Dr. Barbara Withers

НазваниеDr. Barbara Withers
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Study guide compiled by:

Dr CC Wessels

Page layout by Marietjie Verster, Graphics Services

Printing arrangements and distribution by Department Logistics (Distribution Centre)

Printed by The Platinum Press (018) 294 8879 / (016) 981 9401

Copyright  2006 edition. Date of revision 2007

North-West University, Potchefstroom Campus

All rights reserved. No part of this book, may be reproduced in any form or by any means without written permission from the publisher. It includes the making of photocopies of the whole or parts of this book.

Dr. Barbara Withers

Personal Experiences

Dr. Barbara Withers is an Associate Professor of Operations Management at the University of San Diego. Dr. Withers has over 15 years of private and public sector work experience, including 8 years in project management at the Prudhoe Bay oilfield in Alaska and 3 years as the Regional Economist for the Municipality of Anchorage. Her research has appeared in publications such as European Management Journal, Interna­tio­nal Journal of Manufacturing Technology Manage­ment, International Journal of Production Research, IEEE Transac­tions on Engineering Management, International Journal of Production Economics, International Journal of Quality and Reliability Management, Journal of Business Logistics, Industrial Marketing Management, and the European Journal of Marketing. Dr. Withers has presented her research at numerous national and international conferences. In additional, Dr. Withers has taught USD courses in Italy and Brazil. She is the recipient of the national SHINGO PRIZE for Excellence in Manufacturing Research and has received a USD University Professorship Award.

Educational Background

Dr. Withers received both her Ph.D. and M.B.A. in Management Science from the University of Colorado in Boulder, Colorado. Her bachelors degree, a B.S. in Experimental Psychology, was earned at Eckerd College in St. Petersburg, Florida. She grew up in New Orleans, Louisiana.

Hobbies & Interests

Archaeology is Dr. Withers' avocation. She has participated in summer-long digs in Sardinia, Italy and Tel Dor, Israel. She is also an active participate in the local chapter of the Explorers Club and with an educational branch of the San Diego Zoo.

Module Contents

Orientation xi

Presentation format xii

Lecturer xii





Suggested study strategies xv


Study schedule xxii

Action Verbs xxiii

1.Nature and Context of Operations Management 1

1.1Why Study Operations Management? 5

1.1.1Introduction 6

1.1.2Production Management Process 6

1.1.3Operations strategy 9

1.1.4Management of Services 17

1.1.5Historical Developments of Operations Management 18

1.1.6Conclusion 20

1.2Operations Strategy and Competitiveness 25

1.2.1Introduction 26

1.2.2Operations Strategy Issues 27

1.2.3Strategy 28

1.2.4Strategic and tactical Decisions of Production operations Management 29

1.2.5Developing a Production Operations Management Strategy 33

1.2.6Productions Operations Management Strategy Considerations 34

1.2.7A Framework for Operations Strategy in Manufacturing 36

1.2.8Operations Strategy in Services 37

1.2.9International issues in Production Operation Management 37

1.2.10Attacking through operations 39

1.2.11Productivity Measurements 39

1.2.12Summary 40

Solutions: Study Unit 1 43

2.Process analysis, Product Design and Process Selection 54


2.1.1Introduction 59

2.1.2Process Analysis 59

2.1.3Process Flowcharting 59

2.1.4Types of processes 60

2.1.5Measuring Process Performance 61

2.1.6Process throughput time reduction 61

2.1.7Summary 62

2.2Product Design and Process Selection – Manufacturing 63

2.2.1Product Selection 65

2.2.2Identifying New Product Opportunities 65

2.2.3Product Life Cycles 66

2.2.4Life cycle and strategy 69

2.2.5Product Design 71

2.2.6Product Development 74

2.2.7Linking Design and Manufacturing 78

2.2.8Concurrent Engineering 79

2.2.9Preparing for Production 80

2.2.10Defining the Product 83

2.2.11Process Selection 85

2.3Product Design and Process Selection – Services 87

2.3.1The Nature of Services 88

2.3.2The Design of Service Organisations 89

2.3.3Service Blueprinting 90

2.3.4Service Fail Safing Using Poka-Yokes 91

2.3.5Three Contrasting Service Designs 92

2.3.6Service Guarantee Design Drivers 94

2.3.7Waiting Line Management 95

Solutions: Study Unit 2 96

3.Identifying Customer Needs 107

3.1Total Quality Management 112

3.1.1Introduction 113

3.1.2Defining Quality 114

3.1.3Total Quality Management 116

3.1.4Benchmarking 117

3.1.5Quality through Just-in-Time 118

3.1.6Tools for TQM 119

3.1.7Quality Specifications & Quality Gurus 127

3.1.8Costs of Quality 130

3.1.9Continuous Improvement 131

3.1.10International Quality Standards & Awards 132

3.1.11Total Quality Management in Services 135

3.1.12Conclusion 136

3.2Statistical Quality Control 140

3.2.1Introduction 141

3.2.2The Importance of Statistical Quality Control 141

3.2.3Acceptance Sampling 142

3.2.4Process Control Procedures 143

3.2.5Variation around Us – Genichi Taguchi 145

3.2.6Summary 146

3.3Forecasting 148

3.3.1Introduction 149

3.3.2Forecasting Time Horizons 150

3.3.3Product Life-Cycle 151

3.3.4Type of Forecasts 151

3.3.5Components of Demand 152

3.3.6Qualitative Technique in Forecasting 153

3.3.7Quantitative Methods 154

3.3.8Summary 162

Solutions Study Unit 3 166

4.Strategic Decisions to meet customer needs 183

4.1Strategic Capacity management 187

4.1.1Introduction 188

4.1.2Nature of Capacity Relative to Operations Management 189

4.1.3Important Capacity Planning Concepts 189

4.1.4Capacity Planning 191

4.1.5Decision Trees 193

4.1.6Planning Service Capacity 194

4.1.7Summary 196

4.2Facility Location 199

4.2.1Introduction 200

4.2.2Issues in Facility Location 201

4.2.3The Objective of Location Strategy 201

4.2.4Plant Location Methods 202

4.2.5Locating Service Facilities 205

4.2.6Summary 207

4.3Facility Layout 209

4.3.1Introduction 210

4.3.2Types of Layout 211

4.3.3Process Orientated Layout 212

4.3.4Product Orientated Layout 213

4.3.5Group Technology (Cellular Layout) 215

4.3.6Fixed-Position Layout 216

4.3.7Retail Service Layout 217

4.3.8Summary 218

4.4Job Design, Work Measurement and Learning Curves 222

4.4.1Human Resource Strategy 223

4.4.2Objective of Human Resource Strategy 223

4.4.3Behavioural Considerations in Job Design 224

4.4.4Work Methods 225

4.4.5Financial Incentive Plans 226

4.4.6Summary 228

Solutions: Study Unit 4 232

5.Tactical Decisions in Meeting Customer Needs 255

5.1Operations Scheduling 258

5.1.1Introduction 259

5.1.2Scheduling and Control in a Job-shop 260

5.1.3Priority Rules and Techniques 261

5.1.4Shop-Floor Control 262

5.1.5Personnel Scheduling in Services 263

5.1.6Summary 264

5.2Just-in-time Production Systems 267

5.2.1Introduction 268

5.2.2The Japanese & American Approach to JIT 269

5.2.3Kanban Production System 271

5.2.4JIT Implementation Requirements 273

5.2.5JIT in Services 274

5.2.6Summary 275

5.3Synchronous Manufacturing 279

5.3.1Introduction 280

5.3.2The Goal of the Firm & Performance Measurements 281

5.3.3Capacity and Bottleneck Issues 282

5.3.4Comparing Synchronous Manufacturing with JIT and MRP 283

5.3.5Relationship with Other Functional Areas 284

5.3.6Summary 285

Solutions: Study Unit 5 288

6.Value Chain Management 305

6.1Aggregate Planning 309

6.1.1Introduction 310

6.1.2Aggregate Production Planning 310

6.1.3Aggregate Planning Techniques 312

6.1.4Conclusion 313

6.2Inventory Systems management 317

6.2.1Introduction 318

6.2.2Purpose of Inventory 318

6.2.3Inventory Costs 319

6.2.4Inventory Systems 320

6.2.5ABC Inventory Planning 321

6.2.6Conclusion 323

6.3Material Requirements Planning 326

6.3.1Introduction 327

6.3.2Dependent Inventory Model Requirements 327

6.3.3Master Production Schedule 328

6.3.4MRP Systems 329

6.3.5Manufacturing Resources Planning (MRP II) 331

6.3.6Embedding JIT into MRP 332

6.3.7Conclusion 333

6.4Supply Chain Strategy 336

6.4.1Introduction 337

6.4.2Supply Chain Strategy 337

6.4.3Measuring Supply Chain Performance 338

6.4.4Supply Chain Design Strategy 338

6.4.5Outsourcing 340

6.4.6Value Density 341

6.4.7Global Sourcing 341

6.4.8Mass Customisation 342

6.4.9Conclusion 343

Solutions: Study Unit 6 345

7.Improving the System 364

7.1Project Management 367

7.1.1Introduction 368

7.1.2Project Planning 368

7.1.3Project Control 370

7.1.4Structuring Projects 371

7.1.5Network-planning schedules 371

7.1.6Time-cost Models 373

7.1.7Cautions on Critical Path Analysis 374

7.1.8Conclusion 375

7.2Operations consulting and reengineering 378

7.2.1Introduction 379

7.2.2The nature of the management consulting industry 379

7.2.3The operations consulting process and tools 380

7.2.4The Nature of Business Process Reengineering 381

7.2.5The Principles of Reengineering 382

7.2.6Guidelines for Implementation 383

7.2.7Summary 384

Solutions: Study Unit 7 387


Question 2 Read the following case study and answer the question. [40] 400


Welcome to the MBA Phase 3 Module of Management of Operations and Services. This Module is designed to give students a managerial perspective of Operations and Service Management. In the past the production function was operated as an entity and it was separated from the other functions within the organisation. With the tremendous changes in the environment, it became more and more important that the production function should be managed as part of the whole system. It is also extremely important that you should know what production and service operations entail, and how they fit in with the rest of the organisation. Most of you will become or already are managers in organisations or small businesses. It is important that you should study the different aspects of Production/Operations Management and know how to use this information to create an environment that would produce products or services that would satisfy the client at the end of the day.

This Module focuses on helping you to obtain a basic literacy of Operations and Service Management. The aim of this Module is to create a basic understanding of the values and issues of Operations and Service systems and to familiarise you with the theoretical background to the management of these services. It is not designed to make you a fully fledged Production or Operations Manager, although the theory and practice dis­cussed in this Module could be of tremendous help to any person interested in the field. The Module is also designed to aid a Production Manager in managing operations more efficiently. Emphasis is placed on the management aspects of the Module and not so much on the mathematical and statistical operations that are required to maximise certain production functions. The aim of the Module is to make sure that you will be able to make a difference in your organisation by applying the techniques and practices of world renowned companies in the service and operations field. I trust that you will find this Module interesting and informative, and that it will also serve to satisfy your personal development goals.

Assignments are printed at the end of this study guide..

Presentation format

The presentation format of the Module is designed to accommodate effective distance learning and to optimise your learning experience. The presentation format offers you dif­ferent media options for participation, that range from a conventional hard copy study guide to electronic media information sources. Whatever options you choose, the facilities to your disposal will provide you with all the information and support your need to become a successful student. The study guide will be your learning foundation. It will guide you through the learning process, give you the necessary background information, provide you with a framework to apply the theoretical principals of your organisation and highlight important information. It will also be a tool to help you integrate the use of whatever media option you choose.

A Module is not only designed for you to give you a theoretical understanding of production and service systems in an organisation, but also give you the knowledge and tools to apply the knowledge in your work environment. You will be familiarised with a practical application of theoretical knowledge by means of case studies and real business problems. Your responsibility as a manager with relation to operations and services will be highlighted in the study guide.


Mr Henry Lotz

Tel: (018 299 1635)

Cell: 0824669713

E – Mail: pbshml@puk.ac.za


Production/Operations management has to do with the effective management of converting inputs into outputs within an organisation. Knowledge about this field will enable the student to make knowledgeable decisions relating to the design and operation of manufacturing and service processes.

This module’s aim is to expose the students to a managerial view of such aspects as productivity, profitability, quality and scheduling. The module will also strive to give the student direction in managing these aspects. The module's aim is to provide theoretical and practical cases for both the manufac­turing and service environments. The focus on products and services will enable the student to find this subject useful, regardless of the organisation the student finds him or herself in.

After you have completed the module, you should be able to:

  • schedule services and products in an organisation;

  • make tactical decisions relating to operational aspects;

  • audit and implement quality guidelines and processes;

  • make strategic decisions relating to process and capacity planning;

  • schedule inventory by making use of Just-in-Time and MRP concepts.


CHASE,R.B., AQUILANO, N.J. & JACOBS, F.R.. 2004. Production and Operations Management for Competitive Advantage. 10th edition. Boston: Irwin/McGraw-Hill.


Dilworth, J.B. 2000. Operations Management: Providing value in goods and services. 3ed edition. New York: Dryden Press

Hanna, M.D. & Newman, W.R. 2001. Integrated Operations Management: Adding value for customers. New Jersey: Prentice Hall.

Goldratt, E. M. 1982. The Goal. New York: North River Press.

Goldratt, E. M. 1990. The Haystack Syndrome. New York: North River Press.

Goldratt, E. M. & FOX, R.E. 1986. The Race. New York: North River Press.

Goldratt, E. M. 1990. Theory of Constraints. New York: North River Press.

Knod, E.M. & Schonberger, R.J. 2001. Operations Management: Meeting customers’ demands. New York: McGraw-Hill/Irwin

Martinich, J.S. 1997. Production and Operations Managemen: An applied approach. New York: John Wiley & Sons, Inc.

SCHONBERGER, R.J. & KNOD, E.M. 1994. Operations management: Continuous improvement. Homewood: McGraw-Hill/Irwin.

Slack, N. Chambers, S & Johnston, R. 2001. Operations Management. 3d edition. Essex: Prentice Hall.

Heizer,J & Render B. 2004. Operations Management. New Jersey Prentice Hall


1. Production and operational management strategy

2. Product Design & Process Selection – Manufacturing and Services

3. Total Quality Management

4. Forecasting techniques

5. Strategic capacity planning / Facility Location / Facility Layout

6. Job design and work measurement

7. Operations scheduling, Just-in-Time production and Theory of Constraints

8. Aggregate planning, Inventory Management and Material Requirement Planning

9. Project management and business process reengineering

Suggested study strategies

The main aim of this Module is to enable you to use the theoretical knowledge that you obtained in the Module in a practical sense. This means that the knowledge that will be applied to your organisation would be beneficial to either the bottom or top line of the company as these aspects are implemented. The Study Unit will go through a specific process in order to impart the knowledge to you the student. First of all the contents will be discussed in the study guide and important aspects will be highlighted in the chapter. Through this exercise you should keep the objectives that was set at the beginning of the Module in mind to make sure that the optimum use is made of this study guide unit. After each section you will be asked to evaluate yourself by means of evaluation exercises.

There are different levels of evaluation that you will find in each Study Unit to make sure that you understand the concepts and know how to apply it in a practical sense.

One level of evaluation is discussion and review questions. It is required that the students think through the question and give an appropriate answer. The answer might vary from student to student as organisations differ. These questions can be found throughout each respective Study Unit, or at the end of each chapter in the prescribed textbook Chase, Aquilano & Jacobs.

Another level of evaluation is the practical application of the theoretical knowledge that was imparted in the Module. This is also the most important of the evaluation techniques. This is incidentally the final objective of the Module. The correct application of theoretical knowledge in practical, real life scenarios. A case study will be given either within the Study Unit, or at the end of it. The application of theoretical knowledge, common sense and ingenuity will be the measures that will be required in order to answer these case studies successfully. As no single correct answer exists, you should focus on an in depth analysis of each case study. Your recommendations for future action should then be based on the correct analysis of the case study, and the knowledge that you have obtained from the Module. The analysis of the case study is critical, as the theoretical background will provide the student with enough information to make a successful evaluation. Your evaluation at the end of the Module and in real life will centre around the evaluation of real world problems.

The study guide will facilitate the learning process, but the text­book will be your main source of information. Where appli­cable, I will enrich the learning process with additional infor­mation.

The study guide that accompanies the textbook will indicate the focus and importance of the various aspects. Let the Study Guide guide you through the learning process. Study the Study Units with the student objectives as your guidelines. Focus on the real world cases and problems. It is recommended that you do some of the assignments at an organisation in your city or town, that utilises the aspects that I mentioned in the Module. Take note that in marking the assignments and exam, the focus is on the evaluation on your line of argument and your insight into the specific topic.


It is recommended that you refer to the glossary for Manage­ment of Operations and Services that is given at the end of each Study Unit on a regular basis. You can also discuss the terms with other MBA students or colleagues in the workplace.


It is recommended that you make an appointment with a Production or Operations Manager at work and discuss the various aspects that is important in his work. It would greatly enrich your knowledge of the topic.

Suggested additional readings

If you are not already doing so, I would recommend that you subscribe to and read some informative magazines on the subject. Magazines such as Productivity, and business magazines such as the Harvard Business Review, and Sloan Management Review, will help you greatly in obtaining the relevant information to the newest developments in the field.

LIBRARY WEB SITE. The following web site could be used to find articles related to OPERATIONS MANAGEMENT.


Recommended international databases are Business Source Premier and Emerald Library.


Identify keywords to be searcehd on the chosen database

Phrase searching can be done eg. operational management

Keywords can be combined with AND (all of the terms in the article) eg.. operational management AND engineering

Synonyms are combined with OR (any of the terms) eg. personnel OR staff OR employee* OR worker*

Truncation symbol is usually * (asterisk), unless otherwise specified in database help screen

Field searching can be done eg. AB Abstract or Author – Supplied Abstract


Test your current knowledge and insight. Make sure that you are able to answer the questions on this study material before continuing

Read the prescribed material.

Individual exercise.


Important information

Assignment. You should complete this assignment as a computer printout and submit it on the date indicated

Prepare yourself (by making notes) for answering questions on this issue in a group discussion or exam.

Preparation for contact session.

Group work/exercise

Answers/solutions. This is used after a self-evaluation exercise, where you receive information about possible answers to the activity you just completed.

List of concepts.

Summary of main learning points.

Additional literature. Although not compulsory, it will enrich your knowledge and insight to read this.

Attend the contact session.

Practical example

Study hints.

Introductory statements

Underline the main concepts.

General overview.

Make a summary.

Study the following section carefully


Rewrite this statement in your own words and explain its meaning. If you are not able to do this, or if you are not sure that you understand it correctly, make a note and come back to it once you've worked through this Study Section. If it is still unclear, you should ask for an explanation.



Case study

Listen to the audio cassette and complete the accompanying exercise

You need approximately X hours to complete this Study Unit successfully

Mail to specify address

Send in by e-mail

Study schedule





Week 1

Production and opera­tional management strategy / International perspective

Study Unit 1

Week 2

Product Design & Process Selection – Manufacturing and Services

Study Unit 2


Discussion of work done so far

Week 3

Total Quality Manage­ment / Statistical Quality Management

Forecasting techniques

Study Unit 3

Week 4

Strategic capacity planning / Facility Location / Facility Layout

Study Unit 4

(Finish assignment)

Group discussion

7 Sept

Discussion of work done so far

Individual assignment: Hand in date

Week 5

Operations scheduling, Just-in-Time production and Theory of Constraints

Study Unit 5


Week 6

Aggregate planning, Inventory Management and Material Requirement Planning

Study Unit 6


Discussion of work done so far

Week 7

Project management and business process reengineering

Study Unit 7

Week 8

Summary of the course

Group discussion

19 Oct

Discussion of the work done during the year and preparation for the exam

Group assignment: Hand in date

Prepare for EXAM


14 Nov


Action Verbs

These action verbs are included, in order to provide clarity of what is expected of you as a student. Please study them and make sure that you understand the meaning of each.

  • Analyse

Identify parts or elements of a concept and describe them one by one.

EXAMPLE: Analyse a typical lesson structure and describe each aspect in detail.

  • Compare

Point out the similarities (things that are the same) and the differen­ces between objects, ideas or points of view. The word “contrast” can also be used. When you compare two or more objects, you should do so systematically - completing one aspect at a time. It is always better to do this in your own words.

EXAMPLE: Compare philosophical and empirical knowledge. Compare the views of Piaget and Ausubel about the nature of learning.

  • Criticise

This means that you should indicate whether you agree or disa­gree about a certain statement or view. You should then describe what you agree/disagree about and give reasons for your view.

EXAMPLE: Write critical comments about the progressive liberal view of education.

  • Define

Give the precise meaning of something, very often definitions have to be learnt word for word.

EXAMPLE: Define the concept curriculum.

  • Demonstrate

Include and discuss examples. You have to prove that you understand how a process works or how a concept is applied in real-life situations.

EXAMPLE: Give a written demonstration of the application of the procedural moments of a lesson.

  • Describe

Say exactly what something is like; give an account of the charac­teristics or nature of something; explain how something works. No opinion or argument is needed.

EXAMPLE: Describe the characteristics of philosophical thought.

  • Discuss

Comment on something in your own words. Often requires debating two viewpoints or two different possibilities.

EXAMPLE: Discuss the differences between objectives and goals.

  • Distinguish

Point out the differences between objects, different ideas, or points of view. Usually requires you to use your own words.

EXAMPLE: Distinguish between a positivistic and a herme­neutic view of science.

  • Essay

An extensive description of a topic is required.

EXAMPLE: Write an essay about the value of Psychological Education for the teacher.

  • Example

A practical illustration of a concept is required.

EXAMPLE: See our examples after every definition of a task­word.

  • Explain

Clarify or give reasons for something, usually in your own words. You must prove that you understand the content. It may be useful to use examples or illustrations.

EXAMPLE: Briefly explain the following research methods:

(a) The experiment

(b) Correlational studies

  • Identify

Give the essential characteristics or aspects of a phenomenon e.g. a good research design.

EXAMPLE: Identify the characteristics in a text about the research process which is indicative a good research design.

  • Illustrate

Draw a diagram or sketch that represent a phenomenon or idea.

EXAMPLE: Explain the life cycle of a butterfly. Write a short essay and illustrate this model.

  • List

Simply provide a list of names, facts or items asked for. A particular category or order may be specified.

EXAMPLE: List ten psycho-social problems associated with alco­hol abuse in high school pupils.

  • Motivate

You should give an explanation of the reasons for your statements or views. You should try to convince the reader of your view.

EXAMPLE: Write an essay about your own philosophical educa­tion. Motivate your views

  • Name or mention

Briefly describe without giving details.

EXAMPLE: Name three research methods in Nursing

Name the two major schools of thought (paradigms) on educa­tion.

  • Outline

Emphasize the major features, structures or general principles of a topic, omitting minor details. Slightly more detail than in the case of naming, listing or stating of information is required.

EXAMPLE: Outline the major features of a lesson structure.

  • State

Supply the required information without discussing it.

EXAMPLE: State three functions of a computer.

  • Summarise

Give a structured overview of the key (most important) aspects of a topic; must always be done in your own words.

EXAMPLE: Give a summary of the core characteristics of the con­ser­vative-normative oriented school of thought on educa­tion.

  • Formulate

To set forth systematically.

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Dr. Barbara Withers iconDove family. There is a tradition that it was formerly an Inn, the last stage at which coaches stopped on the way from Gloucester to Bristol; this is, however, also said of the house on the west end of the stream, Hambrook, now held by Mr. Withers

Dr. Barbara Withers iconBarbara Mary Iris Landale 12

Dr. Barbara Withers iconUniversity of California, Santa Barbara

Dr. Barbara Withers iconC allan e Barbara Pease, 2003

Dr. Barbara Withers iconBarbara Grogan-Barone Thompson 207D

Dr. Barbara Withers iconNew agritourism : hosting community & tourists on your farm / Barbara Berst Adams. Auburn

Dr. Barbara Withers iconStephen D. Smith, William J. Tays, Michael J. Dixon, and M. Barbara Bulman-Fleming

Dr. Barbara Withers iconJoe Conti and John Foran Department of Sociology, uc santa Barbara January 2006

Dr. Barbara Withers iconI dedicate this dictionary to my parents George and Marion Greenwald and my friends Orville and Evelyn Brynelson. I especially thank James Steckel, Barbara

Dr. Barbara Withers iconI dedicate this collection to my friends Orville and Evelyn Brynelson and my parents George and Marion Greenwald. I especially thank James Steckel, Barbara

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