Showing papers in "International Journal of Operations & Production Management in 1996"
TL;DR: It is revealed that the basis of performance measurement is changing and that there are certain characteristics that are necessary in order to produce information that is relevant for improving world‐class manufacturing performance.
Abstract: The objective of performance measurement has changed over the past few decades. Traditional performance measures based on productivity are no longer appropriate or representative of the information needs of today’s competitive global market. Alternative performance systems have been proposed that range from time as the basis of all measures to the integration of a variety of performance measures. Reviews and analyses the limitations of traditional approaches to performance measurement as well as the emerging trends in performance measurement system development. Reveals that the basis of performance measurement is changing and that there are certain characteristics that are necessary in order to produce information that is relevant for improving world‐class manufacturing performance.
699 citations
TL;DR: In this paper, the authors developed a model which operationalizes the different principles in lean production, with a focus on those that concern the work organization in the manufacturing part of a company.
Abstract: Develops a model which operationalizes the different principles in lean production, with a focus on those that concern the work organization in the manufacturing part of a company. The model has been developed using available theory and has also been tried out in a clinical field study. The model has implications both for research and practice. For research, it can be used as a model for operationalizing lean production to be able to study change processes properly. In practice, the model can be used as a tool to assess the development taking place in an effort to become lean. Finally, it can be used as a checklist for what to aim at when trying to implement lean production. Lean should be seen as a direction, rather than as a state to be reached after a certain time and, therefore, the focus lies on the changes in the determinants, not on their actual values.
644 citations
TL;DR: In this article, the authors compared the techniques which constitute lean supply with those contained in supply chain management, partnership sourcing, and strategic purchasing, focusing on automotive and electronics industries in the UK, Italy, Scandinavia, the USA and Japan.
Abstract: Lean supply ‐ the system of purchasing and supply chain management required to underpin lean production ‐ has been characterized as “beyond partnership”. Re‐examines this idea, comparing the techniques which constitute lean supply with those contained in supply chain management, partnership sourcing, and strategic purchasing. The observations and conclusions are based on research principally in the automotive and electronics industries in the UK, Italy, Scandinavia, the USA and Japan.
500 citations
TL;DR: A taxonomy which categorizes 125 different strategy‐related measures that were found through a survey of accounting, manufacturing and managerial literature finds that the largest number of measures have been proposed for the competitive priority of flexibility and the fewest for delivery reliability.
Abstract: Although the topic of manufacturing performance measurement has recently attracted considerable interest, little has been done to enumerate or classify the measures that exist. Lists 125 different strategy‐related measures that were found through a survey of accounting, manufacturing and managerial literature. Develops a taxonomy which categorizes those measures according to competitive priority (cost, quality, flexibility, delivery reliability, or speed), data source (internal or external), data type (objective or subjective), measure reference (self‐referenced or benchmark), and process orientation (process input or process outcome). Finds that the largest number of measures have been proposed for the competitive priority of flexibility and the fewest for delivery reliability. Most measures have focused only on process outcomes using self‐referenced objective data from internal sources. Based on these results, suggests that companies and academic researchers utilize new or different measures to assess adequately strategy‐related manufacturing performance.
287 citations
TL;DR: In this paper, the linkages between work organization and lean production practices are investigated in 43 manufacturing plants through valid and reliable measurement instruments and the results show that lean production plants seem to use more teams for problem solving, to take employees suggestions more seriously, to rely more heavily on quality feedback both for workers and supervisors, to document production procedures more carefully and to have employees able to perform a greater variety of tasks including statistical process control.
Abstract: Proposes a framework (developed from an analysis of the existing literature) which will be useful to research the linkages between work organization and lean production practices. The framework considers two types of work organization practices: type (a) which is directly linked to lean production practices such as JIT/TQM (worker autonomy, multifunctional employees, feedback to workers, etc.) and type (b) which influences the setting up and the maintenance of type (a) practices (training, compensation, etc.). Tests hypotheses concerning the practices which can be said to be directly linked to JIT/TQM on data collected on 43 manufacturing plants through valid and reliable measurement instruments. The results show that lean production plants seem to use more teams for problem solving, to take employees’ suggestions more seriously, to rely more heavily on quality feedback both for workers and supervisors, to document production procedures more carefully and to have employees able to perform a greater variety of tasks including statistical process control. Lean production plants, however, show almost no differences with regard to aspects of work organization which involve hierarchy.
276 citations
TL;DR: In this paper, a concrete method for constructing a consistent set of performance indicators forming the basis of a consistent performance management system is presented, where explicit attention is paid to the relations between PIs.
Abstract: Performance indicators (PIs) and performance measurement are popular topics in management literature nowadays However, hardly ever is attention paid to the consequences of the relationships that often exist between the different PIs for designing effective, consistent performance management systems for organizations as a whole Presents a concrete method for constructing a consistent set of PIs forming the basis of a consistent performance management system, where explicit attention is paid to the relations between PIs Discusses the important role played by the new classification of PIs Provides a case study to illustrate the use of the method in a practical situation
242 citations
TL;DR: In this article, the concept of adaptable production is proposed as an approach which can accommodate to greater changes in demand than lean production, and case studies of four manufacturing plants are used to identify problems, solutions and the need for a new approach to production systems design where costs are more sensitive to changing in demand.
Abstract: Describes the basic concept of lean production and the recent trend in Japanese manufacturing which has been towards a cycle comprising price competition, cost reduction, a proliferation of new products, higher fixed costs, increased break even points and lower profits. Explains how Japan’s recent recession has caused the cycle to be broken and considers how factors relating to the external and internal environment have influenced the viability of lean production within Japan’s emerging competitive climate. Uses case studies of four manufacturing plants to identify problems, solutions and the need for a new approach to production systems design where costs are more sensitive to changes in demand. Proposes the concept of adaptable production as an approach which can accommodate to greater changes in demand than lean production.
241 citations
TL;DR: In this paper, the authors present a process model of manufacturing strategy, which focuses on three constructs of manufacturing strategies: competitive priorities, manufacturing objectives and action programmes for investment, and explore how manufacturing managers attempt to link their decisions in those three components.
Abstract: Reports that over the past several years, the concept of manufacturing strategy has been at the forefront of both managerial and academic thought, and that studies in the field lack a cohesive foundation that can guide researchers’ efforts in building a testing theory ‐ the research gap. States that an inability to relate specific programmes to long‐term objectives demonstrates the difficulty in bringing manufacturing strategy to the factory floor ‐ the practice gap. Believes that the unsatisfactory progress observed in research and practice is because of the failure to study rigorously the process of operationalizing manufacturing strategy. Builds a process model of manufacturing strategy and presents the results. Describes the model which focuses on three constructs of manufacturing strategy: competitive priorities, manufacturing objectives and action programmes for investment. Using data from a large‐scale survey, explores how manufacturing managers attempt to link their decisions in those three components of manufacturing strategy.
227 citations
TL;DR: A prototype expert system is offered which enables users to evaluate and select a potential supplier based on the strategic importance of the product involved, quantitative data and qualitative factors and its early validation results show its potential as an effective decision‐making aid.
Abstract: Suggests that the evaluation and selection of potential suppliers is becoming a more important and critical decision in today’s competitive operating environment. Reveals that many firms are reducing their number of suppliers and the supplier base may provide a company with a strategic competitive advantage. Explains that the supplier selection decision now involves many judgemental factors in addition to the historical selection criteria. Offers a prototype expert system which enables users to evaluate and select a potential supplier based on the strategic importance of the product involved, quantitative data and qualitative factors. The system’s early validation results show its potential as an effective decision‐making aid.
223 citations
TL;DR: In this paper, a survey sent to the furniture industry showed that quality dimensions, especially design quality and product improvement, are highly correlated with business performance, even if a firm's short-term attention has drifted to speed-to-market, cost reduction and other concerns.
Abstract: Quality is consistently listed as one of manufacturing’s top competitive priorities and has become a prerequisite for success in the global marketplace. Quality helps a firm gain a competitive advantage by delivering goods to the marketplace that meet customer needs, operate in their intended manner, and continuously improve quality dimensions in order to “surprise and delight” the customer. While quality’s significance has been emphasized for years, the contribution of quality to business performance has been largely unexplored. Results of a survey sent to the furniture industry show that quality dimensions ‐ especially design quality and product improvement ‐ are highly correlated with business performance. Quality remains the foundation of competitive advantage, even if a firm’s short‐term attention has drifted to speed‐to‐market, cost reduction and other concerns.
216 citations
TL;DR: The potential of the analytical hierarchy process (AHP) for assessing and comparing the overall manufacturing performance of different departments is shown and its assumptions and limitations are pointed out.
Abstract: Many authors have suggested including non‐financial measures, besides traditional cost measures, in manufacturing performance measurement systems, in order to control the correct implementation of the manufacturing strategy with respect to all competitive priorities (quality, timeliness, flexibility, dependability, etc.). But the use of non‐financial performance measures makes it difficult to assess and compare the overall effectiveness of each manufacturing department, in terms of support provided to the achievement of the manufacturing strategy, since to this aim it is necessary to integrate performance measures expressed in heterogeneous measurement units. Aims to show the potential of the analytical hierarchy process (AHP) for assessing and comparing the overall manufacturing performance of different departments. Does not report the detailed analytical description of the AHP but focuses on the practical problems and managerial implications related to its application to performance measurement, pointing out also its assumptions and limitations.
TL;DR: The causes for gaps in scheduling are explained, the solutions to improve scheduling are illustrated by way of a case study, and the extent to which a scheduling technique can adequately model the processes on the shopfloor is investigated.
Abstract: Successful implementations of scheduling techniques in practice are scarce. Not only do daily disturbances lead to a gap between theory and practice, but also the extent to which a scheduling technique can adequately model the processes on the shopfloor, and the extent to which the optimization goal of a technique matches the organizational goal are not great enough. Further, the schedulers’ actions may play an important role in the fulfilment of the generated schedules. The organizational structure with its different responsibilities and conflicting goals may also result in the poor performance of scheduling techniques. Besides these, there is the problem of measuring the quality of a schedule. Discusses the causes for these gaps and illustrates the solutions to improve scheduling by way of a case study.
TL;DR: In this article, the authors examined the degree to which these elements of lean production are aided by investments in the supporting manufacturing infrastructure of the firm, and found that lean producers do invest in the development of the workforce and the support manufacturing infrastructure, rather than just paying lip service to the concept without following the underlying, core principles.
Abstract: Research on just‐in‐time (JIT) production and total quality management (TQM) has taken a variety of approaches. Focuses on the degree to which these elements of lean production are aided by investments in the supporting manufacturing infrastructure of the firm. The literature generally supports the hypothesis that manufacturers must support lean production with concurrent investments focusing on the training and development of the workforce in order to be successful. Uses data from a mail survey of 202 plants in the metalworking industries to examine this hypothesis. Examines four types of investment in the manufacturing infrastructure: quality leadership on the part of management, the use of small groups or teams for problem solving, training, and worker empowerment. Each of these types of infrastructural investment is shown to be highly correlated with the degree of managerial commitment to both JIT and TQM. Indicates that lean producers do invest in the development of the workforce and the supporting manufacturing infrastructure. Manufacturers in the metalworking industries appear to be making strong efforts to provide the necessary support to JIT and TQM programmes, rather than just paying lip service to the concept without following the underlying, core principles.
TL;DR: In this paper, the authors present a classification scheme which allows the interpretation of supply chain improvement initiatives and highlight some important yet often ignored issues relating to the logic and outcomes of collaborative activities.
Abstract: Presents a classification scheme which allows the interpretation of supply chain improvement initiatives. While there is an abundance of anecdotal evidence, there is little systematic theoretical development in the field. This is partly because of the many different ways in which co‐operation between trading partners may be developed. The suggested framework is useful in that it highlights some important yet often ignored issues relating to the logic and outcomes of collaborative activities. Illustrates the use of the framework by the secondary analysis of some well‐known UK examples in logistics and supply‐chain management and with supplementary data gathered by questionnaire. Concludes by discussing the limitations of the scheme and its role in further research.
TL;DR: In this article, a framework for understanding the potentially different configurations of teamworking by distinguishing between technical, governance and normative dimensions is presented in the context of case studies of Volvo truck plants in Sweden.
Abstract: There has long been a debate concerning whether the technical division of labour should be structured around the individual or the group. With the developing of lean production and other forms of work organization under advanced manufacturing, teamworking has emerged as a central focus of redesigning production. However, considerable conceptual confusion remains, as well as sharply opposed models drawing on Japanese and Northern European traditions. Provides a framework for understanding the potentially different configurations of teamworking by distinguishing between technical, governance and normative dimensions. Explores these in the context of evidence from case studies of Volvo truck plants in Sweden. The variations observed in different production environments emphasize the point that there is no authentic, linear tradition, or undifferentiated package in theory or in practice.
TL;DR: In this article, a new concept called "new wave manufacturing" is proposed to address the organizational realities of such innovations. But this concept does not address adequately critical aspects of the organizational reality of these innovations.
Abstract: Claims that existing literature on concepts such as lean production, just‐in‐time, and total quality management theory fails to address adequately critical aspects of the organizational realities of such innovations. Presents a new concept called “new wave manufacturing” in order to embrace the entirety of the development of these concepts. Assesses key distinguishing features, outlines prerequisites and social arrangements required. Finally, sets out research agenda consequent to the analysis.
TL;DR: In this paper, the authors explore the role of the management accounting system in the process of adopting a complex manufacturing strategy, lean production, and find that traditional performance measures have to reach a certain threshold to support the adoption of 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.
TL;DR: A review of the literature on time-based competition can be found in this paper, where the authors categorize the existing literature into four broad classes: descriptive literature, managerial implications, case studies and applications, and mathematical modelling.
Abstract: Competition, technological advancement and the sophistication of consumers’ needs have led to the evolution of competitive paradigms, in which, time‐based competition apparently has emerged as the competitive paradigm of the 1990s. While much has been written about the paradigm since it was first highlighted in the late 1980s, no comprehensive literature review is currently available. Seeks to provide such a review of the literature. Categorizes the existing literature into four broad classes: descriptive literature, managerial implications, case studies and applications, and mathematical modelling. Presents the key ideas and the associated literature to the reader as a guide to the total topic of time‐based competition. Reviews also the theoretic time‐based modelling literature, and so highlights the current status and limitations of this literature. Provides the motivation for further research to be carried out within the realm of time‐based modelling.
TL;DR: Describes efforts to extend the use of quality function deployment (QFD) to manufacturing strategy development and how the traditional QFD concepts and methods can be used in the formulation of manufacturing strategy to ensure alignment with business strategy.
Abstract: Describes efforts to extend the use of quality function deployment (QFD) to manufacturing strategy development. QFD uses a house of quality to translate the “voice of the customer” into engineering specifications. Originally developed and applied as a powerful tool for concurrent product and process design, QFD is widely used in industry as a technique within total quality management (TQM). The approach has only recently been applied in strategic planning. Describes how the traditional QFD concepts and methods can be used in the formulation of manufacturing strategy to ensure alignment with business strategy. Presents a case study at a powdered metals manufacturer to show how the QFD methodology can be adapted for use in manufacturing strategy formulation.
TL;DR: In a survey of US firms examining the effect of operations strategies on organizational performance, seven commonly used operations strategies were considered as discussed by the authors, and the results suggest that companies which are using various operations strategies have higher performance than those which are not using those strategies.
Abstract: Presents the result of a survey of US firms examining the effect of operations strategies on organizational performance. Seven commonly used operations strategies were considered. Eleven criteria were used to measure organizational performance. The results suggest that companies which are using various operations strategies have higher performance than those which are not using those strategies. While using more than one strategy improves organizational performance, the benefits become marginal after several successive additions. This suggests that for an organization to be competitive, it only has to employ a few appropriate and effective strategies. Also, except for just‐in‐time strategy, large firms are more likely to employ various operations strategies than their smaller counterparts.
TL;DR: In this article, the authors explore the interrelationships between environmental issues and manufacturing strategy and suggest that operational excellence may provide leverage towards environmental excellence for manufacturers, based on the theoretical underpinnings of previous work in the field of manufacturing strategy.
Abstract: Explores the interrelationships between environmental issues and manufacturing strategy. Based on the theoretical underpinnings of previous work in the field of manufacturing strategy and insights from an open‐ended and exploratory survey of strategic decision makers in a wide variety of manufacturing settings, attempts to illustrate the potential synergies between environmental management and manufacturing strategy. Expands the models of Wheelwright and Hayes (1985) and Hill (1994) in order to suggest that operational excellence may provide leverage towards environmental excellence for manufacturers.
TL;DR: In this paper, the authors show how the pursuit of excellence and the organizational change required by lean production leads to a management-by-process organization, and that management by process influences the performance measurement system (PMS).
Abstract: Shows how the pursuit of excellence and the organizational change required by lean production leads to a management‐by‐process organization, and that management by process influences the performance measurement system (PMS). Uses Zanussi‐Electrolux ‐ the biggest European producer of domestic appliances ‐ as a case study example. Provides a detailed analysis of the organizational change and its effects on performance measurement.
TL;DR: In this article, the authors conducted an empirical study which surveyed manufacturing companies in the USA to determine the critical success factors in the implementation of advanced manufacturing technologies (AMT), and classified the determinants of AMT implementation success under four broad categories: the triple “C” factors (communication, commitment and co-ordination), the housekeeping factors (action plan, effective team, vendor support, cost justification, functions integration and effective facilitator), and the self interest factors (employee moral, satisfaction, belief in AMT and appropriate reward).
Abstract: Observes that in response to the growing global competition, many manufacturing companies are in the process of adopting advanced manufacturing technologies (AMT) to improve their business operations. Notes that, despite the increasing interest in AMT, few empirical studies have been conducted to determine key success implementation factors. Presents the results of an empirical study which surveyed manufacturing companies in the USA to determine the critical success factors in the implementation of AMT. Uses tangible and intangible benefits as indicators of AMT implementation success measures. Classifies the determinants of AMT implementation success under four broad categories: the triple “C” factors (communication, commitment and co‐ordination), the housekeeping factors (action plan, effective team, vendor support, cost justification, functions integration and effective facilitator), the self‐interest factors (employee moral, satisfaction, belief in AMT and appropriate reward), and the literacy factors (understanding of firm’s business, training clarity of goals/objectives of AMT). Reveals from analysis of the responses that about 70 per cent of the variances in the success measures were explained by those determinants of AMT identified in the study.
TL;DR: This article described the experience of an Australian automotive parts manufacturer over the ten-year period from 1984 to 1994 as it adopted lean production methods and new work organization structures. But they did not discuss the benefits achieved.
Abstract: Describes the experience of an Australian automotive parts manufacturer over the ten‐year period from 1984‐1994 as it adopted lean production methods and new work organization structures. Outlines the activities undertaken as part of a just‐in‐time programme during the second half of the 1980s and discusses the benefits achieved. Describes the company’s current initiative called TRIP (Trico Restructuring Improvement Programme) which has involved the development of work teams based on the sociotechnical system. Describes the implementation of work teams and the benefits achieved. Discusses the lessons learned from the company’s experience.
Journal Article•
TL;DR: In this article, the present and prospective situation of an automotive assembly shop was examined with respect to the concepts of lean production and sociotechnical systems, and the work organization was evaluated by means of four principles: of ''minimal critical specification'' which refers to the co-ordination mechanism that is used; the principle of ''boundaries'', which referred to the extent to which teams are autonomous; ''multifunctionality'' which has to do with the division of labour into small or whole tasks; and ''human values'", which deals with the way
Abstract: Several human factors in the present and prospective situation of an automotive assembly shop were examined with respect to the concepts of lean production (LP) and sociotechnical systems. The work organization was evaluated by means of four principles: of ''minimal critical specification'' which refers to the co-ordination mechanism that is used; the principle of ''boundaries'', which refers to the extent to which teams are autonomous; ''multifunctionality'' which has to do with the division of labour into small or whole tasks; and ''human values'', which deals with the way workers are motivated. In the present situation some factors are more in line with lean production, while others fit in with sociotechnical systems, although the actual overall state conforms more with lean production, The future position will be more consistent, but still more in line with LP, mainly because of the characteristics of the work processes.
TL;DR: This article examined differences in world-class manufacturing practices and performance between the UK and Germany, based on a sample of more than 500 German and British manufacturing plants, and concluded that parent origin does have a significant effect at site level.
Abstract: Presents the results of a study examining differences in world‐class manufacturing practices and performance between the UK and Germany, based on a sample of more than 500 German and British manufacturing plants. Suggests that although German superiority persists in many areas, it may not be as great as generally assumed. While at the overall level, country‐of‐origin effects are important, many of the plant sites sampled were part of multinational organizations. Also examines how much of the difference in manufacturing practices and performance at the site level might be attributed to foreign direct investment in manufacturing. Concludes that parent origin does have a significant effect at the site level.
TL;DR: This application provides a capacitated multi‐period, 0‐1 mixed integer programming formulation for the international facilities location problem and discusses its applications to an actual company case.
Abstract: For many years, facilities location problems have attracted a great deal of attention in the literature. As a result, there is now a variety of methods for solving these problems. However, due to the recent interest, little research is found relating to the issues concerning international facilities location problems. Furthermore, in spite of the extensive modelling work done on facilities location, little modelling research exists on location problems. Provides a capacitated multi‐period, 0‐1 mixed integer programming formulation for the international facilities location problem and discusses its applications to an actual company case. This application is carried out to demonstrate not only how the model can be applied in practice but also to show its potential benefits when compared to other methods.
TL;DR: In this paper, the authors investigate the change in requirements to sustain supplier alliances as the relationship matures and find that the factors leading to improved benefits changed significantly as the alliance matured, with specific information flows becoming key.
Abstract: Investigates the change in requirements to sustain supplier alliances as the relationship matures. Notes that the trend to outsource more materials and services has made firms more reliant on their sources of supply. This has led to a move towards increasingly collaborative supplier relationships, referred to as supplier alliances. Widespread use of these relationships is new and relatively little is known about the attributes that may promote success or failure. A recent paper concludes that such “partnership” relationships tend to expand and be more successful with each year following establishment. Tests this assumption using a longitudinal survey of 41 buyer‐supplier relationships. Finds that the purchasing firms perceived some improvements in benefits from their alliance‐like relationships but not significantly more than those which maintained traditional relationships. Also finds that the factors leading to improved benefits changed significantly as the alliance matured, with specific information flows becoming key. Proposes a profile of the relative importance of these factors over time.
TL;DR: The growing time-based competition literature coincides with an increased emphasis on time in manufacturing organizations as discussed by the authors, but the driving strategies and tactics used to achieve them can differ or possibly conflict.
Abstract: The growing time‐based competition (TBC) literature coincides with an increased emphasis on time in manufacturing organizations. In a 1993 survey, 93 per cent of US and European managers identified reliable delivery times as having above average importance, while overall delivery speed was cited by 88 per cent and 89 per cent, respectively. At the same time, 82 per cent of Japanese managers rated rapid new product introduction as having above average importance. Highlights potentially different sources of time‐based advantages. The factors described above are linked by a common emphasis on time, but the driving strategies and tactics used to achieve them can differ or possibly conflict. Presents a framework of time‐based competition for manufacturers. Demonstrates how differences between engineer‐to‐order, make‐to‐order, assembly‐to‐order and make‐to‐stock manufacturers result in the need to use different approaches to implement TBC.
TL;DR: In this article, the authors propose a four-stage research framework that addresses issues in: planning the manufacturing system, planning for an appropriate infrastructure, planning new relationships with the external environment, and justifying investment in AMT.
Abstract: While some reports on successes of advanced manufacturing technologies (AMT) have been glowing, many companies have tossed millions of dollars worth of fancy equipment into their factories and wound up with little to show for it. It is becoming clear that many of the AMT failures today can be attributed to an inadequate planning process. Proposes a four‐stage research framework that addresses issues in: planning the manufacturing system; planning for an appropriate infrastructure; planning for new relationships with the external environment; and justifying investment in AMT. Assesses the strengths and weaknesses of selected contributions in each stage, and identifies gaps in knowledge where research is needed. The framework devised should help tomorrow’s research build on the past and increase the research’s acceptance by industry, since it draws on both research‐ and practitioner‐based literature along with findings of the field study.