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Article
Publication date: 14 August 2023

Oliver von Dzengelevski, Torbjørn H. Netland, Ann Vereecke and Kasra Ferdows

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to…

Abstract

Purpose

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to answer this question, too little empirical research directly addresses this. In this study, we quantitatively and empirically investigate the financial effect of companies' production footprint in low-cost and high-cost environments for different types of production networks.

Design/methodology/approach

Using the data of 770 multinational manufacturing companies, we analyze the relationship between production footprints and profitability during four calendar semesters in 2018 and 2019 (N = 2,940), investigating the moderating role of companies' production network type.

Findings

We find that companies with networks distinguished by both high levels of product complexity and process sophistication profit the most from producing to a greater extent in high-cost countries. For these companies, shifting production to low-cost countries would be associated with negative performance implications.

Practical implications

Our findings suggest that the production geography of companies should be attuned to their network type, as defined by the companies' process sophistication and product complexity. Manufacturing in low-cost countries is not always the best choice, as doing so can adversely affect profits if the products are highly innovative and the production processes are complex.

Originality/value

We contribute to the scarce empirical literature on managing global production networks and provide a data-driven analysis that contributes to answering some of the enduring questions in this critical area.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 December 2023

Fábio de Oliveira Neves, Eduardo Gomes Salgado, Henrique Ewbank and Paulo Sampaio

Industrialization is a major contributor to pollution and the worsening of some social problems. A change in this context would help in a new industrial model aiming at a viable…

Abstract

Purpose

Industrialization is a major contributor to pollution and the worsening of some social problems. A change in this context would help in a new industrial model aiming at a viable and sustainable manufacturing system. This research aims to verify the state of the art of sustainability within the industrial production process through a systematic literature review, verifying the main characteristics in relation to industrial sustainability that the literature demonstrates.

Design/methodology/approach

The development of the research took place in three stages: a survey of articles with Journal Citation Reports (JCR), the construction of the database and descriptive analysis and text mining analyses of social networks and content. The survey took place through academically endorsed research platforms, totaling a total of 352 scientific articles, which included 18 quality management tools and worked with at least one sustainability indicator (financial, social and environmental).

Findings

Lean manufacturing, integrated management system and Six Sigma were the most cited quality tools, and articles containing the three indicators were found more frequently. It was found that most authors treated sustainability only as an environmental contribution. Knowledge of the organization's structural and management issues is essential for implementing sustainability and production process improvement.

Originality/value

This work is the first to develop a systematic analysis regarding the use of sustainability implementation in the industrial production process, considering a wide scope of production process tools, guiding on the characteristics of sustainability relating to the main critical success factors (CSFs), motivations, difficulties and benefits that lead industries in different parts of the world to implement sustainability.

Details

International Journal of Quality & Reliability Management, vol. 41 no. 5
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 17 November 2023

Matteo Dominidiato, Simone Guercini, Matilde Milanesi and Annalisa Tunisini

This paper aims to investigate sustainability-led innovation, focusing on the interplay between product and process innovation for sustainability goals and the underlying…

Abstract

Purpose

This paper aims to investigate sustainability-led innovation, focusing on the interplay between product and process innovation for sustainability goals and the underlying supplier–customer relationships. Thus, the paper delves into sustainability-led innovation and how it affects supplier–customer relationships, and vice versa, thus providing a twofold perspective.

Design/methodology/approach

The textile industry is the empirical context of this study, which is exploratory research based on in-depth, semi-structured interviews with entrepreneurs, managers and experts in the textile industry.

Findings

In the textile industry, sustainability-led product innovation concerns mainly product durability and performance, product recyclability and the use of waste for new product development. Process innovation deals with circular economy, traceability and water and chemical use minimization. The paper also shows how sustainability-led innovation is implemented in more technical terms and regarding supplier–customer relationships.

Originality/value

The paper adopts an original perspective on how processes take place in the relationships between suppliers and customers, where there is no dominance of one actor, but innovation emerges from interdependence and interaction. Such perspective allows to provide an in-depth analysis of the supplier–customer relationships and underlying dynamics that affect sustainability-led innovation; moreover, the authors study how such innovation impacts supplier–customer relationships and the underlying relational dynamics. The value of the paper also stands in delivering a real representation of the innovation processes grounded in the textile industry.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 25 April 2024

Andrei Bonamigo, Andrezza Nunes, Lucas Ferreira Mendes, Marcela Cohen Martelotte and Herlandí De Souza Andrade

This study aims to examine the impact of Lean 4.0 practices on value co-creation in the dairy ecosystem.

Abstract

Purpose

This study aims to examine the impact of Lean 4.0 practices on value co-creation in the dairy ecosystem.

Design/methodology/approach

Data collection were carried out through a questionary application with 126 professionals linked to the dairy ecosystem, including milk producers, milk cooperatives and milk transporters. The data were analyzed using Cluster Analysis, Mann-Whitney test and Chi-Square test.

Findings

A strong relation was found between the use of Lean 4.0 tools and the increase in operational performance, in addition to milk quality. Moreover, it can be noted that the use of digital technologies from Industry 4.0 has a strong relation with dairy production optimization, in other words, it is possible to be more efficient in the dairy process via Lean 4.0 adoption.

Research limitations/implications

The study is limited to analyzing the Brazilian dairy ecosystem. The results presented may not reflect the characteristics of the other countries.

Practical implications

Once the potential empirical impacts of the relation between Lean 4.0 and value co-creation are elucidated, it is possible to direct strategies for decision-making and guide efforts by researchers and professionals to deal with the waste mitigation present in the dairy sector.

Social implications

Lean 4.0 proves to be a potential solution to improve the operational performance of the dairy production system. Lean 4.0, linked to value co-creation, allows the integration of the production sector with consumers, through smart technologies, so new services and experiences can be provided to the consumer market. Additionally, the consumer experience can be stimulated based on Lean 4.0, once the quality specification is highlighted based on data science and smart management control.

Originality/value

To the best of the authors’ knowledge, this is the first study that analyzes the interrelationship between the Lean 4.0 philosophy and the value co-creation in the dairy ecosystem. In this sense, the study reveals the main contributions of this interrelation to the dairy sector via value co-creation, which demonstrates a new perspective on the complementarity of resources, elimination of process losses and new experiences for the user through digital technologies integrated with the Lean Thinking approach.

Details

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

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: 30 November 2023

Elif Kiran, Yesim Deniz Ozkan-Ozen and Yucel Ozturkoglu

This study aims to analyze lean wastes for the poultry sector in Turkey and link lean tools to this study, focusing on identifying each lean waste that affects poultry production…

Abstract

Purpose

This study aims to analyze lean wastes for the poultry sector in Turkey and link lean tools to this study, focusing on identifying each lean waste that affects poultry production and proposing solutions for preventing these lean wastes in the sector. The proposed solutions aim to improve processes by suggesting different lean tools and their applications for the poultry sector.

Design/methodology/approach

The study consists of two different applications. First, the waste relationship matrix (WRM) was created to reveal the relationship between seven lean wastes and their importance order. Then, after determining lean tools for eliminating lean wastes, the optimum weight ranking and consistency ratio of the most suitable lean tools were calculated for these wastes and ranked with the best-worst method (BWM).

Findings

Results showed that overproduction is the most critical waste that impacts other wastes, followed by defect waste. Due to the nature of the sector, these wastes not only result in economic loss for the company but also in food waste and loss and issues related to animal welfare. Furthermore, the Kaizen approach and 5S implementation are the methods to eliminate these wastes. Detailed discussion on the link between lean tools and lean wastes is provided for the poultry sector.

Originality/value

This is the first study that theoretically and empirically identifies the potential lean waste affecting the poultry sector and provides lean tools for eliminating these wastes. Sector-specific explanations and discussions are presented in the study to show the applicability of lean approaches in the poultry sector to eliminate waste. In addition, this study is the first to integrate the WRM and BWM.

Details

International Journal of Quality & Reliability Management, vol. 41 no. 5
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 15 January 2024

Marcello Braglia, Francesco Di Paco, Roberto Gabbrielli and Leonardo Marrazzini

This paper presents a new and well-structured framework that aims to assess the current environmental impact from a Greenhouse Gas (GHG) emissions perspective. This tool includes…

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Abstract

Purpose

This paper presents a new and well-structured framework that aims to assess the current environmental impact from a Greenhouse Gas (GHG) emissions perspective. This tool includes a new set of Lean Key Performance Indicators (KPIs), which translates the well-known logic of Overall Equipment Effectiveness in the field of GHG emissions, that can progressively detect industrial losses that cause GHG emissions and support decision-making for implementing improvements.

Design/methodology/approach

The new metrics are presented with reference to two different perspectives: (1) to highlight the deviation of the current value of emissions from the target; (2) to adopt a diagnostic orientation not only to provide an assessment of current performance but also to search for the main causes of inefficiencies and to direct improvement implementations.

Findings

The proposed framework was applied to a major company operating in the plywood production sector. It identified emission-related losses at each stage of the production process, providing an overall performance evaluation of 53.1%. The industrial application shows how the indicators work in practice, and the framework as a whole, to assess GHG emissions related to industrial losses and to proper address improvement actions.

Originality/value

This paper scrutinizes a new set of Lean KPIs to assess the industrial losses causing GHG emissions and identifies some significant drawbacks. Then it proposes a new structure of losses and KPIs that not only quantify efficiency but also allow to identify viable countermeasures.

Details

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

Keywords

Open Access
Article
Publication date: 12 January 2024

Patrik Jonsson, Johan Öhlin, Hafez Shurrab, Johan Bystedt, Azam Sheikh Muhammad and Vilhelm Verendel

This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?

Abstract

Purpose

This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?

Design/methodology/approach

A mixed-method case approach is applied. Explanatory variables are identified from the literature and explored in a qualitative analysis at an automotive original equipment manufacturer. Using logistic regression and random forest classification models, quantitative data (historical schedule transactions and internal data) enables the testing of the predictive difference of variables under various planning horizons and inaccuracy levels.

Findings

The effects on delivery schedule inaccuracies are contingent on a decoupling point, and a variable may have a combined amplifying (complexity generating) and stabilizing (complexity absorbing) moderating effect. Product complexity variables are significant regardless of the time horizon, and the item’s order life cycle is a significant variable with predictive differences that vary. Decoupling management is identified as a mechanism for generating complexity absorption capabilities contributing to delivery schedule accuracy.

Practical implications

The findings provide guidelines for exploring and finding patterns in specific variables to improve material delivery schedule inaccuracies and input into predictive forecasting models.

Originality/value

The findings contribute to explaining material delivery schedule variations, identifying potential root causes and moderators, empirically testing and validating effects and conceptualizing features that cause and moderate inaccuracies in relation to decoupling management and complexity theory literature?

Details

International Journal of Operations & Production Management, vol. 44 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 5 June 2023

Mohammad Hossein Zolfaghar Arani, Mahmoud Lari Dashtbayaz and Mahdi Salehi

This study aims to determine the contributing factors to technical knowledge valuation at the related quadruple levels of commercialisation, including the idea, benchtop technical…

Abstract

Purpose

This study aims to determine the contributing factors to technical knowledge valuation at the related quadruple levels of commercialisation, including the idea, benchtop technical knowledge, prototype technical knowledge and commercialised technical knowledge, and then classify the factors by the valuation objectives.

Design/methodology/approach

The study method is descriptive-causal, and documentation tools of published scientific research articles in authentic local and international journals were used to extract the contributing factors to technical knowledge valuation. Moreover, the Likert spectrum-based questionnaire is used to determine the weight of each determined component. On the other hand, hierarchical analysis is used based on the extracted results from the distributed classification questionnaire among scholars to determine the allocable weight of each component.

Findings

The results indicate that at the idea step, the highest ranks among the contributing factors to technical knowledge valuation are for the indicators of innovation rate enhancement, novelty, creation of new products, profitability growth and dependence decline. In the benchtop technical knowledge step, the indicators of profitability growth, product quality enhancement, novelty, production risk drop, innovation rate enhancement, production costs drop, product price competitiveness and independence from rare machinery have the highest impact coefficients on valuation. Moreover, the prioritisation of factors in prototype technical knowledge shows that the indicators of productive risk decline, infrastructure, decrease in product delivery time, productivity growth and profitability growth are the most critical factors in technical knowledge valuation. Finally, profitability growth factors, production cost drop, productive risk drop, creating a new product, product price competitiveness and dependence decline determine the most valuable technical knowledge in the commercialisation phase.

Research limitations/implications

The most salient innovation of the study involves the development levels of technical knowledge in the commercialisation cycle for determining the contributing factors to technical knowledge valuation and using multivariate decision-making methods to classify the so-called factors. The major limitation can be the context of the study because the paper was carried out by Iranian assessors and specialists using the experiences, opinions and approaches of opinion leaders based on the dominant social, cultural and accounting background of a developing country, not a developed one.

Originality/value

This paper is applicable because it elucidates the technical knowledge valuation factors for managers and owners of technological and knowledge-based companies to facilitate value determination and register the technical knowledge of innovative products in financial statements for the logical presentation of available intangible assets in the economic unit. Besides, in the high-tech area, collecting information from the contributing factors to technical knowledge valuation provides an opportunity to support intellectual property rights and facilitate transaction processes. Finally, in legal areas, in cases of breaching intellectual property rights relative to technical knowledge, the determination of technical knowledge value provides a solid basis for estimating the damage rate.

Details

International Journal of Innovation Science, vol. 16 no. 3
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 4 October 2021

Adeel Akmal, Nataliya Podgorodnichenko, Richard Greatbanks, Jeff Foote, Tim Stokes and Robin Gauld

The various quality improvement (QI) frameworks and maturity models described in the health services literature consider some aspects of QI while excluding others. This paper aims…

Abstract

Purpose

The various quality improvement (QI) frameworks and maturity models described in the health services literature consider some aspects of QI while excluding others. This paper aims to present a concerted attempt to create a quality improvement maturity model (QIMM) derived from holistic principles underlying the successful implementation of system-wide QI programmes.

Design/methodology/approach

A hybrid methodology involving a systematic review (Phase 1) of over 270 empirical research articles and books developed the basis for the proposed QIMM. It was followed by expert interviews to refine the core constructs and ground the proposed QIMM in contemporary QI practice (Phase 2). The experts included academics in two academic conferences and 59 QI managers from the New Zealand health-care system. In-depth interviews were conducted with QI managers to ascertain their views on the QIMM and its applicability in their respective health organisations (HOs).

Findings

The QIMM consists of four dimensions of organisational maturity, namely, strategic, process, supply chain and philosophical maturity. These dimensions progress through six stages, namely, identification, ad-hoc, formal, process-driven, optimised enterprise and finally a way of life. The application of the QIMM by the QI managers revealed that the scope of QI and the breadth of the principles adopted by the QI managers and their HOs in New Zealand is limited.

Practical implications

The importance of QI in health systems cannot be overstated. The proposed QIMM can help HOs diagnose their current state and provide a guide to action achieving a desirable state of quality improvement maturity. This QIMM avoids reliance on any single QI methodology. HOs – using the QIMM – should retain full control over the process of selecting any QI methodology or may even cherry-pick principles to suit their needs as long as they understand and appreciate the true nature and scope of quality overstated. The proposed QIMM can help HOs diagnose their current state and provide a guide to action achieving a desirable state of quality improvement maturity. This QIMM avoids reliance on any single QI methodology. HOs – using the QIMM – should retain full control over the process of selecting any QI methodology or may even cherry-pick principles to suit their needs as long as they understand and appreciate the true nature and scope of quality.

Originality/value

This paper contributes new knowledge by presenting a maturity model with an integrated set of quality principles for HOs and their extended supply networks.

Details

International Journal of Lean Six Sigma, vol. 15 no. 3
Type: Research Article
ISSN: 2040-4166

Keywords

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