C H A P T E R T H R E E
OPERATIONS MANAGEMENT PROCESSES
OPERATING PROCESSES PRODUCE and deliver goods and services to customers (see Figure 3-1). For a period in the late twentieth century, many scholars and companies believed that managing operations was the most critical component of any organization’s strategy. Inspired by the remarkable results achieved by Japanese manufacturers in transportation, electronics, and optical industries, most companies placed a high priority on redesigning, reengineering, and continuously improving their critical operating processes.
Companies’ efforts to achieve operational excellence were largely successful. Many enjoyed dramatic improvements in the quality, cost, and responsiveness of manufacturing and ...
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