Production planning and inventory control in a company manufacturing PC parts: A case study

In this paper, we present a case study on the production planning and inventory system in a company manufacturing personal computer (PC) parts. In the case study, the targets are specified for developing a system for production planning and inventory control. The current state of the company is analysed for clarifying the points necessary to achieve the targets. Also, a system based on the analysis is proposed and its effects are estimated.     

Design and implementation of an integrated production planning system for a pharmaceutical manufacturing concern in India

SmithKline Beecham (SBPI) is a major player in the Indian pharmaceutical industry. Though relatively small in terms of turnover, it has performed Pharmaceuticals (India) exceptionally well in terms ofprofitability and growth rate. The firm has substantial cash reserves. However, the firm operates in 'mass production' mode at present, with the established finished goods inventory norms being in the range of 1 to 1.5 months. Competitive pressure on the firm is now forcing it to move towards world class manufacturing and the application of concepts from MRP II, JIT and OPT is under consideration. This paper describes the considerations that went into the justification, design and implementation of an integrated production planning and control system in this situaion.     

Building a short-term production planning system for flexible manufacturing systems: an integration viewpoint

From the viewpoint of integration, the production objective of flexible manufacturing systems (FMS) should follow results of MRP/CRP. Thus, the planning goal of short-term production planning (STPP) is to satisfy quantity and due date requirements determined by MRP/CRP. The STPP of FMS should cover part type selection, production ratio, process selection, process ratio, resource allocation, machine grouping, routing mix and loading problems.

A STPP system is built to solve the STPP problem of an FMS having multiple machine types, each with multiple m.'ichinc units. This system adopts a variable-period flexible planning approach, using part mix and process selection flexibilities to solve STPP problems. It also provides flexibilities in its operations sequence and in the machine routing to the dynamic operation planning system.     

Strategic adoption of a flexible manufacturing system: Case study of an Indian electronics enterprise

In recent years, strategic considerations relating to manufacturing management in the electronics industry have undergone transformation at a very rapid rate. They are being driven by pluralistic customer demands and influenced by technological innovations and competitive interventions. This paper reports on the strategic adoption and implementation of advanced manufacturing technology (AMT) in an Indian electronics enterprise which has collaborative alliance with a multinational corporation (MNC) in the USA. A hybrid model has been formulated using the nominal group technique (NGT) and analytic hierarchy process (AHP) to evaluate various alternative AMTs.     

Opportunism in Capital Budget Recommendations: The Effects of Past Performance and Its Attributions*

This study uses an experiment to examine the separate and combined effects of managers' loss aversion and their causal attributions about their divisions' performance on tendencies to make goal‐incongruent capital budget recommendations. We find that managers' recommendations are biased by their loss aversion. In particular, managers of high‐performing divisions are more likely than managers of low‐performing divisions to propose investments that maximize their division's short‐term profits at the expense of the firm's long‐term value. We also find that managers' recommendations are biased by their causal attributions. In particular, managers are more likely to propose investments that maximize their division's short‐term profits at the expense of the firm's long‐term value when they attribute their division's performance to external causes (e.g., task difficulty or luck) rather than to internal causes (e.g., managerial ability or effort). Further, the effects of causal attributions are greater for managers of high‐performing divisions than for managers of low‐performing divisions. The study's findings are important because loss aversion and causal attributions are often manifested in firms. Thus, they may bias managers' decisions, which in turn may be detrimental to the firms' long‐term value.     

Analysis of an EOQ inventory model with partial backordering and non-linear unit holding cost

In this paper, an economic order quantity inventory model is analyzed, considering that the unit cumulative holding cost has two significant components: a fixed cost which represents the cost of accommodating the item in the warehouse and a variable cost given by a potential function of the length of time over which the item is held in stock. Shortages are allowed and, during the stockout period, only a fraction of demand is partially backordered. The backordering cost includes a fixed cost and a cost linearly dependent on the length of time for which backorder exists. A solution procedure is developed for determining the optimal inventory policy. Moreover, to illustrate the effects of some parameters on the optimal policy and the minimum total inventory cost, a numerical study is developed.     

Taxonomy of ERP integrations and performance outcomes: an exploratory study of manufacturing firms

Building and deploying network capabilities of firms are crucial for sustaining competitive advantage. Enterprise resource planning (ERP) systems are useful to enhance such network capabilities thorough effective information flows. Their intended goals are measured in terms of production costs, operational flexibility and supply chain performance outcomes. However, the impact of ERP system implementation on firm performance has been reported as somewhat inconclusive. This study contends that a missing link in the story is the scope and extent of ERP system implementation after investigating how the extent of ERP integration is associated with the performance outcomes of manufacturing firms. The study also posits that restructuring in the organisation and supply chains are positively associated with manufacturing performance. Since ERP often entails restructuring in an organisation and supply chains, it is anticipated that restructuring plays an important role in inducing positive impact of ERP implementation to the firm. Using a global sample of 641 manufacturers, this research identifies four distinct ERP systems integration patterns, epitomised by different extents and directions of integration, and finds a significant association among the broadest degree of ERP systems integration, restructuring and plant performance improvement. The empirical results also show that restructuring takes place most actively in a firm that implement ERP with widest scope and scale.     

零部件循环取货越库物流系统关键因子研究——仿真实验设计与分析方法

汽车和物流产业是国家重点扶持的两大振兴产业． 在众多汽车制造企业产能扩大的背景下,以零部件平均物流时间(cycle time,CT) 为绩效评价指标,深入研究了基于第三方物流的零部件循环取货越库物流模式( 简称 3PL－MRCD) 的优化设计问题． 建立了符合企业实际运作的离散系统随机仿真模型,即零部件循环取货与越库内部运作的集成模型． 与现有供应链仿真模型相比,由于存在较多的仿真因子,提出首先运用序贯分支法( sequential bifurcation, SB) 筛选 3PL－MRCD 系统关键因子,再应用响应面法(response surface methodology,RSM) 找到关键因子最优运作水平的方法步骤( SB－RSM) ,解决了大型仿真系统的优化设计问题． 基于调研的数据进行仿真实验,结果表明 SB－RSM 可准确找出影响CT的关键因子最优取值, 该值使CT达到较为理想的水平． 对大型仿真系统的优化而言,SB － RSM 比传统 RSM 更具实 验效率与效力,SB－RSM 为产能扩大3PL 物流决策的制定提供了可靠的解决方案,具有良好的应用价值．     

Acceptance of automation manufacturing technology in China: an examination of perceived norm and organizational efficacy

Abstract

With a shift to more automation technology, social acceptance of technology plays an important role in the manufacturing sector. To what extent this occurs, and affects the adoption of technology, has been less researched, but is important in deciding how such technology is introduced, and the nature of the shift from labour-intensive manufacturing to automation. This research applies the revised technology acceptance model (TAM) to examine the impact of social and individual antecedents on the acceptance of automation manufacturing technology. Survey data are collected from 258 Chinese manufacturers. Results suggest that perceived norms significantly affect organizational intention to use automation manufacturing technology both directly and via perceived usefulness; organizational efficacy explains the intention to use via mediating effect of perceived usefulness and perceived ease of use. This research is one of the first extending and applying TAM from individuals to organizations.     

Implementation of Lean Six Sigma framework with environmental considerations in an Indian automotive component manufacturing firm: a case study

Lean Six Sigma is a systematic data driven methodology that integrates two powerful business improvement strategies Lean Manufacturing and Six Sigma with the goal of removing wastes and reducing process variation. Lean Six Sigma has a positive effect on environmental performance as defect reduction and reducing process variation leads to reduction in raw material consumption, energy consumption and reduced scrap which in turn reduces the overall environmental impacts. In this context, this study uses a Lean Six Sigma framework with environmental considerations to reduce overall defects and environmental impacts concurrently to improve the firm’s operational and environmental performance. The framework is based on Define Measure Analyze Improve Control methodology where traditional Lean Six Sigma and environmental impact assessment tools are integrated to systematically deploy LSS strategies with environmental considerations. The framework is validated with an industrial case study conducted in an Indian automotive component manufacturing organisation and the inferences are derived. On successful deployment of the framework, the internal defects was brought down to 6000 ppm from 16,000 ppm and environmental impacts was reduced to 33 Pt from 42 Pt. Deployment of the developed framework helped in improving the firm’s sigma level and also reduced the overall environmental impacts.     

Mean-risk analysis of radio frequency identification technology in supply chain with inventory misplacement: Risk-sharing and coordination

This paper investigates the application of radio frequency identification (RFID) technology to eliminate the misplacement problems in the supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer. By considering both fixed cost and tag cost of RFID implementation, we study the agents' incentives to adopt RFID in both uncoordinated and coordinated cases. We focus on analyzing the impact of risk attitudes on the agents’ incentives and on the supply chain coordination. The central semi-deviation is adopted to measure the retailer's risk attitude. In the uncoordinated case, we find that, in order to induce the retailer to adopt RFID, the manufacturer must assume more fixed cost if the retailer is more risk-averse. In the coordinated case, we first show that the standard revenue sharing contract does not always coordinate the channel. If the channel is coordinated, we observe that the agents’ incentives will be perfectly aligned and independent of the risk attitudes, if the revenue sharing ratio equals the fixed cost sharing ratio. Then we propose a risk-sharing contract that offers the risk protection to the retailer, to achieve the channel coordination. An interesting finding is that the manufacturer's incentive will not decrease with the tag cost, if she takes much risk from the retailer. The corresponding impacts of RFID adoption on the two contracts are also analyzed in this paper. Finally, a case study in a tobacco industry is presented to show the real RFID cost in practice.     

Manufacturing management strategies for environmental protection: Toward the environmental upgrading of management and manufacturing systems to cope with environmental laws

Recent environmental problems have been caused by business activities and a lifestyle based on mass production, mass consumption and mass disposal. These problems have also become global in scale. Increasingly, global efforts are being applied to preserve and improve the environment. NEC, a worldwide electronics manufacturer, created its own environment action plan called Eco-Action 21. This is a continuously evolving plan applied throughout the NEC group and subsidiaries. Globally, 34 NEC manufacturing sites have received ISO 14001 certification. NEC Tohoku in Japan and NEC Ireland obtained BS 7750 certification even before this. NEC improves subcontractors' environmental behaviour with our accumulated expertize and technology derived from our ISO experience and our own development. Input for this paper was not only from NEC Tohoku and the NEC group, but also from outside NEC.     

An Intranet based system as an enabler in effective project management and implementation of quality standards: A case study

This paper reports on the development of an Intranet based system, as an enabler in project management and implementation of a quality standard (ISO9001:2000) at Tyco Fire & Integrated Solutions Oil Gas & Marine Europe, a subsidiary of Tyco International a worldwide Engineering Conglomerate, (Referred to as TFIS). The system enabled stakeholders to follow standard project protocols, playing an important role in creating integration between different sub-sections. This paper discusses the strategic relevance of the system in achieving desired business outcomes, by making the organisation more responsive, agile and increasing the accountability of stakeholders involved in managing projects.     

Decision Making in an Automated Environment: The Effects of Anonymity and Proximity with a Group Decision Support System*

Recent advances in information systems technology have made it possible to support the work of interacting groups using networked personal computers. A laboratory experiment was conducted using a group decision support system to evaluate effects of anonymity and proximity on group process in automated group problem solving. Twenty groups of four persons each performed an idea-generating task using an interactive electronic brainstorming program. This experiment's main findings were: (1) Group members working anonymously and apart generated more comments. (2) Working in the same room increased satisfaction. (3) Highest levels of perceived system effectiveness were reported under anonymity.     

Impacts of demand and supply factors on the capacity scheduling performance of logistics service supply chain with mass customisation service modes: an empirical study from China

This paper studies the influence of the demand–supply environment on the capacity scheduling performance of the logistics service supply chain. According to the key characteristics of the demand–supply environment, the cases of five Chinese companies were introduced and cross-analysed, then research hypotheses were developed. After receiving 154 valid questionnaires and testing our hypotheses, some key conclusions were obtained. From the aspect of demand, there is a positive correlation between the customised levels of demand and the scheduling cost of logistics service integrators but a negative correlation between the customised levels of demand and the scheduling flexibility; From the aspect of supply, a higher self-support ratio of logistics source and a higher sourcing integrity of logistics service integrators will lead to a higher scheduling cost and a lower scheduling flexibility; a whole-process performance evaluation is a moderator, which will positively improve the impact of the whole process scheduling performance.