The Social Consequences of Operational Efficiency
Efficiency reduces costs, but at what price?
Think back to the last time you ordered something at a fast food restaurant. Maybe you were in line for a few minutes, but shortly after arriving you had food in your hands and you were on your way. And to offer that level of consistent service, someone had to design it that way.
How much do we really understand about the consequences of efficient systems? When studying operations, you’re likely to come across some words of wisdom like, “variability makes systems more difficult to manage,” or “look for ways to eliminate sources of complexity.” But what if that variability comes from the profile of customers that you serve? And that complexity comes from managing the payroll of your staff? The social consequence might be restricting access to services or outsourcing your labor.
In operations, good systems are efficient systems. And to be clear, I’m not advocating that we change this paradigm. But by understanding how operations managers make decisions — either by reducing variability or accommodating it — we start to see some profound effects for workers and customers alike.
