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.     

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.     

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.     

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.     

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.     

STRATEGIC PRODUCTION COMPETENCE: CONVERGENT,DISCRIMINANT, AND PREDICTIVE VALIDITY

A resource-based construct of manufacturing competence, termed strategic production competence, is examined with respect to its convergent, discriminant, and predictive validity. The construct evaluates manufacturing performance across a comprehensive domain of competitive priorities relative to item importance and performance. Data from an earlier study of furniture firms (n = 65) are used for statistical testing. The results establish the convergent and discriminant validity of strategic production competence and show that it is positively related to business performance.     

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.     

DEVELOPING SOPHISTICATED QUALITY IMPROVEMENT APPROACHES THROUGH BUSINESS-ACADEME COLLABORATIONS: INTRODUCTION TO THE SPECIAL ISSUE

The pursuit of better performance has led to a number of business-academe collaborations. These collaborators have developed a number of sophisticated approaches that go far beyond such traditional simple methods as benchmarking against the best company, Ishikawa diagrams on feedback and control, Pareto diagrams, incentive systems based solely on output or quality, standard process control charts, and separate treatment of control charts and product inspection. The authors in this special issue report on approaches like benchmarking industrial performance through industry studies; the use of an artificial-intelligence statistical-tree growing method to analyze complex customer service data; an incentive system based on the total quality management (TQM) concepts of continuous improvement, teamwork, adaptation to change, and a focus on customer satisfaction; and integration of product inspection and process control. Because of the continuing widespread interest in TQM, there is an opportunity to take stock of how successful TQM initiatives have been and how we should consolidate and further extend the knowledge in TQM. Two of the papers report on the gap between what organizations espouse as TQM and what they actually implement and on the literature on TQM.     

A SINGLE-MACHINE SCHEDULING MODEL WITH FIXED-INTERVAL DELIVERIES

We consider an environment where a production facility modeled as a single machine needs to assign delivery dates to several orders and find a feasible sequence. Tardy jobs are not allowed. The delivery dates are to be at prespecified fixed intervals. The objective is to minimize the due date penalty and the cost of earliness. We provide a dynamic programming-based solution procedure that runs in polynomial time. We develop several dominance results that reduced the computational requirement by an order of magnitude in our computational study.     

THE STATIONARY BEER GAME

This paper presents a variant of the popular beer game. We call the new game the stationary beer game, which models the material and information flows in a production‐distribution channel serving a stationary market where the customer demands in different periods are independent and identically distributed. Different players, who all know the demand distribution, manage the different stages of the channel. Summarizing the initial experience with the stationary beer game, the paper provides compelling reasons why this game is an effective teaching tool.     

EVALUATING THE TRADE-OFFS BETWEEN IDLING AND SHUTTING DOWN PRODUCTION LINES IN PROCESS INDUSTRIES

The costs of starting-up and shutting down production lines (and plants) in a process industry are often quite high. Therefore, when a plant's capacity significantly exceeds its forecast demand over an annual planning horizon, a manufacturer must either plan temporary production line shutdowns during the year, or plan to temporarily idle production lines without formally shutting line(s) down. The trade-offs between these two strategies can be complex. In this paper, we propose a methodology to evaluate the impact of both strategies on a plant's production costs by developing an analytical model based on the authors' experience with several process industries.     

A PAVEMENT MANAGEMENT DECISION SUPPORT SYSTEM

We present a pavement management expert system developed by the University of Wisconsin-Madison and implemented within a geographical information system for the Wisconsin Department of Transportation. The system uses pavement data regularly collected on the state's 12,000 miles of highway to assist engineers, planners, and budget analysts' management decisions about pavements to be included in 6-year improvement and 3-year maintenance programs. The system has a three-layer architecture. The lowest level suggests treatments for each of a large number of small segments of highway. The middle layer aggregates segments, suggests alternative treatments, and estimates the cost of each. The top layer prioritizes the projects and incorporates them into intermediate-range plans. The geographical information system environment enables integration of existing databases within the system using a topologically structured geographic database and specialized software.     

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.     

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.     

A COMPARISON OF RULES FOR ALLOCATING SETUP-REDUCTION INVESTMENTS IN A CAPACITATED ENVIRONMENT

This paper builds on a recent empirical study of the setup-reduction process that suggests setup-reduction proceeds through three major stages and that each stage is dominated by a particular type of investment function. Specifically, it examines the question of how to best prioritize investments during the stage that emphasizes standardizing setups across a work center. We compare different investment-allocation rules in a multi-item, capacity-constrained, dynamic demand environment under a variety of cost, demand, and investment assumptions. This analysis shows that significant differences in benefits can be achieved depending on the way setup-reduction investments are prioritized.     

AN INTEGRATIVE SUMMARY OF DOCTORAL DISSERTATION RESEARCH IN QUALITY MANAGEMENT

Since 1980, practitioner interest in the field of quality management (qm) has grown significantly, resulting in academic researchers embracing QM as a legitimate discipline of study. One approach to evaluating the intellectual health of a discipline is an examination of doctoral dissertation research. This work both complements and extends other published reviews of the quality management discipline by analyzing doctoral dissertation research since 1981, categorizing this research, examining shifts in major research themes, evaluating data collection and analysis methodologies, and discussing general trends in this research area. Our findings suggest that the challenges in QM have become more interdisciplinary and integrated, and reveal an encouraging trend toward more rigorous research methodologies and the increased use of theories from other disciplines, leading to a more mature body of research in this field.     

PRACTICE‐FOCUSED RESEARCH ISSUES FOR SCHEDULING SYSTEMS*

Scheduling research has had relatively little impact on manufacturing practice, yet within the last several years, there has been an explosive growth in the development and implementation of computer‐based scheduling systems in industry. Changes in the environment have increased the stakes and the opportunities for the results of scheduling research to influence manufacturing competitiveness. This paper draws on field‐related experiences with the development and implementation of scheduling systems to propose high‐impact research topics.     

MEASURING AND COMPARING VOLUME FLEXIBILITY IN THE CAPITAL GOODS INDUSTRY

This paper presents a theoretical framework for measuring volume flexibility and relating these measures to firm performance. We develop four metrics using the principle that a volume flexible firm can handle similar levels of uncertainty (as measured by sales variability) with smaller fluctuations in inputs (as measured by variability in cost of goods sold and variability in inventory levels). Then, using 20 years of Compustat data on 550 firms in the capital goods industry, we find that on three of four process‐based measures, small firms are more volume flexible. However, when we incorporate financial performance into our fourth metric, we find that large firms are more volume flexible. We conclude that, to be volume flexible is one thing, but to benefit from this flexibility, firms need to focus on the cost of being flexible.     

THE ROLE OF SUPPLY MANAGEMENT CAPABILITIES IN GREEN SUPPLY

Managers realize that they should avoid complex green supply initiatives when they do not have the capabilities to implement them. However, they have little guidance on how these capabilities can be developed. This paper provides an initial analysis of the role of supply management capabilities in green supply. We argue that the implementation of green supply is better explained by focusing on the development and deployment of an organization's specialized internal resources, rather than by the more usual focus on external environmental pressures on a firm. Further, we argue that capabilities appropriate for green supply are developed by a proactive corporate environmental stance and by a more strategic purchasing and supply management approach. We test our model using data from a two‐phase survey of 70 operating units within UK public limited companies. Our results indicate support for our conjecture that supply management capabilities are jointly developed by a proactive corporate environmental approach and a strategic purchasing and supply process. Our study results should be useful to business strategists, regulators, and researchers interested in the predictors of corporate green behavior. They should also assist future researchers in many branches of environmental management who are seeking to explore the role of the internal capabilities of firms in supporting environmental management.     

QUALITY AND WORK FORCE MANAGEMENT PRACTICES: THE MANAGERIAL PERFORMANCE IMPLICATION

Quality has been in the limelight as organizations have sought to create a competitive advantage and theorists have sought to understand the implications of quality management. This paper examines the synergistic effects of the quality emphasis in the organizations, the use of appropriate work force management practices, and the managerial performance outcomes as interactive phenomena. Using data from multiple levels of employees in manufacturing units in various industries, we tested hypotheses regarding the managerial performance impact of the synergy in work force management practices and the quality emphasis. The results indicate that the effectiveness of work force management practices in enhancing managerial performance varies with the emphasis on quality that is manifested by meeting and exceeding customer needs and preferences through accurate, consistent, reliable, and durable products, and by making design changes in the products as desired by the customer.