OM (First Edition) (ISBN 0-324-66255-6 and 0-32466295-5)

Errata
Chapter 3: Measuring Performance in Operations
Page 47, Solved Problem. The dollar amount on the fourth line from the bottom should
read $6,250,000 rather than $6,500,000.
Chapter 6: Goods and Service Design
p. 98, Solved Problem. Change last sentence to read This means, for example, if the
deviation is 0.010, the firm can expect an average loss per unit of
L(0.51) = 125,000(0.010)2 = $12.50 per part
Page 110, Problems, Activities, and Discussions. Problem 1. The number of parts
produced should be 10 rather than 1,000.
Chapter 7: Process Selection, Design, and Analysis
Page 124, Exhibit 7.7. In the top box, the last line should read per hour rather than per
order.
Page 126, Formula 7.1
Utilization (U) = Resources Demanded
Resource Availability (Capacity)
Page 127. Exhibit 7.8.
The first item in column 1 should read, Order arrival rate (given)demand.
The fourth item in column 1 should read, Output per time period (capacity).
Page 127. Exhibit 7.10.
The first item in column 1 should read, Order arrival rate (given)demand.
The fourth item in column 1 should read, Output per time period (capacity).
Third item in column 5, Work Activity #4 (Oven operation) should read 4 ovens rather
than 4 chefs.
Page 130, Problem 10. Should read:
A manufacturer of air conditioner compressors is concerned that too much money is tied
up in its value chain. Assuming 50 weeks in a year, sales are $20 million per week, raw material (RM)
inventory is $50 million, work-in-progress (WIP) inventory in production is $20 million, finished goods (FG)
inventory averages $30 million, and average outstanding accounts receivable (AR) is $60 million. The value chain
is:
RM Inventory WIP in Production Finished Goods Accounts Receivable
b. Reword question to read:
What is the total flow time in weeks of a throughput dollar using Littles Law?

d. Reword the question to read:

What is the best candidate for freeing up dollars for the air conditioner manufacturerRM, WIP, FG, or AR?

Chapter 8: Facility and Work Design

Page 141.
Equation [8.6] should read:
Assembly-line efficiency = t/(N x CT)
Last paragraph before the heading for section 2.2 Line Balancing Approaches, second
sentence: delete the word minutes after 0.67.
Page 142.
After the first paragraph, insert a division sign in the second line of equations, as follows:
=[(7.2 hours/shift)(60 min/hr)]/(72 units/shift/day)
Page 143, left column.
Assembly-line efficiency = t/(NCT)
= [9.4/(26)]
Page 149. Problem 10.
Change the shift output for (a) from 80 to 60.
Change the shift output for (b) from 30 to 40.
Chapter 11: Forecasting and Demand Planning
Page 207, Exhibit 11.18. Delete material in parentheses in Exhibit title.
Chapter 14: Operations Scheduling and Sequencing
Page 268. Balloons Aloha Case Study
Question 3 should read: Compare the answers to questions 1 and 2.
Chapter 15: Quality Management
Page 286. Problems, Activities, and Discussions
Problem 7 should read: Develop cause-and-effect diagrams for any one of the following
problems:
Chapter 16: Quality Control and SPC
Page 306. Title of the case study should be Dean Door Corporation.
Chapter 18: Project Management
Page 332, Exhibit 18.7. The activity identified as 1 should be activity I.
Page 335. Change sentence in right-hand column to read, For example, activities F, H, J,
and K cannot be crashed.
Page 340, Solved Problem.
In the diagram, change the slack time for activity A from 2 to 0.

The first sentence under One-Week Crash Options should read: We might first look at
activities common to both critical paths (A-B-D-F and A-C-D-F), namely A and D, and
consider crashing each of them individually.