Lessons from the ‘made in Switzerland’ study: What makes a world-class manufacturer?

Many executives are currently striving to develop world-class manufacturing operations to ensure that they remain competitive in increasingly global markets. To do this, they are adopting a range of practices, from organisational changes such as empowerment and teamwork to the use of techniques such as pull production. Their goal is to substantially improve performance: faster cycle times, reduced manufacturing costs and greater customer satisfaction.The question of how far companies have moved towards world-class manufacturing is at the heart of the ‘Made in Switzerland’ project, a major benchmarking study of Swiss manufacturing practice and performance. The study was carried out in 1995 by IMD faculty and researchers working with consultants from IBM Switzerland. It is part of the internationally-based ‘Made in Europe’ project comprising similar studies in the UK, Germany, The Netherlands and Finland.The central hypothesis of the studies is that the adoption of best practice leads to high performance. The objective is to establish a benchmarking database for participating manufacturers around the world. The studies, which are highly structured, examine six areas of manufacturing practice and performance in detail and assess the relationship between them at individual plants. The areas covered in the study are quality, organisation and culture, concurrent engineering, logistics, lean production and manufacturing systems.Plants in each country are grouped according to their position on the practice and performance indices and then studied in order to pinpoint the issues and challenges facing the manufacturers within that group. Less than three per cent of the 800 plants currently on the ‘Made in Europe’ database are considered ‘world-class’. Yet for manufacturers striving to reach this level of performance, this small minority can provide some valuable insights for the way ahead.This article discusses many of the issues raised by the analysis described above, with particular reference to the ‘Made in Switzerland’ study. In the first section, it looks at the key lessons arising from the Swiss study and what insights these can provide for manufacturers, not only in the Swiss market, but across Europe. In the second section, it looks at how the study can be used for benchmarking and provides manufacturers with some general recommendations to help them focus their improvements and move closer to becoming world-class.     

An environmental life cycle optimization model for the European pulp and paper industry

Will paper recycling reduce the environmental impact of the European pulp and paper sector? If so, is maximal paper recycling the best policy to optimize the life cycle of the pulp and paper sector? We explore these questions using an approach that combines materials accounting methods and optimization techniques. Environmental impact data are inputs for a linear programming network flow model to find optimal configurations for the sector. These configurations consist of a mix of different pulping technologies, a geographical distribution of pulp and paper production, and a level of recycling consistent with the lowest environmental impacts. We use the model to analyse scenarios with different recycling strategies. Recycling offers a reduction in environmental impact in regions with a high population and a large production of paper and board products. Regions with a large production of graphic products should focus on cleaner virgin pulp production with energy recovery. We conclude that relocation of paper production also offers a reduction in environmental impact. However, the severe effects on the economy make this policy less attractive than a combination of recycling, cleaner pulp production and energy recovery.     

The case of post-acquisition integration design decisions

In a multi-method study that examined post-acquisition integration design decisions, managers were found to have poor insight into the values underlying their decision making. This lack of insight was not found to be moderated by increased levels of experience with acquisition decision making, and its effects were reflected in post-acquisition performance.     

Building an innovative organization

Morton L. Mandel, CEO of Cleveland-based Premier Industrial Corporation, with brothers Jack and Joe, started selling automotive fasteners out of garage 50 years ago. Today, Premier's sales are running at a record $650m clip. The market value of the Mandel brothers' publicly-traded Premier shares earns all three a place on Forbes' list of the 400 wealthiest Americans. The family still holds about 60 per cent of the stock. Mort Mandel believes that gives the company independence and the ability to concentrate on nuts and bolts rather than politics. Mandel's nuts and bolts approach to managing has created stunning success—after-tax margins twice the average of Premier's industry, return on assets of 24 per cent, return on investment above 30 per cent, earnings per share compounded in excess of 17 per cent for the past 5 years, shareholders' equity that has grown close to 10 per cent annually for 20 years, and debt of less than 3 per cent of net worth. Mandel says it's simple: Treat customers as though they have the ‘right’ to superior service. Behave ethically, professionally and personally. Do good. Invest in people. Execute, execute, execute. What he calls Management 101. We suspected it wasn't quite that simple, and we wanted to know how he created a company that repeatedly outperforms its industry and many others, how he sustains a culture that generates 5000 written profit improvement ideas a year from Premier's 5400 employees. So we asked him some questions about his views on management and leadership that produced refreshing insights into the power, purity and timeless applicability of ‘management basics’. This interview was conducted at Premier's unpretentious executive offices, located in the Midtown Corridor of Cleveland, Ohio, a privately-sponsored urban renewal project inspired by Mort Mandel, who practices his preachings about ‘doing good’.     

Knowledge sharing for innovation performance improvement in micro/SMEs: an insight from the creative sector

Abstract

As economies become more reliant on innovative, knowledge-intensive firms, understanding the interaction between knowledge and improving innovation performance is increasingly important. Although most UK businesses are micro, small or medium-sized enterprises (micro/SMEs), knowledge management research has tended to focus on large companies Knowledge sharing can be critical for innovation performance, especially for smaller players with limited resources. Our study presents an insight from micro/SMEs operating in the highly knowledge-intensive and innovative games/entertainment software development sector. Using a mixed method approach, we investigate knowledge sharing and its contribution to firm innovation performance improvements. Our findings suggest that micro/SMEs are at the forefront of the creative sector precisely because of their smaller size. Our study reveals evidence of knowledge donation but limited evidence of knowledge collection in the knowledge sharing process. We develop a model highlighting the importance of industry context, individual knowledge and organizational size in knowledge sharing for innovation performance.     

Planning and health care—The approach in a reorganized NHS

From April 1974, National Health Service authorities have been merged to provide integrated and comprehensive services. The reorganization policies place considerable emphasis on the need for management and planning but planning for health services is not well developed. Ambiguous operational objectives and obscured criteria for effectiveness are not the most promising basis for planning. Nevertheless, a commendable beginning is to be made on planning comprehensively through a systematic annual review of Government health service policies and planning and programming procedures for health authorities. The outlines of the system are described and the prospects for success and further development are considered.     

A methodological strategy for a one-number census in the UK

As a result of lessons learnt from the 1991 census, a research programme was set up to seek improvements in census methodology. Underenumeration has been placed top of the agenda in this programme, and every effort is being made to achieve as high a coverage as possible in the 2001 census. In recognition, however, that 100% coverage will never be achieved, the one-number census (ONC) project was established to measure the degree of underenumeration in the 2001 census and, if possible, to adjust fully the outputs from the census for that undercount. A key component of this adjustment process is a census coverage survey (CCS). This paper presents an overview of the ONC project, focusing on the design and analysis methodology for the CCS. It also presents results that allow the reader to evaluate the robustness of this methodology.     

Coming out to parents: perceptions of family relations, perceived resources, and identity expression as predictors of identity disclosure for gay and lesbian adolescents

This paper examines perceptions of family relations, identity expression, and pro-lesbian/gay resources as factors influencing coming out to parents. One hundred seventy-two adolescents responded to a survey originating from a clinical support group for lesbian and gay youth. Findings indicate that weak family relations significantly detract from coming out to parents indirectly through identity expression and perceived resources. Excluding the effects of family relations, adolescents perceiving supportive resources and expressing their lesbian/gay identity were more likely to come out to parents.     

A cross-national look at married women's earnings dependency

Using the Luxembourg Income Study data we examine married women's dependency on their husbands' earnings in nine Western industrialized countries: Australia, Belgium, Canada, Finland, Germany, the Netherlands, Norway, Sweden, and the United States. When we examine the level and degree of dependency, and the labor force participation of married women across countries, the nine countries fall into the three clusters delineated in Esping-Andersen's welfare states typology. But when we examine the determinants of the dependency within each country, the clustering disappears. Wives' dependency increases with age, the presence of young children, and the number of children. It is reduced when wives' labor force participation and education are high relative to their husbands' and in families that rely more on unearned sources of income. The similarity of patterns across countries suggests that gender differences in the work-family nexus are deeply entrenched in all countries and continue even in the face of very active social policy to minize their effects. This is a revised version of a paper presented at the annual meeting of the American Sociological Association, August 1995, Washington DC. Her current research focuses on gender inequality and parents' time allocation between work and family. She conducts research on various aspects of family demography, including household and family characteristics, co-resident grandparent families, cohabitation, and child care. With Suzanne Bianchi, she is completing a research monograph on trends in the American family. Her research focuses on gender, work, and family issues.