Exploration of the product phase-out process in manufacturing firms

2017 ◽  
Vol 23 (5) ◽  
pp. 1000-1017 ◽  
Author(s):  
Regina Wagner ◽  
Nizar Abdelkafi ◽  
Thorsten Blecker

Purpose In today’s dynamic environment with shortened product life cycles, phase-outs because of product elimination are becoming increasingly frequent. Research on the phase-out process is still scarce. The lack of formalization of the process, especially from the labor perspective, leads to disturbances in phase-out execution. Therefore, the purpose of this paper is to analyze how phase-out is organized in industry to derive a generic labor phase-out process. Design/methodology/approach This research identifies manufacturing firms that have eliminated products in the past as an adequate sample. Data collection relies on exploratory cross-industry after-the-fact interviews of entirely finished replacement and closure phase-outs. Findings The labor phase-out process consists of four stages and each stage of several activities. There are two types of activities: rational and emotional, which should be combined to support companies in implementing a successful phase-out. Research limitations/implications Phase-out is a sensitive process, and many experts from industry do not like to discuss phase-outs, in particular closure phase-outs. Although cross-industry coverage could be achieved, companies that intend to apply the developed process should individually adapt it to their own requirements and their own context. Practical implications The presented labor process supports companies in formalizing phase-out, while identifying best practices. Originality/value This research sheds light on a phase of the production cycle – the phase-out – that has been neglected so far in the extant literature and generates insights for manufacturing companies how they can formalize this process and how they can deal with it more systematically.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Alejandro Bello-Pindado

PurposeThe purpose of this paper is to analyse the impact on manufacturing performance of human resource management (HRM) practices across two job levels within manufacturing firms in Argentina and Uruguay: that of line managers and frontline workers. HRM practices are categorised into three bundles defined by the AMO theoretical framework: ability, motivation and opportunity.Design/methodology/approachThe article uses data from a survey to 301 manufacturing plants in Uruguay and Argentina. Given the characteristics of the dependent variable, linear regression models have been estimated in order to test the hypotheses.FindingsThe results show that the ability and opportunity bundles for line managers are positively associated with manufacturing performance. However, only the motivation bundle affects manufacturing performance for frontline workers.Research limitations/implicationsThe main limitations are the use of cross-sectional data, the focus on two specific countries and the analysis of two employee categories that are not completely homogenous. The paper extends the contingency perspective in HRM by examining the relevance of job level as a contingent factor in the HRM-performance relationship in the manufacturing industry.Practical implicationsThe results suggest that manufacturing companies should target HR investments more towards line managers than to frontline employees. More specifically, they should concentrate efforts on the ability and opportunity bundles.Originality/valueThe article contributes to the very limited empirical evidence on the impact of HRM differentiation on firm performance by analysing sub-dimensions in a context not previously analysed.


Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.


2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pei-Chun Lee

PurposeThe purpose of this study was to identify technological innovation in libraries and further examine the knowledge source and their effects during the technology life cycle (TLC).Design/methodology/approachThis paper discusses the technological innovation taking place in libraries. Patent citation analysis was used to capture the trend of technological innovation associated with libraries.FindingsThe findings are as follows: (1) library technologies are now in the ascent phase of their life cycles; (2) private companies from the United States, Germany, France, Japan and the United Kingdom are the top-five owners of intellectual property rights associated with library technology and (3) patent data along with knowledge and technology indicators can be interpreted in the light of library development. The knowledge source with the highest degree of scientific and technological orientation was identified as basic material chemistry. The major technological categories that have received the greatest knowledge effect from library-associated technological innovation are chemistry, electrical engineering, instruments, mechanical engineering, with other fields (civil engineering and furniture, games) being subject to less effect.Research limitations/implicationsThere are two research limitations in this study. First, the results use single informants, patents retrieved from United States Patent and Trademark Office, as the source of data. Second, this study uses patent citation measures for exploring the knowledge source and effect of technological innovation, these measures are only subjective for those new invention highly based technological advances. This study concludes that technological innovation for libraries will be characterized by an increasing role for science-intensive and interdisciplinary areas. This study also suggests that organizational learning facilitates innovation. Therefore, a library hoping to co-evolve with dynamic environment through technological innovation should improve its organizational learning processes.Practical implicationsTheories of technology-push and demand-pull were examined in relation to technological innovation taking place in libraries. The TLC analysis indicated that library technology is mainly in the ascent stage, suggesting that libraries have not achieved the strongest technological transformation. The findings suggest that the importance of demand-pull and technology-push vary over the TLC of libraries.Social implicationsTo survive in a dynamic environment library must be able to cope with increasing complexity and high-speed technological change. It is pivotal to integrate the views of users (as customers), software houses or design companies (as suppliers) as well as other libraries (as communities) into the sustainable development strategy of a library. In these contexts, libraries with the capacity to innovate will be able to respond to new demands faster and to invent and provide new services better than noninnovative libraries.Originality/valueAnalysis based on the technological innovation perspective to identify the future development of libraries is still lacking. This paper seeks to identify the technological innovation employed in libraries to accommodate the 21st century model of information-seeking behavior. This study identifies a variety of factors that have influenced the transformation of library services, and these include technology developments and new demands from library users. To illustrate the driving forces of technology-push in libraries, this paper examines holistic-patented technologies invented for libraries.


2019 ◽  
Vol 109 (06) ◽  
pp. 454-458
Author(s):  
T. Bergs ◽  
S. Apelt ◽  
J. Rey ◽  
D. Trauth

Aufgrund von sich ständig verkürzenden Produktlebenszyklen sind produzierende Unternehmen dazu gezwungen, in immer kürzeren Zeiträumen Produktan- und -ausläufe durchzuführen. Die integrierte Herstellung von An- sowie Auslaufprodukt im gemeinsamen Fertigungssystem bietet Potenzial zur gesamtwirtschaftlichen Optimierung der Fertigung. Hieraus resultieren neue Herausforderungen beim Gestalten dieser Fertigungssysteme, die im Folgenden vorgestellt werden.   Due to ever shorter product life cycles, manufacturing companies are forced to carry out product ramp-ups and phase-outs in ever shorter periods of time. The integrated production of ramp-up and phase-out products in a common manufacturing system offers potential for the optimization of the global economy of production. This results in new challenges for planning these manufacturing systems which are presented in the following.


2019 ◽  
Vol 39 (9/10) ◽  
pp. 1099-1121 ◽  
Author(s):  
Peter Letmathe ◽  
Marc Rößler

Purpose With shortening product life cycles and an increasing number of product variants, manufacturing firms perform more production ramp-ups. In this context, learning is crucially important to quickly achieve high production process quality and stability. The paper aims to discuss this issue. Design/methodology/approach Through a laboratory experiment, this study analyzes spillover learning between consecutive ramp-ups and how this phenomenon is influenced by tacit knowledge transfer through observation and imitation. Findings The results prove the existence of spillover learning between consecutive ramp-ups. Moreover, they provide evidence how tacit knowledge transfer through observation and imitation enhances learning of new tasks in consecutive production ramp-ups. Research limitations/implications Future research could focus on the specific psychological processes driving tacit knowledge transfer and spillover learning, a topic which is only touched upon in this paper. Practical implications The findings show that manufacturing firms should not only aim at reaching a steep learning curve during a single production ramp-up, but should also take into account the effects of spillover learning with regard to future production ramp-ups. Furthermore, the paper provides novel insights concerning the allocation of workers to production tasks with regard to previous experience when introducing new personnel and during ramp-up phases. Originality/value Previous evidence on the existence and characteristics of spillover learning in production ramp-up situations is not conclusive. This paper provides new and unambiguous insights by considering different organizational settings.


2019 ◽  
Vol 31 (5) ◽  
pp. 1117-1141 ◽  
Author(s):  
Lisa Bosman ◽  
Nathan Hartman ◽  
John Sutherland

Purpose Investing in Industry 4.0 is an important consideration for manufacturing firms who strive to remain competitive in this global economy, but the uncertainty and complexity of where to focus technology investments is a problem facing many manufacturers. The purpose of this paper is to highlight a region of manufacturing firms in the Midwest USA to investigate the role of firm size, access to funds and industry type on decision to invest in and deploy various Industry 4.0 technologies. Design/methodology/approach A survey was developed, piloted, and deployed to manufacturing companies located in the Midwest USA, specifically, Indiana, USA. A total of 138 manufacturing firms completed the full survey. The survey participants were requested to rank order the various technology categories with respect to previous historical spending, workforce capabilities and anticipated return on investment. The survey was supplemented with publically available data. Due to the use of rank-order data to identify Industry 4.0 priorities, a non-parametric analysis was completed using the Kruskall Wallis test. Findings The findings suggest that manufacturers with less than 20 employees and/or less access to funds (sales less than $10m) prioritize digital factory floor technologies (e.g. technology directly impacting productivity, quality and safety of manufacturing processes). Larger manufacturers with 20 or more employees and/or access to more funds (sales greater than or equal to $10m) prioritize enterprise support operations technologies. Originality/value Research studies and reports tend to lump manufacturing’s perspective of Industry 4.0 into one homogenous group, and rarely acknowledge the limited participation of “smaller” Small and medium-sized enterprises, which account for the far majority of manufacturing firms in the USA. The value of this study is on the “novelty of approach,” in that the data collection and analysis focuses on heterogeneity of manufacturing firms with respect to size, access to funds and industry type. The findings and recommendations are beneficial and relevant to organizations supporting Industry 4.0 efforts through workforce development and economic development initiatives.


2019 ◽  
Vol 31 (6) ◽  
pp. 1003-1027 ◽  
Author(s):  
Saumyaranjan Sahoo

Purpose Many organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that are intensely embedded into organizational products, services and processes. In order to achieve higher firm performance, manufacturing firms are needed to adopt QM practices as well as develop innovation capability. Therefore, the purpose of this paper is to examine the relationship among QM, innovation capability (IC) and firm performance under both mediation and moderation models using structural equation modeling. Design/methodology/approach The approach of this study is quantitative. The data used to test the hypotheses were gathered from Indian small- and medium-sized enterprises (SMEs) interviewing senior managers with a structured questionnaire. These hypothesized relationships are tested with data collected from 134 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings Overall, the findings clearly show that QM through the firm’s IC is indirectly associated with a firm’s business performance. It supported the notion that QM practices encourage the definition of innovation strategies of products and processes within a manufacturing setup, which positively affected different aspects of firm performance. More importantly, this study supports the findings of past studies that questioned the role of QM practices in improving a firm’s IC. Research limitations/implications Some limitations of this study include: although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of senior managers of Indian manufacturing SMEs, and hence both the sample size could be increased and the nationality of the respondent/responding firms could be expanded for future research. Practical implications In light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies. The paper contains suggestions for improving manufacturing firm’s performance through developing IC and adopting QM practices. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how QM practices and firm’s IC have to interact in determining an organization’s success and sustaining its global competitiveness.


Author(s):  
Davinder Singh ◽  
J.S. Khamba ◽  
Tarun Nanda

Purpose The purpose of this paper is to examine various technological innovation influencers (TIIs) in small manufacturing firms. It introduces a study framework of technological innovation and evaluates the relevance of four TIIs to building and sustaining the competitiveness of Indian firms. Design/methodology/approach This research is based on an in-depth survey of 135 firms located in India’s Northern region. Multiple regression analysis was employed to examine the correlation between TIIs and manufacturing firm performance (MFP) for these firms. Findings The findings verify that entrepreneurial capability, technology infrastructure capability and government initiatives are the most important TIIs for small firms. The findings are also validated by using statistical t-test and canonical correlation analysis. Research limitations/implications This study uses a single informant as the source of information on each firm. The study is limited to small-scale firms in the Northern region of India. Also, the study has been conducted excluding the service sector. Originality/value Recent studies have advocated various TIIs and discussed their impact on MFP. This paper examines the determinants of technological innovation in small manufacturing firms. It introduces a study framework of technological innovation and examines the relevance of four TIIs to building and sustaining the competitiveness of Indian firms.


2015 ◽  
Vol 26 (1) ◽  
pp. 104-130 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Evangelos Psomas

Purpose – The purpose of this paper is to provide additional evidence of the impact of innovation on three dimensions of a firm’s performance, namely product quality, operational performance and financial performance. Design/methodology/approach – The analysis includes an initial exploratory factor analysis, followed by confirmatory factor analysis and structural equation modelling, in order to investigate the relations between the constructs of the proposed model. A sample of 233 Greek manufacturing firms is used for this purpose. Findings – According to the study findings, “innovation capability” directly contributes to product quality and operational performance. Although it has no direct impact on manufacturing firms’ financial performance, it has an indirect impact through the moderator of operational performance. Thus, innovation is an opportunity for a manufacturing firm to improve its performance. Research limitations/implications – The sample of the responding manufacturing companies is limited to small and medium-sized enterprises from one country (Greece). In addition, manufacturing firms from different sectors have different resources, capabilities and performance. Practical implications – The study offers clear implications for managers who should put additional emphasis on innovation as it is an important element for achieving improved overall firm performance and sustainable competitive power. Originality/value – Based on the multi-dimensional structure of innovation, this empirical study determines the contribution of “innovation capability” to specific performance dimensions of manufacturing companies.


Sign in / Sign up

Export Citation Format

Share Document