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Performance and partnership in global manufacturing-modelling frameworks and techniques
Abstract
Manufacturing globalization warrants researches in the two important related areas. First, the evaluation and comparison of performance based on the structure and future requirements of an industry. Second, the evaluation of essential synergistic effects resulted from sharing of resources in different forms of partnerships. This paper presents two related analytical models to quantify manufacturing performance and partnership synergy in a global context. It will analyse the related literature, outline model frameworks and evaluation methodologies, and illustrate the applicability.
... maliyetle cevap verme yeteneği olarak tanımlanabilir. İmalat performansını esneklik açısından değerlendiren çalışmalar, genellikle, ürün çeşitliliği, miktar, hacim, makine, rotalama ve dağıtım esnekliklerinin imalat performansı üzerindeki etkilerini incelemektedir (Wheelwright, 1978;Lo ve Pushpakumara, 1999;Tsubone ve Horikawa, 1999;Yang, Chuang ve Huang, 2009;Sarkis, 2003). ...
... Spesifikasyonlara ve ihtiyaçlara uygunluk olarak tanımlanan kalite, müşteri beklentilerinin karşılanması ve rekabetçilik açısından önemli bir boyuttur. Literatürde kalite boyutu, kaliteli ürün oranı, hata oranı, yeniden işleme oranı, hurda oranı, gibi göstergelerle ölçülmektedir (Lo ve Pushpakumara, 1999;Yang, Chuang ve Huang, 2009;Chan, Yung ve Ip, 2002;Chen, 2008;Yurdakul, 2002;Kodali, Sangwan ve Sunnapwar, 2004). ...
... Bu nedenle hız, imalat performans açısından önemli bir boyutu oluşturmaktadır. İmalat performansında hız, hammadde, sipariş ve temin süreleri, imalat hazırlık süreleri, hammadde ve yarı mamullerin fabrika içerisinde aktarım süreleri, birim üretim zamanı, hat hızı, çevrim zamanı, dağıtım hızı gibi göstergeler itibariyle belirli bir tempoya ulaşmayı ifade etmektedir (Yang, Chuang ve Huang, 2009;Lo ve Pushpakumara, 1999;Chan, Yung ve Ip, 2002;Chen, 2008;Yurdakul, 2002;Sarkis, 2003). ...
Imalat sistemlerinin rekabetciligini artirmada performans olcum sistemleri kritik rol oynamaktadir. Bu nedenle imalatcilar,mevcut durumlarini analiz etmek, iyilestirilebilir ve gelistirilebilir alanlari belirlemek icin cesitli yontemlerle performansolcumleri yapmaktadir. Bu calismada, cam endustrisindeki bir fabrikanýn imalat performansini olcen bir model onerilmistir. Modelde kullanilan performans boyut ve gostergelerinin katsayilari Bulanik Analitik Hiyerarsi Prosesi (BAHP) yontemi ile belirlenmiþtir. Onerilen model ile fabrikanin alti aylik imalat performansý olculmus, performans olcum sonuclari karsilastirilmistir.
... The characteristics of joint venture partnership will be divided into five dimensions in this study. The first dimension is win-win, according to Lo & Pushpakumara (1999) [12], win-win is described as through the mutual sharing of resources, the establishment of the relationship between enterprises, with lower transaction costs, focus on resources in the core competitiveness, to find new resources and market advantages, can make all partners a comprehensive win-win situation, and produce bigger output than individual company. The second dimension is synergy, based on Dollinger, Golden, & Saxton (1997) [13] that synergy refers to the company's culture capability with its partner. ...
... The characteristics of joint venture partnership will be divided into five dimensions in this study. The first dimension is win-win, according to Lo & Pushpakumara (1999) [12], win-win is described as through the mutual sharing of resources, the establishment of the relationship between enterprises, with lower transaction costs, focus on resources in the core competitiveness, to find new resources and market advantages, can make all partners a comprehensive win-win situation, and produce bigger output than individual company. The second dimension is synergy, based on Dollinger, Golden, & Saxton (1997) [13] that synergy refers to the company's culture capability with its partner. ...
... Supply chain coordination is one of the key capabilities [73] that enable firms to leverage their resources to accomplish objectives that they are unable to achieve alone [44] and create a seamless, synchronized supply chain [34]. Many firms perceive supply chain coordination as integral to their strategy [52] and spend millions of dollars in creating and sustaining effective supply chain coordination [71]. Therefore, it is crucial to identify the key drivers of supply chain coordination and implement them efficiently. ...
... In this study, a relationship is defined as an inter-organizational relationship that involves the sharing and pooling of resources to reduce conflicts and transaction costs, concentrating on critical competency and seeking additional assets and/or markets [52]. Depending on the nature of the shared resources and the extent of sharing, a successful relationship must lead to an overall win-win situation for all partners and have a significant effect on supply chain performance [79]. ...
... The accommodation of continual change within today's manufacturing enterprises is vital in order to achieve and maintain competitive advantage [1]. The need derives from a variety of agents acting under the constraints of a number of environmental pressures [2] (see Fig. 1). As illustrated in the diagram, manufacturing processes are driven throughout the product lifecycle by changes in factors such as the performance of ®nancial markets, the composition and behaviour of partners, product performance, the locations and volumes of products, competitor actions and customer desires and needs. ...
The development and application of a business process modelling approach to comprehend, formalize, simulate and assess a particular domain within the automotive industry are described in this paper. Within an ongoing project carried out by Loughborough University, the design and implementation of a new generation of component-based machine control systems are being investigated. As part of this project, impacts of business and technical aspects of the new control systems on existing practices are also being examined using enterprise modelling methods and tools. The modelling has been applied to the production and assembly of a machine for a new engine project in the automotive industry.
The modelling approach has been based on the CIMOSA modelling architecture and complementary simulation and analysis tools, mainly ithink™ and Excel. The lessons learned from the implementation of the modelling approach and the assessment of the component-based machine control systems are also discussed in this paper. The criteria of this assessment were considered primarily as cost and time, although other factors that ultimately impact on the business processes are also discussed.
... If both managers propose a plan, and = 1, , = 1 2, denotes the probability that manager is able to propose her merger plan to shareholders. Specifically, we assume a 7 Synergies arise e.g. from a new organizational structure that allows to share resources (Lo and Pushpakumara, 1999), the possibility to pursue projects with positive net present value that cannot be financed as stand-alones (Fluck and Lynch, 1999), or the transfer of intangible assets within the merged firm (Seth et al., 2000). Note that we assume that the CEOs influence activities destroy potential synergy gains, which implies that debt and equity financing of investments have a different impact on the netpresent value of the firm. ...
We analyze a Tullock-type takeover contest between two CEOs. To deter wasteful influence activities in shareholder optimum, the parachute compensates the (potentially) foregone earnings of the contestant whose incentives to invest in such activities are strongest. Therefore, the parachute is "golden," but must be calculated net of all influence and separation costs. Notably, this solution arises in equilibrium with uncoordinated shareholder decisions. Further, equilibrium severance pay does not depend on structures or levels of pre-merger manager compensations. Shareholders are always indifferent between dismissing either of the two managers.
Purpose
Maritime supply chains rely on electronic and paper-based processes, leading to efficiency bottlenecks. The purpose of this paper is to propose a theory for how implementing digitalization in the form of blockchain technology (BCT) can improve the efficiency and effectiveness of maritime supply chains.
Design/methodology/approach
This conceptual paper is grounded in dynamic capabilities, supply-chain management and digital supply-chain theories. Relevant literature is scrutinized to explain how BCT can improve supply-chain performance.
Findings
BCT mainly benefits supply-chain performance through the development of intangible capabilities, by leveraging the capabilities (resources) that maritime supply chains provide.
Research limitations/implications
This framework sets an analytical basis for future empirical research on BCT and maritime supply chains. As such, it can give only indications and aid in the theory-building process. Discussion on the value and effects of BCT on maritime supply chains is ongoing. Finally, the framework focuses on the application of one information technology in managing logistics activities, rather than taking a bundling approach.
Practical implications
Investments in digitalization improve the overall information sharing, coordination and visibility capabilities and performances of supply chains.
Originality/value
Although literature on BCT is extensive, this framework paper is the first to link BCT with dynamics capabilities and maritime supply-chain theory and will serve as a road map for future research and practice.
The manufacturing firms have to monitor their performance to maintain competitive advantages and sustain improvements. In this study, an approach based on Preference Selection Index (PSI) is proposed to calculate the manufacturing performance index at a specific time interval. Unlike many methods in the literature, this method offers a systematic approach with simple calculations without the need to determine the relative weights of the criteria. The application was performed in three separate production lines of the company in the glass industry and improvements in the performance of the lines for eight-month period of time were analyzed.
A method to enable the impact of a novel component based approach to the implementation of production machinery design and build processes from the perspectives of the manufacturing engineering partners within the automotive industry is reported in this paper. The assessment method is based upon the representation (using CIMOSA based constructs) and simulation (using the ithinktm software package) of the activity, actor and event relationships between distributed partners when involved in a global engine manufacture programme. Assessment is vital to ensure that the impact of any novel approach is appreciated in terms and metrics that are consistent with the current operational and interaction paradigms. Without this information is it extremely difficult for the engineering partners to appreciate the impact of changes on their roles, responsibilities and profits and hence determine a roadmap and timescale for the adoption of the changes associated with the novel technology.
To realize Flat-Structured system configuration modeling and better play its role in implementing Networked Manufacturing System (NMS), the fundamental framework and its key technologies of NMS configuration were proposed. Manufacturing resources modeling, virtual reality and network techniques to realize remote manufacturing were also introduced. Key steps to NMS configuration were analyzed in particular, and effective implementation strategy and solution were also provided. Finally, the NMS configuration platform was implemented by using of case study technique, remote manufacturing resources-exhibition modeling technique, and system configuration and evaluation methods.
Performance management system has undertaken a major position in structuring and successful implementation of strategic plans and quality management system researches. It has become an accelerating and system directing factor with the measurements and analysis made for the objective of continuous improvement. In this study, a modelling approach, oriented towards performance measurement and improvement of the process of mirror manufacturing factory operating in process industry, has been implemented. For this purpose, first the structural model of the process was constructed. The model focuses on measurement of effects of process characteristics in the manufacturing process on final product characteristics and focuses on improvement of final product characteristics. The results of the model were evaluated by its decision support to the management and its reflections on strategic plan.
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.
Using a two-round Delphi process among 92 manufacturing managers from
around the world, assesses the appropriateness of a variety of
performance measures. The Delphi process used a survey technique that
was pioneered by Dixon, Nanni, and Vollmann to highlight gaps (high
perceived importance to the company but low weight in the performance
measurement system) and false alarms (low perceived importance to the
company but high weight in the performance measurement system). Direct
cost reduction, machine efficiency, and labour efficiency are almost
universally seen as false alarms. On the other hand, new product
introduction, customer satisfaction, and employee involvement are
frequently revealed to be gaps, although with less consistency.
Cross-industry comparisons are a distinctive feature of this research.
During recent years more and more companies have embarked on studying the feasibility of globalising their manufacturing activities as a means of gaining access to new markets, minimising production costs and taking advantage of regional investment incentives. The steel industry in the developed countries in the West is at cross roads today. Demand in their countries has stagnated and overcapacity is a major problem. Steel industry is growing fast in developing countries offering competition for export markets. Still there is immense scope for the industry to grow in these countries , an opportunity for steelmakers in developed countries. A Manufacturing Capabilities Model is being developed for the steel industry to measure, compare and project the manufacturing performances of a company, if it supplies to a particular market using products manufactured in different locations. This paper identifies the performance parameters in the context of the steel industry, defines the Manufacturing Capabilities Model and demonstrates the way it can be implemented.
Very few performance measurement reports used by world class manufacturers are new; the majority have been in use for many years. The difference is that now these are the primary methods used to monitor and control the business. Cost accounting reports - which were primary in the past - are still used for external reporting, but not for operational decision-making by plant or departmental managers. Performance measurement reports employed by companies with good world class manufacturing (WCM) track records fall into five broad categories: quality, delivery, production process times, flexibility and costs. Specific examples of performance measures and examples of reporting methods are presented.
This paper identifies important research issues at the international, corporate, and business levels of strategy research. In addition, research questions that require integration across multiple levels of strategy as well as the incorporation of both the content and process dimensions of strategy are addressed.
Although the field of management has many international dimensions, this article limits the review of recent developments in international management research to eight important areas: (a) human resource management, (b) organizational behavior, (c) production management, (d) information and technology transfer, (e) structure and control, (f) strategy, (g) business-government relations, and (h) forms of involvement.
This study statistically tests the cumulative model for the building of manufacturing capabilities by comparing and contrasting the manufacturing strategies of 265 North. American, 129 European, and 167 Korean factories by region. The cumulative model suggests that better performing competitors build one manufacturing capability upon another in a sequential, cumulative fashion—starting first with quality, followed by dependability, delivery, cost efficiency, flexibility, and lastly, innovation.
The primary findings of this exploratory study are as follows: (1) the data yielded some evidence for the cumulative model, with the Korean data being the most supportive of the model; (2) North American, European, and Korean managers take different approaches to improved competitiveness; and (3) rather than focusing on one or two capabilities, better performing firms generally compete on the basis of multiple capabilities. That quality is not only at the base of the cumulative model but is often among the multiple capabilities shows the importance of quality management globally.
This 100th issue of Long Range Planning is a useful point to take stock. After two decades and 1000 articles we have a database to enable us to track recurrent themes, new trends and emerging issues which are likely to be important to planners in the 1990s.
The use of Analytical Hierarchy Process (AHP) is an effective way
to deal with qualitative decision areas of operations management. Four
published applications of AHP are briefly reviewed in forecasting,
supplier selection, facility location, and choice of technology.
Furthermore, four more potential applications are suggested in other
areas of operations management, including product design, plant layout,
maintenance frequency selection, and choice of logistic carrier. In
addition, suggestions for other areas of research are discussed.
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.
Examines empirical manufacturing strategy studies which have been
published in the refereed journal literature, and the extent to which
several conceptual premisses have been empirically tested. Presents a
methodology for the classification of empirical manufacturing strategy
which actively involves the authors of each empirical study in the
classification process. Presents and discusses classifications for 27
empirical manufacturing strategy articles. Ends with suggestions for
further research on the topic of empirical manufacturing strategy, along
with a discussion of the most current studies on the topic.
A good business performance measurement system is a very effective tool to motivate and monitor employees of a company. Although interest in creating performance measurement models is widespread, a well-designed system is rare. To be successful in today's competitive environment, a good performance measurement systems should incorporate strategic success factors. The model proposed in this study uses a three-level hierarchical schema to combine financial and nonfinancial performance measures and emphasizes external as well as internal business performance measures. In comparison with previous methods, such a method is more likely to cover a broader set of measures that include operational as well as strategic control. A prototype based on the analytic hierarchical model can be applied to other business situations.
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.
An instrument for evaluating the quality performance measurement level and the quality performance results is presented. The instrument is based on the classification of quality in categories and classes; for each of them, the objects of the evaluation, the methodologies, techniques and indicators most useful and used for the quality measurement and control are described.The instrument was tested in two large Italian manufacturing companies (Eaton Controls S.p.A. and Zanussi Elettrodomestici S.p.A.) and gave satisfactory results for the set up and improvement of the quality performance measurement and control system, and permitted a more effective benchmarking in relation to the quality performances.
This article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of MNE activity. In particular, it argues that, due to the increasing porosity of the boundaries of firms, countries and markets, the eclectic, or OLI, paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter-firm transactions, the growing interdependencies of may intermediate product markets, and the widening of the portfolio of the assets of districts, regions and countries to embrace the external economies of interdependent activities.© 1995 JIBS. Journal of International Business Studies (1995) 26, 461–491
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