A New Paradigm for OM
sen Introduction to Operations Management provided whereas goods will refer to the tangible output and frangible output.) definition of Quality Future Direct the United States was the obvious world leader in as the result of several factors, including (a) available effort, (b) pent-up demand for consumer goods during the contraction of most of the production capabilities of the other the world. A Tom Peters aid, You couldn't screw up between 1946 and 1973 if you tried.'? With demand Sigurd period of time. ravisher was placed on output, •.•lly reacted to situation only when they occurred Coequally told operation managers to focus only on COD-
Founded in 1866. the Coca-Cola Company is the clear leader in its industry with more than 50% of the global soft drink market. Although its principal brand is Coca-Cola it distributes more than 230 brands in nearly 200 countries worldwide. With its focus on global growth more than 70% of the company's income comes from sales outside the United states As we shall see in Chapter 2, in the early 1970 Wick am Skinner at Harvard Business School introduced the notion of operations strategy. He propped that the operations function rather than being only reactive. could take a proactive role in developing the overall strategy for an organization. In other words, Skinner suggested that the operations function could actually add value to the products a company manufactured that adding value in terms of what a customer is willing to pay for the product In developing this concept of
operations strategy he suggested that a firm could compete on dime ions other than cost to increase profit margins. These dimensions included quality speed of delivery and process flexibility Each of these dimensions in their own way adds value to the end product. Skinner's notion of an operations strategy resulted in a new paradigm for the operations function.