A competitive progression perspective of JIT systems: evidence from early US implementations

This study investigates the holistic implementation of just-in-time (JIT) manufacturing. We contend that the most important elements of holistic JIT systems – focused factory, reduced setup times, group technology, total productive maintenance, multifunction employees, uniform workload, just-in-time purchasing, Kanban, total quality control and quality circles – should be implemented in a sequential manner for a firm to reap sustainable operational gains. The right sequence of implementation of JIT practices is derived using the theory of competitive progression and based on four JIT practice bundles – conformance quality related practices, delivery reliability related practices, volume flexibility related practices and low cost related practices. Data collected in a cross-sectional field study of US manufacturers are used to test the suggested implementation sequence of JIT practices and the impact of the JIT practice bundles on improvement in non-value added performance. The results indicate that implementations of JIT management practices should be in the order – first, conformance quality related practices; second, delivery reliability related practices; third, volume flexibility related practices and; finally low cost related practices. In addition, significant improvement in operational performance, as reflected in improvement of non-value added performance, is achieved via the cumulative capability building.     

Taking an innovative approach to quality practices: exploring the importance of a company’s innovativeness on the success of TQM practices

Quality management practices such as total quality management (TQM) are continuously applied to improve firm performance. However, recent quality researchers have found contradictory performance evidence highlighting that the success of TQM might depend on various contextual factors. Specifically, researchers and practitioners have recognised similarities and considerable overlap between TQM and innovative practices, which suggests that innovativeness plays a contextual role. However, this putative relationship remains unexplored. The purpose of this study is to assess the importance of innovativeness to the success of TQM practices through applying contingency theory. Using data collected through a large-scale survey, we carry out an empirical study and produce robust results that strongly confirm such a contextual role of innovativeness. Specifically, we identify that the seven practices closely related to TQM, namely visionary leadership, internal and external cooperation, learning, process management, continuous improvement, employee fulfilment, and customer satisfaction, have a significantly stronger impact on operational performance in companies characterised by a high level of innovativeness.     

Lean and green combine to impact environmental and operational performance

We assess the antecedent link between lean and green practices and assess the combined impact of lean and green practices on both environmental and operational performance. A lean and green practices performance model is proposed that incorporates lean and green practices as antecedents to both environmental and operational performance. Structural equation modelling was used to analyse data collected from a sample of 182 manufacturing managers in U.S. plants. We found that lean manufacturing practices are positively associated with environmental performance and operational performance and that green supply chain management practices are positively associated with environmental performance and environmental performance is positively associated with operational performance. No support was found for the idea that green supply chain management practices are positively associated with operational performance. While lean practices were found to directly affect environmental performance, the indirect effect of lean practices on environmental performance through green practices is stronger, indicating complementarity.     

Enhancing the firm's performance through quality and supply base management: An empirical study

Over the past ten years, both total quality management and supply base management have become significant strategic tools for firms that are striving to achieve competitive success. This study examines firms' operational quality approaches, supplier evaluation practices, and supply base management activities, and relates these strategic initiatives to firm performance. Hypotheses were tested through the use of bivariate correlation, factor analysis and multiple regression analysis of survey data from a cross-industry sample of quality directors and vice presidents in US firms. While many strategic quality approaches and supply base management tools are positively correlated with firm performance, our results show that quality management and supply base management techniques and tools must be implemented conjointly to achieve superior financial and business performance. The implication is that managers must seek to integrate the activities of quality assurance with those of purchasing and materials management.     

The impact of supply chain analytics on operational performance: a resource-based view

This study seeks to better understand the role of supply chain analytics (SCA) on supply chain planning satisfaction and operational performance. We define the architecture of SCA as the integration of three sets of resources, data management resources (DMR), IT-enabled planning resources and performance management resources (PMR), from the perspective of a resource-based view. Based on the data collected from 537 manufacturing plants, we test hypotheses exploring the relationships among these resources, supply chain planning satisfaction, and operational performance. Our analysis supports that DMR should be considered a key building block of manufacturers’ business analytics initiatives for supply chains. The value of data is transmitted to outcome values through increasing supply chain planning and performance capabilities. Additionally, the deployment of advanced IT-enabled planning resources occurs after acquisition of DMR. Manufacturers with sophisticated planning technologies are likely to take advantage of data-driven processes and quality control practices. DMR are found to be a stronger predictor of PMR than IT planning resources. All three sets of resources are related to supply chain planning satisfaction and operational performance. The paper concludes by reviewing research limitations and suggesting further SCA research issues.     

When does lean hurt? – an exploration of lean practices and worker health and safety outcomes

This research takes a first step toward a more complete understanding of the effects of lean production on both operational and worker health and safety performance. Previous operations management literature considered only the operational performance implications of lean while previous safety literature considered only the worker health and safety implications of lean. This research considers both perspectives by providing empirical evidence on the impact of lean on operational and health and safety performance. Results from 10 case studies show that the adoption of lean practices and or an overall lean philosophy has a positive impact on operational and health and safety performance. However, there are some nuances in the role of individual practices associated with lean. The plants with the worst operational and health and safety performance in the sample were those that adopted just-in-time practices without human resource and prevention practices. The results show how both the social and technical components of lean are required for lean to have positive operational and health and safety impacts.     

Contextual and mediation analysis between TQM critical factors and organisational results in the EFQM Excellence Model framework

Following a total quality management (TQM) approach and the EFQM Model framework, this contribution aims to study the influence of TQM social factors on organisational results, by considering the TQM technical factors as a mediating variable in this relationship. Moreover, the effect of size and type of business on the implementation of TQM and results is analysed, as well as determining which TQM practices have a more important effect on the operational results. The research questions and hypotheses proposed in this research model are tested on a sample of 116 Spanish firms. The results support the reliability, validity and the high-predictive power of the EFQM Excellence Model as a framework for the implementation of TQM. Moreover, our findings indicate that TQM social factors provide a cornerstone for the success of the quality system. Similarly, TQM technical factors partially mediate the relationship between TQM social factors and results. It was also found that TQM social factors and processes management are the main predictors of operational performance. Finally, significant differences were found in TQM implementation, and in the key results of companies, based on their size; however, these differences are not significant based on the sector activity.     

Lean practices implementation and their relationships with operational responsiveness and company performance: an Italian study

Although many firms report large benefits from lean implementation, a lot of scepticism still remains regarding attainable results and the possibility to apply Lean approach outside high-volume manufacturing and stable context. In this work, combining field interviews with literature review, theoretical connections have been developed among Lean manufacturing techniques, operational responsiveness and company growth performances. A conceptual model has been proposed for investigating the network of influences among lean practices (supplier management, human resource management, just-in-time and total quality management practices), operational responsiveness (Product mix variety, Product innovation and Time effectiveness) and company growth performances in Italian companies. Using structural equation modelling, a second-order confirmatory factor analysis has been used to test the hypothesised relationships in the structural models. This study highlights that the operational responsiveness is only partially connected to a Lean strategy of a company. Indeed, the lean practices implementations are negatively influenced by product mix variety and innovation, while positively influenced by time effectiveness variables. Moreover, product mix variety and time effectiveness are the main characteristics of the operational responsiveness that positively influences company growth performances. So time effectiveness could be considered as a mediator between Lean best practices and firm growth. Moreover, no direct relationship has been found between lean bundles and firm’s performances. Lack of resources and mainly poor communication and managers’ commitment and support seem to be the main obstacles of lean implementation and success.     

The impact of market focus on operations practices

A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm's competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance.     

Supply chain integration patterns and operational performance: a plant-level survey-based analysis

Though most scholars recognise that supply chain integration (SCI) can contribute to improving operational performance, previous studies on the SCI-performance link showed mixed results and several questions on this issue remain still open. In line with a configurational perspective, this study investigates whether plants adopting multiple integration practices (i.e. full SCI adopters) perform better than plants implementing only some selected SCI practices (i.e. partial adopters) and plants which do not implement any SCI practice (i.e. non-adopters). In addition, it analyses whether partial adopters show a superior performance compared to non-adopters. Analyses based on a sample of 317 manufacturing plants reveal that full adopters perform better than non-adopters, in terms of quality, delivery, flexibility and efficiency. Among partial adopters, a particular SCI pattern, characterised by a high level of internal integration and supply chain planning, differs from non-adopters in terms of delivery, and shows results similar to full adopters in terms of quality and efficiency. More surprisingly, the other patterns of partial adopters do not significantly differ from non-adopters in any performance dimensions, and underperform full adopters in each performance. This suggests that in order to maximise SCI benefits companies should lever on multiple integration practices, and that in some cases focusing only on selected integration activities can be useless. A further interesting implication is that companies can cumulatively increase their operational performance towards a full exploitation of SCI benefits by following a certain sequence of SCI practices.     

The effect of ISO 9000 implementation on flow management

This study proposes an innovative flow management system that includes product (product and logistics) and process (human, information and decision) flow management. We identify three levels of ISO 9000 implementation (basic, advanced and supportive) as enablers, and operational performance as the outcome. The model was tested using the data-set collected from 133 ISO 9001 certified manufacturing companies in Australia. The results show that advanced implementation is positively related to both product and process flow management; supportive implementation is only positively related to process flow management while basic implementation has no significant effect on either product or process flow management. The results also show that both product and process flow management are positively related to operational performance. This study provides managerial guidelines for companies that wish to improve their innovation capabilities through ISO 9000 implementation and flow management. It also contributes to the ISO 9000 and flow management literature.     

The impact of sales and operations planning practices on manufacturing operational performance

There is a lack of rigorous empirical studies directly examining the impact of sales and operations planning (S&OP) practices on manufacturing operational performance. This paper aims to fill this gap by analysing a sample of 725 manufacturers from 34 countries. Hypotheses relate internal S&OP, integration with suppliers (IS) and integration with customers with manufacturing operational performance (delivery, quality and flexibility). The constructs were validated with structural equation modelling and the hypotheses were tested using multiple stepwise regression. Our findings showed a positive and moderate-to-large effect of internal S&OP on manufacturing performance, controlling for firm size, country economic development and market dynamics. There was no significant impact of supply chain integration on manufacturing performance. However, we found that IS positively moderated the relationship between internal S&OP and performance, suggesting that firms with mature IS amplify the effect of internal S&OP on performance. The study is among the first to empirically and rigorously establish the impacts of S&OP practices on manufacturing performance, using a large sample of manufacturers spanning different countries, markets and firm sizes. Results show that S&OP practices have a broad impact across several performance dimensions and are a powerful lever for generating manufacturing performance.     

Empirical relationships between some manufacturing practices and performance

Intense global competition, rapid technological changes, advances in manufacturing and information technology and discerning customers are forcing manufacturers to adopt manufacturing practices and competitive priorities that enable them to deliver high quality products in a short period of time. Identifying manufacturers’ competitive priorities and effective manufacturing practices has long been considered one of the key elements in manufacturing strategy research. This paper presents the results of a study conducted to identify some of the effective manufacturing practices that have a significant influence on manufacturing performance. This study also identifies the main competitive objectives of manufacturing industries that participated in the study. The results reported in this paper are based on data collected from a survey using a standard questionnaire administered to 1000 manufacturers in Australia. Evidence indicates that product quality and reliability are the main competitive factors for manufacturers and price has become surprisingly a relatively less important factor. Results show that simultaneous pursuit of advanced quality practices can neutralize the potential negative impacts of manufacturing difficulties and significantly improve product quality and manufacturing performance. Failure mode and effect analysis (FMEA) is shown to be an important tool for improving product quality and on time delivery performance. FMEA practice driven by the intention to improve customer satisfaction is more effective than that practised to fulfil customer requirements. Effective supplier relationships are shown to contribute positively to the manufacturing performance. The results also suggest that maintaining a supplier rating system and product data management and regularly updating them with field failure and warranty data are important manufacturing practices.     

Linking quality citizenship to process design: a quality management perspective

As organisations emphasise their role in society, there is a need to determine the effect of socially responsible practices on organisational processes and firm performance. Although the effect of corporate social responsibility on firm performance has been addressed from different perspectives, little is known about the influence of corporate social responsibility on organisational processes and internal operations of firms. The paper aims to make a link between corporate social responsibility, quality management practices and quality outcomes through emphasising quality citizenship as one of the practices associated with quality management. This paper provides a new perspective on the link between quality citizenship and product/process design within the quality management framework. The stakeholder theory of the firm is used to explain the formation and development of new management practices within a firm. Data were collected from managers in the petroleum industry to examine the role of quality citizenship on design and development of organisational processes. The results show that quality citizenship has a significant effect on employee involvement and an indirect effect on process design. Quality citizenship enables firms to obtain a much broader perspective on product/process design and facilitates design and development of products, services and processes that meet the needs of a broader set of customers – the stakeholders.     

Quality management and performance: An annotated review

Within the operations management literature, quality management (QM) has been one of the most popular research areas over the last two decades. QM is an integrative management philosophy aimed at the continuous improvement of performance. Consequently, the impact of QM practices on firm performance has been the subject of constant interest and challenge among researchers. Numerous empirical studies have attempted to investigate QM practice–performance relationships in different contexts. Based on an extensive review of the literature, this paper attempts to reflect the research stream on the impact of QM on firm performance and to provide insights for future research. For this purpose, the reviewed QM literature is organised and classified along three main themes: QM practices, performance and QM–performance relationships.     

Benchmarking in wastewater treatment plants: a tool to save operational costs

The economics of wastewater management and treatment is the subject of growing interest by water agencies and wastewater treatment plant (WWTP) operators. Benchmarking procedures are useful tools to assess the performance of these facilities and help identify best practices. To estimate the efficiency scores for each input involved in the operation of WWTPs, a non-radial data envelopment analysis model has been applied to a sample of Spanish WWTPs. The great advantage of this methodology is that it enables the identification of cost items on which to act to increase the efficiency at plant level. In the second stage, variables influencing efficiency scores have been identified. This analysis helps improve the understanding of how individual scores of efficiency and operating variables are related. It is shown that some factors do not affect all cost items—thus illustrating that an increase in global efficiency would not produce a reduction in all cost items. The benchmarking methodology and empirical application developed in this article could be very useful for improving the management of WWTPs and contribute to save operational costs.     

Total quality management: An empirical test for mediation effect

This study reviews empirical studies of total quality management (TQM) and has identified four different approaches of examining TQM practices-performance relationships. It reveals that a consensus on how TQM practices affect quality performance has yet to emerge. Based on their findings, some researchers conclude that 'supportive' practices can bring quality improvement, while some indicate that 'core' practices do. To add to the complexity, some support both. The current study seeks to examine the relationship between supportive and core TQM practices and their direct and indirect effects on quality performance. A mediation model was hypothesized and tested by hierarchical multiple regression based on a sample of 25 electronics companies in Hong Kong. In general, the survey study gives further support for the interdependent nature of TQM practices. The results showed that the effect of training and employee relations on quality performance might be largely transmitted by certain core quality management practices. In particular, it suggests that core TQM practices mediate the effect of supportive TQM practices on quality performance when the practices are taken as two integrated factors. Both researchers and practitioners are advised to consider the interdependencies of supportive and core factors when assessing the impact of any new technology or new management technique on an organization.     

Examining the effects of green supply chain management practices and their mediations on performance improvements

Environmental pressures have caused green supply chain management (GSCM) to emerge as an important corporate environmental strategy for manufacturing enterprises. For manufacturers to fully realise the performance potentials of GSCM, they need to integrate internal GSCM practices emphasising functional coordination with external GSCM practices such as cooperation with suppliers and customers in the implementation. Using coordination theory, this article examines three models used to evaluate the mediation relationships between the external and internal practices of GSCM with respect to environmental, economic, and operational performance. We posit that the strategic stance of manufacturing enterprises in improving their overall performance and competitive position requires a joint coordination of internal and external GSCM practices. Survey data collected from 396 Chinese manufacturing enterprises are used to validate our arguments by testing the mediation effects of two categories of GSCM practices. Our empirical results show support for the mediation effects, which indicates the importance for manufacturers to coordinate between the internal and external aspects of implementing GSCM practices to reap the performance benefits. Coordinating internal and external GSCM practices to seek performance improvements is an important aspect of the manufacturing operations strategy. The dynamics of implementing GSCM practices and the performance contingencies are worthwhile topics to pursue in future research.     

Barriers to the adoption of green operational practices at Brazilian companies: effects on green and operational performance

The objective of this paper is to verify to what degree the internal and external barriers (I/EBs) to environmental management affect the adoption of green operational practices (GOPs) and to determine whether they influence the firms’ operational and green performance in a sample of Brazilian companies. A conceptual framework with 8 hypotheses is proposed and tested at 75 companies using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with WarpPLS 4.0. The main results show that (a) the proposed framework obtained an adequate statistical adjustment, (b) the internal barriers (IBs) are more significant than the EBs when adopting GOPs, (c) GOPs relate directly to the firms’ green and operational performance (OP), (d) the IBs also indirectly influence the firms’ green and OP and (e) the firm size does not significantly influence its green and OP. This work contributes to the literature by showing that companies which are looking for green competitive advantages should try to reduce their IBs. Also, policy-makers should pay attention not only to legislation that promotes ecological modernisation, but also to create a strong set of initiatives to overcome IBs, regardless of the size of the firms.