PUBLIC FAILURE IN OPERATIONS MANAGEMENT
What company would you say has had a visible, public failure in Operations Management? How do you characterize and explain that failure?
Hint 1: See the text for OM fail examples.
Hint 2: Consider Key Challenges in OM—some companies handle these well and some do not.
Here’s a hint: break down the Operations and Supply Chain Processes (p.80) into component parts: 1. Planning 2. Sourcing 3. Making 4. Delivering 5. Returning. Then think of some notable business failures: Kodak, Sears, Blockbuster, Digital Equipment Corporation; Segway; Yahoo; JC Penny. Unfortunately, there are many more examples.
In almost all cases of these business failures, the company fell down, underperformed, or neglected one or more of those 5 key areas. Built into a company’s Operations Management (OM) System should be analytic data capture points that help the company do “the right things (effectiveness).” Many of these companies, like dinosaurs, failed to adapt to a changing business environment, new technologies and shifting market demand. Why didn’t Blockbuster become the next Netflix? At some point, I think we will find in the companies history and OM failure–staying with a shrinking market and outmoded technology rather than adapting to change successfully.