Managing Business Process Flows (3rd Edition)

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A structured, data-driven approach to understanding core operations management concepts. Anupindi shows how managers can design and manage process structure and process drivers to improve the performance of any business process. The third edition retains the general process view paradigm while providing a sharper, more streamlined presentation of the development of ideas in each chapter–all of which are illustrated with contemporary examples from practice.

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Managing Business Process Flows This page intentionally left blank Third Edition Managing Business Process Flows PRINCIPLES OF OPERATIONS MANAGEMENT Ravi Anupindi University of Michigan Sunil Chopra Northwestern University Sudhakar D. Deshmukh Northwestern University Jan A. Van Mieghem Northwestern University Eitan Zemel New York University Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Senior Acquisitions Editor: Chuck Synovec Senior Project Manager: Mary Kate Murray Editorial Assistant: Ashlee Bradbury Director of Marketing: Patrice Lumumba Jones Executive Marketing Manager: Anne Fahlgren Production Project Manager: Clara Bartunek Creative Art Director: Jayne Conte Cover Designer: Suzanne Duda Cover Art: Fotolia Manager, Rights and Permissions: Hessa Albader Media Project Manager: John Cassar Media Product Manager: Sarah Peterson Full-Service Project Management: Mohinder Singh/Aptara®, Inc. Printer/Binder: Edwards Brothers Incorporated Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2012, 2006, 1999 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458. Many of the designations by manufacturers and seller to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Managing business process flows : principles of operations management / Ravi Anupindi . . . [et al.].—3rd ed. p. cm. Includes index. ISBN-13: 978-0-13-603637-1 ISBN-10: 0-13-603637-6 1. Production management. 2. Process control. I. Anupindi, Ravi. TS155.M33217 2012 658.5—dc23 2011023366 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-603637-6 ISBN 13: 978-0-13-603637-1 BRIEF CONTENTS Preface xv PART I Process Management and Strategy Chapter 1 Chapter 2 Products, Processes, and Performance 2 Operations Strategy and Management 20 PART II Process Flow Metrics Chapter 3 Chapter 4 Chapter 5 Chapter 6 45 Process Flow Measures 46 Flow-Time Analysis 80 Flow Rate and Capacity Analysis Inventory Analysis 121 PART III Process Flow Variability Chapter 7 Chapter 8 Chapter 9 102 151 Managing Flow Variability: Safety Inventory