Optimal timing of investments in advanced manufacturing systems under competition

Large initial investment in advanced manufacturing systems (AMS) makes it imperative to develop economic justification methods. Once the new system has been properly justified, a critical issue facing the firm is the optimal timing of the installation in an industry. In this paper we use a game-theoretic model by which the optimal timing of the investments in AMSs is analysed. The existence of timing equilibria is demonstrated and simple decision rules of optimal strategy are provided. Economic interpretations of the decision rules are subsequently made clear. Finally, illustrative examples are used to demonstrate the correctness and usefulness of the analysis.     

Distributed manufacturing support systems: the integration of distributed group support systems with manufacturing support systems

Current Manufacturing Support Systems (MSS), such as Computer-aided Manufacturing (CAM) Systems, Computer-aided Design (CAD) Systems, Computer Integrated Manufacturing (CIM) Systems, Material Resource Planning (MRP) Systems, and Manufacturing Accounting Control (MAC) Systems, are mostly independent systems that are operated in limited decision spaces, provide mainly formal and quantitative information, and thus pursue a goal of local optimization. To assist modern manufacturing in meeting the needs for integration, communication, collaboration, and decision making, we introduce the concept of integrating MSS with Distributed Group Support System (DGSS) into a Distributed Manufacturing Support System (DMSS). A rigorous system design approach is taken to model the manufacturing information requirements from a global perspective and pattern decision making processes within the structural (organizational design) and infrastructural (information system design) elements of manufacturing. The result is a conceptual DMSS design that provides an intelligent interface, accommodates incremental manufacturing integration, offers controllable message exchange facilities, and allows configurable communication networks.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

Re-distributed manufacturing and the food-water-energy nexus: opportunities and challenges

Abstract

Addressing the intersection of two important emerging research areas, re-distributed manufacturing (RDM) and the food-energy-water (FEW) nexus, this work combines insights from engineering, business and policy perspectives and explores opportunities and challenges towards a more localized and sustainable food system. Analysis centred on two specific food products, namely bread and tomato paste reveals that the feasibility and potential of RDM vary with the type of food product and the supply chain (SC) components. Physically, energy efficiency, water consumption and reduction of waste and carbon footprint may be affected by scale and location of production activities and potentials of industrial symbiosis. From the business perspective, novel products, new markets and new business models are expected in order for food RDM to penetrate within the established food industry. Studies on policies, through the lens of public procurement, call for solid evidence of envisioned environmental, social and economic benefits of a more localized food system. An initial integrated framework is proposed for understanding and assessing food RDM and the FEW nexus.     

Supplier involvement in integrated product development: evidence from a group of Italian SMEs

Integrated product development (IPD) is gaining increased attention from practitioners and the academic community as a source of innovation and competitive advantage. However undeniable the importance of the issue is as to how the different actors involved in the process interact among themselves and the supporting factors not being well understood even in the SME context, the availability of empirical research and a comprehensive framework to drive this research remains unavailable. This article contributes to these research gaps by providing theoretical and empirical findings. First, a research framework on IPD is identified. The proposed framework represents a conceptualisation of IPD principles as consisting of three groups of integration enablers, which aim to achieve high internal (among departments) and external (with suppliers and customers) integration: (a) organisational enablers, (b) technological enablers and (c) methodologies. Then, a multiple case study approach is used in order to empirically explore external integration with suppliers in product development in 22 SMEs from the machine tool sector.     

A critical investigation of Industry 4.0 in manufacturing: theoretical operationalisation framework

Increasing global competition on product quality and production costs, and the need for flexibility in production petition for transformed production processes which enable high level of connectivity and integration between business processes and systems. Much of the conventional computer- integrated efforts and advanced manufacturing technologies are limited in scope and restricted to only some organisational areas. Such limited scope, which stems from limited connectivity and integration between manufacturing and enterprise systems, confines the achievement of full potential of these systems within manufacturing. Industry 4.0, characterised by computing developments, can create a platform for addressing integration challenge through enabling comprehensive connectivity. Hence, this paper, through following deductive research paradigm and using systems theory as the theoretical base, aims to investigate recent academic research and industrial reports in the area of Industry 4.0 and smart manufacturing to provide detailed insights on execution of Industry 4.0, and to propose a theoretical framework for operationalisation of Industry 4.0 in manufacturing.     

Performance management practices in lean manufacturing organizations: a systematic review of research evidence

This paper provides the first systematic look into the existing research on performance management (PM) practices employed in lean manufacturing organisations (LMOs). It adopts a systematic review method to examine the evidence generated in the period 2004 – 2015 and uses a comprehensive PM framework to synthesise the findings. The results suggest that PM practices that have the most prominent role in LMOs are those that, firstly, are located closest to front-line actions and, secondly, explicitly address operational realities. This calls into question the primacy of accounting-driven controls in LMOs, suggesting that operational controls may be more effective than top-down accounting-based PM practices. The results also confirm the bias towards operational-level issues but suggest that LMOs may integrate the operational and the strategic levels by using PM practices that drive organisational learning through employee involvement and engagement.     

Supply chain reconfiguration opportunities arising from additive manufacturing technologies in the digital era

Abstract

The aim of this study is to explore the impact of additive manufacturing (AM) technologies on the configuration opportunities of supply chains (SCs) within the digital manufacturing era. To this effect, we first conduct a critical taxonomy of existing research efforts and then propose an integrated decision-making process for the design and management of SCs defined by digital manufacturing technologies. Following, we provide an integrated framework for future SC reconfiguration opportunities arising from the adoption of AM on a supply network setting. Our analysis demonstrates the significant ramifications of AM techniques on SC configuration and sustainability performance as opposed to conventional value networks; however, existing research is evidently limited due to scope related challenges and the inherent complexity at the manufacturing echelon of the respective supply networks.     

Implementation of S-DBR in four manufacturing SMEs: a research case study

Production planning and control systems (PPCs) are tools that have a major effect on the performance of manufacturing companies. An inappropriate determination of the applicability of PPCs could seriously jeopardise the ability to achieve competitive priorities. This mistake can be expensive for any company, but proper implementation is particularly critical for small and medium enterprises (SMEs), which are characterised by limited access to financial resources. Simplified Drum–Buffer–Rope (S-DBR) is a PPC control approach that is characterised by minimum detail in the planning stage and a primary emphasis on the control of execution. Therefore, this approach is a suitable choice for the highly variable context of SMEs. This study aims to explore the practical issues related to S-DBR implementation in four Ecuadorian SMEs through case study research. The case analysis within this study first identifies the choices made in the implementation process design within the four companies according to process and product characteristics. We then conduct a cross-case analysis to explore the effects of the S-DBR implementation process designs on a group of performance measures. Our research findings provide new insights into the S-DBR implementation process in the context of SMEs, and the effects of this approach on performance measures.     

High value manufacturing (HVM) in the UK: case studies and focus group insights

This paper studies the internal mechanisms that allow organisations to become high value manufacturing (HVM). Using a qualitative methodology, three UK manufacturing companies formed in-depth case studies with semi-structured interviews, observations and historical data. The HVM value matrix of Martinez and co-workers is used to categorise each organisation’s value proposition. Wider benchmarking of the three organisations was carried out against a focus group with an additional seven manufacturing organisations. Thus, data from 10 manufacturing organisations are included in this research. The cases follow the ‘customer intimacy’ HVM discipline. The business processes supporting these value propositions were identified. Interestingly, each organisation’s desired value proposition differs from their current one. ‘Technological integrators’ predominantly rely on new product development (NPD) and Strategy processes, whereas ‘Socialisors’ rely predominantly on Strategy and Customer Relationship processes. Companies can use the findings to better understand their current HVM value proposition and, where necessary, plan their transition to a future desired HVM value proposition.     

Improving operational plant performance in international manufacturing networks: the effects of integrative capabilities and plant roles

Abstract

This study adopts the resource-based view to examine how two integrative capabilities of a plant embedded in a manufacturing network enhance operational performance: the capability to connect with other plants in its manufacturing network (a networking capability, NC), and the capability to integrate manufacturing processes with new product development processes (a new product development capability, NPDC). Our model tests the indirect effect of NC on cost, quality, flexibility and delivery through NPDC. Furthermore, we test if the relationship between NC and NPDC depends on the strategic role of the plant. Using survey data from a sample of 521 plants, we confirmed the mediating effect of NPDC. However, the moderation effect was not confirmed. Our findings reveal that plants can deploy NPDC capabilities, fostered by NC, independently from their role in the network. This study contributes to the understanding of plant capabilities and plant roles in manufacturing networks.     

An integrated lean and green approach for improving sustainability performance: a case study of a packaging manufacturing SME in the U.K.

Abstract

Competitive landscape, informed consumers and stringent regulations have forced many manufacturing small- and medium-sized enterprises (SMEs) to focus on operational efficiency along with sustainability issues in recent years. While many manufacturing organisations have been taking lean initiatives for the past few years for operational excellence, an impulsive rush to adopt lean without a strategic deployment vision has led to scattered implementation of lean tools and projects without desired success. Many researchers and practitioners prescribe value stream mapping as a foundation for lean transformation initiatives; however, little empirical work is available on the symbiosis of lean and green paradigms to reap maximum benefits. This research, through a systematic methodology and a novel tool called Green Integrated Value Stream Mapping (GIVSM), integrates both paradigms in a case study on a U.K. packaging-manufacturing SME. Applying the GIVSM demonstrates that simultaneous deployment of lean and green paradigms have synergistic effect for improving both operational efficiency and environmental performance. In addition, continuous improvement framework with sustainable procurement is proposed to overcome the lean-green misalignments. This study also provides a guiding reference for practitioners to undertake similar improvement projects and identifies opportunities to expand this academic research on integrated lean-green approach into other industry sectors.     

Board leadership structure and diversity over CEO time in office: A test of the evolutionary perspective on Italian firms

An evolutionary perspective on CEO-board relations suggests that CEO objectives and interests change over time, and that board roles should shift accordingly, from CEO leadership development during the early stages of CEO time in office toward monitoring during the latest stages. This study examines how two board characteristics, board leadership structure and board diversity, shape innovation investment among Italian firms. Empirical results support the hypothesized effects, suggesting that the board’s effects are contingent upon CEO time in office.     

Understanding knowledge transfer in M&As: An integration of resource orchestration and social capital theories and evidence from UK acquiring firms

Whileknowledge transfer is one of the key components in determining Mergers and Acquisitions (M&A) success, the current M&A literature has produced inconsistent findings regarding its antecedents and consequences. To address this research gap, this study explores the roles of functional integration and shared goals in facilitating knowledge transfer, which will in turn determine M&A success. To provide a more nuanced understanding of knowledge transfer, this study examines bilateral knowledge flows (e.g., knowledge transfer to a target firm from the UK acquiring firm and knowledge transfer from a target firm to the UK acquiring firm). Our research framework is built upon two different theoretical perspectives, namely resource orchestration and social capital theories. Our propositions were tested empirically across a sample of 131 UK cross-border M&A firms. Our results reveal that the affirmative roles of functional integration and shared goals in increasing knowledge transfer both to and from a target firm are confirmed and that knowledge transfer to the target firm is deemed decisive for M&A success. Based on the findings, we discuss theoretical and practical implications, followed by limitations and future study consideration.     

Entrenchment in publicly traded family firms: Evidence from the S&P 500

Family involvement in corporate governance through ownership, management, and board membership presents a unique dilemma for understanding the strategic impetus and costs of entrenchment decisions. The presence of shared family ties and the family-centered goals of firm principals call to question the applicability of extant agency arguments regarding the nature and antecedents of managerial entrenchment. Exploring this, we develop and test a model of family firm-specific determinants (i.e., family ownership and family's involvement in management and governance) of entrenchment in publicly traded firms by drawing upon principal-principal agency theory. Findings of the empirical analysis of family owned S&P 500 firms suggest family firms are motivated to entrench managers when doing so supports the pursuit of family-centric goals. However, the extent to which entrenchment supports such goals varies at different levels of family ownership.     

On the versatility of Little’s Law in operations management: a review and classification using vignettes

Abstract

Despite Little’s Law being considered as one of the ‘laws’ of operations management, evidence of its application in an empirical context is diverse and diffuse. Hence, this paper aims to identify, classify and consolidate published empirical applications of Little’s Law in a systematic manner to better understand its versatility. This paper undertakes a systematic literature review of the databases of the five main publishers of operations management journals and snowball sampling for additional papers. A final sample of 128 empirical journal articles is identified and categorized. Tactical, medium-term decisions relating to capacity dynamics and operations re-engineering are the most popular categories. To give further insights into versatility, vignettes for each category are developed. The review and vignettes confirm Little’s Law as a highly relevant paradigm to operations management decisions due to its empirical versatility across levels, sectors and time domains. The paper suggests four factors to underline the empirical versatility of Little’s Law in operations management: applicability, utility, simplicity and visibility.     

Enhancement of sigma level in the manufacturing of furnace nozzle through DMAIC approach of Six Sigma: a case study

In this paper, a case study on implementing Define, Measure, Analyze, Improve and Control (DMAIC) phases of Six Sigma programme in a furnace manufacturing company is reported. When Six Sigma was developed at Motorola, it was encapsulated with DMAIC and belt-based training infrastructure. Since belt-based training is expensive, companies with less revenue have been implementing only DMAIC phases. In this background, the impact of implementing DMAIC phases was examined in the research narrated in this paper through the reporting of the case study mentioned above. As the result of implementing DMAIC phases, the sigma level increased from 3.31 to 3.67 in the case of drilling a hole in a component called ‘furnace nozzle’. This increase in sigma level proved that DMAIC phases are powerful enough to enable the companies with less revenue to perform at six sigma level quality and acquire competitive strength.     

The Role of Knowledge Bases in Complex Product Systems: Some Empirical Evidence from the Aero Engine Industry

In this paper we argue that the virtual corporation as understood in current management literature does not hold as a universal model throughout various industrial sectors. Complex product systems industries show peculiar features in terms of product characteristics, innovation dynamics and strategic and management options that may render the virtual corporation model inapplicable.The paper begins with a contrast between the simplistic neoclassical approach to the interpretation of the concept of knowledge and the more in-depth evolutionary view. The former understands knowledge as information and its production process and outcomes as easily decomposable. Based on this, advocates of virtual corporation claim the viability of outsourcing strategies based on simple economic factors. The evolutionary approach, on the other hand, considers knowledge as a system of processes deeply rooted in their contexts of production. Tacitness and non-decomposability of the knowledge production processes are highly emphasised in this view. In the light of this contrast and relying on a study of the aero engine industry we reinterpret the notion of virtual corporation showing its limits.     

Prioritising indicators in improving supply chain performance using fuzzy AHP: insights from the case example of four Indian manufacturing companies

Abstract

In this contribution, we aim to prioritise the indicators to enhance the organisational supply chain’s (SC) effectiveness from an industrial perspective. It will help industries to develop strategies for managing the SC effectively and ensuring improvement in performance continuously. To achieve this, this work proposes to use a two-phase research methodology. First, 36 SC performance improvement indicators are recognised from a literature survey and from field and industrial expert’s inputs. Secondly, a structural model is proposed using the fuzzy analytical hierarchy process (AHP) to prioritise the indicators strategically to improve the SC performance. The fuzzy AHP method helps determine the priority of concerns of the identified indicators under fuzzy surroundings. Inputs in this research are taken from four ancillary Indian plastic manufacturing firms. Research findings indicate that collaborations and information exchange dimension indicators obtained the highest priority in improving SC performance. The model proposed is considered very useful for the SC managers/practitioners/decision-makers to understand better and distinguish the essential SC performance improvement indicators and to take systematic decisions specifically to improve the performance of business in a SC context. Sensitivity analysis was conducted to examine the priority ranking of the indicators.