The Top 8 Erroneous Paradigms
of Operations Management
by Martin Powell
- A resource standing idle is a major waste
- Efficiencies are the best guide of performance and profitability
- Leads times are a given
- Reducing set ups reduces costs
- Process batch = transfer batch
- Everybody needs to be an expeditor
- Flow depends mainly on physical layout
- Taking orders within the normal lead time increases profitability
A resource standing idle is a major waste
Is this a valid statement? The way to test it is to ask the question –"always, in all circumstances?" If you can find a situation where this is not valid then you should study the logic behind the situation and learn from it. So if we do ask the question then the answer must be "no not always, for example what about a fire engine or a standby generator at a hospital!"
These two examples (there are many more) relate to an investment that was consciously made – not in order to increase "productivity" - it was made to protect "productivity". So in effect the "system" accepts that in order to protect its performance it must maintain some level of protective capacity...
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