Production and Operations Management Systems: 1st Edition (Hardback) book cover

Production and Operations Management Systems

1st Edition

By Sushil Gupta, Martin Starr

CRC Press

520 pages | 75 B/W Illus.

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pub: 2014-02-07
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Since the beginning of mankind on Earth, if the "busyness" process was successful, then some form of benefit sustained it. The fundamentals are obvious: get the right inputs (materials, labor, money, and ideas); transform them into highly demanded, quality outputs; and make it available in time to the end consumer. Illustrating how operations relate to the rest of the organization, Production and Operations Management Systems provides an understanding of the production and operations management (P/OM) functions as well as the processes of goods and service producers.

The modular character of the text permits many different journeys through the materials. If you like to start with supply chain management (Chapter 9) and then move on to inventory management (Chapter 5) and then quality management (Chapter 8), you can do so in that order. However, if your focus is product line stability and quick response time to competition, you may prefer to begin with project management (Chapter 7) to reflect the continuous project mode required for fast redesign rapid response. Slides, lectures, Excel worksheets, and solutions to short and extended problem sets are available on the Downloads / Updates tabs.

The project management component of P/OM is no longer an auxiliary aspect of the field. The entire system has to be viewed and understood. The book helps students develop a sense of managerial competence in making decisions in the design, planning, operation, and control of manufacturing, production, and operations systems through examples and case studies. The text uses analytical techniques when necessary to develop critical thinking and to sharpen decision-making skills. It makes production and operations management (P/OM) interesting, even exciting, to those who are embarking on a career that involves business of any kind.

Table of Contents

Introduction to Production and Operations Management

The Systems Viewpoint

Strategic Thinking

Explaining P/OM

Use of Models by P/OM

The Systems Approach

Information Systems for Manufacturing and Services

Defining Operations

Working Definitions of Production and Operations

Contrasting Production Management and Operations Management

P/OM—The Hub of the Business Model

Transformation Process

Costs and Revenues Associated with Input–Output (I/O) Models

P/OM Input–Output Profit Model

Productivity—A Major P/OM Issue

The Stages of P/OM Development

Organizational Positions and Career Opportunities in P/OM


Review Questions


P/OM History Archive

Archival Articles

Readings and References

Source of Video Clips on Manufacturing

Alliance for Innovative Manufacturing (AIM): How Everyday Things Are Made

Strategy, Productivity, and History

The Systems Viewpoint

Strategic Thinking

Measurement of Productivity

System-Wide Issues Impacting Productivity

History of Improvements of P/OM Transformations


Review Questions


Readings and References

Workload Assessment (Forecasting)


Time Series and Extrapolation

Forecasting Methods for Time-Series Analysis

Regression Analysis

Coefficients of Correlation and Determination

Forecasting Errors

The Delphi Method

Pooling Information and Multiple Forecasts

Product Life-Cycle Stages and Forecasting


Review Questions


Readings and References

Capacity Management and Aggregate Production Planning

Definitions of Capacity

Introduction to Aggregate Production Planning

Example 1: Aggregate Production Planning

Example 2: Aggregate Manufacturer’s Production Planning

Example 3: Aggregate Production Planning in a ServiceIndustry


Review Questions


Readings and References

Inventory Management


Types of Inventory Situations

Inventory-Related Costs

EOQ Model

EPQ Model

ABC Classification

Quantity Discount Model

Lead Times

Order Point Policies

Perpetual (Fixed Quantity) Inventory Systems

Periodic Review (Fixed Time) Inventory Systems


Review Questions


Readings and References



Classification of Scheduling Problems

Two Machines Flow-Shop Problem

Single-Machine Scheduling

Dynamic Scheduling Problems


Review Questions


Readings and References

Project Management


Managing Projects

Good Project Managers Are Leaders

Basic Rules for Managing Projects

Project Management Origins

Project Network

Critical Path and Project Duration

Early Start and Early Finish Times

Late Start and Late Finish Times

Slack Time

Reducing Project Duration—Crashing Activities

Cost Analysis

Crashing Multiple Paths

Probabilistic Projects

Resource Management


Review Questions


Readings and References

Quality Management


How Much Quality

Dimensions of Quality

The Costs of Quality

QC Methodology

Control Charts for Statistical Process Control

Control Charts for Variables: x-Bar Charts

Control Charts for Variables: R-Charts

Control Charts for Attributes: p-Charts

Control Charts for Attributes: c-Charts

Acceptance Sampling

International Quality Standards

Industrial Recognition of Quality


Review Questions


Readings and References

Supply Chain Management


Acquisition Chain Management

The Purchasing Function

Receiving, Inspection, and Storage

Requiring Bids before Purchase

Certification of Suppliers

Global Sourcing

Distribution Chain Management



Forecasting and Inventory Decisions in Supply Chain

Bullwhip Effect


Review Questions


Reading and References

Long-Term Planning (Facilities, Location, and Layout)

Facilities Planning

Who Does Facilities Planning?

Models for Facility Decisions

Location Decisions—Qualitative Factors

Structure and Site Selection

Rent, Buy, or Build—Cost Determinants

Facility Selection Using Scoring Models

Location Decisions Using the Transportation Model

Location Decisions Using Breakeven Models

Facilities Layout

Load–Distance Models

Heuristics to Improve Layout

Finding the Load Matrix


Review Questions


Readings and References

Innovation by P/OM for New Product Development (NPD)and Sustainability

Introduction to NPD and Innovation

Organizations Must Be Adaptable

Competition for New Ideas, Resources, and Customers

Product Innovation Failures Can Be Avoided

Continuous Project Management Is a Successful Innovation

New Growth Platforms for Innovation

The Dynamics of Brand Share

Innovators and Imitators

Innovators’ Production Strategies


Review Questions


Readings and References

Appendix A: Quantitative Models

A.1 Breakeven Models

A.1.1 Linear Breakeven Equations

A.1.2 Breakeven Charts

A.1.3 Interfunctional Breakeven Capacity Planning

A.2 Transportation Model of Linear Programming


Appendix B: The z-Table


About the Authors

Sushil Gupta is a Knight Ridder Center Research Professor in the College of Business Administration at Florida International University, Miami.

Martin Starr is Distinguished Professor of Production and Operations Management Emeritus at the Crummer Graduate School of Business at Rollins College, Florida, and Professor of Management Science and Operations Management Emeritus at Columbia University Graduate School of Business, New York.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Purchasing & Buying