Knowledge and manufacturing strategy–how different manufacturing paradigms have different requirements to knowledge. Examples from the automotive industry

In this paper we aim to give insight to how manufacturing strategies, represented by manufacturing paradigms are linked to different approaches to knowledge. Strategies are closely related to the development of core competence and how to deal with knowledge in general. In this paper we focus on how the different manufacturing strategies represent different challenges when it comes to knowledge creation and knowledge transfer. Our discussion has references to suppliers in the automotive industry, represented by a Scandinavian case. In this case the focus is on lean principles, which in contrast to mass manufacturing, represents attention to the synthetic knowledge base and tacit knowledge. Mass manufacturing, which is also still relevant in the automotive industry, is more centralised in its approach to knowledge and is focusing more on the analytical knowledge base and explicit knowledge. Knowledge should be a central part of companies’ strategies, also functional such as within manufacturing, and should cover issues such as: what is crucial knowledge, how do we create it, and how to transfer it to meet our overall company goals?     

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.     

A review of designing machine tool for leanness

As an ideology, Leanness is not a new concept but still researchers strive for developing new methods to reduce almost all kinds of identified wastages at almost every stage and in every activity ?? right from design till delivery of final product to the end-customer. Newly developed manufacturing ideologies, paradigms and systems are always critically examined from the point of view of leanness. In other words, leanness is becoming an important evaluation tool to compare the recently developed/pioneered approaches. There has been a gradual evolution of the leanness over the years from the shop floor level of a manufacturing (automobile) organization to almost every operational and management aspect now. The Leanness has undergone and still is undergoing a process of continuous and never-ending evolution due to its inherently built dynamic concept of continuous improvement. Although in the literature a lot of work has been reported to the application of lean tools, principles, theories and methodologies to production systems, but a very few is evident in the area of Lean design process of a product and machine tool. For this reason an attempt is being made here to focus a significant proportion of this paper on evolutionary aspect of leanness from manufacturing to design stage. Also, this paper reviews the concepts and practices being followed till date by the industrialists, researchers and academicians in applying lean tools and techniques in the design of product and machine tools along with the methods to measure the lean improvements in the systems.     

Model to measure the degree of competitiveness for auto parts manufacturing companies

The automotive industry has been at the forefront of the globalisation process as a result of increasing global design and manufacturing. This has imposed a heavy burden on local auto parts producers. To enable a better understanding of this problem, this paper proposes a model to measure the degree of competitiveness for auto parts manufacturing companies. The study starts by analysing the current competitive forces governing the relationship among automotive assemblers and their first-tier suppliers and proposes a model that establishes (a) a competitive standard and (b) a measure called the degree of competitiveness, to be used to evaluate how similar (or dissimilar) a given company is compared with the aforesaid standard. The proposed conceptual model was tested in real-life situations by applying it to three Brazilian auto parts manufacturers with well-known competitive positions. The model was able to reproduce the same competitive position as those perceived by the market. The model and findings cannot be generalised for other industrial segments without some review and adaptation of the competitive factors considered. If required, a different set of competitive factors could be selected while maintaining all other aspects of the model as proposed.     

Method for assessing human resources management practices and organisational learning factors in a company under lean manufacturing implementation

The implementation of lean production systems is deemed essential for companies that wish to obtain high levels of competitiveness. There are several examples in the literature discussing the adoption of lean roadmaps; however, since such maps emphasise technical factors of lean change, the organisational learning (OL) process and human resources management (HRM) practices tend to be neglected. This article presents a method for assessing the impact of HRM practices and OL factors in a company under lean implementation. The method incorporates concepts of HRM and OL into lean implementation roadmaps, enabling a maturity analysis regarding dimensions of OL at different contextualisation levels, and allowing the proposition of improvements in HRM practices. The proposed method is illustrated in a case study from the automotive parts manufacturing sector.     

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.     

Production management model integrating the principles of lean manufacturing and sustainability supported by the cultural transformation of a company

The search for superior production performance has been used by companies to overcome competition in the current global economic scenario. Efficient manufacturing connected to environmental initiatives provides a company with favourable conditions for maintaining uniform and continuous improvement in its competitive performance, while providing operational versatility to respond quickly to volatile markets. As production is one of the most expensive areas for a company, many organisations have sought a new management model for their production system that provides substantial productivity gains, cost saving opportunities and higher customer satisfaction. This study proposes a model of production management and an implementation method integrating the principles of lean manufacturing and sustainability, supported by cultural transformation at the company. Its objective was to achieve productivity gains and improvements on customer satisfaction, as well as develop the ability to provide quick responses to market changes in a globalised economy. The implementation of the proposed model should be gradual, initially addressing fundamental principles, and should operate simultaneously with, and in the same environment as, workforce development and organisational transformation initiatives, to create sustainable improvements.     

An integrated multi-objective decision making process for the performance evaluation of the vendors

The objective of the study is to select the best performing supplier among the group according to the prioritisation of performance criterion through the application of techniques like MISM (modified interpretive structural modelling), MICMAC (impact matrix cross-reference multiplication applied to a classification), and AHP (analytical hierarchy process). To understand the interaction between the factors and to prioritise them, MISM technique has been applied by using which weights have been calculated for the performance factors and establishing a contextual relationship between the available factors and then ranking of the factors is done based on the results obtained. In the MICMAC analysis, performance criteria are classified into four clusters depending upon their driving power and dependence power. This helps to find out which criteria are influencing the supplier selection process. AHP is used to rank the supplier to find the best one from the group of suppliers. After ranking the suppliers, sensitivity analysis has been applied to determine the most critical criteria i.e. how sensitive is the ranking of the alternative to the change in weights of the criterion or the alternatives. A study was done in an automotive component manufacturing industry in the southern part of India. Finally, validation of the model is performed by the sensitivity analysis.     

A Conceptual Map of the Lean Nomenclature: Comparing Expert Classification to the Lean Literature

Abstract

Although the implementation of lean can yield improvements in organizational performance, the literature suggests that most organizations are unable to effectively sustain the results from lean implementation efforts. The lack of clarity related to lean concepts may be a cause of unsuccessful implementation. In this work, we seek to clarify conceptual ambiguity in the lean nomenclature. Using an extensive literature review, we document lean principles, practices, and performance measures. Results from a survey of lean experts were used to investigate the relationship between lean principles and practices. Findings from the literature and from the expert survey were synthesized to develop a visual representation of the lean nomenclature. This conceptual map is intended to aid practitioners by increasing clarity of important lean concepts and thus, the probability of successful implementation.     

Criteria for a lean organisation: development of a lean assessment tool

Lean principles have long been recognised as a competitive advantage. Although there are several measures for various aspects of lean production in the literature, there is no comprehensive measure for overall lean implementation in business firms. An appropriate measurement tool is needed to assess the effectiveness and efficiency of the lean implementation throughout the entire organisation. Based on lean research, a comprehensive tool called the leanness assessment tool (LAT) is developed, using both quantitative (directly measurable and objective) and qualitative (perceptions of individuals) approaches to assess lean implementation. The LAT measures leanness using eight quantitative performance dimensions: time effectiveness, quality, process, cost, human resources, delivery, customer and inventory. The LAT also uses five qualitative performance dimensions: quality, process, customer, human resources and delivery, with 51 evaluation items. The fuzzy method allows managers to identify improvement needs in lean implementation, and the use of radar charts allows an immediate, comprehensive view of strong areas and those needing improvement. Practical uses of the LAT are discussed in the conclusion, along with possible limitations.     

The impact of total quality management on supply chain management and firm's supply performance

This research investigates the relationships among total quality management practices (TQMP), supply chain management practices (SCMP) and firm's supply performance (FSP) in the automotive industry in Thailand. The measurement instruments for SCMP, TQMP and FSP were developed based on an extensive literature review and verified by experts, pilot test and various statistical techniques to ensure reliability and validity in structural equation modeling constructs. The hypothesized model was tested through a path analysis. Qualitative case studies of two large first-tier automotive suppliers were conducted to obtain more in-depth information. We found that the set of SCMP, TQMP and FSP measures are reliable and valid for Thailand's automotive industry. TQMP not only has a significant direct positive impact on SCMP and on FSP but also a significant indirect positive impact on FSP through SCMP.     

Characteristics of a Work Organization from a Lean Perspective

Abstract:

Implementation of lean practices results in significant changes in an organization. Current research in lean production primarily focuses on examining relationships between the implementation of lean production (LP) and the performance of the organization; however, there is a need to assess the implications of large-scale changes such as lean production on work design characteristics and employee outcomes. The purpose of this article is to study the impact of lean production on work design characteristics, such as autonomy, task identity and skill variety, and employee outcomes. This article proposes a conceptual framework that indicates key LP practices and their influences on work characteristics and employee outcomes.

Current research in LP identifies transformations in lean models inspired by sociotechnical principles. This article presents a comprehensive literature review of an evaluation of LP based on sociotechnical design principles. This evaluation contributes toward developing an insight for the proposed framework of the work design characteristics in a lean environment. Finally, a causal loop diagram is used to derive theoretical implications of the conceptual framework proposed.     

Application of interpretive structural modelling for analysis of factors influencing lean remanufacturing practices

The contemporary manufacturing scenario witnesses the adoption of lean remanufacturing concepts in a concerted manner. Lean remanufacturing is a newly evolved manufacturing process concerned with manufacturing and remanufacturing of products to effectively utilise available energy and resources, while reducing wastes in the process and thereby increasing efficiency. The advantages include process streamlining coupled with end-of-life decisions. A structural model needs to be developed to clarify the interrelationships among factors influencing lean remanufacturing practices. In this study, interpretive structural modelling method has been used to develop the structural model depicting interrelationships and most dominant and least dominant factors. Twenty factors are being identified based on expert opinion from 35 Indian automotive component remanufacturing organisations. The identified most dominant factors include a strong top management commitment with proper strategy selection, long-term vision and participation and a strong understanding of the current product and process designs. MICMAC analysis has been conducted to categorise the factors. The inferences based on the study have been derived. The novel aspect of this study is that it presents the development of structural model to identify the most dominant factors influencing the implementation of lean remanufacturing principles.     

Collaborative and lean new product development approach: a case study in the automotive product design

Collaboration between buyer and the supplier has been widely studied in the contemporary research to enhance the efficiency of the product development process. Early involvement of stakeholders in development leads to reduced development time and cost and enhanced quality. The current study presents an approach termed as ‘collaborative and lean’ (C&L) approach to new product development (NPD). It involves application of lean principles in a collaborative environment between an automotive component supplier and the original equipment manufacturer (OEM). The study compares the deployment of two methodologies of development – generic process and the C&L process for developing the same part by a supplier for two different OEMs. Development with one OEM was done using generic process and the other using the C&L process. The study uses value stream mapping of the various phases of the development and attempts to understand the application of the proposed approach in the automotive domain. It highlights the potential of a combined C&L approach in reducing non-value-adding activities, cycle time and effort during NPD. The study attempts to enhance the understanding of NPD in a collaborative environment and explores the possible merits of the proposed approach.     

Application of interpretive structural modelling for analysing the factors influencing integrated lean sustainable system

The modern manufacturing systems recognize the importance of adopting lean and sustainable manufacturing principles. Especially, Indian automotive component manufacturing organizations are interested in adopting the integrated lean sustainable manufacturing system. An appropriate methodology is required for enabling the organizations to identify the dominant factors. In this context, this article presents the interpretive structural modelling approach for identifying the mutual relationship among factors influencing the integrated lean sustainable manufacturing system. From the literature study and survey conducted among Indian automotive component manufacturing organizations, 25 influencing factors have been identified. Based on the study, top-management commitment in adopting integrated lean sustainable manufacturing and environmental knowledge occupy the bottom level of model which shows that it has more driving power. Efforts are being taken to implement the factors in the surveyed organizations.     

Fuzzy logic based leanness assessment and its decision support system

Manufacturing organisations have been witnessing a transition from mass manufacturing to lean manufacturing. Lean manufacturing is focused on the elimination of obvious wastes occurring in the manufacturing process, thereby enabling cost reduction. The quantification of leanness is one of the contemporary research agendas of lean manufacturing. This paper reports a study which is carried out to assess the leanness level of a manufacturing organisation. During this research study, a leanness measurement model has been designed. Then the leanness index has been computed. Since the manual computation is time consuming and error-prone, a computerised decision support system has been developed. This decision support system has been designated as FLBLA-DSS (decision support system for fuzzy logic based leanness assessment). FLBLA-DSS computes the fuzzy leanness index, Euclidean distance and identifies the weaker areas which need improvement. The developed DSS has been test implemented in an Indian modular switches manufacturing organisation.     

Entrepreneurial SCM competence and performance of manufacturing SMEs

This study reviewed the literature and interviewed managers to discover the dimensions of a new construct called the entrepreneurial supply chain management competence of small and medium-sized enterprises. We measured entrepreneurial SCM competence in terms of five first-order constructs: innovation orientation, proactiveness orientation, risk-taking characteristics, relational capital, and coordination capability. We further proposed that this competence affects SMEs’ performance directly and indirectly via the firm's SCM strategies. A set of survey data collected from automotive OEM suppliers in five ASEAN countries was used to test the research model. Results show that the five constructs are important dimensions of entrepreneurial SCM competence, and that they affect performance indirectly. Our findings provide valuable insights about the enablers of an SME's SCM practices and their effects on firm performance.     

Japanese New-Product Development Techniques

Yasuhiro Monden The Japanese automotive industry has already become a by-word for lean production efficiency. Recently attention has shifted to its new-product development activities, and in particular to the techniques of simultaneous engineering that generate superior performance when contrasted with the traditional linear and sequential approaches. The paper probes the cost management system that underpins the Japanese automotive product-development system, enabling a network of producers and suppliers to work cooperatively and in parallel through successive prototyping stages of the process. The core concept is the iterative development of a 'target cost' for each component of the process.     

Experimental investigation of high fiber tow count fabric unsaturation during RTM

High fiber tow count fabrics have been developed by fibers and fabrics suppliers to meet automotive cost and performance requirements when manufacturing structural automotive composite parts at high production rates by RTM. Impregnation of these large fiber clusters may lead to local incomplete saturation of fabrics. Mechanical softening, early failure, or part rejection because of high voids content may be expected. A new experimental method has been proposed to measure the air volume entrapped within the wetted part of the fabric at any given time and to quantify air entrapment kinetics. An important observation is that the whole unsaturation grows linearly with time for 1D flow. The modified capillary number has been correlated to the amount of air entrapped during the injection process. However, results of this study show that it cannot account for void mobilization and elimination. A critical pressure for the onset of void mobilization has been identified for one fluid/preform combination. This experimental work carried out with proper calibration provided the evidence that for high modified capillary number, a decrease in void content is to be expected.     

Leanness assessment using multi-grade fuzzy approach

The manufacturing organisations have been witnessing a transition from mass manufacturing to lean manufacturing. Lean operations are characterised by the elimination of obvious wastes occurring in the manufacturing process, thereby facilitating cost reduction. This paper reports a research carried out to assess the leanness of an organisation using multi-grade fuzzy approach. During this research, a leanness measurement model incorporated with multi-grade fuzzy approach was designed. This is followed by the substitution of the data gathered from a manufacturing organisation. After the computation of leanness index, the areas for leanness improvement have been identified. The approach contributed in this project could be used as a test kit for periodically evaluating an organisation's leanness.