Innovation and Its Management: A Production Manager's Perspective

Production managers look to innovative practices and equipment to reduce operating costs and improve efficiency. These innovations apply to both technical and social aspects of production operations and may be high-tech or low- tech in nature. They may be based on the implementation of a few large-scale "breakthrough projects or numerous small-scale activities, depending on the availability of capital funding and the company's past experience. Successful managers systematically identify innovative opportunities that capitalize on their organization's expertise. They quantify the associated benefits and risks and then manage the implementation of selected innovations to minimize cost and uncertainty. They monitor the results of the innovation after it has been implemented and adjust operating and managerial practices as necessary to maximize the innovation's benefit.