A NEW PARADIGM FOR TEACHING INTRODUCTORY PRODUCTION/OPERATIONS MANAGEMENT

This paper postulates that the perception among students that operations management is a tedious, irrelevant subject is a symptom of the lack of a conceptual framework that effectively communicates the importance and relevance of the operations function in a firm. The first half of this paper discusses traditional frameworks, those most frequently found in introductory production and operations management (pom) textbooks, and several alternative approaches to teaching an introductory POM course. The discussion questions whether any of these existing frameworks is sufficient to meet the challenges faced while teaching POM in today's environment and identifies what characteristics an effective framework should possess. These characteristics include defining the scope and bounds of the field, capturing its integrative and system aspects, providing a visible depiction of the framework to aid comprehension, and promoting higher-level thinking (i.e., analysis, synthesis, and criticism) to deepen understanding. This discussion concludes that no current framework meets all of these criteria, therefore there remains a need for a more effective approach for introducing POM. The remainder of the paper describes one approach to conceptualizing the field that satisfies these criteria.     

The impact of culture on best-practice production/operations management

Significant work has been completed in arriving at what have been put forward as `best practices' for a variety of facets of production/operations management (POM). Organizations are becoming global in their operations. In this environment, there is a desire to learn from this 'proven' best practice and to use the generic ideas, concepts and techniques 'world-wide'. However, it is becoming apparent from a range of fragmented evidence that 'best practices' developed and successful in one context are not necessarily directly transferable to a comparable alternative. More detailed examination suggests that national culture has a significant role to play in determining the precise nature of a best practice in POM, and how universal it might be in its application. This paper examines structures within which to view facets of POM in order to identify one that will facilitate exploration of cultural issues. There follows an identification of what might be considered to be an appropriate range of cultural dimensions along which POM best practices may be considered. A review of the evidence from the literature of cultural impacts on aspects of POM is presented. This is used to support the development of a generic framework to examine this interface more comprehensively.     

An Integrative,Experiential Approach to Production Management Education

This paper addresses the important relationship between production and operations management (POM) and information technology. An approach to POM education is presented in which information technology is used to create an experiential learning environment that integrates the topics taught in POM courses. Results of an implementation of the proposed approach are presented and implications are discussed for POM education.     

INTRODUCTION: SHAPING THE FUTURE OF MANUFACTURING AND SERVICE OPERATIONS

The challenges and opportunities in production and operations management (POM) are almost unlimited because in the world economy, manufacturing andservice operations account for more than 10 trillion dollars per year and in any single industry, the performance varies widely from country to country and from organization to organization. The goal of Production and Operations Management is to contribute to improving the management of manufacturing and service operations all over the world. The editors and reviewers judge the papers published in the journal for their contribution to improving of business practices and to further closeness between research and practice. The journal will publish high quality papers on a broad range of topics in POM, and it encourages all paradigms, old and new. We also invite managers from around the world to describe specific POM problems that provide challenging opportunities for academic research.     

PRODUCTION AND OPERATIONS MANAGEMENT'S NEW “REQUISITE VARIETY”

This essay is based on my plenary address at the second annual meeting of the Production and Operations Management Society on November 11, 1991. I propose that as the competitive environment in which production and operations management (POM) practitioners operate becomes ever more demanding and the problems about which POM academics study and teach become more complex and interrelated, we need new approaches both in our teaching and our research. I describe five ways of expanding our “requisite variety” of capabilities.     

An Integrative Framework of the Information Systems Development Process*

Despite more than 25 years of research on the processes and outcomes of information systems development in organizations, deficiencies exist in our knowledge about the effective management of complex systems development processes. Although individual studies have generated a wealth of findings, there is a need for a cumulative framework that facilitates interpretation of what has been learned and what needs to be learned about the process of information systems development. This paper reviews prior research on ISD processes and identifies the different types of contributions that have been made to our growing knowledge. More important, it generates a cumulative framework for understanding the process of ISD that could provide a valuable template for future research and practice.     

Finding and Implementing Energy Efficiency Projects in Industrial Facilities

This study addresses the challenges of finding and implementing profitable energy efficiency (EE) projects, a critical foundation for sustainable operations. We focus on manufacturing enterprises, but many of our findings apply also to the back office of service operations. Our starting point is that, in nearly every industrial enterprise, there are many profitable EE projects that could be implemented but are not. An oft‐cited hindrance to implementation is the lack of an internal management framework in which to find, value, and execute these projects. Using a conceptual approach, we rely on proven sustainable operations tools to develop such a framework. We identify three major value drivers of EE projects: savings intensity, “green” image, and project complexity. We then describe a framework for understanding the context of EE projects in industry, with an underlying analytic foundation in optimal portfolio analysis. A case study of a large manufacturing site is used to illustrate emerging best practices—based on Kaizen management principles—for integrating EE project management with operations, engineering, and strategy.     

Martin K. Starr: A Visionary Proponent for System Integration,Modular Production,and Catastrophe Avoidance

Martin K. Starr facilitated the creation of an identity for production and operations management (POM) as an academic discipline. This paper aims to summarize Starr's substantial contributions to scholarly inquiry on system integration and interfunctional coordination, modular production, and catastrophe avoidance. Even after four decades, we describe how his legacy in these areas continues to define several major drivers of operations and supply chain management research and practice. Starr has influenced several generations of students, professors, and executives with his writings, teaching, and leadership roles in the POM community that include 32 years on the faculty of the Columbia School of Business, 15 years as Editor‐in‐Chief of Management Science, and presidency of the Production and Operations Management Society.     

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.     

DOES INTERNATIONAL OPERATIONS MANAGEMENT NEED A SEPARATE PERSPECTIVE?

This essay argues that it is difficult to justify intellectually a separate subject of international operations management. Nevertheless, courses with titles like that abound and other professional activities are centered on international operations, at least in the United States. Of course, there are real differences in management activities in different parts of the world that must be contended with. A comparison of European and U.S. managers' exposure to international business suggests that there is a higher startup cost for U.S. managers to do so. Drawing an analogy between the management of operations and the solving of a huge mathematical programming problem implies that there are few new variables introduced by going international, but that the weights on existing variables can change substantially. Therefore, even though difficult to justify intellectually, continuing to treat international operations management separately may provide us some short-term advantages. By helping us focus our attention on the important variables that change, it may provide us the insights to help reduce the startup cost for U.S. managers entering international operations.     

Ben & Jerry's: A case study in Catholic Social Teaching?

For more than a century, Popes have spoken to the issue of proper treatment of employees. Through several encyclicals, they have collectively constructed a framework that offers specific guidance for the management of human resources. Ben & Jerry's Homemade, Inc. is a successful producer of super-premium ice cream. Although it in no way professes to practice Catholic Social Teaching in its management, the parallels between its approach and the Catholic model are striking. This article explores those parallels to contemplate to what extent an organization can realistically implement Catholic Social Teaching in a competitive environment.     

Operational Risk in Financial Services: A Review and New Research Opportunities

We present a framework to describe and analyze operational risk in financial services from an operations management perspective, focusing in particular on process design, process management, and human behavior aspects. The financial services industry differs from other service industries in ways that affect the nature of the operational risks it is subject to. In recent decades, many books and papers have focused on operational risk in financial services; however, this literature has focused mainly on the conceptual and statistical aspects of operational risk management and not on its operational aspects. Operational risk in financial services has not received much attention from the operations management community. The framework presented here is based on the premise that operational risk in financial services can reap significant benefits from research done in the theory and practice of operations management in manufacturing industries as well as in other services industries. The objective of this study is to propose particular challenges and questions raised in the practice of operational risk management that may stimulate future research in this particular area of operations management.     

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.     

DEVELOPING POM FACULTIES FOR THE 21ST CENTURY

Having added total quality management (tqm), operations strategy, new product development, and many other topics to its repertoire over the past two decades, operations management is being pushed-by practitioners and students alike-to extend its reach both horizontally (to encompass the whole supply chain and the interface with other functions) and internationally. Moreover, the increasing sophistication of computer technology and the growth of the intemet are expanding the teaching and research methodologies that can be used to address these complex issues. Meeting the challenges posed by this ever-broadening conceptualization of our mission and the new tools available to us will require more than simply new knowledge and new courses. It also will require an influx of new people having very different backgrounds than in the past. We have to learn how to attract such people, how to prepare them to be effective teachers and researchers in production and operations management (pom), and how to work effectively with them. The locations of faculty, students, and potential partners in the learning experience also will be transformed, forcing us to reconsider how we organize to do our work and when and where we do it.     

Data mining driven DMAIC framework for improving foundry quality – a case study

Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) methodology has been widely used across industries as the best systematic and data driven problem solving approach for quality improvement. Statistical Design of Experiment (DOE) is used in the ‘Improve’ stage for obtaining optimal process settings for significant variables contributing towards quality improvement. But, DOE is an offline activity requiring time and other resources for conducting experiments and analyses. Further, there are many small and medium scale enterprises that cannot afford to conduct DOE. Under such practical constraints, it is desirable to apply DMAIC using online process data under day-to-day production situations or with little changes in process settings without compromising production. In this article, we propose a DMAIC framework, driven by data mining techniques for defect diagnosis and quality improvement where historical and online process data can be effectively utilised. We have used two decision tree algorithms namely, Classification and Regression Tree and Chi-squared Automatic Interaction Detection in developing the proposed framework. The proposed approach is applied in an Indian grey iron foundry where conducting DOE is not a feasible option for the management. The result demonstrates a significant reduction in casting defect and validates the practical viability of this approach.     

Making sense of visual management through affordance theory

Visual management is much used within operations management practice, particularly in association with process improvement initiatives in diverse areas such as production and healthcare. The practitioner literature abounds with suggested best practice. However, there is little attempt to theorise about why the design and use of ‘visual’ devices for such process improvement works in practice. Within this paper we describe a novel theory of operation which highlights the role that material and visual artefacts proposed by visual management practitioners play within particular ways of organising work. We develop an innovative way of employing the theory of affordances to explain how first- and second-order affordances, situated around the visual devices at the heart of visual management, connect three domains of action, which we refer to as articulation, communication and coordination. Our analysis of three cases from healthcare, clothing manufacturing and software production help ground the theorisation discussed.     

Contextualist-retroductive case study design for strategic asset management research

Abstract

This paper develops a tailored case study design for strategic asset management research. It draws on the notions of ‘contextualist approach’ and ‘retroductive strategy’ used in case study research, and follows the multiple embedded-case design advocated within qualitative research. Using a published asset management research study as a primer, it demonstrates the application of the proposed research design and its methodological rigour. This research design could serve as a reference framework, as well as a research instrument, for guiding asset management research. As such, it facilitates the development of theory that accounts for the multi-faceted nature and current priorities of asset management. Overall, this research design helps determine what activities to be incorporated into an asset management program to enhance an organization’s ability to capture value from its operations system. In so doing, it promotes a holistic perspective on asset management that is currently lacking in the literature.     

INTRODUCING INTERNATIONAL ISSUES INTO OPERATIONS MANAGEMENT CURRICULA

As the world moves toward a global economy, it is increasingly important that operations management courses prepare students to address globalization issues. The purpose of this paper is to contribute to the dialog concerning how international topics are best incorporated into operations management curricula. On the basis of the results of a survey of operations management academicians worldwide, current course offerings are cataloged and topic areas critical to the globalization of operations are identified. Four major reasons for studying international operations management are proposed, which provide the basis for recommendations on how international topics can be introduced into established operations courses and for the design of an elective course in global operations. Finally, teaching materials relevant to international operations are surveyed.     

Linking long-term capacity management for manufacturing and service operations

For firms that combine manufacturing and service operations in one system, the task of managing capacity is not straightforward. New goods and services may not have the same set of competitive priorities, and the models and concepts available in the literature for service operations differ from those for manufacturing operations. We address this problem and review the concepts and models for capacity management in the long term in both streams of literature, i.e. manufacturing and services, to develop a unified framework for manufacturing and service operations. The framework creates transparency between new goods manufacturing and service operations, since the same long-term capacity management structure is used for both product types, as well as between capacity strategy and planning strategy, since new goods and services are treated simultaneously. In the framework, the concepts of chase and level strategies are redefined for service operations to allow for integration with manufacturing operations. A case study demonstrates the usefulness of the integrated approach for long-term capacity management.     

Designing Service Level Agreements for Inventory Management

Service level agreements (SLAs) are widely employed forms of performance‐based contracts in operations management. They compare performance during a period against a contracted service level and penalize outcomes exceeding some allowed deviation. SLAs have a number of design characteristics that need careful tuning to ensure that incentives are properly aligned. However, there is little theoretical research in this area. Using an example of an SLA for outsourcing inventory management, we make a number of recommendations. First it is preferable, if possible, that penalties be proportional to the underperformance rather than lump‐sum ones. This goes a long way towards mitigating strategic (“gaming”) behavior by the supplier. Second, it might be thought that giving “bonuses for good performance” rather than “penalties for bad performance” are essentially identical apart from the former being a more positive approach to management. This turns out to be incorrect in the case of large percentage service rate targets and that penalties will normally be preferred by the buying firm. Third, in order not to incorrectly penalize underperformance resulting purely from “noise” rather than supplier efforts, management might think it best to make allowed deviations from the target generous. Again intuition is not a helpful guide here: for proportional penalties, acceptable performance deviations should be close to the target. Although these results come from a particular inventory application, it is likely that the lessons are applicable to SLAs in general.