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Introduction
Operation management focuses on carefully managing the processes to produce and
distribute products and services. Overall activities of operational management include
product creation, development, production and distribution. Related activities include
managing purchases, inventory control, quality control, storage, logistics and evaluation
(schmenner,1985).
Operational management often includes substantial measurement and analysis of internal
process. Ultimately, the nature of how operation management is carried out in an
organization depends very much on the nature of the products or services in the
organization .In this case, the main goal of this paper is to provide an analysis to the
business operation of AB Machines Tools.
Question 1
Innovations drive companies to the success and its not always the technology enables this
but there are many forms of innovations in different industries and some of these specific
innovations dominate over technology which is always rash as the number one
factor.Firstly innovation types like disruptive, application and product dominate the
technology adoption life cycle. Then, second suite of innovation process, experiential, and
marketing types comes to the force. Later, Business model innovation reframes an
established value proposition to the customer and Structural innovation capitalizes on
disruption to restructure industry relationship (Moore,G. 2004).In AB innovations like
product, application, process, experimental, marketing and structural were highlighted for
over many years.
Product and application Innovation:
Product innovation is crucial for a firm to get a competitive advantage in the business. AB
machine tools used the Product innovation, Asquith-Butler designers and senior
management followed technological developments and continuously redesigned their
products to exploits new technology. For example, Asquith radial drills and Butler shaping
machines were produced with extend of technology. Innovation was the order winning and
qualifying criteria in AB machine tools. Imaginative design solutions are most essential for
LE and VN applications. Also, computer Numerical Control (CNC) superseded the hard
wired Numerical Control. These product new technologies also provide major cost
benefits. , for example *ƒ²*ƒ"€š?Multiplex where a single wire replaces the complex
wiring.
AB used application innovation in phase3 by the introduction of Flexible manufacturing
systems where they are expect to extend their products LE and VN to new market to
support new customers like general engineering companies who are very cost sensitive and
they require more integrated technology and customization (Moreton K., 2005).
Process and experimental Innovation:
The most important innovation type for the AB Machine tools is the process innovation
and AB used it with latest technology and function to reduce the overall functional
complexity. They used Robotics, advanced material handling devices to handle the
