This chapter looks into innovation and continuous improvement. It explores the different levels of novelty in developing new products or services while outlining the approaches to new product development (NPD) and new service development (NSD) processes. Additionally, the chapter cites the principles and practice of continuous improvement based on the continuous review of process performance and the systematic adjustment of processes to enhance performance. It also includes the learning organization as a template for organizations in terms of policies and procedures on learning. Also, open innovation is defined as the formal discipline and practice of leveraging the discoveries of others as input for the innovation process through formal and informal relationships.
Chapter
Innovation and Continuous Improvement
Chapter
Introduction to Operations Management
This chapter introduces the concept of operations management. It notes the simple definition of operations management, which is the planning and organizing of the production of manufactured goods and delivery of services. Additionally, the chapter discusses the development and nature of operations management. It lists the basic issues that need to be covered in organizational design: nature of hierarchy, degree of centralization, the extent of formalization, and level of complexity. The chapter then enumerates the six organizational forms such as simple, functional, divisional, conglomerate, hybrid, and virtual. It looks into the difference between services and manufacturing. Moreover, the chapter looks into the role of an operations manager as well.
Chapter
Lean, Agile, and Mass Customization Strategies
This chapter focuses on lean, agile, and mass customization strategies. It discusses lean production alongside its main principles which are often associated with just-in-time (JIT) operations. The chapter then includes the eight wastes of lean production alongside the application of tools and techniques for lean production like single minute exchange of die and kanban. It explores total productive maintenance wherein it focuses on the condition and maintenance of equipment. Next, the chapter explains the development of lean thinking with regards to its application to customer processing operations. It adds the tools used to implement agility. The chapter then expounds on the process of mass customization.
Chapter
Locating, Designing, and Managing Facilities
This chapter explores the process of locating, designing, and managing facilities. First, it explores how firms select locations for their facilities by referencing a number of factors such as accessibility to raw materials and energy supply. Moreover, the chapter looks into how to determine the layout depending on different process types. It notes servicescape as the physical environment of a service operation encompassing the parts of the facility used by customers. On the other hand, the chapter discusses trends in operations design and the concept of facilities management. It adds loss control wherein policies and procedures are designed to ensure the security of all of an operation’s assets.
Chapter
Managing Capacity and Demand
This chapter looks into managing capacity and demand. It defines capacity as the maximum possible output of an operation or process in a given time. The chapter explores different types of capacity measurement alongside its management in a customer processing operation. Additionally, it discusses alternative methods for forecasting demand and managing capacity by referencing time series forecasting, causal forecasting, qualitative techniques, level capacity, chase demand, and demand management. The chapter also lists the four types of labour flexibility. It mentions revenue management as the system for operators to maximize profitability through their senior management in operations.
Chapter
Managing Materials and Inventory Performance
This chapter focuses on materials and inventory performance. It explores inventory management and the different types of inventory: raw materials, work in process, finished goods, cycle, buffer, anticipation, and pipeline inventories. The chapter highlights the importance of keeping an inventory, as demand is not always predictable. It then notes inventory management as the planning and controlling of inventories in order to meet the competitive priorities of the operation. In addition, the chapter explores the strategies in materials management, production planning, and control systems. It also narrates the developments in inventory management by referencing just-in-time, radio frequency identification, and electronic data interchange.
Chapter
Managing Projects, Crises, and Business Continuity
This chapter focuses on managing projects, crises, and businesses’ continuity. It clarifies the difference between project management and operations management by referencing tools used in project management. A project is a temporary endeavour with a definite beginning and end, which appear alongside limitations and agreed costs. Thus, project management is defined as the planning, organizing, directing, and controlling of company resources for a relatively short-term objective. Additionally, the chapter looks into waterfall project management and agile management. It explores the principles of risk management while differentiating between a crisis and disaster. Moreover, the chapter discusses businesses continuity planning which has five main phases: impact analysis, solution design, implementation, testing and organization acceptance, and maintenance.
Chapter
Managing Quality
This chapter discusses quality. It clarifies quality in terms of operations perspective as fitness for purpose, service, durability, and reliability. Moreover, the chapter looks into the quality gap model as it is used to identify five main ways in which quality may be lower than desired. It also explores the differences between quality inspection, quality control, quality assurance, total quality management, and continuous improvement. The chapter then lists major tools and techniques for managing quality such as poka-yoke and quality circles. It narrates the alternative approaches to the external accreditation of quality by referencing ISO 9001, the Customer Service Excellence scheme, and the EFQM scheme.
Chapter
Managing Supply Chain Relationships
This chapter discusses how to manage supply chain relationships. It looks into the structure of supply chain management by referencing supply chains, procurement, and logistics. Supply chain management is regarded as the planning, design, organization, and control of the flow of information and materials along the supply chain in order to efficiently meet customer requirements. Additionally, the chapter explores the developments and trends in supply chain management such as third-party logistics or e-procurement. It also includes the types of suppliers in relation to single sourcing and multiple sourcing while explaining the types of contractual relationships with suppliers.
Chapter
Managing the Service Encounter
This chapter explains the concept of service encounter which is the period of time the customer and the service organization interact. It shares how to manage service encounters with customers. Next, the chapter explores queueing theory alongside the psychology of waiting lines. It lists the reasons for service failures such as untrained employees, technological breakdown and first-time customers, and alternative ways to recover from failure. The chapter then includes the concept of prosumption and the roles of customers amidst service operations. Moreover, it cites how to manage online service encounters such as managing traffic and converting visitors into paying customers.
Chapter
Managing the Workforce and Technology
This chapter looks into workforce and technology management. It explores how labour structures impact people management in operations and alternative approaches to rewarding employees. The chapter also discusses the benefits of job enlargement and job enrichment in line with empowerment in the workplace. It notes the different types of organizational culture such as power culture, role culture, task culture, and person culture. Additionally, the chapter includes the concept of a socio-technical system. It then provides a list of different types of technology and their respective roles in the operation of material processing, socio-technical systems in customer processing, and information processing.
Book
Peter Jones and Peter Robinson
Operations Management starts off with Part A which is about understanding operations management. The second part looks at managing operations and covers operations processes and life cycles; locating, designing, and managing facilities; managing supply chain relationships; managing materials and inventory performances; managing capacity and demand; and the service encounter. It also looks at quality, the workforce and technology, and projects. The last part is about corporate strategies. It covers operations strategy and international operations, customization, and innovation and continuous improvement.
Chapter
Operations Processes and Life Cycles
This chapter looks into operations processes and life cycles. It notes how process types have evolved through the craft, mass production, and strategic productions eras. The chapter explores the five basic types of materials processing operations such as project, job shop, batch production, assembly line, and continuous flow. It also includes the list of three basic types of customers: mass service, service factory, and service shop. In addition, the chapter discusses the product life cycle and service firm life cycle. It shares the principles of good process design using various types of process charts while referencing characteristics like consistency and cost-effectiveness.
Chapter
Operations Strategy and International Operations
This chapter explores operations strategy and international operations. It notes the relationship between corporate, business, and operations strategy in line with the relationship between operations, marketing, human resource, and finance strategies. The chapter also includes the comparison between market-driven and the resource-based view of operations strategy. It discusses the concept of business models as well. Next, the chapter looks into the internationalization and globalization of markets while identifying the challenges and alternative approaches in manning an international operation. It then cites the difference between contemporary operations strategies and how it is used to achieve order winners.
Chapter
Winning Customers and Competing Effectively
This chapter discusses how to win over customers while competing effectively in the market. It looks at the concept of order qualifiers (OQs) as characteristics of a product or service with recognized quality standards, while order winners (OWs) are those characteristics that contribute to winning business from customers. The chapter lists the five main performance objects: cost, quality, flexibility, dependability, and speed. It then discusses the seven types of market structures such as perfect competition, imperfect competition, oligopoly, duopoly, monopoly, oligopsony, and monopsony. Additionally, the chapter explores alternative approaches to customer market segmentation. It also notes how companies compete on the basis of order qualifiers and order winners.
