Background
You’ve been employed as an operations manager for a little under a year now. Your leadership is making their rounds from department to department in hopes of better understanding their associated roles and responsibilities. Your supervisor has tasked you with developing a background paper on operations management and how it is posturing the company for competitive advantage.
Instructions
Please answer the following questions and submit them for grading.
1. What is operations management, and how has it evolved since World War II in the United States?
2. How have the technology and the global economy impacted operations management?
3. How does operations management help firms compete?
4. Why are business units bundling manufacturing with services in their market offerings?
5. Describe Value Added Chain Management. Why is it essential to an organization? How does it impact an enterprise's competitive edge?
Evolution Since World War II:
OM has evolved significantly in the U.S. through several phases:
1950s - 1960s: Quantitative/Management Science Era 🧮
OM focused heavily on mathematical models (linear programming, queuing theory) to optimize resource allocation, inventory levels, and scheduling. This was a direct result of the sophisticated quantitative techniques developed during wartime planning (Operations Research).
1970s: The Manufacturing Crisis 📉
U.S. manufacturing began losing ground to Japanese competitors who excelled in quality and efficiency. This period highlighted the inadequacy of purely quantitative methods and led to the recognition that OM was a strategic function, not just a technical one.
1980s: Quality Revolution and Strategy ⚙️
The influence of W. Edwards Deming and Joseph Juran led to the adoption of Total Quality Management (TQM) and Just-in-Time (JIT) inventory/production systems. The focus shifted from cost to quality and flexibility. OM began to be seen as a source of competitive advantage.
1990s: Process Focus and Globalization 🌐
OM expanded beyond manufacturing to include service operations. Concepts like Business Process Reengineering (BPR) and Supply Chain Management (SCM) emerged, recognizing that value is created across a network of interconnected firms.
2000s - Present: Digital Transformation and Sustainability ♻️
Focus is on digital operations, data analytics, and sustainability. OM now heavily leverages technology (e.g., IoT, AI) to achieve hyper-efficiency, transparency across the supply chain, and ethical/sustainable practices.
Sample Answer
Operations Management and Competitive Advantage
Here is a background paper on operations management (OM) to inform your leadership about its evolution, impact, and role in securing competitive advantage.
1. What is Operations Management, and How Has It Evolved Since World War II in the United States?
Operations Management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs (such as labor, materials, and energy) into outputs. Essentially, OM is concerned with the design, execution, and control of the production system that converts resources into finished products and services