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Building industrial clusters is getting much more political attention and strategic orientation in all developing countries. This study started by revising the conceptual and…
Abstract
Building industrial clusters is getting much more political attention and strategic orientation in all developing countries. This study started by revising the conceptual and theoretical frameworks for industrial clusters, followed by some insights and contributions about empirical bases for clusters' dynamics and processes. The study focused on the case of Agadir Agreement between four Arab countries (Egypt, Jordon, Morocco, and Tunisia), which was initiated after the Euro-Mediterranean partnerships, and the rationale of the agreement was based on the concept of cumulative value-added origin. The study based its methodology on analyzing the international and bilateral trade flows of six industrial goods from the automotive sector among the four countries and with the EU countries to detect the degree of industrial collaboration and the achieved success of each country in this sector. The study indicated that the four countries used the concept of industrial clusters for economic development, but the results of the analysis showed that till now Agadir Agreement only achieved a shallow integration, while failed to deeply integrate as one big collaborative industrial cluster.
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John F. Kros, Mauro Falasca and S. Scott Nadler
To analyze the impact of the adoption of just‐in‐time (JIT) production systems by different equipment manufacturers (OEMs) on the inventory profiles of their suppliers.
Abstract
Purpose
To analyze the impact of the adoption of just‐in‐time (JIT) production systems by different equipment manufacturers (OEMs) on the inventory profiles of their suppliers.
Design/methodology/approach
The research is designed to examine five financial measures of inventory management performance over the years 1994‐2004. Three specific industry sectors where OEMs have adopted and implemented JIT principles are studied. These sectors include the automotive, electronics, and aircraft industries. A one factor analysis of variance is employed to the five hypotheses and Tukey's post‐hoc test is used to interpret statistical pairwise differences between level means.
Findings
Overall, the research finds that OEM suppliers in the automotive, electronics, and aircraft sectors have shown mixed results in the impact JIT implementation has had on inventory performance measures.
Research limitations/implications
The research focuses on three industrial sectors over approximately a ten year time frame that may limit its generalizability.
Practical implications
The processes that influence the reduction in inventory levels may be in fact more complex and strategic in nature than an OEM adopting a JIT inventory policy. In general, strategic changes within the supplier organization would have to drive process improvements that lead to inventory reductions.
Originality/value
The paper provides focused research in an area that has received little attention in the current literature and is very topical to all academics and business professionals interested or involved in the area of JIT systems.
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Samira Keivanpour, Daoud Ait Kadi and Christian Mascle
This paper aims to address the different aspects of end-of-life (EOL) aircraft problems and their effects on original manufacturer’s supply chain. Aircraft manufacturers, in the…
Abstract
Purpose
This paper aims to address the different aspects of end-of-life (EOL) aircraft problems and their effects on original manufacturer’s supply chain. Aircraft manufacturers, in the greener aviation context, need to care about the footprint of planes at the EOL. Considering the challenges in EOL aircraft recovery, the reverse logistics and green supply chain solutions in the other industrial sections cannot be applied in the aerospace industry. A conceptual framework with four elements, supply chain competency, governance policy, relationship in supply chain and aerospace industry context, provides a basis for assessing the opportunities and challenges of the green supply chain in this industry.
Design/methodology/approach
The basic research method utilized in this paper is the literature review. The literature review is a research methodology that includes examining books, journals, conference proceedings and dissertations for available information on the area of research. The research area regarding EOL aircraft is new. A substantial amount of literature exists in the field of end-of-life vehicle, but the main content of literature about the aircraft recycling can be obtained via relatively few literature, technical reports, news and industrial experts’ opinions. The literature is complete in some respects while inadequate in others. A considerable amount of information has been gathered through graduate student projects. The other information has been collected via contacts with professionals involved in an EOL aircraft recycling project. The basis for this methodological framework comes from a research process proposed by Mayring (2010) that emphasizes on four steps: material collection, descriptive analysis, category section and material evaluation.
Findings
This paper addresses the opportunities and challenges of applying a green supply chain for aircraft manufacturers and analyzes the different aspects of aircraft at the EOL in the context of green supply chain.
Research limitations/implications
This study enriches the literature by identifying EOL aircraft value chain analysis in the sustainable development context. It provides an introduction to a fresh research theme and sheds some light on green supply challenges in the aerospace industry.
Practical implications
The proposed conceptual framework in this paper helps practitioners to realize the opportunities and challenges of aircraft manufacturers in applying long-term strategies with respect to EOL aircrafts. The proposed framework helps manufacturers to evaluate different perspectives of the EOL aircraft problem. Moreover, the current contribution of aircraft manufacturers into EOL projects is not in a systematic structure and performed through several managerial and professional meetings. The proposed framework in this study is a valuable tool to evaluate the different opportunities and challenges in an organized way.
Originality/value
This work provides a valuable framework for future research related to green supply chains in the aerospace context. It also aids practitioners to realize the EOL aircraft problem in the context of the green supply chain, considering the opportunities and challenges.
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Based on a lecture prepared as part of the celebration of Cranfield University's 50th anniversary. After briefly reviewing the early years, including Cranfield University's entry…
Abstract
Based on a lecture prepared as part of the celebration of Cranfield University's 50th anniversary. After briefly reviewing the early years, including Cranfield University's entry into this technology, discusses the nature of this industry, Some of the technology drivers, including environmental concerns, are examined to provide a background against which the development and the future of the industry can be considered. This is followed by a brief survey of some of the possible new civil aero gas turbine applications over the next 50 years, both the very likely and some curiosities. Finally, the changes that are likely to occur within the industry as a result of wider economic and political trends are considered, as well as the implications for those working within the industry. The development of the civil aero gas turbine has contributed, in large measure, to today's, US$ 300 billion civil aviation industry and is rightly seen as one of mankind's major engineering achievements. A single paper cannot do justice to this industry.
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The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits…
Abstract
Purpose
The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits, motivation, and challenges of implementing lean manufacturing practices.
Design/methodology/approach
The research objectives were achieved by conducting a qualitative multicase study approach. Fourteen Indian automotive component manufacturing small and medium-sized enterprises (SMEs) were chosen based on their different product offerings as well as differing approaches to the introduction and implementation of lean initiatives. Data were collected through in-depth, semistructured interviews supported by shop-floor observations.
Findings
The findings from the present study suggest that some of the participating automotive component manufacturing SMEs have a relatively good understanding of lean concepts and philosophy. However, there is room for further improvement for most SMEs. Major top five lean practices being implemented were found to be cellular manufacturing, total productive maintenance, 5S, work standardization, and quality management practices. Also, leadership and organizational culture were found to be crucial factors for the success of lean manufacturing.
Research limitations/implications
The fact that the data collected for the research study is based on subjective business evidence obtained from company representatives comprises the main limitation of the present study. So, the results should be considered with caution, as far as the lean adoption in Indian automotive component manufacturing sector is concerned.
Practical implications
Based on the present study, suggestions can be made regarding the successful adoption of lean principles, not only for the participating SMEs but also for the whole of the automotive component manufacturing sector. More specifically, by determining the strength and weakness of automotive component manufacturing SME's effort to adopt lean, suitable managerial initiatives can be undertaken by these companies as well as the whole sector to fully adopt lean and derive the respective benefits.
Originality/value
This paper explores the status of lean adoption in Indian automotive component manufacturing SMEs. Considering the unique characteristics of the automotive component manufacturing industry, the present research would be helpful for making strategies to implement lean in automotive component manufacturing industry setups.
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Marc Wouters, Susana Morales, Sven Grollmuss and Michael Scheer
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and…
Abstract
Purpose
The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).
Methodology/approach
This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.
Findings
The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.
Research limitations/implications
This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.
Originality/value
This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.
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W.W.A. Beelaerts van Blokland, M.A. Fiksiński, S.O.B. Amoa, S.C. Santema, G.‐J. van Silfhout and L. Maaskant
The traditional value chain has changed under the influence of globalisation, lean thinking and the value leverage towards suppliers in the supply chain. The leverage of value by…
Abstract
Purpose
The traditional value chain has changed under the influence of globalisation, lean thinking and the value leverage towards suppliers in the supply chain. The leverage of value by the focal original equipment manufacturer (OEM)‐company to the supply chain has caused the focal OEM‐company to transform into a large‐scale system integrator (LSSI). The LSSI was defined according to the Petrick's definition. Indicators that measure the value‐leverage by these LSSI companies have not been found in literature. The purpose of this paper is to describe indicators that measure value‐leverage and illustrates that LSSI companies in the aerospace industry have a value‐leverage capability, using these indicators.
Design/methodology/approach
The authors' main research question is: “How to measure value‐leverage by LSSIs in the aerospace industry?”. As value‐leverage indicators have not been studied before, a literature study was carried out to develop a set of indicators which were tested in a quantitative analysis, using secondary data from 41 aerospace companies. Second, the value‐leverage indicators were applied to the aircraft LSSIs. The industry samples consisted of the global companies in the aircraft OEM industry and the relevant financial and company data were collected from the companies' public financial data, spanning a time frame of 14 years (1996 to 2009). A case study was performed on large‐scale aircraft system integrators, as a sample of the aerospace OEM industry, to demonstrate the effects of value‐leverage by aircraft LSSI companies.
Findings
With the new indicators, this research shows value leverage of aerospace OEMs and aircraft LSSIs as a sub group of the sample. The related indicators showed a change in leverage over time, indicating the leverage capability of aerospace OEMs. More in‐depth analysis on aircraft LSSI companies showed that aircraft LSSI with high correlation on the value‐leverage variables are more in value balance compared with aircraft LSSI companies scoring lower on the variables.
Research limitations/implications
This research has been limited to the aerospace OEMs. Data from secondary (public) sources were used, such as financial reports over a period of 14 years. Further research is necessary to develop indicators for other sectors of industries, such as automotive, medical instruments and construction, as well as to further improve the understanding of the outcomes of this study.
Practical implications
The new indicators measure value‐leverage of aerospace OEMs in general and aircraft LSSI companies. These companies could be compared on their capability of value‐leverage. Management of these firms can use the indicators to further improve their capability of value‐leverage on the supply chain regarding co‐development and co‐production of aircraft and related systems.
Social implications
It is useful for the executive management of aircraft LSSIs to balance the value leverage of their companies regarding R&D, customer demand and supply chain based production.
Originality/value
The paper identifies indicators that measure the capability of the aerospace OEMs to leverage value on supply chains. The found indicators form a preliminary model, which contributes to the usage of theories on lean manufacturing, supply chain management, value networks and open innovation.
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Robert de Souza, Albert Wee Kwan Tan, Hafidzaturrafeah Othman and Miti Garg
The purpose of this paper is to study the process, network, skills and practices of service parts logistics organizations in the Asia Pacific region. Specifically, it attempts to…
Abstract
Purpose
The purpose of this paper is to study the process, network, skills and practices of service parts logistics organizations in the Asia Pacific region. Specifically, it attempts to propose a new framework for service parts logistics management based on interview inputs from several leading automotive and aerospace companies. This paper also seeks to identify the trends and opportunities for service parts logistics in Singapore.
Design/methodology/approach
Companies from aerospace and automotive industries involved in service logistics activities were involved in the study. Data were obtained primarily through interviews with key executives of the company.
Findings
This paper summarizes some of the industry findings on service parts logistics in the Asia Pacific region. To succeed in the service logistics business, companies should not focus on cost factors alone. Instead, companies should adopt the proposed framework and look into other factors.
Research limitations/implications
The research is limited to companies in the aerospace and automotive industries only.
Practical implications
This framework was drawn from industry inputs and can be easily applied in decision making.
Originality/value
The paper provides a new framework to assist decision makers in deciding where a company should locate its service part logistics hub.
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Considers how far the aerospace industry has travelled on the long journey towards lean and agile manufacturing. Starts by comparing the industry with a well‐established model of…
Abstract
Considers how far the aerospace industry has travelled on the long journey towards lean and agile manufacturing. Starts by comparing the industry with a well‐established model of a lean and in some cases agile manufacturing system already well established in the automotive manufacturing industry. Makes some attempts to overcome the difference in output volume of the two industries. Asks whether lean manufacturing can be applied to the aerospace industry. Draws on observations made both by academics and during visits to aerospace supply companies. Evidence is put forward as to deployment of lean practices in the industry and why lean manufacturing must be deployed throughout the industry. Focuses on the tentative steps towards the first phases of agile manufacturing, through Lean production, in an industry that produces a high technology leading‐edge product using outdated manufacturing systems.
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