Published online by Cambridge University Press: 05 June 2012
Learning objectives
After reading this chapter you should be able to:
appreciate the various factors that have influenced the drive for change in the way that products and services are produced and systems are developed
understand the methods of production and delivery of services that have been adopted by various industries in pursuit of efficiency and effectiveness
describe the characteristics of organisations that have achieved operations excellence and those that have struggled
evaluate the advantages and disadvantages of alternative operating system models under varying market conditions
appreciate the operations management challenges in meeting customers' needs.
Box 2.1: Management challenge: Toyota/Honda vs General Motors/Ford
When one looks at the international car industry, two distinct groups of firms are noticeable. One group consists of firms such as General Motors and Ford. These firms have been around for a long time (really since the advent of cars). While very successful in the past, these firms now seem to be less so. They take longer than some of their competitors to produce new models and their models seem less well matched with market requirements. The cars are rated lower on quality and value of money (Womack et al., 1990; Holweg and Pil, 2004). As a result, these companies have suffered an erosion of market share in many market segments in which they compete. So, their frequent announcements of ever-growing financial losses do not come as a surprise to many. […]
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