TEACHING OPERATIONS MANAGEMENT FROM A SCIENCE OF MANUFACTURING

Recently, there has been much concern over the dumbing down of production and operations management (pom) courses in response to the repudiation of the theory-heavy operations research (or) approach that became dominant during the 1970s. However, although almost everyone agrees that a new POM framework is needed, there is as yet little agreement on what it should be like. As a result, there is currently a huge variance among POM courses at different universities, ranging all the way from traditional OR courses to almost purely anecdotal case-oriented courses. Although academics have struggled with the search for an appropriate level of methodological rigor in POM courses, our customers (i.e., students and the firms that hire them) have been inundated by a blizzard of management buzzwords. Although many of these undoubtedly contain kernels of truth, the very nature of the buzzword approach is such that it provides little balanced guidance as to what methods work well in a given situation. In recognition of these disparities, POM researchers have begun trying to systematically describe the underlying behavior of production systems. The goal is to provide a framework that will help organize educational approaches and business practices in a consistent fashion. In this paper, we describe our attempt at the needed “science of manufacturing,” which we call factory physics, and illustrate how it fits into a new paradigm of POM teaching.     

INTERNATIONAL TECHNOLOGY AND OPERATIONS MANAGEMENT: RESOURCE TOOLKIT FOR RESEARCH AND TEACHING

Increasing globalization has affected the way that firms are managed today. While its impact on competitive strategy, marketing, and finance has been well accepted and well studied, its effect on the firm's technology and operations has not. This paper provides resources for research and teaching in international technology and operations management (itom). Included are an extensive bibliography of papers and an overview of large-scale survey research initiatives in the area. By bringing together and categorizing this body of work, we hope to facilitate further work in the area and to help define ITOM'S scope.     

INTEGRATED OPERATIONS: A PROPOSAL FOR OPERATIONS MANAGEMENT TEACHING AND RESEARCH

This paper, addressed to professors of operations management (om) in research institutions, suggests that the long-term academic viability of our discipline requires the generation of a theory uniquely associated with the practice of OM. Such a theory will rest on foundations laid by other disciplines, but must find its own unique synthesis that attends to the problems of OM practice. The paper proposes a framework that recognizes physics, social psychology and philosophy as foundational disciplines for an integrative theoryof OM and suggests which concepts from those disciplines may find voice in such a theory.     

IMPLEMENTING INITIATIVES ON QUALITY: AN INTRODUCTION TO THE SPECIAL ISSUE ON TOTAL QUALITY MANAGEMENT

In the early 1980s, companies around the world, learning from the Japanese experience, saw that they could address their severe competitive problems related to productivity and quality only by looking at the entire set of processes and organizational relationships in the context of the customer's needs. This approach was termed total quality management (TQM). As companies pursue quality-related initiatives, they must deal with a number of issues; some of these issues are addressed here: measurement of benefits, feedback and recognition, work-teams, teaching continuous improvement, and enhancing the effectiveness of statistical process control charts.     

EFFECTS OF ENVIRONMENTAL MANAGEMENT SYSTEMS ON ENVIRONMENTAL MANAGEMENT PRACTICES AND OPERATIONS

To date, it is unclear as to how Environmental Management Systems (EMS) are implemented and what effects these systems have on other environmental and operational practices. This study reports empirical insights to EMS practices based on the largest EMS survey of manufacturing firms in the United States. The objective of the study is to test for a relationship between environmental management systems and perceived operations performance while considering direct and indirect effects of various environmental practices. The results of this study are supported by several field studies and provide a new source of information regarding EMS theory development. The results also indicate a positive relationship between an EMS, the environmental practices a firm engages, and operations performance measures.     

INVENTORY MANAGEMENT AND CAPITAL BUDGETING: A PEDAGOGICAL NOTE

This paper shows, through an alternative development of the lot size model, how the methods of capital budgeting can be logically applied to the determination of optimal inventory levels. There is no reason why inventory management needs be treated any differently than the management of fixed assets. The rule that the stock of fixed assets should be expanded until the marginal rate of return equals the marginal cost of capital results from maximizing the present value of profits as a function of the investment level. In a like manner, the “square root” formula from inventory theory results from maximizing the present value of profits as a function of the investment in inventory. In addition, formulating the inventory problem as a capital budgeting problem has advantages for incorporating deterioration, obsolescence, and other costs into the model in a more logical and less intuitive way.     

CONSTITUENCIES OF JOURNALS IN PRODUCTION AND OPERATIONS MANAGEMENT: IMPLICATIONS ON REACH AND QUALITY*

I analyzed the contributions made by members of the following constituencies in terms of the number of articles published in the Journal of Operations Management (JOM), Manufacturing and Service Operations Management (M&SOM), and Production and Operations Management (POM): the top 20 U.S. business schools and the top 7 non‐U.S. business schools as ranked by Business Week or U.S. News and World Report, business and government organizations, U.S. business schools ranked between 21 and 50, non‐U.S. business schools not included above, and U.S. business schools not included above. I also analyzed the contributions made by U.S. business schools with top 10 programs in production and operations management; 9 of which are also in the list of top 20 U.S. business schools. Authors from the schools with top 10 programs in production and operations management contributed 20.2% of the articles published in POM and 3.5% of the articles published in JOM during 1997‐2001. They contributed 24.6% of the articles in the eight issues (from July 2000 through June 2002) of M&SOM. During these periods, authors from the top 27 schools contributed 29.3% of the articles published in POM, 9.4% of the articles published in JOM, and 37.4% of the articles to the eight issues of M&SOM. Also during the same periods, authors from business and government organizations contributed 6.6% of the articles published in POM, 1.9% of the articles published in JOM, and 5.8% of the articles published in the eight issues of M&SOM. The findings reported in this paper reflect the reach of the three journals and the perceptions of various constituencies regarding journal quality. The findings about POM and JOM have a very high degree of validity because both journals are more than 10 years old and have well‐established constituencies. The conclusions about the M&SOM constituencies are tentative because it is about 3 years old, and it is still developing its constituencies.     

DELIVERY GUARANTEES AND THE INTERDEPENDENCE OF MARKETING AND OPERATIONS

Delivery guarantees are an important element in a customer satisfaction program. When setting delivery guarantees, a firm must consider customer expectations as well as operational constraints. We develop a profit‐maximization model in which a firm's sales organization, with incomplete information on operations' status, solicits orders and quotes delivery dates. If obtained, orders are processed in a make‐to‐order facility, after which revenue is received, minus tardiness penalty if the delivery was later than quoted. We specify conditions for an optimal log‐linear decision rule and provide exact expressions for its effect on arrival rate, mean processing time, and mean cycle time.     

PEDAGOGICAL CHALLENGE: TEACHING INTERNATIONAL PRODUCTION AND OPERATIONS MANAGEMENT COURSES

There should be two distinctly different pom introductory courses (or even tracks) for MBAs. Course one (called pom) would consist of traditional pom materials emphasizing domestic POM course materials. Course two, called international production and operations management (ipom), would focus on international aspects of pom, emphasizing cross-boundary operations. Training of instructors differs significantly for the two courses. ipom accentuates operations crossing borders where different languages, cultures and currencies apply. The ipom syllabus employs cases and examples based on companies and/or divisions located in a great variety of countries. Three important drivers of the international pom curriculum should be recognized: (1) supply chain management with ipom responsible for coordinating sources-of materials as well as making and delivering goods and services across global boundaries, (2) portfolio management because ipom can reduce risks by geographically diversifying operations, and (3) capabilities management because ipom must spot, develop and implement special global opportunities. Teaching how these three international drivers interact challenges the pom field to provide proper curriculum development and instructor methodology.