Evolution of competitive priorities towards performance improvement: a meta-analysis

Competitive priorities are critical operational dimensions that a business process must possess to satisfy its internal and external customers. The process of defining competitive priorities is evolving and changing over time according to a new business paradigm. Therefore, it is the right time to revisit the critical dimensions of competitive priority. The purpose of this study is threefold: (1) to identify and revise the critical dimensions of competitive priority; (2) to assess the quality of competitive priority measures across studies based on different criteria; (3) to confirm the relationship between several competitive priorities and organisational performance. The results show the different effects that competitive priorities have on organisational performance. Cost and quality priorities show evidence of strong effect size compared to the others.     

Using business critical design rules to frame new architecture introduction in multi-architecture portfolios

When introducing new architectures to an industrial portfolio, counting multiple existing product and manufacturing solutions, time-to-market and investments in manufacturing equipment can be significantly reduced if new concepts are aligned with the existing portfolio. This can be done through component sharing, or sharing critical design principles. This alignment is not trivial, as extensive design knowledge is needed to overview a portfolio with many, often highly different products and manufacturing lines. In this paper, we suggest establishing a frame of reference for new-product introduction based on several ‘game rules’, or Business Critical Design Rules (BCDRs), which denote the most critical features of the product and manufacturing architectures, and should be considered an obligatory reference for design when introducing new architectures. BCDRs are derived from the portfolio, architecture and module levels, including modelling of the most critical links between the product and manufacturing domains. The suggested modelling principle has been tested as a frame for new-architecture introduction, capturing critical modularisation principles in a large and global OEM. Application of the suggested method revealed a potential for reducing time-to-market and potentially cutting 35% off investments in new manufacturing equipment when introducing new products in the portfolio.     

Trade-offs are not exogenous

Trade-offs between competitive priorities are often seen as exogenous – managers accept them as a given downside while simultaneously addressing multiple competitive priorities. However, some companies seem to face fewer trade-offs than others. The question is how companies reduce their trade-offs to successfully compete on multiple competitive priorities simultaneously. We address this question by theorising that bundles of action programmes are needed to reduce trade-offs between competitive priorities. We examine four Swiss manufacturing plants and show how the selection of action programmes influences the simultaneous competition on multiple competitive priorities. We show that successful competition on multiple competitive priorities does not happen by accident but is achieved by aligning competitive priorities, action programmes, infrastructural/structural changes and contextual factors.     

The role of marketing in creating customer value

A study carried out by Cranfield School of Management on behalf of The Chartered Institute of Marketing in the UK has led the author to formulate twelve guidelines for developing effective marketing strategies. These guidelines are discussed and are: understanding the sources of competitive advantage; understanding differentiation; understanding the environment; understanding competitors; understanding strengths and weaknesses; understanding market segmentation; understanding the dynamics of product/market evolution; understanding a portfolio of products and markets; setting clear strategic priorities and sticking to them; understanding customer orientation; being professional; and giving leadership     

Optimising resource portfolio planning for capital-intensive industries under process-technology progress

This paper addresses the problem of resource portfolio planning of firms in high-tech, capital-intensive manufacturing industries. In light of the strategic importance of resource portfolio planning in these industries, we offer an alternative approach to modelling capacity planning and allocation problems that improves the deficiencies of prior models in dealing with three salient features of these industries, i.e. fast technological obsolescence, volatile market demand, and high capital expenditure. This paper first discusses the characteristics of resource portfolio planning problems including capacity adjustment and allocation. Next, we propose a new mathematical programming formulation that simultaneously optimises capacity planning and task assignment. For solution efficiency, a constraint-satisfied genetic algorithm (CSGA) is developed to solve the proposed mathematical programming problem on a real-time basis. The proposed modelling scheme is employed in the context of a semiconductor testing facility. Experimental results show that our approach can solve the resource portfolio planning problem more efficiently than a conventional optimisation solver. The overall contribution is an analytical tool that can be employed by decision makers responding to the dynamic technological progress and new product introduction at the strategic resource planning level.     

基于种群生态学的竞争项目组合风险决策模型

在回顾了项目组合管理研究之后,将种群生态学理论引入项目组合风险管理.讨论了项目组合的已有研究,重新给出了项目组合的定义,并将其分为三种类型,揭示了项目组合与生物种群间的相似属性.构建了竞争型项目组合风险管理(CPPRM)决策模型,讨论了n=2时模型的解,分析了其稳定性条件及风险应对策略,并以n=3时的讨论论证了CPPRM决策模型的实际可操作性.     

A four-phase AHP–QFD approach for supplier assessment: a sustainability perspective

Recently, companies have become increasingly aware of the need to evaluate suppliers from a sustainability perspective. Introducing the triple bottom line (economic, social, and environmental performance) into supplier assessment and selection decisions embeds a new set of trade-offs, complicating the decision-making process. Although many tools have been developed to help purchasing managers make more effective decisions, decision support tools, and methodologies which integrate sustainability (triple bottom line) into supplier assessment and selection are still sparse in the literature. Moreover, most approaches have not taken into consideration the impact of business objectives and requirements of company stakeholders on the supplier evaluation criteria. To help advance this area of research and further integrate sustainability into the supplier selection modelling area, we develop an integrated analytical approach, combining Analytical Hierarchy Process (AHP) with Quality Function Deployment (QFD), to enable the ‘voice’ of company stakeholders in the process. Drawing on the sustainable purchasing strategy development process, our AHP–QFD approach comprises four hierarchical phases: linking customer requirements with the company's sustainability strategy, determining the sustainable purchasing competitive priority, developing sustainable supplier assessment criteria, and lastly assessing the suppliers. An illustrative example is provided to demonstrate the application of the proposed approach.     

Digital transformation of incumbent firms from the perspective of portfolios of innovation

Digital technology has created new elements of innovation types and given incumbent firms new portfolios of innovation. The portfolio of innovation used during a digital transformation allows it to be successfully implemented and gives a competitive advantage to incumbent firms. We present two propositions for the portfolio of innovation and its shift during the process of digital transformation. Based on an emergent innovation matrix, we conducted a multi-case study on three Chinese firms from different industries, in order to identify the novel innovation types that appear when these firms undergo digital transformation. The research suggests that incumbent firms innovate in various ways simultaneously to implement a digital transformation when faced with market and technology change, and the portfolio of innovation shifts during the digital transformation process.     

The Patent Asset Index – A new approach to benchmark patent portfolios

Patent metrics are increasingly used to assess the competitive position of technology-oriented firms. Patent rankings and patent scoreboards are popular methods to benchmark patent portfolios of firms against each other. Existing rankings, however, have methodological limitations that significantly reduce the meaningfulness of these benchmarks for managers, investors and other stakeholders. In this paper, we develop a new benchmarking methodology that overcomes limitations of existing approaches and offers a more accurate assessment of a firm’s patent portfolio vis-à-vis its competitors. Firms are ranked according to the Patent Asset Index, which is derived from a set of newly developed patent indicators. These indicators are empirically validated and reflect more accurately the value of patents. We apply the new benchmarking method in the global chemical industry and contrast our findings with those of other existing patent portfolio rankings.     

基于集成化供应链的采购管理研究

从集成化供应链对采购管理的要求出发,论述了采购管理的目标应是着重于发展合作关系,建立有竞争力的供应链体系。为此,建立了以充分的信息交流为基础,以与供应商建立相互信任、利益共享、风险共担的合作伙伴关系和基于长期合作契约的过程控制为手段,以现代物流技术为支持,面向客户订单的采购管理模型,以实现供应链的集成。     

A study of material flow systems (input/output) in high-bay warehouses

A method of planning and designing product sorting systems in warehousing is described. The theoretical background of the analytical models and simulation modelling is given. A calculation of the capacity of elements for joining and dividing for different priorities of material flow is described. New parameters are introduced in the formula for calculating the average number of unit loads in a system for joining, in the direction of the slave flow and for a simple analytical model for joining material flows with two different priorities with an exponential distribution of inter-arrival time. Simulation results are obtained using the GPSS/FON simulation language. Some characteristic results, used in the process of planning and design of two new distribution centres in Belgrade, are shown.     

Maintenance supplier selection considering life cycle costs and risks: a fuzzy goal programming approach

In this study, we address a new variant of supplier selection problem named maintenance supplier selection problem faced by a manufacturer. The production system consists of different multi-component equipments whose maintenance activities require several components (parts) each of which could be provided by multiple suppliers. A multi-objective mathematical model is developed to decide about the supply base of each part as well as the purchasing quantity of each part from each selected supplier. The model accounts for the total life cycle costs of purchased parts and various risks threatening the candidate suppliers. A fuzzy/soft lexicographic goal programming approach with soft priorities between objectives is proposed to enable the decision-maker to make preferred trade-offs between objectives by which the effects of various risks in each phase of life cycle of procured parts are investigated. The capability and effectiveness of the proposed model is validated through a case study. Some sensitivity analyses are also carried out for investigating the impact of cost, risk and objectives’ priorities on the final preferred compromise solution. Finally, some managerial insights and concluding remarks are provided.     

Using FANP approach on selection of competitive priorities based on cleaner production implementation: a case study in PCB manufacturer,Taiwan

The aim of this paper is to identify and discuss some of the important and critical decision criteria including cleaner production implementation of an efficient system to prioritize competitive priorities. Fuzzy analytic network process (FANP) based methodology is discussed to tackle the different decision criteria involved in the selection of competitive priorities in current business scenario. FANP is an efficient tool to handle the fuzziness of the data involved in deciding the preferences of different decision variables. The linguistic level of comparisons produced by the professionals and experts for each comparison are tapped in the form of triangular fuzzy numbers to construct fuzzy pairwise comparison matrices. The implementation of the system is demonstrated by a problem having four stages of hierarchy which contains different criteria, attributes and alternatives at wider perspective. The proposed model can provide a hierarchical framework for the cleaner production implemented organization to select on its competitive priorities.     

A contingency perspective of just-in-time purchasing: globalization,implementation, and performance

This paper uses a survey-based methodology to examine the performance impact of Just-In-Time (JIT) purchasing strategies. Over the past decade much has been written concerning JIT philosophies; however, relatively little empirical research has been conducted that evaluates the impact of JTT on performance. Similarly, little work has been performed to evaluate the role of JIT in global competitive strategies. This paper uses contingency theory's environment-strategy-performance relationship to consider vital issues—planning, organizational support, and implementation status—affecting the success of JIT purchasing strategies. The findings suggest that JIT purchasing strategies represent an appropriate response to global competition and that JIT purchasing can have a significant positive impact on performance improvement when adequate planning and support are in place.     

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.     

一个新的基于数量折扣的JIT采购模型

把传统采购中的数量折扣同JIT采购结合起来，建立了一个基于数量折扣的综合模型，充分发挥了两种采购方法的优势。分别研究了全单位数量折扣和累进制数量折扣两种情况下的JIT采购，给出了模型的算法和算例。算例显示，采购成本的节省明显。     

Towards theory building in manufacturing flexibility

This study consolidates and extends previous research to propose a theoretical framework of manufacturing flexibility. The framework proposes antecedent roles for manufacturing flexibilities in supporting a range of agility-related manufacturing priorities; suggests how such manufacturing flexibilities can be developed; and relates the effects of alignment between flexibility-facilitated manufacturing outcomes and business strategy on firm performance. A questionnaire was administered to 1700 senior level managers in manufacturing firms, with 322 valid surveys returned for data analysis. The results support the framework, and suggest that different manufacturing priorities can be facilitated through the development of specific manufacturing flexibilities. The results also indicate that these manufacturing flexibilities can be acquired through the development of purchasing competence in a firm. The data provide partial support for a relationship between congruity in manufacturing and business goals, and firm performance.     

Optimization of real asset portfolio using a coherent risk measure: application to oil and energy industries

We consider the problem of optimally determining an investment portfolio for an energy company owning a network of gas pipelines, and in charge of purchasing, selling and distributing gas. We propose a two stage stochastic investment model which hedges risk by means of Conditional Value at Risk constraints. The model, solved by a decomposition method, is assessed on a real-life case, of a Brazilian integrated company that operates on the oil, gas, and energy sectors.     

Lean,Six Sigma and Lean Six Sigma: an analysis based on operations strategy

There is a growing need for operations management models that contribute to the continuous improvement of company processes, among them we highlight lean manufacturing, Six Sigma and, more recently, Lean Six Sigma (LSS). This article aims (1) to identify and analyse the differences and complementarities in the production decision areas for each one of the three models; (2) to identify the competitive priorities that lead to the best performance as a result of policies followed in the decision areas as a result of the adopted model. First, a theoretical conceptual model was developed based on a review of the literature, followed by a exploratory research questions applied to manufacturing companies that use the lean, Six Sigma or LSS manufacturing models in southern Brazil. The main results show that there are differences in the models in relation to the importance of the decision areas and the performance achieved in the competitive priorities. Individually, lean manufacturing, Six Sigma and LSS have varying degrees of importance in the Facilities, Vertical Integration and Production Planning and Control decision areas. The performance dimensions with the best performance are speed, quality, reliability and cost.