critical Thinking Exercises 373 Hospitals 448
Problems 373
Case:
Summary 449
Hello, Walmart? 377 Key Points 450
Selected Bibliography and Further Readings 377 Key Terms 450
Solved Problems 450
9 Management of Quality 378 Discussion and Review Questions
Taking Stock 455
454
Introduction 379 Critical Thinking Exercises 455

Problems 456
The Evolution of Quality Management 380
Cases:
The Foundations of Modern Quality Management:
Toys, Inc. 462
The Gurus 381
Tiger Tools 462
Insights on Quality Management 383
Selected Bibliography and Further Readings 463
Readings:
American Fast-Food Restaurants Are Having 11 Aggregate Planning and Master
Success in China 386 Scheduling 464
Hyundai: Exceeding Expectations 389 Introduction 466
Quality and Performance Excellence Awards 391 Reading:
Quality Certification 392 Duplicate Orders Can Lead to Excess Capacity 470
Quality and the Supply Chain 393 Basic Strategies for Meeting Uneven Demand 473
Total Quality Management 394 Techniques for Aggregate Planning 476
Problem Solving and Process Improvement 398 Aggregate Planning in Services 484
Quality Tools 401 Disaggregating the Aggregate Plan 485
Operations Strategy 409 Master Scheduling 486
Summary 409
Key Points 409
The Master Scheduling Process 487
Key Terms 410 Summary 491
Solved Problem 410 Key Points 491
Discussion and Review Questions 411 Key Terms 492
Taking Stock 412 Solved Problems 493
Critical Thinking Exercises 412 Discussion and Review Questions 496
Problems 412 Taking Stock 496
Cases: Problems 496
Chick-n-Gravy Dinner Line 414 Case:
Tip Top Markets 415 Eight Glasses a Day (EGAD) 501
Selected Bibliography and Further Readings 416 Selected Bibliography and Further Readings 501
10 Quality Control 418 12 Inventory Management 502

Introduction 419 Introduction 503
Inspection 420 Reading:
Reading: $$$ 504
Falsified Inspection Reports Create Major Risks The Nature and Importance of Inventories 504
and Job Losses 424 Requirements for Effective Inventory
Statistical Process Control 425 Management 507
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Another random document with
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The Project Gutenberg eBook of Rogues and
vagabonds
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Title: Rogues and vagabonds
Author: Compton MacKenzie
Release date: October 10, 2023 [eBook #71848]

Most recently updated: October 29, 2023
Language: English
Original publication: New York: George H. Doran Company,

1927
Credits: Steve Mattern, Quentin Campbell, and the Online

Distributed Proofreading Team at https://www.pgdp.net
(This file was produced from images generously made
available by The Internet Archive)
*** START OF THE PROJECT GUTENBERG EBOOK ROGUES

AND VAGABONDS ***
Transcriber’s Note
See end of this document for details of corrections and other changes.
ROGUES AND VAGABONDS
COMPTON MACKENZIE
By COMPTON MACKENZIE
Rogues and Vagabonds
Fairy Gold
Coral
Santa Claus in Summer
The Heavenly Ladder
The Old Men of the Sea
The Altar Steps
Parson’s Progress
Rich Relations
The Seven Ages of Women
Sylvia Scarlett
Poor Relations
Sylvia and Michael
The Vanity Girl
Carnival
Plashers Mead
Sinister Street
Youth’s Encounter
The Passionate Elopement
By
COMPTON MACKENZIE
GEORGE H. DORAN COMPANY

ON MURRAY HILL : : NEW YORK
COPYRIGHT, 1927,
BY GEORGE H. DORAN COMPANY

—B—
PRINTED IN THE UNITED STATES OF AMERICA
To A. H.
CONTENTS
CHAPTER PAGE
I Neptune’s Grotto 11
II The Factory 26
III The Proposal 36
IV Married Life 43
V Tintacks in Brigham 55
VI The Diorama 74
VII True Love 83
VIII Rogues and Vagabonds 96
IX A Merry Christmas 110
X The Pantomime 121
XI The End of the Harlequinade 127
XII Looking for Work 135
XIII Lebanon House 144
XIV Letizia the First 163
XV The Tunnel 172
XVI Blackboy Passage 182
XVII The Two Roads 195
XVIII Triennial 215
XIX Nancy’s Contralto 222
XX Southward 232
XXI Classic Grief 240
XXII Sorrento 248
XXIII Cœur de Lion 267
XXIV Decennial 274
XXV The Common Chord 286
CHAPTER I NEPTUNE’S GROTTO
SUPERIOR
FIRE WORKS
at the
NEPTUNE’S GROTTO
Tavern and Tea Gardens
PIMLICO
on Thursday Evening, 20th, July, 1829.
By
MADAME ORIANO
The Celebrated Pyrotechnic to HIS MAJESTY
The Exhibition will include
A Grand Display of various kinds of
WATER FIRE WORKS

On the Grosvenor Basin.
ORDER OF FIRING
1. A Battery of Maroons, or imitation Cannon
2. A Bengal Light
3. Sky Rockets
4. A Saxon Wheel
5. Tourbillions
6. Phenomenon Box and Mime
7. Line Rockets
8. A Metamorphose with alternate changes, and a
beautiful display of Chinese Lattice Work
9. Sky Rockets
10. Horizontal Wheel with Roman Candles and Mine
11. Tourbillions
12. A regulating piece in two mutations, displaying a
Vertical Wheel changing to five Vertical Wheels and
a figure piece in Straw and brilliant fires
13. Grand Battery of Roman Candles & Italian
Streamers
14. A regulating piece in four mutations displaying a
Vertical Wheel changing to a Pyramid of Wheels, a
Brilliant Sun, and a superb shower of fire
15. Sky rockets
GRAND FINALE
MADEMOISELLE LETIZIA ORIANO
Will with a temerity hitherto unknown in the blazing
annals of her profession slide down an inclined rope 350
feet high, erected on the firework platform, wreathed in
Fizgigs and Fiery Serpents and accompanied by the
awful thunder of a Battery of Maroons.
Admission 1s each
Gardens open at half-past seven, and commences at

Nine o’clock precisely.
“Neptune’s Grotto” was one of the many pleasure-gardens that in

the days when the Londoner was comparatively a free man helped
to amuse his leisure. Yet even by the ninth year of the reign of King
George IV most of the famous resorts of the preceding century had
already been built over, and now that Lord Grosvenor was
developing the Manor of Ebury (Buckingham Palace appearing fixed
as the metropolitan abode of the Sovereign) “Neptune’s Grotto” was
likely to vanish soon and leave no more trace of its sparkling life than
the smoke of a spent rocket. Indeed, change was already menacing.
For two years Cubitt, the famous builder, had been filling up the
swampy land between Vauxhall Bridge Road and Ranelagh with the
soil he had excavated in the construction of St. Katharine’s Docks.
His cadaverous grey plastered terraces were creeping nearer every
week. Willow Walk, a low-lying footpath between the cuts of the
Chelsea Water Works, in a cottage hard by which Jerry Abershaw
and Gentleman James Maclaine the highwaymen once lodged,
would soon be turned into the haggard Warwick Street we know to-
day. The last osier bed would ultimately be replaced by the greasy
aucubas of Eccleston Square, and Lupus Street would lie heavy on
ancient gardens. The turnpike at Ebury Bridge had been gone these
four years; the old country road to Chelsea would within a lustrum be
lined by houses on either side and become Buckingham Palace
Road. Even the great basin of the Grosvenor Canal would run dry at
last and breed from its mud Victoria Station.
However, in 1829 “Neptune’s Grotto” still remained much as it had
been for over a century. The house of mellow red brick was covered
with lattice-work, which on this warm July evening was all fragrant
and ablow with climbing roses. Only the box trees had changed the
pattern of their topiary. In place of earlier warriors or statesmen you
would have found Lord Nelson and the Duke of Wellington at this
date, the general more freshly trimmed than the admiral, but likely to
go unpruned in the years of his unpopularity that were coming. His
sacred Majesty King George III had been allowed to sprout into the
rounder bulk of his sacred Majesty King George IV, but the new
portrait was hardly more attractive than the blowsy original. The
garden paths were bordered with stocks and hollyhocks. There were
bowling-greens and fishponds, and a dark alley in emulation of the
notorious dark alley of Vauxhall. Most of these amenities, however,
had been made familiar by a score of other pleasure-gardens all
over London. What gave “Neptune’s Grotto” its peculiar charm was
the wide green lawn running down to the edge of the great reservoir.
In the middle of this was the grotto itself, under the ferny arches of
which an orchestra of Tritons languorously invited the little world of
pleasure to the waltz, or more energetically commanded it to the
gallopade. The firework platform was built out over the water on
piles; and the lawn was surrounded on three sides by small alcoves
lined with oyster shells, in some of which the lightest footstep on a
concealed mechanism would cause to spring up a dolphin, or a
mermaid, a harlequin or a Mother Shipton, startling intruders for the
maiden who first encountered them, so startling that she would
usually fling herself into the arms of the beau in escort and require to
be restored with various liquors much to the satisfaction of Mr.
Seedwell, the owner of the gardens.
High tortoiseshell combs and full curled hair, wide skirts of Gros de
Naples flounced and pinked and scalloped and fluted, white
stockings and slippers of yellow prunella, Leghorn hats of
transparent crape bound with lavender sarsenet or puffed with small
bouquets of marabout, bonnets of jonquil-yellow with waving ostrich
plumes, bonnets of marshmallow-rose with ribbons of lilac and
hortensia floating loose, double Vandyke collars of Indian muslin,
grass-green parasols and purple reticules, leg-of-mutton sleeves and
satin roulades, pelisses and pèlerines most fashionably of
camelopard-yellow, ivory shoulders, Canezon spencers and gauze
capotes, fichus of ethereal-blue barège, laughter and whispers and
murmurs and music (ah, yes, no doubt and plenty of simpers too),
where now trains thunder past filled with jaded suburbans, whose
faces peep from the windows as their owners wonder if the new film
at the picture-theatre will be worth the trouble of visiting after tea in
our modish contemporary shades of nude, French nude, sunburn,
and flesh. Would that Stephenson had never cursed humanity with
his steam-engine, and would that this tale might never creep nearer
to the present than that July night of 1829! Alas, it has more to do
with the grandchildren and great-grandchildren of those who fluttered
out like moths in that summer dusk to watch Madame Oriano’s
fireworks; and these at whom you gaze for the moment are but
creatures in a prologue who will all be ghosts long before the last
page is written.
However, here come those ghosts, still very much alive and
shilling in hand, some from Knightsbridge, some from Chelsea, some
from Westminster. “Strombolo House,” which used to charge half-a-
crown for its fireworks, so famous were they, is closed. To be sure
the “Monster” is still open, but there are no fireworks in the
entertainment there to-night; a performing bear is all that the
“Monster” can offer to-night. The “Orange Tea Gardens” are gone for
good: St. Barnabas’ Pimlico, will occupy their site, and on it cause as
much religious rowdiness in another twenty years as ever there was
of secular rowdiness in the past. “Jenny’s Whim” hard by the old
turnpike has already been covered with builder Cubitt’s beastly
foundations. There is no longer much competition with “Neptune’s
Grotto” in the manor of Ebury. A few pause in Vauxhall Bridge Road
when they see the hackney-coaches filled with merry parties bound
for the most famous gardens of all; but they decide to visit them
another evening, and they cross the road to Willow Walk, where one
remembers seeing Jerry Abershaw’s body swinging from the gibbet
on Putney Common and that scarcely thirty years ago, and another
marvels at the way the new houses are springing up all round. Some
shake their heads over Reform, but most of them whisper of
pleasure and of love while ghostly moths spin beside the path, and
the bats are seen hawking against the luminous west and the dog-
star which was glimmering long before his fellows is already dancing
like a diamond in the south.
While the public was strolling on its way to “Neptune’s Grotto,”
within the gardens themselves Mr. Seedwell, the proprietor, and
Madame Oriano made a final inspection of the firework platform.
“You think she can do it?” he was saying.
“Offa coursa she can do it,” Madame replied sharply.
Mr. Seedwell shook his head in grave doubt. Weighing eighteen
stone and a bit over he found it hard to put himself in Mademoiselle
Letizia’s place.
“I don’t want an accident,” he explained. “The magistrates are only
too glad of an excuse to close us down these days.”
“Dere willa not be no accident,” Madame Oriano assured him.
And Mr. Seedwell, looking at the raven-haired and raven-beaked
and raven-eyed woman beside him, took her word for it and went off
to see that all was ready inside the house for the entertainment of his
guests.
Madame Oriano squeezed a handful of her yellow satin gown.
“Bagnato!”[1] she murmured to herself. Then looking across to one
of the alcoves she called out in a shrill harsh voice, “Caleb! Caleb
Fuller!”
[1] Wet.
A beetle could not have left his carapace more unwillingly than
Caleb Fuller that alcove. He was a young man—certainly not more
than twenty-five, perhaps not as much—whose lumpish and pasty
face suggested at first an extreme dulness of mind until one looked a
little closer and perceived a pair of glittering granite-grey eyes that
animated the whole countenance with an expression that passed
beyond cunning and touched intelligence. Beside the dragon-fly
vividness of his employer he appeared, as he shambled across the
lawn to hear what she wanted of him, like an awkward underground
insect, with his turgid rump and thin legs in tight pantaloons and his
ill-fitting tail-coat of rusty black.
“Dissa English cleemat non è possibile,” Madame shrilled.
“Everyting willa be wet before we beginna to fire.”
“It’s the heavy dew,” said Caleb.
“Oh, diavolo! What do it matter which it is, if de fireworks will alla
be—how you say—spilt?”
“Spoilt,” he corrected gloomily.
“Che lingua di animali, questa English linguage! Where issa John
Gumm?”
“In the tap-room,” Caleb informed her.
“Drinking! Drinking,” she shrilled. “Why you don’ta to keep him
notta to drink before we are finished?”
John Gumm who was Madame’s chief firer had already imperilled
by his habits several of her performances.
“Somebody musta go and putta clothes on de fireworks. Non
voglio che abbiamo un fiasco,[2] I don’ta wish it. You hear me,
Caleb?”
[2] “I do not want us to have a fiasco.”
Caleb was used to these outbursts of nervous anxiety before

every display, and on most evenings he would have humoured
Madame by bullying the various assistants and have enjoyed giving
such an exhibition of his authority. But this evening he would not
have been sorry to see the damp air make the whole display such a
fiasco as Madame feared, for he bitterly resented the public
appearance of Letizia Oriano, not so much for the danger of the
proposed feat, but for the gratification the sight of her shapely legs
would afford the crowd. In fact when Madame had summoned him to
her side, he was actually engaged in a bitter argument with Letizia
herself and had even gone so far as to beg her to defy her mother
and refuse to make the fire-clad descent.
“There won’t be enough dew to prevent the firing,” he argued.
“And more’s the pity,” he added, gathering boldness as jealousy
began once more to rack him. “More’s the pity, I say, when you’re
letting your only child expose her—expose herself to danger.” He
managed to gulp back the words he just lacked the courage to fling
at her, and though his heart beat “Jezebel! Jezebel!” he dared not
say it out.
“Dere is nottings dangerous,” she snapped. “She has walked the
slacka rope and the tighta rope since she was a bambina. Her fazer
has learnt her to do it.”
Caleb groaned within himself. Letizia’s father was as mythical and
as many-sided as Proteus. Italian prince, English nobleman, play-
actor, ballet-master, acrobat, with as many aliases as a thief, he was
whatever Madame chose he should be to suit her immediate

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MAJOR STUDY AND LEARNING FEATURES

A number of key features in this text have been specifically

Examples with Solutions

Determining a Regression Equation EXAMPLE 8

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competitiveness, 42 mission statement, 44 quality-based strategies, 52

Solved Problems goals, 44

At the end of chapters

Labor productivity = ________________ = ________________________ Solution

(1) (2) (3) (2) – (3)

Within each chapter, you will find the following elements

material. The learning objectives are also Rev.Confirming Pages

included next to the specific material in the

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Chapter Outlines Opening Vignettes

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Figures and Photos

illustrations, more than any other Planning

text in the field, are included and all Product and

are color coded with ­pedagogical Rev.Confirming Pages

understanding concepts. Technological Work

A major key to Apple’s continued

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5.12 OPERATIONS STRATEGY Operations Strategies

Readings is next to impossible to mess up a painting project.

4.2 IDEA GENERATION

Trend-adjusted TAF t+1 = S t + T t t = Current period

Y c = a + bx y c = Computed value of dependent

END-OF-CHAPTER RESOURCES a = ______ or ¯y − b¯x

For student study and review, the following items are

­provided at the end of each chapter or chapter supplement.

Summaries and Key Points

Taking Stock and Critical

Short answers to most of the problems

­immediately how they are progressing.

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for students, describing the company, its product

Part Number On Hand Lot Size Lead Time 565

CASE PROMOTIONAL NOVELTIES

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PowerPoint Lecture Slides. Revised by Avanti Sethi, University of Texas-Dallas, the

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You’re in the driver’s seat.

They’ll thank you for it.

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Labor productivity = = ________ Solution

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are color coded with pedagogical Rev.Confirming Pages

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provided at the end of each chapter or chapter supplement.

immediately how they are progressing.

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