Operations Rules: Delivering Customer Value through Flexible Operations

Overview

In recent years, management gurus have urged businesses to adopt such strategies as just-in-time, lean manufacturing, offshoring, and frequent deliveries to retail outlets. But today, these much-touted strategies may be risky. Global financial turmoil, rising labor costs in developing countries, and huge volatility in the price of oil and other commodities can disrupt a company's entire supply chain and threaten its ability to compete. In Operations Rules, David Simchi-Levi identifies the crucial element in a ...

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Operations Rules: Delivering Customer Value through Flexible Operations

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Overview

In recent years, management gurus have urged businesses to adopt such strategies as just-in-time, lean manufacturing, offshoring, and frequent deliveries to retail outlets. But today, these much-touted strategies may be risky. Global financial turmoil, rising labor costs in developing countries, and huge volatility in the price of oil and other commodities can disrupt a company's entire supply chain and threaten its ability to compete. In Operations Rules, David Simchi-Levi identifies the crucial element in a company's success: the link between the value it provides its customers and its operations strategies. And he offers a set of scientifically and empirically based rules that management can follow to achieve a quantum leap in operations performance.

Flexibility, says
Simchi-Levi, is the single most important capability that allows firms to innovate in their operations and supply chain strategies. A small investment in flexibility can achieve almost all the benefits of full flexibility. And successful companies do not all pursue the same strategies. Amazon and Wal-Mart, for example, are direct competitors but each focuses on a different market channel and provides a unique customer value proposition--Amazon, large selection and reliable fulfillment;
Wal-Mart, low prices--that directly aligns with its operations strategy.
Simchi-Levi's rules--regarding such issues as channels, price, product characteristics, value-added service, procurement strategy, and information technology--transform operations and supply chain management from an undertaking based on gut feeling and anecdotes to a science.

The MIT Press

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Editorial Reviews

From the Publisher

"Chock-full of useful tips, rules, and models that business people can implement immediately. Therein lies the book's true value." R. Subramanian,
Montclair State University CHOICE

The MIT Press

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Product Details

  • ISBN-13: 9780262525152
  • Publisher: MIT Press
  • Publication date: 9/13/2013
  • Edition description: Reprint
  • Pages: 256
  • Sales rank: 799,957
  • Product dimensions: 5.70 (w) x 8.60 (h) x 0.50 (d)

Meet the Author

David Simchi-Levi is Professor of Engineering Systems at MIT and is considered one of the premier thought leaders in supply chain management. He coauthored the award-winning Designing and Managing the Supply Chain. He is the founder of LogicTools (now part of IBM), which provides software solutions and professional services for supply chain planning.
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