Showing papers in "Production Planning & Control in 2013"
TL;DR: A literature review of the relevant academic papers in Logistics, supply chain management and operations management for the period 1995-2009 has been undertaken as mentioned in this paper, which reveals that information integration, coordination and resource sharing and organisational relationship linkage are three major dimensions for SCI.
Abstract: Definitions and measures of supply chain integration (SCI) are diverse. More empirical research, with clear definition and appropriate measures are needed. The purpose of this article is to identify dimensions and variables for SCI and develop an integrated framework to facilitate this. A literature review of the relevant academic papers in international journals in Logistics, Supply Chain Management and Operations Management for the period 1995-2009 has been undertaken. This study reveals that information integration, coordination and resource sharing and organisational relationship linkage are three major dimensions for SCI. The proposed framework helps integrate both upstream suppliers and downstream customers with the focal organisation. It also allows measuring SCI using both qualitative and quantitative approach. This study encourages researchers and practitioners to identify dimensions and variables for SCI and analyses how it affects the overall supply chain (SC) performance in terms of efficiency and responsiveness. Although there is extensive research in the area of SCI, a comprehensive and integrated approach is missing. This study bridges the gap by developing a framework for measuring SCI, which enables any organisation to identify critical success factors for integrating their SC, measures the degree of integration qualitatively and quantitatively and suggest improvement measures.
154 citations
TL;DR: Theoretically the proposed framework contributes holistic constructs for designing a GSC and managing it for sustainability; practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.
Abstract: The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain. © 2013 Copyright Taylor and Francis Group, LLC. CORRIGENDUM DOI 10.1080/09537287.2012.751186 In the article ‘Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations’ by Prasanta Kumar Dey and Walid Cheffi, Production Planning & Control, 10.1080/09537287.2012.666859, a third author is added which was not included in the paper as it originally appeared. The third author is Breno Nunes.
146 citations
TL;DR: In this article, the authors investigated the relationship between the degree of information sharing and organisational performance and found that information sharing does not directly relate to the organizational performance, however, internal integration and costs-benefit sharing do not relate to information sharing.
Abstract: Information sharing has been cited as one of the major means to enhance supply chain performance It allows companies to better coordinate their activities with their supply chain partners that lead to increased performance This study conceptualises and assesses several factors that influence the degree of information sharing in supply chains, namely integrated information technologies, internal integration, information quality and costs–benefits sharing The relationship between the degree of information sharing and organisational performance is then tested Data from 150 manufacturing companies were collected and proposed relationships are examined using structural equation modelling The results show that integrated information technologies and information quality have positive influence on the intensity of information sharing However, internal integration and costs–benefits sharing do not relate to the intensity of information sharing This study finds that information sharing does not directly rela
126 citations
TL;DR: In this paper, the authors present a model which shows that public service organisations are driven towards internal operations improvement due to the efficiency agenda leading to a process focus, rather than a market driven approach focusing on the customer.
Abstract: This article draws on service operations and Lean management in considering the relationship between internal service processes and customer service in public sector organisations. It draws on extensive evidence from two case studies of large UK Government departments to illustrate that whilst public service organisations recognise that methodologies such as Lean improves their internal processes to date they have not linked this to value or customer service. This article presents a model which shows that public service organisations are driven towards internal operations improvement due to the efficiency agenda leading to a process focus, rather than a market driven approach focusing on the customer. This article argues that although this starting point is not necessarily bad in order to sustain improvement after initial gains there is a need to focus on both process and customer. This article therefore contributes and extends the discussion on the adaptation of Lean for a public sector context.
122 citations
TL;DR: In this article, the extent to which lean thinking is being adopted as a manufacturing philosophy by process industries is investigated, which concerns the application and examination of key lean manufacturing principles, namely, the alignment of production with demand, the elimination of waste, the integration of suppliers, and the creative involvement of the workforce in improvement activities, to a range of process industry types.
Abstract: The research described in this article has set out to determine the extent to which lean thinking is being adopted as a manufacturing philosophy by process industries. It concerns the application and examination of key lean manufacturing principles, namely, the alignment of production with demand, the elimination of waste, the integration of suppliers (IS) and the creative involvement of the workforce in improvement activities, to a range of process industry types based on Dennis and Meredith's taxonomy of process industry transformation systems [Dennis, D. and Meredith, J., 2000a. An empirical analysis of process industry transformation systems. Management Science, 46 (8), 1085–1099]. Seventy-nine process industry product streams across 62 sites were studied. In addition, a five-site investigative field study was also undertaken. The findings demonstrate that lean practices associated with the elimination of waste are consistently used for improving manufacturing performance throughout the taxonomy of pr...
100 citations
TL;DR: In this paper, the authors identify, conceptualise and measure the extent of logistics resources acquired by Malaysian logistics service providers and further examine the impact of such logistics resources on logistics performance in terms of customer service innovation and cost leadership.
Abstract: This paper identifies, conceptualises and measures the extent of logistics resources acquired by Malaysian logistics service providers (LSPs) and further examines the impact of such logistics resources on logistics performance in terms of customer service innovation and cost leadership. Based on data from interviews and a survey of 123 LSPs in Malaysia, this paper uses factor analyses to establish five components of logistics resources and capabilities – technology, physical, management expertise, relational and organisational resources. Further regression analyses suggest that each logistics resource is positively associated with both customer service innovation and cost leadership, and some of these resources are bundled together to enhance the two performances. The paper contributes to the development of constructs and measurements for logistics resources from LSPs’ perspective and provides theory-driven empirical evidences to explain the performance of LSPs.
77 citations
TL;DR: It is argued that the public nature of healthcare and the specificities of the healthcare context require a specific theoretical approach to identifying the appropriate dimensions of SC initiatives to evaluate and a framework for assessing supply chain performance in the public healthcare sector is proposed.
Abstract: Innovations in supply chain (SC) management are rapidly spreading in public healthcare sectors across developed countries. In particular, healthcare managers and policymakers view SC innovation as a way to lower costs and improve quality. However, although the related rhetoric is strong, the literature provides little evidence of the benefits and performance of such SC initiatives. Above all, the literature lacks a sound conceptual framework for appraising SC management in public healthcare organisations. We argue that the public nature of healthcare and the specificities of the healthcare context require a specific theoretical approach to identifying the appropriate dimensions of SC initiatives to evaluate. Drawing from an extensive literature review and a longitudinal analysis of an inductive case study – a public hospital network developed in Tuscany (ESTAV), Italy – this work proposes a framework for assessing supply chain performance in the public healthcare sector. In addition, an empirical analysis...
75 citations
TL;DR: In this paper, the authors explored the role that trust plays during the selection of suppliers in new product development (NPD), and the outcome that reliance on trust has on the innovation effort, and found that over-reliance on goodwill trust and geographical proximity in selecting NPD suppliers leads to an emphasis on incremental innovation which hampers the ability of both organisations to engage in radical NPD.
Abstract: A key feature of collaboration in general and collaboration for innovation in particular is the existence of trust. Trust is important because it reduces the costs and risks involved in collaboration, while also increasing the overall performance. This article explores the role that trust plays during the selection of suppliers in new product development (NPD), and the outcome that reliance on trust has on the innovation effort. The research involves a case study of two organisations following contrasting approaches to NPD sourcing, but both relying on collaborative, long-term relationships. In both cases, we find goodwill trust as the key variable explaining the reliance on collaboration. We also find that over-reliance on goodwill trust and geographical proximity in selecting NPD suppliers leads to an emphasis on incremental innovation which hampers the ability of both organisations to engage in radical NPD.
70 citations
TL;DR: In this article, the authors developed and investigated a four-step framework for achieving appropriate flexibilities to mitigate the uncertainties experienced in supply chains, which is developed through four literature streams and then investigated in the specific setting of the construction industry.
Abstract: The purpose of this paper is to develop and investigate a four-step framework for achieving appropriate flexibilities to mitigate the uncertainties experienced in supply chains. The framework is developed through four literature streams and then investigated in the specific setting of the construction industry. The empirical research is based on a case study design, involving two construction supply chain networks including 12 suppliers. The investigation shows how the framework can be applied, demonstrating that it provides a practical route map for organisations to follow. The four steps include: classify the supply chain, identify and analyse uncertainties, optimise pipelines and develop strategic flexibility. Example outputs are presented for each framework step from the empirical investigation. The principal academic contribution is the structured approach provided by the framework, and in doing so, it consolidates and establishes relationships between fields and concepts.
61 citations
TL;DR: In this article, the authors describe theory building research to improve the transfer of knowledge between universities and businesses that are collaborating together, using pilot studies and in-depth interviews based on real-life innovation projects.
Abstract: One means of innovation is the adoption of new knowledge from external sources. This article describes theory building research to improve the transfer of knowledge between universities and businesses that are collaborating together. Using pilot studies and in-depth interviews based on real-life innovation projects, the research identified and confirmed two hypothetical constructs; that successful knowledge transfer comes from the transfer of tacit knowledge; and that tacit knowledge can best be transferred in this arena using rich media channels. This article describes the research and goes on to assess a range of channels for their media richness and their ability to transfer tacit knowledge. This article then positions this in the frame of collaborative or open innovation. It concludes that selection of the appropriate channel can improve the innovation through the transfer of knowledge between organisations and presents a model for successful application.
60 citations
TL;DR: It is proposed that the current key focus for service academics should provide direction for planning, design and implementation framework to enhance the practical effectiveness of service quality.
Abstract: The purpose of this paper is to capture varied perspectives of one of the important elements in the management of services known as service quality. This paper proposes that the current key focus for service academics should provide direction for planning, design and implementation framework to enhance the practical effectiveness of service quality. It deals with the fundamental concepts that underlie the subject of managing for service quality, and defines key terms and makes critical distinctions. It helps to identify the key processes through which service quality is to be managed. It does demonstrate that managing for service quality is a timeless concept, and it would further undergo frequent evolution in response to the endless emergence of changes and crises to be faced by human civilisation.
TL;DR: In this paper, the authors discuss the results of the analysis of 26 open innovation web-based platforms based on a multiple research methodology (qualitative empirical study, factor analysis and multi-dimensional scaling) and discuss the effects of "motivational systems" and platform models on the attraction of the individuals characterised by different innovators.
Abstract: Recently, a large number of new innovative enterprises engaged in different competitive markets by promoting innovation both in products and in services through open innovation web-based platforms, which allow for the collaboration of individual users and companies and for so-called crowdsourcing. A key issue concerns the identification of the most important motivations that could attract users with a specific role to proactively participate and contribute to the open and collaborative innovation processes. This article, after highlighting the theoretical background, grounded on large body of psychology and sociology literature on the motivation behind collaboration, discusses the results of the analysis of 26 open innovation web-based platforms based on a multiple research methodology (qualitative empirical study, factor analysis and multi-dimensional scaling). It also discusses the effects of ‘motivational systems’ and platform models on the attraction of the individuals characterised by different innov...
TL;DR: It is found that networks are dynamic social processes that influence knowledge creation and ultimately business direction and measures of cliques/subgroups and centrality useful as they provide insight into the role networks play in supporting firm and network competitiveness.
Abstract: Over the recent years there has been increasing interest in the evolution of supply networks and, given their inherent inter-dependences, some scholars have likened these networks to ‘ecosystems’. This paper explores the role that social network analysis (SNA) might play in exploring the evolution and impact of both positional and structural characteristics of such networks on member strategy and network performance. We adopt a relational model that captures vertical, horizontal and diagonal linkages evident in these networks and capture data on supplier, service, customer, alliance and competitive relations. A variety of SNA techniques are used to investigate the evolution and impact of these relations and consequent structures. We find SNA techniques combined with qualitative analysis a useful mixed approach to supply network analysis. In particular, we find measures of cliques/subgroups and centrality useful as they provide insight into the role networks play in supporting firm and network competitiven...
TL;DR: In this article, the authors developed a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts and explained how each of the articles included in this special issue relate to their theoretical model and explore several avenues for future research.
Abstract: Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.
TL;DR: In this article, the authors proposed a network optimisation model for sustainable supply chain that optimizes total cost, total direct carbon emission, total indirect emission in the form of embodied carbon footprint of the raw material and total trade-credit amount over the purchased item in a supply chain.
Abstract: This article attempts to introduce indirect carbon emission and trade-credit concept in a network optimisation model for sustainable supply chain. The proposed model optimises total cost, total direct carbon emission, total indirect emission in the form of embodied carbon footprint of the raw material and total trade-credit amount over the purchased item in a supply chain. The model calculates the total cost by considering purchasing cost, logistics cost, handling cost and manufacturing cost. It attempts to measure the direct emission involved in manufacturing and logistics operations. The model has the capability to consider dissimilar trucks used for transportation according to their operating cost and carbon emission. Multi-objective goal programming is applied to deal with four objectives to find a tradeoff among these objectives. The result suggests that managers should capture the direct as well as the indirect emission which helps in arriving at appropriate strategy for a sustainable supply chain. ...
TL;DR: In this article, a hybrid discrete event simulation (DES) and system dynamics (SD) methodology is applied to model and simulate aggregate production planning (APP) problem for the first time, and the main objective of this study is to determine and analyse the effectiveness of APP strategies regarding the total profit criterion by developing a hybrid DES-SD simulation model for APP in a real-world manufacturing company.
Abstract: In this study, a hybrid discrete event simulation (DES) and system dynamics (SD) methodology is applied to model and simulate aggregate production planning (APP) problem for the first time. DES is used to simulate operational-level and shop-floor activities incorporated into APP and estimate critical time-based control parameters used in SD model of APP and SD is used to simulate APP as a collection of aggregate-level strategic decisions. The main objective of this study is to determine and analyse the effectiveness of APP strategies regarding the Total Profit criterion by developing a hybrid DES–SD simulation model for APP in a real-world manufacturing company. The simulation results demonstrated that the priority of APP strategies with regards to Total Profit criterion is: (1) the pure chase strategy, (2) the modified chase strategy, (3) the pure level strategy, (4) the modified level strategy, (5) the mixed strategy and (6) the demand management strategy, respectively. The APP system is first simulated...
TL;DR: In this article, the authors proposed a comprehensive PM of transportation system, which is multi-angle perspective for RL enterprises and used analytical hierarchy process methodology in order to find an overall comprehensive performance index, which was critical to the success of the RL transportation operations to assist logistics managers, researchers, transportation planne...
Abstract: Transportation in reverse logistics (RL) plays a significant role and has impact on overall RL performance. Efficiency, effectiveness and impact are the distinct components of RL transportation. Balancing these components requires the implementation of an effective performance measurement (PM) system. The perspectives of balanced scorecard have been used where enterprises can link their performance to their transportation practices, which do not provide an understanding of the RL transportation operating objectives and the developing strategies through an analysis of stakeholders. This article proposes the comprehensive PM of transportation system, which is multi-angle perspective for RL enterprises. Recognising the multiple criteria nature of the problem, this article uses analytical hierarchy process methodology in order to find an overall comprehensive performance index, which is critical to the success of the RL transportation operations to assist logistics managers, researchers, transportation planne...
TL;DR: In this paper, a case study is presented to demonstrate the effectiveness of the concurrent engineering (CE) framework in a machine tool manufacturing company, where the CE practice was adopted for new products, to align the systems and processes of the company.
Abstract: Lean and concurrent engineering (CE) are widely acknowledged business process improvement strategies. These strategies can improve processes, reduce costs, and cut waste enabling organisations to remain competitive. Lean manufacturing offers an enterprise-wide methodology that improves reliability and flexibility while reducing lead-times and inventory carrying costs. Companies in manufacturing and service sectors are focusing on integrating lean manufacturing methodology with other applications, so that, all their systems and processes are aligned. This article proposes a CE framework based on application of information technology and object-oriented methodology for lean manufacturing. This approach expected to give manufacturing companies an extra edge in today's competitive market. A case study is presented in this article to demonstrate the effectiveness of CE framework in a machine tool manufacturing company. CE practice was adopted for new products, to align the systems and processes of the company....
TL;DR: In this article, a new method for vulnerability assessment, the VULA method, is presented, which helps to identify how much a company would underperform on a specific Key Performance Indicator in the case of a disturbance, how often this would happen and how long it would last.
Abstract: High effectiveness and leanness of modern supply chains (SCs) increase their vulnerability, i.e. susceptibility to disturbances reflected in non-robust SC performances. Both the SC management literature and SC professionals indicate the need for the development of SC vulnerability assessment tools. In this article, a new method for vulnerability assessment, the VULA method, is presented. The VULA method helps to identify how much a company would underperform on a specific Key Performance Indicator in the case of a disturbance, how often this would happen and how long it would last. It ultimately informs the decision about whether process redesign is appropriate and what kind of redesign strategies should be used in order to increase the SC's robustness. The applicability of the VULA method is demonstrated in the context of a meat SC using discrete-event simulation to conduct the performance analysis.
TL;DR: In this article, the authors considered three models of energy consumption for traditional and new-generation cranes and compared them in terms of dedicated zone shapes, time and energy performances within a given time horizon.
Abstract: Picking time reduction has been the traditional perspective for warehouse optimisation. When sustainability is considered, optimisation of warehouse operations should be read in terms of energy efficiency other than response time. Each location in the rack of an automated storage and retrieval system is associated with the value of energy consumed by the crane to reach it. Since picking performance strictly depends on storage location assignments, the time-based full turnover strategy is compared to the energy-based one. Three models of energy consumption are considered for traditional and new-generation cranes. Assignments are then compared in terms of dedicated zone shapes, time and energy performances within a given time horizon. Different shapes of the rack and product ABC curves are analysed. Dwell-point policies are also analysed from the new sustainable perspective, adding energy-saving performance to the traditional picking time reduction.
TL;DR: In this paper, the authors describe a new ERP risk assessment framework (RAF) that can be used to increase the success of ERP implementation, through a case study based in a leading UK-based energy service provider.
Abstract: Enterprise resource planning (ERP) projects are risky. But if they are implemented appropriately, they can provide competitive advantage to organisations. Therefore, ERP implementation has become one of the most critical aspects of today's information management research. The main purpose of this article is to describe a new ERP risk assessment framework (RAF) that can be used to increase the success of ERP implementation. In this article, through a case study based in a leading UK-based energy service provider, we demonstrate the new RAF, which has been shown to help identify and mitigate risks in ERP implementation. In contrast to other research, this RAF identifies risks hierarchically in external engagement, programme management, work stream and work package levels across technical, schedule, operational, business and organisational categories. This not only helped to develop responses to mitigate risks but also facilitates on-going risk control.
TL;DR: In this article, the authors propose stochastic dynamic decision-making tools that could be employed for capturing the trade-offs among multiple and conflicting-in-nature criteria so as to provide a design of a resilient shock absorber (RSA) for disrupted supply chain network (SCN).
Abstract: This article interweaves the widely published empirical frameworks with a new paradigm proposing stochastic dynamic decision-making tools that could be employed for capturing the trade-offs among multiple and conflicting-in-nature criteria so as to provide a design of a resilient shock absorber (RSA) for disrupted supply chain network (SCN). Modern SCNs encounter ‘excursion events’ of different kinds mainly due to uncertain and turbulent markets, catastrophes, accidents, industrial disputes/strikes in organisations, terrorism and asymmetric information. An ‘excursion event’ is an unpredictable event that effectively shuts down or has a relatively large negative impact on the performance of at least one member of a system for a relatively long amount of time. In this article, design of an analytical framework has been conceptualised that allows an SCN to avoid propagating the ill effects of the ‘excursion events’ further and maintains the network at a desired equilibrium level. A broad analytical view of e...
TL;DR: The Quick Scan Audit Methodology (QSAM) offers such a systematic approach by utilising multiple data collection methods and a codified value stream uncertainty measure to assess supply chain performance as mentioned in this paper.
Abstract: It is vital that auditing tools used by researchers and managers yield valid assessments and meaningful comparisons irrespective of the organisational setting. The Quick Scan Audit Methodology (QSAM) offers such a systematic approach by utilising multiple data collection methods and a codified value stream uncertainty measure to assess supply chain performance. Although previously only employed within the private sector, this article explores the use of QSAM to benchmark the pharmaceutical value streams in eight Australasian public sector hospitals, which are best characterised as having multi-layered and complex subsystems. Transferability of the QSAM methodology to public healthcare supply chains is critiqued and needed modifications are described. The audits also reveal that high levels of system uncertainty are negatively impacting the provision of critically important healthcare supplies.
TL;DR: In this article, a framework and process is proposed to assist firms in managing and training temporary workers to improve the efficiency and effectiveness of the implementation of lean improvement initiatives, which is based on the idea that the core of lean adoption is through people.
Abstract: Many firms today are employing temporary contractual workers in order to help them to stay lean and flexible The benefit of this approach is that the process of layoff is much easier Thus, an emerging issue arises here, on how can firms manage and train temporary workers effectively? The core of lean adoption is through people, to have workers buy into the ideas and be part of the overall initiative There is very little guidance available on how to deal with contractual workers who have less motivation and commitment to the firm given that they are only employed on a temporary basis This article proposes a framework and process to assist firms in managing and training temporary workers to improve the efficiency and effectiveness of the implementation of lean improvement initiatives
TL;DR: In this paper, the authors analyse the situation of supply chain integration (SCI) in the aeronautics sector using three dimensions (information integration, coordination and resource sharing and organisational relationship linkage), considering both internal integration and external integration with customers and suppliers.
Abstract: Competitive pressure, high development costs, long lead times, rapidly changing technologies and the risks inherent in projects combined with the delays seen in the latest aircraft models (with the rise in costs that these have entailed) highlight the need to reorganise the supply chain in the aeronautics sector paying special attention to an improvement in inter- and intra-organisational integration The aim of this study is to analyse the situation of supply chain integration (SCI) in the aeronautics sector using three dimensions (information integration, coordination and resource sharing and organisational relationship linkage), considering both internal integration and external integration with customers and suppliers A group of first-tier supplier experts analyse the dimensions and assess the degree to which the factors that define SCI have been achieved The results enable strengths and weaknesses to be determined and indicate possible improvements to the situation that is detected with clear manag
TL;DR: In this article, the quality of work life (QWL) has recently received surmountable attention, but many of the past studies lack in conceptual analysis and empirical evidence.
Abstract: Quality of work life (QWL) has recently received surmountable attention, but many of the past studies lack in conceptual analysis and empirical evidence. This article is believed to be one of the f...
TL;DR: A systems analysis of hospital healthcare is presented in order to capture the dysfunctions in the existing system and more importantly understand their inter-relationships to allow practitioners, managers and policy makers to begin real systems improvement.
Abstract: The complexity of organisations in the public sector, in comparison to those in the private sector, can make it difficult to transfer operations management practices and approaches. The adoption of systems-based improvement methodologies have been widely reported for industrial organisations and are increasingly popular in the public sector, notably in healthcare, as a means to improve productivity, cost and quality positions. Adaptation is however a major challenge facing contemporary healthcare management and while research on improvement in healthcare is extensive, most studies focus on distinct features of the system (such as waiting lists or operating room utilisation) rather than the system as a whole. This article presents a systems analysis of hospital healthcare in order to capture the dysfunctions in the existing system and more importantly understand their inter-relationships. Such a conceptualisation in this context remains absent from the literature but will be necessary for any healthcare or...
TL;DR: The availability contracts for complex engineering services provision are forms of outsourcing contracts that transfer resources from government to external service providers on a substantial scale as discussed by the authors, where the role change moves the contractor role from creating resources to managing resources.
Abstract: Traditional outsourcing literature has claimed gains for the customer in terms of quality and costs. However, such gains are illusory in outsourcing of high-risk, complex tasks. The use of contracts and governance mechanisms for handling complex procurements is essential in obtaining rewards from outsourcing. Powerful incentives and risks are normally used in industrial service contracts to transfer risks to measure compliance with performance measures. The availability contracts for complex engineering services provision are forms of outsourcing contracts that transfer resources from government to external service providers on a substantial scale. The change moves the contractor role from creating resources to managing resources. Such role change mandates collaboration with customers and suppliers in supply/value chains. The management task is then perceived in terms of linking and optimising alignments rather than increasing service levels. Incentive design is one mechanism for linking the coordination ...
TL;DR: Thakkar et al. as discussed by the authors report the supply chain issues in small and medium scale enterprises (SMEs) using insights from select cases of Indian origin (manufacturing SMEs).
Abstract: This article reports the supply chain issues in small and medium scale enterprises (SMEs) using insights from select cases of Indian origin (manufacturing SMEs). A broad range of qualitative and quantitative data were collected during interviews and plant visits in a multi-case study (of 10 SMEs) research design. Company documentation and business reports were also employed. Analysis is carried out using diagnostic tools like ‘EBM-REP’ (Thakkar, J., Kanda, A., and Deshmukh, S.G., 2008c. An enquiry-analysis framework “EBM-REP” for qualitative research. International Journal of Innovation and Learning (IJIL), 5 (5), 557–580.) and ‘Role Interaction Model’ (Thakkar J., Kanda, A., and Deshmukh, S.G., 2008b. A conceptual role interaction model for supply chain management in SMEs. Journal of Small Business and Enterprise Development (JSBED), 15 (1), 74–95). This article reports a set of critical success factors and evaluates six critical research questions for the successful supply chain planning and management ...
TL;DR: In this article, the authors explored the various aspects of logistics outsourcing in companies operating in Finland and identified the connection between outsourcing, its motives and logistics costs, finding that cost savings together with flexibility and customer service were the major reasons for outsourcing.
Abstract: This article explores the various aspects of logistics outsourcing in companies operating in Finland. The aim is to identify the connection between outsourcing, its motives and logistics costs. The data comprise a survey sample of 299 manufacturing and trading firms. Descriptive statistical analyses, analysis of variance and factor analysis were applied. Transport activities are outsourced to a large extent. The majority of companies manage most other logistics operations in-house. The outsourcing of product customisation, inventory management and warehousing is expected to become more common in the future. Cost savings together with flexibility and customer service were found to be the major motives for outsourcing. A connection between logistics costs and logistics outsourcing was identified: companies with higher levels of outsourcing are experiencing lower levels of logistics costs compared to those with lower levels of outsourcing or none at all.