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Article
Publication date: 1 August 2005

S.C.L. Koh, A. Gunasekaran and S.M. Saad

To present the application of a business model for holistic uncertainty management for twenty‐first century manufacturing enterprises.

3558

Abstract

Purpose

To present the application of a business model for holistic uncertainty management for twenty‐first century manufacturing enterprises.

Design/methodology/approach

A questionnaire survey is carried out to UK manufacturing enterprises to collect relevant data, and analysis of variance (ANOVA), correlation analysis and cluster analysis are performed to infer the results.

Findings

It can be concluded that different manufacturing environments suffer different effects of underlying causes of uncertainty on product tardy delivery. The product tardy delivery performance in make‐to‐order (MTO) manufacturing environment is found significantly affected by a wide range of underlying causes of uncertainty. It is interesting to find that mixed‐mode (MM) manufacturing environment has an opposite outcome. Correlation results provide significant evidence that underlying causes of uncertainty do not have linear association with product tardy delivery. This finding reinforces the proposition that the effects of uncertainty are difficult to quantify due to the compound effect. The cluster analyses of the business environmental factors of the manufacturing enterprises in MM, make‐to‐stock (MTS) and MTO environments found that size of enterprise, product variety, product complexity, number of parts, ratio of buy vs make parts, the use of rough‐cut capacity planning, and the use of buffering or dampening techniques in production, influence the effects of underlying causes of uncertainty on product tardy delivery.

Research limitations/implications

Only UK manufacturing enterprises are investigated. The results will be relevant to MTO, MM and MTS manufacturing environments.

Practical implications

The application of the business model has provided useful knowledge to MM, MTS and MTO manufacturing enterprises on which underlying causes of uncertainty are significantly affecting their product tardy delivery performance.

Originality/value

A holistic approach such as the business model has given a solid foundation for the enterprises to evaluate their performance. Using the knowledge of significant underlying causes of uncertainty, the enterprises could then prioritise the effort and devise suitable buffering or dampening techniques.

Details

Benchmarking: An International Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 August 2003

Patrik Jonsson and Stig‐Arne Mattsson

The applicability of manufacturing planning and control methods differs between environments. This paper explains the fit between the planning environment and material and…

7058

Abstract

The applicability of manufacturing planning and control methods differs between environments. This paper explains the fit between the planning environment and material and capacity planning on the detailed material planning and shop‐floor planning levels. The study is based on a conceptual discussion and a survey of 84 Swedish manufacturing companies. Results show the use of planning methods and their levels of user satisfaction in complex customer order production, configure to order production, batch production of standardized products and repetitive mass production, respectively.

Details

International Journal of Operations & Production Management, vol. 23 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 September 2005

S.C. Lenny Koh and Mike Simpson

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs). The…

6361

Abstract

Purpose

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs). The objectives of this study are to examine how responsive and agile the existing ERP systems are to change and uncertainty, and to identify the types of change and uncertainty in SME manufacturing environments.

Design/methodology/approach

A mixed methodology is used in this study, which involves literature review, questionnaire survey and follow‐up, in‐depth telephone interviews. An uncertainty diagnosing business model is applied to collect data from SME manufacturers in make‐to‐stock (MTS), make‐to‐order (MTO) and mixed mode (MM) manufacturing environments in a structured manner, and to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs. Some 108 enterprises responded (86 per cent response rate), of which 64 are SMEs. Analysis of variance (ANOVA) is carried out in SPSS to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs.

Findings

ANOVA results show that a different group of underlying causes of uncertainty significantly affects the product late delivery performance in MTS, MTO and MM manufacturing environments in SMEs. This study found that ERP could improve responsiveness and agility to change, but not to uncertainty. SMEs could create a competitive advantage by being more responsive to change in the ERP system before generating purchase and work order. ERP systems could not deal with uncertainty due to its stochastic and unpredictable nature. SMEs use a range of buffering or dampening techniques under uncertainty to be competitive in delivery.

Originality/value

It can be concluded that the application of the business model in SMEs that use ERP has provided useful knowledge about the significant underlying causes of uncertainty that affect product late delivery performance in MTS, MTO and MM manufacturing environments. Using this knowledge, similar SMEs could then prioritise the effort and devise suitable buffering or dampening techniques to manage the causes of uncertainty and hence prevent any changes to the ERP system.

Details

Journal of Manufacturing Technology Management, vol. 16 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 6 March 2007

S.C. Lenny Koh and Mike Simpson

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

5033

Abstract

Purpose

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

Design/methodology/approach

The main methods used in this study were questionnaires and interviews based on the application of an uncertainty diagnosing business model. Data were collected, using a questionnaire administrated to 126 SMEs, in the form of percentage contributions of the underlying causes of uncertainty (structured in the business model) on product late delivery. Analysis of Variance (ANOVA) was carried out in SPSS to analyse the effects of the underlying causes of uncertainty in SMEs.

Findings

ERP could create a competitive advantage in delivery for SMEs by being responsive and agile to change, but not to uncertainty. Results suggested that only a few features in an ERP system were used to deal with change due to uncertainty. It was found that SMEs generally use their ERP system to generate a plan for production and use it as a guideline. SMEs concurrently use a range of buffering or dampening techniques to tackle uncertainty for crating a competitive advantage in delivery.

Research limitations/implications

The application of the business model in SMEs has provided useful knowledge to make‐to‐stock (MTS), make‐to‐order (MTO) and mixed‐mode (MM) manufacturing enterprises in which underlying causes of uncertainty were significantly affecting their product late delivery performance.

Originality/value

This is a highly original application of an uncertainty diagnosing business model to SMEs using ERP systems.

Details

Benchmarking: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 13 November 2007

Daniel Vázquez‐Bustelo, Lucía Avella and Esteban Fernández

Despite the fact that agile manufacturing has been frequently promoted as a means of improving business competitiveness, little empirical evidence exists in the literature…

8521

Abstract

Purpose

Despite the fact that agile manufacturing has been frequently promoted as a means of improving business competitiveness, little empirical evidence exists in the literature validating its positive link with business performance. The purpose of this research paper is to analyse agile manufacturing in Spain and study whether it is a critical factor for success in different industries.

Design/methodology/approach

A conceptual model is drawn up, based on the literature and a previous case study, to relate turbulence in the environment with agile manufacturing practices and business performance. The model is tested on a large sample of Spanish manufacturers using a survey methodology to obtain information and a structural equation model to analyse the data.

Findings

The results obtained show that, in turbulent environments, the integrated use of agile manufacturing practices promotes manufacturing competitive strength, leading to better operational, market and financial performance.

Research limitations/implications

This study has two main limitations. First, it is difficult to determine the most suitable unit of analysis when studying agile manufacturing. Second, single respondent bias may be considered a limitation.

Practical implications

Managers should consider the integrated implementation of agile manufacturing practices in order to develop manufacturing strength and to outperform competitors in turbulent business environments.

Originality/value

This study adopts a systematic approach to the analysis of agile manufacturing, considering various agility practices or enablers in an integrated way and relating them not only to environmental characteristics but also to business performance. This approach is especially interesting because most of the literature on agile manufacturing deals with agility strategies or techniques in an isolated way. The study also tests the suitability of agile manufacturing in real organisations – for the first time in the Spanish context.

Details

International Journal of Operations & Production Management, vol. 27 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 January 2010

Sami Farooq and Chris O'Brien

The purpose of this paper is to present result obtained from a developed technology selection framework and provide a detailed insight into the risk calculations and their…

2098

Abstract

Purpose

The purpose of this paper is to present result obtained from a developed technology selection framework and provide a detailed insight into the risk calculations and their implications in manufacturing technology selection process.

Design/methodology/approach

The results illustrated in the paper are the outcome of an action research study that was conducted in an aerospace company.

Findings

The paper highlights the role of risk calculations in manufacturing technology selection process by elaborating the contribution of risk associated with manufacturing technology alternatives in the shape of opportunities and threats in different decision‐making environments.

Practical implications

The research quantifies the risk associated with different available manufacturing technology alternatives. This quantification of risk crystallises the process of technology selection decision making and supports an industrial manager in achieving objective and comprehensive decisions regarding selection of a manufacturing technology.

Originality/value

The paper explains the process of risk calculation in manufacturing technology selection by dividing the decision‐making environment into manufacturing and supply chain environment. The evaluation of a manufacturing technology considering supply chain opportunities and threats provides a broader perspective to the technology evaluation process. The inclusion of supply chain dimension in technology selection process facilitates an organisation to select a manufacturing technology not only according to its own requirements, but also according to the interest of its constituent supply chain.

Details

Journal of Manufacturing Technology Management, vol. 21 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 24 July 2020

Cinzia Sansone, Per Hilletofth and David Eriksson

To survive in a competitive landscape, companies are required to identify, develop and continuously improve upon the operations capabilities that have the greatest impact on the…

Abstract

Purpose

To survive in a competitive landscape, companies are required to identify, develop and continuously improve upon the operations capabilities that have the greatest impact on the overall competitiveness. This paper aims to evaluate critical operations capabilities for competitive manufacturing in a high-cost environment.

Design/methodology/approach

Critical operations capabilities for competitive manufacturing were extracted in a literature review and then evaluated from the perspective of a high-cost environment in a focus group study. The focus group included a quantitative (questionnaire) and qualitative (discussion) evaluation of the extracted critical operations capabilities.

Findings

The empirical findings revealed that all the capabilities identified in the literature review are considered critical in a high-cost environment, albeit with varying emphasis. Companies located in a high-cost environment tend to emphasize a broad set of capabilities related to quality, cost, time, flexibility and innovation rather than only cost-related capabilities.

Research limitations/implications

The research is based on a focus group that was limited to 14 representatives from five Swedish manufacturing companies. This can reveal some limitations with regard to the generalizability of the conclusions drawn. Hence, this research should be considered as an initial step in gaining a more in-depth and complete understanding of the research topic under investigation.

Practical implications

The research outcome enables managers to design their operations strategy more systematically and effectively, to be consistent with their targeted capabilities. The operations capabilities are important for both the company’s competitiveness and its future direction.

Originality/value

The paper presents an updated understanding of how companies achieved a competitive advantage in a specific manufacturing environment such as a high-cost context. It additionally provides an overview of what capabilities are developed for implementing successful operations strategies.

Details

Journal of Global Operations and Strategic Sourcing, vol. 13 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 3 October 2016

Antônio Márcio Tavares Thomé and Rui Sousa

The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of…

1475

Abstract

Purpose

The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of the manufacturing environment. The paper submits that the level of use of ODMI ought to match the level of complexity of the manufacturing environment. The paper puts forward the hypothesis that when a misfit occurs between ODMI and complexity (high use of ODMI practices in low complexity environments or low use of ODMI practices in high complexity environments) manufacturing operational performance declines.

Design/methodology/approach

The paper tests the hypothesis based on a survey database of 725 manufacturers from 21 countries. The measurement model was assessed with confirmatory factor analysis and the hypothesis was tested with linear regression.

Findings

A misfit between the level of ODMI use (job rotation and co-location) and manufacturing complexity (product and process complexity) has a negative effect on manufacturing operational performance dimensions of quality, delivery and flexibility. Post hoc analyses also suggest that firms that operate in different environments in what concerns the rate of change in process technologies suffer differentiated negative impacts of ODMI-complexity misfit.

Research limitations/implications

Future studies could extend this research to other dimensions of design-manufacturing integration, such as technological practices.

Practical implications

Manufacturers with high levels of complexity should invest strongly in ODMI practices. However, manufacturers with low levels of complexity should invest in these practices with caution since the expected payoffs may not outweigh the effort.

Originality/value

The study assesses fit as a simultaneous set of contingency factors, applying profile-deviation analysis to ODMI and operational performance relationships. By focusing on plant-level manufacturing complexity, this study complements existing studies of product development complexity which tend to focus on project-level complexity.

Details

International Journal of Operations & Production Management, vol. 36 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 January 2008

Kun Liao and Qiang Tu

This paper aims to address the differing impacts of automation and integration on manufacturing performance (MP) under different levels of environmental uncertainty.

1866

Abstract

Purpose

This paper aims to address the differing impacts of automation and integration on manufacturing performance (MP) under different levels of environmental uncertainty.

Design/methodology/approach

Responses from 303 companies are analyzed and presented.

Findings

Under industrial (low uncertainty) environment, manufacturing system automation has significant positive impact on MP, while the impact of manufacturing system integration is not significant. Under post‐industrial (high uncertainty) environment, manufacturing system integration has significant positive impact on MP, while the impact of manufacturing system automation is not significant.

Research limitations/implications

This paper emphasizes manufacturing strategy responses to different uncertainty levels of environment; either manufacturing system integration strategy or manufacturing system automation strategy plays the primary role for a manufacturing firm to achieve high performance under different uncertainty levels.

Practical implications

This paper strongly supports that the key to effective management of automation technology is to improve manufacturing system integration before implementation under high uncertain environment.

Originality/value

This paper is one of the first large‐scale empirical studies to address the differing impacts of automation and integration on MP under different levels of environmental uncertainty (EU). Another contribution of this study is the development of valid and reliable measurement instruments for MP and EU, which can be widely used in other manufacturing technology management studies.

Details

Journal of Manufacturing Technology Management, vol. 19 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 1 May 2002

David Tranfield and Stuart Smith

The paper argues that the widespread changes in manufacturing industry are best conceptualised as paradigmatic, in that they constitute a patterned reconfiguration of ideas…

5211

Abstract

The paper argues that the widespread changes in manufacturing industry are best conceptualised as paradigmatic, in that they constitute a patterned reconfiguration of ideas, beliefs and values about manufacturing philosophy, strategy, structure, organisation and operations. The widespread adoption of teamworking is part of this patterning and is argued to reflect a new institutional form of manufacturing organisation. In investigating teamworking, the paper uses the concept of organisational archetypes to investigate whether or not teamworking takes a single, or variety of interlocking forms. Empirical studies are introduced to justify the articulation of three teamworking forms: a “‘self‐directed” archetypal form and two other sub‐types, “lean” and “project”, neither of which, it is argued, are truly archetypal. The paper concludes that broad institutional changes toward a teamworked manufacturing organisation impact on the “interpretive schema” of managers operating in specific task environments who prescribe and deploy this new organisational format. This creates the two hybrid sub‐types in practice. The findings of this research have implications for both practitioners involved in designing and introducing teamworking into manufacturing firms, and for academics researching on team based organisational design.

Details

International Journal of Operations & Production Management, vol. 22 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

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