Showing papers in "International Journal of Operations & Production Management in 1995"

Performance measurement system design: A literature review and research agenda

Abstract: The importance of performance measurement has long been recognized by academics and practitioners from a variety of functional disciplines. Seeks to bring together this diverse body of knowledge into a coherent whole. To ensure that the key issues are identified, focuses on the process of performance measurement system design, rather than the detail of specific measures. Following a comprehensive review of the literature, proposes a research agenda.

Alternative paradigms for manufacturing strategy

Abstract: Over the past 20 years, the field of manufacturing strategy has developed many different approaches. Argues that there are three distinct paradigms in manufacturing strategy: competing through manufacturing; strategic choices in manufacturing; and best practice. Each is reviewed and its strengths and weaknesses discussed. Finally, the relationship between them is discussed and a cycle of manufacturing strategy is proposed.

Action research: a new paradigm for research in production andoperations management

Abstract: The continuing debate on production and operations management (POM) research has led to a new emphasis on empirical methods. Claims that, while surveys and case research are increasingly recommended to POM researchers, action research has been relatively neglected. The distinct characteristic of action research is the intervention by the researcher in the situation under study. The nature of the intervention, and of action research outputs, differs however from consulting or from the applications reported by APICS. Explains these differences and offers a simple model of action research. Action research is particularly valuable for theory building, as has been seen in the fields of organization behaviour (OB) and management information systems (MIS), where qualitative methods have often been employed rather than traditional scientific methods. POM researchers can learn from the experience of other disciplines and use action research to create new theory. Since many POM researchers will be unfamiliar with action research, explores some practical aspects of conducting such investigations with illustrations from the author′s own research experience. Concludes by showing that a properly conducted action research project can be as rigorous as other methods.

Environmental management and its impact on the operations function

Abstract: Recently, corporations have been confronted with a number of global environmental challenges such as global warming, acid rain, depletion of natural resources, waste management, green consumerism and pollution prevention. There is growing pressure to deliver products and services which are environmentally compatible. A number of corporations such as Du Pont, 3M, AT&T, Xerox and Procter & Gamble are, therefore, integrating various environmental policies and programmes into their operations strategy and specific decisions concerning operations such as product design/planning, process technology selection, and quality management. Introduces the concepts of environmental management (EM) and argues that firms which do not recognize the implications of environmental problems on the operations function will not succeed in the competitive market. Various environmental management practices (such as implementing aggressive pollution‐prevention programmes, initiating environment‐related performance measures and deve...

Measuring complexity as an aid to developing operational strategy

Abstract: One of the difficulties in developing a coherent operational strategy is to know how the various elements of a manufacturing system interact and to assess the relevant importance of each Looks at the manufacturing systems and how complex they are A measure which calculates the systems′ complexity and the contribution from each operational source has been developed It thus provides a tool that can assist in a strategy development exercise by quantifying the problem areas on a common basis The approach has been used at three manufacturing sites The resulting analysis allowed the local management, in each case, to identify the key areas of weakness, in both the short and medium term As such it gave each of them a possible starting‐point from which to formulate an operational strategy

Manufacturing strategy: propositions, current research, renewed directions

Abstract: A substantial number of propositions have been made over the last 20 years regarding the content of manufacturing strategy and the process of strategy development and implementation. Although many of the propositions have been well received, few have been rigorously tested via empirical methods. Reviews empirical research efforts to date in order to assess the effectiveness of current research directions and methodologies in evaluating earlier propositions. Discusses strengths, weaknesses and directions for future research in each area of manufacturing strategy.

Change processes towards lean production

Abstract: Explores the role of the management accounting system in the process of adopting a complex manufacturing strategy, lean production. Finds, in a longitudinal field study, using the clinical methodology, that in order to change the management accounting system to support the adoption of lean production, traditional performance measures have to reach a certain threshold. An important way to create impetus for this change is to raise the level of the unit of analysis in the management accounting system, both horizontally and vertically. Finally, the management accounting system affects the process in three concurrent ways: technically, through its design; formally, through its role in the organization; and cognitively, through the way in which actors think about and use the management accounting system. Proposes that in order for the system to be congruent with lean production principles, all three of these perspectives need to be changed.

A framework for the design of manufacturing strategy processes

Abstract: Proposes a framework for considering the factors relevant to the design of manufacturing strategy processes. The framework is built from manufacturing and business strategy literature through a review which positions popular strategies like Cellular manufacturing, TQM and JIT within more traditional manufacturing strategy frameworks and includes aspects of strategy that have been rarely mentioned in the manufacturing strategy literature. Thus competence, capability, culture and alternative strategy process modes are incorporated and throughout the review potential influences on the design of the strategy process are identified. Finally the framework′s ability to assist the design of a manufacturing strategy process is tested and the dependence of key process elements like the procedure and tools used are shown to be contingent on, for example, the outputs required from the process and the content areas under development.

A methodology for assessing time‐based competitive advantage of manufacturing firms

Abstract: Compressing the time from idea to market has become a focal competitive priority of global manufacturing companies. Develops a framework that assesses the strategic value of a company in terms of its “time” performance. The primary tool employed to accomplish this is an agility matrix whose cells represent intersection of agility‐determinants and segments of time‐to‐market. After grading a company on each cell, a weighted sum, called the “agility index” is computed, which is an indicator of the firm′s capability to compete on time.

Lead‐time reduction: the search for competitive advantage

Abstract: Generic product offerings in a boundaryless competitive environment do not support economic viability. Time‐based dimensions of a product are becoming an increasingly important component in assessing strategic advantage. A generalized framework is provided for analyzing product environments based on production/consumption gaps that can lead to an augmented product. Traditional long lead times and high inventory levels are less appropriate and more costly endeavours that may not even achieve product parity.

Utilization of time‐based strategies

Abstract: Explores how firms can use time‐based strategies within their distribution operations. Exploratory results are presented detailing strategic distribution responses employed to meet competitive challenges and gain competitive advantages. These firms have proactively worked to make their operations more flexible and allow them to respond more quickly to customer requests. They have developed capabilities to customize or tailor services to specific market segments in a timely manner, learned to prioritize requests and respond with differentiated service programs, and strategically exploited information capabilities in order to substitute “information for inventory” in a cost‐effective manner. The research results emphasize the important role distribution/logistics plays in supporting manufacturing and marketing efforts.

Culture, cognitive dissonance and the management of change

Abstract: In the 1980s it became increasingly apparent that the management of change is a crucial factor in organizational performance. However, it became equally apparent that many organizations found great difficulty in successfully planning and implementing change. One oft‐quoted reason for this was the lack of involvement of those affected by the change in its planning and implementation. Consequently it now appears to be the received wisdom that employee involvement in change projects is “a good thing”. However, this blanket injunction to “involve” ignores both the context in which particular change projects take place and the varying degrees of involvement which are possible. In an attempt to rectify this, examines how an organization′s culture and the degree of cognitive dissonance generated by proposals for change influence the depth and type of employee involvement required to create a positive climate for change. Concludes by arguing that these factors are crucial not only in identifying the best approach...

An integrated JIT inventory model

Abstract: Derives an integrated inventory replenishment model for a buyer that buys a single product from a vendor that manufactures this item and delivers it to the former in fixed quantities. It is assumed that both parties co‐operate and exchange information, including cost data, which is not unheard of in a JIT based partnering relationship, in deriving a jointly optimal inventory replenishment policy, rather than individually deriving their own independent policies. Such an approach can result in significant savings in the joint total relevant cost incurred by both parties. These savings may be shared in some fair and equitable manner, so that, from an economic standpoint, both the buyer and the vendor derive substantive benefits from such an integrated, jointly optimal policy. Illustrates the model and the related concepts through a simple numerical example.

Just‐in‐time purchasing and supply: a review of the literature

Abstract: Identifies three schools of thought within the broad just‐in‐time (JIT) sourcing literature which are labelled as the “advocate”, “pragmatic” and “sceptic” schools. The former group advocate JIT sourcing as a major competitive weapon, while the latter group suggest that it is less efficient than traditional sourcing techniques. The pragmatic group cite some of the problems associated with sourcing on a JIT basis. The major JIT sourcing practices are identified and the contributions from each school of thought critically reviewed. Reviews the benefits and problems of JIT sourcing as well as the movement of power and responsibilities between members of the supply chain. Concludes by suggesting avenues of future research within JIT sourcing.

Customer‐driven manufacturing

Abstract: The basic tasks of a business are straight‐forward – getting and keeping customers and making profits, both set within the context of the short and long term. Explicit in these is not only a need for marketing and manufacturing to work well in themselves but to work well together. Companies, however, typically fail in this provision. To move to a more competitive response in today′s difficult markets requires more than co‐existence, it requires a shared partnership between the core parts of the firm. Shared understanding of marketing and manufacturing′s approach is the starting point. The other is building on a shared understanding of the market itself. In such a way, a move to being customer‐driven starts to take shape.

JIT and TQM: a case for joint implementation

Abstract: The post‐Second World War era has seen the emergence of two strategies to improve the operational effectiveness of manufacturing firms: just‐in‐time (JIT) production systems and total quality management (TQM). Both evolved in Japan, and the West deciphered and applied them later. TQM has evolved in Japan over the last four decades, and JIT principles were developed and applied as an integral part of TQM philosophy. The West, however, deciphered JIT elements of Japanese manufacturing excellence first, followed by recognition of TQM as the underlying philosophy. Hence, these are viewed by a majority of Western researchers and practitioners in isolation (the traditional view). Examines the linkages between JIT and TQM from conceptual, philosophical, and implementation perspectives. Theorizes a synergistic interaction between JIT and TQM when they are viewed as an integrated strategy where JIT is an integral part of TQM philosophy (the integrated view). Provides theoretical support for the thesis that the org...

A comparative analysis and review of JIT “implementation” research

Abstract: Compares the research done in the area of JIT implementation in the past decade, identifies critical JIT elements, and groups the elements into broader factors. An extensive literature search was conducted to identify over 130 JIT implementation articles published in both professional journals and proceedings. Initial screening process led to the identification of 105 JIT implementation research articles published since 1980. Each of these 105 articles was reviewed to identify 28 JIT implementation elements. These JIT implementation elements are subsequently grouped into five broader factors. Criteria as the measure of importance of these elements was based on the frequency of citation. The results obtained from this research show that elimination of waste and production strategy are the most specific critical factors of JIT implementation. Followed by three other critical factors: quality control and quality improvement, management commitment and employee participation, and vendor/supplier participation.

Employee reactions to JIT manufacturing practices: a two‐phase investigation

Abstract: Describes a two‐phase quantitative investigation of the effects of the introduction of just‐in‐time (JIT) manufacturing practices on shopfloor work. Results show that the introduction of product‐based manufacturing, incorporating strong elements of total quality management (TQM), was associated with: increases in employee autonomy; increases in some job demands; and no change in measures of social climate and employee wellbeing. The later introduction of core JIT practices and associated layout changes were associated with: no change in existing levels of employee autonomy and job demands; statistically significant increases in collective autonomy over the timing of group tasks; positive changes in group climate measures and increases in levels of job satisfaction. No change in employee strain was observed following either phase of shopfloor reorganization. Suggests that reductions in employee autonomy, increased production pressure and employee stress are not universal concomitants of JIT manufacturing.

Exploiting AMT in small manufacturing firms for global competitiveness

Abstract: Examines the adoption and strategic use of advanced manufacturing technologies (AMTs) by small manufacturing firms. Three major issues are explored: the differences between exporting and non‐exporting firms with regard to why they adopt AMT; the differences between exporting and non‐exporting firms with regard to how they adopt AMT; and the relationship between adopting AMT and exporting to global markets. Using multivariate analysis of variance (MANOVA), multiple comparison tests, pair‐wise comparisons, regression, correlation, and partial correlation analysis, the authors found that: exporting and non‐exporting firms adopt AMT for different reasons; exporting and non‐exporting firms adopt AMT in different ways; and there is a significant positive relationship between adopting AMT and exporting to global markets.

Selection and implementation of advanced manufacturing technologies: classification and literature review of issues

Abstract: The importance of advanced manufacturing technology (AMT) has been increasing because of their competitive advantages. Adoption of AMT involves major investment, and large‐scale issues are involved in the selection and justification of these technologies. Researchers have identified a considerable number of issues and subattributes for implementing various projects. Reviews the literature and then classifies several of these implementation issues.

Time‐based management of technology

Abstract: For corporations competing in a global marketplace, time‐based management of their technology is becoming a significant resource. However, the concept of time in management of technology‐driven industrial organizations is not new. Classical management theorists like Frederick Taylor and others used time‐based management in “scientific” management of operations or for planning, organizing, scheduling, and controlling. However, due to opening of international barriers, fast changing technologies, and rapidly shrinking product life cycles, time‐based management is acquiring an increasing significance in its tactical and strategic roles. Develops a comprehensive taxonomy of time‐based management based on its three dimensions: form, origin and application. Discusses trade‐offs and linking of time‐based management with other strategic criteria, such as quality, performance, and delivery. Outlines six specific ideas for implementation of agility‐based strategy. Discusses some managerial implications for optimal ...

Current issues in business process re‐engineering

Abstract: Presents the results of empirical research into issues faced by 25 companies undertaking business process re‐engineering (BPR) programmes. The research team sought to understand the BPR phenomenon through visits to 21 leading practitioners and four in‐depth case studies. The research indicated that six key issues affect the way in which BPR programmes are carried out, namely the nature of the change proposed (radical or incremental), the performance measures applied during the programme, the impact of information technology, the impact of human factors, the presence or absence of a process architecture and the link between BPR and strategy. The outcome of this research has implications for both practitioners and researchers. Where practitioners are concerned, the conventional, step‐by‐step BPR methodology should be amended to take into account these six issues more fully. For researchers there is a need for substantial research into good practice in BPR in each of the six areas.

The impact of information systems on quality performance

Abstract: Asserts that information systems are an essential component in the efficacy of quality management systems and that information systems therefore merit greater recognition within the theory and the practice of quality management Based on an empirically validated reference model which includes three dimensions: quality management practices, quality information systems (split into information flows and information technologies) and quality performance The claim is stated through null hypotheses which are tested on a sample of 34 manufacturing plants, with more than 100 employees, in the electronics, machinery and auto‐supplier industries The results show that: quality management practices are closely linked to quality information flows; the contribution of information flows to the obtaining of high quality performances is considerable; information technologies seem to contribute something to the achievement of high quality performance and in particular of low defectiveness but their contribution requires

On the design of generalized kanban control systems

Abstract: Considers a class of control systems known as generalized kanban control systems (GKCS) which can be used to implement a pull control mechanism in a manufacturing system. In a GKCS, the production system is decomposed into stages, where each stage consists of a production sub‐system. There are two design parameters per stage: one controls the work‐in‐process in the stage and the other determines the maximum number of finished products of this stage. Investigates the influence of these design parameters on the efficiency of generalized kanban control policies by deriving qualitative properties as well as using experimental results on the behaviour of GKCS.

A review of the order release policy research

Abstract: Reviews a critical aspect of job shop scheduling research, namely the decision regarding release timing of orders to the manufacturing shopfloor. Covers articles specifically addressing the order release problem; the information should prove helpful for researchers employing order release policies in their research. The release decision literature is classified into three areas: descriptive studies including case and survey research, analytical or optimization‐based research, and simulations of theoretical and empirically derived job shops. Presents tables describing the release rules and summarizing the characteristics of the simulation research. Identifies a number of topics within the order release research area in need of further investigation, including the comparison of larger sets of release rules, the use of more realistic simulation models such as the dual resource constrained job shop model, the need for further empirical identification of release policies, and the use of release policies that c...

Design for manufacturability and time‐to‐market

Abstract: Examines the impact of the intensity level of design for manufacturability (DFM) on the time‐to‐market. Hypothesizes that companies which use the DFM technology strategically are more likely than their counterparts to exhibit a shorter time‐to‐market, introduce new products and processes more often, and are more responsive to their customers needs. An index for measuring the intensity level of DFM is developed. The analysis was based on data collected from 165 manufacturing firms in three industry groups in US – industrial machinery equipment, electronic and electric machinery equipment, and transportation equipment. Suggests that differences in time‐to‐market among firms with different intensity level of DFM do exist. Shows the existence of moderate association between DFM and time‐to‐market, and between DFM and introducing new products and new processes.

A heuristic scheduling algorithm for improving the duration and net present value of a project

Abstract: Proposes a heuristic iterative scheduling algorithm for the resource constrained project scheduling problem. Considers a general model where activities are represented by multiple operating modes and each operating mode is constituted of different activity durations and resource requirements. The performance measures considered are the minimization of project duration and the maximization of net present value (NPV). In the cash flow model assumed, activity expenditures take place at their start times and the project payment is made on its completion. The iterative scheduling algorithm consists of forward/ backward scheduling passes, where consecutive scheduling passes are linked by updated activity time windows. The iterative algorithm is supported by a conflict‐based activity selection technique called local constraint based analysis (LCBA). A considerable amount of improvement in both performance criteria is observed when the results of the iterative algorithm are compared with the results given by the ...

Accounting and non‐accounting measures of quality‐based performances in small firms

Abstract: In recent years it has been often claimed that quality is one of most critical success factors for organizations. Managers introduced quality‐based programmes – such as total quality management – assuming that performances would improve. However, many quality‐based initiatives failed. There are several reasons that could explain the failure of quality‐based strategies in a number of firms; suggests two causes: the lack of effective decisional tools for evaluating the most effective investment(s) among a set of potential programmes; and the lack of specific goals to be assigned to each investment in order to monitor the actual results of the programmes on time. In small firms these problems are greater because of the limited availability of financial and managerial resources which make more difficult the identification of the most effective decisional solutions. Identifies a conceptual framework aimed at supporting the choice of most effective models for evaluating quality‐related investments in small firm...

An exploration of the components of JIT: Case study and survey results

Abstract: The positive impact of just‐in‐time (JIT) programmes on production performance is well documented. JIT programmes consist of a number of different elements including change‐over reduction, kanban methods, and preventive maintenance programmes. Some researchers have proposed lists of elements they believe are critical to JIT success. However, there is a lack of consensus among researchers as to which items should be included in the list of critical elements. Reports research, consisting of a survey of manufacturers known to be active in JIT exploration, and an in‐depth case study to improve the understanding of the critical components in JIT programmes. Results from the survey were compared with existing research to determine better the elements critical to JIT success.

Performance measurement and the focused factory: empirical evidence

Abstract: Reviews the scale and scope of existing survey‐based studies of manufacturing plants and discusses the contribution which the UK Best Factory Awards Database may be able to make. Outlines the process of selecting the winners, proposes a working model which relates performance and strategy, and presents some initial illustrative results from an analysis of the 1993 entrants. Briefly discusses the feedback information which entering plants receive for benchmarking performance. Presents initial research findings which relate to the concept of manufacturing plant focus and indicates an asymmetric relationship for focus concerned with make‐for‐stock versus make‐to‐order/assembly to order foci. The evidence supports the view that dilution of a make‐for‐stock policy has a negative impact on ex‐stock service level while dilution of a make‐to‐order policy does not appear to dilute due‐date performance.