Article

Leveraging fitness and lean bundles to build the cumulative performance sand cone model

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Abstract

This study examines the relationship between bundles of lean practices and cumulative performance, as described by the sand cone model. Based on the literature, hypotheses relating lean bundles to cumulative performance are proposed. They are tested using a sample of 317 plants in three industries and ten countries, based on structural equation modeling. The results indicate a set of direct and indirect relationships that illustrate: (1) the importance of organizational fitness at the base of the sand cone of practices, (2) the cumulative relationship of competitive performance, supporting the sand cone model, and (3) the cumulative relationship between lean bundles and the sand cone sequence of cumulative performance. Testing alternative models of cumulative performance lends further support to these results. The findings are discussed in terms of implications for managers seeking guidance in competing on multiple dimensions of competitive performance simultaneously, particularly in terms of establishing a foundation of organizational fitness for the cumulative implementation of lean bundles. It contributes to the literature on manufacturing strategy and lean by providing additional support for the sand cone of cumulative performance, expanding research on the sand cone of practices that support cumulative performance, describing the role that external resources like suppliers can play in mastering lean cumulatively and separating previous research on lean bundles into those related to fitness and those with a more specific goal orientation, building on the strong foundation provided by the extended resource based view and the concept of absorptive capacity.

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... Additional researchers have investigated the impact of LM practices on operational performance (Belekoukias et al., 2014;Inman & Green, 2018;Negrão et al., 2019;Panwar et al., 2018;Uhrin et al., 2017). While others focused on financial performance (Fullerton & Wempe, 2009;Ghobakhloo & Hong, 2014;Hofer et al., 2012;Inman et al., 2011;Negrão et al., 2019), market performance (Ahmad et al., 2004;Bortolotti et al., 2015;Fullerton et al., 2014;Wiengarten et al., 2015;Yang et al., 2011), and environmental performance (Bandehnezhad et al., 2012;Belhadi et al., 2020;Garza-Reyes et al., 2018;Inman & Green, 2018;Negrão et al., 2019). ...
... Several researchers have assessed the impact of lean deployment on 'financial performance' (Fullerton & Wempe, 2009;Ghobakhloo & Hong, 2014;Hofer et al., 2012;Inman et al., 2011). While other researchers have assessed the 'impact of lean on market performance' (Ahmad et al., 2004;Bortolotti et al., 2015;Wiengarten et al., 2015;Yang et al., 2011). Further, others have evaluated operational performance (Belekoukias et al., 2014;Inman & Green, 2018;Negrão et al., 2019;Uhrin et al., 2017) and a few evaluated environmental performance (Bandehnezhad et al., 2012;Belhadi et al., 2020;Garza-Reyes et al., 2018;Negrão et al., 2019). ...
... Empirical studies show that lean has a positive relationship with financial performance (Ahmad et al., 2004;Claycomb et al., 1999;Hofer et al., 2012;Matsui, 2007;Nawanir et al., 2013;Negrão et al., 2019). According to Abreu-Ledón et al. (2018), lean manufacturing practices have a positive impact on market performance (Bortolotti et al., 2015;Ghobakhloo & Hong, 2014;Ketokivi & Schroeder, 2004;Nawanir et al., 2013;Wiengarten et al., 2015). Further, little evidence shows that lean practices have a positive impact on environmental performance (Azadegan et al., 2013;Garza-Reyes et al., 2018;Negrão et al., 2019;Yang et al., 2011). ...
Article
Lean is one of the most powerful operational excellence methodologies in operations management that manufacturing organisations deploy to enhance their competitiveness. The objective of this study is to investigate published research with respect to the relationship between lean practices and organisational performance using a meta-analysis of correlation approach. This study gathered data from 40 articles published in reputed journals from 1993 to 2020 and analysed the effect of lean practices on organisational performance. In this context, this study utilised 12 lean practices and 4 different performance outcomes, which included operational, financial, market, and environmental. Using comprehensive meta-analysis software, the results indicate that a significant and strong positive relationship exists between aggregate lean practices and aggregate organisational performance (r = 0.37). There is also a significant strong positive relationship with all of the performance outcomes. The research highlights those individual practices have the strongest impact on organisational performance and emphasises the role of moderating variables in the relationship between lean practices and organisational performance. Theoretical and practical implications are discussed and limitations and future research directions are presented. The findings of this study provide a better understanding of lean deployment benefits in organisation. This research has significant contribution to the body of knowledge for the lean research community, especially for lean deployment in emerging sectors.
... The cumulative model was originally developed to describe the best-performing firms; however, there exist empirical examinations and evidence that suggest it has reached general dissemination among companies in numerous countries [49]. However, the cumulative model seems to form in a different fashion within developed and emerging countries [16]. ...
... In the manufacturing area, cost efficiency is linked to achieving or maintaining low raw-material, labor, and manufacturing costs [54][55][56]. Companies that develop cost-related capabilities usually adopt lean strategies [49]. However, it is usually not feasible for firms located in developed countries to compete solely on the basis of cost [16]. ...
... In the manufacturing area, cost efficiency is linked to achieving or maintaining low rawmaterial, labor, and manufacturing costs [54][55][56]. Companies that develop cost-related capabilities usually adopt lean strategies [49]. However, it is usually not feasible for firms located in developed countries to compete solely on the basis of cost [16]. ...
Article
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This research evaluates the critical capabilities and improvement areas for competitive manufacturing in a developed-country environment. A multiple-case-study approach is applied, consisting of three manufacturing firms located in Sweden. The case study combines both quantitative and qualitative evaluations of the critical capabilities found in the extant literature. The research reveals fifteen critical capabilities and sixteen improvement areas for competitive manufacturing in a developed-country environment. The results show that the firms develop capabilities in a cumulative manner, starting with cost and quality, continuing with time and flexibility, and finally trying to improve innovation and sustainability. To develop competitive manufacturing operations in developed counties, it is therefore vital to improve capabilities related to time, flexibility, innovation, or sustainability. Irrespective of the targeted capabilities, they must contribute to cost-efficient operations and high quality must always be maintained. The efforts to develop capabilities related to innovation and sustainability may be expensive in the short term, however they can provide better cumulative results and competitiveness in the long term.
... Firstly, lean represented a philosophy related to principles (Womack et al., 1996) and secondly, from a practical perspective, as a set of manufacturing practices or tools (Shah and Ward, 2003, Demeter and Matyusz, 2010, Bortolotti et al., 2015. Antony et al. (2019) recently conducted a review of lean tools used in healthcare and found eleven common factors that motivate the use of lean in organisations. ...
... In exploring the research questions, this study made a number of theoretical contributions. The positive impact of lean and quality practices on operational performance was identified by previous studies (Bortolotti et al., 2015, Elshaer and Augustyn, 2016, Basu et al., 2018, Garza-Reyes et al., 2018, Alexander et al., 2019, Curado, 2019. Furthermore, our study confirms the argument that investments in lean and quality practices positively impact the production swiftness (throughput speed, cycle and delivery time of a production process) and evenness (variability in quality associated with that process at pre, during and post processing stages). ...
... suggest that companies that invest in lean and quality practices outperform their competitors on multiple performance dimensions. In other words, companies can improve their factory fitness cumulatively (Bortolotti et al., 2015). ...
Article
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The purpose of this study is to investigate the relationship between investments in quality and lean practices, and their impact on factory fitness. Using concepts originating in the theory of swift even flow, this study asserts that manufacturers in order to improve their production swiftness and evenness, must leverage the potential synergetic effects between quality and lean practices. This research uses data from the Global Manufacturing Research Group (GMRG) survey project (with data collected from 922 manufacturing plants, across 18 countries). The constructs and measurement model were assessed using confirmatory factor analysis (CFA) and the hypotheses were tested using ordinary least square (OLS) models. This study highlights that both investments in quality and lean practices have a direct impact factory fitness. The results provide insights into the efficacy of the investments in manufacturing practices and their role in augmenting the operational performance. The investments in quality practices were found to enhance the efficacy of investments in lean practices, which in turn impact the factory fitness. From a practical perspective, the study informs managers on how to leverage investment in quality practices to enhance the impact of lean practice on performance. The results provide empirical evidence to support management decision making concerning the development of competences in quality and lean practices, that may create competitive advantage. This study contributes to the quality and lean literature and provides empirical evidence of the synergetic effects between investments in quality and lean practices. The analysis offers a greater understanding of the mechanisms that can be used to maximise the impact of investments in lean practices, from a global perspective. The findings are important to the advancement of theory in operations management, as it integrates three research streams: quality practices, lean practices and swift even flow research.
... Empirical evidence that supported the concept was later provided by Schroeder et al. (2011). More recently, Bortolotti et al. (2015) applied the same concept in the context of lean manufacturing and supply chain management, to propose that the implementation of "fit practices" (associated with sustainability by Pham and Thomas (2011)) is the basis for other lean practices and their subsequent effects on performance. More recently, Rezaei and Behnamian (2021) related the sand-cone model to sustainability and proposed three different stages to supplier selection (based on sustainable performance), in accordance with different phases of product lifecycles. ...
... This study utilizes an empirical approach, which is quite common in OM research and has been used by many often-cited authors (Bortolotti et al., 2015;Danese et al., 2019;Jabbour et al., 2013;Sajan et al., 2017;Sardana et al., 2020). Relevant performance variables were extracted from the literature, in order to form constructs for each one of the TBL pillars. ...
... Said assumptions can be proven through a sample adequacy test (Prasad et al., 2016) and PCA. Third, an iterative Confirmatory Factor Analysis (CFA) was performed using AMOS 23 to validate the chosen scales convergent validity, and unidimensionality of the selected constructs (Bortolotti et al., 2015;Sardana et al., 2020). The CFA approach results useful when the proposed measurement model has a theoretically sound base structure, and the researcher wants to confirm that the examined dataset indeed fits said a-priori defined measurement model (Nawanir et al., 2018;Varela et al., 2019). ...
Article
Sustainability improvement has become a priority for manufacturing companies due to increasing pressures from stakeholders. However, companies often struggle to find sustainability frameworks for their day-to-day decision-making processes, which leads to failed adoptions of sustainability practices, or sub-performance in certain sustainability dimensions. The triple bottom-line approach has been adopted by companies to measure and manage sustainable performance, but many have concerns on how to address each sustainability pillar and strike a balance among them. This paper proposes two different models: the cumulative model which follows a “sand-cone” approach, with operational performance at the base, and environmental and social on top, and the “trade-offs” model which suggests that improvements in one dimension come at the expense of another. The two models were tested using structural equations modelling, with data collected from Colombian manufacturing companies. Results suggest that sustainable performance follows the cumulative approach, in which operational performance has a positive impact on both environmental and social performance. Environmental performance also has a positive effect on social performance, and there is an indirect effect of operational performance on social performance. Regarding the trade-offs model, the results do not provide sufficient evidence to support this approach. This paper presents a significant contribution as it extends two common operations management approaches (the sand-cone and trade-offs) to sustainable manufacturing, giving light on the complex interactions between sustainability dimensions, and providing empirical evidence for the proposed models. The results are helpful for managers and practitioners to implement and pursue sustainable manufacturing models in their organizations.
... Table I presents a summary of this research. Some of these studies consider a single element or dimension and its impact on performance (Demirbag et al., 2006;Foon and Terziovski, 2014;Hooi and Leong, 2017;Jain et al., 2015;Lee, 2000;Sila, 2007), while others emphasize the interactions between different elements, as the adoption of one practices can be related to adoption of other practices (Behrouzi and Wong, 2011;Bevilacqua et al., 2017;Bhasin, 2012;Bortolotti et al., 2015;Cua et al., 2006;Inman et al., 2011;Kamath and Rodrigues, 2016;Kaur et al., 2012;Pramod et al., 2006). Many of these authors have referred to Shah and Ward's (2003) classification of lean practices. ...
... For them, practices commonly associated with lean production include procedures for creating JIT flows, HRM and empowerment practices, equipment management practices and various quality management practices (Bevilacqua et al., 2017). According to suggestions by Ward (2007, 2003), some authors introduced new bundles such as product customization (Bortolotti et al., 2013), supplier management (Bhasin, 2012;Hofer et al., 2012), customer management (Psomas et al., 2014), environment management (Yang et al., 2011), manufacturing technologies (Khanchanapong et al., 2014) and strategy integration (Bortolotti et al., 2015). It is now common for manufacturing firms to adopt simultaneously various facets of lean production practices, and it is important to understand the synergistic effects of bundles of lean practices on improving business performance. ...
Article
Purpose Total productive maintenance and total quality management are two lean manufacturing initiatives that are used by manufacturing plant managers to improve operations capabilities. The purpose of this paper is to investigate the effects of standalone lean practices and lean bundles on manufacturing business performance. Design/methodology/approach A quantitative approach was used. The survey data were drawn from 160 manufacturing organizations in India. The respondent companies were grouped on the basis of the duration of lean production in operation and then classified based on the profile of their operations strategy. The approach, based on comparative assessment between standalone lean practices and lean bundles, has been directed toward justification of lean bundles for its support to competitive manufacturing in the context of the Indian manufacturing sector. Findings The paper establishes the long-term effects of lean bundles in significantly improving manufacturing business performance as compared to standalone lean practices. Further findings of the study revealed the significance of the duration of lean production in operation in achieving higher levels of manufacturing business performance. Research limitations/implications The study is cross-sectional in nature. It would be interesting to test the analytical framework adopted for this study for more industries and in different countries. The use of subjective measures in survey questionnaire is also another limitation of the study. Practical implications This study offers clear implications for practitioners, proving that they should give higher emphasis on the implementation of lean bundles using total productive maintenance and total quality management practices together, to prioritize their product, production and business strategies, to achieve sustainable competitive advantage. Originality/value This paper empirically examines and evaluates the effect of lean practices and bundles in the context of medium- and large-sized manufacturing industries in India. Besides, there are very few studies that comparatively assess the differences in performance contribution of various lean operational strategies considering duration of implementation of lean. Also, the theoretical contribution of the study establishes the essence of integrating total productive management and total quality management for attaining world class manufacturing is of high value.
... Fewer researchers used data from both the developing and developed nations. Examples of these research studies were conducted by (Bortolotti et al., 2015b;Garza-Reyes et al., 2018;Netland et al., 2015). Garza-Reyes et al. (2018) studied the effect of LM tools on environmental performance. ...
... The study revealed that LM tools such as VSM and autonomation had no impact on environmental performance, while JIT, kaizen and TPM positively impacted environmental performance. Bortolotti et al. (2015b) assessed the impact of LM practice bundles on the cumulative performance in 10 countries from the developed and developing nations. The study results revealed that JIT and TQM practice bundles directly affected quality which, in turn, affected delivery, flexibility and cost. ...
Article
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Purpose This study aims to comparatively discuss the effect of lean manufacturing (LM) implementation in the manufacturing sectors of developing and developed countries. Design/methodology/approach An in-depth literature review focused on previous research published between 2015 and March 2020. The papers published by the databases such as Google Scholar, Scopus, ProQuest and Web of Science were used in the study. A total of 63 studies that focused on LM application in manufacturing industries in developing and developed countries were used in the research. Findings It was observed that LM improves operational performance for manufacturing organizations in developing and developed countries. Small and medium-sized enterprises in both developed and developing countries have difficulties transforming their organizations into lean organizations compared to large enterprises. Furthermore, the review also found that there seems to have been no paper had reported the negative impact of implementing LM in manufacturing industries in developing and developed countries from 2015 to March 2020. Research limitations/implications The study used research papers written between January 2015 and March 2020 and only considered manufacturing organizations from developed and developing nations. Practical implications The study provides more insight into LM implementation in developing and developed countries. It gives the LM practices and the implications of applying these practices in manufacturing organizations for developing and developed countries. Originality/value A preliminary review of papers indicated that this seems to be the first paper that comparatively studies how LM implementation has affected manufacturing organizations in developed and developing countries. The study also assessed the LM practices commonly used by the manufacturing industries in developing and developed countries.
... Recent studies focused on wider scopes of the sustainability and different areas of linkage between lean an sustainability. This identified areas have a broader scope of lean beyond environmental area, including supply monitoring, transparency, workforce treatment, and community engagement [5]. This particular study has identified 16 areas of linkage between lean and sustainability relevant to MSMEs, mentioned from the various literatures. ...
... Even though there is a strong linkage between lean manufacturing practices and sustainability benefits in SMEs, the effect of contextual factors in these areas of linkage is unknown. Demand variability and product customization are such contextual factors which effecting the lean performance [5]. The SMES are following the different production systems like make to order or stock and assemble to order or stock. ...
Article
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Lean manufacturing has been emerged as the new means for the sustainable performance improvement of the small and medium enterprises (SMEs). Sustainable growth of the manufacturing SMEs is the new requirement of the current industrial world. The researchers are now focused to link the lean operations to the sustainability of the manufacturing firms. Type of production system following in the firm is a contextual variable which influences the lean implementation. This paper is trying to identify the new areas of linkage between lean and sustainability relevant to Indian SMEs and investigate into the statistical divergence due to contextual variable.
... responsiveness) (Schoenherr and Narasimhan, 2012). Traditionally, the operational performance has been measured considering four dimensions: quality, delivery, flexibility and costs (Bortolotti et al., 2015;Hallgren and Olhager, 2009;Singh et al., 2018). The core characteristics contribute to a company's goals such as low-cost and high-quality products (Koren, 2013). ...
... As mentioned before, this analysis was conducted considering the four operational performance measures traditionally reported in the literature: quality, delivery, flexibility and cost. Quality was measured by the conformance to product specification; delivery was measured by on-time delivery and fast delivery; flexibility was measured by the flexibility to change volume and product mix; and cost was measured by the unit cost of manufacturing (Bortolotti et al., 2015;Hallgren and Olhager, 2009;Schoenherr and Narasimhan, 2012;Singh et al., 2018). Respondents were asked to compare the performance of their company to their main competitors. ...
Article
Purpose The purpose of this paper is to investigate the current level of reconfigurability implementation and its impact on manufacturing systems’ operational performance empirically. Design/methodology/approach This study is based on a questionnaire survey. Statistical analysis procedures were adopted to accomplish its objectives, namely, clustering methods based on cluster centroids. An ANOVA analysis was used to test for cluster differences among the variables. Findings The results show that the manufacturing companies surveyed can be divided into three clusters, with different levels of reconfigurability implemented. The implementation of the core characteristics of reconfigurability depends on the product’s complexity and demand variability, in terms of volume and product mix, as these have an impact on the operational performance, in terms of quality, delivery and flexibility. Research limitations/implications The data for this survey were collected from manufacturing companies based in Portugal. Therefore, the replication of this questionnaire in other countries is recommended for future research to confirm its findings. Practical implications The questionnaire developed could be used by managers to assess the level of reconfigurability of their production systems and for internal/external benchmarking. The findings may help managers to decide which core characteristics should be implemented in their manufacturing systems. Originality/value The majority of the research addressing performance issues in reconfigurable manufacturing systems has been applied to case studies. This research reports an empirical investigation using a questionnaire-based methodology to provide generalisable empirical evidence.
... responsiveness) (Schoenherr and Narasimhan, 2012). Traditionally, the operational performance has been measured considering four dimensions: quality, delivery, flexibility and costs (Bortolotti et al., 2015;Hallgren and Olhager, 2009;Singh et al., 2018). ...
... As mentioned before, this analysis was conducted considering the four operational performance measures traditionally reported in the literature: quality, delivery, flexibility and cost. Quality was measured by the conformance to product specification; delivery was measured by on time delivery and fast delivery; flexibility was measured by the flexibility to change volume and product mix; and cost was measured by the unit cost of manufacturing (Bortolotti et al., 2015;Hallgren and Olhager, 2009;Schoenherr and Narasimhan, 2012;Singh et al., 2018). Respondents were asked to compare the performance of their company to their main competitors. ...
... responsiveness) ( Schoenherr and Narasimhan, 2012). Traditionally, the operational performance has been measured considering four dimensions: quality, delivery, flexibility and costs ( Bortolotti et al., 2015;Hallgren and Olhager, 2009;Singh et al., 2018). ...
... As mentioned before, this analysis was conducted considering the four operational performance measures traditionally reported in the literature: quality, delivery, flexibility and cost. Quality was measured by the conformance to product specification; delivery was measured by on time delivery and fast delivery; flexibility 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 u r n a l o f M a n u f a c t u r i n g T e c h n o l o g y M a n a g e m e n t was measured by the flexibility to change volume and product mix; and cost was measured by the unit cost of manufacturing ( Bortolotti et al., 2015;Hallgren and Olhager, 2009;Schoenherr and Narasimhan, 2012;Singh et al., 2018). Respondents were asked to compare the performance of their company to their main competitors. ...
Presentation
Given the increasing need for more reconfigurable manufacturing systems to cope with high product variety and large fluctuations in market demand, this paper examines the current views of manufacturing executives on the core characteristics of reconfigurability: modularity, integrability, customization, convertibility, scalability and diagnosability. Specifically, this research empirically investigates the extent to which the core characteristics of reconfigurability are implemented in manufacturing companies and their relationship with manufacturing systems’ operational performance. This study is based on a questionnaire survey, which was carried out with Portuguese companies. Statistical analysis procedures were adopted to accomplish the objectives of this study, namely clustering methods based on cluster centroids. The results show the existence of three clusters. The conclusions of this research have practical implications for the companies surveyed, that presented average implemented levels of each core characteristic.
... Hanayneh (2014) Cost, quality, delivery, profitability, productivity, safety and hygiene and employee morale Construction material, pharmaceuticals, plastics, metals, glass, dairy, oils and paper Singh and Ahuja (2014) Strategic business performance, employee competencies, quality, production, cost, flexibility and delivery, safety, and employee morale and contribution Manufacturing plants Khanna and Gupta (2014) Productivity, quality, cost, delivery, safety and employee morale Metals and rexine Bortolotti et al. (2015) Cost, flexibility, delivery and quality Electronics, machinery and transportation components Singh and Ahuja (2015) Production rate, availability, productivity, performance rate, overall plant efficiency, customer complaint, reduction in cobbles and scrap, monthly rejection, quality rate, conversion cost, major accidents and minor accidents in company Machinery Modgil and Sharma (2016) Quality, cost, delivery, reduced defect/scrap, innovation, minimum work in progress and capacity utilization Pharmaceutical Kamath and Rodrigues (2016) Delivery, quality and cost Printing Table III. ...
Article
Purpose The purpose of this paper is to provide sector-specific empirical evidence on the comparative evaluation of total productive maintenance (TPM) and total quality management (TQM) approaches, implemented exclusively and collectively on improving manufacturing business performance. Design/methodology/approach This paper develops a multi-sector analysis framework to comparatively assess the synergistic and standalone effect of TPM and TQM improvement approaches. A total of 231 manufacturing organizations from food and beverages, textiles and electrical and electronics sectors have been extensively surveyed. These firms were further clustered into TPM focus, TQM focus and integrated TPM×TQM on the basis of their primary manufacturing strategy. Comparative assessment of these three manufacturing approaches has been evaluated using t -test statistics. Findings This paper highlights that adoption of integrated TPM×TQM approach is beneficial for food and beverages and electrical and electronics sectors. However, this supposition is rejected for firms operating in the textile sector. Research limitations/implications The findings of this research are still exploratory. Future research using countrywide and cross-country approach can be undertaken to statistically generalize the findings of the present research. In-depth case studies are needed to further validate the findings of the study empirically. Practical implications The result of this study help managers and practitioners to make manufacturing strategic decision based on the nature of their operating business sector regarding adoption of TPM and TQM practices, which will further revive their firm’s competitiveness. Originality/value Every operating sector embraces a diversity of manufacturing activities based upon their competing priorities. This paper makes an attempt to present a multi-sectoral evaluation of joint implementation and effect of manufacturing programs.
... I followed Ferdows and De Meyer (1990) and Bortolotti et al. (2015) to measure operational performance as a second-order construct. The four first-order dimensions are cost, quality, delivery and flexibility. ...
Article
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Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.
... Respondents were asked to evaluate the extent to which lean production related statements in the questionnaire applied to their plant compared against their industry average (1= much less, 4= about the same as their industry average, 7= much more). In the literature, there is a preference for researchers to investigate lean production as a bundle, rather than individual Bortolotti et al., 2015). Previous researchers often relied on the same set of items to build the lean production-related construct variable (e.g., Narasimhan et al., 2006; (Table 2). ...
Article
Purpose The purpose of this paper is to investigate the role of external and internal sources of variability on the degree of lean production implementation. For this, this paper analyzes the effects of environmental risk and the company’s past operational performance on the level of lean production implementation. Design/methodology/approach Utilizing the reasoning of prospect theory and the threat-rigidity hypothesis, three hypotheses have been developed as to the impact of internal and external sources of variability on the degree of lean production implementation. A questionnaire has been developed to test the hypotheses of the paper on a sample of first-tier suppliers in the Spanish automotive industry. The methodology comprises a combination of hierarchical regression analysis and mediation analysis. Findings In line with the propositions of prospect theory, the results obtained show support for the influence of firm risk and past operational performance variability in terms of undertaking decisions that favor further progress in lean production implementation. Originality/value This paper contributes to the explanation of the circumstances that ultimately lead to the implementation of lean production. Consequently, the impact of the external and internal environment influences a company’s commitment to increasing its level of lean production implementation and fosters managers’ strategic decision making. Furthermore, its implementation could help guarantee firm survival.
... The concept draws from the cumulative capabilities approaches proposed by Ferdows and De Meyer (1990) and later by Schroeder et al. (2011). This kind of layered approach framework is often known as the 'sand-cone' model, which proposes that a company can use its strength on a series of 'base-line' practices or competitive priorities, to develop other performance dimensions (Bortolotti et al., 2015). Thus, companies can focus on a step-wise approach, which allocates resources to building prioritised foundations, instead of spreading resources throughout a wide assortment of capabilities. ...
Article
Manufacturing companies are under constant pressure from stakeholders to achieve higher sustainability levels, especially in terms of environmental and social aspects. Although social performance is not a new topic in operations management, it is the least explored pillar of the triple bottom-line approach. Metrics for the assessment of social performance levels remain scarce, which limits those companies that are willing to involve them in decision-making processes. This situation can be attributed to the difficulty of finding sufficiently comparable, widespread, and quantifiable social metrics. Therefore, the present study aims to provide a broader perspective of social performance, including both internal and external metrics. With the goal of providing a more holistic performance assessment, and based on findings present in the current literature, a social performance metrics framework is proposed. The framework proposes a three-layer approach, which allows companies to strengthen their social performance evaluation, based on intetnal metrics, while dealing with more complex external metrics.
... Continuous improvement leads to higher operational and financial performance because of the elimination of unnecessary variability (Hopp and Spearman 2004), the reduction of non-value added activities and hence an increase of customer value and satisfaction (Singh and Singh 2015). In addition, continuous improvement seems to function as a kind of a fitness factor that enlarges the impact of other practices on performance (Bortolotti et al. 2015), and is hence a source of competitive advantage (Sanchez and Blanco 2014;de Menezes, Wood, and Gelade 2010). ...
Article
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Training and the use of a common improvement method have been promoted as important mechanisms to facilitate continuous improvement. As a result, organisations invested heavily in purchasing standard, off-the-shelf improvement methods and massive training of employees in these types of methods and the associated tools and techniques. In practice, however, many improvement programmes are not as successful as initially expected. The question is whether training of all employees in the common improvement method leads to more employee involvement and participation and hence higher levels of continuous improvement? Based on a sample of 208 respondents from different organisations, this study shows that training for continuous improvement and the use of a common improvement method are indeed positively related to employee involvement, but it also shows that there is a negative interaction effect between training and the use of a common improvement method such that the higher (the adherence to) the use of a common improvement method the more reduced the positive effect of training on employee involvement is. This study also shows that employee involvement partly mediates the impact of training on continuous improvement. However, the higher the adherence to a common improvement method, the lower the indirect effect of training via employee involvement on continuous improvement is. Training should therefore not only be given about the common improvement method, but especially broad in the field of continuous improvement.
... They argue that factories must improve the speed of material flow and reduce overall variability associated with quality, quantity or time in order to achieve production fitness. The concept provides a holistic view of the development of production capabilities (Bortolotti et al., 2015b). Companies that focus on building production fitness can expand their more complex capabilities, enabling them to respond leaner and more agile to the demands from the market. ...
Article
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Purpose The purpose of this research is to test a model that incorporates investments in quality and Lean practices and production fitness constructs, originating in the theory of swift even flow (SEF), to provide insights into successful implementation of manufacturing practices. Design/methodology/approach This research uses data from the Global Manufacturing Research Group fourth round survey and empirically tests the relationships between investments in Lean practices and improvements in production fitness, using a sample of 844 plants in 17 countries. Findings The results highlight that the implementation of Lean practices yields better results on production evenness, when the company has higher levels of investments in quality practices. Therefore, the implementation of quality practices is a prerequisite for achieving higher production fitness. Originality/value The findings are important to the development and testing of operations management theory, as it integrates two research streams, manufacturing practices and SEF research, to gain insights into the interplay of manufacturing practices and how it influences the production fitness. For practitioners, this research assesses how better-performing plants compete. It provides operations managers with a better understanding of production fitness and how manufacturing practices foster its development.
... In a similar approach, Bortolotti et al. (2015) proposed a "sand-cone" model, in which some lean bundles are described as "fitness" bundles, thus providing the support needed for successful implementation of other practices, and their subsequent improvements in OP. The proposed fitness base practices are JIT and TQM. ...
Article
Lean manufacturing has proven its positive effects on operational and economic performance in multiple cases. However, growing consciousness regarding sustainability and the Triple Bottom Line approach requires an integral performance based on three main goals: economic growth, environmental preservation, and social responsibility. Given the relevance that lean manufacturing has acquired, it is important to understand its effects on sustainability. Thus, this paper presents a literature review, discussing the most relevant findings of research in this sphere, and identifying current trends concerning the effect of lean manufacturing on sustainable performance. A total of 69 papers were reviewed, following a five-step synthesis methodology. Common and contrasting results were categorized according to each pillar of the triple bottom line, which allowed for the identification of not only growing research trends, but also of knowledge gaps. Unlike previous literature reviews, this study approaches lean manufacturing’s effect on performance from a multidimensional point of view, accounting for all three triple bottom line pillars. It contributes on the identification of the main current research trends, which favors branches: one which supports complementary interactions between lean manufacturing and all three pillars of the triple bottom line, and the other, which evidences trade-offs among them. According to the results of the review, knowledge gaps on the matter remain, which require further research.
... Lean manufacturing reorganizes a manufacturing firm into cells and value streams to improve the quality, flexibility and customer response time of their manufacturing processes (Fullerton et al., 2014). Lean manufacturing is very powerful in increasing IJLSS operational performance on quality (Shah and Ward, 2003), productivity (Fullerton and Wempe, 2009;Singh et al., 2011), reduced inventory (Chong et al., 2012;Losonci and Demeter, 2013), reduced cost (Hallgren and Olhager, 2009;Pampanelli et al., 2011), reduced defect (Gupta and Kumar, 2013;Prashar, 2014) and on time delivery (Bortolotti et al., 2014). Lean manufacturing is also powerful in increasing systems performance based on cost, quality, delivery and flexibility (Boyle and Scherrer-Rathje, 2009) and transactional processes leads to a better sustenance of achieved performance improvements on the shop floor under high uncertainty (Birkie et al., 2017). ...
Article
Purpose Manufacturers and engineers need a practical and operational way to understand sustainable manufacturing and to apply it to their shop floors. The single index enables manufacturing industries to make decisions considering the continuous improvement to increase sustainability performance. The purpose of this paper is to develop a manufacturing sustainability index (MSI) based on lean and sustainability concepts using sustainable-value stream mapping. Design/methodology/approach The methodology of this research is linked to Delphi- analytical hierarchy process (AHP) qualitative assessment with sustainable-value stream mapping quantitative analysis for determining MSI. The Delphi method is used with relevant indicator selection, sustainable-value stream mapping is used to score the relevant indicator with efficiency approach and the AHP method is used to determine the indicator weight. To evaluate the applicability of this framework for assessing sustainability in the manufacturing process, a case study in Indonesian Wooden Furniture was developed. Findings The findings of this research is the framework for evaluating and assessing the sustainability performance of the manufacturing process. Although evaluation of the framework is limited to the furniture industry, there is a methodology potential to reproduce for the other sectors. Research limitations/implications Theoretically, this study has provided a single index to measure performance of the manufacturing sustainability comprehensively at factory level. However, the implementation of the developed model is too limited. More application in different sectors and different industrial sizes is needed. Originality/value The value of this research lies in the novelty of the single index in measuring manufacturing sustainability and the relevant indicators for the furniture industry in Indonesia. The selection of the indicators has involved practitioners in the furniture industry and encompassed economic, environmental and social dimensions. The visualization of indicators through sustainable-value stream mapping is proven to be more practical and helpful for industrialists.
... Recently, Boon-Itt and Wong (2016) studied Thai manufacturing firms and identified Q-D-C-F as the best fit sequence. Although many works have studied cumulative capabilities using performance dimensions, few have attempted an exploratory analysis of the cumulative capabilities models from the perspective of manufacturing (Bortolotti et al., 2014). For instance, Flynn and Flynn (2004) reported a substantial difference in the performance outcomes of sequences across countries and industry types. ...
Article
Purpose The purpose of this paper is to update existing Kauffmann’s NK model to evaluate the manufacturing fitness of strategic business capabilities. The updated model is tested in a digital manufacturing (DM) setting to investigate the sequence for developing cumulative capabilities that can yield the maximum payoff. Design/methodology/approach The authors develop a grey–DEMATEL–NK fitness model and show its application, through a case study, to a DM firm in India. Findings The grey–DEMATEL–NK model helps evaluate multiple manufacturing capabilities and indicates that quality–flexibility–cost–delivery is the sequence that yields the maximum manufacturing fitness (competitive payoff) for a DM firm. This sequence helps the firm reorganise its internal business processes and is different from that used to develop cumulative capabilities in a traditional manufacturing setting (quality–delivery–flexibility–cost). Originality/value This study presents a pilot model for computing the cumulative capabilities payoff and prescribes a sequence for developing cumulative capabilities within a DM context.
... Basically since diminishing wastage leads to enhance organizational operational performances, it obviously mediates to enhance Volume-1, Issue-1 (January-June, 2020) Journal of Accounting Research, Business and Finance Management www.matjournals.com economic significance through increase delivery time, speed, quality, flexibility and finally decrease cost and wastage as well [3][4]. ...
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The contribution of Small and Medium Enterprises (SMEs) in Sri Lanka plays a massive role economically and socially as it accounts for 80% of all businesses. Since the large scale businesses are now moving towards sustainable development these SMEs could also think of practicing such strategies for the betterment of their future as well as the country. Therefore it is important to show the respective parties the benefits they could gain by having sustainable practices within the business. Hence the main objective of this study is to investigate the impact of one of the sustainable practices which is the Lean Manufacturing Practices (LMPs) on sustainability performance of SMEs. Here sustainability performance were measured under economic, environment and social perspectives which are considered as Triple Bottom Line (TBL) sustainability performances. Data were collected from 100 SMEs in Western Province Sri Lanka through a structured questionnaire and analysis was done with Structural Equation Modeling (SEM) using Smart PLS. Outcome has shown that there is a significant positive impact on sustainability performance from LMPs. In implementing LMPs within a business this will be an supportive study for managers to inspire and get the commitment of business stakeholders who have different expectations. Further this study contributes to theoretical and practical knowledge in terms of the importance of LMPs in maximizing economic, environment and social sustainability performances.
... Lean Manufacturing (LM) was not only simple to implement but also delivered large returns for firms. It helped firms to significantly reduce non-value adding tasks and enhance value-adding tasks, which finally enhanced their operational performance (Shah and Ward, 2003;Chavez et al., 2013;Bortolotti et al., 2015a). ...
Article
This paper examines pathways to implement a high-performing Lean Automation (LA). We asked 61 manufacturers from Brazil and India that are undergoing a lean implementation together with the adoption of disruptive digital technologies from Industry 4.0 (I4.0) to indicate their implementation sequence. We then used multivariate data techniques to analyze the collected data. Our findings suggested three sets of lean practices and I4.0 technologies; namely: start-up, in-transition and advanced. Further, companies that presented a higher performance improvement have more extensively implemented start-up and in-transition practices/technologies. However, no significant difference was found for the adoption level of advanced practices/technologies between low- and high-performer companies. Since the integration of I4.0 technologies into Lean Manufacturing (LM) is a relatively recent phenomenon, our study provides guidelines related to a preferential implementation sequence within this portfolio of practices and technologies.
... The impact of lean practices on business performance can be identified from various previous research studies. Lean stresses productivity improvement, waste reduction and resource efficiency leading to enhanced business performance via cost reduction (Mart ınez-Jurado and Moyano-Fuentes, 2014; Khanchanapong et al., 2014;Bortolotti et al., 2015). Waste reduction in the form of defects leads to improving productivity and reducing the firm's cost, which in turn raises return on assets (Yang et al., 2011). ...
Purpose This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance. Design/methodology/approach A survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique. Findings The findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance. Research limitations/implications To counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal. Originality/value The study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.
... kan falsafah pengurusan yang memberikan fokus untuk menyingkirkan aktiviti yang tidak memberikan nilai tambah dalam sesuatu proses (Womack dan Jones, 2003;Alsmadi dan Khan, 2010;Bortolotti et. al, 2016). Matlamat asas lean adalah untuk menghasilkan produk yang betul pada masa yang tepat dan pada harga yang pelanggan sanggup membayar (Sampson, 2004;Bortolotti, et. al, 2015) dengan menggunakan sumber sedia ada. ...
Article
AbstrakSistem penyampaian perkhidmatan yang cekap adalah menjadi keutamaan dalam persekitaran ekonomiyang sentiasa berubah. Berdasarkan kepada sorotan literatur, amalan perkhidmatan lean boleh diukurmelalui sepuluh elemen – pelan pengenalpastian pembaziran, orientasi tarik, pembangunan dan rekabentuk perkhidmatan baru, kepelbagaian fungsi sumber manusia, penggunaan teknologi maklumat,keseragaman tugas, penglibatan pelanggan, hubungan aktiviti hadapan dan belakang syarikat,kepelbagaian perkhidmatan yang ditawarkan dan susun atur perkhidmatan lean. Namun begitu, dalamsektor perkhidmatan PKS kajian masih kurang dijalankan walaupun pelaksanaannya didapati mampumeningkatkan prestasi. Oleh itu, kertas kerangka konseptual ini memberikan tumpuan kepada amalanperkhidmatan lean yang dilaksanakan oleh syarikat PKS dan hubungannya dengan prestasi. AbstractAn efficient service delivery system is a priority in the rapidly changing economics environment. Based onliterature review, ten elements have been identified as a driver to the success of lean services implementation– value stream mapping, pull oriented, design and development of new services, multifunctional of humanresource, utilisation of information technology, standardization of work, customer involvement, relationbetween front and back of organization activities, provide a wide range of services and lean servicesflow. However, studies in this field are still lacking, particularly in the SME’s service sector. Therefore,this conceptual framework focuses on lean service practices adopted by SME’s and its relationship withperformance.
... Operational performance (OP) was operationalised as a second-order latent construct with four first-order subdimensions, namely quality, delivery, flexibility and cost. These are the four most widely accepted subdimensions of OP (Bortolotti et al. 2015;Shou et al. 2018b;Wiengarten et al. 2019). OP is operationalised as a formative multi-dimensional construct according to the rules proposed by MacKenzie, Podsakoff, and Podsakoff (2011). ...
Article
Manufacturing firms have increasingly adopted global sourcing and local sourcing simultaneously to acquire competitive advantages, leading to diverse configurations of sourcing practices. Although prior studies have explored the distinct impact of individual sourcing practices, few studies investigate the configuration of multiple sourcing practices. Using the data from an international survey, this study identifies the empirical taxonomy of sourcing practices from the geographical perspective by cluster analysis and investigates the fit between the firm’s sourcing configuration and design-manufacturing-service (DMS) capabilities by profile deviation analysis. The results reveal three types of manufacturing firms with distinct configuration of sourcing practices. Moreover, this study highlights the significant effects of the fit between sourcing configuration and DMS capabilities on firm performance. This study contributes to the sourcing literature by not only finding three typical sourcing configurations but also recognising the ideal fit for achieving superior firm performance. It also provides important managerial insights for practitioners.
... A firm can achieve the desired improvement by identifying the different sources of waste at the levels of matter, time, process, and movement (Hopp and Spearman, 2004), for example there are lean practices like VSM which can be very effective in identifying waste in a process with a strong ability to identify bottlenecks (Baby and Jebadurai, 2018). With the success of lean practices in the automotive field, the concept was soon adopted in different companies around the world (Bortolotti et al., 2015). In the past years, many authors (McKone et al., 1999;Swink et al., 2005;Linderman et al., 2006;Shah and Ward, 2007) came up with a list of lean practices, which include the following: JIT, total quality management, total preventive maintenance, human resource management, pull, flow, low setup, controlled processes, productive maintenance, and involved employees. ...
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Many studies have been conducted on the improvement of operational performance through the implementation of lean manufacturing in the agri-food industries in developed countries. However, only a few have been carried out in Morocco. This approach is not just suitable for the automotive or other specific sectors of the discrete industry; it can now be adapted to other industries, provided that the characteristics of the field of application and the selection of best practices that suit them are taken into consideration. The purpose of this study is to determine the current state of the lean principles adopted by Moroccan food companies (small, medium, and large-sized enterprises). Nine food businesses were contacted, and interviews were conducted with their quality systems managers, operations managers, and chief executives using a structured questionnaire. Results reveal that companies are aware of the importance of continuous improvement tools. Moreover, they partially adopt lean practices, even if they do not call them “lean”. Such an encouraging environment, including the implementation of the quality approach and performance assessment tools (dashboard), can be a preamble to the implementation of a lean approach by these organizations. To the best of the authors’ knowledge, this study is the first to investigate the application of lean practices in Moroccan food companies.
... The LM paradigm has been adopted by many companies, particularly in Japan and elsewhere in the world, and has achieved rapid growth and relevant improvements [7], [8]. Lean thinking helps manufacturing companies to enhance their operational performance [9], [10], [11], allowing a reduced production cost and lead time [12], higher quality [13], and more flexibility [14]. The combination of LM with I4.0 helps companies in achieving Lean Automation (LA), which addresses for higher changeability and faster information streams for reacting to future market demands. ...
... Most of the lean practices relate to JIT (Tekez and Taşdeviren 2020), and particularly JIT production (Shah and Ward 2003;2007). Research showed that the adoption of practices such as the use of cellular manufacturing, small lots, Kanban and daily schedule adherence minimises work-in-process inventory and decreases manufacturing costs, thus leading to an elevated efficiency and delivery performance Danese, Romano, and Bortolotti 2012;Bortolotti et al. 2015). JIT production practices aim to streamline production flows, allowing to speed up activities (Mehra and Inman 1992). ...
Article
This paper investigates the antecedents of supply chain agility and its impact on firm's operational performance. Drawing upon dynamic capabilities perspective and contingency theory, the study argues that supply chain agility is a result of the combination of lean manufacturing and supply chain integration practices, and that supply chain agility is positively linked to firm's operational performance. Employing structural equation modelling, this research presents evidence that companies with agile supply chains perform better than companies focused only on implementing lean or supply chain integration practices; in this sense, the results show that supply chain agility fully mediates the relationships between lean/supply chain integration and firm's operational performance. This study contributes to the growing body of conceptual and empirical literature on agility by understanding the synergies between lean manufacturing, supply chain integration, supply chain agility and firm's operational performance. Theoretical and managerial implications are discussed and future research perspectives are provided.
... The most expressive results observed include cost reduction (28 articles), quality (27 articles), productivity and velocity through lead time or cycle time, both cited in 25 articles, realtime information (24 articles) and inventory (20 articles). Such results are suitable with the sand cone concept widely discussed in the 1990s since this model suggests that cost reduction is the result of cumulative performance combining different dimensions of performance, i.e. quality, delivery and flexibility (Bortolotti et al., 2015). However, these results also indicate that the CPs can offer benefits directly related to Toyota's house model, known by the acronym CQD referring to quality, cost and delivery (Okhovat et al., 2012;Mrugalska and Wyrwicka, 2017). ...
Purpose This paper aims to develop a conceptual framework of the implementation of the contact points (CPs) between Lean Six Sigma practices and Industry 4.0 technologies. Design/methodology/approach A systematic literature review was carried out based on two samples. A first sample containing 78 articles was analyzed through bibliometric indicators. After that, a second sample of 33 articles was analyzed in-depth according to research questions. Findings The conceptual framework involves 13 CPs between Lean Six Sigma (LSS) practices and I4.0 technologies (what), going through the technical requirements needed (how), categorized as information technology (IT), automation and competence requirements, to finally present the main results reported in the literature (why). Research limitations/implications This paper presents an innovative perspective of interactions between digital technologies and LSS practices, expanding knowledge about Digital LSS. Such perspective gives emphasis to the importance of technical requirements, such as communication and connectivity protocols, network topology, machine-to-machine communication (M2M), human–machine interfaces (HMI), as well as analytical and digital skills. Practical implications The managerial implications regarding the digitalization of LSS practices address the investments required for the acquisition and maintenance of cyber-physical systems (CPS). Moreover, there is a need for the development of skills so that operators can successfully use the new technologies in a context of continuous improvement. Originality/value This paper presents a conceptual framework covering 13 CPs between LSS practices and Industry 4.0 technologies, the technical requirements and the expected results. It is hoped that this framework can assist future research and operational excellence projects towards digitalization.
... Competitive priorities model. Source:(Bortolotti et al. 2015;Boyer and Lewis 2002). ...
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The paper aims to determine the role of the financial situation of production companies in the relationship between their environmental initiatives and their factors of competitiveness. The paper takes advantage of primary and secondary statistical data. The former were gathered using the diagnostic survey method, whereas the latter were obtained from the companies’ financial statements. For the analysis of the primary data, structural modeling was applied. The data from the financial statements served to classify enterprises according to their financial situation. The classification was carried out with the use of Mączyńska’s discriminant model. The main findings highlight that more positive effects of environmental initiatives, such as companies’ increased competitiveness, were observed in cases of enterprises with good financial situations. In addition, a weaker impact of pro-environmental initiatives on the increase in companies’ competitiveness was noted in enterprises in poor financial conditions. The results of this research may be potentially applied in those production companies which build their competitiveness based on activities aiming at the protection of the natural environment. They draw attention to the key factors of the competitiveness of enterprises, which are improved as a result of actions for the protection of the natural environment. The originality of the presented research lies in determining the role of the financial situation in the development of the relationship between environmental actions and company competitiveness.
Article
Visual performance management (VPM) is a bundle of practices where visual techniques are used to offer timely information to shop-floor employees about the performance of processes. We investigate whether VPM contributes to the beneficial effects of Lean, and if so, what the relationship is between VPM and other Lean practices. Thus, the study builds on and adds to the stream of research that tries to establish how the various practices associated with Lean depend on and reinforce each other. Based on the outcomes of a survey, we establish that VPM is positively related with operations improvement. This effect is not direct, but mediated by Lean practices such as just-in-time and quality management. We conclude, therefore, that VPM should be seen as an infrastructural practice that reinforces an organisation’s general fitness, and acting as an enabler for more dedicated Lean practices. In addition, we find that VPM positively moderates the effects of Lean practices, which supports the same conclusion.
Article
Purpose The purpose of this paper is to examine whether modular product design is an appropriate practice to improve manufacturers’ flexibility performance and cost performance as well as to evaluate whether combined effects of modular product design and delivery performance on flexibility performance and cost performance exist. Design/methodology/approach Structural equation modeling with moderating effects is used. Moderating effects allow an evaluation whether combined effects of modular product design and delivery performance exist. For the analysis, data from the international high-performance manufacturing survey are used. Findings Analysis results show a positive relationship between modular product design and cost performance, but do not show a significant moderating effect. Thus, no combined effect of modular product design and delivery performance exists in the data at hand. Research limitations/implications A potential limitation of this study is the cross-sectional nature of the analysis. In order to test for causal relationships or chronological sequences, longitudinal data are deemed more suitable. Practical implications The findings make improvement processes more predictable and help managers to overcome traditional trade-off situations, especially in terms of flexibility performance and cost performance. Manufacturers are still neglecting the implementation of complementary methods for achieving an increase in flexibility while maintaining efficiency. Originality/value This paper complements prior research on the effect of improvement practices on operational performance dimensions. It also takes an alternative approach to examine whether a beneficial implementation sequence of improvement practices can be assumed.
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El objetivo de este artículo es contrastar algunas hipótesis relacionadas con las prioridades competitivas (PC) y las áreas de decisión estratégica (ADE) en estrategia de manufactura (EM). Se identificó un conjunto ampliado de PC respecto a los estudios previos y se aporta evidencia empírica en el sector de alimentos. Para tal fin se realizó un estudio en 49 empresas en el Departamento de Caldas, Colombia. En las PC se identificó su importancia relativa y el enfoque de gestión dominante (cono de arena o trade-off). En cuanto a las ADE se evaluó la relación de su grado de desarrollo con el desempeño en las PC. Los resultados corroboran diversas posturas teóricas y demuestran que no existe un único camino para abordar la estrategia de manufactura.
Article
Most manufacturing systems contain a critical operation in their production where defects are more likely to occur. Letting the defective items pass through further stages of the process can result in a significant loss of time, materials, and money. Therefore, this study considers a manufacturing process with an early stage of quality control. Unlike most academic literature, the presented model considers the impact of the screening time on both screening costs and defect detection rate via different linear and nonlinear functions to derive a better understanding of those dependencies. We develop and analyze a mathematical model to determine the optimal lot size jointly with the optimal screening time during production. We run multiple numerical examples to illustrate the impact of various parameters of the model. Sensitivity analysis shows the robustness of the proposed model with respect to small changes in its parameters. Managerial insights are dealing with highly relevant trade-offs. Firstly, devoting more time to the initial screening increases the inspection cost but allows a greater proportion of defects to be detected. Secondly, discarding defective items at an early production stage decreases production costs at subsequent stages. In addition, the maximum gain is obtained when the relationships between the screening time and the cost, as well as the efficiency of the detection method, are well-understood. Our results also highlight the importance of careful estimation of the defect rate. A higher proportion of defective items increases the required screening time, lot size, and total cost.
Article
Purpose The purpose of this paper is to identify the originality value of the lean manufacturing (LM) studies carried out worldwide so far. Design/methodology/approach Four major publishers, namely, Emerald Online, Science Direct, Springer Link and Taylor and Francis provided the databases for a systematic literature review (SLR) of peer-reviewed journal articles in LM. In total, 211 articles published in 52 journals during 2005-2016 were collected. The affinity diagram was applied to group the originality value statements identified into logical themes. Findings The plethora of originality value statements identified in the literature are analytically presented. Furthermore, meaningful themes of the originality value of the LM studies are formulated. Research limitations/implications Some publishers might have been missed out in this SLR, given that it is based on only four academic publishers. Practical implications Identifying the originality value of the existing LM studies and presenting respective meaningful themes can help researchers and practitioners design their future research and implementation plans, respectively. Originality value The originality value of the LM studies is a subject which has not been reviewed in the literature previously.
Article
Purpose This study aims to investigate how radio frequency identification (RFID) is used and opinions about RFID in two world-leading logistics companies and four organisations in their supply network. Operations strategy was used to understand the sources of operations improvement and associated competitive advantage. However, the complexity of operations strategy hampers an evaluation of the benefits of RFID for logistics processes. We can evaluate RFID applied in logistics processes by thoroughly applying the theories of operations strategy. Design/methodology/approach Participants were recruited based on their roles and level of experience using non-probability purposive sampling. The findings were checked with participants to confirm interpretations and to ask confirming questions as necessary. Interviews were conducted as video chats. NVivo Pro was used for the fragmentation, classification, management and analysis of the primary and secondary data, allowing themes and relationships to emerge inductively. The literature was compared with the primary data. Findings The findings reinforce the argument that a firm can improve more than one performance objective at a time; show the relevance of technology and an operations performance objective; support the argument that top management strategies to implement technology should be aligned with the operations strategy and business aspirations. Research limitations/implications This research area would benefit from more detailed investigation to strengthen the arguments for the relationships between RFID capabilities and elements of operations strategy for logistics processes. The findings indicate that top management support of strategically aligned RFID projects will have the best chance of success if they create and leverage valuable data whilst addressing identified competitive priorities. Practical implications Smart connected devices, such as RFID, give firms access to big data, which can be used to develop long-term processes, to achieve competitive advantage and access new forms of economic value. RFID cumulatively influences the operations performance objectives of cost, quality, flexibility, speed, dependability and technology. Business strategies based on technology should align with operations strategy. Social implications The sharing of operational performance results, both before and after the implementation of RFID, will help to build learning within operations, increase the support of senior management and improve the performance of logistics processes with the associated benefits for society at large. Originality/value RFID is often evaluated in terms of theoretical technical or cost benefits. This research evaluates RFID by assessing and suggesting how it can contribute to operations strategy.
Article
Purpose The purpose of this study is to investigate whether the adoption of Lean manufacturing (LM) contributes towards the sustainability performance of small and medium-sized enterprises (SMEs) in India. Design/methodology/approach The study is based on a multi-case study approach conducted among five independent Indian manufacturing SMEs. The information from direct observation, structured questionnaire interviews with key persons and archival data are used to analyse and cross-check the relationship. An assessment tool, developed using the variables collected from the previous works, is used to measure the relationship. Findings The study provides a solid basis for the contribution and positive influence of LM towards the sustainability performance in SMEs. The manufacturing SMEs that have adopted Lean principles and practices are benefited more towards their economic, environmental and social sustainability performances, irrespective of their operational characteristics such as firm size and final product. Research limitations/implications This is a limited study conducted in a particular state in India by selecting only five independent case companies with divergent operational characteristics such as size of the firms, product and manufacturing process. Originality/value The study contributes by authorising the contribution of LM towards sustainability performance of SMEs. The findings will inspire academic community and industrial practitioners to expend for the adoption of Lean principles looking forward the sustainable development of the SMEs.
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Purpose This study provides a systematic review of the literature within the manufacturing strategy (MS) domain focusing on the congruence aspect of different strategic functions to determine the state-of-the-art research progression and the trend of publications. Design/methodology/approach We have adopted a five-stage review methodology consisting - 1) Article Identification; 2) Inclusion/Exclusion; 3) Review of the Articles; 4) Literature Analysis; 5) Future research directions. 121 articles focusing on congruence aspects and specific to the MS domain are identified and reviewed. Bibliometric analysis comprising keyword co-occurrence using a VOSviewer© software, and citation analysis is performed. Further, content analysis is carried out to categorize articles based on the type of research methodology, type of tool/method used, and aspects considered for congruence study. Findings Based on the research gaps identified in the existing literature on the congruence aspect within the MS domain, this study offers future research directions. Majorly, the work found is an empirical survey. Literature scants to develop a framework that helps to quantify the congruence between two strategic functions. Research limitations/implications This study facilitates researchers and practitioners to understand the congruence between different strategic aspects studied in the literature and the level of fit between them. Further, the identified research directions can encourage researchers and practitioners to conceive novel approaches to conduct future works on congruence theme. Originality/value The unicity of the current review lies in its theme, i.e. congruence aspect within MS. To the best of author's knowledge, no comparable study is observed to review the congruence aspect in any other domain.
Article
A debated issue in the literature regards whether the effect of employee involvement for continuous improvement on organisational outcomes differs in contexts with different degrees of production repetitiveness. Divergent positions can be found both in the OM and HRM field. This paper aims at investigating the direct and indirect effect (through Just In Time (JIT) and Total Quality Management (TQM)) of employee involvement for continuous improvement on organisational outcomes (quality, cost, responsiveness and employee relations), and the moderation of production repetitiveness on both these effects. Survey data analyses support that employee involvement for continuous improvement has a significant indirect effect on organisational outcomes through JIT and TQM which is not moderated by production repetitiveness. Instead, lowering production repetitiveness, the direct impact of employee involvement decreases and could become even non-significant. These results contribute to OM and HRM literatures, by emphasising the need to distinguish between direct and indirect effect when studying the role of production repetitiveness as a contingency. Overall, this research contributes to a better understanding of the mechanisms through which employee involvement for continuous improvement affect organisational outcomes.
Article
Purpose The purpose of this paper is to investigate how just-in-time (JIT)-related job demands, problem-solving job demands and soft lean practices (SLPs) jointly influence employee well-being in terms of work engagement and exhaustion. Design/methodology/approach Based on the job demands-resources model, lean-related job characteristics were classified as resources or demands, and a set of hypotheses was developed to test their effect on work engagement and exhaustion, including the potential interaction between job resources and demands. The hypotheses were tested using moderated hierarchical regression and structural equation modelling, based on data from 138 workers. Findings SLPs act as job resources in a lean company, increasing work engagement and reducing exhaustion. Conversely, JIT-related job demands act as a hindrance, reducing work engagement and increasing exhaustion. However, SLPs can reduce the effect of JIT-related job demands on exhaustion, and JIT-related job demands may enhance the positive effects of SLPs on work engagement. Research limitations/implications The study provides no conclusive evidence on the hypothesized role of problem-solving as a challenge job demand. Practical implications The results can guide practitioners’ understanding of how to implement lean without harm to employee well-being. Originality/value By employing a well-grounded psychological model to test the link between lean and well-being, the study finds quantitative support for: the buffering effect of SLPs on exhaustion caused by JIT-related job demands, and for the role of JIT as a hindrance. These novel findings have no precedent in previous survey-based research. In addition, it reveals the importance of studying SLPs at an individual level, as what matters is the extent to which workers perceive SLPs as useful and supportive.
Article
This study presents empirical evidence that the increased enabling use of standard variable costing (SVC) increases performance, and decreases the level of goal-incongruent behaviour in a lean production context. This enabling use is examined by the application of the framework of enabling formalization, characterized by; repair, internal transparency, global transparency, and flexibility. This study finds they have a joint, complementarity, effect on performance and lean-congruent behaviour using a second-order structural equation model applied to a survey from inside two case companies. These results are combined with qualitative evidence. This paper helps practitioners to understand the consequences (goal incongruent behaviour and performance) of less enabling use of SVC. Practitioners can also be guided by the enabling framework questions, we developed, to gauge how well their costing models is fitting lean production in their companies. Lastly, it is concluded that SVC can be used in an enabling way in lean production. This feeds into the ongoing discussion on which costing models that fit with lean production.
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This study analyses data from articles published from 2010 to 2019, which include empirical or theoretical-practical implications related to Human Resource Management (HRM) perspectives in a Lean environment. The main aim of this paper is to define Lean Management (LM) in light of HRM and identify HR themes. A Systematic Literature Review (SLR) of HRM in a Lean environment was carried out, based on the four well-known publishers, namely Emerald Online, Science Direct, Springer Link, and Taylor and Francis. In total, 180 relative papers published in 48 journals were collected. The affinity and the fishbone diagram were applied in order to group the practical implications of the studies into logical themes and sub-themes. Additionally, the Pareto diagram was used to prioritise the revealed themes. A high interest in soft-Lean practices has emerged in the last few decades. The practical implications of the reviewed articles have been grouped into eleven themes, revealing various aspects of HR involved in Lean management. Specifically, they concern Training, Leadership, Culture, Participation, HR department role, Commitment, Job Design, Teamwork, Communication, Impact on employee and Resistance tο change.
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This study analyses the importance of lean supply chain strategy (SCS) and agile SCS in Indonesia’s bottled water industries, influencing the financial performance through mediating variables. Using the resource-based view (RBV) theory and relational view to investigate these relations, a series of hypotheses are developed, considering strategic supplier integration (SSI), strategic customer integration (SCI) as a mediator variable. The study analyses structural equation modeling (SEM) derived by observed data from 139 firms in Indonesia. The research analyzes how lean SCS and agility SCS on financial performance is affected by SSI and SCI. The paper supports the literature on lean SCS and agile SCS by theoretically elucidating and empirically revealing how SSI and SCI collaborating affect a positive relationship between lean SCS & agile SCS and financial performance.
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Purpose Existing studies suggested that there is a nonlinear relationship between lean production adoption and organizational performance. Lean production adoption is a gradual process, and the application status of lean tools will affect enterprise performance. The existing literature has insufficiently explored the nonlinear relationship of the lean tools application status on operational performance and environmental performance using the same theoretical framework. A combination approach of interpretative structural modeling (ISM) and Bayesian networks was proposed in this paper, which was used to analyze the complex relationship between lean tools application status with operational and environmental performance. Design/methodology/approach ISM was used to analyze the inter-relationship of 17 lean tools identified from the lean literature and construct the lean tools structure model providing reference for building Bayesian network. By calculating the prior and conditional probabilities within the lean tools and between the lean tools with the operational and environmental performance, a Bayesian simulation model was constructed and used to analyze the performance outcomes under different lean tools application status. Findings The performance simulation result – representing by the probability of three performance levels as good, average and poor – shows inconsistent changes with the changing of lean tools application status. By comparing the changes of operational performance and environmental performance, it can be found that environmental performance is less sensitive to the change of lean tools application status than operational performance. Originality/value Using the integrated ISM–Bayesian network approach, the results indicated a nonlinear relationship between lean tools with operational and environmental performance and provided a reference for the exploration of the nonlinear relationship between lean tools and performance. This research further calls for exploring the S-curve relationship between lean tools and environmental performance.
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Academic literature on Lean Manufacturing (LM) is widely available. However, due to its fragmentation, the contribution of LM from practical and academic perspectives is controversial. This paper establishes the practical implications of LM studies carried out worldwide and identifies novel research streams. A Systematic Literature Review (SLR) of peer-reviewed journal articles was conducted. A total of 403 articles published in 62 journals during 2010–2019 were collected from four major management science publishers. An ‘affinity diagram’ was applied to organise the data into natural and logical themes. Conceptual frameworks concerning LM practical implications and future research agenda were formulated. Meaningful themes of LM practical implications and future research suggestions were revealed and classified into two categories. In category one pertaining to the internal nature of LM, themes related to the pre-implementation, implementation and post-implementation phases of LM were identified. In category two pertaining to the external nature of LM, themes related to the country in which the companies operate, the diverse managerial systems available, and the methodological research approach were identified. The main themes supported in the literature by most references were determined. Finally, respective statements concerning the practical implications of LM and the future research agenda are analytically presented.
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Purpose This paper aims to study the relations between lean operations, lean principles in finance functions and the roles of finance functions. Design/methodology/approach The paper uses structural equation modeling to analyze data from 408 different firms in the Danish production and services sectors. A dyadic approach is applied, as a sub-sample of 107 chief operating officers in the responding firms is used to investigate the construct validity, reliability and average deviation index of the instrument measuring the roles of finance functions. Findings The paper finds that lean-operation firms emphasize four different yet interdependent roles of finance functions. The paper also finds that lean operation leads to firms’ finance functions adopting lean principles. Research limitations/implications This paper characterizes lean-operation firms as contextually ambidextrous to predict relations between lean operation and roles of finance functions. The paper expands prior case study findings on the roles of finance functions in lean-operation firms, and the findings of the paper underline that finance functions continue to play an important role in these firms. Practical implications Decision-makers in lean-operation firms should not be hesitant with respect to integrating finance function workers into the lean operation. Furthermore, decision-makers should understand that a balanced emphasis of the roles of finance functions is necessary to avoid overemphasizing exploitation at the expense of exploration, or vice versa. Originality/value To the best of the authors’ knowledge, this is the first paper to provide large-scale evidence of the roles of finance functions in lean-operation firms and to show that lean principles diffuse to finance functions. Furthermore, the paper introduces a new instrument for measuring finance function roles, based on the competing values framework.
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Purpose A rich agenda for future research in the field of Lean Manufacturing (LM) is available in the academic literature. The purpose of this paper is to determine the LM future research methodologies suggested in the literature and to classify them into themes. Classifying these themes into broad categories is also an aim of the present study. Design/methodology/approach For the purpose of the present study, a systematic literature review (SLR) of peer reviewed journal articles in LM was conducted. A total of 214 articles published in 46 journals during 2010–2020 were collected from four major management science publishers, namely, Emerald Online, Elsevier/Science Direct, Springer Link and Taylor and Francis. To organize the qualitative data into meaningful themes and these themes into broad categories, the quality tool “affinity diagram” was applied. Findings The review of LM articles that are increasing over time reveals the “vital few” academic journals, which have published most of the sample articles. The plethora of the suggested future research methodologies are analytically presented and classified into meaningful themes, namely, the size of the research sample and its composition, several types of study (other than surveys), longitudinal studies, applying advanced statistical analysis and (mathematical) modeling techniques, objective, real and quantitative data, surveys, mixed/multiple research studies, reliability and validity analysis, using computer-aided technology for data collection and processing and research collaborations. These themes in turn are classified into broad categories, namely, study, data and statistical analysis and modeling. Research limitations/implications This SLR is not comprehensive because the number of the databases searched is restricted to four. Moreover, the literature review is limited to peer reviewed journal articles regarding Lean only in the manufacturing sector, while the subject reviewed is limited to the future research methodologies. The subjectivity of classifying the large number of the future research methodologies into themes and these themes into broad categories is also a limitation of the present SLR. Based on these limitations, future literature review studies can be carried out. Practical implications Researchers can be analytically informed about the future research methodologies suggested in the literature and their respective key themes and broad categories, to design original research studies of high academic and practical value. Originality/value This study goes beyond previous SLRs on LM by presenting analytically the plethora of the future research methodologies suggested in the literature as well as by identifying natural patterns or groupings of these methodologies.
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Green supply chain management (GSCM) is an initiative that is growing in popularity across organizations. The e-commerce industry, which is currently growing rapidly, has triggered the activities of the logistics industry to also grow and have an impact on the environment. This study aims to study the role of lean practices, innovation management strategies and environmental orientation on organizational sustainability through green supply chain management in the e-commerce industry in Indonesia. This study uses a sample of 115 respondents with managerial level from the four largest e-commerce companies in Indonesia with the assumption that a population of 362 people is processed using Partial Least Square-Structural Equation Modeling (PLS-SEM). The results of this study indicate that directly, innovation performance has no significant effect on green supply chain (0.309 < 1.65), lean practices have a significant and positive effect on green supply chain (2.497 > 1.65), environmental orientation has a significant and positive effect on green supply chain (2.757 < 1.65), and green supply chain have a significant and positive effect on sustainability performance (10.393 < 1.65). Indirectly, it can be seen that innovation performance has no significant effect on sustainable performance through green supply chains (0.298 < 1.65), lean practices have a significant and positive effect on sustainable performance through green supply chains (2.123 > 1.65), and orientation the environment has a significant and positive effect on sustainable performance through green supply chains (2.376 < 1.65) in the e-commerce industry in Indonesia. Bahasa Indonesia Abstrak: Manajemen rantai pasokan hijau (GSCM) adalah inisiatif yang semakin populer di berbagai organisasi. Industri e-commerce yang saat ini sedang bertumbuh pesat memicu aktivitas industri logistik yang juga bertumbuh dan turut memberi dampak terhadap lingkungan. Penelitian ini bertujuan untuk mempelajari peran dari praktik lean, strategi manajemen inovasi dan orientasi lingkungan pada keberlanjutan organisasi melalui manajemen rantai pasok hijau pada industri e-commerce di Indonesia. Penelitian ini menggunakan sampel 115 responden di level manajerial dari empat perusahaan e-commerce terbesar di Indonesia dengan asumsi jumlah populasi 362 orang yang diolah dengan piranti lunak Partial Least Square-Structural Equation Modeling (PLS-SEM). Hasil penelitian ini menunjukkan bahwa secara langsung, kinerja inovasi tidak berpengaruh signifikan terhadap rantai pasok hijau (0,309 < 1,65), praktik lean berpengaruh signifikan dan positif terhadap rantai pasok hijau (2,497 > 1,65), orientasi lingkungan berpengaruh signifikan dan positif terhadap rantai pasok hijau (2,757 < 1,65), dan rantai pasok hijau berpengaruh signifikan dan positif terhadap kinerja keberlanjutan (10,393 < 1,65). Secara tidak langsung, dapat dilihat bahwa kinerja inovasi tidak berpengaruh signifikan terhadap kinerja berkelanjutan melalui rantai pasok hijau (0,298 < 1,65), praktik lean berpengaruh signifikan dan positif terhadap kinerja berkelanjutan melalui rantai pasok hijau (2,123 > 1,65), dan orientasi lingkungan berpengaruh signifikan dan positif terhadap kinerja berkelanjutan melalui rantai pasok hijau (2,376 < 1,65) pada industri e-commerce di Indonesia.
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Initiatives in managing manufacturing companies have been streaming in from all parts of the world. A new set of customerfocused principles helps managers to make sense of them and move confidently into the future.
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Purpose ‐ The purpose of this paper is to empirically explore the relationships among supply chain risks (SCRs), supply chain integration (SCI), and company performance in a global context. Design/methodology/approach ‐ This study is based on the High Performance Manufacturing (HPM) project database collected from 317 manufacturing plants in ten countries and three representative industries (machinery, electronics and transportation components), using structural equation modeling (SEM) methods. Findings ‐ Results show that SCRs, especially supply delivery risk (SDR), are negatively related to SCI. There is a contingent relationship between SCI and performance. Different types of SCI play different roles in improving different types of company performance. Supplier, internal, and customer integration are the most important drivers for schedule attainment, competitive performance, and customer satisfaction, respectively. Originality/value ‐ This study is one of the first empirical studies to explore how SCRs affect SCI. It also expands current SCI research by linking three dimensions of SCI with three dimensions of company performance, using the global database collected from HPM companies in ten countries.
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This study extends quality management from an individual company perspective to a supply chain perspective. We propose a concept of supply chain quality integration (SCQI) that consists of internal, supplier, and customer integration for quality improvement, and develop a model that specifies the relationships among competitive hostility, the organization-wide approach to quality, three types of SCQI, and quality-related performance. We test the model using data collected from 291 high-performance manufacturing plants from ten countries. The results indicate that competitive hostility has a positive effect on the organization-wide approach to quality, and that both have positive effects on SCQI. In addition, internal quality integration significantly enhances external quality integration with both suppliers and customers. Further, internal quality integration significantly improves all quality-related performance (i.e., product quality, cost, delivery, and flexibility), and both supplier and customer quality integration significantly improve cost performance. Whereas customer quality integration significantly improves delivery performance and supplier quality integration significantly improves quality performance, only internal quality integration can improve flexibility performance. The findings reveal how different types of SCQI are related to quality-related performance and highlight internal quality integration as a core strategic resource for quality improvement. As such, they provide important managerial insights for supply chain quality managers to improve quality-related performance.
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Many companies leave risk management and business continuity to security professionals, business continuity planners or insurance professionals. However, the authors argue, building a resilient enterprise should be a strategic initiative that changes the way a company operates and increases its competitiveness. Reducing vulnerability means both reducing the likelihood of a disruption and increasing resilience. Resilience, in turn, can be achieved by either creating redundancy or increasing flexibility. Redundancy is the familiar concept of keeping some resources in reserve to be used in case of a disruption. The most common forms of redundancy are safety stock, the deliberate use of multiple suppliers even when the secondary suppliers have higher costs, and deliberately low capacity utilization rates. Although necessary to some degree, redundancy represents pure cost with no return except in the eventuality of disruption. The authors contend that significantly more leverage, not to mention operational advantages, can be achieved by making supply chains flexible. Flexibility requires building in organic capabilities that can sense threats and respond to them quickly. Drawing on ongoing research at the MIT Center for Transportation and Logistics involving detailed studies of dozens of cases of corporate disruption and response, the authors describe how resilient companies build flexibility into each of five essential supply chain elements: the supplier, conversion process, distribution channels, control systems and underlying corporate culture. Case examples of Land Rover, Aisin Seiki Co. (a supplier to Toyota), United Parcel Service, Dell, Baxter International, DHL and Nokia, among others, are offered to illustrate how building flexibility in these supply chain elements not only bolsters the resilience of an organization but also creates a competitive advantage in the marketplace.
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Although much has been written about TQM, little attention has been paid to the potential effects of contextual factors on TQM and TQM–performance relationships. The use of organizational theory to formulate propositions regarding the effects of such factors is especially scarce in the TQM literature. This study uses institutional theory and contingency theory as the basis to test a number of such propositions. First, a model of TQM and organizational performance is developed. Then using survey data, the effects of five contextual factors – three institutional factors and two contingency factors – on the implementation of TQM practices and on the impact of TQM on key organizational performance measures are analyzed within a TQM–performance relationships model framework. The three institutional factors include TQM implementation, ISO 9000 registration, and country of origin, and the two contingency factors include company size and scope of operations. The results show that the implementation of all TQM practices is similar across subgroups of companies within each contextual factor. In addition, the effects of TQM on four performance measures, as well as the relationships among these measures, are generally similar across subgroup companies. Thus, for the five contextual factors analyzed, the overall findings do not provide support for the argument that TQM and TQM–performance relationships are context-dependent. The implications of the study for managers and researchers, as well as study limitations, are also discussed.
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Case and industry studies have increased our understanding of time‐base manufacturing and focused our attention on its key component practices. Despite important contributions by Blackburn (1991) and Stalk and Hout (1990), we lack a clear definition of time‐based manufacturing and its relationship to Just‐in‐time (JIT). This study proposes a framework for research on time‐based manufacturing, reports on the development of a set of seven instruments for measuring the key practices, and tests relationships among these practices. The instruments are valid, reliable, and generalizable across industries and firm size. Tests of the structural model confirm Monden's (1983) notion that shop‐floor employee involvement leads to improved manufacturing practices which, in turn, lead to pull production.
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Although Hayes and Wheelwright originally coined the term ‘world class manufacturing’, the global manufacturing environment has undergone many changes since their work. In the study, we seek to determine whether the practices which they described are still relevant in today's manufacturing environment. We also look at their list of competitive priorities and examine whether they function as tradeoffs, as Hayes and Wheelwright suggested, or whether there are synergies between them. The World Class Manufacturing (WCM) Project data set, comprised of plants in the machinery, electronics and transportation components industries, was used to construct measures to correspond to the practices and performance measures suggested by Hayes and Wheelwright. The results indicated that Hayes and Wheelwright's practices were related to competitive performance, and that the addition of new manufacturing practices resulted in further improvements in competitive performance. Thus, Hayes and Wheelwright's practices are robust and have provided a foundation for the use of new manufacturing practices. In addition, there was strong support for the notion that the use of world class manufacturing practices, alone and in combination with new manufacturing practices, leads to the achievement of simultaneous competitive advantages, supporting the synergies perspective.
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Design management and process management are two important elements of total quality management (TQM) implementation. They are drastically different in their targets of improvement, visibility, and techniques. In this paper, we establish a framework for identifying the synergistic linkages of design and process management to the operational quality outcomes during the manufacturing process (internal quality) and upon the field usage of the products (external quality). Through a study of quality practices in 418 manufacturing plants from multiple industries, we empirically demonstrate that both design and process management efforts have an equal positive impact on internal quality outcomes such as scrap, rework, defects, performance, and external quality outcomes such as complaints, warranty, litigation, market share. A detailed contingency analysis shows that the proposed model of synergies between design and process management holds true for large and small firms; for firms with different levels of TQM experience; and in different industries with varying levels of competition, logistical complexity of production, or production process characteristics. Finally, the results also suggest that organizational learning enables mature TQM firms to implement both design and process efforts more rigorously and their synergy helps these firms to attain better quality outcomes. These findings indicate that, to attain superior quality outcomes, firms need to balance their design and process management efforts and persevere with long‐term implementation of these efforts. Because the study spans all of the manufacturing sectors (SIC 20 through 39), these conclusions should help firms in any industry revisit their priorities in terms of the relative efforts in design management and process management.
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Despite abundant information explaining the expected benefits from successful just‐in‐time (JIT) implementation, only tenuous validation of the linkage between financial performance and JIT exists. Managers act rationally in implementing JIT if they are convinced that JIT enhances firm performance. From both a cross‐sectional and longitudinal perspective, this survey study of 253 US manufacturing firms finds significant statistical relationships between measures of profitability and the degree of specific JIT practices used. The evidence provides empirical support to the premise that firms that implement and maintain JIT manufacturing systems will reap sustainable rewards as measured by improved financial performance.
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In this paper we investigate the relationship between Total Productive Maintenance (TPM) and manufacturing performance (MP) through Structural Equation Modeling (SEM). We find that TPM has a positive and significant relationship with low cost (as measured by higher inventory turns), high levels of quality (as measured by higher levels of conformance to specifications), and strong delivery performance (as measured by higher percentage of on‐time deliveries and by faster speeds of delivery). We also find that the relationship between TPM and MP can be explained by both direct and indirect relationships. In particular, there is a significant and positive indirect relationship between TPM and MP through Just‐In‐Time (JIT) practices.
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The field of operations management has been criticized for the inadequacy of its theory. We suggest that this criticism may be too harsh, and further, that many building blocks of theory are prevalent in the body of existing research. This paper has two goals. The first is to suggest that careful organization of our thinking can lead to useful, productive theories in operations management that demonstrate all the hallmarks of the familiar theories of natural science. We discuss the nature of scientific inquiry in general terms, and examine the implications for what should be expected from theory in operations management. Our second goal is to illustrate through examples how such theories and their related laws might be developed. Two theories are proposed: the Theory of Swift, Even Flow, and the Theory of Performance Frontiers. The Theory of Swift, Even Flow addresses the phenomenon of cross‐factory productivity differences. The Theory of Performance Frontiers addresses the multiple dimensions of factory performance and seeks to unify prior statements regarding cumulative capabilities and trade‐offs. Implications drawn from the theories are discussed and concluding remarks suggest the advantages of future theory development and test.
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Management literature has suggested that contextual factors may present strong inertial forces within organizations that inhibit implementations that appear technically rational [R.R. Nelson, S.G. Winter, An Evolutionary Theory of Economic Change, Harvard University Press, Cambridge, MA, 1982]. This paper examines the effects of three contextual factors, plant size, plant age and unionization status, on the likelihood of implementing 22 manufacturing practices that are key facets of lean production systems. Further, we postulate four “bundles” of inter‐related and internally consistent practices; these are just‐in‐time (JIT), total quality management (TQM), total preventive maintenance (TPM), and human resource management (HRM). We empirically validate our bundles and investigate their effects on operational performance. The study sample uses data from IndustryWeek’s Census of Manufacturers. The evidence provides strong support for the influence of plant size on lean implementation, whereas the influence of unionization and plant age is less pervasive than conventional wisdom suggests. The results also indicate that lean bundles contribute substantially to the operating performance of plants, and explain about 23% of the variation in operational performance after accounting for the effects of industry and contextual factors.
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This research uses three in‐depth case studies to establish the drivers and sources of volume flexibility. We find that in all three firms, there is significant concern among managers for gaining competitiveness through volume flexibility. We also find that there are several avenues for developing a volume flexible response and that deployment of these tactics is dependent on the availability of resources and systems. To verify some of these propositions we report on the outcomes of a field survey that measures the importance firms place on volume flexibility as well as the corresponding actions they take to remain volume flexible. Our critical finding is that short‐ and long‐term sources of volume flexibility have a positive, albeit differential, impact on a firm’s performance.
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Research on Total Quality Management (TQM), Just‐in‐Time (JIT) and Total Productive Maintenance (TPM) generally investigates the implementation and impact of these manufacturing programs in isolation. However, many researchers believe and argue conceptually the value of understanding the joint implementation and effect of manufacturing programs. This study investigates the practices of the three programs simultaneously. We find that there is evidence supporting the compatibility of the practices in these programs and that manufacturing performance is associated with the level of implementation of both socially‐ and technically‐oriented practices of the three programs.
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The paper examines the short‐term capacity interface between marketing and operations, i.e. marketing–operations interface (MOI) in relation to customer value. A field study involving 10 firms in the printed circuit board (PCB) manufacturing industry was used to develop a conceptual framework and measures of the constructs. Subsequently, a 180‐plant PCB industry survey was used to test the model, finding support for the proposed relationship between MOI effectiveness and customer value.
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This study uses a causal modelling methodology to examine competing methodological and theoretical hypotheses concerning the effects of product quality on direct costs and business unit return on investment (ROI). Results show that the PIMS’ measures under study exhibit high reliability across all samples. The findings fail to support the widely held view that a high relative quality position is incompatible with achieving a low relative cost position in an industry.
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Testing and cross-validation of theories and paradigms are necessary to advance the field of manufacturing strategy. When the findings of one study are also obtained in other studies, using entirely different databases, we become more confident in the results. Replication alleviates concerns about spurious results and is one motivation for this study. We examine aspects of the tradeoffs concept, production competence paradigm, and a manufacturing strategy taxonomy framework. In regard to the tradeoffs concept, we found evidence of tradeoffs between some, but certainly not all, manufacturing capabilities of quality, cost, delivery, and customization. The relationships get sharper when controlling for process choice. For example, the tradeoff between cost and customization is particularly strong between plants that have different process choices. We find that such tradeoffs can change, or even disappear, however, once the process choice is in place. With respect to the production competence paradigm, our analysis shows a statistically significant correlation between production competence and operations performance in batch shops, but not in plants with other process choices. Finally, using variables similar to those of Miller and Roth, our data produced three similar clusters even though their unit of analysis was much more macro than ours. Controlling for process choice is consistent with the current manufacturing strategy literature that emphasizes dynamic development of capabilities within the context of path dependencies. A major argument of this strand of research is that operations decisions not only affect current capabilities, but also set the framework for development of capabilities in the future. That being the case, controlling for process choice (or other factors such as industry or markets) should contribute to the understanding of capability-development paths adopted by different manufacturing plants. In short, we found at least partial support for each of the theories examined here, even though the theories seem on the surface to be contradictory and mutually exclusive. Controlling for process choice or other measures of dependency goes a long way in uncovering consistency across different theories and empirical studies in operations management.
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This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.
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In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
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In light of the widespread adoption of advanced production concepts over the last decade, the traditional concern of manufacturing strategy - linking manufacturing structure and infrastructure to business strategy - has seemed less powerful in explaining competitive success or improving competitive performance. Companies that have introduced just-in-time, total quality management, continuous improvement, design for manufacturability, or concurrent engineering appear to have reaped the benefits of quality, dependability, flexibility, high variety, and low cost. This raises an important question: is manufacturing strategy in its traditional vintage passé? In this paper, I first explore the logic behind the traditional prescriptions in manufacturing strategy using a classic case on Searle's Medical Instruments Group. Then, using the term advanced manufacturing system (AMS) as shorthand for best practice in production, design and engineering, and logistics, I revisit the Searle case as taught in 1995 to illustrate the logic of the AMS. Finally, I offer a framework for synthesis, arguing that manufacturing's true competitive power lies in integrating the capabilities of an AMS with strategic management of manufacturing.
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There is an ongoing debate as to whether the strategies of differentiation and cost leadership are mutually exclusive or whether they can be achieved simultaneously. Using transaction cost theory, a model of business-level strategy is developed that reconciles these divergent perspectives. It is argued that when transaction costs, production costs, and revenue are considered within the calculus of a single model, the trade-offs a firm faces when choosing a business strategy become clearer.
Book
All kinds of processes - those that make things or deliver services or operate companies - can be made more productive, and society's continued well-being requires it. This book is for all those with a stake in improving how companies run. It introduces the concept of 'swift, even flow' and explains how that concept stands behind popular business tools such as 'lean' principles and Six Sigma. More than that, it shows how swift, even flow can lead to deep, strategic insights and fresh ideas. The book uses many examples, both contemporary and historic, and 16 case studies from all sorts of business situations to demonstrate how swift, even flow can be applied. Services and manufacturing, supply chains and individual operations, product development and outsourcing, strategy and tactics, hourly workers and top level executives - all benefit from this fundamental re-thinking of what it takes to become productive.
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Manufacturing strategy is increasingly recognized by academics as essential to achieving sustainable competitive advantage. It is important to distinguish clearly between internal competences and external measures of competitiveness; ensuring a proper link between the two is a critical factor for success. This article suggests that: competences don't have to hurt each other; performance relative to the competition is what counts; each product has to meet some minimum requirements to have a chance of selling; and these requirements are continually becoming tougher. The article sketches a scenario where even superior manufacturing may no longer be a source of competitive advantage, but simply a ticket to the ball game.
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A meta-analysis of single-item measures of overall job satisfaction (28 correlations from 17 studies with 7,682 people) found an average uncorrected correlation of .63 (SD = .09) with scale measures of overall job satisfaction. The overall mean correlation (corrected only for reliability) is .67 (SD = .08), and it is moderated by the type of measurement scale used. The mean corrected correlation for the best group of scale measures (8 correlations, 1,735 people) is .72 (SD = .05). The correction for attenuation formula was used to estimate the minimum level of reliability for a single-item measure. These estimates range from .45 to .69, depending on the assumptions made.
Article
A meta-analysis of single-item measures of overall job satisfaction (28 correlations from 17 studies with 7,682 people) found an average uncorrected correlation of .63 (SD = .09) with scale measures of overall job satisfaction. The overall mean correlation (corrected only for reliability) is .67 (SD = .08), and it is moderated by the type of measurement scale used. The mean corrected correlation for the best group of scale measures (8 correlations, 1,735 people) is .72 (SD = .05). The correction for attenuation formula was used to estimate the minimum level of reliability for a single-item measure. These estimates range from .45 to .69, depending on the assumptions made.
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Supplier integration is considered a key managerial strategy for improving buyer performance. This study adopts a configurational approach to supplier integration, based on the interaction and complementarity between supply chain management practices. In this perspective, this study explores the impact of supplier integration and measures aimed at creating a fast supply network structure on buyer performance. This research also attempts to ascertain whether these practices can exert a synergic effect. After examining data from a sample of 186 manufacturing plants, we can conclude that while taken singly supplier integration and fast supply network structure practices have a markedly positive effect on the performance goals considered (i.e., efficiency, schedule attainment and flexibility); in addition, they interact to produce an additional synergic effect on efficiency and schedule attainment. The analyses also reveal that investing in FSNS or SI initiatives alone can be risky. On one hand, when companies fail to make any effort to structure their supply network in order to achieve fast lead times, the impact of supplier integration on efficiency and schedule attainment may be hindered and, in extreme cases, supplier integration might even have no impact at all. On the other hand, investing only in fast supply network structure initiatives, without striving to achieve an adequate level of supplier integration might well be useless: indeed, even detrimental to any improvement in performance. These findings provide useful guidelines for managers who must decide how to combine supplier integration and fast supply network structure initiatives in order to improve or maximize performance.
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The progression of capabilities according to the sand cone model is a commonly accepted notion in production and operations management. However, this progression, which implies development over time, has only been tested with cross-sectional data from single time periods. In this paper, we investigate competitive capability progression (CCP) using a repeated cross-sectional design, approximating the temporal dimension inherent in the concept. The contributions of our paper are threefold. First, we test whether the sand cone model of CCP can be replicated in a repeated cross-sectional design. Second, we examine the cumulative reinforcement patterns among capabilities by investigating the links between them, thereby assessing the robustness of the configuration prescribed by the sand cone model over time. And third, we examine whether the configurations in which cumulative capabilities are pursued differ across the two time periods, and how they influence improvements in manufacturing plant performance.
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This study replicates and extends Ferdows and De Meyers’ observed ‘sand cone’ model of cumulative competitive capabilities by means of Roth’s related competitive progression theory (CPT). Using path analysis, we model and test the relationships among the generic competitive capability constructs of conformance quality, delivery reliability, volume flexibility, and low cost as predicted by CPT. Our results, drawn from a sample of high-tech manufacturers, provide further evidence that on average, these four capabilities are acquired both cumulatively and in that sequence. We also find that each generic capability increases operational know-how and reduces non-value-added directly and/or indirectly through the enhancement of successive capabilities in the progression, which in turn improves profitability. The paper contributes a theoretical rationale for the observed sand cone effect, describes how the competitive progression acts to influence accelerated organizational learning over an innovation cycle, and offers evidence that combinative capabilities have strategic value for high-tech manufacturers.
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The existing studies conceptualize a direct relationship between acquired labor flexibility and plant performance, producing inconsistent empirical results, which makes the topic ripe for further inquiry. We believe acquiring labor flexibility is not sufficient; its implementation is an important intervening step when companies have to tackle accompanying technical and behavioral side effects of labor flexibility. In this paper, we develop and test a theoretical model in which we introduce an intervening variable to capture the implementation of labor flexibility. In addition, evolving human resource management practices that promote acquisition of labor flexibility are also examined in our model. Case studies in ten printed circuit board plants validated our model. Subsequently, survey data collected from 74 PCB plants was analyzed using Partial Least Squares method. Supporting the proposed model, the results show that the impact of acquired labor flexibility on plant performance is not direct but experienced through the sophistication of labor flexibility implementation exercised by the plant. Our findings also suggested that plants that emphasized process-focused training, provided greater job-rotation training, and designed positive reward structures, acquired higher labor flexibility.
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