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Supply chain management: an empirical study of its impact on performance Total quality management, supply base management, customer driven corporate policy, and other elements of supply chain management are frequently cited as strategic options to achieve competitive success in the 1990s. However, attempts by companies to implement these options have not been universally successful and have in many cases failed to yield the desired results. This study presents details of a survey carried out to determine whether particular quality management, supply base management, and customer relations practices can impact corporate performance. In addition it examines the impact analyzing the competitive environment has on performance. Regression models identify several factors that directly and positively impact corporate performance. These include the extent to which companies analyze the strategies of competitors and determine future customer requirements, and the commitment they have to evaluating performance throughout the supply chain.
Keywords: Supply-chain management, TQM, Customer service Joint venture manufacturing in China: an exploratory investigation Zhang Lihong, Keith Goffin International Journal of Operations & Production Management; 19: 5/6 1999; pp. 474-490, International joint venture (IJV) manufacturing is important for both the Chinese economy and a large number of foreign investors. A review of the literature from both Western and Chinese researchers showed that although the purpose and advantages of IJV manufacturing in China are known, a vital aspect - operations management - has largely been ignored. Therefore, exploratory interviews with managers at six companies were conducted to investigate the operations management issues faced by IJV manufacturers in China. Four main problems were identified: the difficulty with recruiting and training suitable employees; all aspects of supplier management; problems with achieving high-quality output; and achieving an effective IJV business culture. The results have implications not only for researchers, in that they indicate where more research is necessary, but also for practitioners, since they identify the areas where IJV manufacturers are most likely to encounter problems in China.
Keywords: China, International business, Joint ventures, Manufacturing The adoption and modelling of the strategic productivity management approach in manufacturing systems R. Murugesh, S.R. Devadasan, P. Aravindan, R. Natarajan International Journal of Operations & Production Management; 17: 3 1997; pp. 239-255, Claims that failure to integrate productivity in total quality management (TQM) projects leads to ineffectiveness in management of manufacturing systems. Establishes a generalized manufacturing systems model based on the analysis of the results of literature and industrial surveys. Explores the need to adopt the strategic management approach to develop a productivity management model that could integrate with the existing successful quality management model. Identifies the conceptual and strategical elements of productivity and models them under the name "strategic productivity management" (SPM). Describes the pilot study carried out to validate SPM and explores the future direction of work.
Keywords: Manufacturing systems, Modelling, Productivity management, Research, Strategic
management, TQM Lean production in a changing competitive world: a Japanese perspective Hiroshi Katayama, David Bennett International Journal of Operations & Production Management; 16: 2 1996; pp. 8-23, Describes the basic concept of lean production and the recent trend in Japanese manufacturing which has been towards a cycle comprising price competition, cost reduction, a proliferation of new products, higher fixed costs, increased break even points and lower profits. Explains how Japan's recent recession has caused the cycle to be broken and considers how factors relating to the external and internal environment have influenced the viability of lean production within Japan's emerging competitive climate. Uses case studies of four manufacturing plants to identify problems, solutions and the need for a new approach to production systems design where costs are more sensitive to changes in demand. Proposes the concept of adaptable production as an approach which can accommodate to greater changes in demand than lean production.
Keywords: Case studies, Demand, Japan, Lean production, Systems design The role of group working in assembly organization Robert van der Meer, Mairi Gudim International Journal of Operations & Production Management; 16: 2 1996; pp. 119-140, Demonstrates how different forms of assembly organization can be classified on the basis of three structural characteristics and analyses the possible relationships between these characteristics and the various dimensions of competitive advantage. Uses the resulting model of the "assembly organization cube" to show that - apart from four "pure" forms of assembly organization - there is a multitude of potential "hybrid" forms, all of which may be expected to support the competitive advantage of the business in different ways from one another. Applies the model to a case study of group working in a clothing manufacturing plant. Explains how the net effects of the move from progressive assembly in batches towards a form of assembly organization incorporating somewhat longer task cycles, tighter coupling, and a more horizontal form of co-operation have been significant improvements in each of the dimensions of competitive advantage targeted throughput times, product flexibility, in-process quality, and production efficiency) as well as an increase in the level of job satisfaction of assembly operators.
Keywords: Assembly, Competitive advantage, Group working Organisational characteristics associated with AMT adoptionTowards a contingency framework Richard Schroder, Amrik S. Sohal International Journal of Operations & Production Management; 19: 12 1999; pp. 1270-1291, Using data collected from 132 manufacturing companies in Australia and New Zealand, this paper assesses the differences between firms in terms of advanced manufacturing technology (AMT) investment planning and implementation based on firm size and ownership. The analysis presented shows a number of differences. This is an exploratory study with the purpose of providing background data to guide future research in building up a contingency framework for AMT management. It is argued that variables such as firm size and principal ownership are useful additions to the contingency framework in addition to the infrastructure variables such as worker empowerment, quality leadership, soft integration, etc. It is concluded that organisational variables influence adoption of AMT and, hence, future research should focus on examining the relationships between the organisational context and the planning and infrastructure variables, and then relate these to the adoption process and the overall performance of AMT.
Keywords: Advanced manufacturing technologies, Contingency planning, Technology, Organization structure The changing pattern of operations management in developing countries The case of Brazil Afonso Fleury International Journal of Operations & Production Management; 19: 5/6 1999; pp. 552-564, Economic activity is becoming increasingly globalised. Multinational enterprises, which are the main drivers of that process, are reconsidering the role of their subsidiaries. In countries where the industrialisation process was heavily dependent on multinationals, such as Brazil, these changes are intrinsically relevant, as they influence the operations of local companies as well as the definition of economic and industrial policies. This paper, based on longitudinal studies of 21 leading Brazilian companies (11 subsidiaries and 10 local), identifies the different roles performed by the subsidiaries in the global competitive strategies chosen by distinct TNCs as well as the strategic and organisational changes adopted by local companies aiming to participate in global productive chains and networks. The final picture reveals that the transition to a globalised competition logically requires the development of new concepts of production systems for developed and developing countries.
Keywords: Brazil, Developing countries, International business, Manufacturing Virtuous and vicious cycles on the road towards international supply chain management Henk Akkermans, Paul Bogerd, Bart Vos International Journal of Operations & Production Management; 19: 5/6 1999; pp. 565-582, An increasing number of companies claim to pursue international supply chain management (ISCM), but the empirical evidence of successful implementation programs is still scarce. This paper aims to contribute to theory-building in this area by presenting an exploratory causal model of goals, barriers, and enablers on the road towards effective ISCM. The model was established in a workshop with a panel of content matter experts. The results point at a disturbingly gloomy picture of vicious cycles frustrating the implementation of effective ISCM strategies. Fortunately, it appears that it is possible to apply the same generic mechanisms to create a virtuous cycle, for instance by promoting cross-functional careers and by actively responding to demanding customer needs. The challenge ahead is to test the model's content and validity.
Keywords: International business, Logistics, Supply-chain management Evaluating manufacturing strategy for a learning organization: a case R.P. Mohanty, S.G. Deshmukh International Journal of Operations & Production Management; 19: 3 1999; pp. 308-328, The key issue in today's dynamic and competitive global scenario is how to develop, utilize and sustain continuously the knowledge potentials in an enterprise. This issue is about knowledge management. In this paper, an attempt is made to discuss the various issues of a learning organization and present an organizational learning model, which has helped to evaluate manufacturing strategies and select advanced manufacturing technology, based on strategic, tactical and monetary factors. The efficacy of the model is illustrated through an application.
Keywords: Advanced manufacturing technologies, Decision making, Knowledge workers, Learning organizations, Manufacturing strategy Software benchmarks using function point analysis Yen Cheung, Rob Willis and Barrie Milne Benchmarking: An International Journal; 06: 3 1999; pp. 269-276, The alternative to using source lines of code (SLOC) for costing software projects is to use function points. Functional point analysis (FPA), which was first introduced in 1979, has now been widely accepted as the industry standard for estimating software size and costs. International standard bodies like the International Function Point Users' Group (IFPUG) has been maintaining a repository of data based on projects that were drawn from 14 countries in North America, Europe and Asia/Australasia. This paper presents the results of the analysis that was performed on these data together with recommendations such as benchmarks for software projects. Project measures such as functional size, work effort, project delivery rate, speed of delivery and project duration were analysed using the statistical package, Systat. Apart from project duration, all distributions were log-normal, thus suggesting that the results can be used for software benchmarking. Regression analysis on the data further identified correlation of functional size with other project measures that can be used as a basis for planning and estimating software projects. Further work on the repository involves other project measures such as team size and software defects.
Keywords: Software metrics, Regression analysis, Benchmarking, Costing, Project management Quality management in Australian service industries Nicholas Beaumont and Amrik Sohal Benchmarking: An International Journal; 06: 2 1999; pp. 107-125, Reports the results of a survey of quality management practices (QMP) in Australian service companies. Although service industries are much more important contributors to GNP and employment than manufacturing industries, most quality management literature is oriented toward manufacturing. We review relevant parts of that literature, especially that on QMP, and propose a definition of this concept. Provides basic information on the use of QMP in Australian service industries such as what QM practices are used, what training is undertaken, attitudes to QMP and impediments to its adoption. We draw conclusions and suggest areas of potential improvement. The most interesting findings are that, first, although 94 per cent of the companies used at least one QM practice, there is no link between the use of QMP and company size or success, second, most companies are progressive in their dealings with suppliers and customers and, third, view training positively.
Keywords: Australia, Quality management, Service industries Competitive benchmarking in the air cargo industry: Part I Ingrid Lobo, Mohamed Zairi Benchmarking: An International Journal; 06: 2 1999; pp. 164-191, This is the first of a series of three papers discussing a major benchmarking initiative in the air cargo freight industry sector. The project itself focused on nine major competitors in the cargo industry and included organisations known to be leaders in the areas of service excellence. The methodology used for establishing comparisons was an adaptation of the Malcolm Baldrige National Quality Award (MBNQA) (1996 version). A questionnaire was used with prompts covering various areas of quality management, people involvement in continuous improvement, service excellence aspects, customer focus and satisfaction aspects and finally business and operational performance aspects. Paper 1 discusses the changes that are taking place in the air cargo freight industry and sets the scene by presenting profiles of all of the competitors used in this study.
Keywords: Air transport, Benchmarking, Cargo, Freight transport Benchmarking unveils emerging knowledge management strategies Carla O'Dell, Karl Wiig, Peggy Odem Benchmarking: An International Journal; 06: 3 1999; pp. 202-211, Based on the findings of a large-scale benchmarking study, this article highlights the strategies employed by best-practice organizations to identify, capture, and leverage knowledge. Supported by case study examples from several companies, descriptions of six emerging knowledge management strategies discovered during the benchmarking process are provided. The article reveals how organizations seek to incorporate various knowledge management approaches into their business and sheds light on the changing nature of knowledge management in general.
Keywords: Benchmarking, Strategy, Knowledge workers Benchmarking - best practices: an integrated approach Khurrum S. Bhutta and Faizul Huq Benchmarking: An International Journal; 06: 3 1999; pp. 254-268, The essence of benchmarking is the process of identifying the highest standards of excellence for products, services, or processes, and then making the improvements necessary to reach those standards - commonly called "best practices". Various companies have adopted benchmarking and customized the methodology to suit their needs. A five-step benchmarking model is suggested in this paper as a model to be used when undertaking a benchmarking study. Two case studies are enumerated and a comparison presented.
Keywords: Benchmarking, Teams, Partnering, Performance, Case studies Tools and supporting techniques for design quality Fiorenzo Franceschini and Sergio Rossetto Benchmarking: An International Journal; 06: 3 1999; pp. 212-219, Rising interest in quality has determined a tangible revision of a new product's design and a great development of tools for supporting it. The present paper is an attempt at systematization of the proposed techniques and methodologies. The analysis is managed with reference to a multidimensional frame (technological and economic-organizational) in which a design of a new product may be considered. Considers four areas relating to aspects such as new design start-up and detailed design activities.
Keywords: Design, Quality, New product development Benchmarking manufacturing practice using the product life cycle Gregory M. Magnan, Stanley E. Fawcett, Laura M. Birou Benchmarking: An International Journal; 06: 3 1999; pp. 239-253, The dynamic nature of today's global marketplace places a premium on a firm's ability to anticipate and to respond to customer needs as well as changing competitive pressures. Within this environment, developing a successful manufacturing strategy can be critical to the firm's long-term competitive success. This paper looks at the potential for using the product life cycle (PLC) as a strategic anchor in the manufacturing strategy planning process. Results of an empirical study that investigated the fit of 44 manufacturing techniques across the PLC stage are presented. The implementation status and impact of the various manufacturing techniques is also considered.
Keywords: Benchmarking, Manufacturing, Globalization, Product life cycle
As always we have only skimmed the surface of relevant articles this week and only those that are particularly relevant for Asia-Pacific managers. Many other articles are available as well including those focusing on other countries and international perspectives.
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