The future of Operations Management : An Outlook and Analysis Amardeep Banerjee M.Sc RWTH Aachen
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1 The future of Operations Management : An Outlook and Analysis Amardeep Banerjee M.Sc RWTH Aachen 1
2 Outline Operations Management (OM) Literature Gaps and Modelling Techniques New Paradigms in OM Summary and Critique Conclusion 2
3 Delivering the right products to the right customer at the right time and right price. 3
4 Operations Management 4.0 Internet enabled commerce Logistics 3PL Omni Channels Demand Management Multi Sided Platforms Smart manufacturing Global Supply chains Shorter Product Lifecycles Sustainability is the new Lean Service Innovation 4
5 Automobile Industry Industry Examples Complexity management, platform sharing, zero emissions Apple Dell Global Supply chains E-commerce : Amazon, Tesco, Uber RFID, Logistics, Demand and Inventory management Health Care : Henry Ford of Ophthalmology High Volume, Simultaneous Eye Surgeries 4V Variety Visibility Variation Volume 5
6 Operations Management Model Input Transformed Resources - Material - Information - Customers Input Transforming Resources - Facilities Staff Input Resources Physical Inflow of materials Operations Strategy Design Operations strategic objectives Improvement Planning and Control Production Planning and Control (PPC) Operations competitive role and position Output Resources Physical outflow of materials Productivity and competitive strategies Customers Combining Slack et.al (2013)and Guneskaran et.al (2012) 7
7 Modelling Techniques Dimension Functions Decisions OR/MS Models Productivity and competitive strategies Physical Inflow PPC Physical Outflow Globalization Terrorism Sustainability Global warming E-procurement Compliance Virtual manufacturing ERP E-logistics RFID Risk assessment Outsourcing Energy Risks Reverse Logistics Optimization of SCM configuration Resource Optimization Optimization of 3PL Optimal location of partners Multi criteria decision Risk assessment Game theory Decision tree Real option LP Models Network Models Fuzzy AHP Simulation LP and non-lp PERT CPM Forecasting Queuing models scheduling System Analysis Transportation Assignment Models 8
8 Major Theories in Evolution of OM Models applicable for OM HMMS Model (1960) Applicable to Broader planning level as compared to aggregate planning. Can be used for make or buy and supplier selection Not suitable for global networks and enterprise Theories in Evolution of OM Resource Based and Transaction Cost Theory Choice of Operations - Institutional, Configurational and Contingency Theory Relation between SCM Strategy and operations using Contingency Theory 9
9 Summary of Gaps Literature Studies Socio Economic Marketing Operations Safeguarding Environment Life Cycle perspective Value chain commitment Responsible SC Fairness High Standards Upstream Reverse Logistics Cost Quality Pricing Uniform Standards Integrated SC Commitment to green supply chain Fair practices Transparency Quality Standards Consistency Global Economic Stability Global Understanding Alignment Integration Human Rights Human Value Outsourcing of Products Human Resource skills Information/Knowledge Training 10
10 New Paradigms in OM Area Traditional Strategy Future Strategy Corporate Competitiveness Productivity Functional Competitors, trust, strategic alliances Price, quality, flexibility, responsive JIT, TQM,BPR, Agile, SCM Functional integration, third party logistics, knowledge workers Global market, Terrorism, strategy Managers, competitive industries Customer emotions Design for global customer, outsourcing, CRM, Sustainability Extended Enterprise integration, ERP-II, virtual enterprise 11
11 New Paradigms in OM (2) Demand Management Dynamic Pricing Revenue Management Hotels, E-groceries, Airlines Dynamic pricing Revenue Performance Objectives and Possible future Alignments with OM Collaborative Value Chain (CVC) Responsible Supply Chain (ReSC) Global Green value chain (GGVC) Environment-driven Design (EDD) Responsiveness Flexibility Dependability Quality Price Safety Environment Friendliness Performance Objectives 12
12 Summary and Critique Analysis of present trends and gaps in Operations Management Weighing in argument on the inclusion and consideration of socio cultural factors along with marketing and operations OM benefits Employees, Suppliers, Stakeholders, Customers and Society Sync between Research Practice and Curriculum at Universities Critique Operation Mangers Operations management - Accountability - Practice oriented Empirically driven more - Physical Buffering academic rigor required (JOM Note2015) - Exposure to Environment 13
13 Conclusion Data Rich, Closed Loop and Glocalized future Globalized Production Networks, focus on risk management and supply chain resilience. Renewed focus on the effect of people management on products and services Research Methodology wise Mixed Methods 14
14 References The future of operations management: An outlook and analysis, Angappa Gunasekaran, Eric W.T. Ngai (2012) International J. Production Economics nd EurOMA Conference (2015) Operations Management for Sustainable Competitiveness Journal of Operations Management, Books Operations Management, Nigel Slack et. al (2013) Pearson Publications An Introduction to Management Science : Quantitative Approaches to Decision Making (2014) David Anderson et.al, C.Engage Learning, USA 16
Index. buyer-supplier relationship (BSR), 47, , 132, 144 6, buying behaviour, 8,
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