Operations management taxonomy

Operations management is responsible for achieving an effective and efficient transformation process. Changes taking place in the marketplace and in technology require the correct positioning of operations in the production of goods and services. The service sector within our economy has grown tremendously, representing an ever greater share of our gross national product. A general operations management (OM) paradigm, combining both goods and services, will help researchers as well as practitioners. The operations classification schemes proposed previously have been narrower in scope and incorporated primarily manufacturing systems. The transformation process is universal; major constraints and standard approaches need to be identified regardless of whether it is a good or service produced. This article presents and defines a descriptive OM model. Sample industries and companies are positioned in the market and product/service matrix; in addition, operations activities and their long‐, medium‐, and short‐term solution approaches to operations problems are identified. This operations model keys on the definition of the product/service produced. The major groupings of the first two dimensions of the model depend on (1) market requirements, and (2) whether the product/service is discrete or divisible, fixed site or transportable. Major groupings of the operations activities, required to effectively and efficiently transform the product/service, define the management approach and product/process technology used. These represent the third dimension to our model. The fourth dimension is the time available to plan and implement solutions to operations problems. The four dimensional space‐time paradigm is cohesive and inclusive, and better identifies the major constraints on goods and/or services production. It is intended to analyze and synthesize both the similarities and differences among industries and companies positioned in matrix categories, and thus to help determine the appropriate actions of operations managers during the transformation process. The complexity of the OM paradigm shows realistically the trade‐offs that have to be made in this dynamic area. Changing markets, technology, management, and economics all play a part in positioning operations. Resulting changes in the market requirement and product/service positioning matrix can change unit costs. Movement in any direction on the matrix should not be thought of as a natural evolution but should be meticulously planned. Goods and services producers grouped in each of nine major transformation categories may be able to use similar planning, implementation, and control approaches.