Search results

Examines the cost performance of various strategies for managing foreign exchange risk in international sourcing. The strategies represent a broad spectrum of approaches to exchange risk, ranging from naïve to active. Of particular interest is the comparison of those strategies which use exchange rate forecasts with those which do not. Focuses on movements in the German mark/US dollar exchange rate for the period January 1986 through December 1990. Employs a historical simulation methodology to compare the performance of various strategies over this time frame. The results suggest that active approaches to exchange rate management warrant further attention.

The importance of responding to time‐based competitive pressures has prompted US manufacturers to emphasize time‐based performance and deploy strategic action programs aimed at cycle time reduction. This study examines time‐based competition among first tier suppliers to the Big Three in North America. A comprehensive set of time‐based performance measures is defined and time‐related action programs associated with world class manufacturing strategies are identified. Relationships between time‐related action programs, time‐based performance, and overall firm performance are examined. The study shows that time‐based performance significantly affects overall firm performance and that manufacturing lead time is especially critical in the automotive industry. The study also identifies strategic action programs that result in improved performance on various dimensions of time‐based performance.

It has long been recognized that changes in production technology have effects outside the manufacturing unit of the firm. Although researchers have examined the effects of new technologies (e.g. increased automation) on the workforce, these studies have generally examined only technology effects, and have not examined ways of integrating workforce and manufacturing process technology decisions. This paper is a first step toward building a model that integrates workforce and operations decisions by identifying what factors drive managerial choices of skill levels in various manufacturing environments. The model is based upon the literature and empirical data from three case studies. Major findings are that skill level choices are driven by the complexity of a firm’s shop floor and external environments as well as specific labor force issues such as the existence of a union.

This paper examines the competitive dimensions of quality for first tier suppliers in the automotive industry. A theoretically relevant set of quality variables is identified from the literature. The results of a factor analysis show that quality is a two dimensional construct in the automotive supply industry. The core dimensions of quality are: product quality, which is primarily focused on design superiority and performance of the physical product; and service quality, which comprises both pre‐ and post‐sale service. The study reveals that both product quality and service quality are related to overall firm performance, regardless of whether asset based, investment based, or market based measures are used.

Investigates performance relationships for interfunctional process integration and specific logistics interface capabilities. The results indicate that competitive advantage is more likely to emanate from interfunctional process integration than individual function (sub) optimization. Also identifies logistics’ unique role as a boundary‐spanning interface between marketing, production, and new product development, as a potential source of competitive advantage. In terms of overall business performance, logistics followed by new product development are shown to have the greatest impact on profitability and growth. Further, logistics interface capabilities of customer service and logistics quality have the greatest independent impacts on business performance. In total these results imply that logistics, new product development, and demand‐management capabilities may provide firms with that extra competitive edge which shows up in “bottom line” performance. States that the relatively neglected areas of logistics boundary spanning and production customer service also deserve attention.

Investigates performance relationships for interfunctional process integration and specific logistics interface capabilities. The results indicate that competitive advantage is more likely to emanate from interfunctional process integration rather than individual function (sub) optimization. Logistics’ unique role as a boundary spanning interface between marketing, production, and new product development, is also identified as a potential source of competitive advantage. In terms of overall business performance, logistics followed by new product development are shown to have the greatest impact on profitability and growth. Further, logistics interface capabilities of customer service and logistics quality have the greatest independent impacts on business performance. In total, these results imply that logistics, new product development, and demand‐management capabilities may provide firms with that extra competitive edge which shows up in “bottom‐line” performance. States that the relatively neglected areas of logistics boundary spanning and production customer service also deserve attention.

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.

An empirical study of 57 top‐tier suppliers to the North American automotive industry examined the direct and complementary effects of information system infrastructure (ISI) and process improvements on time‐based performance. The results show that the three dimensions of ISI – design‐manufacturing integration (DMI), manufacturing technology (MT), and information technology (IT) – directly influenced at least one dimension of time‐based performance. For example, DMI influenced manufacturing lead time, MT influenced new product development time, and IT influenced customer responsiveness. Process improvement also directly influenced supply‐chain time performance. Finally, ISI and process improvement had a positive and complementary effect on time‐based performance. Specifically, the IT factor along with process improvement variables (standardization and concurrent engineering) had a complementary and significant positive influence on time‐based performance. The findings strongly support the idea of joint deployment of information system infrastructure and process improvement to streamline cycle time performance in a supply chain.

Quality is consistently listed as one of manufacturing’s top competitive priorities and has become a prerequisite for success in the global marketplace. Quality helps a firm gain a competitive advantage by delivering goods to the marketplace that meet customer needs, operate in their intended manner, and continuously improve quality dimensions in order to “surprise and delight” the customer. While quality’s significance has been emphasized for years, the contribution of quality to business performance has been largely unexplored. Results of a survey sent to the furniture industry show that quality dimensions ‐ especially design quality and product improvement ‐ are highly correlated with business performance. Quality remains the foundation of competitive advantage, even if a firm’s short‐term attention has drifted to speed‐to‐market, cost reduction and other concerns.

The purpose of this paper is to propose optimization models for assisting in buyer‐supplier negotiations by effectively considering multiple factors and interrelationships among them.

The approach used in the paper involves a combination of data envelopment analysis and multi‐criteria decision models.

Categorizes suppliers into efficient and inefficient performers and identifies effective negotiation strategies with respect to cost, quality, and delivery performance.

This original contribution presents models, which buyers can utilize for effectively negotiating with suppliers across a variety of factors.