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Operations Management - Recent Trends and Development in both Teaching and Research

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Title: Operations Management - Recent Trends and Development in both Teaching and Research


1
Operations Management- Recent Trends and
Development in both Teaching and Research
  • Jiaqin Yang
  • Professor of Management
  • Georgia College State University
  • Beijing, China
  • July 11, 2009

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My E-mail addressltjiaqin.yang_at_gcsu.edugt My
Official Websitelthttp//hercules.gcsu.edu/jyang/
gt
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  • The winning companies in the global competition
    will be those companies that can put together the
    best of research, engineering, design,
    manufacturing, distribution wherever they can
    get it, anywhere in the world and the best of
    each of these will not come from one country or
    from one continent.
  • Jack Welch
  • Management Expert, Author and CEO of GE

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A General Definition of Operations Management
  • As all organizations are created and designed to
    provide certain meaningful and useful outputs
    (tangible or intangible) to the public (e.g.,
    Society as a whole) with minimal inputs (tangible
    or intangible) through a conversion process.
  • Operations All activities that involved in the
    Conversion Process of Input to Output
    (Goods/service)
  • Management" refers to all the managerial
    activities in such a conversion process,
    including
  • Planning and Organizing
  • Leading and Motivating
  • Communicating and Monitoring
  • Executing and Correcting
  • Evaluating and Reporting

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Operations Management as a Function
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Today, I want to talk about a few topics
  • Why OM is one of most important function of any
    business organizations?
  • OM Focus shifting from Manufacturing to
    Services operations.
  • Small Business vs. Large Business
  • OM must focus on how to help a business
    compete in a right way!
  • Important research topics in OM for Chinese OM
    scholars.
  • Recent Development in OM field Teaching and
    Research

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  • 1. Why OM is one of most important function of
    any business organizations?

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Functions of Operations Management
  • Relationship between Operations and Other
    Functions

Three Primary Functions in Business
Marketing
Production
Finance
  • Broader Perspective of Operations Management

An Integrated Production System
Including Inventory Control / Aggregate Planning
/ Demand Forecasting
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  • 2. OM Focus shifting from Manufacturing to
    Services operations?

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Manufacturing vs Service
  • Manufacturing Provide Tangible Goods (Cars / TV
    Sets / Foods /
  • Service Provide Intangible (Goods) (Education /
    Banking / Legal/Repairing / Medical Service /
    Transportations/
  • Four Major Differences between Manufacturing
    and Service

,
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Manufacturing vs Service
Measure of Productivity Measure of Quality Customer Involvement Ability to Inventory Manufacturing Easy Easy Low Yes Service Difficult Difficult High No
Most important OM Principles and Techniques can
be applied to both Manufacturing and Service
Operations.
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  • 3. Small Business vs. Large Business - dont
    forget small businesses in your OM teaching and
    research!

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    ?????????????,??????????????????

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    ???????????????????
  • 1???????
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  • 4. POM must focus on how to use your OM unit
    to help your company compete in a right way in
    the market place!

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The reality of market competition
  • The competition is the primary principle of
    market economy.
  • The trend of international competition a
    global village.
  • A business must and has to - survive under
    intensified competition.
  • In competition, there always are winners and
    losers.

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The reality of market competition (II)
  • During the history of competition, however,
  • Someone being winners more of the time becoming
    a big one.
  • Someone being losers more of the time
    eliminated eventually.
  • Why?
  • In certain degree, we can say
  • For winners they know how to compete
    correctly?
  • For losers they competed in a wrong way.

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Time line for Competition Strategies
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Alternative Order-Wining Criteria in the
Marketplace
  • 1.Cost leader
  • 2.Unique feature of products/services
  • 3.Variety of products/services
  • 4.High quality
  • 5.New product introduction leader
  • 6.Flexibility to Market changes
  • 7. product customization
  • 8.Delivery Speed
  • 9.delivery reliability
  • 10.

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How to compete correctly? (????)
  • n  Traditional competition criteria (like low
    price) is no longer the major and only
    competitive weapon!
  • -- Ford Company T-Model Story.

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Ford Motor Company Example
  • From 1910-1925, through technology
    development/labor specialization/, Ford
    improved the productivity of their Auto-Assembly
    Line significantly. Their average production cost
    was reduced from 4,000 to 1,000. Ford was the
    most Efficient Car-Maker in the world at that
    time.

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Ford Motor Company Example
  • In 1930, Ford had to shut down their production
    line. Ford was still the most Efficient Car-Maker
    in the world, but they lost the Competitive
    Advantages in the Marketplace.

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Different Products/Industries - Must Compete
Differently
  • Different industries, different markets,
    different products/services, must compete
    differently!
  • Example Sugar vs. TV ?
  • (In Service) Education vs. telephone service

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Different Products/Industries - Must Compete
Differently (III)
  • All of your business function must support your
    competitive strategy
  • Why watch is so cheaper today? (Timex Example)
  • A firm must change technology before it is too
    late (Tire Industry example S-curve
    application).

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Technology Improvement S-Curve
Return on Technology Investment
Early stage
Late stage
Middle stage
Resources Investment in Technology Development
34
TIMEX (Its early Success)
  • Not taken seriously at first by U.S. and Swiss
    watch manufacturers, Timex introduced its line of
    inexpensive watches in 1950. By 1970, half of the
    watches sold in the U.S. (and lots of foreign
    countries) were made by Timex. The success of
    Timex depended upon a careful matching of
    production and marketing strategies. The Timex
    formula through the early years Mass Production
    and Mass Marketing.

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TIMEX Mass Production
  • Single, simple product focus
  • Simple process technology
  • Unskilled labor
  • Economies of Scale
  • Product durability stressed
  • High degree of standardization

Swiss Timex
168 parts 80 parts
6 plates 2 plates
31 screws 6 screws
100 steps 6 steps
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  • Many changes have been happened during the last
    decades. There have been significant changes and
    new developments in the academic field of
    Operations Management" - to reflect new demands,
    new trends, new requirements, and new changes in
    management practice.

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5. New Topics and Developmentsin Operations
ManagementAnd Related Research Directions and
Topics - Important research topics in OM for
Chinese OM scholars.
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From Planning Controlling
  • Total Quality Management (TQM)
  • Supply Chain Management (SCM)
  • Technology Management (TM)
  • IT (e.g., ERP, MIS, et al.) in POM
  • E-Business for POM
  • Long-Term Business Planning

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Research Topics in OM for Chinese Scholars
  • Supply Chain Management (SCM)
  • How the specific feature of Chinese culture,
    tradition, norms, and the economic system impact
    SCM application in China?
  • (can be a case study, a field study, or
    analytic study if you can develop a specific
    model).
  • Technology Management (TM)
  • Current status of TM in China?
  • Technology transfer and upgrading issues
    (S-curve)?
  • How do select the most appropriate
    technology for Chinese firms?
  • IT in POM (so many research issues in China)
  • IT application and firms operational
    performance in China an empirical
    investigation.
  • Key success factors for IT applications in
    Chinese firms
  • ..

40
Research Topics in OM for Chinese OM Scholars (II)
  • E-Business for POM
  • What are major issues and challenges in
    e-business in China today an investigative
    research.
  • How different e-business should compete in a
    given market i.e., different competitive
    advantages?
  • All major other OM topics in China
  • Operations Scheduling issues
  • Facility Selection
  • Facility Layout Design
  • Facility Capacity Planning
  • ..

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Research Topics in Across All Functions for
Chinese OM Scholars
  • International Business and Management (IB)
  • - Successful factors for a Chinese enterprise
    in a foreign nations (an empirical study).
  • - Successful factors for a foreign enterprise
    in China.
  • - The impact of government (Central vs. local)
    policy and regulations on an international
    business in China.
  • - (Everything which has an impact on the
    operations of an international company may be a
    good research topic.)
  • Comparative Study of Management
  • - Different Approaches in management practice
  • - Different Styles in management leadership
  • - Different Culture and Values in management
    practice
  • - . (many more)

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6. Recent Trends in POM for Both Teaching and
Research- A continuing shift toward Service
Operations especially in business school
Teaching, because more of your students will work
in a service oriented company.- More focus on
those new emerging fields, like Supply Chain
Management, Operational issues in E-business,
The increased impact of new IT technology in OM,
like ERP.
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Recent Trends and Development (II)
  • Most traditional OM topics like Process
    selection, capacity planning, inventory
    management, APP and MPS, MRP, scheduling, are now
    combined or incorporated with those new topics,
    like SCM, E-Business, ERP Application.
  • New emphasis on technology management (like
    S-curve) in OM field.
  • New development in JIT production system, like
  • Lean production system emphasis that
    JIT is much more that timing issue be
    everything Just-Right.
  • From zero defective to Six Sigma
    Quality
  • From zero inventory to VMI or JIT
    II.
  • From cleanliness principle to 5-S
    theory.
  • Re-emphasis continuing improvement as a
    never-ending objective and a daily-operation
    procedure, make it as a part of organizational
    culture.
  • Environmental concern and clean production

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Research and Publications in OM Field
  • There are many new research journals in OM
    available for your research paper submission
    consideration.
  • Different journals have different focus and
    orientation.
  • Different journals have different reviewing
    systems.
  • Different ones have different acceptance rate.
  • Communicating with Editors more aggressively.
  • Select the most appropriate journal that fitting
    your papers quality and contributions.
  • Empirical OM research papers are more likely to
    get published than a model-building analytical
    paper.

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Research Productivity (???? ? ????)
  • You must learn how to co-author with other
    scholars - (inside or outside campus).
  • You must learn how to produce multiple papers
    from the same research projects and data base.
  • You must learn from an early draft (conference
    presentation and proceedings) to final draft
    (journal publications).
  • Try your best to gain the opportunity to do
    research cooperation with foreign professors and
    co-author with big-name scholars.

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Conclusions
  • There is a golden opportunity for all of you
    Chinese OM Scholars in your future teaching and
    research effort.
  • There are unlimited research topics for you to
    choose from just select the one that you have a
    real interest.
  • Hope the above discussion provides you a
    guideline for your future working interest in POM
    field in both teaching and research.
  • Value the opportunity and do your best.
  • Looking forward to seeing more high level OM
    scholars on the international stage and
    international publications.

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  • Welcome any questions!
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