Capacity utilization analysis through time-driven ABC in a small-sized manufacturing company

2019 ◽  
Vol 69 (1) ◽  
pp. 192-216 ◽  
Author(s):  
Hümeyra Adıgüzel ◽  
Marios Floros
Keyword(s):  
Small Firms ◽  
Practical Implication ◽  
Capacity Utilization ◽  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Manufacturing Firm ◽  
Content Type ◽  
Manufacturing Company ◽  
Product Costs

Purpose The purpose of this paper is to provide a case study about the capacity utilization analysis in a small-sized manufacturing company through the application of time-driven activity-based costing (TDABC). After a brief overview of development of the TDABC system, a detailed application of TDABC and capacity utilization analysis in a bakery is given. Design/methodology/approach This paper is based on a case study about the application of TDABC in a small-sized Greek manufacturing firm. In the case study, time equations were developed for the supporting, operating and manufacturing departments and product costs determined based on the model. Capacity utilization analysis made through the application of TDABC system. Findings The study shows that TDABC is more applicable in small-sized manufacturing companies because of their labor-intensive nature. In contrast to previous studies, authors argue that even in small firms simple excel sheets are not enough to capture the complexity of the time equations and business intelligence software and programming coding is required. Research limitations/implications Although the fundamental structure of TDABC is the same for all companies there is no strict form of application. Practical implications The practical implication of this paper is that each firm has unique characteristics that need to be reflected in the application of the TDABC model. Originality/value This paper contributes by providing insights into cost accounting in SMEs. More specifically, this paper contributes to the TDABC literature regarding the application of the system in small and medium sized manufacturing firms.

Implementing a Lean Six Sigma standardized toolset in a manufacturing company: a case study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikolaos A. Panayiotou ◽  
Konstantinos E. Stergiou ◽  
Vassilis Chronopoulos
Keyword(s):  
Case Studies ◽  
Six Sigma ◽  
Success Factors ◽  
Manufacturing Sector ◽  
Lean Six Sigma ◽  
Small Scale ◽  
Manufacturing Companies ◽  
Content Type ◽  
Manufacturing Company

PurposeThe first purpose of this paper is the implementation of Lean Six Sigma (LSS) in a manufacturing company operating in South East Europe in order to understand the importance of critical success factors (CSFs) in LSS adoption and to find out the benefits that the company gained. The second purpose is to propose a standardized toolset based on DMAIC phases, for the application of LSS in small scale projects, in order to facilitate LSS adoption by more manufacturing companies.Design/methodology/approachThis case study is based on the interlacement of the Yin's method about case studies and the DMAIC method for the improved deployment of LSS.FindingsThe analysis of this case study shows that the company attained to benefit financially, operationally and organizationally from the implementation of LSS. The already existing mentality of CI inside the company helped the project procedure and the application of changes and improvements fulfilling LSS adoption CSFs.Practical implicationsThe paper constructs a toolset and studies the role of CSFs in order to achieve the desirable benefits in a manufacturing environment, constituting a guide for future LSS initiatives.Originality/valueAs stated by literature reviews, even though there are several papers concerning LSS implementation in the manufacturing sector, there is a need for more case studies papers, such as this one, in order to enrich the literature. In this paper, it is also the first time that a specific toolset for small scale projects is proposed based on to DMAIC which can be implemented in further LSS projects.

Influence of technological innovation on performance of small manufacturing companies

2017 ◽  
Vol 66 (7) ◽  
pp. 838-856 ◽  
Author(s):  
Davinder Singh ◽  
J.S. Khamba ◽  
Tarun Nanda
Keyword(s):  
Technological Innovation ◽  
Small Firms ◽  
Service Sector ◽  
Northern Region ◽  
Manufacturing Firms ◽  
Small Scale ◽  
Manufacturing Companies ◽  
Technology Infrastructure ◽  
Manufacturing Firm ◽  
Content Type

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.

scholarly journals Time-driven activity-based costing

2017 ◽  
Vol 14 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Rúben Silva Barros ◽  
Ana Maria Dias Simões da Costa Ferreira
Keyword(s):  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Food Sector ◽  
Content Type ◽  
Frozen Food ◽  
Service Companies ◽  
Manufacturing Company ◽  
Production Areas ◽  
Automated Procedures ◽  
Practical Implications

Purpose By designing a pilot time-driven activity-based costing (TDABC) model, this study aims to examine in depth the suitability and the complexity of TDABC in a manufacturing company. Design/methodology/approach To obtain a deeper understanding on the matters to analyse, this research adopts an interventionist approach. The host organisation is GP, a Portuguese company in the frozen food sector. Findings The authors’ experience allows them to assert that TDABC is suitable for a manufacturing company and it is able to deal with the variability of the industrial processes. Nonetheless, through a comparison with the models presented in the literature, TDABC appears to be more complex for manufacturing. The authors argue that this happens for two reasons. First, the two types of resources (human labour and machinery) used in production areas create a need to split tasks and to create two equations for each process, something that does not happen in service companies. Second, times are difficult to individualise for certain highly automated procedures, which could also give rise to some errors. Research limitations/implications The designed model is compared to other models presented in the literature. Practical implications This study shows a real example of TDABC in manufacturing and the procedural innovation of the time equations. Originality/value As the TDABC literature has been mostly focused on examples of service companies, the authors examine the technical suitability and the complexity of TDABC in manufacturing companies.

Inventory control weaknesses – a case study of lubricant manufacturing company

2018 ◽  
Vol 25 (2) ◽  
pp. 436-449 ◽  
Author(s):  
Norazira Abd Karim ◽  
Anuar Nawawi ◽  
Ahmad Saiful Azlin Puteh Salin
Keyword(s):  
Inventory Control ◽  
Standard Operating Procedures ◽  
Manufacturing Companies ◽  
Content Type ◽  
Depth Analysis ◽  
Standard Operating ◽  
Manufacturing Company ◽  
Cycle Count ◽  
Control And Management

Purpose For a manufacturing company, inventory control and management is crucial to ensure smooth production and sustainable sales performance, as well as preventing stockout that will result in customer switch to competitors. This paper aims to examine the effectiveness of cycle count activities, one of the inventory control tools to manage inventory. Beside, this study also wishes to identify any loopholes in practices and procedures in inventory control of companies. Design/methodology/approach One of the lubricant manufacturing companies in Malaysia was selected as a case study and mixed method data collection of document analysis and observation were used. The analysis and examination was conducted by using Committee of Sponsoring Organization of the Treadway Commission Framework 2013 as guidance. Findings This study found that problems in inventory control can be caused by inconsistency of practices due to incomplete or absent standard operating procedures. Furthermore, no segregation of duties and excessive reliance on one person to conduct many tasks will lead to human error and fraud. Research limitations/implications This paper enhances the theoretical understanding on the inventory control and management system applied in the manufacturing organization particularly. However, frequent changes of the management in the organization of the case study make the study difficult to obtain consistent information. Not all standard operating procedures were revised or updated and available for examination. In addition, some of the reports needed for investigation are confidential and requests to observe and scrutinize information from those documents are denied by the company. Thus, more in-depth analysis and verification on the issues of interest were unable to be conducted. Practical implications This study provides an indicator that cycle count activities need to be conducted frequently on a regular basis so that the physical inventory and recording system are accurate. Cycle count activities also must involves various related departments in the company in which regular training is essential to ensure employees are aware and understand their responsibility and accountability on the inventory. Originality/value This study is original as it focuses on the inventory control management of one of the largest lubricant manufacturing in Malaysia, particularly on cycle count activities which is scare in literature. Furthermore, the company allows research access to the documents and operations conducted in the company, which is usually difficult to obtain from many companies.

Territorial capital as a company intangible

2016 ◽  
Vol 17 (1) ◽  
pp. 148-167 ◽  
Author(s):  
Mariachiara Barzotto ◽  
Giancarlo Corò ◽  
Mario Volpe
Keyword(s):  
Great Difficulty ◽  
Future Research ◽  
Manufacturing Companies ◽  
Policy Makers ◽  
Content Type ◽  
Capital Growth ◽  
Multiple Case ◽  
Definition Of ◽  
A Company

Purpose – The purpose of this paper is twofold. First, to explore to what extent being located in a territory is value-relevant for a company. Second, to understand if a company is aware of, and how it can sustain, the territorial tangible and intangible assets present in the economic area in which it is located. Design/methodology/approach – The study presents an empirical multiple case-study, investigating ten mid-/large-sized Italian companies in manufacturing sectors. Findings – The results indicate that the sampled manufacturing companies are intertwined with the environment in which they are embedded, both in their home country and in host ones. The domestic territorial capital has provided, and still provides, enterprises with workers endowed with the necessary technical skills that they can have great difficulty in finding in other places. In turn, companies support territorial capital generation through their activities. Research limitations/implications – To increase the generalisability of the results, future research should expand the sample and examine firms based in different countries and sectors. Practical implications – Implications for policy makers: developing effective initiatives to support and guide a sustainable territorial capital growth. Implications for managers and investors: improving managerial and investors’ decisions by disclosing a complete picture of the enterprise, also outside the firm boundaries. Originality/value – The study contributes to intangibles/intellectual capital literature by shedding light on the importance of including territorial capital in a company’s report to improve the definition of the firm’s value. Accounting of the territorial capital would increase the awareness of the socio-economic environment value in which companies are located and its use.

Assessing Industry 4.0 readiness in manufacturing: a self-diagnostic framework and an illustrative case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Krishnamurthy Ramanathan ◽  
Premaratne Samaranayake
Keyword(s):  
Diagnostic Tool ◽  
Industry 4.0 ◽  
Emerging Economy ◽  
Illustrative Case ◽  
Assessment Framework ◽  
Structured Interviews ◽  
Readiness Assessment ◽  
Manufacturing Firm ◽  
Content Type

PurposeThe purpose of this paper is to present an Industry 4.0 Readiness Assessment Framework (I4.0RAF) and demonstrate its applicability and practical relevance through a case study of a large manufacturing firm in an emerging economy.Design/methodology/approachThe research firstly involved a synthesis of recent literature for the identification of important determinants, and their constituent criteria, for assessing the readiness of a manufacturing firm to transition to an Industry 4.0 setting and structuring them into a readiness assessment framework that can be used as a self-diagnostic tool. The framework was illustrated through a case study. The empirical findings of readiness assessment are validated using semi-structured interviews of senior management of the organization.FindingsThe proposed I4.0RAF was found to be a practically applicable self-diagnostic tool that can be used to assess a firm's readiness to transition to an Industry 4.0 setting with respect to eight important determinants. Cross-functional participation in the assessment helped the organization to determine priorities and interdependencies among the determinants.Research limitations/implicationsThe determinants and their constituent criteria can be further streamlined using inputs from practitioners, consultants and academics.Practical implicationsThe findings demonstrate the interdependencies between the determinants, help to delineate interventions that can lead to synergistic outcomes and enabls planning to achieve higher levels of Industry 4.0 maturity.Originality/valueA self-diagnostic tool as a basis for an informed discussion on transitioning to an Industry 4.0 setting is presented and illustrated through a case study in an emerging economy.

Judicial corruption: the case of Nigeria

2018 ◽  
Vol 25 (4) ◽  
pp. 926-939
Author(s):  
Vasudev Das
Keyword(s):  
Practical Implication ◽  
Self Control ◽  
Reasonable Doubt ◽  
Social Implication ◽  
Content Type ◽  
Judicial Corruption ◽  
Causative Factors ◽  
Study Results ◽  
Low Self Control

Purpose The purpose of this paper is to diagnostically explore the phenomenon of judicial corruption in Nigeria, its causative factors and generate strategies such as sonic therapeutic intervention, among others, that would facilitate an amelioration of the situation. The judiciary which is supposed to be last hope of justice for the Nigerian citizenry has been proven beyond reasonable doubt to have been infected with the virus of corruption, and therefore, an urgent call for action to rectify the situation is imperative. Design/methodology/approach The study uses a qualitative approach rooted in case study tradition. Findings The findings showed that power and testosterone, cheating proclivity, family pressure, qualitative passion and ignorance, low self-control, inordinate kleptocratic desire, unrestrained mind and sensory modalities, phenomenological mindset and identity crisis as endogenous contributive factors of judicial corruption in Nigeria. Research limitations/implications The limitation of the study stemmed from the fact that inasmuch as a perception of corruption and corruption are cultural phenomena, the study results cannot be generalizable. Practical implications The practical implication of the research is rooted in the fact that the Nigerian judiciary can gain from the study results and recommendation(s) if implemented without fear or favor for the overall renewal of the judiciary and the nation at large. Social implications The study is geared toward ameliorating the Nigerian corrupt judiciary or repositioning the judiciary on its pivotal dignity, and hence, its social implication cannot be overemphasized inasmuch as a positive social change would prevail if the study results and recommendation(s) are aligned with and implemented. Originality/value Inquiry on judicial corruption through the lens of qualitative research with Nigeria as a case study is highly understudied, and hence, this research fills the gap in the financial crime literature.

Benchmarking of TQM practices in the Jordanian pharmaceutical industry (a comparative study)

2018 ◽  
Vol 25 (9) ◽  
pp. 4058-4083 ◽  
Author(s):  
Maysoon Mohammed Yaseen ◽  
Rateb J. Sweis ◽  
Ayman Bahjat Abdallah ◽  
Bader Yousef Obeidat ◽  
Nadia J. Sweis
Keyword(s):  
Quality Management ◽  
Comparative Studies ◽  
Pharmaceutical Manufacturing ◽  
Current Status ◽  
Pharmaceutical Companies ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Critical Factors ◽  
Content Type ◽  
Manufacturing Company

Purpose The purpose of this paper is to establish practical guidelines for benchmarking eight total quality management (TQM) practices vital to pharmaceutical companies’ performance. The paper also proposes the use of an analytic total quality index (TQI) as a benchmarking tool and illustrates the importance and effectiveness of this benchmarking methodology by applying it in two comparative studies of three Jordanian pharmaceutical companies. Design/methodology/approach In order to achieve the above-mentioned purpose, the data were gathered through a questionnaire that was used to evaluate the gap between the ideal and current status of the quality management system and distributed to the quality units from three companies: pharmaceutical manufacturing company, a pharmaceutical manufacturing company working in the same field and a pharmaceutical service providing research services to a pharmaceutical manufacturing companies. And the mean differences between the current and ideal states for the eight critical TQM practices were compared for these two comparative studies using the t-test. Findings Each of the two comparisons reveals statistically significant differences regarding the perceptions of actual and ideal scores for manufacturing and service companies on five out of eight critical factors and, on two out of eight critical factors for manufacturing and manufacturing companies. Practical implications The pharmaceutical companies, regardless of whether they are manufacturing or service company, can adopt benchmarking techniques which were applied in this case study to improve their performance and their product/service quality. Originality/value The consequences of this research can support organization managers and policy makers in effectively benchmarking the identified TQM practices in their organizations using the proposed TQI benchmarking tool.

Selection of lean manufacturing systems using the PROMETHEE

2008 ◽  
Vol 3 (1) ◽  
pp. 40-70 ◽  
Author(s):  
G. Anand ◽  
Rambabu Kodali
Keyword(s):  
Decision Making ◽  
Lean Manufacturing ◽  
Manufacturing Systems ◽  
Strategic Decision ◽  
Computer Integrated Manufacturing ◽  
Preference Ranking ◽  
Manufacturing Strategy ◽  
Manufacturing Companies ◽  
Content Type

PurposeIn recent years, many manufacturing companies are attempting to implement lean manufacturing systems (LMS) as an effective manufacturing strategy to survive in a highly competitive market. Such a process of selecting a suitable manufacturing system is highly complex and strategic in nature. The paper aims to how companies make a strategic decision of selecting LMS as part of their manufacturing strategy, and on what basis such strategic decisions are made by the managers.Design/methodology/approachA case study of a small‐ and medium‐sized enterprise is presented, in which the managers are contemplating on implementing either computer integrated manufacturing systems (CIMS) or LMS. To supplement the decision‐making process, a multi‐criteria decision making (MCDM) model, namely, the preference ranking organisation method for enrichment evaluations (PROMETHEE) is used to analyse how it will impact the stakeholders of the organisation, and the benefits gained.FindingsAn extensive analysis of PROMETHEE model revealed that LMS was the best for the given circumstances of the case.Research limitations/implicationsThe same problem can be extended by incorporating the constraints (such as financial, technical, social) of the organisation by utilising an extended version of PROMETHEE called the PROMETHEE V. Since, a single case study approach has been utilised, the findings cannot be generalized for any other industry.Practical limitations/implicationsThe methodology of PROMETHEE and its algorithm has been demonstrated in a detailed way and it is believed that it will be useful for managers to apply such MCDM tools to supplement their decision‐making efforts.Originality/valueAccording to the authors’ knowledge there is no paper in the literature, which discusses the application of PROMETHEE in making a strategic decision of implementing LMS as a part of an organisation's manufacturing strategy.

Reshoring drivers and barriers in the Swedish manufacturing industry

2018 ◽  
Vol 11 (2) ◽  
pp. 174-201 ◽  
Author(s):  
Gabriella Engström ◽  
Kristina Sollander ◽  
Per Hilletofth ◽  
David Eriksson
Keyword(s):  
Manufacturing Industry ◽  
Future Research ◽  
Location Decisions ◽  
Location Decision ◽  
Manufacturing Companies ◽  
Content Type ◽  
Manufacturing Location ◽  
Practical Implications ◽  
Insight Into

PurposeThe purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.Design/methodology/approachThis paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.FindingsThe findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.Research limitations/implicationsThe study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.Practical implicationsThe drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.Originality/valueThis is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.

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