PLANT‐LEVEL ENVIRONMENTAL MANAGEMENT ORIENTATION: THE INFLUENCE OF MANAGEMENT VIEWS AND PLANT CHARACTERISTICS

As customers, the public and other stakeholders are increasingly demanding that manufacturing firms improve their approach to environmental management, some plants have moved to develop an orientation that is increasingly proactive. Synthesizing earlier research, environmental management orientation is defined here to include system analysis and planning, organizational responsibility, and management controls. The relationship between a proactive orientation and two sets of internal factors, specifically the personal views of plant managers and plant‐specific characteristics, was tested using survey data from the furniture industry. The production outlook for the plant was critical, with a favorable outlook fostering a more proactive environmental management orientation. After controlling for plant‐specific factors, personal views also were influential; an increasing emphasis on short‐term economic value was related to a more reactive plant‐level orientation. Thus senior corporate management can foster strong plant‐level environmental management through a more balanced emphasis on economic and ethical values and continued investment in a plant's long‐term viability.     

ENVIRONMENTAL PERFORMANCE AS A DRIVER OF SUPERIOR QUALITY

We explore theoretically and empirically how efforts to enhance environmental performance may enable other types of manufacturing improvements. Drawing on a unique data set comprised of detailed surveys of 42 automotive assembly plants, associated quality metrics, and in‐depth qualitative data from 17 automotive assembly plants, we show that attaining superior environmental performance can be a significant driver of superior quality. We highlight the synergistic and reciprocal nature of environmental and broader manufacturing improvement efforts, and show that environmental improvement tools and know‐how can be an important source of competitive advantage.     

MEASURING AND COMPARING VOLUME FLEXIBILITY IN THE CAPITAL GOODS INDUSTRY

This paper presents a theoretical framework for measuring volume flexibility and relating these measures to firm performance. We develop four metrics using the principle that a volume flexible firm can handle similar levels of uncertainty (as measured by sales variability) with smaller fluctuations in inputs (as measured by variability in cost of goods sold and variability in inventory levels). Then, using 20 years of Compustat data on 550 firms in the capital goods industry, we find that on three of four process‐based measures, small firms are more volume flexible. However, when we incorporate financial performance into our fourth metric, we find that large firms are more volume flexible. We conclude that, to be volume flexible is one thing, but to benefit from this flexibility, firms need to focus on the cost of being flexible.     

QUALITY AND WORK FORCE MANAGEMENT PRACTICES: THE MANAGERIAL PERFORMANCE IMPLICATION

Quality has been in the limelight as organizations have sought to create a competitive advantage and theorists have sought to understand the implications of quality management. This paper examines the synergistic effects of the quality emphasis in the organizations, the use of appropriate work force management practices, and the managerial performance outcomes as interactive phenomena. Using data from multiple levels of employees in manufacturing units in various industries, we tested hypotheses regarding the managerial performance impact of the synergy in work force management practices and the quality emphasis. The results indicate that the effectiveness of work force management practices in enhancing managerial performance varies with the emphasis on quality that is manifested by meeting and exceeding customer needs and preferences through accurate, consistent, reliable, and durable products, and by making design changes in the products as desired by the customer.     

MANUFACTURING QUALITY,RELIABILITY AND PREVENTIVE MAINTENANCE

We consider an important topic from the traditional quality literature-the impact of conformance quality of a manufactured product on the preventive maintenance costs to downstream users of this product. Folk wisdom supports the notion that higher conformance quality translates into lower maintenance costs (as well as other components of life-cycle costs) for these users. We examine this proposition in some detail on the basis of a failure-time model that relates conformance quality to reliability. We consider both repairable and nonrepairable items that are maintained by a block-replacement or a minimal-repair strategy. In addition to maintenance cycles and costs, we discuss the value of information to the user as to the actual production quality, and the value of inspection.     

UNDERSTANDING THE IMPORTANT DIFFERENCES BETWEEN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD AND ISO 9000 REGISTRATION

Market globalization, higher requirements for improved quality, and tough, faster-pace, price-sensitive competition have led to two parallel and visible quality thrust: the Baldrige Award in the U.S. and, internationally, the ISO 9000 standards. The relationship between the Baldrige Award and ISO 9000 registration is widely confused. Two common misper-ceptions stand out: (1) that they both cover the same requirements and (2) that they both address improvement, relying on high quality results, and thus, are both forms of recognition. Many have concluded that the Baldrige Award and ISO 9000 are equivalent and that companies should choose one or the other. These conclusions are incorrect. The Baldrige Award and ISO 9000 registration differ fundamentally in focus, purpose, and content. The focus of the Baldrige Award is on enhanced competitiveness. The Award Criteria reflect two key competitiveness thrusts: (1) delivery of ever-improving value to customers and (2) improvement of overall operational performance. The Award's central purpose is educational-to encourage sharing knowledge and experience of competitiveness and to drive this learning, creating an evolving fund of knowledge. By contrast, the focus of ISO 9000 registration is on conformity to practices specified in the registrant's own quality systems. Its central purpose is to enhance and facilitate trade. The Baldrige Award addresses competitiveness factors either not addressed in ISO 9000 registration or addressed differently. These factors include a customer and market focus, results orientation, continuous improvement, competitive comparisons, a tie to business strategy, cycle time and responsiveness, integration via analysis, public responsibility, human resource development, and information sharing. Overall, ISO 9000 registration covers less than 10% of the scope of the Baldrige Award Criteria and does not fully address any of the 28 Criteria items. As a result, the national drive to improve competitiveness could be diminished. Companies required to or electing to seek ISO 9000 registration are encouraged to integrate their conformity efforts with the Baldrige Award competitiveness improvement framework.     

APPLYING SCENARIO‐DRIVEN STRATEGY TO INTEGRATE ENVIRONMENTAL MANAGEMENT AND PRODUCT DESIGN

The successful development of breakthrough products with environmental attributes can not only create competitive advantage through operations excellence but also benefit the environment. This paper proposes a comprehensive scenario‐driven method with detailed implementation steps for planning and developing breakthrough products with environmental attributes. A case study based on the development process of biotechnology products is presented to show the applications of the method and the resulting importance of flexibility as a key ingredient in operations strategy. The paper also discusses various operational, marketing, technological, economic, and environmental issues concerning the development of biotechnology products, an area that could have a significant impact on both human health and the natural environment.     

IMPLEMENTING INITIATIVES ON QUALITY: AN INTRODUCTION TO THE SPECIAL ISSUE ON TOTAL QUALITY MANAGEMENT

In the early 1980s, companies around the world, learning from the Japanese experience, saw that they could address their severe competitive problems related to productivity and quality only by looking at the entire set of processes and organizational relationships in the context of the customer's needs. This approach was termed total quality management (TQM). As companies pursue quality-related initiatives, they must deal with a number of issues; some of these issues are addressed here: measurement of benefits, feedback and recognition, work-teams, teaching continuous improvement, and enhancing the effectiveness of statistical process control charts.     

THE IMPACT OF UNIONS ON OPERATIONS STRATEGY

This paper explores the effect that unions have on a firm's ability to reengineer manufacturing processes. We begin by exploring the various effects that a union may have in a manufacturing environment. Next, we briefly review how unions may affect managerial initiatives to reengineer processes and improve manufacturing performance. The third section analyzes an existing database to test for differences in cycle time and manufacturing performance between union and nonunion firms. Finally, we discuss the implications of the study for future operations strategy research and note how a different form of union‐management relationships is beginning to evolve.     

MANUFACTURING STRATEGY ON THE “S” CURVE

The concept and techniques of “manufacturing strategy” offer managers the opportunity to use their production function as a strategic weapon in competition, an apparently attractive objective. Yet after about 25 years, the use of manufacturing in corporate strategy (MCS) as a management practice is not widespread. In contrast, however, in academic literature it appears to be flourishing and rapidly growing in popularity. This paper seeks to answer this apparent paradox, beginning with the history of MCS as it was developed as a theory of design to enable a manufacturing system to be focused on a key competitive task. Common criticisms of MCS, such as “tradeoffs,” “focus” and “undynamic,” are examined and refuted as valid reasons for its only modest usage. Instead, three “new” problems in the MCS concept and its techniques are suggested as genuine needs for the completion of the theory and for its becoming more universally understood and used by industrial managers.     

EVALUATING THE ECONOMIC COST OF ENVIRONMENTAL MEASURES IN PLANTATION HARVESTING THROUGH THE USE OF MATHEMATICAL MODELS

An important issue being discussed for Chilean pine plantation policies is the application of environmental protection measures when managing its timber areas. Typical measures, already in place in more developed countries, include imposing riparian strips and protecting fragile soils from the use of heavy machinery. While environmental protection measures have been considered vital for decades, so far there has been almost no attempt to quantify both the benefits and costs of these measures. This paper attempts to measure the costs associated with the main measures which can help both the forestry firms and the government evaluate the cost impact of the new environmental protection regulations being studied. The analysis for different environmental scenarios is carried out by modifying a mixed integer LP, currently used for tactical planning by one forestry firm.     

COMPETITIVE PRIORITIES: INVESTIGATING THE NEED FOR TRADE‐OFFS IN OPERATIONS STRATEGY

A heated debate continues over the need for trade‐offs in operations strategy. Some researchers call for plants to focus on a single manufacturing capability and devote their limited resources accordingly, while others claim that advanced manufacturing technology (amt) enables concurrent improvements in quality, cost, flexibility, and delivery. Yet there is little empirical evidence for or against the trade‐off model. In response, this study addresses the question: “To what extent do manufacturing plants view competitive priorities as trade‐offs?” We employ survey data collected from managers and operators in 110 plants that have recently implemented AMT. Our findings suggest that trade‐offs remain. However, perceived differences in competitive priorities are subtle and may vary across levels of the plant hierarchy.     

DRIVERS OF INTERNET PURCHASING SUCCESS

The development of the Internet as a business tool over the past 5 years has been phenomenal, causing a period of chaos and creative destruction. E‐commerce has been hyped as a catalyst for vast streamlining of the supply chain. Yet, in a time of such phenomenal change, the focus tends to be on the large picture. Many details of how a new technology should be or is employed tend to be unknown or ignored. However, as the technology matures and stabilizes, one of the primary factors that separate winners from losers is the way in which the technology is implemented and operated on a daily basis. This study examines the ways in which companies utilize the Internet to streamline their purchasing process. A survey of 416 customers of a major Internet retailer of commodity office supplies reveals important relationships between web site design, employee work environments, Internet strategy, and purchasing performance. Our sample of companies consists of firms that have ordered office supplies at least once using the Internet. Our data indicate that companies do realize performance benefits from utilizing the Internet as a purchasing tool. Furthermore, the data suggest factors that facilitate purchasing process improvements. These factors can be utilized by both buying and selling companies to improve their proprietary processes to maximize the benefits of e‐commerce as a purchasing tool.     

MANUFACTURING STRATEGY AND BUSINESS ORIGIN OF NEW VENTURE FIRMS IN THE COMPUTER AND COMMUNICATIONS EQUIPMENT INDUSTRIES

With the use of questionnaire data from owners, presidents, CEOs, and chairmen of boards and a logistic regression approach, we analyzed the manufacturing strategies of 64 new-venture firms in the computer and communications equipment manufacturing industries. We found statistically significant differences in manufacturing posture as a function of whether the new venture was corporate-sponsored or independent (i.e., new venture origin). The findings suggest that independent firms attack the market with superior product quality with the use of technology in the public domain. They offer a narrow range of products directed to a few large customers and do not make developing new products a primary issue. In contrast, corporate-sponsored tirms are less concerned with superior product quality but emphasize patented technology and new product development. They provide a broader range of products and service smaller customer orders.     

MANUFACTURING STRATEGY: AT THE INTERSECTION OF TWO PARADIGM SHIFTS

The concept of “manufacturing strategy” is still, in human terms, barely past adolescence. In years, it is younger than most of the MBAs who study it today. So it is not surprising that–like them–it has been undergoing almost continual growth and elaboration throughout its short life, as it tested itself against the real world and as that world evolved. Today it is facing perhaps the greatest challenge in its short history, as it finds itself in the crossfire of debates about core aspects of its two parent disciplines: manufacturing management and competitive strategy. This paper begins by briefly reviewing some of the key steps in the conceptual development of the manufacturing strategy paradigm, then describes the attacks now being directed at both the manufacturing management and the competitive strategy paradigms, and finally discusses the new perspectives that these two paradigm shifts are shedding on some familiar problems.     

THE CHALLENGE OF MANUFACTURING ADVANTAGE

In spite of the significant progress made by a wide range of manufacturing companies over the past decade, few senior executives in U.S. firms would point to manufacturing as a significant source of competitive advantage. This paper seeks to explore some of the basic reasons for this. It begins by providing a framework for manufacturing competitiveness. It then outlines a handful of characteristics that seem to have been pervasive in a wide range of manufacturing competitiveness programs over the past decade. In contrast to those characteristics, it uses three quite different organizations to illustrate a very different mode for pursuing manufacturing competitiveness. Finally, the paper concludes by outlining three elements that appear to be essential in the successful pursuit of manufacturing advantage.     

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.     

POM TEACHING AND RESEARCH IN THE 21st CENTURY

We offer a view of operations management in the future based on a mapping of the field's history. We discuss issues raised by this view of the future that we expect will affect those who will teach and conduct research in operations management.     

DEVELOPING SOPHISTICATED QUALITY IMPROVEMENT APPROACHES THROUGH BUSINESS-ACADEME COLLABORATIONS: INTRODUCTION TO THE SPECIAL ISSUE

The pursuit of better performance has led to a number of business-academe collaborations. These collaborators have developed a number of sophisticated approaches that go far beyond such traditional simple methods as benchmarking against the best company, Ishikawa diagrams on feedback and control, Pareto diagrams, incentive systems based solely on output or quality, standard process control charts, and separate treatment of control charts and product inspection. The authors in this special issue report on approaches like benchmarking industrial performance through industry studies; the use of an artificial-intelligence statistical-tree growing method to analyze complex customer service data; an incentive system based on the total quality management (TQM) concepts of continuous improvement, teamwork, adaptation to change, and a focus on customer satisfaction; and integration of product inspection and process control. Because of the continuing widespread interest in TQM, there is an opportunity to take stock of how successful TQM initiatives have been and how we should consolidate and further extend the knowledge in TQM. Two of the papers report on the gap between what organizations espouse as TQM and what they actually implement and on the literature on TQM.