Innovation Management and

New Product Development

6th edition

Chapter 5
Operations and process
innovation

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Table 5.1
Operations inputs and outputs

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Figure 5.1
The operations manager’s role

Source: Adapted from Slack, N. et al. (2004) Operations Management, 4th edn, © Pearson Education Limited.

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Figure 5.2
Design simplification

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Figure 5.3
The design of processes

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 Process design and innovation

Process industries are characterised by:

•high production speed, short throughput time;
•rigid process control;
•high capital investment;
•clear determination of capacity, one routing for all products,
limited volume flexibility;
•low product complexity;
•low added value;
•strong impact of changeover times;
•small number of production steps;
•limited number of products.

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Figure 5.4
Typology of industries

Source: Taylor, S.G., Seward, S.M. and Bolander, S.F. (1981) Why the process industries are different, Production and Inventory Management Journal, vol. 22, no. 4, 9–24.

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Stretch: how innovation continues once
investment is made
• Process industries are characterised by large fixed items
of capital equipment.
• Change is thus expensive.
• Essentially ‘stretch’ here means evolutionary problem
solving.
• Intensity of use leads to familiar learning effects.
• Enhanced maintenance of the plant can lead to
improvements.
• Other changes can come from system-wide effects of
improvements in feedstock and downstream processing.
• Application development enables product development by
changing production process requirements.

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 Triggers for Innovation in the
management of the operations process
• Gap analysis
• Quality circles and process improvement teams
• Total quality management (TQM)
• Quality function deployment (QFD)
• The ISO 9000 approach
• The EFQM excellence model

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Figure 5.5
Innovation gap analysis

Source: Adapted from Slack, N. et al. (2004) Operations Management, 4th edn, © Pearson Education Limited.

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Table 5.3
Gap analysis

Source: Adapted from Slack, N. et al. (2007) Operations Management, 5th edn, © Pearson Education Limited.

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Figure 5.6
The EFQM excellence model

Source: Adapted from Slack, N. et al. (2004) Operations Management, 4th edn, © Pearson Education Limited.

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Table 5.7
Supply chain management

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Figure 5.8
Lean innovation

Source: G. Cohen (2011) Lean Product Management, © 2011 The 280 Group, reproduced with permission.

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