A meta-analysis model of manufacturing capabilities

Recent research in operations strategy has focused on showing the extent to which manufacturing's competence in developing and executing one or more competitive capabilities affects the organization's overall business performance. Several of those efforts have produced models, such as the ‘sand cone’, that suggest an ideal sequence in which manufacturing capabilities should be developed. However, efforts to empirically validate such sequential models, except for one recent study, have been inconclusive. This paper takes a different approach to examining the relationships among competitive capabilities. The existing cross-sectional studies of manufacturing capabilities are integrated to synthesize a proposed model of: (1) the relationships among manufacturing capabilities, and (2) the relationships between those capabilities and business performance. The proposed model is synthesized using data from previous studies, other models and theoretical arguments. Meta-analysis is used to identify aspects of the model that appear better supported by empirical research and those that require further study. The implications of this proposed model with regard to research, practice and future research in operations strategy are discussed.     

Demand chain management in manufacturing and services: web-based integration, drivers and performance

This paper investigated the relationship between Internet-enabled supply chain integration strategies and performance in manufacturing and services. It summarizes the literature on demand and supply integration and describes four web-based strategies. A stratified random sample was collected from UK manufacturers and services, and there was strong evidence that demand chain management (DCM) led to the highest performance in manufacturing, but few signs of DCM in services. Manufacturers and services relying on only web-based demand or supply integration outperformed their low integration counterparts, but lagged DCM in manufacturing. The study also investigated DCM adoption drivers and found that rational efficiency and bandwagon effects drove change. The findings have some important implications for theory as well as for manufacturing and service companies interested in improving their performance.     

A contingent view of e-collaboration and performance in manufacturing

Manufacturers are increasingly utilizing Internet-based tools to more readily conduct collaborative activities with key business customers. While the emerging conventional wisdom suggests that the greater the extent to which manufacturers engage in Internet-enabled commerce with downstream business customers the better the performance, we espouse an alternative view. Consistent with the relational view of competitive advantage and contingency theory, we develop a model and a series of hypotheses that specify how various product and market characteristics may influence the nature of the expected positive relationship between e-collaboration and performance.To test the model, we collected data from 50 manufacturers using a Web-based survey. Our partial least squares (PLS) analysis results do indeed support the notion that e-collaboration is related to better operational and business performance. However, we go on to show that the strength of the relationship between e-collaboration and operational performance diminishes as the level of environmental munificence increases. Notably, we found no such moderating effect with respect to the level of product complexity or market variability. Our findings contribute to the operations strategy literature on supply chain relationships in the e-business arena and offer managers a framework for understanding the conditions under which investments in e-collaboration may be more appropriate and therefore more beneficial.     

Strategic supply management,quality initiatives,and organizational performance

Researchers in supply chain management have found over the past two decades that supply management should be not merely a purchasing function but a strategic tool for supply chain integration. Supply management, the cornerstone of the integration of industrial supply chains, has evolved as a key research area. Based on quantitative and qualitative investigations of 225 electronics manufacturing firms, we examine the organizational impacts of strategic supply management (SSM) and the contexts of company size, process type, ISO 9000 certification, and quality management (QM) implementation that facilitate such an endeavor. We reveal that SSM is essentially a quality management initiative that requires bilateral efforts for continuous improvement and thus is not associated with the basic requirements of ISO 9000. We find that SSM improves on-time shipments, reduces operational costs, and leads to customer satisfaction and improved business performance. Developed based on contemporary premises in supply chain and QM, this research refines our understanding of the relationships among quality initiatives, SSM, and organizational performance.     

Agile manufacturing: Relation to JIT, operational performance and firm performance

A structural model incorporating agile manufacturing as the focal construct is theorized and tested. The model includes the primary components of JIT (JIT-purchasing and JIT-production) as antecedents and operational performance and firm performance as consequences to agile manufacturing. Using data collected from production and operations managers working for large U.S. manufacturers, the model is assessed following a structural equation modeling methodology. The results indicate that JIT-purchasing has a direct positive relationship with agile manufacturing while the positive relationship between JIT-production and agile manufacturing is mediated by JIT-purchasing. The results also indicate that agile manufacturing has a direct positive relationship with the operational performance of the firm, that the operational performance of the firm has a direct positive relationship with the marketing performance of the firm, and that the positive relationship between the operational performance of the firm and the financial performance of the firm is mediated by the marketing performance of the firm.     

Factors affecting supplier quality performance

The interest among practitioners and researchers in quality management and other factors that may affect quality performance reflects the understanding that a firm's output (i.e., performance) can be only as good as the quality of its inputs. However, studies of the quality management-quality performance relationship have led to mixed results regarding the existence of a positive correlation between the two. The results of a survey of 348 aerospace component manufacturers are examined here to provide new insights into factors that affect supplier quality performance. In this study, the inconsistent association between practice and performance is accounted for by considering the process view of quality management. Process management links quality management with process optimization to address both effectiveness and efficiency concerns. Performance is also affected by transaction-specific investments (asset specificity) in the buyer/supplier relationship that lead to poorer component quality and higher transaction costs. Asset specificity and organizational efficiency at implementing Total Quality Management hold great promise for resolving the mixed practice-performance findings in the quality management literature.     

Assessing the impact of JIT using economic theory

This paper combines ideas that are well founded in the production and inventory management literature, with analytical approaches that have been long established in the economic theory literature, to reveal and explore production-function characteristic differences between JIT producers and non-JIT producers among electronic firms in Ontario, Canada. The methodology employed is the estimation of the CES-TL total cost system. Our primary conclusion is that JIT firms are more cost-efficient and appear to be distinct from the non-JIT group. This conclusion is supported by: (1) the fact that, in most cases, the elasticities calculated from the two groups of firms are significantly different; (2) the fact that the cost elasticity with respect to output is lower for the JIT firms than for the non-JIT firms, indicating that the former are better able to capture economies of scale and density; (3) the difference between the elasticities of factor productivity, with respect to output changes, shows the JIT firms as being more labor- and materials-saving than the non-JIT firms.     

Management initiatives and just-in-time manufacturing

Numerous benefits have been claimed for firms that implement just-in-time (JIT) approaches to manufacturing. While a fair number of Western firms have been successful at such implementations, other firms that could benefit appear to be addressing only a few features rather than the overall philosophy and system. This paper considers whether each of a number of management initiatives is necessary for the implementation of just-in-time manufacturing. A case-based research methodology was used for theory testing at six plants, each which claimed to be implementing just-in-time manufacturing. Data were obtained via interviews, questionnaires, direct observation, and collection of documents. Of six management initiatives considered, four were supported as necessary conditions for both JIT flow and JIT quality, as well as for employee involvement. These four are: (1) promotion of employee responsibility, (2) provision of training, (3) promotion of teamwork, and (4) demonstration of visible commitment. The other two management initiatives were rejected as necessary conditions. These are: (1) provision of workforce security, and (2) use of group performance measures. The results also indicated that employee involvement plays a central role in JIT implementation.     

ISO 9000 practices and financial performance: A technology coherence perspective

Attention to processes has increased, as thousands of organizations have adopted process-focused programs such as TQM and ISO 9000. Proponents of such programs stress the promise of improved efficiency and profitability. But research has not consistently borne out these prospects. Moreover, the expectation of universal benefits is not consistent with research highlighting the important role of firm-specific capabilities in sustaining competitive advantage. In this paper, we use longitudinal panel data on ISO 9000 practices for firms in the auto supplier industry to study two new issues related to the adoption of process management practices. First, we find that, as the majority of firms within an industry adopt ISO 9000, late adopters no longer gain financial benefits from these practices. Second, we explore how firms’ technological coherence moderates the performance advantages of ISO 9000 practices. We find that firms that have a very narrow or very broad technological focus have fewer opportunities for complementary interactions that arise from process management practices and thus benefit less than those with limited breadth in technologically related activities.     

Project management infrastructure: The key to operational performance improvement

Process improvement programs such as Six Sigma, Lean, and Lean Sigma are very important and deserve serious academic research attention. However, definition problems make it difficult to study any specific type of process improvement program. Therefore, this study defines two organizational level program management factors, Strategic Project Selection (SPS) and Project Management Infrastructure (PMI), that are independent of any specific process improvement program. Drawing upon current literature, this study develops and tests theoretical models that relate SPS and PMI to operational performance improvement and to each other. Using empirical data collected from 53 supplier plants of one large high-tech firm, this study finds that at the plant level, SPS mediates the relationship between PMI and operational performance improvement. This insight contributes to both theory development and practice, suggesting that a viable strategy for a process improvement program’s success is to focus on PMI in order to enhance SPS and ultimately improve performance. Not to be reproduced or quoted without written permission from the authors.     

ISO 9000/1994, ISO 9001/2000 and TQM: The performance debate revisited

The debate about the impact of ISO 9000/1994 on performance has been waging since its inception. While there is a general agreement regarding the positive impact of TQM on performance, there has been less agreement among the academics about the impact of ISO 9000/1994. Perhaps in response to such debate, the new ISO 9001/2000 has appeared purporting to be more in line with the TQM philosophy. As of now, how this 2000 version actually affects performance is yet to be explored. In this study, we compare the implementation of ISO 9000/1994 and ISO 9001/2000 as representing two different efforts to implement quality management practices. We evaluate its impact on company performance with a sample of 713 Spanish industrial companies. We also examine if the 2000 version of ISO is taking us closer to the implementation of TQM. Further, we depart from the past studies methodologically by considering performance as a formative construct rather than a reflective construct. Based on the mean and covariance structural (MACS) analyses, we conclude that ISO 9001/2000 certified companies do not perform noticeably better than ISO 9000/1994 or non-certified companies. However, we find that ISO 9001/2000 certified companies apply TQM at a higher level than ISO 9000/1994 certified companies, but whether they actually perform better is less clear.     

Quality management practices and their relationship to buyer’s supplier ratings: a study in the Korean automotive industry

This research explores if quality management practices are different among suppliers whose performance is rated high, medium, or low by a common buying company and identifies which specific practices contribute to the differences. The entire population of first-tier suppliers to a Korean auto assembler was surveyed to measure use of quality management practices. Useable returns were received from 25% of the suppliers surveyed. To measure conformance quality and overall rating, suppliers were categorized into high, medium, and low performing groups based on the buying company’s data. Multivariate analysis of variance was done using general linear model (GLM-MANOVA) to explore differences in the high-, medium-, and low-performing supplier groups based on their use of quality management practices. No statistically significant differences were found when suppliers were categorized based on conformance quality. However, when categorized based on overall rating, the highest rated suppliers were found to emphasize process management and employee satisfaction to a greater degree than the lowest rated suppliers.     

An empirical investigation of scheduling performance criteria

Planning and scheduling significantly influence organizational performance, but literature that pays attention to how organizations could or should organize and assess their planning processes is limited. We extend planning and scheduling theory with a categorization of scheduling performance criteria, based on a three-stage survey research design. Particularly, the results show that, next to schedule quality, the planning process factors timeliness, flexibility, communication, and negotiation are important performance criteria, and especially so in organizations that are faced with high levels of uncertainty. The results suggest that organizational and behavioral aspects of planning and scheduling cannot be mitigated with advanced models and software that solely focus on good schedules. Rather, high quality schedules and high quality scheduling processes need to be facilitated simultaneously to attain high planning and scheduling performance.     

Strategic operations management decisions and professional performance in U.S. HMOs

Professional service organizations are becoming an increasingly important segment of the service sector in the U.S. but little attention has been paid to the management of these organizations, particularly in relation to technical performance. This paper reports the findings of a survey of managers of Health Maintenance Organizations (HMOs) which related operations management decisions about organization, workforce management, quality management and planning and control, to clinical process and outcome performance.This research demonstrates that managerial decisions do affect clinical performance in HMOs. These findings have implications for both researchers and practitioners. For researchers, the study provides a framework for future research on the important link between management decisions and technical performance in professional service organizations. For practitioners, this study suggests that technical performance will be enhanced when professional work is appropriately managed.     

An empirical assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the MBNQA Model

Total quality management (TQM) is an approach to management embracing both social and technical dimensions aimed at achieving excellent results, which needs to be put into practice through a specific framework. Nowadays, quality award models, such as the Malcolm Baldrige National Quality Award (MBNQA) and the European Foundation for Quality Management (EFQM) Excellence Model, are used as a guide to TQM implementation by a large number of organizations. Nevertheless, there is a paucity of empirical research confirming whether these models clearly reflect the main premises of TQM. The purpose of this paper is to analyze the extent to which the EFQM Excellence Model captures the main assumptions involved in the TQM concept, that is, the distinction between technical and social TQM issues, the holistic interpretation of TQM in the firm, and the causal linkage between TQM procedures and organizational performance.     

全面质量管理和ISO9000标准的局限性

简要分析了全面质量管理和ISO9000标准在适应技术创新、管理创新、制度创新和企业信息化要求，以及完全保证质量等方面的局限性。指出“中心的错位”、“质量不是全部”是问题的关键。提出了全面管理（TM）和全面管理系统（TMS）的概念。     

Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation

Just-in-time (JIT) manufacturing is among the most commonly researched topics in the area of operations management. This study examines the relationship between JIT manufacturing practices and performance outcomes by means of meta-analysis of correlations approach. Based on an in-depth analysis of literature spanning from 1992 to 2008, the results of this meta-analytic investigation support a positive relationship between JIT manufacturing practices and aggregate performance. However, the findings suggest that not all individual JIT practices are associated with all types of performance outcomes. This study highlights the JIT practices that have the greatest impact on individual performance outcomes and emphasizes the role of moderating factors in the relationship between JIT practices and performance. Theoretical and managerial implications are discussed and directions for future theory building in JIT are presented.     

The link between supply chain fit and financial performance of the firm

The bottom-line financial impact of supply chain management has been of continuing interest. Building on the operations strategy literature, Fisher's (1997) conceptual framework, a survey of 259 U.S. and European manufacturing firms, and secondary financial data, we investigate the relationship between supply chain fit (i.e., strategic consistencies between the products’ supply and demand uncertainty and the underlying supply chain design) and the financial performance of the firm. The findings indicate that the higher the supply chain fit, the higher the Return on Assets (ROA) of the firm, and that firms with a negative misfit show a lower performance than firms with a positive misfit.     

Impact of relational norms, supplier development and trust on supplier performance

Supplier relationship management and supplier development initiatives assume a fundamental role in enterprise supply chain management. An important aspect of effective supplier relationship management is the role of trust. This paper seeks to understand whether supplier relationship management or supplier development initiative should be emphasized as a firm strives to achieve superior supplier performance. The analysis and discussion draws upon sourcing strategy literature and is based on empirical survey-data of mid to upper level managers with responsibility for supply management initiatives in their respective organizations in Denmark and in the USA. It examines the interrelationships among “relational norms”, “trust”, “supplier development initiatives” and ensuing “supplier performance”. The data analysis shows that firms must emphasize relation and trust building activities before investing in supplier development initiative. Supplier perception audits must be routinely performed to gauge the level of trust and strength of relational norms.