PFDA-FMEA-VSM Application for Outsourcing Risk Analysis

Manufacturing corporations has the acceptance of the Outsourcing Process (OP) to improve industrial activities as well as to archive the revenue objectives, and with this, Risk Analysis (RA) tools are constantly used to assure expected results. Failure Mode and Effect Analysis (FMEA) is one of preferred RA tools, moreover, it is proven that FMEA adds uncertainty because of the human participation at the RA, afterward it is demonstrated that Pythagorean Fuzzy Dimensional Analysis – FMEA – Value Stream Mapping (PFDA-FMEA-VSM) method removes the uncertainty in RA, likewise it aids to the stakeholders for decision making, giving more advantages improving the use of the resources on the project. This document exhibits a real case scenario in a manufacturing firm applying PFDA-FMEA-VSM method adapted for manufacturing OP. The application of PFDA-FMEA-VSM shows solid RA results, removing the human intervention uncertainty added to the risk ranking, gives advantages to the stakeholders for visualize the main risks in detailed diagram, as well as make easier to take better decisions on where to apply resources and mitigate risks during OP.

From ‘Traditional’ Budgeting to ‘Better’ Budgeting: Navigating through ‘Stability’ and ‘Change’

Faced with criticisms on traditional budgeting, contemporary organisations have moved towards better budgeting and beyond budgeting practices. Drawing evidence from Citrus Lanka, a fast-moving consumer goods (FMCG) manufacturing firm in Sri Lanka, this paper explores amid limitations of traditional budgeting, how and why the firm moved to better budgeting rather than embracing beyond budgeting. It adopts the qualitative methodology and case study approach and mobilises the theoretical notions; ‘stability’ and ‘change’ under institutional theory. The field data illustrate how Citrus Lanka instigated evolutionary changes (towards better budgeting) rather than revolutionary changes (towards beyond budgeting), witnessing ‘stability’ of budgeting and ‘change’ towards better budgeting. This paper contributes by adding to the burgeoning budgetary control literature and extends the use of institutional theory in management accounting research by espousing how the notions of ‘stability’ and ‘change’ can co-exist. The better budgeting practice presented in this paper is a pragmatic approach. It offers practitioner pointers to managers grappling with limitations of traditional budgeting and practical difficulties of beyond budgeting on improving budgetary control through better budgeting approaches. Such an understanding is useful for managers beyond the case study firm to those across different industries and nations in adapting to the ever-changing business environment by drawing on management accounting insights.

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

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.

Supplier-dedicated resources and flexibility’s roles in a manufacturer’s superior performance

In today’s ever-changing environment, a manufacturing firm depends increasingly on suppliers to sustain its competitiveness. The recent COVID-19 pandemic has demonstrated that supply chain disruptions impair a firm’s ability to deliver customer value. The adverse effect is more significant when the supply chains in question are inflexible rather than flexible. This research argues that supplier-dedicated resources (SRs) and supplier flexibility (SF) determine a manufacturing firm’s competitive advantage (CA) and provide a comprehensive view of these supply chain-based factors in the same model. Based on data from 201 respondents in US manufacturing firms that vary in industry type and company size, the results confirm that SRs are critically extended resources for a manufacturing firm. The results also demonstrate that SF mediates the effect of SRs on a manufacturer’s sustainable CA fully. Further, the research develops and verifies SRs as a second-order construct reflecting the synergistic benefit of three subconstructs: dedicated technology, engineers and managers, and company climate.

Managing Technological Innovations at Deki Electronics

Deki Electronics was a Noida based capacitor manufacturing firm. By virtue of being a technology-based manufacturing firm, it was susceptible to risks of technology obsolescence. The company got a major shock when the lighting industry shifted from CFL to LED-based lighting within a very short span of time. Innovation was the only key to their survival. The case explores how they learnt to manage technological innovations and explores the question that how to avoid such technological shocks.

A bilevel game model for ascertaining competitive target prices for a buyer in negotiation with multiple suppliers

In this paper, a decision-support is developed for a strategic problem of identifying target prices for the single buyer to negotiate with multiple suppliers to achieve common goal of maintaining sustained business environment. For this purpose, oligopolistic-competitive equilibrium prices of suppliers are suggested to be considered as target prices. The problem of identifying these prices is modeled as a multi-leader-single-follower bilevel programming problem involving linear constraints and bilinear objective functions. Herein, the multiple suppliers are considered leaders competing in a Nash game to maximize individual profits, and the buyer is a follower responding with demand-order allocations to minimize the total procurement-cost. Profit of each supplier is formulated on assessing respective operational cost to fulfill demand-orders by integrating aggregate-production-distribution-planning mechanism into the problem. A genetic-algorithm-based technique is designed in general for solving large-scale instances of the variant of bilevel programming problems with multiple leaders and single follower, and the same is applied to solve the modeled problem. The developed decision support is appropriately demonstrated on the data of a leading FMCG manufacturing firm, which manufactures goods through multiple sourcing.

Selection of strategy for reverse logistics implementation

Purpose Reverse logistics has attracted many industries due to product recalls, enormous waste generation, competitive reasons, vast opportunity in the waste management market, and to get the maximum value out of waste recovery. Selection of the right implementation strategy is vital for reverse logistics to function efficiently. Therefore, this research aims to evaluate the criteria for selecting reverse logistics strategy and help to choose the preferred strategy for its implementation. Design/methodology/approach Three reverse logistics implementation strategies, namely, in-house, joint venture and outsourcing, are proposed. A novel hybrid fuzzy analytical hierarchy process (F-AHP) and fuzzy measurement of alternatives and ranking according to COmpromise Solution (F-MARCOS) based framework is developed to fulfil the research objective. A survey is performed on Indian manufacturing industry to demonstrate the applicability of the proposed framework. Findings The result shows that government policy and regulations, reverse logistics risks and reduced emission have prime importance for a manufacturing industry which needs to implement reverse logistics into its supply chain. Outsourcing is the preferred reverse logistics strategy followed by joint venture and in-house that a manufacturing firm in India can implement. Research limitations/implications The research results are based on the responses of the survey received. This research considers various industry sectors to test the applicability of the framework. However, for actual implementation, this survey must first be limited to a particular industry as the results will apply to that industrial sector only. Practical implications This developed framework simplifies the procedure of selecting the strategy when the industry needs to implement reverse logistics. For industries working with a smaller set of criteria, this framework is a powerful and dynamic approach for reducing and choosing the most pertinent one that helps accomplish their objectives of reverse logistics implementation strategy selection. Originality/value Based on the literature and current applicability of reverse logistics, this research proposes three models to implement reverse logistics in Indian industries. A novel hybrid F-AHP and F-MARCOS based framework is developed to handle the selection of suitable reverse logistics strategy.

An Unsupervised Machine Learning-Based Framework for Transferring Local Factories into Supply Chain Networks

Transferring a local manufacturing company to a national-wide supply chain network with wholesalers and retailers is a significant problem in manufacturing systems. In this research, a hybrid PCA-K-means is used to transfer a local chocolate manufacturing firm near Kuala Lumpur into a national-wide supply chain. For this purpose, the appropriate locations of the wholesaler’s center points were found according to the geographical and population features of the markets in Malaysia. To this end, four wholesalers on the left island of Malaysia are recognized, which were located in the north area, right area, middle area, and south area. Similarly, two wholesalers were identified on the right island, which were in Sarawak and WP Labuan. In order to evaluate the performance of the proposed method, its outcomes are compared with other unsupervised-learning methods such as the WARD and CLINK methods. The outcomes indicated that K-means could successfully determine the best locations for the wholesalers in the supply chain network with a higher score (0.812).

Impact of sustainable project management on project plan and project success of the manufacturing firm: Structural model assessment

This study has aimed to investigate the impact of sustainable project management on sustainable project planning and success in manufacturing firms. Data was collected from project management professionals in a manufacturing firm in Malaysia. A total of 231 responses were analyzed using the partial least square (PLS) method. The findings revealed that sustainable project management has a significant impact on sustainable project success and sustainable project planning. Sustainable project planning is positively correlated with sustainable project success. The results also indicated that sustainable project planning mediates the effect of sustainable project management on sustainable project success. The findings have significant insight into the body of knowledge of the project life cycle and indicated that sustainable project planning is a crucial tool attributed to project management towards the project success of the manufacturing firm. The results can be used as a guideline for organizations, providing direction in project management to achieve sustainable development for business.