7.
Managing resources:
operations management
Learning objectives
• understand the origin of the main production models
• explain the main differences between different operations
systems
• critically assess the advantages and disadvantages of these
models
• reflect on the societal effect of production systems and
production management
• link human resource management and corporate
governance to modes of production
• understand the concept of fit in the context of production
models and operations management
• assess the possibilities of applying different production
models within divergent societal contexts
Chapter Outline (1)
7.1 Introduction
7.2 Characteristics and types of production system
Taylorism, or scientific management (1890–1911)
Fordism, or mass production
Flexible production
Lean production
7.3 Operations systems and the societal environment
Mass standardized societal systems of production
Societal systems of flexible production
The societal system of lean production
The German societal system of diversified quality production
Short-termism and institutional inertia: The difficult transition in the USA
Chapter Outline (2)
7.4 Comparative work organization characteristics
7.5 Conclusions
Study questions
Further reading
Case: Manufacturing machine tools in Germany and France
Notes
References
Figure 7.1
Categorization of work systems
Adapted from Sorge (1995)
Table 7.1
Lean and mass production systems compared
Table 7.2
A typology of societal systems of production
Table 7.3
Models of flexible production organization
Table 7.4
National differences in forms of work organization
Study questions
1.
2.
3.
4.
5.
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7.
8.
9.
Which societal features could help to explain why Taylorism and Fordism developed in the USA?
Why do you think Toyotism, or lean production, developed in Japan long before flexible
production was recognized in the West?
Explain how lean supply chain management fits the societal features of Japan and of Germany.
Explain the links between human resource management systems and corporate governance
modes to mass production, and to the lean and flexible modes of production.
Explain why lean production could be more difficult to implement in the USA.
Explain the main differences between mass and flexible production systems, and link these
differences in features to the differences in the societal institutions that are needed to develop
these models.
Explain which type of operations systems we would have to expect in China, a country which
combined state domination with new capitalism and has become a major international
competitor in final consumption goods, mass markets and notably consumer electronics.
Australia is a leading exporter of uranium, coal and other ‘extracted’ commodities. Russia is also a
major exporter of extracted commodities (notably gas and oil). In some ways they will therefore
have comparable operations. But what about the expected design of operations systems in
comparison?
Explain whether, in your opinion, convergence can occur in the areas of production systems and
production management. Consider the role of the international division of labour as you do, i.e.
the tendency for societies to specialize in industries and market segments.