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The purpose of this paper is to explain why the historical integration of manufacturing with service was quickly seen as advantageous in some circumstances, but not so in others.
Abstract
Purpose
The purpose of this paper is to explain why the historical integration of manufacturing with service was quickly seen as advantageous in some circumstances, but not so in others.
Design/methodology/approach
The paper reviews the history of manufacturing companies in the USA during the last half of the nineteenth century, categorizes them, and ties them to theory.
Findings
The bundling of manufactured goods to downstream‐available services was led by companies with new products but with no great manufacturing strengths, as a way to establish barriers to entry. Companies with significant manufacturing capabilities were not as quick or as complete in their integration of manufacturing and service.
Originality/value
This paper shows that servitization has antecedents that go back 150 years.
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Chester Whitney Wright (1879–1966) received his A.B. in 1901, A.M. in 1902 and Ph.D. in 1906, all from Harvard University. After teaching at Cornell University during 1906–1907…
Abstract
Chester Whitney Wright (1879–1966) received his A.B. in 1901, A.M. in 1902 and Ph.D. in 1906, all from Harvard University. After teaching at Cornell University during 1906–1907, he taught at the University of Chicago from 1907 to 1944. Wright was the author of Economic History of the United States (1941, 1949); editor of Economic Problems of War and Its Aftermath (1942), to which he contributed a chapter on economic lessons from previous wars, and other chapters were authored by John U. Nef (war and the early industrial revolution) and by Frank H. Knight (the war and the crisis of individualism); and co-editor of Materials for the Study of Elementary Economics (1913). Wright’s Wool-Growing and the Tariff received the David Ames Wells Prize for 1907–1908, and was volume 5 in the Harvard Economic Studies. I am indebted to Holly Flynn for assistance in preparing Wright’s biography and in tracking down incomplete references; to Marianne Johnson in preparing many tables and charts; and to F. Taylor Ostrander, as usual, for help in transcribing and proofreading.
Usman Tariq, Ranjit Joy, Sung-Heng Wu, Muhammad Arif Mahmood, Asad Waqar Malik and Frank Liou
This study aims to discuss the state-of-the-art digital factory (DF) development combining digital twins (DTs), sensing devices, laser additive manufacturing (LAM) and subtractive…
Abstract
Purpose
This study aims to discuss the state-of-the-art digital factory (DF) development combining digital twins (DTs), sensing devices, laser additive manufacturing (LAM) and subtractive manufacturing (SM) processes. The current shortcomings and outlook of the DF also have been highlighted. A DF is a state-of-the-art manufacturing facility that uses innovative technologies, including automation, artificial intelligence (AI), the Internet of Things, additive manufacturing (AM), SM, hybrid manufacturing (HM), sensors for real-time feedback and control, and a DT, to streamline and improve manufacturing operations.
Design/methodology/approach
This study presents a novel perspective on DF development using laser-based AM, SM, sensors and DTs. Recent developments in laser-based AM, SM, sensors and DTs have been compiled. This study has been developed using systematic reviews and meta-analyses (PRISMA) guidelines, discussing literature on the DTs for laser-based AM, particularly laser powder bed fusion and direct energy deposition, in-situ monitoring and control equipment, SM and HM. The principal goal of this study is to highlight the aspects of DF and its development using existing techniques.
Findings
A comprehensive literature review finds a substantial lack of complete techniques that incorporate cyber-physical systems, advanced data analytics, AI, standardized interoperability, human–machine cooperation and scalable adaptability. The suggested DF effectively fills this void by integrating cyber-physical system components, including DT, AM, SM and sensors into the manufacturing process. Using sophisticated data analytics and AI algorithms, the DF facilitates real-time data analysis, predictive maintenance, quality control and optimal resource allocation. In addition, the suggested DF ensures interoperability between diverse devices and systems by emphasizing standardized communication protocols and interfaces. The modular and adaptable architecture of the DF enables scalability and adaptation, allowing for rapid reaction to market conditions.
Originality/value
Based on the need of DF, this review presents a comprehensive approach to DF development using DTs, sensing devices, LAM and SM processes and provides current progress in this domain.
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John E. Ettlie and Stephen R. Rosenthal
The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under…
Abstract
Purpose
The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under increasing pressure to diversify into lines of business that offer unique contributions to long term profitability and this paper increases understanding of how incumbent firms successfully accomplish this transition.
Design/methodology/approach
Using analytical induction the authors sample published announcements of significant new service offerings by well‐established manufacturing firms. An example of this type of service innovation would be General Motor's offering of OnStar remote driver support systems (not included in this sample). A total of nine cases (43 percent of the companies contacted) participated in this case study approach.
Findings
The paper identifies two primary strategies pursued by these firms development and launch of significant new service innovations representing important diversification moves for the firm. Both require CEO/President sponsorship, but are founded on different corporate cultures. The engineering culture path to commercialization tends to nurture concepts new to the firm, requires multi‐functional strategy making, and does well with champions from operations that have deep knowledge of the conversion process in the respective industry context. The entrepreneurial orientation path to commercialization tends to nurture concepts new to the industry or new to the world paired with sole champions from R&D or Engineering. Either strategy works well depending upon development culture and available resources.
Research limitations/implications
Generalizations here are limited to incumbent manufacturing firms. Innovative service offerings by new entrants in manufacturing and services as well as incumbent service firms like banks and hospitals have yet to be explored for their corporate culture patterns and sponsorship tendencies.
Practical implications
For manufacturing firms considering making the transition to significant service offerings, the findings here indicate at least two viable approaches to commercialization, but both depend significantly on the chief executive sponsorship regardless of the initial conditions and context.
Originality/value
The identified patterns of corporate culture alternatives and innovation roles, given initial contextual conditions, is a novel contribution in the field. It comes at a time when manufacturing firms are ripe for strategic change and leveraging of core competences to transition to important new service businesses.
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Pingyu Jiang, Guanghui Zhou and Yong Liu
Extends the concept of e‐service to the whole phase of manufacturing. Develops an e‐service platform prototype based on this concept with Java Web solution including the mobile…
Abstract
Extends the concept of e‐service to the whole phase of manufacturing. Develops an e‐service platform prototype based on this concept with Java Web solution including the mobile agent broking technologies and application service provider (ASP) principle. The key point to implement the platform is to enable an open Web information service infrastructure for the whole product manufacturing chain. Inside this infrastructure, product‐specific online manufacturing system can be created by means of using a kind of bidding model. All users participating in the manufacturing process are able to cooperatively finish manufacturing tasks in real time through sharing the same platform. With the help of BOM flow, the global information service flow can be controlled easily. In addition, the legacy hardware/software can also be encapsulated with aglets that are Java mobile agents. As to new ASP software packages, they can be configured simply via the plug and play mode to the e‐service platform. In this way, the on‐line networked manufacturing can be tested.
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Keywords
Supply chain management.
Abstract
Subject area
Supply chain management.
Study level/applicability
The case is suitable for post graduates in management, and for those managing small sector supply and manufacturing systems.
Case overview
ACPL is an organisation which moved from trading to manufacturing a technology product instrument transformers (ITs) for power utility companies for 11 years, competing with the best in industry, reducing internal costs, and modernising the supply chain. ACPL was started as a trading organisation in electrical items in Delhi by Munish Kumar, an engineer by profession in 2001. In 2004 he ventured into manufacturing, which expanded in two locations in Ghaziabad, NCR Delhi. Later his two sons, engineer and management graduate, respectively, joined the organisation. In less than a decade, by 2007, ACPL had grown to be a private limited organisation. ACPL manufactures ITs required by power boards and companies for conversion and usage of high voltage (11 kV/33 kV) transmitted power into 220 V single phase/440 V three phase power. From tender/enquiry through manufacturing to inspection and despatch takes a long supply chain cycle time holding space as well as inventory. An interview with the chairman of ACPL in the case highlights issues affecting its margins and growth. The long process to delivery time may be in vogue in this type of industry but this holds up a huge inventory. The company management has been working to resolve this crisis along with an urgent need to grow in a competitive environment. The problem is being addressed.
Expected learning outcomes
This case study should help students to understand the concept of the supply chain and supply cycle, in a manufacturing company in particular. It has been found that students understand the supply chain as part of the marketing function dealing with finished stocks, warehousing and delivery to end customers as per agreements, and arranging payments from customers. The supply chain also deals with in bound materials management. Raw materials planning, purchasing, inventory management are crucial for effective business operations management in any organisation.
Supplementary materials
Teaching notes are available; please contact your librarian for access.
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Barbara B. Flynn, Roger G. Schroeder, E. James Flynn, Sadao Sakakibara and Kimberly A. Bates
A number of authors have used terms such as “world‐class manufacturing”, “high performance manufacturing” and others to describe comprehensive approaches to manufacturing…
Abstract
A number of authors have used terms such as “world‐class manufacturing”, “high performance manufacturing” and others to describe comprehensive approaches to manufacturing performance improvement. They have broken new ground by introducing the notion of broad, organization‐wide improvement approaches, involving many complex interrelationships. However, testing the associated relationships is just beginning. The WCM Project seeks to articulate the practices which are associated with world‐class manufacturing and their interrelationships. In this attempt, a number of studies have been conducted, using the comprehensive database developed for the project. Provides a detailed examination of the development and verification of the database, which contains perceptual and objective information about quality, JIT, technology, strategy, organization characteristics and human resource management practices of 42 plants in the machinery, electronics and transportation components industries. It also provides a brief overview of three of the studies conducted as part of this project, dealing with: manufacturing process innovation; the relationship between quality practices and performance; and the relationship between TQM and JIT. Each of these highlights specific practices which are related to performance, as well as relevant infrastructure characteristics.
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Brian Grinder, Vincent J. Pascal and Robert G. Schwartz
The purpose of this paper is to examine the development of the early American clock industry as an entrepreneurial endeavor and to focus on the innovative marketing and financing…
Abstract
Purpose
The purpose of this paper is to examine the development of the early American clock industry as an entrepreneurial endeavor and to focus on the innovative marketing and financing practices that helped transform the industry during the first half of the nineteenth century.
Design/methodology/approach
The paper uses the historical method to identify the critical factors that allowed the clock industry to expand. Primary sources were consulted whenever they were available, and a survey of the existing clock literature was conducted.
Findings
The nineteenth century New England clock industry provides a rich field of exploration into the entrepreneurial practices of the early American Republic and provides us with many insights that are applicable to the modern entrepreneur. The clock makers and peddlers who moved clock making from a backwater cottage industry to a modern international industry are examples of entrepreneurship at its best. From a marketing perspective, the clockmakers made use of the existing peddler system in order to create a market for their products. From a financial perspective, the clockmakers innovated when a ready source of capital was unavailable and made extensive use of credit.
Practical implications
This paper points out the importance of viewing entrepreneurship from a historical perspective. Furthermore, it finds that successful clock entrepreneurs understand the usefulness of connections, recognize traps to be avoided (such as the “Cottage Industry Syndrome”), and resolve to be persistent and optimistic in the face of adversity.
Originality/value
This is the first study of the early American clock industry to consider the entrepreneurial aspects that contributed to its successful transformation into an international industry.
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Chris Akroyd, Kevin E. Dow, Andrea Drake and Jeffrey Wong
In this paper, the editors argue that management accounting research should seek to expand to examine the broader ecosystem of information sources that influence organizational…
Abstract
In this paper, the editors argue that management accounting research should seek to expand to examine the broader ecosystem of information sources that influence organizational performance. The editors introduce the concept of the management accounting ecosystem as a means of linking discrete management accounting research topics to the broader environment in which organizations operate. By doing this, a stronger connection can be established between management accounting research and management accounting practice. The goal is to encourage more cross-disciplinary research that provides a better understanding of the ecosystem in which management accounting practitioners operate. The editors encourage researchers to submit studies to “Advances in Management Accounting” that evaluate the effectiveness of new management accounting information sources and the techniques used to analyze them in the broader ecosystem to enhance the effectiveness of management accounting practices. By exploring the wider information sources within the management accounting ecosystem, future management accounting research can become more innovative and better address the decision-making needs of organizational members.
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Walter Holweger, Frank Walther, Jörg Loos, Marcus Wolf, Jürgen Schreiber, Werner Dreher, Norbert Kern and Steffen Lutz
Bearings in field applications with high dynamic loading, e.g. wind energy plants, suffer from sudden failure initiated by subsurface material transformation, known as white…
Abstract
Purpose
Bearings in field applications with high dynamic loading, e.g. wind energy plants, suffer from sudden failure initiated by subsurface material transformation, known as white etching cracks in a typical scale of μm, preferably around the maximum Hertzian stress zone. Despite many investigations in this field no precise knowledge about the root cause of those failures is available, due to the fact that failure under real service conditions of wind energy plants differs from what is known from test rig results in terms of contact loading, lubrication or dynamics. The purpose of this paper is to apply Barkhausen noise measurement to a full bearing test ring running under conditions of elastohydrodynamic lubrication (EHL) with high radial preload.
Design/methodology/approach
Full bearing tests are carried out by use of DGBB (Deep Grove Ball Bearings) with 6206 specification, material set constant as 100Cr6, martensitic hardening, 10‐12 percent maximum retained austenite and radial preload of 3500 MPa. Speed is set 9000 rpm, temperature is self setting at 80°C by test conditions. For tests, synthetic hydrocarbon base oil (Poly‐α‐Olefine) with a 1 percent amount of molydenum‐dithiophosphate (organic chain given as 2‐ethylhexyl) was used.
Findings
Non‐destructive fractal dimension analyses by use of Barkhausen noise measurements is of versatile value in terms of recording bearing manufacturing processes, but can also be part of non‐destructive condition monitoring of bearings in field applications, where predictive reactive maintenance is crucial for availability of the plant.
Research limitations/implications
Barkhausen noise signal recording may also be valuable for case studies related to microstructure changes of steel under operation conditions. Bearings are exposed in plenty of conditions to phenomena such as straying currents, subsequently straying magnetic fields. Hardly anything is known about how microstructure of bearing steel is susceptible to such conditions. This will be part of further studies.
Originality/value
Results given in the paper show that sudden bearing failure, according to formation of subsurface material property changes might be driven by activities of dislocations. Since those activities start with sequences of stress field‐induced formation of domains, later by formation of low‐angle subgrains, and at least phase transformation, recording of the Barkhausen signal would lead to real predictive condition monitoring in applications where a highly dynamic loading of the contact, even with low nominal contact pressure leads to sudden failure induced by white etching.
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