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Encyclopedia in Operations Management

  • 1st Edition - May 1, 2026
  • Latest edition
  • Editor: Tsan-Ming Jason Choi
  • Language: English

Encyclopedia of Operations Management offers a comprehensive and authoritative exploration of the field of operations management. Recognizing the evolving nature of this field,… Read more

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Description

Encyclopedia of Operations Management offers a comprehensive and authoritative exploration of the field of operations management. Recognizing the evolving nature of this field, this encyclopedia incorporates the latest trends, emerging technologies, and industry practices. It addresses topics such as Industry 4.0, digital transformation, sustainability, agile methodologies, and data analytics, ensuring that readers are equipped with up-to-date knowledge. Designed to cater to both students and professionals, this encyclopedia provides a wide range of knowledge, insights, and best practices for optimizing operations within diverse industries and organizations.

Readers will also find numerous case studies and examples drawn from a diverse range of industries, including manufacturing, services, healthcare, logistics, and e-commerce. These real-world illustrations enable readers to grasp the practical implications of various operations management concepts and techniques.

Key features

  • Covers a broad spectrum of topics related to operations management, encompassing the entire lifecycle of operations, from planning and design to execution, control, and improvement
  • Includes both traditional and contemporary aspects of the field, ensuring that readers gain a holistic understanding of operations management in the modern business landscape
  • Features contributions from leading experts, practitioners, and academics in the field of operations management
  • Organized thematically into clearly defined sections, thus facilitating easy navigation and enabling readers to locate specific topics of interest quickly

Readership

Undergraduate students seeking foundational knowledge, to a postgraduate scholar conducting advanced research, to a seasoned industry practitioner seeking to stay informed of the latest trends and developments within operations management.

Table of contents

1. Operations and Productivity

1.1 What is Operations Management (OM)?

1.2 Role of OM in an Organization / Importance of OM in Running a Firm

1.3 Role of Operations Management in Organizations

1.4 What Does It Mean by Supply Chain OM

1.5 Operations for Goods and Services

1.6 A Process View of OM

1.7 Heritage of OM

1.8 The Productivity Challenge

1.9 Current Challenges in OM

1.10 Ethics, Social Responsibility, and Sustainability in OM


2. Data Analytics in Operations

2.1 Data-Driven Tools for Operations Management

2.2 AI in Operations Management

2.3 Using Data-Driven Tools to Study Service Operations

2.3.1 Healthcare Operations

2.3.2 Logistics

2.4 Big Data Analytics


3. Project Management

3.1 Definition of Projects and Project Management (Definition and Steps)

3.2 Project Planning

3.2.1 The Project Manager

3.2.2 Work Breakdown Structure

3.3 Project Scheduling

3.3.1 Gantt Chart

3.4 Project Controlling

3.5 Project Management Techniques: PERT and CPM

3.5.1 The Framework of PERT and CPM

3.5.2 Network Diagrams and Approaches

3.5.3 Activity-on-Node Example

3.5.4 Activity-on-Arrow Example

3.6 Determining the Project Schedule

3.7 Variability in Activity Times

3.8 Cost–Time Trade-Offs and Project Crashing, Cost to Cash, Minimizing Costs

3.9 A Critique of PERT and CPM

3.10 Understanding the Project Environment

3.10.1 The Role of Stakeholders in the Project Environment

3.10.2 Understanding Stakeholders and Their Motivations

3.10.3 Prioritizing and Managing Stakeholders

3.11 Assessing and Analyzing Risks

3.11.1 Risk-Management Plans

3.11.2 Statistical Analysis

3.11.3 Analyzing Probabilities

3.11.4 Near-Critical Paths

3.11.5 Risks Caused by Changing


4. Forecasting and Capacity Management

4.1 Definition and Importance of Forecasting

4.2 Key Decisions in Making Forecasts

4.3 Forecasting Approaches – Qualitative Methods

4.4 Forecasting Approaches – Quantitative Methods

4.5 Associative Forecasting Methods: Regression and Correlation Analysis

4.6 What Is Capacity Management

4.7 Managing Demand

4.8 Capacity Planning (Long-Term)

4.9 Constraint Management

4.9.1 Definition of the Theory of Constraints

4.9.2 Bottleneck Management

4.10 Monitoring and Controlling Forecasts

4.10.1 Adaptive Smoothing

4.10.2 Focus Forecasting

4.11 Forecasting in the Service Sector

4.12 Forecast Error

4.12.1 Cumulative Sum of Forecast Errors

4.12.2 Dispersion of Forecast Errors

4.12.3 Mean Absolute Percent Error

4.13 Computer-Supported Judgment Methods

4.14 Big Data and the Forecasting Process

4.14.1 Big Data

4.14.2 A Typical Forecasting Process

4.15 How Is Capacity Measured?

4.15.1 The Effect of Activity Mix on Capacity Measurement

4.15.2 The Effect of Time-Frame on Capacity Measurement

4.15.3 The Effect of Specification on Capacity Measurement

4.15.4 Understanding Changes in Capacity

4.16 What Is Capacity?

4.16.1 Design and Effective Capacity

4.16.2 Capacity and Strategy

4.16.3 Capacity Considerations

4.17 Managing Demand

4.18 Service-Sector Demand and Capacity Management

4.19 Understanding the Consequences of Capacity Management Decisions

4.19.1 Using Cumulative Representations

4.19.2 Using Queuing Principles

4.19.3 Using a Longitudinal Perspective

4.20 Applying the Theory of Constraints to Product Mix Decisions

4.21 Managing Constraints in Line Processes

4.22 Reducing Risk with Incremental Changes


5. Design of Goods and Services

5.1 Stages of Service and Product Design

5.1.1 Concept Generation

5.1.2 Concept Screening

5.1.3 Preliminary Design

5.1.4 Design Evaluation and Improvement

5.1.5 Prototyping and Final Design

5.2 The Innovation Process

5.2.1 Capacity Requirements

5.2.2 Outsourcing Options

5.2.3 Technology Needs

5.2.4 Organizational Structure

5.2.5 Process Compression

5.3 Supporting Technologies for Innovation

5.3.1 Computer-Aided Design

5.3.2 Virtual Reality

5.3.3 AI

5.3.4 Knowledge Management

5.4 Building the Product Development System

5.5 Techniques for Developing Products and Services

5.6 New Service or Product Development Process

5.7 Design, Analysis, Development, and Full Launch


6. Managing Quality

6.1 Defining Quality

6.2 Total Quality Management (TQM)

6.3 Six Sigma

6.4 Tools of TQM

6.5 The Role of Inspection

6.6 TQM in Services

6.7 Costs of Quality

6.7.1 Prevention Costs

6.7.2 Appraisal Costs

6.7.3 Internal Failure Costs

6.7.4 External Failure Costs

6.7.5 Ethical Failure Costs

6.8 Steps Towards Conformance to Specification

6.8.1 Step 1 – Define the Quality Characteristics

6.8.2 Step 2 – Decide How to Measure Each Characteristic

6.8.3 Step 3 – Set Quality Standards

6.8.4 Step 4 – Control Quality Against Those Standards

6.8.5 Steps 5 and 6 – Find and Correct Causes of Poor Quality and Continue Improvements

6.9 Service Quality Models

6.10 Quality Theories: Deming’s 14 Points, etc.


7. Process Strategies

7.1 Four Process Strategies

7.1.1 Process Focus

7.1.2 Repetitive Focus

7.1.3 Product Focus

7.1.4 Mass Customization Focus

7.1.5 Process Comparison

7.2 Process Analysis and Design

7.2.1 Flowchart

7.2.2 Time-Function Mapping

7.2.3 Process Charts

7.2.4 Value-Stream Mapping

7.2.5 Service Blueprinting

7.3 Production Technology

7.3.1 Machine Technology

7.3.2 Automatic Identification Systems (AISs) and RFID

7.3.3 Process Control

7.3.4 Vision Systems

7.3.5 Robots

7.3.6 Automated Storage and Retrieval Systems (ASRSs)

7.3.7 Automated Guided Vehicles (AGVs)

7.3.8 Flexible Manufacturing Systems (FMSs)

7.3.9 Computer-Integrated Manufacturing (CIM)

7.4 Process Redesign

7.4.1 What Is Process Design?

7.4.2 Relationship Between Process Design and Product/Service Design

7.4.3 Objectives of Process Design

7.4.3.1 Micro Process Objectives

7.4.3.2 Standardization of Processes

7.4.3.3 Environmentally Sensitive Process Design

7.5 Effects of Volume and Variety on Process Design

7.5.1 Process Types

7.5.1.1 Project Processes

7.5.1.2 Jobbing Processes

7.5.1.3 Batch Processes

7.5.1.4 Mass Processes

7.5.1.5 Continuous Processes

7.5.1.6 Professional Services

7.5.1.7 Service Shops

7.5.1.8 Mass Services

7.6 Understanding the Potential of New Process Technology

7.7 Evaluating New Process Technologies

7.8 Developing and Implementing New Process Technologies

7.9 Redesigning and Managing Process Improvements

7.9.1 Questioning and Brainstorming

7.9.2 Benchmarking

7.9.3 Implementing


8. Location Strategies

8.1 The Strategic Importance of Location

8.2 Factors Affecting Location Decisions

8.3 Methods of Evaluating Location Alternatives

8.3.1 The Factor-Rating Method

8.3.2 Locational Cost–Volume Analysis

8.3.3 Center-of-Gravity Method

8.3.4 Transportation Model

8.4 Geographic Information Systems (GIS)

8.4.1 Using a GIS

8.4.2 The GIS Method for Locating Multiple Facilities

8.5 Service Location Strategy

8.6 Break-Even Analysis for Location

8.7 Warehouse Strategy in Logistics Networks

8.7.1 Inventory Placement

8.7.2 Autonomous Warehouse Operations

8.8 A Systematic Location Selection Process


9. Layout Strategies

9.1 The Strategic Importance of Layout Decisions

9.2 How Layout and Facility Design Influence Performance

9.3 What Makes a Good Layout?

9.4 Types of Layout

9.5 Choosing the Right Layout for an Operation

9.6 Information and Analysis Needed for Layout and Facility Design


10. Human Resources, Job Design, and Work Measurement in OM

10.1 Importance of Human Resource Strategy in OM

10.2 Labor Planning

10.3 Organizing the Operations Function (Perspectives on Organizations)

10.4 Job Design

10.4.1 Labor Specialization

10.4.2 Job Expansion

10.4.3 Psychological Components of Job Design

10.4.4 Self-Directed Teams

10.4.5 Motivation and Incentive Systems

10.5 Ergonomics and the Work Environment

10.6 Methods Analysis

10.7 The Visual Workplace

10.8 Labor Standards

10.8.1 Historical Experience

10.8.2 Time Studies

10.8.3 Predetermined Time Standards

10.8.4 Work Sampling

10.9 Ethics


11. Supply Chain Management (SCM)

11.1 Importance of Supply Chain Management

11.2 What Is a Supply Chain?

11.3 Global Supply Chain Management

11.4 Supply Chain Risk

11.4.1 Supply Chain Disruptions

11.4.2 Risk Reduction Tactics

11.4.3 Secure Supply Chains

11.4.4 Reduced Bullwhip Effect

11.5 Managing the Integrated Supply Chain

11.5.1 Issues in an Integrated Supply Chain

11.5.2 Opportunities in an Integrated Supply Chain

11.5.3 Managing Supplier Relationships

11.5.4 Ethical Issues in Supply Chain Management

11.5.5 Sustainable Supply Chain Management

11.6 Supply Chain Decisions and Models

11.6.1 Determining the Number of Facilities

11.6.2 Sourcing Decisions

11.6.3 Inventory Management Decisions

11.6.4 Transportation Decisions

11.7 Supply Chain Performance Measurement

11.7.1 Balanced Scorecard Approach

11.7.2 Key Performance Indicators (KPIs)


12. Inventory Management

12.1 Importance of Inventory

12.2 Functions of Inventory

12.3 Types of Inventory

12.3.1 Raw Material Inventory

12.3.2 Work-in-Process Inventory

12.3.3 Finished Goods Inventory

12.3.4 Maintenance, Repair, and Operating (MRO) Inventory

12.4 Inventory Management Systems

12.4.1 Independent vs. Dependent Demand Inventory Systems

12.4.2 Periodic Review System

12.4.3 Continuous Review System

12.5 Inventory Control Techniques

12.5.1 ABC Analysis

12.5.2 Economic Order Quantity (EOQ)

12.5.3 Just-In-Time (JIT) Inventory

12.5.4 Safety Stock and Reorder Point

12.6 Inventory Accuracy and Cycle Counting

12.7 Inventory in Services


13. Aggregate Planning

13.1 Nature and Strategies of Aggregate Planning

13.1.1 Definition of Aggregate Planning

13.1.2 Strategies for Matching Demand and Capacity

13.2 Aggregate Planning Options

13.2.1 Chase Strategy

13.2.2 Level Strategy

13.2.3 Hybrid Strategy

13.3 Aggregate Planning Methods

13.3.1 Graphical and Charting Methods

13.3.2 Mathematical Approaches

13.3.3 Transportation Model

13.4 Aggregate Planning in Services

13.5 Yield Management

13.6 Aggregate Planning in Global Companies


14. Material Requirements Planning (MRP) and Enterprise Resource Planning (ERP)

14.1 Nature of Material Requirements Planning (MRP)

14.1.1 Dependent Demand

14.1.2 Structure of an MRP System

14.1.3 MRP Inputs (Bill of Materials, Master Production Schedule, Inventory Records)

14.2 MRP Outputs and Benefits

14.3 Limitations of MRP

14.4 Manufacturing Resource Planning (MRP II)

14.5 Enterprise Resource Planning (ERP)

14.5.1 ERP Modules and Capabilities

14.5.2 Benefits of ERP

14.5.3 Challenges in ERP Implementation

14.6 Supply Chain Management and ERP Integration


15. Short-Term Scheduling

15.1 Importance of Scheduling

15.2 Scheduling Issues

15.3 Scheduling Criteria

15.4 Scheduling in Services

15.5 Scheduling in Manufacturing

15.6 Gantt Charts

15.7 Scheduling Approaches

15.7.1 First Come, First Served (FCFS)

15.7.2 Shortest Processing Time (SPT)

15.7.3 Earliest Due Date (EDD)

15.7.4 Critical Ratio (CR)

15.7.5 Johnson’s Rule for Two-Machine Scheduling

15.8 Advanced Scheduling Techniques

15.8.1 Finite Capacity Scheduling

15.8.2 Theory of Constraints (TOC)

15.9 Sequencing Rules and Performance Measures


16. Just-In-Time (JIT) and Lean Operations

16.1 Just-In-Time Philosophy

16.2 Elements of JIT

16.2.1 Continuous Improvement (Kaizen)

16.2.2 Pull System

16.2.3 Small Lot Sizes

16.2.4 Setup Time Reduction

16.2.5 Quality at the Source

16.3 Lean Operations Principles

16.3.1 Waste Elimination (Muda)

16.3.2 Value Stream Mapping

16.3.3 5S Workplace Organization

16.3.4 Cellular Layouts

16.4 JIT Partnerships

16.5 JIT Scheduling

16.6 Benefits of JIT and Lean Systems

16.7 Challenges in Implementing JIT


17. Maintenance and Reliability

17.1 Importance of Maintenance

17.2 Types of Maintenance

17.2.1 Preventive Maintenance

17.2.2 Predictive Maintenance

17.2.3 Corrective Maintenance

17.3 Total Productive Maintenance (TPM)

17.4 Reliability Concepts

17.4.1 Definition of Reliability

17.4.2 Reliability of Systems in Series and Parallel

17.4.3 Reliability Improvement

17.5 Maintenance Metrics and Performance Measurement

17.6 Computerized Maintenance Management Systems (CMMS)


18. Project Management

18.1 Definition and Importance of Project Management

18.2 Project Life Cycle

18.3 Project Planning

18.3.1 Work Breakdown Structure (WBS)

18.3.2 Gantt Charts

18.3.3 Network Diagrams (PERT and CPM)

18.4 Project Scheduling

18.4.1 Critical Path Method (CPM)

18.4.2 Program Evaluation and Review Technique (PERT)

18.5 Project Cost Management

18.5.1 Budgeting and Cost Estimation

18.5.2 Earned Value Management (EVM)

18.6 Project Risk Management

18.7 Project Management Software Tools

18.8 Role of the Project Manager


19. Sustainable Operations Management

19.1 Definition and Importance of Sustainability

19.2 Triple Bottom Line Approach

19.3 Sustainable Product Design

19.4 Green Supply Chain Management

19.5 Life Cycle Assessment (LCA)

19.6 Reverse Logistics

19.7 Carbon Footprint Reduction Strategies

19.8 Corporate Social Responsibility (CSR) in Operations

19.9 Sustainability Reporting and Metrics


20. Global Operations and Supply Chain

20.1 Nature of Global Operations

20.2 Global Supply Chain Strategies

20.2.1 Outsourcing and Offshoring

20.2.2 Nearshoring and Reshoring

20.2.3 Global Sourcing

20.3 Challenges in Global Operations

20.3.1 Cultural Differences

20.3.2 Political and Economic Risks

20.3.3 Currency Exchange Rate Issues

20.4 Managing Global Risks

20.5 Global Logistics and Distribution

20.6 Technology in Global Operations

20.7 Case Studies in Global Operations

Product details

  • Edition: 1
  • Latest edition
  • Published: May 1, 2026
  • Language: English

About the editor

TC

Tsan-Ming Jason Choi

Professor Tsan-Ming CHOI (Jason) is a management scientist, operations researcher and systems engineer. He is now Chair in Operations and Supply Chain Management, and Director of the Centre for Supply Chain Research at University of Liverpool Management School (ULMS). He has published extensively in leading journals in the fields of operations management, engineering management, logistics, and supply chain management. His recent research has been funded by many external funding bodies such as Research Grants Council (HK), University Grants Council (HK), M.O.E. (TW), and M.O.S.T. (TW). He is also serving the academic community as the Co-Editor-in-Chief of Transportation Research Part E: Logistics and Transportation Review, a Senior Editor of Production and Operations Management, and Decision Support Systems, a Department Editor of IEEE Transactions on Engineering Management, an Associate Editor of Decision Sciences, and IEEE TSMC-Systems, and an editorial board member of International Journal of Production Economics, International Journal of Production Research, and International Transactions in Operational Research. He is currently an external member of the engineering panel, Research Grants Council (HK) in which he helps handle reviews, give recommendations and monitor the progress of General Research Fund (GRF) proposals and funded projects. In two consecutive years under two different chief editors (2013 and 2014), he received the best associate editor awards of the IEEE SMC Society (USA). Over the past two decades, he served as an officer/exco member/secretary/treasurer of professional societies such as Production and Operations Management Society (HK), IEEE SMC Society (HK), and IEEE TEM Society (HK). Since 2020, he has been consistently ranked by p-ranking as a top 20 most productive researcher (in business and economics) in all related journal ranking lists in the world (including CABS). He is also listed as a Highly Cited Researcher by Clarivate (Web of Science) and a Top 2% scientist by Stanford University. Most recently, in February 2023, he received the JOM Ambassador Paper Award 2023 for his Journal of Operations Management paper on "green supply chain with quick response technology" published in 2020. Before joining ULMS, he taught at The Chinese University of Hong Kong (CUHK), The Hong Kong Polytechnic University (PolyU) and National Taiwan University (NTU), altogether for over two decades. In particular, he was honoured as a Yushan Fellow Professor at NTU, a President’s Award Winning Professor at PolyU, and a distinguished alumnus of CUHK's Faculty of Engineering.