Competitive edge through operations management

A view has emerged within manufacturing and service organizations that the operations management function can hold the key to achieving competitive edge. This has recently been emphasized by the demands for greater variety and higher quality which must be set against a background of increasing cost of resources. As nations' trade barriers are progressively lowered and removed, so producers of goods and service products are becoming more exposed to competition that may come from virtually anywhere around the world. To simply survive in this climate many organizations have found it necessary to improve their manufacturing or service delivery systems. To become real ''winners'' some have adopted a strategic approach to operations and completely reviewed and restructured their approach to production system design and operations planning and control. The articles in this issue of the International journal of Operations & Production Management have been selected to illustrate current thinking and practice in relation to this situation. They are all based on papers presented to the Sixth International Conference of the Operations Management Association-UK which was held at Aston University in June 1991. The theme of the conference was "Achieving Competitive Edge" and authors from 15 countries around the world contributed to more than 80 presented papers. Within this special issue five topic areas are addressed with two articles relating to each. The topics are: strategic management of operations; managing change; production system design; production control; and service operations. Under strategic management of operations De Toni, Filippini and Forza propose a conceptual model which considers the performance of an operating system as a source of competitive advantage through the ''operation value chain'' of design, purchasing, production and distribution. Their model is set within the context of the tendency towards globalization. New's article is somewhat in contrast to the more fashionable literature on operations strategy. It challenges the validity of the current idea of ''world-class manufacturing'' and, instead, urges a reconsideration of the view that strategic ''trade-offs'' are necessary to achieve a competitive edge. The importance of managing change has for some time been recognized within the field of organization studies but its relevance in operations management is now being realized. Berger considers the use of "organization design", ''sociotechnical systems'' and change strategies and contrasts these with the more recent idea of the ''dialogue perspective''. A tentative model is suggested to improve the analysis of different strategies in a situation specific context. Neely and Wilson look at an essential prerequisite if change is to be effected in an efficient way, namely product goal congruence. Using a case study as its basis, their article suggests a method of measuring goal congruence as a means of identifying the extent to which key performance criteria relating to quality, time, cost and flexibility are understood within an organization. The two articles on production systems design represent important contributions to the debate on flexible production organization and autonomous group working. Rosander uses the results from cases to test the applicability of ''flow groups'' as the optimal way of organizing batch production. Schuring also examines cases to determine the reasons behind the adoption of ''autonomous work groups'' in The Netherlands and Sweden. Both these contributions help to provide a greater understanding of the production philosophies which have emerged as alternatives to more conventional systems -------for intermittent and continuous production. The production control articles are both concerned with the concepts of ''push'' and ''pull'' which are the two broad approaches to material planning and control. Hirakawa, Hoshino and Katayama have developed a hybrid model, suitable for multistage manufacturing processes, which combines the benefits of both systems. They discuss the theoretical arguments in support of the system and illustrate its performance with numerical studies. Slack and Correa's concern is with the flexibility characteristics of push and pull material planning and control systems. They use the case of two plants using the different systems to compare their performance within a number of predefined flexibility types. The two final contributions on service operations are complementary. The article by Voss really relates to manufacturing but examines the application of service industry concepts within the UK manufacturing sector. His studies in a number of companies support the idea of the ''service factory'' and offer a new perspective for manufacturing. Harvey's contribution by contrast, is concerned with the application of operations management principles in the delivery of professional services. Using the case of social-service provision in Canada, it demonstrates how concepts such as ''just-in-time'' can be used to improve service performance. The ten articles in this special issue of the journal address a wide range of issues and situations. Their common aspect is that, together, they demonstrate the extent to which competitiveness can be improved via the application of operations management concepts and techniques.

Green innovation management in the automotive industry

Online case studies. Managing Innovation is an established, bestselling text for MBA, MSc and advanced undergraduate courses on management of technology, innovation management and entrepreneurship. It is also used widely by managers in both the service and manufacturing sectors. Now in its fourth edition, Managing Innovation has been fully revised and updated based on extensive user feedback to incorporate the latest findings and techniques in innovation management. The authors have included a new and more explicit innovation model, which is used throughout the book and have introduced two new features – Research Notes and Views from the Front Line – to incorporate more real life case material into the book. The strong evidence–based and practical approach makes this a must–read for anyone studying or working within innovation. An extensive website accompanies this text at www.managing–innovation.com. Readers can browse an online database of audio and video clips, as well as case study material, interactive exercises and tools for innovation, whilst lecturers can find additional support material including instructor slides and teaching guides and tips. "Tidd and Bessant's text has become a standard for students and practitioners of innovation. They offer a lively account on innovation management full of interesting and new examples, but one that at the same is rigorously anchored in what we have learned over the last thirty years on how to manage that ultimate business challenge of renewing products, processes, and business models. Those who want to innovate must read this book." — Professor Arnoud De Meyer, Director, Judge Business School, University of Cambridge, UK "Innovation matters and this book by two leaders in the field which is clear and practical as well as rigorous should be essential reading for all seeking to study or to become involved in innovation." — Chris Voss, Professor of Operations and Technology Management, London Business School "...comprehensive and comprehensible compendium on the management of innovation. It is very well organized and very well presented. A pedagogic tool that will work at multiple levels for those wishing to gain deeper insights into some of the most challenging and important management issues of the day." — David J. Teece, Thomas W. Tusher Professor in Global Business, Haas School of Business, University of California, Berkeley, USA "Those of us who teach in the field of Innovation Management were delighted when the first edition of this book appeared 11 years ago. The field had long been in need of such a comprehensive and integrated empirically–based work. The fact that this is now the 4th edition is clear testimony to the value of its contribution. We are deeply indebted to the authors for their dedication and diligence in providing us with this updated and expanded volume." — Thomas J. Allen,Howard W. Johnson Professor of Management, MIT Sloan School of Management, USA.

A process view of knowledge management:it ain't what you do, it's the way that you do it

Knowledge management needs to consider the three related elements of people, processes and technology. Much existing work has concentrated on either people or technology, often to the exclusion of the other two elements. Yet without thinking about process – the way people, organisations and even technology actually do things – any implementation of a knowledge management initiative is at best risky, and at worst doomed to failure. This presentation looks at various ways in which a process view has appeared, explicitly or implicitly, in knowledge management research and practice so far, and reflects on how more “thinking about process” might improve knowledge management in the future. Consistent with the presentation’s own overall viewpoint, the issues generally centre not on what a process view would suggest should be done, but on the way that it would be implemented in practice.

Efforts towards adaptability enhancement:how manufacturing and service industries can learn from each other

This paper discusses the recent emerging efforts for adaptability enhancement of Japanese industries to cope with a volatile demand environment. It is based on an analysis of data obtained from respondent companies. The analysis is focused on both manufacturing and manufacturing- related service industries such as construction/maintenance, software supply, manufacturing consultation and logistics industries to highlight their current situation, the sense of crisis in Japanese companies and possible future directions in relation to the two industry sectors. The principal conclusion is that for most companies consideration of a revision or modification to its cost structure is an essential requirement for survival in the global competitive environment.

A survey based analysis of IT adoption and 3PLs' performance

Purpose: In today's competitive scenario, effective supply chain management is increasingly dependent on third-party logistics (3PL) companies' capabilities and performance. The dissemination of information technology (IT) has contributed to change the supply chain role of 3PL companies and IT is considered an important element influencing the performance of modern logistics companies. Therefore, the purpose of this paper is to explore the relationship between IT and 3PLs' performance, assuming that logistics capabilities play a mediating role in this relationship. Design/methodology/approach: Empirical evidence based on a questionnaire survey conducted on a sample of logistics service companies operating in the Italian market was used to test a conceptual resource-based view (RBV) framework linking IT adoption, logistics capabilities and firm performance. Factor analysis and ordinary least square (OLS) regression analysis have been used to test hypotheses. The focus of the paper is multidisciplinary in nature; management of information systems, strategy, logistics and supply chain management approaches have been combined in the analysis. Findings: The results indicate strong relationships among data gathering technologies, transactional capabilities and firm performance, in terms of both efficiency and effectiveness. Moreover, a positive correlation between enterprise information technologies and 3PL financial performance has been found. Originality/value: The paper successfully uses the concept of logistics capabilities as mediating factor between IT adoption and firm performance. Objective measures have been proposed for IT adoption and logistics capabilities. Direct and indirect relationships among variables have been successfully tested. © Emerald Group Publishing Limited.

A strategy formulation process for the delivery of technology enabled service delivery systems

The Product Service Systems, servitization, and Service Science literature continues to grow as organisations seek to protect and improve their competitive position. The potential of technology applications to deliver service delivery systems facilitated by the ability to make real time decisions based upon ‘in the field’ performance is also significant. Research identifies four key questions to be addressed. Namely: how far along the servitization continuum should the organisation go in a single strategic step? Does the organisation have the structure and infrastructure to support this transition? What level of condition monitoring should it employ? Is the product positioned correctly in the value chain to adopt condition monitoring technology? Strategy consists of three dimensions, namely content, context, and process. The literature relating to PSS, servitization, and strategy all discuss the concepts relative to content and context but none offer a process to deliver an aligned strategy to deliver a service delivery system enabled by condition based management. This paper presents a tested iterative strategy formulation methodology which is the result of a structured development programme.

Culture and behaviour in the English National Health Service:overview of lessons from a large multimethod study

Background - Problems of quality and safety persist in health systems worldwide. We conducted a large research programme to examine culture and behaviour in the English National Health Service (NHS). Methods - Mixed-methods study involving collection and triangulation of data from multiple sources, including interviews, surveys, ethnographic case studies, board minutes and publicly available datasets. We narratively synthesised data across the studies to produce a holistic picture and in this paper present a highlevel summary. Results - We found an almost universal desire to provide the best quality of care. We identified many 'bright spots' of excellent caring and practice and high-quality innovation across the NHS, but also considerable inconsistency. Consistent achievement of high-quality care was challenged by unclear goals, overlapping priorities that distracted attention, and compliance-oriented bureaucratised management. The institutional and regulatory environment was populated by multiple external bodies serving different but overlapping functions. Some organisations found it difficult to obtain valid insights into the quality of the care they provided. Poor organisational and information systems sometimes left staff struggling to deliver care effectively and disempowered them from initiating improvement. Good staff support and management were also highly variable, though they were fundamental to culture and were directly related to patient experience, safety and quality of care. Conclusions - Our results highlight the importance of clear, challenging goals for high-quality care. Organisations need to put the patient at the centre of all they do, get smart intelligence, focus on improving organisational systems, and nurture caring cultures by ensuring that staff feel valued, respected, engaged and supported.

The need for wider supply chain management adoption:empirical results from Ireland

Purpose - This paper aims to provide empirical results which suggest that there is a need for more widespread adoption of supply chain management among Irish firms. Design/methodology/approach - The Republic of Ireland is a small, open, trade-dependent economy and is one of the fastest growing economies in the developed world. However, due to rising costs, there is an increasing trend in Ireland to outsource lower function manufacturing processes to lower-cost locations but to retain high-skill functions (such as R&D). This trend, together with other factors such as its peripheral location, suggests that supply chain management is critical from an Irish perspective. In order to gain unique insights of current levels of awareness/adoption of SCM and the potential impact SCM could have on competitiveness, a survey was conducted among 776 Irish firms. Findings - Overall, the findings suggest that many firms in Ireland pay lip-service to the importance of SCM elements and objectives but the majority of firms, about two thirds, have only a passing understanding of what constitutes SCM. Only 25 per cent adopt SCM programmes and only 9 per cent of Irish companies have a specialised SCM or logistics manager. The gaps in their understanding of SCM are matched by the gaps in their awareness of key costs (e.g. 59 per cent of companies do not know their total supply chain costs). While there are supply chain management adopters in Ireland that are already well up the s-curve of innovation transfer, it is the larger group of less aware companies that must become better at how they manage their supply chains. Originality/value - The paper offers a useful insight into supply chain management and its role in Irish industry. © Emerald Group Publishing Limited.

Supply management:is it a discipline?

Purpose – To examine management literature for guidance on what constitutes a discipline. To examine supply management publications to determine whether the field constitutes a discipline or an emerging discipline. To contribute a structured evaluation to the body of supply management theory/discipline development knowledge. Design/methodology/approach – Literature review of what constitutes a discipline and an initial assessment of whether supply management is a discipline. Development of research questions used to design tests, using combinations of qualitative pattern matching, journal quality rankings, and social science citations index impact factor. Application of the tests, to evaluate field coherence, quality and the existence of a discipline-debate, to determine whether supply management is an emerging discipline. Findings – An initial literature review finds supply management not to be a discipline, as the field lacks quality of theoretical development and discussion, and coherence. Tests for increasing evidence of coherence, quality and impact yield positive results, indicating that supply management is progressing in its theoretical development. The test findings combined with the existence of the start of a discipline-debate indicate that supply management should be judged to be an emerging discipline. Originality/value – Drawing from the management literature, the paper provides a unique structured evaluation of the field of supply management, finding it not to be a discipline, but showing evidence of being an emerging discipline.

ICT innovation diffusion in small logistics service providers:an empirical study

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives.

An Investigation into Outsourcing Practice in Ireland:A New Direction in Logistics and Supply Chain Management

Companies are increasingly focusing on the development of core competencies as an integral part of their overall strategy development and implementation. The corollary of this is that functions regarded as being non-core are being outsourced. This paper investigates the case for and against outsourcing and in addition what is happening in Ireland regards outsourcing. Furthermore to analysis of current literature in the field, an Irish-wide postal and e-mail survey, as well as three case studies revealed many interesting facts. The key findings of the work are manufacturing outsourcing is now the most popular function to be outsourced for both small to medium sized enterprises (SMEs) and large enterprises. Large enterprises (LEs) do not prepare or examine hidden costs more than SMEs, nor do they differ much in relation to the use of consultants. Furthermore, the importance of time spent on preparing or producing contract, and the impact the contract can have on the supplier-buyer relation do not differ significantly. It was found that most companies outsourced within Ireland, which led to further investigation in that area. In relation to logistics outsourcing specifically, this has become very important in the supply chain over the last 20 years as an activity that was traditionally handled by firms as a support function. At that time logistics activities such as warehousing, distribution, transportation and inventory management were given low priority compared with other business functions within the organisation. However, since the customer has become more demanding, the logistics function has now become a source of competitive advantage and there has been a growing emphasis on providing good customer service.

Perspectives on supply chain management and logistics:creating competitive organisations in the 21st Century

Globalisation is the buzzword of the twenty-first century. It forces businesses to compete not just with rivals within the same city or country, but with similar companies across the globe. In such a world the consumer is king and to keep on top businesses must show constant innovation and meet customers' ever-growing expectations. Supply chain management (SCM), with its focus on achieving the service levels demanded by markets and on optimising total supply chains cost and investment, has a potentially pivotal role to play in addressing these challenges. Perspectives on Supply Chain Management and Logistics is written by a mix of academics, consultants and practitioners, all of whom have significant theoretical and practical experience. The book was conceived with the many supply chain and logistics professionals who are following formal learning programmes at all levels (Certificate, Diploma, Degree and Masters) in the subject in mind. However, it is hoped that it will be read equally profitably by students, researchers and practicing SCM and logistics professionals.

Debate : arm's- length bodies and alternative models of service delivery

This article reflects on the UK coalition government’s ‘alternative models’ agenda, specifically in terms of the adoption of new models of service delivery by arm’s-length bodies (ALBs). It provides an overview of the alternative models agenda and discusses barriers to implementation. These include practical challenges involved in the set up of alternative models, the role of sponsor departments, and the effective communication of best practice. Finally, the article highlights some issues for further discussion.

An exploratory study of ICT usage in small logistics service providers

Information and communication technology (ICT) developments have strongly affected supply chain management (SCM) in recent years. ICT has had a great impact on all supply chain processes including planning, purchasing, production management, stock management, physical distribution and related integration management. Technology has become an important dimension of third party logistics (3PL) service supply as competitive advantage increasingly depends on the ability to create value for customers through the effective application of ICT. Within this process, while large 3PLs are gaining substantial benefits from technology usage and implementation, the magnitude of changes spurred by ICT dissemination in small logistics service providers remains unclear. This is reflected by the existing gap in literature where the role and competitive developing processes of small 3PLs are seriously underestimated. This gives rise to the need to develop research and investigation in this particular area. The objective of this paper is to narrow the knowledge gap in the field of ICT adoption in small 3PLs through an empirical investigation. It presents the results of a survey on a sample of small Italian 3PLs.