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1 – 10 of over 121000Petri Kärki, A.H.M. Shamsuzzoha and Petri T. Helo
The purpose of this paper is to examine the relationship between customer order lead time (COLT) and the price sensitivity of an electrical equipment manufacturer company. In…
Abstract
Purpose
The purpose of this paper is to examine the relationship between customer order lead time (COLT) and the price sensitivity of an electrical equipment manufacturer company. In consequence, it examines two research questions in terms of COLT, price and profitability level and to ensure the validity and practical justification of these research questions.
Design/methodology/approach
In this research the authors have used a case study approach where three business measures, namely COLT, price and the profitability level of a case company were investigated and analyzed critically. These measures were implemented through four different customer segments with two production lines of the case company. Data were collected from the company's order delivery database from the period 2006 to 2008. In addition, different experimental data were collected through interviewing and reviewing the results of the data analysis with the unit managers.
Findings
In this paper the authors have observed the correlation between the price, profit and COLT with all four customer segments in both the production lines of the case company. From the case data, the authors concluded that the customer did not pay more when the COLT is shorter than with the average time. It is also noticeable that the profit margin is higher for the case company to handle COLT with shorter lead time than the average order delivery lead time.
Research limitations/implications
More case examples might be helpful to motivate the managers to accept the research outcomes.
Practical implications
The concept of the company's COLT in relation to the price and profitability level supports organizational managers in their decision‐making process in terms of productivity level and the company's growth. It will motivate the managers to make tradeoffs among various developmental measures.
Originality/value
This paper implemented a unique approach for measuring the significant level of price and profitability level over COLT. From the outcomes of this study, it is observed that the price correlated positively with the COLT and has a direct and significant impact on it. When the price is increased the COLT is also increased. It is also noticed that the products of the case company which offered shorter lead times were on average also more profitable, even though there were no significant differences in average pricing between the customer segments.
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John Gattorna, Abby Day and John Hargreaves
Key components of the logistics mix are described in an effort tocreate an understanding of the total logistics concept. Chapters includean introduction to logistics; the…
Abstract
Key components of the logistics mix are described in an effort to create an understanding of the total logistics concept. Chapters include an introduction to logistics; the strategic role of logistics, customer service levels, channel relationships, facilities location, transport, inventory management, materials handling, interface with production, purchasing and materials management, estimating demand, order processing, systems performance, leadership and team building, business resource management.
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C.C. New and M.T. Sweeney
Results have shown that the actual delivery performance of a company is often significantly worse than management's own assessment of its performance.
Manufacturing managers as well as researchers suggest that reducing manufacturing lead time is essential for competing in world‐class manufacturing environments. To achieve…
Abstract
Manufacturing managers as well as researchers suggest that reducing manufacturing lead time is essential for competing in world‐class manufacturing environments. To achieve world‐class manufacturing status, organizations implement a variety of programmes to decrease manufacturing lead time. Uses simulation to analyse the effect of purchased parts standardization on manufacturing lead time under the assumption of limited vendor delivery uncertainty. Creates a wide range of degrees of commonality based on three sets of multilevel product structures with the variations of end‐item demand and quantity usage. The statistical results indicate that: increased commonality lowers manufacturing lead time; a more informative commonality measure other than the well‐known degree of commonality index (DCI) is necessary to represent the actual commonality; and the distribution of purchased parts usage across different end items affects manufacturing lead time performance. The results provide important implications for both manufacturing and product design management.
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James Kanyepe, Brave Zizhou, Mikel Alphaneta and Neater Chifamba
This study examines the moderating role of information sharing on the effect of lead-time management on the performance of firms in the Zimbabwean motor industry.
Abstract
Purpose
This study examines the moderating role of information sharing on the effect of lead-time management on the performance of firms in the Zimbabwean motor industry.
Design/methodology/approach
Data were collected using Likert-based structured questionnaires from a sample of 105 employees in Zimbabwe. In addition, Pearson Correlation, Linear Regression and Moderation Regression analysis were employed to test the relationship between study variables.
Findings
The study found that fixed lead time, preprocessing lead time, processing lead time and postprocessing lead time significantly influence the performance of firms in the motor industry. The results also demonstrate that information sharing moderates the effect of lead-time management on firm performance in the motor industry.
Practical implications
Firms in the motor industry should establish long-term relationships with their suppliers and implement effective communication channels for timely and frequent information exchange regarding production schedules, inventory levels, quality standards and potential disruptions.
Originality/value
The current study aims to contribute to the scientific discourse on lead-time management, information sharing and performance in the motor industry. Furthermore, it extends knowledge on the performance of the motor industry in the African region.
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Masaaki Ohba, Toshifumi Uetake and Hitoshi Tsubone
Presents a case study of a production seat booking system for the photographic color film manufacturing industry. This manufacturing process is a hybrid flow shop, which consists…
Abstract
Presents a case study of a production seat booking system for the photographic color film manufacturing industry. This manufacturing process is a hybrid flow shop, which consists of two manufacturing stages: first, processing of the film bulk‐rolls in batches, and second, packing of the final product specifications in a continuous‐process line. A production seat booking system is a new scheduling system, which reduces planning lead‐time significantly, by simplifying the time‐for‐delivery adjustment work. It was found possible to shorten planning lead‐time sharply based on this booking system. Additionally, it became possible simultaneously to reduce inventory levels and logistic‐related costs through such management innovation as shortening planning lead‐time and other entry delivery systems and such improvement activities as making small lot‐size.
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The problems and drawbacks of the Physical Distribution System(PDS) of a production company are described. A simulation model whichtakes into consideration the activities of the…
Abstract
The problems and drawbacks of the Physical Distribution System (PDS) of a production company are described. A simulation model which takes into consideration the activities of the PDS and some part of the production system of the company are presented. Using this simulation model, experiments have been performed to find the effect of certain critical variables like service level, lead times and production rate on the total cost. The limitations of this study and potential areas of future work are assessed.
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This monograph will review recent thinking as applied to the management of materials within organisations. In considering the type of organisation to which the comments will…
Abstract
This monograph will review recent thinking as applied to the management of materials within organisations. In considering the type of organisation to which the comments will apply, it is of use to recognise the following sectors:
S.M. Disney, M.M. Naim and D.R. Towill
The Law of Industrial Dynamics ensures that if a production control system can amplify then it will surely find a way of doing so despite the best efforts of production schedulers…
Abstract
The Law of Industrial Dynamics ensures that if a production control system can amplify then it will surely find a way of doing so despite the best efforts of production schedulers to take corrective action. In fact, practical studies show that such human intervention frequently aggravates the situation with both stock levels and order rates fluctuating alarmingly. The solution is to design an effective system via simulation. This requires the selection of the appropriate control system structure, agreement on the test cases to be used to mimic the operating environment, and finally setting the system parameters to achieve best performance for this scenario. Demonstrates a system which has three controllers utilizing sales, inventory and work in progress (WIP) data to set production order rates. The resulting decision support system (DSS) is a generic tool that can be used by production schedulers with confidence in the knowledge that the Law of Industrial Dynamics effects may be minimized. Simulation experiments can determine the best available trade‐off in any particular situation such as achieving the lean logistics aim of minimum reasonable inventory (MRI) while retaining high customer service levels (CSL). The experimental facility available within the simulation model includes provision for assessing the impact of variable production lead times and information delays on system performance. Describes a specific application of the DSS and the specific improvements in a company’s performance. Places the DSS in the context of a case‐based reasoning environment in which a knowledge base of system structures and their dynamic properties is achieved. Outlines the opportunity of utilizing the DSS in uncertain lead‐time environments in a range of industry sectors.
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Flavio Cesar Faria Fernandes, Moacir Godinho Filho and Maurice Bonney
The purpose of this paper is to present a practical proposal for integrating production control (PC) and quality control (QC) at the shop floor level.
Abstract
Purpose
The purpose of this paper is to present a practical proposal for integrating production control (PC) and quality control (QC) at the shop floor level.
Design/methodology/approach
The proposed method is based on three principles which relate PC and QC at the shop floor level. The proposal is applied successfully at the world's largest pencil factory.
Findings
The results show that the proposed method contributes to improve four performance indicators related to PC and QC at the company studied: increase the average throughput in about 28.9 per cent; reduce the average value of work in process (WIP) in about 35.6 per cent, reduce the average lead time by about 45.4 per cent, and reduce the average defect rate by about 71.4 per cent.
Research limitations/implications
The proposal (mainly because of principle III) is developed to be applied in repetitive production (RP) systems, i.e. environments characterized by low production volume and low product variety.
Practical implications
Some practical implications for industrial managers arises from this study: managers must consider the importance of integrated PC and QC functions in order to get better results concerning performance indicators such as throughput, WIP, lead time, and rejection rate; the materials flow simplification is a prerequisite for a lot of improvement initiatives at the shop floor level; the adequate choice of the production control system (PCS) is vital in order to get positive results regarding the performance indicators related to PC; the determination of the production pace (or rate) for a RP system must take account capacity restrictions and the influence of defect rate on production rate.
Originality/value
The paper is original in that it shows that the performance of the shop floor level can be improved by means of integrating PC and QC, by discussing and implementing a method which simplifies the material flow in the shop floor level, chooses the most adequate PCS and shows how the production rate influence on the rejection rate. Therefore, the paper is important for those which practice industrial management, more specifically on PC and QC functions.
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