Showing papers in "International Journal of Business Excellence in 2011"

Modelling the barriers of Six Sigma using interpretive structural modelling

Abstract: Six Sigma attempts to reduce opportunities to commit mistakes through systematic and statistical driven approach, therefore, business excellence and Six Sigma go hand-in-hand. This paper, attempts to model barriers in Six Sigma implementation by establishing relationship among them through interpretive structural modelling (ISM). Twelve barriers have been identified through literature survey and later validated through a questionnaire based survey. The ISM model classifies barriers into strategic, tactical and operational category. The driving power and dependency of these barriers are also modelled using MIC-MAC analysis. The result provides insight into the effective approach to counter these barriers.

Successful implementation of Six Sigma in services: an exploratory research in India Inc.

Abstract: Six Sigma has received considerable attention in the service sector. The intention of this paper is the representation of the key findings obtained from a pilot survey carried out in Indian service organisations. It presents some of the difficulties, implementation issues and success factors, and also, the benefits of Six Sigma in service organisations, tools and techniques of Six Sigma in service performance improvement and key criteria for the selection of winning projects, illustrated with results of a Six Sigma pilot survey in Indian service organisations. The outcome of the research illustrates that the bulk of service organisations in the India has been engaged in a Six Sigma initiative for over three years. The average sigma quality level of the organisations was around 2.9. This is a first paper on status of Six Sigma in Indian service organisations and will be immense use for academia and practitioners.

Assessing suppliers for strategic integration: a portfolio approach

Abstract: Since Kraljic’s (1983) seminal work, purchasing departments in the most successful organisations adopted portfolio approaches to supplier management. However these models fail to consider final market demand and price volatility, thus leading buyers to establish with suppliers long-term relationships also when the investments are not properly rewarded. Moreover, portfolio approaches provides high level guidelines seldom integrated with operative tools such as vendor rating systems. This paper presents a new portfolio model that, taking into account final market features, indicates both the level of right buyer-supplier integration and the evaluation parameters to assess when choosing the supplier for that relationship. Expert interviews and a case study have been performed to test the proposed model. The results indicate that, for high supply market risk, strategic product must be purchased with different strategies depending on the difficulty of the downstream market. Moreover, different parameters shoul...

Reflections on strategic insights for winning in the complex emerging market of India

Abstract: This is a time in India when in certain industries which were not commoditised until a few years ago are getting commoditised. Further, in certain industries that were not customised until a few years ago, customisation is happening. Industry convergence is making things more challenging as is dynamic pricing and hypercompetition. These five phenomenons have been named HDC3 constructs in this article. This article attempts to find answer to reasons for why these five phenomenons are simultaneously happening. It was found that technological advancement, rising customer base and expectations, increased competition are some of the reasons driving the five phenomenons. The deliberations in this article would help managers to better comprehend the situation. Further, the strategy to counter simultaneous occurrence of HDC3 constructs at the product/service level has witnessed very limited research because it is a very recent phenomenon. Thus, this article would also contribute theoretically. Further, since this...

Quality and productivity improvement using Six Sigma and Taguchi methods

Abstract: This research study proposes an innovative analysis for controlling the defects in aluminium die casting business. Six Sigma DMAIC (define, measure, analyse, improve, control) methodology is used to analyse the problem. Process validation is done with Taguchi DOE and ANOVA analysis at 95% confidence showed that the metal temperature is the vital process parameter causing defects. Confirmation experiment at optimum process parameter level showed defect level reduced from 17.22% to 4.8%. Since aluminium die casting is one of the most widely used process for producing automobile components, this study provides a methodology for improving the die casting business excellence.

Performance measurement of SHER service supply chain: a balanced score card – ANP approach

Abstract: The prime objective of this paper is to analyse the performance of safety, health, environment and risk (SHER) consultancy service supply chain (SSC) in the Indian context. One of the crucial problems faced by the management is the comparative evaluation of the various alternatives of decision problem. Current decision makers and researchers witness the power of the analytic network process (ANP) as an improved solution for this multi dimensional evaluation problem. ANP model structures the decision problem in a hierarchical form and links the determinants, dimensions, and enablers with alternatives available to the decision maker. Therefore, in this paper, the dimensions of SHER service sector have been captured in four perspectives viz. customer, internal business, innovation and learning, and finance, which mimic a balanced score card. The three services (consultancy, training and testing) provided by the organisation have been considered for analysis. The priority is expressed in terms of overall weig...

Performance measurement in collaborative networks: a proposal of performance indicators for the manufacturing industry

Abstract: Collaborative networks are believed to bring benefits to its participants once they share risks, knowledge and profits. However, in order to obtain successful outcomes, a network must be properly designed and managed, which comprises controlling network performance. Thus, this paper puts forward a series of measurement themes and performance metrics to measure collaboration among manufacturing organisations in a network characterised by subcontracts. So as to achieve this objective, literature on collaborative networked organisations (CNOs) and performance metrics for collaboration is reviewed. Afterwards, a field study is carried out in a Brazilian network of firms that produce capital goods. A description is given on how this network is formed, managed and how its elements relate with each other. Then, a set of performance measures is suggested for each measurement theme. Finally, considerations are made on the research findings and limitations.

ISO certification and business performance: empirical findings of Indian SMEs

Abstract: India has emerged as one of the top ten countries in recent years to become fourth-largest manufacturing economy of the world. Both ISO 9000 and TQM have played the major role in building and developing the Indian economy. Literature indicates that in the past, several scholars have looked upon the issue of ISO certification in relation to business performance and continual improvement. The present paper has incorporated the length of time with ISO certification to investigate the relationship with business performance. The investigation and findings of this study will provide the useful information to several quality practitioners dealing in continual improvement through ISO certification in SMEs.

Demand forecasting of tea by seasonal ARIMA model

Abstract: A tea packaging company in India was implementing supply chain planning process to improve its delivery performance. For this purpose the company was interested in forecasting the monthly demand for tea from its depots across the country. Time series data on demand of tea for 57 months were available. This series was modelled by Box-Jenkins seasonal auto regressive integrated moving average (ARIMA) model. Adequacy of the fitted model has been tested using Ljung-Box test criteria followed by residual analysis. Thus, the most appropriate model was used to forecast the monthly demand of tea. This model has helped the organisation to plan the production activities more efficiently so that shortages or excess production can be avoided.

Trust and commitment-based satisfaction and the impact on specific investments, formalisation and opportunism

Abstract: Researchers claim that trust, commitment and satisfaction constitute core dimensions in relationship quality so important to business success. However, there does not seem to be a consensus on how these core quality constructs inter-relate, nor how they relate to important outcomes. Consequently, this study examines whether satisfaction plays a mediating role between trust and commitment and three important outcomes. Leading executives in Taiwanese manufacturing companies were contacted, and the questionnaires were analysed using confirmatory factor analysis and structural equation modelling. The empirical testing supports the proposed theory that satisfaction is a mediator between trust and commitment, and specific assets, opportunism and formalisation. All five hypotheses in the model were supported. This study makes a contribution to theory outlining as it does a set of constructs, all of which are positioned in an AMP-model (i.e., antecedents, mediating and postcedents) for the benefit of other resear...

Strategic quality management: the role of process ownership, management and improvement

Abstract: This article discusses process management concepts that are essential to improvement initiatives such as strategic quality management, total quality management, Six Sigma, and lean manufacturing. One critical element to understand is ‘process’ because processes must be documented, and process owners must be identified before processes can be validated, managed and improved. A key concept is the role that process stakeholderstm play in the improvement of processes. Another vital concept is the relevance of empowerment to process ownership and improvement. The concept of value and its importance to customers is also discussed. The question is asked (and answered): “What must people do in order to improve processes?” Finally, measurement and baselines are discussed, and examples of processes, process owners, measurements and suggestions for improvement are provided.

Implementation of ISO TS 16949 towards business excellence – results from a case study

Abstract: The growth of ISO 9001 certifications all over the world confirms the enterprises’ interest in international standardisation. The standards have impacted different industrial systems such as the automotive. Assemblers have developed specific documents usually based on ISO 9001 so that their suppliers have been faced with multiple, mandated requirements for quality certification. In this context, technical specification ISO TS 16949 was developed with the objective of standardising the quality system procedures, responsibilities and processes at the international level. This paper aims at investigating the results of TS 16949 implementation and the strategy used by an autoparts company to obtain its certification. A case-based research was adopted as the research methodological approach by gathering data from interviews, work environment observation, and document analysis. The results obtained from the study revealed that during the preparation for certification, the company’s organising framework helped o...

The emissions trading scheme: an analysis on its economic instruments and methods to reduce greenhouse gas emissions

Abstract: This paper discusses some of the economic issues likely to be encountered when establishing an emission trading scheme and highlights some economic instruments that can be used to battle carbon emissions. A summary of the current initiatives to climate change management is presented in this paper, including a review of the different types of schemes proposed under carbon trading. The various stages in developing emissions trading scheme is discussed in detail. The pricing of carbon credits and some of the limitations in implementing an emissions trading scheme are also analysed at length.

Application of Taguchi method to optimise the characteristics of green sand in a foundry

Abstract: This article addresses an approach based on Taguchi method for optimising the ingredients of green sand in a foundry. Permeability and compression strength were the important characteristics of green sand. Optimisation of these characteristics was done through the application of Taguchi method of experimentation. Three factors were identified and experimented in an L9(34) orthogonal array. Signal-to-noise ratio method was used to analyse the data and the best levels for these factors were selected. As a result of the experimentation, in addition to the identification of optimum levels for the ingredients, the proportion of Bentonite and coal dust were reduced considerably. This was leading to a large financial benefit for the company.

Flexible strategic framework for managing forces of continuity and change – study of inward supply chain of a leading automotive company in India

Abstract: Continuity and change are the main parameters of any strategy paradigm. Traditionally these have been treated in an ‘either-or’ basis. A lot of work has been done on managing continuity with incremental improvements. In the recent past, significant changes have taken place in the automotive sector in the world and India is no exception. Most of the literature has focused on strategic change and gradual transformation. However, dealing with flexibility, continuity and change has been an area of growing interest as a large number of organisations in the auto sector are faced with turbulence. This research work focuses on study of ‘inward supply chain management’ of a leading auto company in India in order to understand how they are coping up with the forces of continuity and change. Based on this research, the aim is to develop a flexible framework for effectively managing continuity and change in managing automotive supply chains leading to business excellence.

Strategic technology management in practice: SAP-LAP hills analysis of an automobile manufacturer in India

Abstract: The automotive industry in India has seen the entry of almost all global auto majors post-liberalisation. To keep pace with the changing automotive world, the companies have adopted newer ways of thinking and also adopted work practices conducive to the changed environment. One of the important elements that the organisations have come to appreciate is technology management. A structured approach to technology management has been the key to better business performance. In India, we find specific examples of organisations that have put the strategic technology management into practice and improved their business performance through effective synchronisation between their technology and business strategy. This article deals with a case study carried out in an Indian automotive major, Maruti Suzuki India Ltd. The various situations encountered by the organisation were considered for study, analysed by SAP-LAP hills technique to find processes that had maximum potential for change management application. Organisations need to learn from previous situations and by locating the best key result area, it can be recommended to concentrate there and give prime considerations to such situations and how actors need to behave and how process need to be scheduled under similar situations.

Analysing cognitive determinants in managerial decision-making

Abstract: Personality traits of managers are the predictors of employee satisfaction and performance drivers in the business organisation. Behavioural determinants of the manager largely affect the work-culture environment of an organisation. This paper discusses the behavioural insights that are instrumental in improving the performance of managers in terms of efficiency, adaptability to the work environment and operational effectiveness. Cognitive dimensions not only have a strong direct effect on perceived performance of managers, but also mediate the effects of a number of other psychosocial variables. This paper delineates various personality traits that lay positive influence on managers. The authors identify ten personality traits of managers as intangible assets that help drive the positive performance of business firms.

Productising expert services of performance management

Abstract: The paper focuses on the packaging and productising of expert services of a performance management tool. The empirical part of the study utilises a productising process selected from current literature. The productisation process of a survey tool, conducted for the evaluation of factors behind successful operative level performance measurement, has been selected as a case of productising expert services of performance management. The constructive research method is used. The study provides guidelines that should be taken into account when productising expert services of performance management.

A performance-based decision-making tool for supply chain reengineering

Abstract: The purpose of this paper is to present a decomposition-based decision-making tool incorporating supply chain balanced scorecard performance measures for supply chain reengineering. Following a literature review on supply chain performance measures and reengineering models, various dimensions and approaches to supply chain reengineering are explored. Based on the insights gained, using the axiomatic design technique, a performance-based supply chain reengineering model is developed. In line with literature, the study conveys that there is still a large room for improvement for developing balanced supply chain measures that address different parts of the supply chain. This paper focuses on supply chain reengineering models where no conclusive work exists and is expected to fill a gap in the area and be instrumental to both researchers and practitioners by providing a direction for coherent decision-making on supply chain reengineering studies.

Shifts in organisational design, culture and structural paradigms in financial organisations during economic recession

Abstract: In the rapidly changing global business environment multinational organisations experience the principal design challenge in managing differentiation in work culture and organisational structure towards achieving predetermined goals. Organisational design is a process involving development of control measures that help in coordinating organisational tasks and motivate the people to improve their performance. This paper discusses managing the values and organisational change in financial institutions during economic recession and driving sustainable growth. The discussion demonstrates a sustainable paradigm for managing performance and sustainable growth of financial institutions by converging traditional design activities, work culture, and monitoring and evaluation measures. Practitioners can benefit from the discussion presented in the study to clarify, improve and enrich new approaches of organisational designing during economic crisis.

Who achieves continuous improvement? TQM implementation in a global organisation

Abstract: This study aims at clarifying how organisational and environmental characteristics affect the timing of adoption and especially the depth of the implementation of the innovation that improves operations management (TQM). While organisational applications of the theory of innovation diffusion usually concentrate on explaining variations in adoption across organisations, this study explains the implementation phase within one organisation. The developed model for measuring depth of implementation adds value to the paper. A model is built based on the theory of innovation diffusion, and subsequently tested on the following dataset collected from a global process-industry company: 1 a longitudinal data of the continual improvement process 2 a survey data from 493 respondents. According to our results, timing of adoption has an effect on the depth of the organisational innovation and the developed model for studying the depth worked well. The organisational characteristics had varying effects on the adoption and on the depth of the implementation. Formalisation assists the innovation implementation while interconnectedness, empowering leadership or position in the value chain did not have an effect.

Employees’ knowledge sharing behaviour and work engagement: the role of organisational politics

Abstract: Politics is an inevitable fact of organisation life. Political behaviour in an organisation is mostly covert and subject to differences in perception. The presence of organisational politics is a situational indicator based on individual interpretations of the organisational climate that is expected to influence employee behaviour. If employees perceive a highly political organisational atmosphere, all behaviour in the organisation will be interpreted in that light. The objective of the present research was to test a model of the relationship between employees’ perceptions of organisational politics and their tendency to engage in knowledge sharing behaviour and their work engagement. It conjectures that if employees perceive more politics in organisation, they are less likely to be involved in knowledge sharing behaviour and will be less engaged. It also examines the influence of organisational politics on job satisfaction and intention to quit. Data were collected from 114 full-time employees. Results i...

Managing exploration and exploitation of opportunities: an entrepreneurial case study

Abstract: The research on the interplay of exploration and exploitation of opportunities is incompatible and its results and models are ambiguous. Past research witness that exploration and exploitation can co-exist, are parallel concept and are indeed necessary for long term survival and growth of firms. However, literature seems to lack clear and viable assertions in relation to timing and execution of exploration and exploitation. This has been an impediment to develop a better understanding of how and when to manage the exploration and exploitation absurdity. This paper takes the focus of incorporating creativity and innovation as a means to understand exploration and exploitation. An entrepreneurial framework within the context of opportunity and risk mindset was developed to highlight the role of exploration and exploitation. Empirical findings were gathered through an Australian-based case study, Aspire Solutions Group in providing practical avenues for organisations in making investment decisions relating t...

Structuring for innovation – a review

Abstract: The paper deals with the fact that organisational structures are omnipotent in shaping the innovation activities of the organisation and structure along with culture is intricately related with the way innovation is managed or implemented in any organisation. This paper has dealt extensively in understanding the two modes of governance that of organic and mechanistic and their interplaying role in shaping the ultimate innovative activity. The review has been extensive including papers from 1952 to 1997 with a concluding paragraph consisting of a brief summary, and some discussions of the review. From 1996 to 2010, a new trend to differentiate innovation has come, namely aspects like ‘exploitative innovations’; ‘exploratory innovations’; etc. are extensively dealt with in innovation literature which in turn gives rise to new organisational structures. This paper has also included those papers from 1995 to 2010 which deals with these new categorisation, new dimensions of innovation which were previously unexplored. This review can be a reference for researchers in the area of organisational studies.

Towards a framework for innovations

Abstract: In this paper an innovation framework – an organic system consisting of different stages of innovation process, a repository of innovations and requirements from individuals and ecosystem – has been formulated. The innovation process has multiple interrelated, mutually supportive stages that cover distinct aspects of innovation and, they are creative thinking, idea screening, idea development and value delivery. The paper delves deeper into the value delivery stage and has proposed a focal structure governed by Deming/Shewhart PDCA cycle and is illustrated by using real life data collected from a variety of organisations. Affinity diagram is used as a primary technique to provide levers and anti levers for a given type of innovation in the structure. Artificial neural network technique has been used to prove correctness of the framework. The framework has the potential to analyse the outcomes of innovations and to synthesise levers and anti levers for facilitating the execution of innovations of different types.

Critical success factors for budgeting systems in the German context: an empirical analysis

Abstract: In recent years, the contribution of budgeting to corporate success is being questioned. In spite of this criticism, scholars have hardly presented any context-specific and integrated recommendations about how to design budgeting systems. Instead, most suggestions are mere descriptions of individual aspects which are often based on anecdotal evidence only. This paper provides empirical findings on how companies in Germany organise their budgeting systems and which success factors contribute to an effective and efficient budgeting system. The paper is based on a case study approach. First, four budgeting types are compiled based on an extensive literature review. Second, 12 case studies are used to analyse the configuration of budgeting systems in Germany in order to detect context-specific strengths and weaknesses and to provide recommendations for improvement. The results confirm the four different budgeting types. Their specific configuration is contingent upon company size and rivalry of the industry. The findings provide insights into how to adjust a company’s budgeting system to context-specific requirements. Furthermore, it supports managers in the analysis of their budgeting systems and reveals areas for improvement.

Do technology alliances create more value than marketing alliances

Abstract: Strategic alliances play a prominent role in firm competitiveness. While the number of strategic alliances formed increases year after year, the research evidence on alliance success is conflicting. This study compares marketing and technology alliances during the technology era, 1996–2003. The sample size for the two groups is 91 and 109, respectively. On the basis of the Fama-French three-factor model, we find that the stock market considers the announcement of marketing and technology alliances to be a zero NPV project (whether alliance partners are considered individually or not). Also, we find that between alliance partners the larger firms exhibit better bargaining in technology alliances than in marketing alliances.

The Nature of environmental problems and environmental degradation

Abstract: A basic characteristic of environmental problems is that they are cross-disciplinary and it is this characteristic that so often makes them difficult to solve. This paper reflects an increasingly holistic perspective of environmental literature in the last few decades. It seeks fundamental explanations for environmental problems in economics, culture, resource, pollution and population problems. Environmental studies have been bedevilled by a multiplicity of facts and theories, some of which contradict each other. This paper attempts to be comprehensive yet digestible by concentrating on theories that are arguably true.

Prediction of corporate financial distress in glass and glassware sector of India

Abstract: Empirical researchers and practitioners frequently use bankruptcy prediction model developed by Altman (1968) which poses a potential problem for practitioners and researchers working with Indian data as Altman model was developed using US data. This paper attempts to analyse the financial health of glass and glassware sector in India and test whether Altman’s Z score model can predict correctly the corporate failure of the glass sector in Indian context for the study period, 2000–2001 to 2006–2007. Our result shows that Altman’s model performs well in predicting failure. The Z score from the analysis shows that it is less than 1.81 in all the years implying that this sector has increased its debts and will be facing bankruptcy in the near future unless regulatory measures are taken to tackle the adverse situation. The study shows that individual ratio within the multiple discriminate framework has depicted dismal gloomy picture signifying inefficiencies within the firms that may endanger financial health of Indian glass companies and consequently, most of the glass producing companies in India has been caught in a vicious down cycle facing a threat to their viability and survival.

Corporate performance evaluation: a multicriteria methodology and an application on the Athens Stock Exchange

Abstract: In this article, we present a multicriteria methodology for supporting decisions that concern the evaluation of the overall corporate performance of firms, on the basis of financial analysis. The methodology’s key-characteristic is that the firms participate in the evaluation process are categorised in classes, with respect to their corresponding industry. In this way, the huge issue of competition between rival firms is fully taken into consideration, while unreasonable comparisons between them are excluded. Moreover, the crucial importance issue of accounting singularities between business sectors is also strongly taken into account. The evaluation of each class of firms is based on specialised criteria set which correspond to the specific accounting plan each company belongs in. The validity of the proposed methodology is tested through a large scale application on the Athens Stock Exchange. Finally, an elaborate review of the coherent research studies is also provided.