Journal of Operations Management

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The impact of total productive maintenance practices on manufacturing performance
Journal of Operations Management - Tập 19 - Trang 39-58 - 2001
Kathleen E McKone, Roger G Schroeder, Kristy O Cua
AbstractIn this paper we investigate the relationship between Total Productive Maintenance (TPM) and manufacturing performance (MP) through Structural Equation Modeling (SEM). We find that TPM has a positive and significant relationship with low cost (as measured by higher inventory turns), high levels of quality (as measured by higher levels of conformance to specifications), and strong delivery performance (as measured by higher percentage of on‐time deliveries and by faster speeds of delivery). We also find that the relationship between TPM and MP can be explained by both direct and indirect relationships. In particular, there is a significant and positive indirect relationship between TPM and MP through Just‐In‐Time (JIT) practices.
Linking routines to operations capabilities: A new perspective
Journal of Operations Management - Tập 26 Số 6 - Trang 730-748 - 2008
David Xiaosong Peng, Roger G. Schroeder, Rachna Shah
AbstractA typical approach to studying capabilities in the operations management literature is to assess the intended or realized competitive operational performance and their contribution to business and organizational objectives. While it is crucial to identify the operational performance that helps create competitive advantage, it is equally important to understand the means for delivering the needed performance at the operational level. Drawing on the resource‐based view (RBV), we argue that routines are a critical source of operations capabilities and subsequently investigate operations capabilities by means of their underlying routines. Because a common problem to studying capabilities is the ambiguous and confusing definitions, we conduct an extensive literature review to address the semantic confusion among various definitions of capabilities and delineate it from other related terms. We identify improvement and innovation as two critical plant level capabilities, each consisting of a bundle of interrelated yet distinct routines. We then empirically measure the two capabilities as second‐order latent variables and estimate their effects on a set of operational performance measures. The results suggest that routines form internally consistent bundles which are significantly related to operational performance. This supports our notion of “capabilities as routine bundles” that are difficult to imitate and thus a source of competitive advantage.
An exploratory study of performance measurement systems and relationships with performance results
Journal of Operations Management - Tập 22 - Trang 219-232 - 2004
James R Evans
AbstractThe design of an effective performance measurement system, which includes the selection of appropriate measures and approaches for analyzing results, is central to aligning an organization’s operations with its strategic direction. Despite its importance, this is one area that many organizations fail to address effectively. This paper reports exploratory empirical results, obtained from an on‐line survey, on the relative emphasis and types of performance measurements and analysis approaches used by organizations in manufacturing, service, and not‐for‐profit (including education and health care) sectors. The results suggest that organizations with more mature performance measurement systems report better results in terms of customer, financial, and market performance.
The genealogy of lean production
Journal of Operations Management - Tập 25 Số 2 - Trang 420-437 - 2007
Matthias Holweg
AbstractLean production not only successfully challenged the accepted mass production practices in the automotive industry, significantly shifting the trade‐off between productivity and quality, but it also led to a rethinking of a wide range of manufacturing and service operations beyond the high‐volume repetitive manufacturing environment. The book ‘The machine that changed the World’ that introduced the term ‘lean production’ in 1990 has become one of the most widely cited references in operations management over the last decade. Despite the fact that the just‐in‐time (JIT) manufacturing concept had been known for almost a decade prior, the book played a key role in disseminating the concept outside of Japan. While the technical aspects of lean production have been widely discussed, this paper sets out to investigate the evolution of the research at the MIT International Motor Vehicle Program (IMVP) that led to the conception of the term ‘lean production’. Furthermore, the paper investigates why – despite the pre‐existing knowledge of JIT – the program was so influential in promoting the lean production concept. Based on iterating series of interviews with the key authors, contributors and researchers of the time, this paper presents an historical account of the research that led to the formulation and dissemination of one of the most influential manufacturing paradigms of recent times.
International manufacturing networks—to develop global competitive capabilities
Journal of Operations Management - Tập 16 Số 2-3 - Trang 195-214 - 1998
Yongjiang Shi, Mike Gregory
AbstractThis paper seeks to extend existing manufacturing system concepts and develop new structured knowledge about international manufacturing networks by analysing the networks, classifying the configurations and identifying the capabilities. The design and operation of international manufacturing networks is an increasingly important issue for transnational corporations faced with rapid changes in global market opportunity, competition and new managerial mechanisms. Four international manufacturing networks in mechanical and process industries are analysed and a number of conclusions drawn: first, a novel configuration map is proposed; second, key strategic capability parameters are identified; third, networking trends and their implications for configuration are discussed. Finally, the paper explores strengths and weaknesses of the particular methodology adopted in this research.
A typology of project‐level technology transfer processes
Journal of Operations Management - Tập 18 - Trang 719-737 - 2000
Gregory N Stock, Mohan V Tatikonda
AbstractThis paper develops a conceptual typology of inward technology transfer (ITT), which explicitly considers technology transfer at the project, rather than the firm, level of analysis. Building on extant technology management literature and the organizational theories of information processing and interdependence, we carefully characterize the three dimensions of the typology: the technology uncertainty of the technology that is transferred, the organizational interaction between the technology source and recipient, and transfer effectiveness. Appropriate matches of technology uncertainty and organizational interaction result in four archetypal cases called “transfer process types”, which represent the most effective approaches to technology transfer. Real‐life examples of effective and ineffective matches are presented, and implications of the typology for future research and practice are discussed.
Outsourcing impact on manufacturing firms’ value: Evidence from Japan
Journal of Operations Management - Tập 25 - Trang 885-900 - 2007
Bin Jiang, James A. Belohlav, Scott T. Young
AbstractPrevious studies on the effects of outsourcing have relied largely on anecdotal evidence, non‐financial metrics or accounting‐based measures that ignore intangible value. This study views outsourcing effects from its future revenue‐generation potential, using market value. The relation between firms’ market valuation and outsourcing decisions is investigated using a cross‐sectional valuation approach. Results based on Japanese manufacturing industries data from 1994 to 2002 indicate that core business‐related outsourcing, offshore outsourcing, and shorter‐term outsourcing have positive effects on outsourcing firms’ market value. In contrast, non‐core business‐related outsourcing, domestic outsourcing, and longer‐term outsourcing are not found to enhance firm value.
Towards integrated optimal configuration of platform products, manufacturing processes, and supply chains
Journal of Operations Management - Tập 23 Số 3-4 - Trang 267-290 - 2005
Outsourcing customer support: The role of provider customer focus
Journal of Operations Management - Tập 35 - Trang 40-55 - 2015
Stefan Wuyts, Aric Rindfleisch, Alka Citrin
AbstractAn increasing number of firms are outsourcing customer support to external service providers. This creates a triadic setting in which an outsourcing provider serves end customers on behalf of its clients. While outsourcing presents an opportunity to serve customers, service providers differ in their motivation and ability to fulfill customer needs. Prior research suggests that firms with a strong customer focus have an intrinsic motivation to address customer needs. We suggest that in an outsourcing context, this intrinsic motivation does not suffice. Using a Motivation–Opportunity–Ability framework, we posit that the effect of a provider's customer focus will be moderated by a set of relational, firm, and customer characteristics that affect its ability to serve end customers. We test our conceptualization among 171 outsourcing clients from the Netherlands and then validate these results among 135 Indian outsourcing providers. The findings reveal that customer‐focused providers achieve higher levels of customer need fulfillment but this effect is contingent on their ability to serve end customers. In particular, customer‐focused providers more effectively fulfill customer needs when clients and providers share close relational ties, when clients also have a high level of customer focus, and when end customer needs exhibit a low degree of turbulence. In addition, we find that, in turbulent markets, equipment‐related services offer greater opportunity for effective customer need fulfillment than other outsourced services.
Capturing judgments to clarify production strategy and policy
Journal of Operations Management - Tập 5 - Trang 129-149 - 1985
Ronald J. Ebert, Dale E. Rude, Earl A. Cecil
AbstractRecent years have brought a reawakening of the importance of shaping the operations function to support the broader strategy of each organization. Doing so, however, can be a complex, controversial, and highly subjective matter. Determining production's relationships to marketing, engineering, and finance requires executive‐level judgments on the relative emphases among these policy areas. Other judgments about internal capabilities, external factors, and production policies are also involved. Assessing these relationships is a subjective process that is often subtle and usually hidden. For managers, these judgmental areas are sources of disagreement, confusion, and controversy in policy determination.Within this context, the authors applied a judgment‐capturing process, called ProPol (Production Policy), to reveal and clarify managers' judgmental processes. The procedure uses correlational methods to identify where and how managers diverge from a common policy focus. The application settings were two executive development programs—one in manufacturing and the other in the public utility industry. Grouped into teams, the executives competed in week‐long computer simulation games. ProPol was introduced to assist in clarifying their production policies and strategies.In the manufacturing setting, five general policy areas—marketing effort, cost efficiency of production, R&D effort, product pricing, and service flexibility—were identified as salient variables prior to the simulation. We sought to reveal managers' subjective views on the appropriate balance among these variables. The variables were scaled and embedded within questionnaires to present alternative strategy and policy postures within the context of the simulated organizations. From analyzing the resulting judgments, ProPol served the following purposes: (1) to reveal to each manager his own decision structure; (2) to permit intermanager comparisons of decision structures among team members; (3) to provide explicit bases for focused discussions on overall strategy agreement/disagreement within teams; and (4) to serve as the basis for determining a consensus strategy by each team. The managers' judgment processes were compared in terms of judgmental consistency, complexity, and espoused versus in‐useimportances of the policy variables. Consistency, the amount of uniformity in the manager's decision structure, varied widely among team members and across teams. While some executives held firm, consistent views of policy‐outcome relationships, others applied their structure inconsistently or shifted from one relationship structure to another in making their judgments. Judgmental complexity also varied widely within and across teams. The judgmental structures for most managers were simple linear relationships. Several, however, used more complex quadratic and interactive structures in relating the policy areas to overall effectiveness. Even when individuals were identically complex, however, they differed as to which policy variables were significant. Furthermore, although every manager espoused that all five variables were important, they were not all significantly used. The discovery of these discrepancies had a surprise affect: managers became aware of their personal inconsistencies and were stimulated toward understanding why they occurred. The group judgments, in contrast to the individuals, were more consistent and the espoused versus empirically‐derived importances were more in agreement. This occurred from group interactions following individual feedback. The feedback clarified specific areas of policy agreement, provided a productive way for resolving basic policy differences, and facilitated the groups in clarifying their strategic directions.In the utility environment, executives participated in a decision‐making simulation of a consumer‐owned electric utility. As before, five key policy variables for this industry were chosen. Some of the five policy variables are indirectly related to operations (e.g., rate setting and employee relations), while others are more specifically related to operations (e.g., cost efficiency, dependability, and flexibility). Analyses of the judgments revealed characteristics similar to those in the manufacturing environment. Overall, however, utility executives displayed somewhat more complex judgment structures than did manufacturing executives. As a result, there seemed to be more common ground for intrateam policy agreement. For eight of the nine teams, the group consistency exceeded the average of their members' individual consistencies. Otherwise the various teams displayed diverse functional forms for their strategy and policy judgments, and they were relatively consistent in doing so.These results indicate that ProPol can help managers clarify specific directions for the production function. By doing so, a more focused production thrust, one that is clearly and explicitly articulated, will enhance any organization's competitive strategy and provide clear guidance for subsequent decisions.
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