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Metamorphosis - JMR

Book Reviews 2006, Vol. 5 No. 1, 107-112

MAHADEVAN, B. 2007. OPERATIONS MANAGEMENT: THEORY


AND PRACTICE. DELHI: PEARSON EDUCATION, PP. XXIII+
583; SOFT COVER. ISBN: 8177585649; LIST PRICE: RS. 325.
SUSHIL KUMAR

In this era of globalization, businesses are very successful at generating and/ or sustaining
constantly striving to acquire a steady foothold a high level of interest of our students in this
and excel in the market that is driven by the field . To a large extent, our students are not
customers. Products and services are regularly able to effectively extract the knowledge
being modified/ improved to cater to the provided through these good quality texts.
changing nature of demanding customers of
Any quality book on operations
this age . Operations Management is that management must explain the matter, keeping
knowledge domain, which provides know- in view its application in the business .
how to design, operate and improve a business, Concepts would take a firm root in the minds
and enables it to do better in terms of delivering
of the students only when they are supported
products and services with a competitive edge. by the associated examples which the students
Operations Management has been an area can relate to. While most of the 'imported'
of interest since the age of industrialization, textbooks are really good in subject matters,
albeit with different names. No wonder then their effectiveness takes a tumble when it comes
that a number of excellent books are available to examples that are being used to explain the
in advanced editions in this area [to name a fundamentals . Many would agree that while
few: Chase, Jacobs and Aquilano (2006), examples based on the companies like LL Bean,
Stevenson (2005), Gaither and Frazier (2002)], J C Penny, Hertz (rent-a-car) would be apt for
and these books well serve the function of students in USA; it probably would cut no ice
textbooks throughout the world. with our students in India. Add to it the
business data pertaining to American economy
Globalization helped in making this
and US industry productivity indexes provided
knowledge-base accessible to the Indian
in the texts that is, students might feel alien to
students by publishing such texts in India.
our business domain. Examples from Tata,
Almost all the major publishers in India have a
Reliance, Infosys, and Maruti would make
book or two in the category of operations
much sense here.
management to boast about. This has taken care
of the long-felt need for affordable textbooks Every instructor in the area of operations
of international standard in this area. But it has management might have faced this problem.
given rise to an altogether different type of It would need greater efforts from them to first
problem. Many of these foreign books are not develop the course material with appropriate

Sushi! Kumar is on Faculty in the Operations Management Group at Indian Institute of Management Lucknow. He
can be reached at sk@iiml.ac.in

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Metamorphosis - JMR

Indian examples and then make the concepts Chapter 3, process characteristics like volume
clear to the students because of this missing and variety are described using the immediately
umbilical cord between the concepts being recognizable examples related to BHEL, L&T,
taught and the example used to reinforce them. Titan watches and Tata Indica. Various types
In such circumstances, when a book on of processes and process-product matrix have
this subject by an Indian author comes out in been explained. Chapter 4 contains the product
the market, it would but naturally arouse development process. It covers topics such as
curiosity to explore whether it meets the product development process, and various
expectations of Indian instructors. This book tools to help develop product, such as Quality
by Prof. Mahadevan has done exactly this. Function Deployment (QFD), VE, DFM, etc. for
effective organization. Chapter 5 is devoted to
Plan of the Book Total Quality Management (TQM). It starts
with quality revolution and contribution of
The book contains twenty chapters quality Gurus to the concepts of TQM. A few
structured in five logical sections (parts). Apart important quality tools such as Pareto diagrams,
from following the generally accepted practice Cause and effect diagram, and Poka Yoke are
of providing the sections on introduction, elucidated. Various quality awards are also
design, and planning, the author has provided briefly explained. Statistical Process Control is
sections on value chain and maintenance/ the title of Chapter 6, in which process variation
operations improvement. and the steps to set up a process control system,
Section-I containing two chapters, deals are explained. It also covers process capability,
with introducing the concepts, trends in six sigma, and acceptance sampling, albeit briefly.
operations management and their relationships Chapter 7 on facilities location explains the
with other business domains. In Chapter 1, factors affecting location decisions, followed by
operations management is explained from the four location planning methods: location factor
systems viewpoint, highlighting functional rating, centre of gravity, load-distance, and
dependencies. Chapter 2 deals with strategic transportation model, each with an example.
issues and clarifies how operations strategy is Chapter 8 titled plant layout, covers the
derived from the corporate strategy. Break implications and various types of layouts,
even analysis finds a place in this chapter. including a good coverage on group technology
World class manufacturing practices and their layout. Chapter 9 deals with capacity planning
competitive priorities are described that help that defines capacity and provides its measures
readers with a big picture of the operations. in a very interesting way. It follows by capacity
The onset of globalization and its impact on planning framework that chalks out the process
operations management practices in India finds of computing the capacity requirements and
a special mention in this chapter. Business availability. Process mapping gets a mention
Process Outsourcing (BPO) finds a special here. Alternatives for capacity augmentation
treatment here. are discussed next, followed by the decision-
tree analysis. In addition, waiting line models
Section-11 has seven chapters dealing with
with good examples are presented in this
the issues of designing the operations. Contrary
chapter.
to the general trend, the theme of process
design (Chapter 3) precedes that of product/ Section-III contains the usual chapters of
service design/ development (Chapter 4) . In forecasting, aggregate planning, Material

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Sushi I Kumar

Requirement Planning (MRP), Just-In-Time unfolds its logic. The chapter highlights various
GIT) and scheduling, and in addition, a chapter elements of JIT, discusses production planning
on project management. Chapter 10 is on and control in JIT emphasizing push and pulls
forecasting and begins with emphasizing scheduling. The Kanban system is elaborated
forecasting as a planning tool. It then describes nicely in a step-wise approach using suitable
the need, time horizon, design, and developing examples. Chapter 14 on operations scheduling
forecasting logic. Various extrapolative (time launches with portraying the context of
series, linear regression) casual methods of scheduling, relating it with machine loading.
forecasting are then explained with A number of scheduling rules and performance
appropriate examples, followed by forecast criteria are provided with examples. Flow-shop
accuracy. An interesting addition is the topic and job-shop scheduling are the next topics
of using the forecasting system that sums up explained briefly. Theory of constraints and
this chapter. related topics like synchronous manufacturing
Chapter 11 on Aggregate Production and Drum-Buffer-Rope (DBR)" find a place at
Planning (APP) begins with planning the end of this chapter.
hierarchies in operations and sets the pace for The last chapter in this section, Chapter 15,
chapters to come. Necessity of production is devoted to project management. It introduces
planning at aggregate level is highlighted, project, its characteristics, and four phases
followed by providing a framework for the (conceptual, planning, implementation and
APP. Alternatives for managing demand and control, and feedback) of project management.
supply are reported. Basic strategies of leveling Work, cost and organization breakdown
and chasing, and a mixed strategy are structures are discussed under project
explained in-detail, supported by fitting framework. Next follows the development of a
examples. Various methods for APP are network representation and associated
described next, with a special focus on OR tools activities. Resource leveling and time-cost trade-
like LP and LDR. Master Production offs also find a place here. The chapter ends
Scheduling (MPS) finds the right place at the with a brief on project uncertainties and related
end of this chapter. computations.
Resource planning is an appropriate title Section-IV is focused on the issues of value
for the next Chapter 12 that encompasses more chain related to the material flow in the supply
than just Material Requirements Planning chain system. First of the three chapters in this
(MRP). The chapter highlights all the important section is Chapter 16 on Supply Chain
building blocks of MRP with examples. Lot Management (SCM). Introducing the term
sizing could have had more rules. Additional SCM, the chapter attends to the components
information on using the MRP system is of supply chain. Bullwhip effect is discussed,
provided that discusses updating the MRP followed by a good explanation of the measures
schedules, and safety stocks and safety lead for supply chain performance. Issues of
time. Apart from MRP, the chapter includes designing supply chains are addressed next.
some elaboration on Capacity Requirement The chapter ends with a brief mention of Third
Planning (CRP), DRP, MRP-11, and ERP that Party Logistics (TPL), and role of IT in SCM.
emphasizes the central role of planning in Chapter 17 with the title Purchasing and
operations. Chapter 13, devoted to the concepts supply management is an interesting addition,
in Just-In-Time GIT), traces the origin of JIT and emphasizing the importance of operations

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activities on the suppliers side. Procurement Features and Teaching Aids


process is outlined, comparing the differences
Every chapter title page puts forward the
in the traditional and modem approaches used .
learning objectives of that chapter in order to
The topic of vendor development finds a place
provide a study orientation. All the chapters
here. Factors for the make or buy decisions are
elaborated. The chapter ends with a good (except Chapter 3) have an opening vignette
coverage of thee-procurement process. The last text, taken primarily from Indian industries
chapter in this section is Chapter 18 on (except 2 cases). This sets up the learning
curiosity with an appropriate contextual
inventory planning and control. Importance of
example. These 'ideas at work', aptly termed
inventory management is emphasized with
by the author, are suitably inserted at two-three
data from Indian industries. Inventory cost is
places inside every chapter as well. Throughout
weii-explained with iilustrations. Some
the book, major points made in the text are
common multi-period inventory models and
emphasized in the margin boxes. Readers are
classification schemes are covered. In the end,
provided with context- specific references with
a brief on single period demand inventory
respect to other books, web sites, etc., in
system is provided.
footnotes on the same page. There are plenty
The last part (Section-V) of the book of worked-out examples wherever applicable
contains two chapters dealing with in book chapters, to reinforce the presented
maintaining and improving the standards of concepts. Learnings from the chapters are
operations. Chapter 19 on maintenance summarized at the end of each respective
management highlights the changing focus of chapter.
maintenance from reactive to proactive
Review questions are provided for every
approach. Need of maintenance management
chapter, each covering the entire chapter
is emphasized. Maintenance measures like
material. Most of the chapters have been
MTBF, MTTR and availability are well-
provided with representative unsolved
described with relevant examples. Effective
problems and exercises. This would give a
maintenance requirements are highlighted and
chance to students to solve these detailed
alternatives are discussed. Decision tools for
problems of their own and augment learning.
maintenance management have been given a
Chapter-specific references are provided at the
fair treatment, along with examples. Spare
end of each chapter.
parts management is adequately elaborated.
The chapter at the end has a good coverage of Examples and the practices followed by a
total productive maintenance related topics like number of Indian and multinational companies
OEE. Chapter 20 is devoted to the concept of are liberally provided throughout the text. At
continuous improvements. Possibilities of the end of the book, the company index
radical improvement, as well as continuous provides details of the quoted organizations that
improvements are covered here. Various help one search the company-specific examples.
popular improvement themes like process The book ends with the subject index.
mapping, Business Process Re-Engineering To the best of my knowledge, this is the
(BPR), Kaizen, SMED, are presented. The first book in the area of Operations
chapter ends on a high note with listing the Management in India that has an effective
organizational chaiienges in the way of resource support site designed to cater to the
improvements in operations. needs of a teacher. For the instructors adopting

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Sushi! Kumar

this book as a textbook, a number of teaching Section V of the book contains an


aids are provided at the book website http:// interesting and important theme of operations
pearsoned.co.in/bmahadevan. These include management that is being ignored in many
powerpoint presentations for all the chapters, popular OM books. It brings back the focus on
solution manual in excel format, and a the somewhat-lost theme of maintenance from
document listing the ideas for mini projects base an improvement perspective. The author has
on the material covered in the book. The quality thus managed to relate the maintenance related
of the powerpoint presentations is excellent activity with the continuous improvement
and matches the best in the world. That would processes. There is a whole chapter on the
provide the instructors real good material to concepts of continuous improvements. I find it
base their course presentation on and adapt it very innovative and a must from the
to their tastes and requirements. improvement angle in the study of operations.

Availability of this support makes this book Company and subject indexes are good
a just candidate to be adapted as a textbook additions at the end, facilitating a better and
for the course/ s on Operations Management. specific search inside the book.
Kudos to the author for such an excellent work As there are so many topics fighting for
in this 'attention-needed' instructor's support space in the introductory text. on operations
area. management, the author might have felt
compelled to be stringent in covering few of
Overall Observations the topics. The following are some of the
Part one sets the pace of learning with observations in this line of thinking:
apt examples in the area of operations • I would have preferred a little more
management and arouses a curiosity with its coverage in the area of Six Sigma. Out of
Indian-specific contextual examples. BPO has the two chapters related to quality, one
been described with a process view, added by should have been more focused towards
listing down the functional domain of BPO the six sigma concepts, its practical
applications. The author has also successfully approach, and how Indian organizations-
managed to keep the same consistent pace manufacturing and services alike, are
throughout the book. That makes the reading finding it useful specifically in solving the
a comfortable journey and keeps the readers' quality related problems, and developing
interests intact. a sound positive work culture generally.
With its rising popularity all over the world,
The book goes beyond the present OM texts this theme deserves more attention.
with a few innovative additions. Chapter 17
on Purchasing and Supply Management is an • Chapter on plant layout could have been
interesting addition in this category that titled facilities layout to reflect the
highlights how technology is helping with new applications of operations management
developments like e-procuring, etc. beyond the factory premises. Again, the
chapter on aggregate production planning
The topic of inventory planning and could have been focused towards sales and
control is justifiably placed after the operations planning keeping in line with
introduction to SCM and procurement process. the APICS. Title itself could have been
Inventory cost is well-explained with Aggregate Sales and Operations Planning
illustrations in this chapter. (e.g., Chase, Jacobs and Aquilano, 2006).

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• The topics related to job and work design Indian and international organizations are
seem to be ignored by the author, as Motion aptly used to emphasize the practical side of
study and work measurement do not find the described theory, and they gel well. Quality
any place in the text. Process mapping and of the text reflects the vast experience of the
value-added concepts find coverage in author and his understanding of the subject.
Chapter 20 on continuous improvement of
So, at last, here is that much awaited Indian
operations, but basic charts and diagrams
book having all the ingredients to be the
are not covered. Perhaps a separate chapter
Textbook in the area of Operations
(e.g., Greasley, Ch. 9 on job and work
Management. It comes out with flying colours
des ign) would cover these topics
when compared with the most popular and
adequately.
best-in-the-world texts in operations
• Section heading page would be better with management. I strongly recommend this as a
a summary of the section and the chapter standard text for the operations management
titles it covers (for example, Stevenson, course in MBA programmes. It could also be a
2006). course book in undergraduate and post-
graduate programmes in Mechanical,
• A glossary, containing the definitions or
Production, and Industrial Engineering.
brief descriptions of common operations
Manufacturing and Service organizations
terms would add value to the book .
would find this text as a very good reference
Providing answers to a few unsolved
material in OM.
problems at the end of the book could
possibly encourage students to try those
REFERENCES
problems out themselves (Gaither, 2002).
Chase, R.B., Jacobs, F. R. and Aquilano, N.J.
Summary 2006 . Operations Management for
Competitive Advantage, 11th ed. New Delhi:
The author has managed to deliver a
Tata McGraw-Hill.
delightful product with a potential to give a
knockout punch to many of the established Gaither, N. and Frazier, G. 2002. Operations
texts in this field with this marvellous creation.
Management, 9th ed. Bangalore: Thomson
Simple, easy-going and lucid language makes South-Western.
it very comfortable and enjoyable for the Greasley, A. 2006. Operations Management, UK:
readers to connect with the subject matter. Aston University Business School.
Solved problems are many, and are effectively Stevenson, W.J., 2005. Operations Management,
used throughout the texts. Examples from the 8th ed. New Delhi: Tata McGraw-Hill.

ABOUT THE REVIEWER

Sushil Kumar is an Associate Professor in the Operations


Management group at liM Lucknow. He holds a doctorate from liT Delhi
in the area of Industrial Engineering. He has a rich experience of teaching,
training and consultancy in .the area of Operations Management. He
has published several research papers in international and national
journals of repute.

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