1.8 Conclusion

Let's return to our epigraph: "Operations is either a competitive weapon or a corporate millstone. It is seldom neutral." If operations are a millstone hanging from your neck, you are in trouble. Why, you ask? Because there is always someone who wants to put you out of business—especially in today's global marketplace! Consider the following competitive battles.

• Harley Davidson once dominated the touring motorcycle market. Then Honda and its Goldwing (among other big bikes) pushed a productivity-impaired, quality-riddled Harley to the brink of extinction. How did Harley respond? It adopted MAN (Materials As Needed)—its own version of lean operations. Only when it learned to efficiently make high-quality bikes, did Harley regain its aura and a new ability to compete in global markets.

• Airbus, the European airframe manufacturer, has taken share and profits from Boeing consistently for 25 years. Boeing's inability to assemble a glitch-free 787 Dreamliner cost it $30 billion and three-and-a-half years of first-mover advantage. Today, both airframe makers face emerging rivals from Brazil, Canada, China, and Russia.

• Tata Motors, an Indian car company perhaps best known for producing the world's cheapest car—the Nano—also happens to own two European luxury brands: Jaguar and Land Rover. How did this happen? Neither Jaguar nor Land Rover could efficiently produce a high-quality automobile.

The lesson is clear. Good ideas—i.e., new product innovation—are necessary. But, they aren't sufficient. If you want to remain viable, you have to excel at making things—or at least have a partner who does! Otherwise, you have nothing of value to offer to customers.