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Article
Publication date: 13 February 2007

B. Gopalakrishnan, A. Kokatnur and D.P. Gupta

The main objective in writing this paper and conducting this research is to enhance the productivity in manufacturing operations by making them cost effective.

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3104

Abstract

Purpose

The main objective in writing this paper and conducting this research is to enhance the productivity in manufacturing operations by making them cost effective.

Design/methodology/approach

This paper presents a target‐costing system and model developed for the turning operation and it has a user interface designed in Microsoft Visual Basic® with a database developed by using Microsoft Access®. An algorithm is developed to apply the concepts of target‐costing that selects the machining parameters and then determines the machining cost. A geometric programming model (Gopalakrishnan and Al‐Khayyal) was used in the development of this system.

Findings

The research determined that target‐costing models can be developed for the manufacturing industry and can be implemented in realistic manufacturing environment. The research also showcased the utility of the target‐costing model in terms of the underlying detailed system level parameters.

Research limitations/implications

The research focuses on one manufacturing process but can be extended to other manufacturing processes and business cost and profit centers for providing overall and enhanced benefits at the corporate levels.

Practical implications

The research details the development of a model that has been validated using practical shop floor data, hence implying its application in a wide variety of situations.

Originality/value

The original value of the paper lies in identifying the critical parameters and modeling approach towards target‐costing.

Details

Journal of Manufacturing Technology Management, vol. 18 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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Article
Publication date: 9 March 2012

Liang‐Chieh (Victor) Cheng and Edward E. Carrillo

The purpose of this paper is to investigate the effects of a commercial partnership in a project‐type supply chain. The research focuses on the performance of suppliers…

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2804

Abstract

Purpose

The purpose of this paper is to investigate the effects of a commercial partnership in a project‐type supply chain. The research focuses on the performance of suppliers who develop a partnering mechanism for procurement of complex manufacturing projects. In total, four supply chain metrics are evaluated: project scope change, ratio of actual‐to‐estimated project costs, gross profit margin, and delay in deliverable shipments. Hypotheses are formulated to contrast partnerships and arms‐length relationships for industrial procurement. Statistical results support the conclusion that supplier performances improve under partnership.

Design/methodology/approach

Four supply chain metrics were generated through review of literature and in‐depth field study. The authors utilized the supply chain management, project management, and principal‐agent theory literature to develop hypotheses to examine effects of instituting a partnership agreement. A case study approach was employed to collect financial and operational data from 167 projects among a manufacturing supplier and a group of customers that purchase industrial analyzer systems. Statistical techniques were employed for hypothesis testing.

Findings

The findings from the authors' empirical work support the prediction in partnership literature that suppliers' operational and financial performances improve after they and manufacturing customers jointly implement partnerships. A supplementary finding also suggests that a manufacturer should develop partnering mechanisms with suppliers to achieve higher performance for both the individual firms and the entire supply chain.

Research limitations/implications

This study, like other “before and after” analyses, encounters limitations on causality. Advanced techniques, e.g. cause‐effect investigation with richer data, are hence necessary to validate the causal relationships between performance metrics and their drivers. This study focuses only on the supplier's side of the supply chain and its partnership in a specific industrial setting. Future research may consider studying the joint performance by supplier‐customer dyads in commercial partnerships with variations of partnering agreements.

Practical implications

Partnerships motivate trading partners to engage in higher level of coordination. Transactional hazards can be reduced and performance may improve under the partnering mechanism. The manufacturer may design the procurement partnership as a collaborative mechanism, thus helping a partnering supplier and itself to obtain increased mutual gains.

Originality/value

The paper provides detailed information of a unique case study of the partnership in a project‐type supply chain, which is relatively new in the literature. Research streams on supply chain management, project management, and principal‐agent theory are integrated to evaluate supplier performance. Empirical results confirm partnership impacts on suppliers' business performance.

Details

Industrial Management & Data Systems, vol. 112 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

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Article
Publication date: 21 May 2018

Lars Schweizer and Andreas Nienhaus

Sensemaking models generally lack an objective determinant to distinguish between CEO fault and changes in systematic risk caused by exogenous negative shocks like a

Abstract

Purpose

Sensemaking models generally lack an objective determinant to distinguish between CEO fault and changes in systematic risk caused by exogenous negative shocks like a banking crisis. The interdisciplinary approach of this paper combines attribution theory with econometric time series analyses to provide an objective measure of exogeneity and persistence of a negative shock to an organization. The purpose of this paper is to address the exploratory research question, of how scapegoating by managers can be avoided by the use of an objective and empirical measurement and if the recent financial crisis can be seen as an exogenous shock to manufacturing firms.

Design/methodology/approach

By testing for stationarity with a structural break with an econometric time series analysis, the model helps to reduce agency costs during organizational crisis by effectively determining crisis causation and avoid scapegoating by managers.

Findings

By combining the sensemaking models of Haleblian and Rajagopalan (2006), Staw (1980), and Weick (1988), an integrated model of sensemaking in performance crises under the specific context of simultaneously occurring external crises is provided. By applying the authors approach the results suggest that the financial crisis of 2008/2009 has true exogenous adverse effects on US manufacturing firms.

Originality/value

The interdisciplinary approach encourages the integration of econometric time series analysis as an objective determinant in sense making models.

Details

Journal of Strategy and Management, vol. 11 no. 2
Type: Research Article
ISSN: 1755-425X

Keywords

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Article
Publication date: 23 October 2009

Ying‐Chin Ho and Chih‐Hsin Lin

The problem that original design manufacturing (ODM) companies encounter with the request for quotation (RFQ) process is that there is no effective and efficient…

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1468

Abstract

Purpose

The problem that original design manufacturing (ODM) companies encounter with the request for quotation (RFQ) process is that there is no effective and efficient methodology for them to formulate accurate and profitable RFQs. The purpose of this paper is to present a quality function deployment (QFD)‐, concurrent engineering (CE)‐, and target costing‐based methodology for ODM companies to formulate accurate and profitable RFQs.

Design/methodology/approach

From eight Taiwan electronics ODM companies, 15 people are interviewed to understand their current methods for formulating RFQs and the problems of these methods. Based on the interview results, it was decided to make use of the merits of QFD, CE, and target costing by integrating them into the proposed methodology.

Findings

A case study is presented to illustrate a successful application of the proposed methodology in a case company. The case study shows integrating QFD, CE, and target costing into the proposed methodology allows the authors to effectively and efficiently formulate an accurate and profitable RFQ for the case company.

Research limitations/implications

The interview sample quantity of this study is limited to eight Taiwan electronics companies, which is insufficient to represent all ODM companies in various industries. For the future research, it is suggested researchers collect more samples from different industries in order to verify the effectiveness of the proposed methodology in ODM companies from different industries.

Originality/value

This paper aims to integrate QFD, CE, and target costing to come up with a systematic ten‐step approach that can accurately formulate the three parts of an RFQ: the product specifications proposal, the product price quotation, and the product development schedule. By adopting this methodology, ODM companies can provide accurate and profitable RFQs to ODM customers, thus increasing their chances of obtaining ODM business.

Details

Journal of Manufacturing Technology Management, vol. 20 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

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Article
Publication date: 25 February 2014

Ali Taleb, Elicia Maine and Erik Kjeang

The purpose of this paper is to show how technical-economical cost modeling can help in steering research and development to target key production cost elements of new…

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1048

Abstract

Purpose

The purpose of this paper is to show how technical-economical cost modeling can help in steering research and development to target key production cost elements of new products based on emerging technologies.

Design/methodology/approach

The authors demonstrate the development and use of a technical-economic cost model (TCM) of the proton exchange membrane (PEM) in fuel cells to steer research to produce more economical and reliable products. A TCM is developed to depict how the production cost per unit varies depending on the different fabrication methods, production rate limitations, material selection, labor distribution, energy consumption, financial parameters and the target production volume. By using such an approach in the design, research time and resources can be saved by prioritizing R&D and production scale-up options at an early stage.

Findings

The results of this study show the importance of applying technical-economic cost model (TCM) techniques on early stage research projects to steer the development for resolving key problematic figures. As a case study, a cost analysis platform has been established to apply this technique by analyzing different manufacturing and R&D options for producing durable PEM fuel cells. The projected manufacturing cost of the PEM is found to be lower than previously estimated and the enhanced durability does not significantly impact this production cost.

Originality/value

Production is an important factor in informing NPD targets and R&D direction. And yet it is difficult to estimate scaled up production cost for prototype products and components in the R&D lab. Technical-economic cost models (TCM) are a tool to assist decision-making in technology portfolio management and NPD.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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Article
Publication date: 17 February 2020

Anulekha Banerjee and Rajib Dasgupta

The consumer-based study was conducted among the population of Kolkata metropolis to assess the impact of corporate social responsibility (CSR) practices on the purchase…

Abstract

Purpose

The consumer-based study was conducted among the population of Kolkata metropolis to assess the impact of corporate social responsibility (CSR) practices on the purchase intention of selected cooking oil brands.

Design/methodology/approach

Data were collected from a questionnaire based survey on 322 respondents residing in Kolkata metropolis. Reliability of the scales was ascertained by Cronbach’s alpha values. Kendall's W test was used for rank analysis. Pearson’s correlation was examined to correlate the cognitive criteria. Factor analysis was used to sort out influential cognitive criteria which were compared between genders by the Kruskal–Wallis H test. The involvement of CSR components in enhancing the brand equity was analysed by multiple linear regression.

Findings

The brands vouching for the cause of health and nutritional value of the society attained significant loyalty and generate considerable brand association. The regression model predicts a socially accepted cooking oil brand to be one which addresses health, transparency and ethics in unison.

Research limitations/implications

The study was restricted within the resident population of Kolkata metropolis which ratifies the CSR perception of a confined mass.

Practical implications

The study delineates the plausible avenue of CSR investments to touch the cognitive centre of the consumers’ mind.

Social implications

The consumers expect to embrace a healthy yet reasonably priced cooking oil brand which imparts a notion to address multiple social causes.

Originality/value

The study identifies the strategic CSR attributes which might influence the mind of the consumers while they select cooking oil brands for household use.

Details

Social Responsibility Journal, vol. 17 no. 1
Type: Research Article
ISSN: 1747-1117

Keywords

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