Fundamentals of Operations Management
Author(s): Sambhavi Lakshminarayan , Jit Chandan
Edition: 2
Copyright: 2022
Pages: 304
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Fundamentals of Operations Management provides a comprehensive introduction to the principles, strategies, and practices that drive the efficient production of goods and delivery of services in today's organizations. The text examines the role of operations management in creating value through effective planning, process design, quality management, forecasting, inventory control, supply chain coordination, project management, and continuous improvement. It explores both manufacturing and service operations while highlighting the strategic importance of operations in achieving organizational goals and maintaining competitive advantage.
Throughout the book, readers are introduced to key concepts such as facility layout, capacity planning, lean systems, Just-in-Time (JIT) production, quality management, waiting line analysis, and enterprise resource planning. Real-world examples, case studies, self-assessments, and problem-solving exercises reinforce practical applications and demonstrate how operations management influences productivity, customer satisfaction, and organizational performance. By integrating foundational theory with contemporary industry practices, the text equips students with the analytical tools and decision-making skills needed to manage operations effectively in an increasingly global and technology-driven business environment.
Chapter 1: Operations Functions, Strategies, and Management
Introduction
Operations as a System
Operations Management
Historical Perspectives
The Industrial Revolution
Societal Impact of Operations Management
Operations Strategy
Competitive Priorities
Current Trends in Operations Management
Questions
Self-Test Quiz
References
Chapter 2: Operations Management in Services Industries
Introduction
Categories in the Service Sector
Characteristics of Services
Categories of New Services
Types of Service Organizations
Strategic Approaches to On-Site Services
Behavioral Aspects of Service Production Processes
Service Guarantees
Technology in Services
Questions
Self-Test Quiz
References
Chapter 3: Facility Layout and Capacity Planning
Introduction
Need for Facilities Decisions
Types of Layouts
Combination Layouts
Assembly Line Balancing
Facility Location
Locating Service Operations
Capacity Decisions
Importance of Capacity Planning
Capacity Strategies
Measuring Capacity
Questions
Self-Test Quiz
Problems
References
Chapter 4: Product and Process Design
Introduction
New Products
Considerations in Product Design
Quality Function Deployment
Production Processes
Operations Decisions in Product Design and Development
Reliability
Designing Services
Questions
Self-Test Quiz
Problems
References
Chapter 5: Job Design and Work Measurement
Introduction
Job Design
The Job Characteristics Model
Work Redesign
Methods Analysis
Work Measurement
Sample Size Determination
Standard Times
Work Sampling
Motion Study
Value Analysis
Questions
Self-Test Quiz
Problems
References
Chapter 6: Forecasting
Introduction
Organizational and Environmental Forecasting
Principles of Forecasting
The Forecasting Process
Qualitative Techniques of Forecasting
Quantitative Methods of Forecasting
Forecasting Level Patterns
Exponential Smoothing
Forecasting Errors
Causal Models
Limitations of Quantitative Forecasting Techniques
Use of Technology in Forecasting
Questions
Self-Test Quiz
Problems
References
Chapter 7: Aggregate Planning
Introduction
General Organizational Planning
Aggregate Planning
Aggregate Planning Strategies
Costs in Aggregate Planning
Techniques in Aggregate Planning
Aggregate Planning in Services
Yield Management
Master Scheduling
Technology Used for Aggregate Planning
Questions
Self-Test Quiz
Problems
References
Chapter 8: Inventory Management—Independent Demand
Introduction
Reasons for Maintaining Inventory
Types of Inventories
Inventory Management Systems
Costs Related to Inventory
Economic Order Quantity Model
The EOQ Formula
Economic Production Quantity Model
Quantity Discounts
Fixed Time Period Model
Questions
Self-Test Quiz
Problems
Chapter 9: Inventory Management—Dependent Demand
Introduction
Materials Requirements Planning
Master Production Schedule
Bill of Materials
Inventory Status File
Enterprise Resource Planning
Questions
Self-Test Quiz
Problems
References
Chapter 10: JIT and Lean Systems
Introduction
Origins of the JIT Philosophy
Implementation JIT—Ford and Harley Davidson
Kanban Production Control System
JIT Philosophy
JIT in Services
JIT: A Critical Assessment
Drawbacks of JIT
Lean Production Systems
Questions
Self-Test Quiz
Problems
References
Chapter 11: Project Management
Introduction
The Project Manager
Work Breakdown Structures
Scheduling Methods—Gantt Chart
Critical Path Method and Program (or Project) Evaluation and
Review Technique
The Project Network Diagram
Critical Activities, Slack Times, and Critical Paths
Project Crashing—the Time/Cost Trade-Off
PERT—Uncertainty in Activity Time Estimates
Questions
Self-Test Quiz
Problems
References
Chapter 12: Quality Management and Control
Introduction
Definition and Dimensions of Quality
The Evolution of Quality Management
Quality Certification
Total Quality Management
Six Sigma and Quality
The Shingo System
The Kano Model
Quality Assurance
Costs of Quality
Quality Tools and Control
Statistical Process Control
Types of Errors
Developing Control Charts
Control Chart for Variables
Control Chart for Attributes
Control Charts—Managerial Considerations
Acceptance Sampling
Questions
Self-Test Quiz
Problems
References
Chapter 13: Waiting Line Management
Introduction
Perceived Wait Time
Customer Attitudes Regarding Waiting
Actual Wait Time
Waiting Line (Queuing) Approach
Queuing Models A & B
Changing Operational Characteristics
Questions
Self-Test Quiz
Problems
References
Chapter 14: Supply Chain Management
Introduction
Managerial Issues
Logistics and Supply Chains
Supplier Tiers
Costs in Supply Chains
Why Supply Chain Management?
Critical Developmental Areas
Supply Chain Management Strategies
Vendor Management
Make-or-Buy Decision: Insourcing Versus Outsourcing
Supply Chain Disruptions
Questions
Self-Test Quiz
References
Dr. Sambhavi Lakshminarayanan is a professor in the Department of Business Administration. She teaches in the areas of Management and Business. Dr. Lakshminarayanan joined Medgar Evers Colleges in 2002. Along with teaching and departmental work, she has also served on several committees in the college and as faculty advisor for student clubs.
Dr. Lakshminarayanan has a PhD in Management from the University of Texas at Dallas, Master of Statistics from the Indian Statistical Institute, and BA in Statistics from Delhi University (New Delhi, India).
Dr. Lakshminarayanan has published papers, book chapters and books across a variety of topics in the fields of Management and Business. Her most recent publications include the book Asian Women in Corporate America: Emerging Research and Opportunities and second edition of an Operations Management textbook. She has also (co) authored several business case studies, aimed for classroom use.
Jit Chandan is an accomplished educator, author, and scholar in the fields of operations management, business, and economics. As a professor at Medgar Evers College of the City University of New York (CUNY), he has dedicated his career to preparing students for success through engaging instruction that bridges business theory with real-world applications. His teaching and research interests include operations management, strategic management, organizational effectiveness, and global business practices, with an emphasis on developing practical problem-solving and decision-making skills.
Dr. Chandan is the co-author of Fundamentals of Operations Management, a comprehensive textbook that introduces students to the principles of operations strategy, quality management, supply chain management, forecasting, inventory control, project management, and continuous improvement. Throughout his academic career, he has remained committed to fostering critical thinking, analytical reasoning, and professional excellence while mentoring students from diverse backgrounds. Through his contributions as an educator and author, Dr. Chandan has helped advance business education by making complex operational concepts accessible and relevant to today's rapidly evolving global business environment.
Fundamentals of Operations Management provides a comprehensive introduction to the principles, strategies, and practices that drive the efficient production of goods and delivery of services in today's organizations. The text examines the role of operations management in creating value through effective planning, process design, quality management, forecasting, inventory control, supply chain coordination, project management, and continuous improvement. It explores both manufacturing and service operations while highlighting the strategic importance of operations in achieving organizational goals and maintaining competitive advantage.
Throughout the book, readers are introduced to key concepts such as facility layout, capacity planning, lean systems, Just-in-Time (JIT) production, quality management, waiting line analysis, and enterprise resource planning. Real-world examples, case studies, self-assessments, and problem-solving exercises reinforce practical applications and demonstrate how operations management influences productivity, customer satisfaction, and organizational performance. By integrating foundational theory with contemporary industry practices, the text equips students with the analytical tools and decision-making skills needed to manage operations effectively in an increasingly global and technology-driven business environment.
Chapter 1: Operations Functions, Strategies, and Management
Introduction
Operations as a System
Operations Management
Historical Perspectives
The Industrial Revolution
Societal Impact of Operations Management
Operations Strategy
Competitive Priorities
Current Trends in Operations Management
Questions
Self-Test Quiz
References
Chapter 2: Operations Management in Services Industries
Introduction
Categories in the Service Sector
Characteristics of Services
Categories of New Services
Types of Service Organizations
Strategic Approaches to On-Site Services
Behavioral Aspects of Service Production Processes
Service Guarantees
Technology in Services
Questions
Self-Test Quiz
References
Chapter 3: Facility Layout and Capacity Planning
Introduction
Need for Facilities Decisions
Types of Layouts
Combination Layouts
Assembly Line Balancing
Facility Location
Locating Service Operations
Capacity Decisions
Importance of Capacity Planning
Capacity Strategies
Measuring Capacity
Questions
Self-Test Quiz
Problems
References
Chapter 4: Product and Process Design
Introduction
New Products
Considerations in Product Design
Quality Function Deployment
Production Processes
Operations Decisions in Product Design and Development
Reliability
Designing Services
Questions
Self-Test Quiz
Problems
References
Chapter 5: Job Design and Work Measurement
Introduction
Job Design
The Job Characteristics Model
Work Redesign
Methods Analysis
Work Measurement
Sample Size Determination
Standard Times
Work Sampling
Motion Study
Value Analysis
Questions
Self-Test Quiz
Problems
References
Chapter 6: Forecasting
Introduction
Organizational and Environmental Forecasting
Principles of Forecasting
The Forecasting Process
Qualitative Techniques of Forecasting
Quantitative Methods of Forecasting
Forecasting Level Patterns
Exponential Smoothing
Forecasting Errors
Causal Models
Limitations of Quantitative Forecasting Techniques
Use of Technology in Forecasting
Questions
Self-Test Quiz
Problems
References
Chapter 7: Aggregate Planning
Introduction
General Organizational Planning
Aggregate Planning
Aggregate Planning Strategies
Costs in Aggregate Planning
Techniques in Aggregate Planning
Aggregate Planning in Services
Yield Management
Master Scheduling
Technology Used for Aggregate Planning
Questions
Self-Test Quiz
Problems
References
Chapter 8: Inventory Management—Independent Demand
Introduction
Reasons for Maintaining Inventory
Types of Inventories
Inventory Management Systems
Costs Related to Inventory
Economic Order Quantity Model
The EOQ Formula
Economic Production Quantity Model
Quantity Discounts
Fixed Time Period Model
Questions
Self-Test Quiz
Problems
Chapter 9: Inventory Management—Dependent Demand
Introduction
Materials Requirements Planning
Master Production Schedule
Bill of Materials
Inventory Status File
Enterprise Resource Planning
Questions
Self-Test Quiz
Problems
References
Chapter 10: JIT and Lean Systems
Introduction
Origins of the JIT Philosophy
Implementation JIT—Ford and Harley Davidson
Kanban Production Control System
JIT Philosophy
JIT in Services
JIT: A Critical Assessment
Drawbacks of JIT
Lean Production Systems
Questions
Self-Test Quiz
Problems
References
Chapter 11: Project Management
Introduction
The Project Manager
Work Breakdown Structures
Scheduling Methods—Gantt Chart
Critical Path Method and Program (or Project) Evaluation and
Review Technique
The Project Network Diagram
Critical Activities, Slack Times, and Critical Paths
Project Crashing—the Time/Cost Trade-Off
PERT—Uncertainty in Activity Time Estimates
Questions
Self-Test Quiz
Problems
References
Chapter 12: Quality Management and Control
Introduction
Definition and Dimensions of Quality
The Evolution of Quality Management
Quality Certification
Total Quality Management
Six Sigma and Quality
The Shingo System
The Kano Model
Quality Assurance
Costs of Quality
Quality Tools and Control
Statistical Process Control
Types of Errors
Developing Control Charts
Control Chart for Variables
Control Chart for Attributes
Control Charts—Managerial Considerations
Acceptance Sampling
Questions
Self-Test Quiz
Problems
References
Chapter 13: Waiting Line Management
Introduction
Perceived Wait Time
Customer Attitudes Regarding Waiting
Actual Wait Time
Waiting Line (Queuing) Approach
Queuing Models A & B
Changing Operational Characteristics
Questions
Self-Test Quiz
Problems
References
Chapter 14: Supply Chain Management
Introduction
Managerial Issues
Logistics and Supply Chains
Supplier Tiers
Costs in Supply Chains
Why Supply Chain Management?
Critical Developmental Areas
Supply Chain Management Strategies
Vendor Management
Make-or-Buy Decision: Insourcing Versus Outsourcing
Supply Chain Disruptions
Questions
Self-Test Quiz
References
Dr. Sambhavi Lakshminarayanan is a professor in the Department of Business Administration. She teaches in the areas of Management and Business. Dr. Lakshminarayanan joined Medgar Evers Colleges in 2002. Along with teaching and departmental work, she has also served on several committees in the college and as faculty advisor for student clubs.
Dr. Lakshminarayanan has a PhD in Management from the University of Texas at Dallas, Master of Statistics from the Indian Statistical Institute, and BA in Statistics from Delhi University (New Delhi, India).
Dr. Lakshminarayanan has published papers, book chapters and books across a variety of topics in the fields of Management and Business. Her most recent publications include the book Asian Women in Corporate America: Emerging Research and Opportunities and second edition of an Operations Management textbook. She has also (co) authored several business case studies, aimed for classroom use.
Jit Chandan is an accomplished educator, author, and scholar in the fields of operations management, business, and economics. As a professor at Medgar Evers College of the City University of New York (CUNY), he has dedicated his career to preparing students for success through engaging instruction that bridges business theory with real-world applications. His teaching and research interests include operations management, strategic management, organizational effectiveness, and global business practices, with an emphasis on developing practical problem-solving and decision-making skills.
Dr. Chandan is the co-author of Fundamentals of Operations Management, a comprehensive textbook that introduces students to the principles of operations strategy, quality management, supply chain management, forecasting, inventory control, project management, and continuous improvement. Throughout his academic career, he has remained committed to fostering critical thinking, analytical reasoning, and professional excellence while mentoring students from diverse backgrounds. Through his contributions as an educator and author, Dr. Chandan has helped advance business education by making complex operational concepts accessible and relevant to today's rapidly evolving global business environment.

