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Open Access
Article
Publication date: 19 April 2024

Thi Bich Tran and Duy Khoi Nguyen

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Abstract

Purpose

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Design/methodology/approach

Using data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.

Findings

The study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.

Practical implications

The paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.

Originality/value

This paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 28 November 2022

Elena Stefana, Paola Cocca, Federico Fantori, Filippo Marciano and Alessandro Marini

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

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Abstract

Purpose

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

Design/methodology/approach

The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.

Findings

The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.

Originality/value

The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 11
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 18 April 2024

Prajakta Chandrakant Kandarkar and V. Ravi

Industry 4.0 has put forward a smart perspective on managing supply chain networks and their operations. The current manufacturing system is primarily data-driven. Industries are…

Abstract

Purpose

Industry 4.0 has put forward a smart perspective on managing supply chain networks and their operations. The current manufacturing system is primarily data-driven. Industries are deploying new emerging technologies in their operations to build a competitive edge in the business environment; however, the true potential of smart manufacturing has not yet been fully unveiled. This research aims to extensively analyse emerging technologies and their interconnection with smart manufacturing in developing smarter supply chains.

Design/methodology/approach

This research endeavours to establish a conceptual framework for a smart supply chain. A real case study on a smart factory is conducted to demonstrate the validity of this framework for building smarter supply chains. A comparative analysis is carried out between conventional and smart supply chains to ascertain the advantages of smart supply chains. In addition, a thorough investigation of the several factors needed to transition from smart to smarter supply chains is undertaken.

Findings

The integration of smart technology exemplifies the ability to improve the efficiency of supply chain operations. Research findings indicate that transitioning to a smart factory radically enhances productivity, quality assurance, data privacy and labour efficiency. The outcomes of this research will help academic and industrial sectors critically comprehend technological breakthroughs and their applications in smart supply chains.

Originality/value

This study highlights the implications of incorporating smart technologies into supply chain operations, specifically in smart purchasing, smart factory operations, smart warehousing and smart customer performance. A paradigm transition from conventional, smart to smarter supply chains offers a comprehensive perspective on the evolving dynamics in automation, optimisation and manufacturing technology domains, ultimately leading to the emergence of Industry 5.0.

Details

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

Keywords

Open Access
Article
Publication date: 1 April 2024

Ying Miao, Yue Shi and Hao Jing

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in…

Abstract

Purpose

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in manufacturing firms.

Design/methodology/approach

The relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.

Findings

The results indicate that digital transformation has a positive effect on manufacturing companies’ labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry–university–research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.

Originality/value

This study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.

Open Access
Article
Publication date: 12 May 2023

Olivia McDermott, Kevin ODwyer, John Noonan, Anna Trubetskaya and Angelo Rosa

This study aims to improve a construction company's overall project delivery by utilising lean six sigma (LSS) methods combined with building information modelling (BIM) to…

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Abstract

Purpose

This study aims to improve a construction company's overall project delivery by utilising lean six sigma (LSS) methods combined with building information modelling (BIM) to design, modularise and manufacture various building elements in a controlled factory environment off-site.

Design/methodology/approach

A case study in a construction company utilised lean six sigma (LSS) methodology and BIM to identify non-value add waste in the construction process and improve sustainability.

Findings

An Irish-based construction company manufacturing modular pipe racks for the pharmaceutical industry utilised LSS to optimise and standardise their off-site manufacturing (OSM) partners process and leverage BIM to design skids which could be manufactured offsite and transported easily with minimal on-site installation and rework required. Productivity was improved, waste was reduced, less energy was consumed, defects were reduced and the project schedule for completion was reduced.

Research limitations/implications

The case study was carried out on one construction company and one construction product type. Further case studies would ensure more generalisability. However, the implementation was tested on a modular construction company, and the methods used indicate that the generic framework could be applied and customized to any offsite company.

Originality/value

This is one of the few studies on implementing offsite manufacturing (OSM) utilising LSS and BIM in an Irish construction company. The detailed quantitative benefits and cost savings calculations presented as well as the use of the LSM methods and BIM in designing an OSM process can be leveraged by other construction organisations to understand the benefits of OSM. This study can help demonstrate how LSS and BIM can aid the construction industry to be more environmentally friendly.

Details

International Journal of Lean Six Sigma, vol. 15 no. 8
Type: Research Article
ISSN: 2040-4166

Keywords

Article
Publication date: 18 April 2024

Ramads Thekkoote

This paper uses the complex proportionality assessment (COPRAS) method to examine the driving factors of Industry 4.0 (I4) technologies for lean implementation in small and…

Abstract

Purpose

This paper uses the complex proportionality assessment (COPRAS) method to examine the driving factors of Industry 4.0 (I4) technologies for lean implementation in small and medium-sized enterprises (SMEs).

Design/methodology/approach

Adopting I4 technology is imperative for SMEs seeking to maintain competitiveness within the manufacturing sector. A thorough understanding of the driving factors involved is required to support the implementation of I4. For this objective, the multi-criteria decision-making (MCDM) tool COPRAS was used to efficiently analyze and rank these driving elements based on their importance. These factors can help small and medium-sized firms (SMEs) prioritize their efforts and investments in I4 technologies for lean implementation.

Findings

This study evaluates and prioritizes the nine I4 factors according to the perceptions of SMEs. The ranking offers significant insights into the factors SMEs consider more accessible and effective when adopting I4 technologies.

Originality/value

The author's original contribution is to examine I4 driving factors for lean implementation in SMEs using COPRAS.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 21 December 2022

Prashan Bandara Wijesinghe and Prasanna Illankoon

The purpose of this study was to improve the overall equipment effectiveness (OEE) of the production process of the shredder operation of ABC company, an industrial waste…

Abstract

Purpose

The purpose of this study was to improve the overall equipment effectiveness (OEE) of the production process of the shredder operation of ABC company, an industrial waste management company which supplies pre-processed industrial waste as alternative fuel to a cement plant.

Design/methodology/approach

This case study investigated all possible availability and performance losses that caused the shredder system’s OEE and various problem-solving techniques, such as root cause analysis and Pareto analysis, were used to find the root cause of the reduced OEE.

Findings

After analysing this case study, three significant loss factors were identified from all the availability and performance losses, which caused the shredder system’s OEE losses. Practical solutions were found for the effect of those loss factors to improve the machine’s OEE and productivity.

Research limitations/implications

This case study has been concentrated on only analysing of losses and improvement of OEE in the production process and not about cost analysis between loss and improvements.

Originality/value

This paper shows how to improve the OEE of a production process through various problem-solving techniques by identifying its losses and how to achieve the best solutions for those losses in a practical manner.

Details

Journal of Global Operations and Strategic Sourcing, vol. 17 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 15 December 2023

Nicola Castellano, Roberto Del Gobbo and Lorenzo Leto

The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on…

Abstract

Purpose

The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on the use of Big Data in a cluster analysis combined with a data envelopment analysis (DEA) that provides accurate and reliable productivity measures in a large network of retailers.

Design/methodology/approach

The methodology is described using a case study of a leading kitchen furniture producer. More specifically, Big Data is used in a two-step analysis prior to the DEA to automatically cluster a large number of retailers into groups that are homogeneous in terms of structural and environmental factors and assess a within-the-group level of productivity of the retailers.

Findings

The proposed methodology helps reduce the heterogeneity among the units analysed, which is a major concern in DEA applications. The data-driven factorial and clustering technique allows for maximum within-group homogeneity and between-group heterogeneity by reducing subjective bias and dimensionality, which is embedded with the use of Big Data.

Practical implications

The use of Big Data in clustering applied to productivity analysis can provide managers with data-driven information about the structural and socio-economic characteristics of retailers' catchment areas, which is important in establishing potential productivity performance and optimizing resource allocation. The improved productivity indexes enable the setting of targets that are coherent with retailers' potential, which increases motivation and commitment.

Originality/value

This article proposes an innovative technique to enhance the accuracy of productivity measures through the use of Big Data clustering and DEA. To the best of the authors’ knowledge, no attempts have been made to benefit from the use of Big Data in the literature on retail store productivity.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 11
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 25 April 2024

Chaitanya Arun Sathe and Chetan Panse

This study aims to examine the enablers of productivity of enterprise-level Agile development process using modified total interpretative structural modeling (TISM). The two main…

Abstract

Purpose

This study aims to examine the enablers of productivity of enterprise-level Agile development process using modified total interpretative structural modeling (TISM). The two main objectives of the current study are to determine the variables influencing enterprise-level agile development productivity and to develop modified TISM for the corresponding components.

Design/methodology/approach

To identify enablers of the productivity of enterprise-level agile software development process a literature review and opinions of domain experts were collected. A hierarchical relationship among variables that show direct and indirect influence is created using the modified TISM (M-TISM) technique with Cross Impact Matrix-Multiplication Applied to Classification analysis. This study examined and analyzed the relationships between the determinants within the enterprise using a M-TISM technique.

Findings

With the literature review, the study could identify ten enabling factors of the productivity of Agile development process at the enterprise level. Results depict that program increment (PI) planning and scalable backlog management, continuous integration and continuous delivery (CI/CD), agile release trains (ART), agile work culture, delivery excellence, lean and DevOps practices, value stream mapping (VMS), team skills and expertise, collaborative culture, agile coaching, customer engagement have an impact on the productivity of enterprise-level Agile development process. The results show that team collaboration, agile ways of working and customer engagement have a greater impact on productivity improvement for enterprise-level Agile development process.

Research limitations/implications

The developed model is useful for organizations employing scaled Agile development processes in software development. This study provides a recommended listing of key enablers, that may enable productivity improvements in the Agile development process at the enterprise level. Strategists should focus on team collaboration and Agile project management. This study offers a modified TISM model to academicians to help them understand the effects of numerous variables on maintaining the productivity of an enterprise-level Agile. The identified characteristics and their hierarchical structure can help project managers during the execution of Agile projects at the enterprise level, more effectively, increasing their success and productivity.

Originality/value

The study addresses the gap in the literature by interpretative relationships between the identified enabling factors. The model validation is carried out by a panel of nine experts from several information technology organizations deploying Agile software development at the enterprise level. This unique method broadens the knowledge base in Agile software development at scale and provides project managers and practitioners with a practical foundation.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

Keywords

Open Access
Article
Publication date: 15 February 2024

Jari Huikku, Elaine Harris, Moataz Elmassri and Deryl Northcott

This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the…

Abstract

Purpose

This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the authors address the role of position–practice relations and irresistible causal forces in this conduct.

Design/methodology/approach

The authors examine SID-making (SIDM) practices in four case organisations operating in highly competitive markets, conducting interviews with managers at various levels and analysing company documents. Drawing on strong structuration theory, the authors show how managerial decision makers draw upon their knowledge of organisational context when exercising agency in SIDs.

Findings

The authors provide insights into how SIDM behaviour, specifically agents’ conduct, is shaped by a combination of position–practice relations and the agents’ comprehension of their organisation’s context.

Research limitations/implications

The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice.

Originality/value

The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice. Particularly, the authors contribute to this literature by identifying irresistible causal forces and illuminating why actors might not resist in SIDM processes, despite having the potential to do so.

Details

Journal of Accounting & Organizational Change, vol. 20 no. 6
Type: Research Article
ISSN: 1832-5912

Keywords

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