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1 – 10 of over 7000Kasra Ferdows and Fritz Thurnheer
The purpose of this paper is to introduce the notion of fitness in production as something different from leanness and show that building fitness puts a factory on a course of…
Abstract
Purpose
The purpose of this paper is to introduce the notion of fitness in production as something different from leanness and show that building fitness puts a factory on a course of developing cumulative capabilities and improving its ability to respond to changing market and business conditions.
Design/methodology/approach
The paper examines the process of design, launch, and management of a fitness program in 42 factories of the Hydro Aluminum Extrusion Group on five continents between 1986 and 2001. The design was based on the “sandcone model” proposed by Ferdows and DeMeyer but the sequence of capabilities was modified to improve safety, reduce process variability, codify and share tacit production know‐how, improve responsiveness, and improve labor and machine efficiency.
Findings
Most factories showed improvements higher than industry average in these capabilities during the 15 years. Moreover, they improved the capabilities listed earlier in the above sequence faster than those listed later, indicating that they were becoming more fit.
Research limitations/implications
Observations were in only one company and industry, which limits general applicability of the model. However, measurements were taken over a relatively long period, factories were spread on five continents, and the authors had access to the actual data during the 15 years, which together provided a unique opportunity to gain deep insights from this case. Future research should test the applicability of the model in other industries and companies.
Practical implications
A fitness regimen provides a roadmap for improving core capabilities in a factory. It is different from building leanness. Fitness helps the factory become leaner, but the opposite is not always true. A factory can become too lean but never too fit.
Originality/value
This paper is the first, to the authors' knowledge, to introduce the notion of fitness in production in the literature. Results observed in this case suggest that a better understanding of how factories become fitter provides insights into some of the deeply ingrained practices of superior manufacturers, especially those that stay competitive over long periods.
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Samarth D. Patwardhan, Fatemeh Famoori and Suresh Kumar Govindarajan
This paper aims to review the quad-porosity shale system from a production standpoint. Understanding the complex but coupled flow mechanisms in such reservoirs is essential to…
Abstract
Purpose
This paper aims to review the quad-porosity shale system from a production standpoint. Understanding the complex but coupled flow mechanisms in such reservoirs is essential to design appropriate completions and further, optimally produce them. Dual-porosity and dual permeability models are most commonly used to describe a typical shale gas reservoir.
Design/methodology/approach
Characterization of such reservoirs with extremely low permeability does not aptly capture the physics and complexities of gas storage and flow through their existing nanopores. This paper reviews the methods and experimental studies used to describe the flow mechanisms of gas through such systems, and critically recommends the direction in which this work could be extended. A quad-porosity shale system is defined not just as porosity in the matrix and fracture, but as a combination of multiple porosity values.
Findings
It has been observed from studies conducted that shale gas production modeled with conventional simulator/model is seen to be much lower than actually observed in field data. This paper reviews the various flow mechanisms in shale nanopores by capturing the physics behind the actual process. The contribution of Knudson diffusion and gas slippage, gas desorption and gas diffusion from Kerogen to total production is studied in detail.
Originality/value
The results observed from experimental studies and simulation runs indicate that the above effects should be considered while modeling and making production forecast for such reservoirs.
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Startups are associated with innovation, emerging technologies, digitalization and disruptive business models. This article aims to provide a better understanding of startups in…
Abstract
Purpose
Startups are associated with innovation, emerging technologies, digitalization and disruptive business models. This article aims to provide a better understanding of startups in logistics and supply chain management, organizes the contemporary discussion around startups in the supply chain ecosystem and outlines opportunities for future research.
Design/methodology/approach
This study draws on the prior supply chain, logistics and entrepreneurship literature and discusses key themes along the six identified startup issues. Furthermore, it proposes several perspectives and theories for grounding future research.
Findings
This study discusses the roles and success factors of startups in the supply chain ecosystem. It lays out how startups need to organize their own supply chains, how supply chain management (SCM) startups incubate and accelerate their ventures, the financing of SCM startups, as well as their positions as service providers, suppliers and customers.
Originality/value
This research brings together the sparse and dispersed literature on startups in the supply chain ecosystem, motivating scholars to increase the involvement of startups as important stakeholders in SCM research.
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Daryl John Powell, Désirée A. Laubengaier, Guilherme Luz Tortorella, Henrik Saabye, Jiju Antony and Raffaella Cagliano
The purpose of this paper is to examine the digitalization of operational processes and activities in lean manufacturing firms and explore the associated learning implications…
Abstract
Purpose
The purpose of this paper is to examine the digitalization of operational processes and activities in lean manufacturing firms and explore the associated learning implications through the lens of cumulative capability theory.
Design/methodology/approach
Adopting a multiple-case design, we examine four cases of digitalization initiatives within lean manufacturing firms. We collected data through semi-structured interviews and direct observations during site visits.
Findings
The study uncovers the development of learning capabilities as a result of integrating lean and digitalization. We find that digitalization in lean manufacturing firms contributes to the development of both routinized and evolutionary learning capabilities in a cumulative fashion.
Originality/value
The study adds nuance to the limited theoretical understanding of the integration of lean and digitalization by showing how it cumulatively develops the learning capabilities of lean manufacturing firms. As such, the study supports the robustness of cumulative capability theory. We further contribute to research by offering empirical support for the cumulative nature of learning.
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Mantas Vilkas, Inga Stankevice and Rimantas Rauleckas
Cumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery, flexibility and…
Abstract
Purpose
Cumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery, flexibility and cost. When innovation capabilities are excluded from the framework, the models are incapable of explaining how companies sustain substantive capabilities in a changing environment. Responding to this gap, the purpose of this paper is to propose and test a “sand cone” cumulative capability model that includes the innovation competitive performance alongside the competitive performance of quality, delivery flexibility and cost.
Design/methodology/approach
Two competing cumulative models were proposed. The extended cumulative capability model hypothesizes the development of innovation in sequence with other competitive performance dimensions. The affected with innovation cumulative model hypothesizes innovation performance as a predecessor of other performance dimensions. The models were tested using a multimethod approach on a representative sample of 500 manufacturing companies. An analysis of correlations among competitive performance, frequencies of plants following prescribed sequences, fit statistics of covariance-based structural equation modeling and analysis of strength and statistical significance of path coefficients enabled us to select a model that best represents the collected data.
Findings
The findings reveal that innovation competitive performance operates as a predecessor of quality, delivery, flexibility and cost and is developed in relation to these performance dimensions. The modified model also provides a theoretical explanation of how innovation performance helps to sustain reliable production systems that can perform consistently over time within a tolerable range of quality, delivery, flexibility and cost performance.
Practical implications
The results are significant for practitioners, especially for companies that are operating in volatile environments because the results provide insight on how to develop innovation competitive performance in relation to quality, delivery, flexibility and cost performance.
Originality/value
This study extends the cumulative capability models with innovation competitive performance. It advances the contingency approach on cumulative capability models.
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Nan (Chris) Liu, Aleda V. Roth and Elliot Rabinovich
Extant manufacturing strategy research dichotomizes the trade‐off model and the cumulative model, but fails to explain each strategic result. The purpose of this paper is to…
Abstract
Purpose
Extant manufacturing strategy research dichotomizes the trade‐off model and the cumulative model, but fails to explain each strategic result. The purpose of this paper is to propose four key antecedents of a trade‐off versus a cumulative model by manufacturing business units (MBUs), and in turn, their association with business performance.
Design/methodology/approach
The authors first review literature pertaining to the history and major themes of manufacturing strategy. Next, the authors present a theoretical model with explanations of the methodology and research design used. The model is empirically tested, and conclusions, managerial implications, and future research opportunities that stem from this research effort are provided.
Findings
Strategic time orientation, as well as manufacturing practices of supply chain integration intensity and advanced manufacturing technology, are empirically found to be associated with MBUs' combinative competitive capabilities. More specifically, manufacturers following these practices are more apt to realize higher levels combinative capabilities, as depicted by the cumulative model.
Originality/value
The paper shows that these manufacturing practices may extend the time within which the MBU reaches its capability frontiers, and therefore, increase the odds that it can exploit its current resources. Moreover, MBU size negatively moderates the relationship between advanced manufacturing technology and the cumulative model.
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Irina Farquhar and Alan Sorkin
This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative…
Abstract
This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.
Kwasi Amoako‐Gyampah and Jack R. Meredith
The purpose of this paper is to test the cumulative capabilities theory of manufacturing strategy against the capabilities tradeoffs theory in a less‐developed economy. It also…
Abstract
Purpose
The purpose of this paper is to test the cumulative capabilities theory of manufacturing strategy against the capabilities tradeoffs theory in a less‐developed economy. It also aims to test whether the sequential development of capabilities follows the same order prescribed in the sand cone model.
Design/methodology/approach
Specific hypotheses on the relationships among the four manufacturing strategy components of cost, delivery, flexibility, and quality were stated. Data were collected from 126 manufacturing firms in Ghana. Statistical analyses included correlation, factor analysis, and multiple regression analysis.
Findings
As with previous studies, the evidence here supports the cumulative capabilities theory. However, tradeoffs between the capabilities of quality, cost, delivery, and flexibility were not found. In addition, the sequence of capability development was found to be different from that in developed economies, with cost being second in importance after quality. This is postulated to be due to the substantially different economic conditions in Ghana.
Practical implications
The findings of this research provide guidelines to managers, particularly in developing economies, on the sequence of manufacturing capability development that is most likely to occur as they seek lasting improvements in manufacturing performance.
Originality/value
This paper provides findings from a less‐developed economic environment that is typically not included in manufacturing strategy research – Ghana. The consistency of the results with those obtained in more advanced economies provides additional evidence for the cumulative capability model.
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Mattias Hallgren, Jan Olhager and Roger G. Schroeder
The purpose of this paper is to present and test a new model for competitive capabilities. Traditionally, a cumulative model has been viewed as having one sequence of building…
Abstract
Purpose
The purpose of this paper is to present and test a new model for competitive capabilities. Traditionally, a cumulative model has been viewed as having one sequence of building competitive capabilities in a firm in support of market needs, including quality, delivery, cost efficiency and flexibility. Although appealing as a conceptual model, empirical testing has not been able to fully support the cumulative model. This paper acknowledges the need for a hybrid approach to managing capability progression. It brings together the literature on trade‐offs, cumulative capabilities, and order winners and qualifiers.
Design/methodology/approach
A new hybrid approach for modelling competitive capabilities is tested empirically using data from the high performance manufacturing (HPM) study, round 3, including three industries and seven countries – a total of 211 plants.
Findings
The hybrid model shows significantly better fit with the data from the sample than the cumulative models suggested by previous literature. Empirical support is found for the traditional perception that a high level of quality is a prerequisite for a high level of delivery performance. However, cost efficiency and flexibility do not exhibit a cumulative pattern. Instead, the results show that they are developed in parallel. The findings suggest that a balance between cost efficiency and flexibility is built upon high levels of quality and delivery performance.
Research limitations/implications
Since we limit the empirical investigation to three industries and seven countries, it would be interesting to extend the testing of this model to more industries and countries. This research shows that combining perspectives and insights from different research streams – in this case, trade‐off theory and the concepts of cumulative capabilities, and order winners and qualifiers – can be fruitful.
Practical implications
The results of this paper provides managers with guidelines concerning the configuration of competitive capabilities. First, a qualifying level of quality needs to be attained, followed by a qualifying level of delivery. Then, a balance between potential order winners, i.e. cost efficiency and flexibility, needs to be attained.
Originality/value
This paper presents a new approach to modelling competitive capabilities that synthesises previous research streams and perspectives from cumulative capabilities, contesting capabilities (trade‐offs), and order winners and qualifiers.
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Yen-Tsang Chen, Ronaldo Gomes Dultra-de-Lima, João Mário Csillag and José Carlos Tiomatsu Oyadomari
The purpose of this paper is to investigate if the organization competitive orientation can really make firms emphasize different internal capability. This paper aims to revisit…
Abstract
Purpose
The purpose of this paper is to investigate if the organization competitive orientation can really make firms emphasize different internal capability. This paper aims to revisit and extend the study proposed by Fleury and Fleury (2003).
Design/methodology/approach
The survey instrument was employed to collect the sample composed by 163 companies from different sectors of Brazilian market. Additionally, several statistic techniques were applied such as cluster analysis, ANOVA test and hierarchical regression analysis to investigate the phenomenon.
Findings
It was observed that three possible clusters can be built based on cumulative capabilities perspective and the Operation oriented group has no emphasis on production, logistic nether R & D capability, while other two clusters have a distinctive attentions on their internal capabilities.
Research limitations/implications
The limitation of this research lies in using perceptual scale for performance and few constructs with one item for measuring. On the other hand, this research has revisited the taxonomy topic based on cumulative capability perspective and discussed the trade-off concepts assumed in past studies.
Practical implications
This study has demonstrated the absence of systematic strategy implementation of those that are considered Operational oriented. Additionally, the authors have demonstrated that market share and customer satisfaction performance are impacted by different competitive priority as well as internal capability.
Originality/value
The authors reviewed the work proposed by Fleury and Fleury (2003), and went further in proposing a taxonomy complementation suggested by them. Additionally the authors discussed the assumptions of the taxonomies that have been adopted up today and explored this issue using cumulative capabilities concept. This work is based on competitive orientations, internal capability and cumulative capabilities suggested by seminar papers.
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