MANUFACTURING PROCESS TECHNOLOGY and SUPPORT STAFF COMPOSITION: AN EMPIRICAL VIEW OF INDUSTRY EVIDENCE

Despite the attention given to restructuring and trimming down manufacturing firms during the 198Os, little attention has been paid to the mix of skills they needed under different circumstances. We examined the patterns of employment by occupation in manufacturing industries utilizing different production technologies and the effect of establishment size on nonproduction employment. We found that a relationship exists between production technology and nonproduction employment per 100 production workers. Establishment size is found to be a moderator between nonproduction employment and production technology. Our findings imply two clear messages for managers. First, when considering major changes in production technology, managers should be aware that the supporting skills they will need from their nonproduction work force are likely to change greatly. Further, these changes involve technical and managerial workers as well as clerical and production support people. Second, they should restructure the functional or occupational mix of an organization in the context of the process technologies in place. Different process technologies require different structures.     

EFFECTS OF OPERATIONAL EMPLOYEE SKILLS ON ADVANCED MANUFACTURING TECHNOLOGY PERFORMANCE

This study employs structured interviews in a field setting to develop an in‐depth understanding of how a specific human resource decision affected manufacturing performance at 30 plants using advanced manufacturing technologies. Initial results suggested that there is no relationship between the skill level of operational employees and the level of performance of the installations. When a measure of “fit” between environmental characteristics and skills was employed, however, there was a significant relationship between the fit measure and performance.     

LOOKING AHEAD BY LOOKING BACK: SWIFT,EVEN FLOW IN THE HISTORY OF MANUFACTURING

Manufacturing history is too often neglected in operations management and its lessons lost. Its usefulness for testing theory is under-appreciated. This paper uses critical aspects of the history of manufacturing to provide support for the Theory of Swift, Even Flow as an explanation of productivity gain. The rise of Britain in the Industrial Revolution and the rapid overtaking of Britain by the United States and Germany are argued to be thoroughly consistent with Swift, Even Flow, thereby vindicating both theory and the usefulness of history.     

THE IMPACT OF ENTERPRISE INFORMATION TECHNOLOGY ADOPTION ON OPERATIONAL PERFORMANCE: AN EMPIRICAL INVESTIGATION

This paper presents the results of a natural experiment conducted at a U.S. high‐tech manufacturer. The experiment had as its treatment the adoption, at a single point in time, of a comprehensive enterprise information system throughout the functional groups charged with customer order fulfillment. This information technology (it) adoption was not accompanied by substantial contemporaneous business process changes. Immediately after adoption, lead time and on‐time delivery performance suffered, causing a “performance dip” similar to those observed after the introduction of capital equipment onto shop floors. Lead times and on‐time delivery percentages then improved along a learning curve. After several months, performance in these areas improved significantly relative to preadoption levels. These observed performance patterns could not be well explained by rival causal factors such as order, production, and inventory volumes; head count; and new product introductions. Thus, this longitudinal research presents initial evidence of a causal link between IT adoption and subsequent improvement in operational performance measures, as well as evidence of the timescale over which these benefits appear.     

BUSINESS STRATEGY,MANUFACTURING FLEXIBILITY,AND ORGANIZATIONAL PERFORMANCE RELATIONSHIPS: A PATH ANALYSIS APPROACH

It has been argued in the literature that business strategy and manufacturing flexibility independently affect the performance of an organization. However, no empirical examination of the interrelationship among these three constructs has been performed. In this paper, based on a field study of 269 firms in the manufacturing industry, the identified constructs have been used to test a theoretical model using path analysis techniques. Our results indicate that business strategy contributes both directly and indirectly to organizational performance. The findings provide evidence of direct effects of (i) business strategy on manufacturing flexibility and (ii) manufacturing flexibility on organizational performance.     

EXPLORING THE LIMITS OF THE TECHNOLOGY S-CURVE. PART I: COMPONENT TECHNOLOGIES

The technology S-curve is a useful framework describing the substitution of new for old technologies at the industry level. In this paper I use information from the technological history of the disk drive industry to examine the usefulness of the S-curve framework for managers at the firm level in planning for new technology development. Because improvements in over-all disk drive product performance result from the interaction of improved component technologies and new architectural technologies, each of these must be monitored and managed. This paper focuses on component technology S-curves, and a subsequent paper, also published in this issue of the journal, examines architectural technology Scurves. Improvement in individual components followed S-curve patterns, but I show that the flattening of S-curves is a firm-specific, rather than uniform industry phenomenon. Lack of progress in conventional technologies may be the result, rather than the stimulus, of a forecast that the conventional technology is maturing, and some firms demonstrated the ability to wring far greater levels of performance from existing component technologies than other firms. Attacking entrant firms evidenced a distinct disadvantage versus incumbent firms in developing and using new component technologies. Firms pursuing aggressive Scurve switching strategies in component technology development gained no strategic advantage over firms whose strategies focused on extending the life of established component technologies.     

THE PLANT LOCATION DECISION IN MULTINATIONAL MANUFACTURING FIRMS: AN EMPIRICAL ANALYSIS OF INTERNATIONAL BUSINESS AND MANUFACTURING STRATEGY PERSPECTIVES

The paper combines perspectives from international business and manufacturing to examine multinational plant location decisions. The location choice in manufacturing is between integrated and independent plants, while the international choice is between a foreign and domestic plant relative to their headquarters' country. The study empirically investigates whether these choices have different plant location determinants using data from a survey of plant managers of large, multinational firms. We find more evidence that the manufacturing choices benefit from consideration of international business issues than vice versa. However, managers rank determinants associated with manufacturing strategy considerably higher than those associated with intemational business.     

AN ANALYSIS AND DISCUSSION OF THE OPTIMIZED PRODUCTION TECHNOLOGY SOFTWARE AND ITS USE

During the 19805 much attention, both pro and con, was directed toward optimized production technology (OPT). Criticism was directed at the proprietary nature of the scheduling algorithms within the software. Despite these criticisms, many large companies installed OPT. Little has been written on how the software is constructed and operates. This article introduces the software, provides a discussion of how it interfaces with management, and how various algorithms are imbedded in the software function. Last, a survey of companies that had implemented the software revealed that the major users are in the automotive industry.     

INTRODUCTION: SHAPING THE FUTURE OF MANUFACTURING AND SERVICE OPERATIONS

The challenges and opportunities in production and operations management (POM) are almost unlimited because in the world economy, manufacturing andservice operations account for more than 10 trillion dollars per year and in any single industry, the performance varies widely from country to country and from organization to organization. The goal of Production and Operations Management is to contribute to improving the management of manufacturing and service operations all over the world. The editors and reviewers judge the papers published in the journal for their contribution to improving of business practices and to further closeness between research and practice. The journal will publish high quality papers on a broad range of topics in POM, and it encourages all paradigms, old and new. We also invite managers from around the world to describe specific POM problems that provide challenging opportunities for academic research.     

ON THE RELATIVE PERFORMANCE OF FUNCTIONAL AND CELLULAR LAYOUTS- AN ANALYSIS OF THE MODEL-BASED COMPARATIVE STUDIES LITERATURE

Paralleling the increased interest in cellular manufacturing in recent years, a large number of studies have emerged that focus on the relative performance of cell systems and the functionally organized systems they replace. This paper is an analysis of studies that use model-based, controlled experimentation to seek answers to the questions of if, when, and why cellular layouts outperform their functional counterparts. Twenty-four model-based studies are analyzed with respect to their definitions of cellular versus functional layouts, the experimental factors that have been investigated, the results concerning relative performance, and the findings' relevance to layout choice. We conclude that although the comparative studies have been very valuable in their efforts at identifying the factors that embody the essence of cells and shape performance improvements, most of the basic findings are known from past research. Furthermore, the studies' findings cannot assist practitioners in making specific choices between existing layouts and alternative cell systems. However, the totality of the findings reinforce our knowledge of how work systems in general can be designed and organized to reduce throughput time, and can also be used to identify environments and conditions for which conversions to cells may have more or less potential.     

INFLATION,MAINTENANCE OF CAPITAL,AND THE IRR MODEL: AN APPRAISAL AND ALTERNATIVE

Capital budgeting under inflationary conditions presents some additional implementation problems when computing the internal rate of return. This paper reviews an earlier proposal made in this journal and concludes that it has some technical deficiencies. Further, it does not have the flexibility needed to be congruent with a wide variety of concepts of capital maintenance and asset evaluation. An algorithm is developed that will permit the user to make a variety of assumptions and then solve for the IRR that is consistent with those assumptions.