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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).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

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.

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.

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.

The evaluation of time-based performance is a valued approach in the lean management thinking which is based on delivering value from customer's perspective. This approach contributes for long-term competitiveness and success in today's business environment. The focus of this study is to analyse the cycle time and manufacturing lead time with value stream mapping (VSM) in the preparatory stage of the textile fabric manufacturing process and to identify and improve the non-value adding activities in the value chain (VC). The study presents an insight on the translation of performance improvement across functions and how upstream supply chain (SC) segments can be linked in the performance improvement program. It also covers how the application of VSM improves visibility and planning flexibility in textile fabric manufacturing process.

The time-based performance was evaluated using VSM and recording of the activity times in the existing process. The impact of the quality of supplier's raw material was also measured contributing to identify the strategy for procurement and the means to establish a feedback system to the upstream segments of the SC. The methodology of VSM, observation of the practice and the expertise of the individuals involved with the process were utilised to develop the value stream maps and to identify value adding activities, non-value adding activities, existing gaps and plans for improvement.

The means for improving the time-based performance were identified and their impact was measured. The factors responsible for improvement are related to the production system and with the procurement strategy. The improvement was achieved in terms of available capacity utilisation, balancing the work flow in the preparatory stages, visibility of the process by measuring its capability and flexibility for the planning function. The study revealed that the effectiveness and enhancement of VSM and related tools should be adopted to address the issue of limiting success rates of long term and repeating application of such tools. Continuous improvement, innovations and the systematic embedding of VSM in the process life cycle provide the ways for achieving long-term success.

The paper presents a real and in-depth study on the application of VSM in the textile manufacturing process. The scope of the study is broad; it covers activities across functions with actual estimates of activity times in the manufacturing process for the focused value streams. It offers researchers the opportunity to analyse the translation of productivity improvement across functions and how upstream SC segments can be linked in a performance improvement program.

The study offers useful insight for the managers in textile manufacturing and other sectors for improving the time-based performance and achieving higher utilisation of capacity. It identified the production factors and their impact on warping and sizing cycle time in selected value streams and those which share common activities. It also identified the directions for future research when repeating the application of VSM in the continuous improvement cycle. Furthermore, since the industries need to progress towards advanced systems including Industry 4.0 standards, adoption of advanced VSM tool with relevant technology can align their production systems to develop the required capability. This will also bring a sustainable competitive advantage in the system.

The focused sector is stagnant in terms of productivity and innovation. The adoption of the advanced tools can facilitate the implementation of continuous improvement and innovation strategies.

The main focus of this study is to analyse and improve the cycle time in the preparatory stage of the fabric manufacturing process. This has impact on other important and tangible measures including capacity utilisation and work flow and intangible measures including production planning flexibility and process visibility. The improvement impact is across departments.

The purpose of this paper is to demonstrate the application of vendor rationalization strategy for streamlining the supplies and manufacturing cycle time reduction in an Indian engineer-to-order (ETO) company. ETO firms are known for a large number of vendors, co-ordination hassles, rework problems and its impact on cycle time and operational excellence.

The research demonstrates the case-based application of Kraljic’s matrix for supply and leverages items, on-the-job observations, field visits, discussions and analysis of supplies reports.

The study guides on the rationalization of supplies and the necessary strategic alignments that can significantly reduce supply risk, costs, manufacturing and delivery cycle time along with co-ordination hassles. The study depicts the challenges of ETO environment with respect to supplies, and demonstrates the effectiveness of vendor rationalization application for the case company and weaknesses of commonly practiced vendor management approaches.

To be competitive, companies should rationalize supply items and vendors based on the nature of items and their subsequent usage by applying Kraljic’s matrix-based classification. The immediate implication of vendor rationalization is misunderstood as reducing supply base, but it does much more and includes review of supplies, nature of items and strategic alignments, leading to win-win situation for company and suppliers.

For the rationalization of supplies, while procuring and dealing with vendors, executives should envisage engineering nature of components, considering cross-functional requirements and integration of components in context to ETO products/projects environments. There is a dearth of studies focusing on vendor rationalization aspects in ETO setups in fast-developing country context.

This study uses structural equation modeling to investigate the impact of ABC implementation factors (management support, clarity and consensus of ABC objectives, non-accounting ownership, and training) on quality, cost, and cycle time improvements, the relations among quality, cost, and cycle time improvements and, the influence of quality, cost, and cycle time improvement on financial performance at the business unit level. Overall, the results of the structural analyses support the theoretical model indicating that ABC implementation factors influence quality, cost, and cycle time, and partial support for the relations among quality, cost, and cycle time improvement and their effect on financial performance. When these relationships are further analyzed within the context of ABC implementation stage, adoption of advanced manufacturing practices, industry characteristics and plant size to determine if these contextual factors impact the model constructs and the relationships between the variables in the theoretical model, the results show that these contextual factors do not affect the model constructs, however, they affect the model relations.

The definition of cycle time is the time from the wafer start to the wafer output. It usually takes one or two months to get the product since customer decides to produce it. The cycle time is a critical factor for customer satisfaction because it represents the response time to the market. Long cycle time reflects the ineffective investment for the capital. The cycle time is very important for foundry because long cycle time will cause customer unsatisfied and the order loss. Consequently, all of the foundries put lots of human source in the cycle time improvement. Usually, we make decisions based on the experience in the cycle time management. We have no mechanism or theory for cycle time management. We do work‐in‐process (WIP) management based on turn rate and standard WIP (STD WIP) set by experiences. But the experience didn’t mean the optimal solution, when the situation changed, the cycle time or the standard WIP will also be changed. The experience will not always be applicable. If we only have the experience and no mechanism, management will not be work out. After interview several foundry fab managers, all of the fab can’t reflect the situation. That is, all of them will have an impact period after product mix or utilization varied. In this study, we want to develop a formula for standard WIP and use statistical process control (SPC) concept to set WIP upper/lower limit level. When WIP exceed the limit level, it will trigger action plans to compensate WIP Profile. If WIP Profile balances, we don’t need too much WIP. So WIP level could be reduced and cycle time also could be reduced.

The purpose of this paper is to examine the effects of product modularity on four aspects of competitive performance: cost, quality, flexibility, and cycle time.

Constructs were created from a comprehensive survey of the automotive sector. Regression is used to ascertain the relationship between the constructs of product modularity and performance with three different integration strategies as mediators.

Modularity positively and directly influences each aspect of competitive performance for each integration strategy tested. Indirect effects were found for each integration strategy for cost and flexibility; and for manufacturing integration and cycle time.

A product modularity strategy enables simultaneous improvements on multiple dimensions of competitive performance.

This research is the first to empirically validate the effects of product modularity on competitive performance. Furthermore, it provides insight into the exact nature of product modularity's influence on competitive performance.

The purpose of this paper is twofold: first, a case study on applying lean principles in manufacturing operations to redesign and optimize an electronic device assembly process and its impact on performance and second, introducing cardboard prototyping as a Kaizen tool offering a novel approach to testing and simulating improvement scenarios.

The study employs value stream mapping, root cause analysis, and brainstorming tools to identify root causes of poor performance, followed by deploying a Kaizen event to redesign and optimize an electronic device assembly process. Using physical models, bottlenecks and opportunities for improvement were identified by the Kaizen approach at the workstations and assembly lines, enabling the testing of various scenarios and ideas. Changes in lead times, throughput, work in process inventory and assembly performance were analyzed and documented.

Pre- and post-improvement measures are provided to demonstrate the impact of the Kaizen event on the performance of the assembly cell. The study reveals that implementing lean tools and techniques reduced costs and increased throughput by reducing assembly cycle times, manufacturing lead time, space utilization, labor overtime and work-in-process inventory requirements.

This paper adds a new dimension to applying the Kaizen methodology in manufacturing processes by introducing cardboard prototyping, which offers a novel way of testing and simulating different scenarios for improvement. The paper describes the process implementation in detail, including the techniques and data utilized to improve the process.

This paper aims to focus on integrating a lean framework in a high-mix-low-volume (HMLV) printed circuit board assembly (PCBA) environment to enhance current assembly processes and facility layouts. An HMLV PCBA environment is characterized by stochastic demands, a variety of products in terms of shapes and sizes and different sequences of assembly and test operations, in addition to long cycle times and high fall-out rates.

Preliminary analysis indicates that the push inventory control system led to the longer cycle times, such that various lean methodologies have been applied to enhance the assembly operations. In this research, Kanban sizes for different assembly lines are also estimated to integrate and implement a “pull-system” into the lean framework. In addition, material movement and facility layout have been studied to minimize work-in-process travel time. An “iterative-MAIC” approach has been applied to implement lean principles.

As a result, a lean manufacturing pilot line has been implemented to evaluate the effectiveness of the lean principles before rolling them out across the manufacturing floor. It has been shown that the cycle times of the pilot line products are decreased by 40 per cent and the number of defects decreased by 10-30 per cent, depending on different assembly processes, after the lean implementation.

There is limited literature that addresses lean transformation in an HMLV electronics manufacturing service provider handling several product types with different testing methodologies, frequent product revision changes and higher fall-out rates. Hence, in this research, lean manufacturing has been implemented in an HMLV PCBA environment, which has the challenges of varying demand with a mix of assembly and test operations for different product families.

Thomas Group Inc., with offices in Irving, Texas, Detroit, Michigan, Singapore and Frankfurt, Germany, has more than 20 years’ experience of vastly improving client business efficiency through cycle time reduction. This article explains the advantages of moving from a “blame culture” to an interconnected seamless, holistic business approach to widespread and continuous improvement. The concepts of baseline and entitlement performances are explained as well as tools such as time‐based management and treating companion processes. Specific examples are cited for concepts and actual results from Detroit Diesel Corporation are revealed. Finally the actions‐in‐process management system illustrates paths toward reduced cycle time.

The purpose of this paper is to examine the impact of integrating ISO 9000 and total quality management (TQM) on operational performance of manufacturing organizations and their journey toward achieving world-class manufacturing (WCM) status.

The authors used a conceptual model and its empirical validation based on a sample of 2,961 responses from one developing and three developed economies. Univariate and multivariate analyses were used to test five main hypotheses.

Plants that integrate ISO 9000 and TQM progressed faster toward achieving WCM status and have better operational performance in terms of quality management, inventory management, time-based performance, and competitiveness.

The sample from the developing economy includes only 254 responses, while the one from the three developed economies includes 2,907 responses.

Findings of this study have many implications for both academic and practitioners. These findings encourage practitioners to consider ISO 9000 and TQM as complementary, not substitutes.

Developing economies should follow the footsteps of developed economies in considering quality as a competitive advantage in global markets.

The paper addresses in a unique and unprecedented way the synergistic impact of ISO 9000 and TQM on operational performance. The study is the first in its kind to include responses from both developing and developed economies. The development of the synergy index was never addressed before.