Linking continuous improvement to manufacturing performance

2018 ◽  
Vol 25 (5) ◽  
pp. 1319-1332 ◽  
Author(s):  
Shumpei Iwao ◽  
Mihail Marinov
Keyword(s):  
Continuous Improvement ◽  
Operations Management ◽  
Lean Manufacturing ◽  
Content Type ◽  
Manufacturing Operations ◽  
Organizational Activity ◽  
Manufacturing Performance ◽  
Improvement Effect ◽  
Adequate Management ◽  
Made In

Purpose The purpose of this paper is to examine factors that inhibit and facilitate the contribution of continuous improvement activities to advance performance in “lean” factories. Design/methodology/approach From the perspective of the routine dynamics theory, this paper considers the possibility of changes in the standard operating procedures (SOPs) made in the course of continuous improvement activities being ignored by employees. This paper builds a hypothesis predicting that firms where employees ignore changes in the SOP cannot achieve the intended improvement effect of these changes. This hypothesis is confirmed with comparative case studies of Toyota and Matsuo. Findings At Toyota there is an incentive to perform operations according to the SOP, while at Matsuo this incentive is not present. This difference means that process improvement activities at Toyota generate changes in manufacturing operations, while at Matsuo, although the SOP has been changed, workers continue to perform operations according to the old SOP and fail to advance performance. This paper argues that the presence/absence of an incentive to perform operations according to the SOP is dependent on whether the responsibility of the performance lies with the SOPs or employees. Additionally, this paper finds that the SOP not only limits employees’ creativities but also supports creative activities for the development of continuous improvement as an organizational activity. Research limitations/implications The generalization of our findings requires statistical support for which an extensive subsequent sampling survey including non-Japanese firms is necessary. Originality/value This study makes a new suggestion regarding the theory of routine dynamics and the fields of operations management: adequate management of consistency between the three aspects (material, ostensive and performative) of organizational routines is important for lean manufacturing.

scholarly journals Operations management body of knowledge and its relevance to manufacturing and service organizations

2018 ◽  
Vol 25 (4) ◽  
pp. 373-389 ◽  
Author(s):  
Jurandir Peinado ◽  
Alexandre Reis Graeml ◽  
Fernando Vianna
Keyword(s):  
Operations Management ◽  
Lean Manufacturing ◽  
Process Management ◽  
Work Organization ◽  
The Body ◽  
Service Organizations ◽  
Manufacturing Companies ◽  
Content Type ◽  
Service Companies ◽  
Body Of Knowledge

Purpose The purpose of this paper is to assess the differences in importance assigned by manufacturing or service organizations to topics related to operations management and its attendant body of knowledge. Design/methodology/approach The authors did this by cataloguing and analyzing vacancy announcements related to operations management, presented by manufacturing and services companies in major Brazilian human resources websites. Findings The results show that manufacturing companies primarily hire personnel with skills in routine process management, quality management, lean manufacturing, ergonomics and work organization. Service companies generally seek professionals with knowledge and experience in logistics, supply chain management and project management. Research limitations/implications This study presents some limitations that reduce the power of its conclusions. There is some degree of subjectivity in the interpretation of the contents of the analyzed ads. In order to reduce this problem, the authors who did the tabulation of data marked the situations for which there were some doubts about the classification, discussing them with the other author, until they reached a consensus on the best way to classify each one. Originality/value The discussion about the importance assigned by manufacturing and service companies to the topics of operations management is crucial for not only the results obtained, but also to stimulate the debate on topics that comprise or should comprise the body of knowledge of operations management, and the way they are incorporated into business practice. This provides an additional opportunity to reflect on the potential of operations management in supporting business managers now and in the future.

scholarly journals Measuring lean implementation for maintenance service companies

2016 ◽  
Vol 7 (1) ◽  
pp. 35-61 ◽  
Author(s):  
Stephan J. de Jong ◽  
Wouter W.A. Beelaerts van Blokland
Keyword(s):  
Transaction Cost ◽  
Discrete Event Simulation ◽  
Continuous Improvement ◽  
Lean Manufacturing ◽  
Discrete Event ◽  
Asset Specificity ◽  
Lean Implementation ◽  
Content Type ◽  
Event Simulation ◽  
Maintenance Service

Purpose – Implementation of lean manufacturing is currently performed in the production industry; however, for the airline maintenance service industry, it is still in its infancy. Indicators such as work in process, cycle time, on-time performance and inventory are useful indicators to measure lean implementation; however, a financial economic perspective taking fixed assets into consideration is still missing. Hence, the purpose of this paper is to propose a method to measure lean implementation from a fixed asset perspective for this type of industry. With the indicators, continuous improvement scenarios can be explored by value stream discrete event simulation. Design/methodology/approach – From literature, indicators regarding asset specificity to measure lean implementation are found. These indicators are analysed by a linear least square method to know if variables are interrelated to form a preliminary model. The indicators are tested by value stream-based discrete event simulation regarding continuous improvement scenarios. Findings – With the new found lean transaction cost efficiency indicators, namely, turnover, gross margin and inventory pre-fixed asset (T/FA, GM/FA and I/FA, respectively), it is possible to measure operation performance from an asset specificity perspective under the influence of lean implementation. Secondly, the results of implementing continuous improvement scenarios are measured with the new indicators by a discrete event simulation. Research limitations/implications – This research is limited to the airline maintenance, repair and overhaul (MRO) service industry regarding component repair. Further research is necessary to test the indicators regarding other airline MRO service companies and other sectors of complex service industries like health care. Practical implications – The lean transaction cost efficiency model provides the capability for a maintenance service company to simulate the effects of process improvements on operation performance for service-based companies prior to implementation. Social/implications – Simulation of a Greenfield process can involve employees with possible changes in processes. This approach supports the adoption of anticipated changes. Originality/value – The found indicators form a preliminary model, which contributes to the usage and linkage of theories on lean manufacturing and transaction cost theory – asset specificity.

scholarly journals The flexibility of industrial additive manufacturing systems

2018 ◽  
Vol 38 (12) ◽  
pp. 2313-2343 ◽  
Author(s):  
Daniel R. Eyers ◽  
Andrew T. Potter ◽  
Jonathan Gosling ◽  
Mohamed M. Naim
Keyword(s):  
Additive Manufacturing ◽  
Operations Management ◽  
Manufacturing Systems ◽  
Manufacturing System ◽  
Detailed Examination ◽  
Multiple Sources ◽  
Content Type ◽  
Commercial Practice ◽  
Systems Perspective ◽  
Manufacturing Operations

Purpose Flexibility is a fundamental performance objective for manufacturing operations, allowing them to respond to changing requirements in uncertain and competitive global markets. Additive manufacturing machines are often described as “flexible,” but there is no detailed understanding of such flexibility in an operations management context. The purpose of this paper is to examine flexibility from a manufacturing systems perspective, demonstrating the different competencies that can be achieved and the factors that can inhibit these in commercial practice. Design/methodology/approach This study extends existing flexibility theory in the context of an industrial additive manufacturing system through an investigation of 12 case studies, covering a range of sectors, product volumes, and technologies. Drawing upon multiple sources, this research takes a manufacturing systems perspective that recognizes the multitude of different resources that, together with individual industrial additive manufacturing machines, contribute to the satisfaction of demand. Findings The results show that the manufacturing system can achieve seven distinct internal flexibility competencies. This ability was shown to enable six out of seven external flexibility capabilities identified in the literature. Through a categorical assessment the extent to which each competency can be achieved is identified, supported by a detailed explanation of the enablers and inhibitors of flexibility for industrial additive manufacturing systems. Originality/value Additive manufacturing is widely expected to make an important contribution to future manufacturing, yet relevant management research is scant and the flexibility term is often ambiguously used. This research contributes the first detailed examination of flexibility for industrial additive manufacturing systems.

Integrated methodology for industrial facilities management and design based on FCA and lean manufacturing principles

Facilities ◽  
2020 ◽  
Vol 38 (7/8) ◽  
pp. 523-538 ◽  
Author(s):  
Diego Guillen ◽  
Diego Gomez ◽  
Ingrid Hernandez ◽  
Daniela Charris ◽  
Juan Gonzalez ◽  
...  
Keyword(s):  
Decision Making ◽  
Continuous Improvement ◽  
Lean Manufacturing ◽  
Primary Objective ◽  
Strategic Decision ◽  
Systematic Evaluation ◽  
Internal Quality ◽  
Strategic Decision Making ◽  
Production Plant ◽  
Content Type

Purpose The purpose of this paper is to provide a comprehensive methodology and a case study about the successful integration of FCA with continuous improvement tools for strategic decision-making processes. Reliable knowledge of the condition of tangible assets and their ability to fulfill their target activities over time are required for an assertive strategical decision process. Facility condition assessment (FCA) is a recognized methodology that allows the systematic evaluation of this performance. For those companies whose primary objective is the production of goods, decisions associated with improvements on the productive system or re-adaptation of existing assets may also require the implementation of alternative methodologies, with a direct impact on the indicators of the company and therefore on the FCA. Design/methodology/approach This study presents a methodology for the integration of FCA and lean manufacturing (LM) as a tool in strategic decision-making process that involves the integration of continuous improvement processes or significant changes in the production process, in which the condition of the installation impacts decisively the productivity of the system. Findings The results of the implementation on an insecticide and herbicide production plant indicate an increase of 33 per cent in the capacity of the formulation process and over 20 per cent reduction in the internal quality claims associated with the packaging system. Practical implications Those methodological stages are applicable to facilities in which the FCA shows the need for significant reconditioning of assets, the need to increase the efficiency and/or the production capacity. This methodology integrates elements of continuous improvement and redesign of production systems. Originality/value The original value of this paper is oriented to the capacity to integrate different FCA and LM tools through the company indicators of productivity key performance indicators and, in addition, of a comprehensive illustration based on a study case.

An investigation into manufacturing performance achievements accrued by Indian manufacturing organization through strategic 5S practices

2018 ◽  
Vol 67 (4) ◽  
pp. 754-787 ◽  
Author(s):  
Jugraj Singh Randhawa ◽  
Inderpreet Singh Ahuja
Keyword(s):  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Service Industry ◽  
Manufacturing Sector ◽  
Successful Implementation ◽  
Automotive Manufacturing ◽  
Content Type ◽  
Manufacturing Performance ◽  
Improvement Programs ◽  
Manufacturing Organization

Purpose The purpose of this paper is to evaluate the quantitative and qualitative benefits accrued by an Indian automotive parts industry through strategic 5S implementation initiatives. Design/methodology/approach The study involves evaluation of steps involved in systematic implementation of 5S program methodology in an automotive manufacturing organization and investigation of achievements accrued by the industry through the successful implementation of 5S program. Findings The empirical results of the study have revealed that effective practice of 5S program brings considerable level of improvements in the quality, production, cost optimizations, employee’s morale values and work culture in the manufacturing industry. The industry accrued both tangible and non-tangible benefits through the holistic adoption of 5S principals. 5S principals have been envisioned to further support other quality improvement programs like lean manufacturing initiatives of the organizations. Research limitations/implications The limitation of the study is that this research has been carried out in only manufacturing industry while similar study will be conducted in the service industry also. Originality/value Global competition in the manufacturing sector has provided necessary impetus for manufacturing organizations for affecting continuous improvements in manufacturing performance for achieving sustainability and profitability in the competitive market. 5S implementation is the fundamental tool for the overall achievements in both quantitative and qualitative performance enhancements in the manufacturing as well as service organizations.

The contingency role of business strategy on the relationship between operations practices and performance

2014 ◽  
Vol 21 (5) ◽  
pp. 690-712 ◽  
Author(s):  
Jayanth Jayaram ◽  
Keah Choon Tan ◽  
Tritos Laosirihongthong
Keyword(s):  
Operations Management ◽  
Business Strategy ◽  
Lean Manufacturing ◽  
Management Practices ◽  
Total Quality ◽  
Content Type ◽  
Competitive Edge ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to examine the direct influence of three types of operations management practices, namely total quality management (TQM), lean manufacturing (LEAN), and supply chain management (SCM) on operational performance. Design/methodology/approach – Cluster analysis is used to classify data collected from Thai manufacturing firms into three business strategy clusters of cost leadership, differentiation, and focussed strategy. Next, multiple-regression analysis was used to test the relationships between operations management practices and performance in each of the three strategy clusters. Findings – Results show that all three operations management practices were significantly associated with performance including the interaction of TQM and SCM. Also, the interaction of LEAN and SCM significantly affected performance for firms pursuing focussed business strategy. Practical implications – Manufacturers in developing nations can use this result to deploy appropriate operations management practices to enhance their competitive edge. Originality/value – This study explores the cross-functional alignment between strategies and practices, which have been transferred from developed to developing countries.

Design for Lean Manufacturing: Incorporating Lean Considerations During Product Development

2006 ◽  
Author(s):  
S. J. Pavnaskar ◽  
D. Weaver ◽  
J. K. Gershenson
Keyword(s):  
System Design ◽  
Continuous Improvement ◽  
Lean Manufacturing ◽  
Manufacturing Systems ◽  
Manufacturing System ◽  
Manufacturing Operations ◽  
Manufacturing System Design ◽  
Lean Engineering ◽  
Product And Process ◽  
Lean Operations

Lean has become a “must-use” philosophy for businesses today. Lean manufacturing focuses on the elimination of waste in manufacturing operations. Similarly, companies have started using lean engineering to eliminate wastes from their engineering processes. Both lean manufacturing and lean engineering yield dramatic improvements in quality, cost, and delivery. However, the philosophy of lean (manufacturing and engineering) revolves around the continuous improvement of existing processes. Costs associated with continuous improvement can be significantly reduced by incorporating “lean” considerations when designing a product, process, or manufacturing system. This is known as design for lean manufacturing (DfLM). DfLM guides the design of a product, process, or a manufacturing system to enable lean operations when in production, just as design for assembly (DFA) guides the design of a product to allow easier assembly during production. Currently, there are no guidelines that would help a product or process designer in considering to lean operations during design. Note that usage of the word “product” in this paper must be interpreted in a literary sense and not as a “widget.” The “product” of a manufacturing engineering process is a complete manufacturing system. In this paper, we consider manufacturing system design and propose a novel set of structured DfLM guidelines for designing a manufacturing system. These guidelines will be a valuable resource for manufacturing engineers to guide manufacturing system design for new products to enable lean operations once the system is in production. DfLM guidelines for system design also will help plant engineers and rapid continuous improvement managers to assess existing manufacturing systems and identify and prioritize improvement efforts. The proposed DfLM guidelines are then validated for accuracy, completeness, and redundancy by using them to evaluate an existing benchmark manufacturing system. The initial DfLM guidelines show promise for use in designing manufacturing systems that are easy to manage, flexible, safe, build quality into the products, optimize material flow, fully utilize all resources, maximize throughput, and continuously produce what the customer wants just in time. Similar guidelines can be proposed for product and process design to further enhance the efficiency of operations and reduce the overhead of continuous improvement efforts.

The role of employees' participation and managers' authority on continuous improvement and performance

2021 ◽  
Vol 41 (13) ◽  
pp. 34-64
Author(s):  
Ambra Galeazzo ◽  
Andrea Furlan ◽  
Andrea Vinelli
Keyword(s):  
Continuous Improvement ◽  
Operations Management ◽  
Polynomial Regression ◽  
Employee Participation ◽  
Theoretical Concept ◽  
Operational Performance ◽  
Management Approach ◽  
Regression Analyses ◽  
Content Type ◽  
Negatively Associated

PurposeDrawing on the theoretical concept of organisational fit, this paper questions the relevance of employees' participation in the link between continuous improvement (CI) and operational performance. The literature has long emphasised that to be successful, CI implementation needs to rely on employees' involvement as soon as its inception. This paper argues that this approach is not generalisable.Design/methodology/approachBased on a database of 330 firms across 15 countries, regression analyses were used to hypothesise that the fit between CI and employee participation is positively associated with operational performance, and that the fit between CI and centralisation of authority is negatively associated with operational performance. The authors also ran a robustness check with polynomial regression analyses and the response surface methodology.FindingsCI–employee participation fit is positively associated with operational performance, suggesting that there is less need for employees to be involved when a firm has scarcely developed CI. Employee participation becomes gradually more relevant as CI progresses. Moreover, the results demonstrate that the CI–centralisation of authority fit is negatively associated with operational performance, suggesting that a top-down management approach with centralised authority is preferable when CI is low, whereas a bottom-up management approach is helpful when a firm has extensively developed CI.Originality/valueThis research draws on the concept of organisational fit to explore the relationships between internal practices in the operations management literature. The authors suggest that managers should dynamically balance the practices of employee participation and centralisation of authority as CI improves. This study highlights that CI has different evolutionary levels that require different managerial approaches and practices.

Performance measurement system for a lean manufacturing setting

2019 ◽  
Vol 23 (3) ◽  
pp. 240-252 ◽  
Author(s):  
Samudi Perera ◽  
Chandana Perera
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Lean Manufacturing ◽  
Performance Measurement System ◽  
Structured Interviews ◽  
Content Type ◽  
Lean Practices ◽  
Manufacturing Performance ◽  
Key Performance Measures

Purpose The purpose of this paper is to propose a performance measurement system for a lean manufacturing environment, which assesses the multi-dimensional performance of lean manufacturing. Design/methodology/approach Following a case study approach, structured interviews were conducted to identify the parameters to measure the performance of a lean manufacturing apparel company. A model was developed with the analytical hierarchical process to assess the performance. Findings The proposed model consists of three levels: first level (overall manufacturing performance), second level (criteria that represent the stakeholders’ view of manufacturing performance) and third level (sub-criteria for the criteria which represent the areas affected by lean manufacturing). The model connects indicators that measure manufacturing performance with the areas required improvements, according to their relative importance to stakeholders. Research limitations/implications The interviewers’ perspectives were used to determine the importance of each manufacturing area for stakeholders. Key performance measures can vary from company to company. Practical implications Managers can use this model to identify important areas for manufacturing performance and the performance improvements driven by different types of lean practices. The results revealed that identifying stakeholders’ requirements was an important aspect of evaluating manufacturing performance. Social implications The model embeds a stakeholder approach in performance measurement, thereby providing a comprehensive model to assess performance. Originality/value This study applies the stakeholder view to identify the multi-dimensional nature of performance in a lean manufacturing setting. It also defines the key performance measures using lean practices.

Lean manufacturing and operational performance

2019 ◽  
Vol 31 (2) ◽  
pp. 217-235 ◽  
Author(s):  
Juan Carlos Hernandez-Matias ◽  
Jared R. Ocampo ◽  
Antonio Hidalgo ◽  
Antonio Vizan
Keyword(s):  
Lean Manufacturing ◽  
Structural Equation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
International Firms ◽  
Manufacturing Operations ◽  
Lean Practices ◽  
Key Factor ◽  
And Performance

Purpose Lean manufacturing (LM) constitutes a consolidated alternative that has been successfully used to increase company effectiveness and performance. However, different studies have shown that many companies that attempt to integrate LM into their manufacturing operations fail in their efforts. Recent studies have shown that soft practices are a key factor for a successful LM implementation. The purpose of this paper is to analyze an in-depth review of the different human-related lean practices (HRLP) referenced in the recent literature and to identify which of them are more relevant to a successful LM implementation. Design/methodology/approach The findings presented in this paper are based on the results of a study about the situation of LM in Spain carried out with lean production managers and frontline supervisors of 202 Spanish companies with a high percent (74 percent) of international firms with factories in different countries. The implemented methodology uses factor analysis and structural equation modeling. Findings The results shows statistical evidence of the relationship between management’s HRLP (fostering a lean culture, providing support to lean), employees’ HRLP (employee involvement and employee empowerment) and operational performance (OP) (waste reduction and flexibility). Practical implications The results have academic and practical relevance for clarifying lean phenomena, helping managers to define a sequence in which a company should implement HRLP to successfully implement LM and increase its OP. Originality/value This study fills a research gap by exploring the existing causal relationships between a greater number of variables, both dependent and independent in relation to human factors in LM implementations.

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