Capability mapping to improve manufacturing network performance: how a factory can target growth

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bublu Thakur-Weigold
Keyword(s):  
Operations Management ◽  
Network Performance ◽  
Manufacturing Industry ◽  
Design Science ◽  
Virtual Manufacturing ◽  
Growth Strategy ◽  
Developed Country ◽  
Content Type ◽  
Order Fulfilment ◽  
Manufacturing Network

PurposeThis paper explores growth opportunities for a contract manufacturer (CM), which operates a global virtual manufacturing network (GVMN). The Swiss factory should play a profitable role in the holding's competitive strategy, in spite of lower-cost alternatives within its network.Design/methodology/approachThe study applied a design science method over a period of two years of collaboration with the partner firm to complete three iterations of solution incubation and refinement.FindingsThe design artefact is a growth strategy for a CM with independently-managed, heterogeneous sites. A novel capability mapping tool reveals competitive advantage by deploying the GVMN as an order fulfilment system. Engineering and sales are integrated with production to project higher revenue streams in multiple locations including Switzerland.Research limitations/implicationsThe research expands the operations management (OM) focus on optimization and continuous improvement. Results indicate that local and global manufacturing capabilities can be configured to target network performance, implying that the smile curve flattens in certain GVMN configurations. The exploratory case study is limited by a lack of statistical generalizability and is specific to the contract electronics manufacturing industry.Practical implicationsManaging manufacturing as a network can restore feed-forward and feedback loops, which are disrupted by de-verticalization and externalization. The visualization positions a Swiss plant in an inimitable role, serving growth accounts, which require co-development. The order fulfilment strategy and capability maps can be adapted to other GVMNs.Social implicationsThe study presents an alternative to shuttering high-cost locations using performance improvements instead of protectionist interventions. This could have a material impact on de-industrialization in developed nations like Switzerland.Originality/valueThe strategy innovation originates in practice. Its synthesis drew on multiple disciplines to position OM as a strategic lever for competing in global value chains (GVCs). The author finds alternatives to the internationalization logic of cost arbitrage and adds to developed country studies. This is an OM contribution to the broader debate on globalization dominated by the social sciences.

An empirical examination of the relationship between globalization, integration and sustainable innovation within manufacturing networks

2018 ◽  
Vol 38 (3) ◽  
pp. 874-894 ◽  
Author(s):  
Ruggero Golini ◽  
Jury Gualandris
Keyword(s):  
Supply Chain ◽  
Operations Management ◽  
Empirical Examination ◽  
Sustainable Practices ◽  
Content Type ◽  
Manufacturing Plants ◽  
Positive Effects ◽  
Manufacturing Networks ◽  
Plant Level ◽  
Manufacturing Network

Purpose While controlling for supply chain effects, the purpose of this paper is to investigate if globalization and collaborative integration within a firm-wide manufacturing network have significant implications for the adoption of sustainable production (SP) and sustainable sourcing (SS) practices at the plant level. Design/methodology/approach The authors conceptualize SP and SS as process innovations with moderate degrees of innovativeness and apply “Organizational integration and process innovation” theory to build our conceptual model. Then, the authors use primary survey data from 471 assembly manufacturing plants operating in the US, Europe and Asia to test our hypotheses rigorously. Findings This research finds that the adoption of SP practices at the plant level is significantly and positively associated with globalization and integration of the firm-wide manufacturing network. On the contrary, the adoption of SS practices is more strongly affected by integration in the external supply chain and benefits from the manufacturing network only indirectly, through the association with SP practices. Originality/value Operations management literature devoted to sustainability has studied sustainable practices mostly from a risk management angle. Also, there exists contrasting evidence in the operations strategy literature about the positive and negative effects that globalization of a manufacturing network may have on the adoption of sustainable practices at the plant level. Moreover, several studies show how integration with supply chain partners helps manufacturing plants transition into more SP and SS practices; however, related literatures have neglected that collaborative integration within a firm-wide manufacturing network may also help to develop, or adapt to, new sustainable practices. This research represents a first attempt to resolve discordance and unveil the positive effects that manufacturing networks may have on sustainable innovations at the plant level.

Bharat Tobacco: vendor selection and vendor rating

2013 ◽  
Vol 3 (2) ◽  
pp. 1-8
Author(s):  
Monica Singhania ◽  
Gagan Gandhi
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Operations Management ◽  
Manufacturing Industry ◽  
Marketing Research ◽  
Vendor Selection ◽  
Chain Management ◽  
Content Type ◽  
Vendor Rating

Subject area Supply chain management and particularly the significance of vendors as a strategic decision making tool. Study level/applicability The case is suitable for use in the following courses: MBA programs with specialisation in operations management where it can be used to teach students the significance of vendor selection and vendor rating in supply chain management (SCM); marketing research in management where it can be used to highlight the concept of multi attribute utility theory (MAUT) and its application; advanced statistics for multi criteria decision making (MCDM); and MBA/post graduate programs in management in strategic management where it can be used to introduce the concept of SWOT analysis and Porter's five forces model. An understanding of business process improvement will enable students get a comprehensive view about the case. Case overview This case showcases the concepts of MCDM and SCM in manufacturing industry. The company wanted to select vendors and rate them in each category of raw materials in order to have a competitive advantage over competitors. Since there are multiple attributes (often contradictory in nature) based on which the vendors would be selected Kaul, Vice-President, Commercial uses multi-attribute utility theory (MAUT) to help solve the problem. The case has implications for manufacturing industry in selecting vendors to meet a raw materials need. Expected learning outcomes The case can be used to understand management concepts such as market research, supply chain management and multi criteria decision making. It can be used to: teach complexities involved in identifying attributes for vendor selection and vendor rating; help understand supply chain management in business process improvement; help students understand the application of MCDM; and help MBA students studying marketing research. The case will also be useful to students in understanding the application of MCDM in operations management. Some knowledge about cigarette manufacturing will help students to realize the depth of the case. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Bring it back? An examination of the insourcing decision

2017 ◽  
Vol 47 (2/3) ◽  
pp. 198-221 ◽  
Author(s):  
Paul L. Hartman ◽  
Jeffrey A. Ogden ◽  
Benjamin T. Hazen
Keyword(s):  
Operations Management ◽  
Manufacturing Industry ◽  
Case Study Research ◽  
Location Decisions ◽  
Content Type ◽  
Factors Affecting ◽  
Supply Chain Logistics ◽  
Starting Point ◽  
The Rich

Purpose Discussion regarding the implications of and antecedents to the decision to outsource manufacturing functions has dominated both the academic literature and popular press for over 30 years. However, economic and competitive landscapes across the globe have changed such that the tenability of outsourcing is being re-evaluated by many organizations. Using the rich body of literature regarding the decision to outsource as a starting point, the purpose of this paper is to investigate the reasons why firms insource and the associated implications thereof. Design/methodology/approach This case study research captures data from 12 firms in the manufacturing industry that have insourced a previously outsourced function. Data were collected via interviews with executives, researcher observations, and archival records over a nine-month period. Findings The findings suggest that the primary drivers for insourcing were predominantly the same as those cited for outsourcing. However, insourcing decisions are often made in response to a specific, external trigger event and not necessarily in concert with long-term, strategic goals. This is in contrast to firms’ desires to make more strategic location decisions. The findings also show that insourcing/outsourcing location decisions require continuous evaluation in order to optimize competitiveness and align with long-term firm goals. Research limitations/implications This research contributes by not only assimilating and gaining an understanding of key factors affecting insourcing decisions, but also by establishing a baseline for future investigation into this burgeoning area via the presentation of testable propositions. Practical implications This paper provides insights for supply chain, logistics, and operations management professionals who seek to better understand the critical factors that should be considered when deciding whether or not to insource. Originality/value The benefits of insourcing are being considered to a greater extent across industry, yet there is a dearth of academic or practitioner literature that business leaders and academicians can use as the basis for examining this decision. This research provides both the basis and motivation for developing knowledge in this area of increasing importance.

Linking QFD and the manufacturing network strategy

2017 ◽  
Vol 37 (2) ◽  
pp. 226-255 ◽  
Author(s):  
Maike Scherrer ◽  
Patricia Deflorin
Keyword(s):  
Operations Management ◽  
Quality Function Deployment ◽  
Single Case ◽  
Single Case Study ◽  
Data Set ◽  
Content Type ◽  
Manufacturing Networks ◽  
Different Dimensions ◽  
Manufacturing Network

Purpose The purpose of this paper is to integrate the manufacturing site and network perspectives for the purposes of strategy fulfilment, which has rarely been jointly discussed. By doing this, the site and network perspectives are broken into their constituents and linked to one another. Design/methodology/approach The paper provides qualitative research; it conducts a comprehensive literature review and merges the results with the concept of the quality function deployment to link the relevant dimensions. The developed framework is discussed based on a single case study. Findings The proposed framework relates the network and site perspectives in different dimensions, which range from the strategic dimension to the network and site dimensions. The paper, furthermore, offers the groundwork of developing relationship maps of the site and network capabilities, network configuration and coordination, and the structural and infrastructural dimensions. Research limitations/implications The paper contains a single case study and lacks foundation with a broader data set. Practical implications The results support the decision-making process of the manufacturing network managers who assess, design, and develop their manufacturing networks and attempt to gain transparency by using different levels of analysis. Originality/value The paper is the first attempt to show how the different network and site capabilities contribute to strategy fulfilment, to link the configuration and coordination dimensions of the manufacturing network level, and to link the structural and infrastructural dimensions on the site level. Thus, the authors add to multilevel research in operations management because the authors provide a combined framework for the network- and site-level analysis.

Examining employees’ safety behaviours: an industry-level investigation from Ghana

2017 ◽  
Vol 46 (8) ◽  
pp. 1915-1930 ◽  
Author(s):  
Samuel Howard Quartey
Keyword(s):  
Work Performance ◽  
Manufacturing Industry ◽  
Survey Methodology ◽  
Positive Impact ◽  
Developed Country ◽  
Content Type ◽  
Developed Economies ◽  
Simple Regression Analysis ◽  
Cultural Interventions ◽  
The Impact

Purpose The purpose of this paper is to examine employees’ safety behaviours (ESBs) within the beverage manufacturing industry. It also assessed employees’ perception of their own safety behaviours. It further investigated the impact of organisational culture (OC) on ESBs. Finally, the study identified the likely determinants of ESBs. Design/methodology/approach A survey methodology was employed as an appropriate approach. In total, 197 valid questionnaires were retrieved from employees working in the beverage manufacturing industry. The questionnaires were processed for quantitative analyses to test the hypotheses. A simple regression analysis was carried out to assess employees’ perception of their own safety behaviours and to investigate the impact of OC on ESBs. Descriptive frequencies and percentages were used to identify the determinants of ESBs. Findings The results suggest that employees’ perception of their own safety behaviour was positive. OC was reported to have a strong positive impact on ESBs. Safe working conditions, job satisfaction and organisational leadership were identified as the key organisational determinants of safety behaviours among the employees. Research limitations/implications Interpreting these findings must be done with caution as the sample size was relatively small and solely obtained from four beverage manufacturing firms. Generalising the findings from this study must also be carefully done as the study is industry-specific and country-specific. Practical implications Besides the loss of talents through unsafe behaviours, accidents can hurt work performance, productivity and profitability of an organisation. Industry organisations and their managers can therefore implement perceptual, organisational and cultural interventions that reinforce appropriate safety behaviours among employees at the workplace. Social implications Understanding these cultural, perceptual and organisational perspectives on ESBs is not only a significant input for safety behavioural analysis and interventions but can also reduce the socioeconomic cost of unsafe and risk behaviours among employees at the firm, industry, national and global levels. Originality/value The empirical tests of employees’ perception of their own safety behaviours are heavily biased towards data originating from the developed country industry settings which suggest that the dynamics of ESBs in the less developed economies are likely to be unknown. This study is first to examine ESBs in a developing country beverage manufacturing industry setting.

EEUI: a new measure to monitor and manage energy efficiency in data centers

2018 ◽  
Vol 67 (1) ◽  
pp. 111-127 ◽  
Author(s):  
Felipe Abaunza ◽  
Ari-Pekka Hameri ◽  
Tapio Niemi
Keyword(s):  
Energy Efficiency ◽  
Operations Management ◽  
Data Centers ◽  
Performance Indicator ◽  
Design Science ◽  
Content Type ◽  
Novel Approach ◽  
Energy Proportionality ◽  
Current Energy ◽  
Business And Management

Purpose Data centers (DCs) are similar to traditional factories in many aspects like response time constraints, limited capacity, and utilization levels. Several indicators have been developed to monitor and compare productivity in manufacturing. However, in DCs most used indicators focus on technical aspects of infrastructure, not efficiency of operations. The purpose of this paper is to rely on operations management to define a commensurate and proportionate DC performance indicator: the energy-efficient utilization indicator (EEUI). EEUI makes objective and comparative assessment of efficiency possible independently of the operating environment and its constraints. Design/methodology/approach The authors followed a design science approach, which follows the practitioner’s initial steps for finding solutions to business relevant problems prior to theory building. Therefore, this approach fits well with this research, as it is primarily motivated by business and management needs. EEUI combines both the amount of energy consumed by different components and their current energy efficiency (EE). It reaches its highest value when all server components are optimally loaded in EE sense. The authors tested EEUI by collecting data from three scientific DCs and performing controlled laboratory tests. Findings The results indicate that the optimization of EEUI makes it possible to run computing resources more efficiently. This leads to a higher EE and throughput of the DC while reducing the carbon footprint associated to DC operations. Both energy-related costs and the total cost of ownership are consequently reduced, since the amount of both energy and hardware resources needed decrease, while improving DC sustainability. Practical implications In comparison with current DC operations, the results imply that using the EEUI could help increase the EE of DCs. In order to optimize the proposed EEUIs, DC managers and operators should use resource management policies that increase the resource usage variation of the jobs being processed in the same computing resources (e.g. servers). Originality/value The paper provides a novel approach to monitor the EE at which computing resources are used. The proposed indicator not only considers the utilization levels at which server components are used but also takes into account their EE and energy proportionality.

scholarly journals Fostering process innovations in construction through industry–university consortium

2020 ◽  
Vol 20 (4) ◽  
pp. 569-586
Author(s):  
Rita Lavikka ◽  
Olli Seppänen ◽  
Antti Peltokorpi ◽  
Joonas Lehtovaara
Keyword(s):  
Operations Management ◽  
Business Models ◽  
Design Science ◽  
Science Research ◽  
Design Management ◽  
Construction Technology ◽  
Relevant Research ◽  
Research Topics ◽  
Content Type ◽  
Process Innovations

Purpose University research efforts have not been effective in developing lasting impacts on operations management in construction because of inadequate coordination between academia and industry. This study aims to describe the development of an industry–university (IU) relationship which has enabled the conduct of practically and scientifically relevant research. Design/methodology/approach Design science research was carried out between 2016 and 2019 to build a consortium between a university and 17 design, construction, technology and logistics companies for enabling process innovations in construction. The consortium conducted industry-funded research on various topics, such as takt production, lean design management, prefabrication, measurement of waste and business models supported by digitalisation. The academic and practical impacts of the consortium’s research projects were investigated through a survey and in-depth company interviews. Findings The paper presents a conceptual model for creating an IU relationship to support scientifically and practically relevant research. The model includes network architects who mobilised consortium development and a joint governance body that developed a shared long-term vision and selected research topics based on this vision. The results show that using the model’s approach, the consortium selected research topics that have led to both academic publications and process innovations in construction. Originality/value Using empirical data, this study describes how to create a win-win IU innovation relationship that enables the implementation of process innovations into the construction sector and, at the same time, the conduct of scientific research in construction management.

Operations strategy processes and performance

2015 ◽  
Vol 26 (2) ◽  
pp. 261-279 ◽  
Author(s):  
Kalinga Jagoda ◽  
Senevi Kiridena
Keyword(s):  
Developing Countries ◽  
Operations Management ◽  
Manufacturing Industry ◽  
Developed Countries ◽  
Superior Performance ◽  
Operations Strategy ◽  
Apparel Manufacturing ◽  
Content Type ◽  
Strategy Process ◽  
And Performance

Purpose – The purpose of this paper is to explore the significance and dynamics of alternative operations strategy (OS) processes towards developing a more complete picture of the strategy process-context-performance nexus. The findings are based on the statistical analysis of empirical evidence drawn from the contract apparel manufacturing industry in a developing country. Design/methodology/approach – Using a structured questionnaire and the key-informant approach data were collected from 109 contract apparel manufacturing firms in Sri Lanka. Cluster analysis was used to identify alternative configurations of strategy process modes. Findings – The analyses confirmed that the existence of alternative forms of OS development is statistically significant and that the alternative configurations of strategy process modes tested can all lead to superior performance, under certain circumstances. Research limitations/implications – The generalizability of these findings to other industry sectors within developing countries should be treated with caution, mainly due to the fact that the vast majority organizations selected for this study were subsidiaries of large international companies or comparable local counterparts. In order to better understand the linkages between OS and performance, data should be collected from multiple countries preferably using mixed-methods approaches. Originality/value – The findings are expected to contribute to operations management theory as they corroborate, with statistical evidence, the findings of recent qualitative studies. The results also confirm the existence of OS processes in developing countries that are consistent with the conceptual understanding developed in the context of developed countries.

Evaluating indicators for international manufacturing network under circular economy

2019 ◽  
Vol 57 (4) ◽  
pp. 811-839 ◽  
Author(s):  
Shraddha Mishra ◽  
Surya Prakash Singh ◽  
John Johansen ◽  
Yang Cheng ◽  
Sami Farooq
Keyword(s):  
Coming Out ◽  
Manufacturing Industry ◽  
Driving Factors ◽  
Raw Material ◽  
Venn Diagram ◽  
Significant Information ◽  
Content Type ◽  
Qualitative Factors ◽  
Political Economic ◽  
Manufacturing Network

Purpose The purpose of this paper is to find the driving factors for effective and efficient management of international manufacturing network (IMN) which has become increasingly important due to the intensive competition existing in the manufacturing industry. This paper presents a magnified view of different constructs of IMN and identifies the qualitative factors which are broadly classified under different constructs like political, economic, social, technological, legal and environmental. Design/methodology/approach Principal component analysis is applied to club identified factors into political, economic, social, technological and legal categories. PESTLE–SWOT approach is used to shortlist the identified factors using the elimination algorithm. Using analytical hierarchy process, weightages and rank of the identified factors are evaluated. Interpretive structural modeling is applied to understand inter-relationship among factors, and to analyze the driving power and dependence of the factors. Findings The results obtained from the above approaches are compared to identify most significant factors and the list of IMN enablers is presented using Venn Diagram. Government stability, Economic freedom, economic stability, environmental sustainability and raw material availability are coming out to be the driving factors across all techniques. Finally, the paper provides weights of the driving indicators common across all multi-criteria decision-making techniques considered. Research limitations/implications The proposed work provides significant information about the qualitative factors needed to be considered while designing and developing IMN. As identified by literature review and through expert opinions, not all 29 factors responsible for IMN development are crucial. Many factors are either interdependent or driven by others. The paper provides a useful analysis about the driving factors that need to be taken into account. Originality/value The study presents a comprehensive analysis of the IMN enablers. Furthermore, it provides managerial and theoretical implications to deal with the complexities encountered while establishing IMN.

Recent developments in China’s biopharmaceutical industry (2012-2017)

2019 ◽  
Vol 10 (3) ◽  
pp. 686-707
Author(s):  
Marcus Conlé
Keyword(s):  
Product Innovation ◽  
Academic Research ◽  
Domestic Market ◽  
Growth Strategy ◽  
Future Research ◽  
Biopharmaceutical Industry ◽  
Content Type ◽  
Drug Regulator ◽  
Recent Developments ◽  
Product Portfolios

Purpose The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017. Design/methodology/approach The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements. Findings The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy. Research limitations/implications The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies. Originality/value The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.

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