Many traditional strategies of operations - such as just-in-time, lean manufacturing and offshoring - may not be quite tricky in today's global economy, marked by the growth of labor costs in developing countries and the huge volatility in oil and other commodity prices. Adhere to received wisdom risk doing more harm than good, jeopardizing control of the company over its supply chain. This article is based on the book Operations Rules: Delivery of customer value through flexible operation, the author decides Seven myths that companies often struggle with in their work. Recognizing these myths, he says, can help organizations avoid potential problems. Unfortunately, some of these errors are disguised as quite reasonable, strategic goals. But when these traps are observed, the organization is almost guaranteed to fail or miss opportunities. Considering issues such as cost reduction, product specifications and information technology, the author stresses that flexibility is the key for companies to innovate their operations and supplychain strategy and compete in turbulent times. "Hide
by David Simchi-Levi PhD. Source: IESE-INSIGHT MAGAZINE 8 pages. Publication Date: March 15, 2011. Prod. #: IIR048-PDF-ENG
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