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Article
Publication date: 18 January 2013

Paul R. Drake, Dong Myung Lee and Matloub Hussain

The aim of this paper is to present a purchasing portfolio model for determining purchasing strategy at the component level of a product to support business strategy, addressing…

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Abstract

Purpose

The aim of this paper is to present a purchasing portfolio model for determining purchasing strategy at the component level of a product to support business strategy, addressing weaknesses in the often cited Kraljic‐type models. The work draws on Fisher's model to match supply strategy to product nature. However, Fisher's model was criticised very recently by Lo and Power in this journal because it is unclear how the “leagile” option should fit into it. This paper addresses this issue.

Design/methodology/approach

The new portfolio model is based on the literature, particularly Fisher's seminal work. It is then applied to two case studies; an electric boiler manufacturer and an elevator manufacturer, both in South Korea. The analytic hierarchy process (AHP) is used to position purchased components in the model.

Findings

Different purchasing strategies should be assigned to different components according to their impact on the competitive priorities. As the electric boiler is a functional product, while the elevator is an innovative product, the case studies show how this can vary across the two product‐types identified by Fisher.

Research limitations/implications

The new model has been tested on only two case studies, which limits the ability to generalise the findings. Future work will use the lean and agile purchasing portfolio model in research and knowledge exchange activities with other industrial partners to further develop and test its efficacy.

Originality/value

The new model captures the finding of Fisher and others that products should be classified as functional or innovation to determine their suitability for lean or agile supply respectively. However, this classification is extended here to the component level and with the addition of the leagile and non‐strategic supply options, and it depends on the impact a component has on the four competitive priorities; cost, quality, time and flexibility.

Details

Supply Chain Management: An International Journal, vol. 18 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 19 April 2011

Louise Bildsten, Anders Björnfot and Erik Sandberg

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than market‐driven purchasing in industrialised housing…

Abstract

Purpose

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than market‐driven purchasing in industrialised housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of the Sweden's largest producers of industrialised prefabricated multi‐storey housing. By comparing characteristics of market‐ vs value‐driven purchasing, this paper aims to further clarify the benefits and drawbacks of these two strategies.

Design/methodology/approach

By comparing characteristics of market‐ vs value‐driven purchasing, a theoretical framework is proposed that clarifies the benefits and drawbacks of the two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialised housing industry in relation to the proposed framework.

Findings

The case study results indicate that, from a value perspective, a long‐term relationship with a dedicated local smaller supplier is a preferable choice over a short‐term relationship with a low‐price mass producer.

Research limitations/implications

This is a single case study that should be verified by further empirical work of a test delivery from the local sub‐system manufacturer. Such a study would provide more insights into this area of work and make it possible to thoroughly evaluate potential risks. The indicative results in this paper can be made conclusive through quantification of the proposed lean purchasing characteristics.

Originality/value

A comparison of value‐ and market‐driven purchasing is carried out in theory and applied to a real case study that brings new perspectives to purchasing. In this way, the paper proposes alternative purchasing strategies to the construction industry.

Details

Journal of Financial Management of Property and Construction, vol. 16 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 March 2011

Joseph J. Schiele and Clifford P. McCue

Over the last several decades, lean thinking has been credited with several advancements in the practices of private sector organizations. Only recently have researchers begun to…

Abstract

Over the last several decades, lean thinking has been credited with several advancements in the practices of private sector organizations. Only recently have researchers begun to report on lean thinking as it applies to the public sector. For public procurement research, the concept remains largely unexamined. This research used the extant literature to identify preconditions that are required to successfully deploy lean thinking principles, tools, and techniques. Salient preconditions were organized into key categories. These categories provided the basis for a framework designed to assess public procurementʼs ability to adopt lean thinking, and aid in its implementation within this public sector environment. Questions suggested to guide future research, along with an approach intended to facilitate this work, are also presented.

Details

Journal of Public Procurement, vol. 11 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 December 2003

Semra Birgün Barla

The role of purchasing departments has changed significantly in today's competitive environment. In order to keep the promises to customers; an effective material procurement…

5821

Abstract

The role of purchasing departments has changed significantly in today's competitive environment. In order to keep the promises to customers; an effective material procurement system becomes necessary beside the improved manufacturing methods and technology. It becomes a necessity to work with the suppliers to provide quality and just in time delivery by supplying raw materials, parts and products. A purchasing department can take on both the active and effective role by applying the lean supply principles as much as possible. Single sourcing provides to easy control of procurement for achieving the lean supply objectives. In this paper, the supplier selection and evaluation for a manufacturing company is studied under lean philosophy. In order to reduce the supplier base, the supplier selection and evaluation study is conducted by multi‐attribute selection model (MSM) in five basic steps. Consequently, the selected two suppliers are proposed to top management.

Details

Logistics Information Management, vol. 16 no. 6
Type: Research Article
ISSN: 0957-6053

Keywords

Article
Publication date: 23 January 2018

Farhad Nabhani, Christian Josef Uhl, Florian Kauf and Alireza Shokri

The purpose of this paper is to present a new optimisation approach for product variance from the purchasing perspective.

Abstract

Purpose

The purpose of this paper is to present a new optimisation approach for product variance from the purchasing perspective.

Design/methodology/approach

The research is based on a case study of a collaboration with a global acting automotive Tier 1 supplier, who produces steering systems for cars and commercial vehicles. A total of 116 different variants of three components of a car automotive steering system were analysed and evaluated. The data were gathered from 13 sub-suppliers for three different types of a steering system.

Findings

Unnecessary time, money, quality and technology can be saved through a greater understanding of such product variances. The results of the case study lead to a general method to optimise existing product variance and present cost improvements and a new key performance indicator to manage product variance out of the purchasing department.

Research limitations/implications

The research is based on a purchasing case study at a Tier 1 supplier of the automotive branch. The approach can be used for other company departments, e.g. logistics and for different industries than automotive.

Practical implications

A company can be successful and competitive when it meets the customer needs with a maximum on satisfaction without generating of waste. Unnecessary existing product variance is a kind of waste. The insights of this paper support the operative user and the strategic company management to reduce and improve unnecessary variance in different sections.

Originality/value

The structured analysis of product variance from the purchasing perspective and the key performance indicator “variance share” are new to company management. The research focuses on the management of existing variance out of the purchasing department which is a segment that has received limited academic attention in research to date.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 3
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 31 January 2023

Luciana Paula Reis, June Marques Fernandes, Sergio Evangelista Silva and Carlos Augusto de Carvalho Andreosi

This article aims to introduce a guide to improving hospital bed setup by combining lean technical practices (LTPs), such as kaizen and value stream mapping (VSM) and lean social…

279

Abstract

Purpose

This article aims to introduce a guide to improving hospital bed setup by combining lean technical practices (LTPs), such as kaizen and value stream mapping (VSM) and lean social practices (LSPs), such as employee empowerment.

Design/methodology/approach

Action research approach was employed to analyze the process of reconfiguration of bed setup management in a Brazilian public hospital.

Findings

The study introduces three contributions: (1) presents the use of VSM focused specifically on bed setup, while the current literature presents studies mainly focused on patient flow management, (2) combines the use of LSPs and LTPs in the context of bed management, expanding current studies that are focused either on mathematical models or on social and human aspects of work, (3) introduces a practical guide based on six steps that combine LSPs and LSPs to improve bed setup management.

Research limitations/implications

The research focused on the analysis of patient beds. Surgical beds, delivery, emergency care and intensive care unit (ICU) were not considered in this study. In addition, the process indicators analyzed after the implementation of the improvements did not contemplate the moment of the COVID-19 pandemic. Finally, this research focused on the implementation of the improvement in the context of only one Brazilian public hospital.

Practical implications

The combined use of LSPs and LTPs can generate considerable gains in bed setup efficiency and consequently increase the capacity of a hospital to admit new patients, without the ampliation of the physical space and workforce.

Social implications

The improvement of bed setup has an important social character, whereas it can generate important social benefits such as the improvement of the admission service to patients, reducing the waiting time, reducing hospitalization costs and improving the hospital capacity without additional physical resources. All these results are crucial for populations, their countries and regions.

Originality/value

While the current literature on bed management is more focused on formal models or pure human and social perspectives, this article brings these two perspectives together in a single, holistic framework. As a result, this article points out that the complex bed management problem can be efficiently solved by combining LSPs and LTPs to present theoretical and practical contributions to the important social problem of hospital bed management.

Details

Journal of Health Organization and Management, vol. 37 no. 2
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 7 March 2013

Frank Wiengarten, Brian Fynes and George Onofrei

This paper seeks to report the empirical results examining potential synergetic effects between investments in environmental and quality/lean practices within the supply chain.

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Abstract

Purpose

This paper seeks to report the empirical results examining potential synergetic effects between investments in environmental and quality/lean practices within the supply chain.

Design/methodology/approach

Cross‐country survey data collected by the “Global Manufacturing Research Group” within Europe was utilized to test the hypotheses. Synergetic effects were conceptualized through interaction effects using ordinary least square regression (OLS) analysis.

Findings

Results indicate that synergetic effects between traditional practices such as lean and quality and environmental practices are possible. More specifically, the impact of lean and quality practices on operational supply chain performance can be amplified through environmental practices such as ISO 14001, pollution prevention, recycling of materials and waste reduction.

Originality/value

Although research on the performance impact of environmental practices within the supply chain context has matured over the past years, there is still a scarcity of research exploring their relationship with traditional manufacturing practices such as quality and lean. Underpinned through the resource based view and the concept of complementarity, this study addresses this shortcoming through exploring the impact of environmental practices on the efficacy of quality and lean practices within a supply chain context. This paper will thus be beneficial for supply chain managers developing a case for environmental investments and will further advance research on manufacturing practices within the supply chain context.

Details

Supply Chain Management: An International Journal, vol. 18 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 16 April 2024

Satyendra Kr Sharma, Rajkumar Sharma and Anil Jindal

Supply chain vulnerability (SCV) analysis is vital for manufacturers globally because it creates a pathway for building resilient supply chains in uncertain environments. This…

Abstract

Purpose

Supply chain vulnerability (SCV) analysis is vital for manufacturers globally because it creates a pathway for building resilient supply chains in uncertain environments. This study aims to identify drivers of SCV in the Indian manufacturing sector.

Design/methodology/approach

Sixteen drivers were identified from the literature review and followed by expert interviews. Interpretive structural modeling was used to determine the hierarchical structural relationship among identified SCV factors.

Findings

It was found that risk is not a board room agenda. Misaligned performance measures with incentives and lack of risk dashboard are the causal factors of SCV. Supply chain security, centralized production and distribution and lack of trust in the supply chain were driven factors.

Originality/value

This provides new insights to assess and prioritize initiatives for supply chain sustainability in terms of continuing business operations. The structural model provides a systemic view of SCV and helps reduce vulnerability.

Details

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

Keywords

Article
Publication date: 1 October 1999

Patrick Fung

Traces the development of purchasing from a materials acquisition function to supply chain management. The paradigm shifts to recognising every purchase is also a sale and that…

6981

Abstract

Traces the development of purchasing from a materials acquisition function to supply chain management. The paradigm shifts to recognising every purchase is also a sale and that purchasing is more than buying. Contemporary purchasing incorporates strategic procurement – aligning suppliers’ performance with purchasers’ business strategies, supplier‐base management – managing the structure and culture of supplier relationship, and lean supply organisation – energising internal and external organisational teams through flexible structures and responsive information systems. Tasks for purchasing and supply chain management can be differentiated at the operational, administrative and entrepreneurial levels. An incremental approach is recommended to changing practices and policies by encouraging organisational learning, teamwork and dissemination of experience with supply chain management.

Details

Logistics Information Management, vol. 12 no. 5
Type: Research Article
ISSN: 0957-6053

Keywords

Article
Publication date: 1 August 2001

M.L. Emiliani and D.J. Stec

Discusses the types of terms and conditions that typically accompany purchasing contracts resulting from online reverse auctions for industrial components. Identifies the terms…

3094

Abstract

Discusses the types of terms and conditions that typically accompany purchasing contracts resulting from online reverse auctions for industrial components. Identifies the terms and conditions that perpetuate traditional batch‐and‐queue production practices. Concludes that buyers must construct terms and conditions that support the implementation of lean production by suppliers in order to achieve congruency with strategic business goals.

Details

Supply Chain Management: An International Journal, vol. 6 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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