The cumulative capability ‘sand cone’ model revisited: a new perspective for manufacturing strategy

The cumulative capability or the ‘sand cone’ model (Ferdows and De Meyer 1990, Lasting improvements in manufacturing performance: in search of a new theory. Journal of Operations Management, 9(2), 168–184) has been central in the debate on relations among dimensions of manufacturing performance. The central thesis of this model is that manufacturing performance is cumulative and sequential, with quality performance forming the foundation. An implicit assumption underlying the model is that the indirect effects of quality leading to delivery, then to flexibility and finally cost are stronger than direct effects among these same performance dimensions. Despite its frequent use, the sand cone model has not been empirically tested for direct and indirect effects or for the sequence of effects. Most tests have used correlations or regression relationships that only establish positive relationships among dimensions, not the specific sand cone sequence. We conduct two new tests of the actual sequence of the sand cone theory using data from 189 manufacturing plants. We do not find universal support for the sand cone theory, since some plants in our data appear to be following the sand cone sequence, while others are not. Our empirical tests support other limited evidence in the literature that a contingency theory is needed rather than an outright rejection or acceptance of the sand cone model.     

Implementation of Industry 4.0 and lean production in Brazilian manufacturing companies

The adoption of Industry 4.0 technologies has been deemed as a strategy to increase product quality and make manufacturing processes more efficient. However, the way that these technologies are integrated into existing production systems and which processes they can support is still under investigation. Thus, this paper aims to examine the relationship between lean production (LP) practices and the implementation of Industry 4.0 in Brazilian manufacturing companies. To achieve that we use data from a survey carried out with 110 companies of different sizes and sectors, at different stages of LP implementation. Data collected were analysed by means of multivariate analysis. Our findings indicate that LP practices are positively associated with Industry 4.0 technologies and their concurrent implementation leads to larger performance improvements. Further, the contextual variables investigated do matter to this association, although not all aspects matter to the same extent and effect.     

The use of manufacturing technologies–an external influence perspective

Given the generally positive relationship between technology utilisation and performance, why do some plants use installed technologies to a lesser extent than others? Literature suggests that the extent of use of technology, as a decision of choice, is influenced by a variety of factors. Organisational and individual influences include process type, plant size, perceived usefulness of the technology, and user demographics (Zhang, P., Aikman, S.N., and Heshan, S., 2008, Two types of attitudes in ICT acceptance and use. International Journal of Human–Computer Interaction, 24 (7), 628–648; Swamidass, P.M. and Kotha, S., 1998, Explaining manufacturing technology use, firm size and performance using a multidimensional view of technology. Journal of Operations Management, 17 (1), 23–37; Davis, F., Bagozzi, R., and Warshaw, P., 1989, User acceptance of computer technology: a comparison of two theoretical models. Management Science, 35 (8), 982–1003). External factors such as customer mandates and firm nationality have also been found to affect technology use (White, A., Johnson, M., and Wilson, H., 2008, RFID in the supply chain: lessons from European early adopters. International Journal of Physical Distribution and Logistics Management, 38 (2), 88–107; Kotha, S. and Swamidass, P.M., 1998, Advanced manufacturing technology use: exploring the effect of the nationality variable. International Journal of Production Research, 36 (11), 3135–3146). In this stream of research, one external factor of potential influence–supply chain management–remains conspicuously absent. This study uses data from industry to (a) develop rationales for a relationship between the extent of use of manufacturing technologies and supply chain management; and (b) offer data-based verification and insights on the nature and management of this relationship. Results suggest that the extent of use of specific manufacturing technologies increases or declines depending on the specific supply chain management practice in use. The findings raise interesting implications for managers and scholars.     

Integrated optimisation of scheduling and ordering based on semi-finished goods delayed differentiation

The implementation of dynamic ordering policies is becoming increasingly important for the competitiveness of modern manufacturing systems. However, existing models on dynamic ordering pay little attention to production scheduling, which greatly affects the fulfilment of dynamic ordering, especially in complex manufacturing systems. Therefore, it is imperative to establish a new model which integrates both dynamic ordering and production scheduling. Accordingly, a quantitative measurement method for integration is needed. To this end, this paper proposes a semi-finished goods delayed differentiation (SFGDD) model by taking into account integration of the scheduling inventory control and dynamic ordering simultaneously. The objective of this model is to study the relationship between the shop floor inventory and the ordering control based on the semi-finished goods dynamic dispatching mechanism. In addition, the days of inventory (DOI) and a backorder penalty exponential function are developed to quantitatively measure such a relationship. To obtain the optimal results, this paper employs a heuristic genetic algorithm (HGA) with a heuristic encoding scheme to synchronise the generation and selection of inventory variables coherently. A case study on a semiconductor assembly and test manufacturing (ATM) is presented, and a significant revenue enhancement and inventory reduction are achieved accordingly.     

Empirical models of the effect of integrated manufacturing on manufacturing performance and return on investment

The effect of integrated manufacturing on non-financial manufacturing performance and return on investment is studied. Technology-use data from over 1000 manufacturing plants in the USA were used to test empirically the relationships between variables integrated manufacturing, non-financial manufacturing performance and return on investment. Notable findings were (1) integrated manufacturing shows a strong effect on non-financial manufacturing performance and (2) non-financial manufacturing performance has a statistically significant direct effect on return on investment. It is recommended that the justification of investments in manufacturing technologies that contribute to integrated manufacturing must be based on non-financial manufacturing criteria as well as on return on investment. Using two different models, it is shown that the causal model developed in the study is robust.     

Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships

Consensus exists suggesting that advances in information and communication technologies are a major driver in restructuring Multinational Enterprises (MNEs) and their cross-border supply chain activities. However, the role of virtual interfirm integration and its antecedents, contingency conditions and its association with performance in international exchange relationship is not clearly specified. This study proposes that virtual interfirm integration can serve as an alternative governance mechanism for suppliers. Thus, we examine its drivers, moderators, and performance outcomes in international exchange relationships in the context of suppliers and their MNE customers. The empirical context is a study of 240 Taiwanese-based electronics equipment manufacturers. We explore the effect of communication culture, internal, inter-organizational, and environmental dimensions on virtual interfirm integration, and supplier performance in international exchange. We conclude by sharing our findings on the pertinence of virtual interfirm integration in the supplier–MNE buyer relationships.     

用系统的观点应用和发展先进制造技术

对先进制造技术的系统性特点进行了分析 ,认为随着先进制造技术开始发展成为多学科交叉融合一体化的新一代制造科学 ,在应用与发展先进制造技术不能孤立看待某一先进制造技术 ,不应以追求技术的高新为目的 ,必须用全面、整体和系统的观点及手段对其进行处理 ,协调系统内部的各个要素 ,追求总体优化 ,必须重视技术、组织、管理及人的综合 .先进制造技术必须以人为中心 ,其运作需要先进的制造模式相匹配     

New Approaches in Monitoring Multivariate Categorical Processes based on Contingency Tables in Phase II

In some statistical process control (SPC) applications, quality of a process or product is characterized by contingency table. Contingency tables describe the relation between two or more categorical quality characteristics. In this paper, two new control charts based on the WALD and Stuart score test statistics are designed for monitoring of contingency table‐based processes in Phase‐II. The performances of the proposed control charts are compared with the generalized linear test (GLT) control chart proposed in the literature. The results show the better performance of the proposed control charts under small and moderate shifts. Moreover, new schemes are proposed to diagnose which cell corresponding to different levels of categorical variables is responsible for out‐of‐control signal. In addition, we propose EWMA–WALD and EWMA–Stuart score test control charts to improve the performance of Shewhart‐based control charts in detecting small and moderate shifts in contingency table parameters. Meanwhile, we compare the performances of two proposed EWMA‐based control charts with the ones of three existing control charts called EWMA–GLT, EWMA–GLRT and an EWMA‐type control chart for multivariate binomial/multinomial processes along with the ones of the corresponding Shewhart‐based control charts. A numerical example is given to show the efficiency of the proposed methods. Finally, the effect of parameter estimation in Phase I based on m historical contingency table on the performance of the Shewhart‐based control charts is studied. Copyright © 2016 John Wiley & Sons, Ltd.     

Industry 4.0 and lean manufacturing practices for sustainable organisational performance in Indian manufacturing companies

The current literature claims the direct effects of industry 4.0 technologies (I4?T) on lean manufacturing practices (LMP) and sustainable organisational performance (SOP). LMP are also found to have a positive influence on SOP. However, the integrated effect of I4?T and LMP on SOP has not been empirically investigated. To address this gap, this research study investigates the indirect effects of I4?T on SOP with LMP as the mediating variable; furthermore, it aims to confirm or not the direct effects of I4?T on LMP and SOP. The study is based on data collected from 205 managers, working in 115 manufacturing firms. The findings suggest significant direct and indirect effects of I4?T on SOP and confirm the presence of LMP as a strong mediating variable. The results of the study extend the literature on I4?T by identifying I4?T as an enabler of LMP, leading to enhancement of the SOP. Implications and future research directions for academicians, practitioners, and consultants are provided.     

Key success factors and their performance implications in the Indian third-party logistics (3PL) industry

This paper uses the extant literature to identify the key success factors that are associated with performance in the Indian third-party logistics service providers (3PL) sector. We contribute to the sparse literature that has examined the relationship between key success factors and performance in the Indian 3PL context. This study offers new insights and isolates key success factors that vary in their impact on operations and financial performance measures. Specifically, we found that the key success factor of relationship with customers significantly influenced the operations measures of on-time delivery performance and customer satisfaction and the financial measure of profit growth. Similarly, the key success factor of skilled logistics professionals improved the operational measure of customer satisfaction and the financial measure of profit growth. The key success factor of breadth of service significantly affected the financial measure of revenue growth, but did not affect any operational measure. To further unravel the patterns of these results, a contingency analysis of these relationships according to firm size was also conducted. Relationship with 3PLs was significant irrespective of firm size. Our findings contribute to academic theory and managerial practice by offering context-specific suggestions on the usefulness of specific key success factors based on their potential influence on operational and financial performance in the Indian 3PL industry.     

Distance-based fuzzy MCDM approach for evaluating flexible manufacturing system alternatives

Considering the high required capital outlay and moderate risk of a flexible manufacturing system (FMS) investment, economic justification techniques are insufficient by themselves since they cannot cope with the benefits such as flexibility and enhanced quality offered by advanced manufacturing technologies. A robust decision-making procedure for evaluating FMS requires the consideration of both economic and strategic investment measures. A distance-based fuzzy multicriteria decision-making (MCDM) framework based on the concepts of ideal and anti-ideal solutions is presented for the selection of an FMS from a set of mutually exclusive alternatives. The proposed method provides the means for integrating the economic figure of merit with the strategic performance variables. The multicriteria decision approach presented here enables us to incorporate data in the forms of linguistic variables, triangular fuzzy numbers and crisp numbers into the evaluation process of FMS alternatives. Linguistic variables are also used to indicate the criteria's importance weights assigned by the decisionmakers. A comprehensive example illustrates the application of the multicriteria decision analysis.     

An introduction to Chinese manufacturing research institutions

The manufacturing environment has dramatically changed in the last few years. Worldwide competition among manufacturers and the development of new manufacturing technologies have contributed to today's competitive situation in many manufacturing areas. Advanced computer technology is the driver that has made global manufacturing competition possible. In this paper, the current research of advanced manufacturing technology at major institutions in China is introduced.     

Determinants of scale efficiency in the Brazilian 3PL industry: a 10-year analysis

This paper focuses on the Brazilian third-party logistics (3PL) sector which, facing increasing competition, offers clients a wide variety of services/IT technologies in the quest to bolster efficiency. The main research objective is to determine which variables significantly impact the 3PLs' scale efficiency by applying a two-stage DEA model. Based on an unbalanced panel model, secondary data from the annual study published by Revista Tecnologística (years 2001–2010) were collected and analysed. The required inputs and outputs for the analysis were identified, as were the contextual variables that can affect the scale efficiency of the 3PLs. The results support findings in the literature regarding the role coordination processes play in logistics performance. Managerial implications for both shippers and 3PLs are discussed.     

Adopting and implementing advanced manufacturing technology: new data on key factors from the aeronautical industry

The objective of this paper is to take a greater in-depth look at which factors might be considered to be key to the performance of investments made in advanced manufacturing technologies (AMT), given their supposed positive effects, and on the influence that the time these factors are taken into account during the adoption and implementation process can have on that relationship. It provides a specially devised empirical analysis in the aeronautical sector in the south of Spain. A survey of the 20 plants in the population was conducted via a postal questionnaire between July 1999 and April 2001, with a structured interview being held at a later date. The testing of hypotheses was performed by applying the t-test to independent samples. The results show that the only factor that has a clear and positive effect on performance is the training of personnel. It can also be seen that a lack of strategic planning contributes to dampening the effects of investments. These results may be of some help to management staff and public administrators in charge of promoting the process of technological innovation, by indicating actions that need to be taken in order to successfully adopt and implement AMT.     

Determinants of mobile supply chain management system diffusion: a structural equation analysis of manufacturing firms

Mobile supply chain management (SCM) is gaining recognition as a major source of cost reduction and supply chain performance improvement. The current literature related to mobile SCM needs to be extended further in order to provide insights into how manufacturing firms can implement mobile SCM successfully. Specifically, there is a need to provide empirical and systematic analysis of the variables that can explain the various stages of mobile SCM diffusion. A review of recent literature suggests that existing e-supply chain technology adoption literature is not strongly grounded in theory. A theoretical model with six hypotheses was proposed based on the technology–organisation–environment (TOE) framework and innovation diffusion theory (IDT). This study draws its survey responses from a group of manufacturing firms in order to investigate the factors that affect the diffusion of mobile SCM. The results show that the variables derived from TOE and IDT can explain mobile SCM diffusion well. However, interorganisational relationships (IORs) play a crucial role in determining the success of mobile SCM routinisation. This is one of the first known empirical studies on the factors influencing the diffusion of mobile SCM. The results of this study will help decision makers better understand the implementation process of mobile SCM and formulate strategies for successful diffusion of mobile SCM.     

A study on investments in the big data-driven supply chain,performance measures and organisational performance in Indian retail 4.0 context

The use of digital technologies such as ‘internet of things’ and ‘big data analytics’ have transformed the traditional retail supply chains into data-driven retail supply chains referred to as ‘Retail 4.0.’ These big data-driven retail supply chains have the advantage of providing superior products and services and enhance the customers shopping experience. The retailing industry in India is highly competitive and eager to transform into the environment of retail 4.0. The literature on big data in the supply chain has mainly focused on the applications in manufacturing industries and therefore needs to be further investigated on how the big data-driven retail supply chains influence the supply chain performance. Therefore, this study investigates how the retailing 4.0 context in India is influencing the existing supply chain performance measures and what effect it has on the organisational performance. The findings of the study provide valuable insights for retail supply chain practitioners on planning BDA investments. Based on a survey of 380 respondents selected from retail organisations in India, this study uses governance structure as the moderating variable. Implications for managers and future research possibilities are presented.     

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.     

Exploratory study of the adoption of manufacturing technology innovations in the USA and the UK

Manufacturing technologies, appropriately implemented, provide competitive advantage to manufacturers. The use of manufacturing technologies across countries is difficult to compare. One such comparison has been provided in the literature with a study of US and Japanese practices in advanced manufacturing technology use using a common questionnaire. The present study compares the use of 17 different technologies in similar industries in the USA ( n = 1025) and UK ( n = 166) using a common questionnaire. Largely, there are remarkable similarities between the two countries. This may partly correlate with the heavy traffic in foreign direct investment between the two nations. Notable differences are (1) across-the-board, US manufacturers are ahead of the UK firms in computerized integration with units inside and outside manufacturing organizations; (2) US manufacturers show higher labour productivity, which is consistent with macro-economic data, and (3) more UK manufacturers report the use of soft technologies such as just-in-time, total quality manufacturing and manufacturing cells. Hypotheses for future investigation are proposed.     

信任关系对IT匹配及信息共享的作用机理研究

构建了制造商与供应商间信任关系、IT匹配、信息共享、制造商运营绩效之间关系的理论模型。通过对广东省珠三角地区272家制造企业进行问卷调查,运用结构方程模型对提出的假设及概念模型进行检验。研究结果显示,能力信任对善意信任有着显著的正向影响;善意信任对信息共享、IT匹配有着显著的正向影响,但能力信任对信息共享、IT匹配的影响并不显著;IT匹配对信息共享和制造商运营绩效都有着显著的正向影响;信息共享对制造商运营绩效有着显著的正向影响。研究表明,企业不仅要通过加强对IT匹配的投资来改善信息共享及运营绩效,还要善于建立供应链伙伴间信任关系来提高信息共享及运营绩效水平。     

Conjoint measurement approach for machine-part grouping in manufacturing cell formation

In order to measure the joint effects of a set of independent variables on the ordering of a dependent variable, conjoint measurement is used. In this paper the underlying principle is applied to clustering machine-part for cellular manufacturing. Assuming machines (parts) as products and parts (machines) as attributes of the products and elements of the incidence matrix as levels of attributes, the utilities of the machine (parts) have been calculated. The method is found to produce consistently good results when applied to a wide range of problems reported in literature.