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Chapter10

OperationsManagementandInnovationOutlineBackgroundintroductionAboutSingaporeAirlineReadingforgistVocabularyComprehensionDiscussionBackgroundintroductionWhatisoperationsmanagement?Whatadvantagescananeffectiveoperationbringtoabusiness?OperationsmanagementOperationsmanagementisthetermusedfortheactivities,decisions,andresponsibilitiesofoperationsmanagerswhomanagetheproductionanddeliveryofproductsandservices.Itmaysoundlikeanacademictermfamiliaronlytobusinessgurusorpractitioners,butitisactuallysomethingverycloselyrelatedtoourdailylife.Theapplicationofoperationsmanagementtooureverydayactivitiesisillustratedinthefollowingquotation:

“Operationsmanagementisaboutthewayorganizationsproducegoodsandservices.Everythingyouwear,eat,siton,use,readorknockaboutonthesportsfieldcomestoyoucourtesyoftheoperationsmanagerswhoorganizeditsproduction.Everybookyouborrowfromthelibrary,everytreatmentyoureceiveatthehospital,everyserviceyouexpectintheshopsandeverylectureyouattendatuniversity-allhavebeenproduced.”(Slacketal,2006)Theabovedefinitionreflectstheessentialnatureofoperationsmanagement:itisacentralactivityinorganizingthings.Anotherwayoflookingatanoperation,istoconsideritasatransformationprocess:Asisillustratedintheabovefigure,operationscanbeseenasatransformationprocesswhereasetofresources(INPUTS)areconvertedintoservicesandgoods(OUTPUTS).Theseresourcesmayberawmaterials,information,orthecustomeritself.Theseresourcesaretransformedintothefinalgoodsorservicesbywayofother“transforming”resources---thefacilitiesandstaffoftheoperation.Forexample:

Rawmaterials:Anobviousexampleisacabinetmaker,whotakessomewood,cutsandplanesit,andthenpolishesituntilapieceoffurnitureisproducedInformationAtouristofficegathersandprovidesinformationtoholidaymakers,andassistsinadvisingonplacestostayorvisit.CustomersAtanairport,passengersareoneofthemanyresourcesbeingprocessed.Theoperationpassengersareinvolvedinisaboutprocessingtheirticketandbaggage,movingfromticketdeskthroughthecustomsandduty-freeareas,todeliverthemtotheawaitingplane.Sincetheoperationsfunctionoftheorganizationisthearrangementoftheresourceswhicharedevotedtotheproductionanddeliveryofitsproductsandservices,itcanbesafelyconcludedthateveryorganizationhasanoperationsfunctionbecauseeveryorganizationproducessometypeofproductsand/orservices.However,notalltypesoforganizationwillnecessarilycalltheoperationfunctionbythisname.Theoperationsfunctionmaybelocatedinanydepartment.Inuniversity,forexample,itmaybelocatedwithinaBusinessSchoolorEngineeringSchool.InIndustry,operationsmaybeseenasthedomainoflogistics,productionplanning,orprocesscontrol.Hence,operationsinterfaceswithmanydifferentdisciplinesandmanythemesdevelopedinorganizationsrequirethesupportofoperationsmanagement.AboutSingaporeAirlineTheSIAhistory

SingaporeAirlinesMissionStatement:

"SingaporeAirlinesisaglobalcompanydedicatedtoprovidingairtransportationservicesofthehighestqualityandtomaximisingreturnsforthebenefitofitsshareholdersandemployees"FromFirstFlighttoSoaringHeightThehistoryofSingaporeAirlinesdatesbackto1May1947,whenaMalayanAirwaysLimitedAirspeedConsultookofffromSingapore'sKallangAirportonthefirstofthreescheduledflightsaweektoKualaLumpur,IpohandPenang.Overthenexttwodecades,theAirlinesteadilyacquiredmoreplanes.TherewereadditionsoftheDC-4Skymaster,VickersViscount,LockheedSuperConstellation,BristolBrittania,CometIV,andtheFokkerF27.On16September1963,theFederationofMalaysiawasbornandtheAirlinebecameknownasMalaysianAirways.InMay1966,itbecameMalaysia-SingaporeAirlines.Later,thenewlookoftheAirlineevolvedfurtherwithitsfirstBoeings-threeB707s,thenafleetofB737s.In1972,Malaysia-SingaporeAirlinessplituptobecometwoentities-SingaporeAirlinesandMalaysianAirlineSystem.Thischangewasusedtolaunchanew,moremodernserviceapproachontheairline.TohouseaspecialfleetofB747s,B727s,andDC-10s,thenewSingaporeAirlinesalsoboastedanewairfreightterminalandaB747hangar.TheSingaporeGirlisBornIn1968,thesarongkebayauniformdesignedbyFrenchcouturierPierreBalmainwasintroducedandtheinternationallyrecognizedimageoftheSingaporeGirldebuted.AReputationforInflightFirstsThe1980sbroughtanumberoffirsts.TheSingaporeAirlinesfleetcontinuedtogrow,inimpressiveandhistoricways.IthadthefirstA300Superbus,theB747-300BigTop,theB757andtheA310-200.WewerealsothefirstairlineintheworldtooperateaninternationalcommercialflightacrossthePacificOceanwiththe747-400Megatop.Inthe1990s,SingaporeAirlinesrevolutionizedinflightcommunicationsandentertainmentthroughtheKrisFone-thefirstglobalskytelephoneservice-andKrisWorldofferings.Atthesametime,wesoughttofurtherimproveourunparalleledfleet,placingaUS$10.3-billionorderfor22B747-400sand30A340-300sin1994,aUS$12.7-billionorderfor77B777sin1995,andaUS$2.2-billionorderfor10A340-500sin1998.Thecompanywasalsofirsttoinvolveacomprehensivepanelofworld-renownedchefs,theInternationalCulinaryPanel,indevelopinginflightmealsin1998.In2000,theAirlineplaced19A380sonfirmorderandaUS$4billionorderfor20moreB777-200sin2001.In2004,SingaporeAirlineswasthefirsttooperatetheworld’slongestnon-stopcommercialflightbetweenSingaporeandLosAngelesinFebruaryontheA340-500,andthensurpassingtherecord(intermsofdistance)laterthatyearwiththenon-stopservicetoNewYork(Newark)inJune.TheA380,theworld'slargestcommercialplaneenteredservicewithSingaporeAirlineson25October2007,makingitanotherworld’sfirst.TheHighestServiceTodaySingaporeAirlinestodayisbuiltsolidlyonourhistory,fromthedesignerbonechinaflatwaretotheBulgaricologneforFirstClasspassengers,toouradvancedfleetofaircraftandmotivatedemployees.Today,ourinflightserviceisofthehighestorder.TheSingaporeAirlinesWorldGourmetCuisineboastsaselectionofexclusiveandtantalisingsignaturedishes,speciallydesignedbyapanelofnineinternationallyrenownedchefs,andawinelistselectedbythreeoftheworld'smostdiscerningwineconsultants.KrisWorld,SingaporeAirlines'award-winningandever-expandinginflightentertainmentsystem,offerscustomersawiderangeofentertainmentoptions.Customerscanchoosefromavarietyofmovies,TVprogrammes,musicCDsandchannels.ThereisalsoanextensiveselectionofvideogamesandinteractiveapplicationsincludingBerlitzWordTraveler,afullyinteractivelearningprogramme.SingaporeAirlinesbecameafullmemberoftheglobalStarAlliancein2000andwithitcame"seamless"worldwideairtravel.Withtheextensivenetworkofpartnerairlines,connectingflights,frequentflyerpoints,andbaggageclearancearenowabreeze.SingaporeAirlines’routenetworkreachesouttoover65destinationsin35countries.AFutureofFirstsSingaporeAirlinesmadeAviationhistorywhentheAirlinebecamethefirsttooperatetheworld'slargestaircraft,theA380,on25October2007betweenSingaporeandSydney.TheA380alsooperatestoandfromLondon,Tokyo,ParisandHongKong.Inaddition,SingaporeAirlinesintroduceditsSuites,togetherwithcabinimprovementsinallotherclasseswhilestillprovidingexcellentservice.Thefuturepromisestobringmorefirstslikethese,asSingaporeAirlinescontinuallystrivestodrivequalityservicethroughinnovation.SIA:ashortvideoReadingforgist

ScanTextAandgetsomemainideasaboutthefollowingquestions.Pleasecompareyouranswerswiththoseofyourpartners.Whatare“thehard”and“thesoft”approachinthemartialartofkung-fu?WhatarethecornerstonesofSIA’ssuccess?IstheProductDevelopment(PD)departmenttheonlyfunctioninvolvedinSIA’sinnovationprocess?Ifnot,whoelseisalsoinvolvedandinwhatway?WhatistheroleoftheProductDevelopment(PD)departmentinSIA?WhatarethehardandsoftaspectsofSIA’sinnovationprocess?VocabularyAvocabularymapWhatdoestheword“airline”remindyou?airlinePossibleanswers:airportcabincrewflightattendantseconomy/business/firstclassjetlagcustomsluggageupgrade/downgrade…Vocabularyexercise1Areyoufamiliarwiththefollowingwordsandexpressions?TrytoexplainthesewordsandexpressionsinEnglish.Pleasetranslatethefollowingsentenceswiththeseexpressions.随着国内订单的不断到来,这家工厂每周要生产出上万双运动鞋.因为违反了竞争法,这家广告公司被判处缴纳十万美元的罚款.由于来自环保组织的抗议,这家制药公司的扩张计划被迫搁浅了.作为知名的经济学家,他的这两场讲座有助于我们了解全球化的各种利弊.在委员会讨论表决之前,这项提议需要补充更多有说服力的数据.在商业谈判中取得双赢局面的一个重要途径是谈判双方都很灵活,在不偏离各自最终目标的前提下做出适当让步.在他职业的巅峰期,他辞去在投资银行的高薪职位而改去一家非营利组织工作.在他为自己的硕士论文搜集资料的过程中,他无意中发现了一个绝佳的商业机会并将它发展成为业内的十大企业之一.作为一个事业刚刚起步的小公司老板,他在很多方面都要听命于自己的供应商.尽管面临很大的经济压力,他从没想过要削减员工的住房补贴.Keys6 Onewaytoachieveawin-winsituationduringbusinessnegotiationsisthatbothpartiesareveryflexible,willingtomakesensibleconcessionswithoutdeviatingfromtheirownultimategoals.7 Hequittedhiswell-paidjobintheinvestmentbankattheheightofhiscareerandtookapositioninanon-profitorganization.8 Intheprocessofsearchingmaterialforhismastersdissertation,hestumblesuponanexcellentbusinessopportunityandlaterdevelopeditintooneofthetoptenenterprisesintheindustry.Astheownerofasmallstart-upcompany,heissubjecttothewillofhissuppliersinmanyaspects.Inspiteifgreatfinancialpressure,hehasneverconceivedofreducingthehousingallowancesofhisemployees.Vocabularyexercise2GivetheChineseequivalentstothefollowingEnglishterms.adaptiveabilitybiometrictechnologynon-stopflightcostandrevenueprojectionscustomerfeedbackfront-lineworkerssubstantialsalarycutsjobrotationGivetheEnglishequivalentstothefollowingChineseterms.一个连续创新者行业危机商务舱高级管理层产品开发同伴压力地勤部门恐怖袭击Keys适应能力生物技术直飞航班成本和利润计算客户反馈一线工作人员大幅度减薪岗位轮换aserialinnovatorindustrycrisesbusinessclassseniormanagementproductdevelopmentpeerpressuregroundservicesdepartmentterroristattackComprehensionComprehensionexercise1KeysInthelasttwoandahalfdecades,theairlineindustryasawholehassufferedfromacyclicalpatternofbubble,crash,stabilizationandrecovery,withnearlyhalftheyearsmarkedbyheavylosses.Inthisperiod,SIAhasneverincurredalossonanannualbasisandhasshownhealthyreturnssinceitsfoundingin1972.Theexamplesinclude:thelaunchofthefirston-demandin-flightentertainmentsysteminallclasses,thefirstnon-stopflighttotheUSwhichonlyhastwoclassesoftravel,businessclassand“executiveeconomy”,oritscurrentusesofbiometrictechnology.Beforeimplementinganewprocess,thecompanywillfirstdecidewhetherthisprocesswilladdvaluetothecustomersandthecompany,andprovidestrategicdifferentiationwhilesimultaneouslyimprovingefficiency.Thisinvolvesasequentialprocessofhavinginspirationsormakingdiscoveries;capturingthemonthee-log,anelectronicstoragespaceofinnovativeideas;having“warcabinet”meetingstoexplorefeasibilityandfleshoutthedetails;preliminaryendorsementoftheideabyseniorvicepresidents;theholdingofauserconferencewhereSIAfrequentflyersareinvitedtodebatetheideaandgivetheirinputs;developmentofarobustbusinesscasewithdetailedcostandrevenueprojections;approvalbyseniormanagement;andfurtherrefinementandimplementation..6 BecauseinnovationhasbecomesuchanintegratedpartofSIA’sculturethatmostfunctionaldepartmentshavetheinnovationobjectiveaspartoftheirmission,whichresultsinSIA’sexcellenceinmany,notjustone,areas.7 BecauseSMScheck-inismoreuser-friendlyandtheinfrastructureismorewidelyavailable.8 Thisdistributedinnovationcapabilitypreventsthecompanyfromblindlyfollowingtechnologicalfads,andpavesthewayforconsistentandseamlessdelivery.9 Whileminoradjustmentscanbemadebyalmostanyoneatanytime,themoreexpensiveandsignificantchangesaresubjecttothekeyfixedpointsprocessalsoadheredtobythePDdepartment;seniorvicepresidentendorsement,costingandapproval.10 Theirapproachesinclude:highimportancegiventocustomerfeedback,flexiblerewardsbasedoncompanyperformance,teamconceptandjobrotation.Comprehensionexercise2Decidewhetherthefollowingstatementsaretrue[T]orfalse[F].1()SIA’aapproachtoinnovationechoesperfectlywiththestandard,linear,normativemodelsofnewservicedevelopmentproposedinmanytextbooks.2 ()Generallyspeaking,SIA’shard,structural,rigorous,centralizedinnovationsaremoreimportantthantheso

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