OM in the News: Smarter Hospital Alarms Show How Better Processes Save Lives

Hospitals are some of the most complex operations environments in the world, writes The Wall Street Journal (Sept. 29, 2026). Thousands of interdependent processes—clinical workflows, monitoring systems, documentation, staffing, and technology—must function with precision. When any part of that system becomes noisy, inefficient, or overloaded, the consequences can be serious. A striking example comes from an unlikely OM case study: hospital alarm fatigue.

In modern care units, monitors and pumps generate constant beeps signaling everything from minor fluctuations to life‑threatening deterioration. For patients, the noise disrupts sleep and recovery. For nurses, the sheer volume of alarms creates cognitive overload, making it harder to distinguish true danger from routine variation. In OM terms, this is a quality‑control failure caused by excessive false positives, poor signal design, and misaligned workflow triggers.

Researchers are now applying OM thinking to redesign the alarm ecosystem.

Reducing Non‑Actionable Variation Stanford Medicine introduced time delays and conditional triggers to filter out brief, self‑correcting changes in vital signs. This is classic process‑control logic: eliminate noise so workers can focus on meaningful signals. The results were dramatic—alarm volume dropped by up to 82% without compromising safety. Nurses reported better responsiveness, demonstrating how reducing process clutter improves human performance.

Human‑Centered Design for Quality Another team is redesigning alarms using principles from music cognition. Instead of harsh electronic tones, alarms use recognizable “auditory icons” and musical cues to convey urgency and type of problem. This is OM’s human‑factors engineering at work: improving quality by making information more intuitive, reducing worker stress, and speeding decision‑making.

Predictive Systems to Prevent Failure The most powerful OM innovation may be the machine‑learning tool Concern, which analyzes patterns in nursing documentation to detect deterioration before vital signs trigger alarms. It provides a quiet, color‑coded risk indicator rather than another disruptive alert. In a 60,000‑patient trial, units using Concern saw lower mortality and shorter stays. This is proactive capacity and risk management, shifting from reaction to prevention.

The OM Lesson Alarm fatigue isn’t just a clinical issue—it’s an operations problem. Smarter triggers, better signal design, and predictive analytics show how OM principles can transform safety, reduce waste, and improve outcomes in high‑stakes environments.

Classroom Discussion Questions

  1. How should hospitals balance the need for constant patient monitoring with the risks of alarm fatigue?
  2. What lessons from hospital alarm redesign—such as smarter triggers, better sound design, or early‑warning systems—could be applied to other industries that rely heavily on alerts?

OM in the News: The Two‑Cent Failure That Shut Down a Factory

In operations management, small and overlooked details can have outsized consequences. A well‑known example comes from a manufacturing plant where a single 2‑cent bolt caused nearly a month of downtime. The incident illustrates that the failures that matter most are not always the ones that occur most frequently, writes Industry Week (Sept. 22, 2026).

Predictive maintenance systems (see Ch. 17 in your Heizer/Render/Munson text) are designed to monitor components that commonly wear out. Sensors track performance, data models identify warning signs, and technicians intervene before breakdowns occur. When focused on familiar failure patterns, these systems perform effectively and prevent costly interruptions.

However, predictive systems only detect what they are built to observe. In this case, the bolt that failed was not instrumented. It was considered too inexpensive, too simple, and too unlikely to break. Because it was not monitored, the system had no way to provide an early warning. When the bolt snapped, the machine stopped immediately.

The true cost of the failure was not the price of the bolt but the time required to recover. The part was specialized and not kept in inventory. It had to be ordered from a specific supplier, and until it arrived, the production line remained offline. The result was weeks of lost output—far more expensive than any of the common failures the system was designed to predict.

The OM lesson is clear: rare failures can be more damaging than frequent ones if the organization is unprepared to respond quickly. Effective maintenance planning requires looking beyond the usual wear‑and‑tear components and identifying parts that, if they failed unexpectedly, would be difficult or slow to replace.

The most costly outage often comes from the part no one thought to monitor. Recognizing this blind spot—and planning for it—is essential for building resilient operations.

Classroom Discussion Questions

  1. How should organizations balance monitoring common failures with preparing for rare but high‑impact failures?
  2. What criteria—not just failure frequency—should be used to decide which machine components deserve monitoring or backup inventory?

OM in the News: AI Moves Into Physical Operations — Transforming Inventory, Quality, and Maintenance

AI is rapidly shifting from digital decision‑support to hands‑on operational control. As AI systems move into the physical world, they are reshaping core OM functions—especially inventory management, quality assurance, and maintenance. For operations managers, this marks a transition from AI as an analytical tool to AI as an active operational partner, writes The Orlando Sentinel (Sept. 20, 2026).

AI and Inventory Management Inventory systems (see Chapter 12 in your Heizer/Render/Munson text) are becoming increasingly autonomous. Instead of relying on periodic counts or manual updates, AI‑enabled sensors and vision systems now track materials in real time—monitoring stock levels, identifying misplacements, and even predicting shortages before they occur. Machine‑learning models can dynamically adjust reorder points, safety stock, and lot sizes based on demand variability, supplier reliability, and production schedules. The result is tighter control, lower carrying costs, and fewer stockouts.

AI‑Driven Quality Assurance Quality management (see Chapter 6) is undergoing a similar transformation. High‑resolution cameras, acoustic sensors, and thermal imaging feed continuous data streams into AI models capable of detecting defects far earlier—and more accurately—than human inspectors. Instead of sampling, AI enables 100% inspection at full production speed. These systems not only flag defects but also trace root causes by linking anomalies to machine settings, operator actions, or upstream materials. Quality becomes proactive rather than reactive.

Predictive and Autonomous Maintenance Maintenance (the topic of chapter 17) is perhaps the area where AI’s physical presence is most visible. Predictive maintenance models analyze vibration, temperature, and performance data to forecast failures before they occur. More advanced systems automatically adjust machine parameters to prevent breakdowns, optimize lubrication cycles, or balance loads across equipment. This reduces downtime, extends asset life, and stabilizes capacity planning.

The OM Challenge Ahead As AI becomes embedded in physical operations, managers must rethink process design, workforce skills, and risk management. Inventory, quality, and maintenance systems will increasingly operate autonomously—but they still require human oversight, ethical safeguards, and strategic alignment. The future OM leader must be fluent in both operational fundamentals and AI‑driven decision‑making.

Classroom Discussion Questions:

  1. How will AI‑enabled real‑time inventory, quality, and maintenance systems change traditional OM decision frameworks?
  2. What new risks arise when AI autonomously adjusts physical processes, and how should managers design controls to mitigate them?

OM in the News: Using AI to Keep Trucks on the Road

“In the trucking industry, few things will sour a manager’s mood like a mechanical failure disabling an 18-wheel rig in the middle of a big delivery,” writes The Wall Street Journal (March 12, 2019). But if mechanics can predict when a pump or cable or other component is about to fail, they can avoid having a truck stuck on the side of the road.

NFI Industries Inc., a $2 billion N.J.-based company, is using artificial intelligence to anticipate when the truck components in its 2,200 tractors and 9,700 trailers need adjusting or replacing. By predicting maintenance and reducing malfunctions, NFI expects to reduce truck maintenance and repair costs by 7%, or $1.5-$2 million a year.

NFI’s data is taken from truck sensors, odometers, speedometers, repair logs, temperature logs and other sources. The information collected includes truck ages, route distances, payload weights, weather conditions, driving conditions, and even the braking and accelerating styles of individual drivers. That data is analyzed by Noodle.ai, a San Francisco startup that pushes the information through a supercomputer nicknamed The Beast. Noodle.ai’s machine learning technology synthesizes the disparate bits of data to determine when a $100,000 rig needs an oil change, a filter replacement, a brake adjustment or a new set of tires.

As a result, NFI is jettisoning a sacrosanct industry ritual: regular truck maintenance and mandatory oil changes every 30,000 miles. Instead, the company is switching to less frequent tuneups, as prescribed by AI, that are based on a truck’s age, wear, driving conditions and a host of other factors. NFI’s trucks break down about twice a year, on average. The company expects predictive maintenance to reduce those mishaps to 1.5 breakdowns a year per truck. Among the surprising insights AI has produced: NFI had been procuring a truck model from a manufacturer that offered a $10,000 purchase incentive per truck. But over a lifespan of five to six years, that truck model was costing NFI about $25,000 more in maintenance and repair than other trucks.

Classroom discussion questions:

  1. What is the difference between predictive and preventive maintenance?
  2. What is the role of AI at NFI?

OM in the News: Using Machine Learning to Keep the Beer Flowing

Anheuser-Busch uses this sensor to pick up ultrasonic sounds coming off conveyor belt and motors.

The world’s largest beer maker is using low-cost sensors and machine learning to predict when motors at a Colorado brewery might malfunction, reports The Wall Street Journal (Jan. 24, 2019).  The Anheuser-Busch plant was the first among the company’s 350 beer facilities to test whether wireless sensors that can detect ultrasonic sounds—beyond the grasp of the human ear—can be analyzed to predict when machines need maintenance. “You can start hearing days in advance that something will go wrong, and you’ll know within hours when it’ll fail. It’s really, for us, very practical,” said the VP.

The installation at the brewery cost just $20,000. Since the system was deployed, it has predicted pending equipment failures and prevented unscheduled production-line halts, and more than $200,000 in product loss. (The Colorado plant employs 580 people and ships 225 truckloads of Budweiser, Bud Light and other beer brands each day).

Sensors have been used for predictive maintenance in the past, but they were unable to transmit information in real time. Advances in processing data at the edge of the network, referred to as edge computing, enable companies to collect and analyze real-time sensor data from machines. Machine learning refers to the subset of AI that allows computers to act “intelligently” without being explicitly programmed. Algorithms can increase the accuracy of predictions based on large amounts of historical and real-time sensor data.

Organizations that own wind turbines or jet engines are expected to save about $1 trillion a year as a result of predictive maintenance techniques. Sound-based predictive maintenance is becoming more important for companies, as there has been a wave of retirements among workers who were tasked with listening to machines to identify potential breakdowns. The price of internet-of-things sensors is expected to fall to 26 cents on average by 2024, from 46 cents in 2018.

Classroom discussion questions:

  1. What is predictive maintenance?
  2. How does this differ from “breakdown maintenance?”

OM in the News: A Primer on Predictive Maintenance

“Nearly everyone in manufacturing, from equipment manufacturers to processing plants, commonly face the challenge of keeping their fleet, machinery, and other assets working efficiently, while also reducing the cost of maintenance and time-sensitive repairs,” writes Industry Week (Dec. 6, 2018).  So it is crucial to identify the cause of potential faults or failures before they have an opportunity to occur. Emerging technologies such as the Industrial Internet of Things, data analytics, and cloud data storage are enabling more vehicles, industrial equipment, and assembly robots to send condition-based data to a centralized server, making fault detection easier, more practical, and more direct. By proactively identifying potential issues, companies can deploy their maintenance services more effectively and improve equipment up-time.

Using AI to identify anomalous behavior, the information derived from the equipment sensors can be turned into meaningful and actionable insights for proactive maintenance of assets, thereby preventing incidents that result in asset downtime or accidents. Known as predictive maintenance (a topic we have added to Chapter 17 in our new edition, due out Jan. 1st), this added intelligence enables organizations to forecast when or if functional equipment will fail so that its maintenance and repair can be scheduled before the failure occurs. As industrial customers become increasingly aware of the growing maintenance costs and downtime caused by the unexpected machinery failures, predictive maintenance solutions are gaining even more traction.

Predictive maintenance is also a step ahead of preventive maintenance. As maintenance work is scheduled at preset intervals, maintenance technicians are informed of the likelihood of parts and components failing during the next work cycle and can take action to minimize downtime. In addition to the advantages of controlling repair costs, avoiding warranty costs for failure recovery, reducing unplanned downtime and eliminating the causes of failure, predictive maintenance employs non-intrusive testing techniques to evaluate and compute asset performance trends.

Classroom discussion questions:

  1. How do preventive maintenance and predictive maintenance differ?
  2. What technologies are allowing predictive maintenance to spread?