Evolution of

Operations
Management
(Erkan Bayraktar, Teresa Wu, Ekrem Tatoglu)
Presented by: Paramita Setyaningrum
Introduction

Input Operations Management Outputs

.
1. Goods
1. Labor Transformation
2. Services
2. Equipment Process
3. Information
4. Capital resources Improvement
Process

cost, variability, response times, quality, services, flexibility

Innovation in OM

Source: Adopted from Nankervis et.al (2005)

 Evolution of OM
Past Present Future
- Shifting from cost to - Mass customization - Post-information
quality through internet era
- OM first came and integration - Intense
during 1890-1920 - Customer needs competition, global
(Taylor, Gilbreth, was increasing competition,
Gantt - Competitive factors: environment
- Labor productivity cost, quality, changed rapidly
(motion time 01 delivery time, 02 - Implementation of 03
studies, layout, flexibility integrated e-
production control, - Shifting from business
and queing theory) functional application (ERP)
operations to intra - Product lifecycle
and inter- getting shortened
organizational
integration
 Evolution of OM

Environment Organizations Research Themes

 Environment
- Shifted from mass
- Wider production to mass - Rapid technological
implementation of customization advancement
mass production - Customer needs - High pressure of
with low cost changing rapidly competition
- Use of computers - Shortened time - B2B and B2C
for decision making horizons for medium - Shorter product LC
in 1970 and long term and growing need
- Production planning decision for mass
by computerized - Supply chain customization,
between 1970 and management plays a better project
1980 crucial role management skills
- Human beings still - Customer will be essential
the key for empowerment asset for human
decision-makers - Access of real-time resources
data

Past Present Future

 Driving Forces
- Application of - How to survive the
- Offshoring and information unpredecented
outsourcing technology (IoT, Big challenges bought
- Decentralized Data, AI, 3D Printing, y covid-19
global SC Blockchain pandemic
reluctant to share technology - To restart the world
information with - Emergence of economy, all parties
others internet and smart in the financial
- Emergence of phones helps build supply chain should
financial issues e-commerce and find proactive ways
(contract online platforms to deal with the
payments, tarrifs, - Mobile payment collapse of
and exchange systems receivables
rate) financing to recover
economy condition

Technological Political and

Economic Force
Force Societal Force
 New Forces
- Time gap between
- Expand their goals - Global SC affects
supplier and buyer
from profits alone to company costs, so - Receivables
people, planet, and the company need
Financing dan
profits (PPP). to redesign SC to
- The focal firm Purchase Order
reduce total SC
Financing
needs to change cost (Apple move - Risk of Purchase
the way they Airpod production
Order Financing
manage all three to Vietnam)
flows - Redesign SC to
- Traceability system consider triple
to track capabilities bottom line goals
to monitor flows of
the entities of the
system (Coffee)

Socially and
Environmentally Global Supply Innovative SC
Responsible Chain Redesign Financing
Operations
Triple C-Capability
Organizations
Research Themes
Research Themes (Past)
Research Themes (Present)
 Research Themes (Future)
Challenges
o Developing flexible knowledge supply chain to enable mass customization of products and services;
o Forming cross-border alliances with enterprises to broaden product-line or fill product-line gaps;
o Developing benchmarking for entrepreneurial smaller business to join supply network;
o Enabling seamless integration of multiple, distinct business entities by using modern information
technology;
o Integration of 3-D human models to simulate the workplace safety, agility will also play a role in factory
layouts, product design, production and maintenance.
Research Themes (Future)

Integration of 3-D human models to

simulate the workplace safety, agility will Developing flexible knowledge supply
also play a role in factory layouts, product chain to enable mass customization of
design, production and maintenance products and services

Enabling seamless integration of

multiple, distinct business entities
by using modern information
technology

Forming cross-border alliances

Developing benchmarking for with enterprises to broaden
entrepreneurial smaller business to join product-line or fill product-line
supply network gaps

Challenges
Research Themes(Future)

Intense competition, global markets, global Outsourcing and extended leanness

sourcing, global financing, global strategy,
enhanced product variety, mass Open vs closed loop
customization, service businesses, quality
Real options analysis
improvement, flexibility, advances in
technology, employee involvement, Green supply chain management
environment and ethical issues
Research
Topic Strategies and technologies to form a virtual
Agility and built-to-order supply chains organization, in which participants
collaboratively respond to the unexpected
Extensions to ERP and SCM: ERP II changes in customer demand in a more agile
Globalization
manner. Agile organizations require faster
and leaner processes.
New product/service development
 Conclusion

Adaptation to Industrial Realities

Operations Management (OM) needs to
continuously adapt to align with the changing
dynamics of industries and markets.

Core Focus on Transformation Processes

Despite technological advancements, the core
of OM remains centered on designing and
managing transformation processes that add
value to organizations and society by using
raw and recycled materials. Propelling Innovation
Expected to drive both researchers and
industry practitioners beyond existing
technologies
Future OM Challenges
Since facing global competition and
uncertainty situation (Covid-19 and war
China-USA), firms need new ways to
develop these new capabilities to improve
efficiency, resilience, and sustainability
THANK YOU
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