Operations Engineering and Management: Concepts, Analytics and Principles for Improvement

by Seyed Iravani

Overview

Discover how to apply engineering thinking and data analytics to business operations

This comprehensive textbook shows readers how to develop their engineering thinking and analytics to support making strategic and tactical decisions in managing and control of operations systems and supply chains. The book is created in a modular fashion so that sections and chapters can stand alone and be used within operations courses across the spectrum.

Operations Engineering and Management: Concepts, Analytics and Principles for Improvement is based on the author’s successful classes in both business and engineering. The book presents concepts and principles of operations management, with a strong emphasis on analytics and a sharp focus on improving operations. You will explore both the engineering approach to operations (e.g., analytics and engineering thinking) and the classic management approach.

• Focuses on teaching and developing strong problem-solving analytics skills
• Each section is designed to stand alone and can be used in a wide variety of courses
• Written by an operations management and engineering expert

Product Details

ISBN-13:	9781260461848
Publisher:	McGraw Hill LLC
Publication date:	10/16/2020
Sold by:	Barnes & Noble
Format:	eBook
Pages:	704
File size:	52 MB
Note:	This product may take a few minutes to download.

About the Author

Seyed M.R. Iravani, Ph.D., is a professor of industrial engineering and management sciences at the McCormick School of Engineering and Professor of Operations Management (Courtesy) at the Kellogg School of Management at Northwestern University. He received his B.S. and M. S. in Industrial and System Engineering at the Iran University of Science and Technology, and his Ph. D. in Industrial Engineering at the University of Toronto.

Table of Contents

Preface

CHAPTER 1: Operations Strategy
1.0 Introduction
1.1 Operations Strategy Decisions
1.2 Automation Technology
1.3 Information Technology
1.4 Summary
Discussion Questions

CHAPTER 2: Process-Flow Analysis of Operations
2.0 Introduction
2.1 Process-Flow Analysis Framework
2.2 Throughput
2.3 Inventory
2.4 Continuous Approximation of Inventory Curves
2.5 Flow Time
2.6 Little’s Law: Relating the Averages
2.7 Inventory Turn
2.8 Utilization
2.9 Quality
2.10 Productivity
2.11 Summary
Discussion Questions
Problems

CHAPTER 3: Forecasting
3.0 Introduction
3.1 Modeling Demand
3.2 Forecasting
3.3 Principles of Forecasting
3.4 Forecasting Methods
3.5 Qualitative Forecasting Methods
3.6 Types of Time Series
3.7 Time Series Forecasting Framework
3.8 Forecasting Stationary Time Series
3.9 Forecasting Time Series with Trend
3.10 Forecasting Seasonal Demand
3.11 Forecasting Cyclic Time Series
3.12 Monitoring and Controlling Forecasts
3.13 Forecasting Methods and Demand Distribution
3.14 Summary
Discussion Questions
Problems
S.3 Online Supplement
S.3.1 Winters’ Additive Model
S.3.2 Causal Forecasting
Problems

CHAPTER 4: Capacity Concepts and Measures
4.0 Introduction
4.1 What Is Capacity of a Process?
4.2 Theoretical and Effective Process Times
4.3 Theoretical and Effective Capacities
4.4 Six Points to Remember about Effective Capacity
4.5 Capacity of a Single Resource
4.6 Capacity of a Resource Pool
4.7 Capacity of a Process with a Single Product
4.8 Capacity of a Multi-Stage Process with Single Product
4.9 Capacity of a Process with Multiple Products and a Single Resource
4.10 Capacity of a Process with Multiple Products and Multiple Resources
4.11 Capacity of Processes with Yield Loss
4.12 Summary
Discussion Questions
Problems

CHAPTER 5: Variability
5.0 Introduction
5.1 What Is Variability?
5.2 Impact of Variability on Process Performance
5.3 Measuring Variability
5.4 Variability in Demand
5.5 Measuring Variability in Demand
5.6 Reducing Variability in Demand

5.7 Variability in Process Times
5.8 Variability in Flows
5.9 Summary
Discussion Questions
Problems

CHAPTER 6: Throughput Improvement
6.0 Introduction
6.1 Throughput, Capacity, and Demand
6.2 Throughput Loss
6.3 Improving Throughput of a Process
6.4 Improving Throughput of Demand-Constrained Processes
6.5 Improving Throughput of Capacity-Constrained Processes
6.6 Improving Throughput at Easy Mortgage
6.7 Summary
Discussion Questions
Problems

CHAPTER 7: Fundamentals of Flow Time Analysis
7.0 Introduction
7.1 Why Do Waiting Lines Exist?
7.2 Stability and Safety Capacity
7.3 Queueing Theory and Flow Time Measures
7.4 Elements of Queueing Systems
7.5 Single-Stage Processes with Infinite Buffer
7.6 Single-Stage Processes with Limited Buffer
7.7 Flow Time Service Levels
7.8 Summary
Discussion Questions
Problems
S.7 Online Supplement
S.7.1 Service Levels in Single-Stage Processes with Limited Buffer
S.7.2 Flow Time Cost Model
S.7.3 Flow Times in Multi-Stage Processes
Problems

CHAPTER 8: Flow Time Improvement
8.0 Introduction
8.1 Increasing Capacity
8.2 Reducing Variability in Demand and Process Time
8.3 Synchronizing Capacity with Demand
8.4 Priority versus FCFS
8.5 Economies of Scale and Vertical Pooling
8.6 Horizontal Pooling and Flow Times
8.7 Reducing Buffer Size to Block Arrivals
8.8 Redesigning Process Flow
8.9 Changing Batch Size and Eliminating Setups
8.10 Redesigning Buffers
8.11 Customer Psychology and Flow Times
8.12 Summary
Discussion Questions
Problems
S.8 Online Supplement
S.8.1 Finding Optimal Batch Size in Single-Stage Processes
Problems

CHAPTER 9: Inventory Management for Deterministic Demand
9.0 Introduction
9.1 Types of Inventory
9.2 Why Do Firms Keep Inventory?
9.3 A Basic Inventory Model
9.4 Costs of Inventory
9.5 Demand
9.6 Replenishment Lead Time
9.7 Goals of Inventory Management
9.8 Continuous Review Systems and (Q; R) Policies
9.9 Economic Order Quantity (EOQ)
9.10 Robustness of the EOQ Model
9.11 Economic Order Quantity with Quantity Discount
9.12 Economic Production Quantity
9.13 Summary
Discussion Questions
Problems
S.9 Online Supplement
S.9.1 Workforce Training Scheduling with EOQ Model
S.9.2 Transportation Planning with EOQ Model
S.9.3 Trade Promotion
Problems

CHAPTER 10: Inventory Management for Stochastic Demand
10.0 Introduction
10.1 Single-Period Inventory Problems with Stochastic Demand
10.2 Multi-Period Inventory Problems
10.3 Continuous Review Multi-Period Inventory Systems and (Q; R) Policy
10.4 Minimizing Cost in (Q; R) Systems with Backorders
10.5 Minimizing Cost in (Q; R) Systems with Lost Sales
10.6 Setting Service Levels
10.7 Periodic Review of Multi-Period Inventory Systems
10.8 Lead Time Variability
10.9 Trade-off between Costs and Service Levels
10.10 Summary
Discussion Questions
Problems

S.10 Online Supplement
S.10.1 Applications of Newsvendor Problem
S.10.2 Optimal (Q*, R*) in Systems with Costs per Backordered Demand per Unit Time
Problems

CHAPTER 11: Inventory Improvement
11.0 Introduction
11.1 Pareto Your Inventory—The ABC Analysis
11.2 Avoiding Ad Hoc Decisions and Using Analytics
11.3 Reducing Order Setup Costs
11.4 Reducing Length of the Period in Periodic Review Systems
11.5 Reducing Mean and Variability of Lead Time
11.6 Aggregate Demand—Inventory Pooling
11.7 Aggregate Demand—Centralized Distribution System
11.8 Other Strategies for Aggregating Demand
11.9 Reducing Bullwhip Effect
11.10 Improving Coordination in Supply Chains
11.11 Centralized Control and Vendor-Managed Inventory
11.12 Summary
Discussion Questions
Problems

CHAPTER 12: Aggregate Planning
12.0 Introduction
12.1 Adjusting Demand
12.2 Adjusting Supply
12.3 Goals of Aggregate Planning
12.4 Aggregate Unit of Production
12.5 Aggregate Resources
12.6 Aggregate Planning—Single-Period with Multiple Resources
12.7 Aggregate Planning for Multi-Period Problems
12.8 Summary
Discussion Questions
Problems

CHAPTER 13: Operations Scheduling
13.0 Introduction
13.1 What Is Operations Scheduling?
13.2 Goals of Scheduling
13.3 Operations Scheduling in Flow-Line Processes
13.4 Operations Scheduling in Job Shop and Batch Processes
13.5 Material Requirement Planning (MRP)
13.6 Loading
13.7 Detailed Scheduling
13.8 Operations Scheduling in Project Processes
13.9 Workforce Scheduling
13.10 Summary
Discussion Questions
Problems
S.13 Online Supplement
S.13.1 Operations Scheduling in Continuous-Flow Processes
S.13.2 Assembly Line Balancing
S.13.3 Sequencing for Single Resource—Minimizing Total Weighted Tardiness
S.13.4 Sequencing for Single Resource—Minimizing Weighted Number of Tardy Jobs
Problems

CHAPTER 14: Flexible Operations
14.0 Introduction
14.1 Flexible Resources
14.2 Flexible Resources and Process Capacity
14.3 Flexible Resources and Variability
14.4 Flexible Resources and Control Policy
14.5 Computing Capacity for Processes with Flexible Resources
14.6 Chain Resource Flexibility Design
14.7 Bucket Brigade Lines
14.8 Postponement
14.9 Enablers of Postponement
14.10 Summary
Discussion Questions
Problems
S.14 Online Supplement
S.14.1 Resource Flexibility Design to Achieve Maximum Capacity
S.14.2 Achieving Target Capacity with Minimum Flexibility

CHAPTER 15: Lean Operations
15.0 Introduction
15.1 A Bit of History
15.2 TPS—A Customer-Focused Process
15.3 Goals of Lean Operations
15.4 Lean Tool 1—Variability Reduction
15.5 Lean Tool 2—Setup Time and Cost Reduction; the SMED
15.6 Lean Tool 3—Batch Size Reduction and One-Piece Flow
15.7 Lean Tool 4—Flexible Resource
15.8 Lean Tool 5—Cellular Layout
15.9 Lean Tool 6—Pull Production
15.10 Lean Tool 7—Quality at the Source
15.11 Lean Tool 8—Total Productive Maintenance
15.12 Lean Tool 9—Process Standardization
15.13 Lean Tool 10—Leveling Production and Schedules (Heijunka)

15.14 Lean Tool 11—Continuous Improvement and Kaizen
15.15 Lean Tool 12—Value Stream Mapping
15.16 Lean Tool 13—Visual Workplace
15.17 Lean Tool 14—Employee Empowerment
15.18 Lean Tool 15—Supplier Partnership
15.19 Lean Operations in Service Industry
15.20 Summary
Discussion Questions
Problems
S.15 Online Supplement
S.15.1 Implementing Pull—Dual Kanban System
S.15.2 Implementing Pull—Conwip Systems
Problems

CHAPTER 16: Quality Management and Control
16.0 Introduction
16.1 Customer’s Perspective of Quality
16.2 Producer’s Perspective of Quality
16.3 A Bit of History
16.4 Process Perspective of Quality
16.5 Variability in the Output of a Process
16.6 Statistical Process Control
16.7 Statistical Process Control (SPC) Charts
16.8 Variables and Attributes Control Charts
16.9 The Two Phases of Statistical Process Control
16.10 Variables Control Charts
16.11 Attributes Control Charts
16.12 Sample Size in Control Charts
16.13 Summary
Discussion Questions
Problems
S.16 Online Supplement
S.16.1 The X̅ and s Charts
S.16.2 The X and MR Charts
S.16.3 The p Chart
S.16.4 The u Chart
Problems

CHAPTER 17: Quality Improvement and Six Sigma
17.0 Introduction
17.1 Quality Improvement—Lessons Learned
17.2 Process Capability—An Essential Metric for Quality Improvement
17.3 Quality Improvement—The Six Sigma Approach
17.4 Striving for Six Sigma Capability
17.5 Six Sigma Improvement Cycle
17.6 Six Sigma and Organizations’ Involvement
17.7 Lean Six Sigma
17.8 Summary
Discussion Questions
Problems

Appendix: Standard Normal Table

References