THE IMPACT OF WORLD-CLASS MANUFACTURING PRACTICES ON SMALL MANUFACTURERS - by
David K. Johnson
Table I - Literature Review
| Author |
Title |
Description |
| Anderson J.C., et al. |
A Path Analytic Model of a Theory of Quality XE "Quality"
Management Underlying the Deming Management Method: Preliminary Empirical
Findings |
Provides empirical research in support of Deming's 14 Points.
Data from the World-Class Manufacturing project conducted at the University
of Minnesota and Iowa State University (Flynn, Flynn, and Schroeder study
on large manufacturers) was used to support a model based on the following
seven constructs 1) Visionary Leadership, 2) Internal and External Cooperation,
3) Learning, 4) Process Management, 5) Continuous Improvement XE "Continuous
Improvement" , 6) Employee Fulfillment, and 7) Customer Satisfaction. These
seven constructs are intended to represent Deming's 14 Points. The results
seem to identify potential positive relationships between various constructs
supporting anecdotal literature on Deming's 14 Points.[i] |
| Boyer K. |
An Assessment of Managerial Commitment to Lean Production |
A study of managerial commitment to lean manufacturing
and total quality management. The study's goal is to examine the relationship
between a company's commitment JIT and TQM. The following constructs were
used to measure a company's commitment to JIT and TQM: Quality XE "Quality"
leadership, Group problem solving, Training, and Worker empowerment. The
202 companies participating in the study employed more than 50 people, and
were classified under standard industrial classification codes 33-37 (Metal
working industries). The results of the study showed that companies
in the metal working industries tend to support JIT and TQM programs by
investing in infrastructure.[ii] |
| Davy J.A., et.al. |
A Derivation of the Underlying Constructs of Just-In-Time
XE "Just-In-Time Production (JIT)" Management Systems |
The first validated study in which the underlying constructs
of JIT are developed (operating structure and control, product scheduling,
and quality implementation). This study surveyed members of the American
Society of Quality XE "Quality" Control (182 responses), The American
Production and Inventory Control Society (191 responses), and the National
Association of Purchasing Management (73 responses). Links between quality
and JIT are suggested implying synergistic relations.[iii] |
| Fawcett S.E., el al. |
Strategic Intent, Measurement Capability, and Operational
Success: Making the Connection |
An empirical study that investigates how well companies
are aligning strategic priorities, measurement activities, and operational
performance. 131 managers at US manufacturing firms participated in the
study. Weak correlations between strategic priorities and performance suggest
that many firms struggle to translate strategic priorities into tangible
results. Lack of appropriate measurements is blamed for the breakdown between
strategic priorities and operational results. Many programs such as JIT
or TQM are often implemented in a "flavor of the month" manner in
which appropriate measurement lacks to ensure that results meet original
intentions.[iv] |
| Fawcett S.E., Myers M.B. |
Product and Employee Development in Advanced Manufacturing:
Implementation and Impact |
An examination of the interrelationships and impact
on company performance of the following manufacturing strategies: 1) integrated
product development, 2) employee development, 3) just-in-time manufacturing,
and 4) manufacturing automation. 158 middle to upper level manufacturing
managers who were randomly selected from the American Production and Inventory
Control Society database participated in the study. Structural equation
modeling was used to analyze the data collected revealing positive relationships
between each of the four constructs and firm performance.[v] |
| Fawcett S.E., Pearson J.N. |
Requirements and Benefits of Implementing Just-In-Time
XE "Just-In-Time Production (JIT)" Manufacturing for Small-Firm Manufacturers |
A study in which small manufacturers (100-500 employees)
of electronics were surveyed in order to measure the applicability of elements
of just-in-time manufacturing in a small-firm environment. This study finds
that while not all JIT practices are equally applicable to small manufacturers,
the foundations of JIT are applicable to a variety of settings, allowing
small manufacturers to enjoy many of the benefits of JIT.[vi] |
| Flynn B.B, et al. |
The Impact of Quality XE "Quality" Management Practices
on Performance and Competitive Advantage |
Based on the world-class manufacturing project conducted
at the University of Minnesota and Iowa State University (focused on large
companies in machinery, electronics, and transportation components industries).
Data collected from the project allowed the researchers to develop a model
to test the relation of specific quality management practices to quality
performance. Path analysis and multiple regression analysis were used to
quantify linkages between various constructs. Components to the model include:
Customer relationship, Top management support, Supplier relationship, Work
force management, Work attitudes, Product design process, Process flow management,
Statistical control and feedback, Perceived quality market outcomes, Percent
passed final inspection with no rework, and competitive advantage.[vii] |
| Flynn B.B, Flynn J.E. |
Achieving Simultaneous Cost and Differentiation Competitive
Advantages Through Continuous Improvement: XE "Continuous Improvement"
World-class Manufacturing As A competitive Strategy |
A study that challenges Michael Porter's assertion that
companies should on the basis of cost or differentiation, but not both.
By practicing world-class manufacturing as a competitive strategy companies
are able to achieve sustainable competitive advantages in both cost as well
as differentiation through continuous improvement in manufacturing capabilities.
Flynn's hypothesis that companies can achieve simultaneous cost and differentiation
competitive advantages is supported in the publication by both descriptive
literature as well as by empirical research resulting from the world-class
manufacturing study conducted at the University of Minnesota and Iowa State
University.[viii] |
| Flynn B.B., et al. |
A Framework for Quality XE "Quality" Management Research
and an Associated Measurement Instrument |
This publication uses data collected from the world-class
manufacturing study conducted at the University of Minnesota and Iowa State
University to develop and test a model relating to quality management. Flynn,
Schroeder and Sakakibara make the assertion that this publication fills
the need for a reliable and valid instrument for measuring quality management
practices. This assertion is supported by extensive statistical analysis
to assure both reliability and validity. The seven dimensions of quality
outlined in the model include: 1) Top management Support, 2) Quality XE
"Quality" Information, 3) Process Management, 4) Product Design, 5)
Workforce Management, 6) Supplier Involvement, and 7) Customer Involvement.[ix] |
| Flynn B.B., et al. |
World-class Manufacturing: An Investigation of Hayes and
Wheelwright's Foundation |
Flynn et al. use data collected from the world-class
manufacturing project to evaluate the impact of world-class manufacturing
practices, as defined by Hayes and Wheelwright, on firm performance. In
this paper Flynn et al. find that the original practices advocated by Hayes
and Wheelwright are linked to competitive performance and that new manufacturing
practices that have since been included under the category of world-class
manufacturing result in further improvements in performance. Flynn et al.
also found strong support for the notion that synergistic relationships
exist between various world-class manufacturing practices. The independent
variables researched in the publication included: 1) Employee development,
2) Management technical competence, 3) Design for customer needs, 4) Worker
participation, 5) Proprietary equipment, 6) Continuous improvement, 7) Process
control, 8)Feedback of information, 9) Pull XE "Pull Production" system,
and 10) JIT supplier practices. These variables were correlated with the
following dependent variables: 1) Cost, 2) Quality- XE "Quality" performance,
3) Quality-features, 4) Dependability- specifications, 5) Dependability-on-time
delivery, 6) Dependability-service, 7) Flexibility- XE "Flexibility" product,
and 8) Flexibility-volume.[x] |
| Flynn B.B., et al. |
Relationship Between JIT and TQM: Practices and Performance |
An empirical study examining the relationship between Just-In-Time
XE "Just-In-Time Production (JIT)" and Total Quality XE "Quality"
Management XE "Total Quality Management" . The goal of this study was to
test the hypothesis that JIT and TQM practices are mutually supportive.
Hierarchical regression analysis was used to reveal positive relationships
between JIT and TQM management practices and plant performance. Flynn et
al. were able to show that while JIT and TQM can function effectively as
separate programs, using both programs results in synergies that lead to
further performance improvement. These findings support descriptive literature
on the subjects of JIT and TQM. Data for the study was taken from the world-class
manufacturing project conducted at the University of Minnesota and Iowa
State University (Companies with more than 100 employees in the machinery,
electronics, and transportation components industries).[xi] |
| Flynn B.B., et al. |
The Impact of Just-in-Time Manufacturing and Its Infrastructure
on Manufacturing Performance |
Another study in which data from the world-class manufacturing
project is used. The model developed by Flynn et al. to study the impact
of JIT and its infrastructure on performance separates JIT into the categories
of JIT Infrastructure (Quality XE "Quality" Management, Work force
management, Manufacturing strategy, Organizational characteristics, and
Product design) and JIT Practices (Set-up time reduction, Schedule flexibility,
Maintenance XE "Total Productive Maintenance" , Equipment layout, Kanban
XE "Kanban" , and JIT supplier relationship). Results from the study revealed
the following: "1) there was not a significant relationship between the
use of JIT practices, alone and Manufacturing performance, 2) there was
a very strong relationship between JIT practices and infrastructure practices,
3) the combination of JIT management and infrastructure practice was related
to manufacturing performance, 4) infrastructure, by itself, is sufficient
to explain manufacturing performance, and 5) manufacturing performance was
related to competitive advantage.[xii] |
| Grasson, T. J. |
Being customer focused takes pull. (Demand-based flow manufacturing) |
This article advocates what it calls demand-based flow
manufacturing, which is a pull production system implemented throughout
the supply-chain. The article describes and many benefits that result
from demand-based flow manufacturing including: decreases in cycle time,
reduction in inventory levels, lower costs, higher customer service levels,
higher quality, and ultimately higher profits. These results are further
demonstrated through data collected from supply-chains, which have made
the transformation to pull production. Although there are many advantages
to demand-based pull production, implementation requires more than installation
of software. Information quality and manufacturing capabilities must first
be improved in order to support demand-based pull production.[xiii] |
| Inman R.A., Mehra S. |
The transferability of Just-in-Time Concepts to American
Small Businesses |
52 small manufacturers (less than 500 employees) and 62
large manufacturers (greater than 500 employees) participated in a survey
measuring the implementation of JIT practices and resulting benefits. Contrary
to popular belief the survey results showed that JIT is as applicable to
small manufacturers as it is to large manufacturers. "Small manufacturing
firms actually managed greater percentage lot-size reductions from suppliers,
greater reductions in inventory, and increased inventory turns."[xiv] |
| Kinni, T.B. |
'America's Best:' what does it take to be acknowledged
as one of America's best plants? |
Since 1990 Industry week has recognized manufactures for
exhibiting world-class manufacturing practices based on three core competencies
(customers responsiveness, quality, and agility); and six supporting competencies
(employee involvement, supply management, technology, product development,
environmental responsibility, and safety). In the book the author outlines
lessons learned from the first 62 manufacturers to be recognized as America's
best by Industry Week.[xv] |
| MacDuffie J.P., Helper S. |
Creating Lean Suppliers XE "Supply Chain" |
A description of Honda's supplier relationship philosophy.
This paper contains case studies focusing three different Honda suppliers
and their participation in Honda's BP program (Best Practice, Best Process,
and Best Performance).[xvi] |
| National Research Council |
Surviving Supply-chain XE "Supply Chain" Integration:
XE "Supply Chain Integration" Strategies for Small Manufacturers |
A study, conducted by the National Research Council, focused
on the roles and challenges faced by small and medium sized manufacturers
during supply-chain integration. The following were the four goals of the
study: "1) Identify and analyze state-of-the-art supply-chain integration
concepts, 2) Define the requirements for successful participation by Small
manufacturers in integrated supply-chains, 3) Identify the gaps between
integrated supply-chain requirements and the capabilities of small manufacturers,
4) Suggest strategies to assist small manufacturers in developing the capabilities
required for successful participation". The study makes the following four
recommendations to small manufacturers: "1) Engage in meaningful strategic
planning, not just budgeting, 2) increase their financial, managerial, and
technological strengths, 3) ad value to their products and integrate more
closely with their customers, and 4) integrate their own supply-chains to
reduce costs and improve performance".[xvii] |
| Ra'ed Saleh Al-zu'bi |
Identification and Implementation of Quality XE "Quality"
Concepts and Techniques for Small Scale Manufacturing Operations |
A master's thesis on the subject of quality concepts
and techniques as they apply to small manufacturers. Descriptive literature
is used to develop a quality model applicable to small manufacturers. Survey
analysis and case studies in which the quality model was put into practice
are used to evaluate the model's applicability to a small manufacturing
setting. The resulting model consists of five quality stages (Preliminary
Stage (Leadership), Stage 1 (Understanding), Stage 2 (Productivity), Stage
3 (Quality) XE "Quality" , and Stage 4 (Innovation)).[xviii] |
| Saraph J.V., et al. |
An Instrument for Measuring the Critical Factors of Quality
XE "Quality" Management |
This paper summarizes descriptive quality literature into
eight critical quality management factors: 1) The role of top management
leadership, 2) The role of the quality department, 3) Training, 4) Product
/ service design, 5) Supplier quality management, 6) Process management,
7) Quality XE "Quality" data and reporting, and 8) Employee relations.
An instrument for measuring each of these eight factors was developed and
tested for reliability and validity by surveying 163 managers from 20 different
companies. The results of the study yielded a survey instrument capable
of measuring quality management factors on each of the eight dimensions.[xix] |
| Taninecz, G., et al. |
Best practices & performances: manufacturers tackling leading-edge
initiatives generally reap the best results |
An article based on Industry Week's census of manufacturers,
in which surveys were administered to managers from the shop-floor to the
executive level. The survey asked participants measure the extent
to which their companies have implemented or adopted recognized best practices
for human resources, manufacturing and production, quality management, customer
and supplier relations, and use of technology. This data not only reveals
which practices are most commonly used, but it also identifies practices
most likely to impact performance.[xx] |
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Copyright © 2005. David K. Johnson. All Rights Reserved.
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