An Institutional Approach To Operations Management In Internet Based Production Concepts

Abstract

An important change in the socio-economic environment of industrial firms is the increasing diffusion of Internet Technologies in production processes. Applications of Internet Technologies may be directly implemented on the shop floor, e.g. in networking dislocated assembly lines, as well as in assisting management processes, e.g. in production planning and control. This leads to a strong approximation of the traditional production and operation systems and the Internet Technologies. While traditional production concepts, such as Lean Production, World Class Manufacturing and Agile Manufacturing, inevitably disregard this development, new production concepts arise that fundamentally consider the application of Internet Technologies on the shop floor. However, from a business management perspective, industrial firms have to accomplish new operating requirements deriving from this technological change. This paper provides a discussion of the consequences of Internet Technologies on operations management, as well as of production concepts based on Internet Technologies from an institutional point of view.