Showing papers in "Journal of Manufacturing Technology Management in 2004"

Exploring the relationship between knowledge management practices and innovation performance

Abstract: The process of innovation depends heavily on knowledge, and the management of knowledge and human capital should be an essential element of running any type of business Recent research indicates that organisations are not consistent in their approach to knowledge management (KM), with KM approaches being driven predominantly within an information technology (IT) or humanist framework, with little if any overlap This paper explores the relationship between KM approaches and innovation performance through a preliminary study focusing on the manufacturing industry The most significant implication that has emerged from the study is that managers in manufacturing firms should place more emphasis on human resource management (HRM) practices when developing innovation strategies for product and process innovations The study shows that KM contributes to innovation performance when a simultaneous approach of “soft HRM practices” and “hard IT practices” are implemented

Relationship between TQM and innovation: an empirical study

Abstract: It is generally acknowledged that organisations need to be innovative in order to survive and prosper. Some advocates of total quality management (TQM) have suggested that it provides the necessary platform for inculcating innovation in organisations. Intuitively, TQM components involving sound and effective practices on leadership, customer focus, relations with suppliers, employee inter‐relationships, information/communication systems and management of processes and products do appear to enable organisations develop culture of innovation. A robust TQM‐innovation relationship appears to be conceptually plausible, but little empirical evidence has so far been offered to support this proposition. In this paper, this relationship is explored. Empirical data were taken from a survey of 418 Australian manufacturing organisations. Structural equation modelling technique was used for statistical analysis. Results show that there is insufficient statistical evidence to suggest that TQM is related to innovation. There could well be a more complex relationship between these concepts.

A literature review of manufacturing performance measures and measurement in an organizational context: a framework and direction for future research

Abstract: Competitive pressures in the global manufacturing environment are forcing manufacturing organizations to re‐engineer in order to become more competitive in the marketplace. Toward that end, management of these organizations is paying closer attention to the changing nature of manufacturing performance, and the systems, processes and measures used in its evaluation. Examines the literature concerned with issues related to the different facets of manufacturing organizational performance. Reviews and classifies articles published in relevant journals between 1988 and 2000. Based on this extensive literature review, identifies and discusses several issues relevant to both practice and theory of manufacturing performance measurement. Concludes by presenting a conceptual framework outlining the evolution of manufacturing performance measures and measurement in an organizational context.

Logistic service measurement: a reference framework

Abstract: Many companies measure their logistic performances using several methods. As a consequence, various sets of indicators can be found in practice and in the literature. In particular, the same event can be measured in different ways, so that the relative performance is sometimes totally different. The purpose of this paper is to suggest a hierarchy in logistic performance measurements. A referring model for evaluating the logistic performances is also proposed in this paper, together with the definition of a reference framework for the selection of supply chain performance measurements.

Reducing uncertainty in European supply chains

Abstract: In this paper, we show that reducing supply chain uncertainty increases responsiveness and thereby benefits bottom line performance as assessed via total cycle time reduction. We term this effect as the uncertainty reduction principle. To enable uncertainty reduction we use the uncertainty circle to focus on the sources to be eliminated. We also show that these sources of uncertainty can react and magnify in a flywheel effect caused by poor supply chain management. A supply chain audit methodology is described for identifying and codifying uncertainty. The proposition advanced herein is that smooth material flow leads to and statistically correlates with uncertainty reduction. Examples are given of good real‐world supply chain practices thus identified and subsequently improved. Transferability of the uncertainty reduction principle is assured by establishing readily assimilated “best practice” guidelines via the study of “exemplar” operating characteristics.

Evaluation of the supplier performance using an evolutionary fuzzy‐based approach

Abstract: Different entities in a supply chain network operate in a highly interdependent environment when it comes to improving performance of the network in terms of objectives such as delivery performance, quality assurance and cost minimization, etc. In this research, an attempt has been made to evaluate the supplier performance by adopting evolutionary fuzzy system owing to the linguistic nature of the attributes associated with the suppliers and manufacturing units. The proposed methodology offers consistently good performance when applied to a variety of standard problems related to evaluation of supplier's performance available in the literatures.

Modelling in product and supply chain design: literature survey and case study

Abstract: This paper presents a framework for supply chain decision‐making. The framework is used to gain insights into applications of modelling. Current modelling practice is reviewed through a literature survey. The principal finding is a lack of published research in the area of modelling supply chain effects in the product development phase. However, it is in the product development phase where the majority of product life‐cycle costs are determined. As a guideline for further case research, we propose an approach for integration in product life cycle modelling systems. For practitioners, we point out some major requirements for implementation. Finally, we demonstrate an early application of some of the ideas.

A decision support system for machine tool selection

Abstract: Globalization of business, the worldwide competitive economy and the decrease in product life force companies to use new equipments that are continuously introduced to the market with the advances in technology. An improper selection can negatively affect productivity, precision, flexibility and company’s responsive manufacturing capabilities. Thus, selecting the most suitable machine from the increasing number of available machines can be highly demanding. A decision support system is developed for the selection of machine tools. It will guide the selection process and help a decision maker solve the selection problem. Multi‐criteria weighted average is used in decision‐making process to rank the machines evaluated with respect to several criteria. The method is demonstrated with an example.

The perceived impact of JIT implementation on firms’ financial/growth performance

Abstract: This paper argues that solely depending on short‐term financial performance indicators to justify the benefits of JIT implementation is very misleading and could harm a company’s future long‐term survival. The empirical study presented in this paper investigated the effect of (JIT) implementation on the use of operation performance measures. Furthermore, the effect of the JIT implementation and the use of the operating performance measures on firms’ financial/growth performance, as perceived by the managers, was examined. These effects were measured using path analysis to show direct and indirect effects of JIT practices on the other two variables. Analyses indicate that, although correlations do exist between JIT practices and managerial perceptions of a firm’s financial performance, the relationships are mostly the result of spurious effects. Direct and indirect effects realized from the JIT practices on financial/growth performance are almost non‐existent.

Performance measurement and evaluation of suppliers in supply chain: an evolutionary fuzzy‐based approach

Abstract: In order to ensure the uninterrupted supply of items, the purchasing manager needs to evaluate suppliers' performance periodically. The evaluation process typically consists of identifying the attributes and factors relevant to the decision, and measuring the performance of a supplier by considering the relevant factors. Linguistic assessment of suppliers may be carried out based on several criteria. In this paper, an attempt has been made to evaluate the suppliers' performance by adopting an evolutionary fuzzy system. One of the key considerations in designing the proposed system is the generation of fuzzy rules. A genetic algorithm‐based methodology is developed to evolve the optimal set of fuzzy rule base, and a fuzzy inference system of the MATLAB fuzzy logic toolbox is used to assess the suppliers' performance. The proposed methodology, illustrated with the data collected in a process plant, provides acceptable results in determining the suppliers' performance score.

Enabling continuous improvement: a case study of implementation

Abstract: Widespread recognition of the strategic imperative posed by a turbulent external environment has brought into focus a key challenge for firms – that of increasing involvement in innovation by the staff in the organisation. Much research has suggested that organisations that mobilise a large proportion of their staff to participate in innovation can make significant gains. Achieving this depends on a systematic process of organisational development in which the facilitative patterns of behavioural routines are extended and reinforced, so that they become a major culture change. This paper reports on progress with this organisational development methodology using a detailed case study of its use within a major mining company in South Africa. It makes use of a reference model framework to help structure and direct the change process towards enabling higher involvement in innovation. In particular it explores practical issues involved in moving a large organisation along a path of high involvement innovation.

Manufacturing flexibility and variability: an overview

Abstract: Flexibility has become one of the most useful and necessary weapons in many of today's competitive markets. For companies in situations considering investments in flexibility, it is necessary to assess carefully exactly what flexibility could benefit the company's operations, and how this flexibility can be achieved. Different manufacturing situations are associated with different levels of uncertainty and variations, and therefore call for different sorts of flexibility. Although flexibility has been argued to be available (to a certain point) without major investments in technology, it can be assumed that flexibility is most likely to come at a price. A company should therefore spend considerable effort on identifying what flexibility would be of benefit to the organisation to enhance their performance, and thereafter assess how to achieve it. This paper provides a comprehensive analysis of variability and uncertainty, and therefore, the need for flexibility within an organisation by examining market and manufacturing process related factors. Each factor is further examined to find out relevant flexibilities and corresponding methods, tools, and techniques to be used by suggesting proposed manufacturing approaches to organisations. The human factor is suggested as an essential flexibility component as well as a key contributor for selecting, developing, improving and implementing flexibilities in order to succeed in markets that are accelerating and becoming more turbulent.

Collaborative supply chain planning using the artificial neural network approach

Abstract: The purpose of this paper is to show how the concepts of collaborative agents and artificial neural networks (ANNs) can work together to enable collaborative supply chain planning (SCP) An agent‐based supply chain network is decomposed into multiple ANNs in a way that the actual customer requirements and the agents' goals and constraints are matched in different stages An error‐minimising algorithm which models the agents' collaboration mechanism is used to train three ANNs, namely the supply net, the production net and the delivery net, for pursuing complete order fulfilment across the supply chain In the example problem, the collaborative SCP paradigm is applied to determine the supply plan of an alliance of small firms, which provides assemble‐to‐order goods with short delivery lead‐time to a regional market The calculation results showed that the ANN approach achieved complete order fulfilment and significantly increased the resource utilisation of all supply chain agents

Improving business processes for increased operational efficiency: a case study

Abstract: In manufacturing, corporate growth and profitability are more challenging than ever before. The company reviewed in this study has been and is currently suffering tremendous growing pains with poor record of profitability. This paper reports learning and application of a few significant techniques to improve basic business practices in a company, which manufactures large volume, high quality optical thin film coatings. Some of the tasks involved in identifying opportunities for improving operational efficiencies included analysis of current business processes, identification of non‐value‐added activities including wastes and proposing process changes. Process mapping and kaizen “blitz” activities were utilized during analysis of key business processes within this company. The study demonstrates measurable results realized through use of process mapping tools, kaizen blitz activities, formalized and documented work instructions and work measurement tools. To ultimately be successful, a company must educate their workforce and create a fulfilling work environment for each of their employees. Worker involvement is essential and critical in today's society. Gaining the worker's trust and commitment is extremely important.

An integrated method for designing modular products

Abstract: Many recent modular design methods and approaches have focused on the modularization process – decomposition and composition. This paper suggests an integrated methodology that includes additional tools and stages for a complete modular architecture design. The borders of the modular design process are expanded by adding strategic issues, appropriateness to modularity, degree of modularity and modularity strategies, in an operationalized manner. The methodology presents a “requirements analysis‐ decomposition‐composition‐design evaluation” structure. The “modularization process” is designed so as to choose from three different perspectives – customer‐based, function‐based and structure‐based design. To test and validate the methodology it was applied to a domestic gas detector product family. As a result, a new modular product architecture with eight modules was developed.

Improved efficiency with production disturbance reduction in manufacturing systems based on discrete‐event simulation

Abstract: Discrete‐event simulation (DES) and disturbance reduction techniques are a combination for improving efficiency in manufacturing systems. The DES modelling allows different tests to be carried out by step‐by‐step alteration. The use of manufacturing improvement techniques should be combined for best results. The changes in disturbances will show us different alternatives in output of the manufacturing system. Two case studies have been drawn up to study the possibilities for disturbance reduction in manufacturing systems by using DES with the proposed method for improved overall manufacturing efficiency. The case studies showed an improvement of output of 14 per cent and 18 per cent, respectively.

Exploring Six Sigma and CI capability development: preliminary case study findings on management role

Abstract: Aims to explore the Six Sigma methodology as a method for developing CI capability. More specifically, the focus is on the role of management in the improvement of processes. Any type of organizational improvement process requires visible leadership and effective management to be successful. In high‐performance organizations, in particular, in which the Six Sigma methodology is currently gaining ground, managers allocate resources to the improvement activities they regard as crucial for the organization's success. Six Sigma is an improvement methodology that aims to increase business performance through a solid and accurate business focus. As the adoption of the Six Sigma methodology is still at an early stage in Finnish business life, presents preliminary case study findings. The findings imply that managers should adopt and internalize the Six Sigma philosophy first to give sufficient support to the implementation process. Furthermore, additional attention should be paid to the development of measurement systems and real time reporting systems, which is initially a managerial responsibility.

Manufacturing in the UK: contemporary characteristics and performance indicators

Abstract: This paper provides a tentative framework for exploring the relationships between the measurement of non‐financial performance on the shopfloor of manufacturing firms and a range of organisational and environmental factors. It is part of an ongoing project examining whether the extent of innovative managerial practices, advanced manufacturing technologies, contemporary management accounting practices, employee involvement, employee skills and training, and aspects of the market competition affect the existence and importance of non‐financial performance measures actually used on the shopfloors of UK manufacturing firms. To achieve this objective a questionnaire survey of over 2,000 UK manufacturing firms was undertaken.

An integrated reference model for production planning and control in SMEs

Abstract: Versatile manufacturing (VM) companies typically manufacture high variety, mainly customised products in relatively low volumes, competing for each order with other supplier companies on the basis of price, technical expertise, delivery time and punctuality. The research presented in this study is included in a wide cross‐disciplinary project which involved seven research centres. In particular, this paper aims at identifying the general requirements and guidelines for the definition of an integrated model of the order to delivery cycle in a VM environment, which can particularly be suitable for the small‐medium enterprise needs. A number of guidelines emerged, mainly in the areas of customer requirements definition and commercial configuration of customer order, supply and production planning, and intermediate and final project evaluation.

Knowledge management for manufacturing: the product and process database

Abstract: Manufacturing companies must have a good knowledge of their products and processes to be competitive. This is increasingly important as products become more complex. There are many recent developments in product representation, but these do not currently address manufacturing process issues, or integrate with techniques such as key characteristics and Variation Risk Management. This paper describes the development of a database which models complex product specifications, down to component feature detail. It allows the representation of manufacturing operations, process chains and costs, and maps these models. Key product characteristics are flowed down to the detailed feature level, and the associated variability and capability assessed. The paper commences by outlining some of the recent significant developments in product representation. The database structure and associated applications are described. Finally, an example is provided for the use of the database, based on the representation of gas turbine engine from a major aerospace manufacturing company.

Total quality management in strategy and operations: dynamic grounded models

Abstract: The aim of this paper is to explore and represent the dynamic relationship between total quality management (TQM), corporate strategy and resultant business operations. In particular, the paper seeks to determine the impact of TQM at the strategic level and how business operations are consequently developed and deployed. These issues are of interest to managers in organisations who want to move their TQM programmes beyond incremental operational improvements and to use TQM to influence, first, the strategy process and, second, business operations. Using an inductive grounded theory research methodology, the paper describes the development of a series of grounded models, which show the dynamic interaction between TQM, strategy and operations. It is concluded that the models represent a suitable framework for further in‐depth case‐based research in the area of TQM, strategy and business operations.

Managing change and innovation in IT implementation process

Abstract: After the prophetic messages about the contributions of information technologies (IT) on firms, we face warning signals on the unavoidable need for change management, and the perverse side effects of IT improvements when they are not integrated within a strategic and managerial framework. The analysis of practices concerning the introduction of IT in organisations shows that often, the context and the process are neglected; as for the content, it is centred on tools rather than on the needs to be satisfied. A managerial typology of barriers to change that differentiates risks of strategic or structural nature, and cultural or behavioural nature, explains the lack of quality in operations. In order better to manage the implications of IT evolution, i.e. their downstream incidences, it is necessary to have steered upstream in defining the objectives, analysing the needs, taking into account the socio‐ organisational context, and the implication of actors.

An empirical study of facility layout using a modified SLP procedure

Abstract: Although many new technologies have been developed in facilities design, the systematic layout planning (SLP) procedure is the most widely used among enterprises and the academic world. The practical applications in a traditional SLP require intricate steps yet their results lack stability. It is difficult to attain reasonable results from alternatives derived via traditional SLP. This study proposes concepts and algorithms such as grouping, compounding, and hypothetical distance to modify procedures and enhance practicality in traditional SLP. The proposed modifications were applied to a case study. The results were superior to solutions derived from computer software simulations and by supervisors of the case company. This study believes that the proposed modifications and procedures can enhance the enterprise's ability in facility design.

Market responsive manufacturing for the automotive supply chain

Abstract: Building to order enables manufacturing to better respond to market conditions. The time lost between changes in customer preferences and product mix disappears and customer demand can both be anticipated and shaped by the sales system. An automotive build to order supply chain must be able to meet seasonality within markets, and understand the detailed demand volatility for certain elements of the complex product mix, from which much of the profitability is derived. Market responsive manufacturing entails adaptive and flexible production and supply capability in conjunction with real‐time market interaction through revenue management. The combination of late capacity setting and revenue management can enable the whole extended enterprise to operate as a single entity. This article outlines the demand volatility examined for automotive products, integrated revenue and demand management as a solution, and the subsequent order system investment requirements.

Balanced scorecards for strategic and sustainable continuous improvement capability

Abstract: Illustrates how strategic continuous improvement (CI) capabilities were developed in three Swedish manufacturing companies that have implemented the Balanced Scorecard (BSC). A multiple case study was conducted; each company followed a unique team‐based CI strategy. Shows how the use of BSC was adapted to the specific characteristics that each of the CI strategies entail. Furthermore, shows that it could be difficult to sustain the capability that was developed. However, also finds that certain mechanisms in the management control system, as well as the presence of an advanced work organisation, may help in sustaining the strategic CI capability.

The implementation process of standardisation

Abstract: Most companies are experiencing changes in the competitive environment that typesets different sets of requirements in product development management. Action research into the implementation of platform‐based product standardisation shows that there are four key elements that organisations must consider jointly before implementing the concept. These elements are: current and future needs and wants of customers, the organisation's own core competencies, effects on the supply chain of suppliers and distributors, and dominant (i.e. key) technologies built into the products. The paper is intended to raise questions and initiate a discussion about new approaches in product development management, as existing methods are not suitable for current situations.

Development of a team‐based framework for conducting self‐assessment of continuous improvement

Abstract: The study presented in this article is based on two basic premises. First, successful continuous improvement (CI) is dependent on shop floor level involvement and participation in improvement efforts. Second, the term “self‐assessment” clearly implies that those whose performance is being measured, and who are involved in conducting the assessment process. Excerpts from longitudinal case studies in a single Danish manufacturing organization demonstrate how teams involved in the process of conducting self‐assessment of CI developed a better understanding of the basic principles of CI. Furthermore, the study shows how these principles relate to the teams’ own work processes, and a deeper understanding of their organization's strategy and objectives.

Work load responsive adjustment of planned lead times

Abstract: Mechanisms to adjust planned lead times based on current work loads are desirable for time‐phased planning systems. This paper investigates the use of exponentially smoothed order flow time feedback in setting planned lead times dynamically. The system studied is a supply chain with capacity‐constrained processing stations and transit times between stations. Lot sizes are based on the minimization of flow times using queuing approximations. Both seasonal and level demand patterns with uncertainty are considered. Since both dependent and independent demands are assumed at each station, customer delivery performance depends on the distribution of inventory along the supply chain. Results show that dynamic planned lead time setting can be used effectively to control delivery performance along the supply chain. Performance is also influenced significantly by appropriate lot size selection.

An integrated model for order release and due‐date demand management

Abstract: In this paper, an integrated model for order release and due‐date management is developed to enhance manufacturers’ confidence in the due‐dates offered to customers. The proposed model utilised the backward finite scheduling order release control method and five different due‐date assignment rules. The proposed model is implemented using C++ computer programming language. Due‐date of each order is calculated by a due‐date assignment rule selected. Then the program tries to schedule the whole order with as lowest value as possible of tightness parameter (k). The output of the C++ program is production schedule of the whole order using backward finite scheduling order release method. Experiment results indicate that the modified number of operations due‐date rule_MNOP is superior with respect to the other due‐dates rules of the whole order.

An application of design of experiments for optimization of plastic injection molding processes

Abstract: Making improvements in products or in processes can be one of the most challenging tasks confronting an organization. This paper uses design of experiment (DOE) to identify causes of defects associated with plastic injection molding processes at the early phases of designing processes and operations. A detailed eight‐phase methodology is offered through which an identification of defects and effective solutions for their removal could be done. The paper also shows how the parameters of the problem could be established and how DOE could be applied to achieve the stated objectives by using the results of only 18 and ten DOE test runs. The results of the initial experiments are subjected to a verification procedure to determine their viability and accuracy. As a result of this experiment, the company was able to make the changes needed to reduce the cycle time required to produce products and thus, increase productivity while maintaining high quality standards. In conclusion, an assessment of the results is provided and the necessary conditions and prerequisites for the effective utilization of the methodology are presented.