Production systems and supplier selection: a multi-phase process model

Purpose: This paper presents a combined multi-phase supplier selection model. The process repeatedly revisits the criteria and sourcing decision as the development process continues. This enables a structured adoption of product and production system innovation from strategic suppliers, where previously the literature purely focuses on product innovation or cost reduction. Design/methodology/approach: The authors adopted an embedded researcher style, inductive, qualitative case study of an industrial supply cluster comprising a focal automotive company and its interaction with three different strategic stamping suppliers. Findings: Our contribution is the multi-phased production and product innovation process. This is an advance from traditional supplier selection and also an extension of ideas of supplier-located product development as it includes production system development, and complements the literature on working with strategic suppliers. Specifically, we explicitly articulate the previously unreported issue of whether a supplier chosen for its innovation capabilities at the start of the new product development process will also be the most appropriate supplier during the production system development phase, when an ability to work collaboratively may be the most important attribute, or in the large-scale production phase when an ability to manufacture at low unit cost may be most important. Originality/value: The paper identifies a multi-phase approach to tendering within a fixed body of strategic suppliers which seeks to identify the optimum technological and process decisions as well as the traditional supplier sourcing choice. These areas have not been combined before and generate a valuable approach for firms to adopt as well as for researchers to extend our understanding of a highly complex process.

Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction?

This paper considers a large matched employee–employer data set to estimate a model of organizational commitment. In particular, it focuses on the role of firm size and management formality to explain organizational commitment in British small and medium-sized enterprises (SMEs) with high and low levels of employee satisfaction. It is shown that size ‘in itself’ can explain differences in organizational commitment, and that organizational commitment tends to be higher in organizations with high employee satisfaction compared with organizations of similar size with low employee satisfaction. Crucially, the results suggest that formal human resource (HR) practices can be used as important tools to increase commitment and thus, potentially, effort and performance within underperforming SMEs with low employee satisfaction. However, formal HR practices commonly used by large firms may be unnecessary in SMEs which benefit from high employee satisfaction and positive employment relations within a context of informality.

Towards Supplier Maturity Evaluation in Terms of PLM Collaboration

The product lifecycle management (PLM) system has a significant role to support the collaboration and manage the partnership between OEM and supplier to enable the success of supplier integration. Today great rates of cooperation as suppliers have been dedicated to SMEs. Since one of the PLM task is to control the collaboration between OEM and suppliers, this paper provide supplier (SMEs) a framework to find their level of relationship with OEM and the steps that they can improve it. To respond to this trend, we defined a methodology based on collaborative matrix maturity levels and four PLM axes of strategic, organization, process and tools levels. Finally, according to this matrix, we proposed a structure of a proper questionnaire and example that shows suppliers how to evaluate their positions in terms of collaboration in PLM.