Many traditional operations strategies – such as just-in-time, lean manufacturing and offshoring – may not be enough in today’s challenging global economy, characterized by rising labor costs in developing countries, large volatility in oil and other commodity prices. Sticking to receive wisdom risking more harm than good by imperiling a company’s control over its supply chain. In this article on his book operations Rules: Delivering Customer Value through Flexible Operations, uses the author’s … Read more »

Many traditional operations strategies – such as just-in-time, lean manufacturing and offshoring – may not be enough in today’s challenging global economy, characterized by rising labor costs in developing countries, large volatility in oil and other commodity prices. Sticking to receive wisdom risking more harm than good by imperiling a company’s control over its supply chain. In this article on his book operations Rules: Delivering Customer Value through Flexible Operations, the author uses seven myths that companies often face in their operations. In recognition of these myths, he says, can help an organization to avoid potential problems. Unfortunately, some of these threats are disguised as legal rational strategic objectives. But if these pitfalls are followed, an organization is almost guaranteed to fail or miss. Given issues such as cost reduction, product characteristics, and information technology, the author stresses that flexibility is the key for companies to make their operations and strategies in turbulent times successfully supply chain innovation and competitiveness.
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from
David Simchi-Levi, PhD.
Source: IESE Insight Magazine
8 pages.
Release Date: 15, March 2011. Prod #: IIR048-PDF-ENG
To beat seven myths before you HBR case solution Hitting

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