Tracking the Trends in Inventory Management in the Automobile Manufacturing Industry Throughout the Business Cycle

This paper investigates the trends in inventory management in the automobile manufacturing industry during recessionary vs. non-recessionary periods. It is an empirical approach to testing the validity of the hypothesis that firms which carry leaner inventories perform better throughout the business cycle and are less affected by variability in the economy than less lean firms. The research also hopes to shed some light on how firm's financial statements can be manipulated through discretionary adjustments made by management pertaining to the valuation of inventories.

Activity based costing, time-driven activity based costing and lean accounting: differences among three accounting systems' approach to manufacturing

Choosing an appropriate accounting system for manufacturing has always been a challenge for managers. In this article we try to compare three accounting systems designed since 1980 to address problems of traditional accounting system. In the first place we are going to present a short overview on background and definition of three accounting systems: Activity Based costing, Time-Driven Activity Based Costing and Lean Accounting. Comparisons are made based on the three basic roles of information generated by accounting systems: financial reporting, decision making, and operational control and improvement. The analysis in this paper reveals how decisions are made over the value stream in the companies using Lean Accounting while decisions under the ABC Accounting system are taken at individual product level, and finally we will show how TD-ABC covers both product and process levels for decision making. In addition, this paper shows the importance of nonfinancial measures for operational control and improvement under the Lean Accounting and TD-ABC methods whereas ABC relies mostly on financial measures in this context.

Control de movimientos en presas de hormigón mediante DGPS. Comparación con otros métodos de auscultación e implicaciones para la seguridad. Estudio de caso en la presa de La Aceña (Ávila)

Las normativas que regulan la seguridad de las presas en España han recogido la necesidad de conocer los desplazamientos y deformaciones de sus estructuras y cimientos. A día de hoy, son muchas las presas en explotación que no cuentan con un sistema de auscultación adecuado para controlar este tipo de variables, ya que la instalación de métodos clásicos de precisión en las mismas podría no ser viable técnicamente y, de serlo, supondría un coste económico importante y una dudosa garantía del proceso de ejecución de la obra civil correspondiente. Con el desarrollo de las nuevas tecnologías, la informática y las telecomunicaciones, han surgido nuevos sistemas de auscultación de desplazamientos. Los sistemas GPS actuales, diseñados para el control de estructuras, guiado de maquinaria, navegación y topografía, estabilidad de taludes, subsidencias, etc. permiten alcanzar precisiones centimétricas. El sistema de control de movimientos basado en la tecnología DGPS (GPS diferencial) combinada con un filtro estadístico con el que se alcanzan sensibilidades de hasta ±1 mm en el sistema, suficientes para una auscultación normal de presas según los requerimientos de la normativa actual. Esta exactitud se adapta a los desplazamientos radiales de las presas, donde son muy comunes valores de amplitudes en coronación de hasta 15 mm en las de gravedad y de hasta 45 mm en el caso de las presas bóveda o arco. La presente investigación tiene por objetivo analizar la viabilidad del sistema DGPS en el control de movimientos de presas de hormigón comparando los diferentes sistemas de auscultación y su correlación con las variables físicas y las vinculadas al propio sistema GPS diferencial. Ante la necesidad de dar respuesta a estas preguntas y de validar e incorporar a la mencionada tecnología en la ingeniería civil en España, se ha llevado a cabo un estudio de caso en La Aceña (Ávila). Esta es una de las pocas presas españolas que se está controlando con dicha tecnología y de forma simultánea con los sistemas clásicos de auscultación y algunos otros de reciente aplicación La presente investigación se ha organizado con idea de dar respuesta a varias preguntas que el explotador de presas se plantea y que no se analizan en el estado del arte de la técnica: cómo hacer la configuración espacial del sistema y cuáles son los puntos necesarios que se deben controlar, qué sistemas de comunicaciones son los más fiables, cuáles son los costes asociados, calibración del software, vida útil y mantenimientos requeridos, así como la posibilidad de telecontrolar los datos. Entre las ventajas del sistema DGPS, podemos señalar su bajo coste de implantación y posibilidad de controlarlo de forma remota, así como la exactitud y carácter absoluto de los datos. Además, está especialmente indicado para presas aisladas o mal comunicadas y para aquellas otras en las que el explotador no tiene referencia alguna de la magnitud de los desplazamientos o deformaciones propias de la presa en toda su historia. Entre los inconvenientes de cualquier sistema apoyado en las nuevas tecnologías, destaca la importancia de las telecomunicaciones ya sea en el nivel local en la propia presao desde su ubicación hasta el centro de control de la explotación. Con la experiencia alcanzada en la gestión de la seguridad de presas y sobre la base de la reciente implantación de los nuevos métodos de auscultación descritos, se ha podido analizar cada una de sus ventajas e inconvenientes. En el capítulo 5, se presenta una tabla de decisión para el explotador que servirá como punto de partida para futuras inversiones. El impacto de esta investigación se ha visto reflejado en la publicación de varios artículos en revistas indexadas y en el debate suscitado entre gestores y profesionales del sector en los congresos nacionales e internacionales en los que se han presentado resultados preliminares. All regulations on the safety of dams in Spain have collected the need to know the displacements and deformations of the structure and its foundation. Today there are many dams holding not have an adequate system of auscultation to control variables such as the installation of classical methods of precision in the same might not be technically feasible, and if so, would cost important economic and guarantee the implementation process of the dubious civil works. With the development of new technologies, computing and telecommunications, new displacements auscultation systems have emerged. Current GPS systems designed to control structures, machine guidance, navigation and topography, slope stability, subsidence, etc, allow to reach centimeter-level accuracies. The motion control system based on DGPS technology applies a statistical filter that sensitivities are achieved in the system to ± 1 mm, sufficient for normal auscultation of dams as required by current regulations. This accuracy is adapted to the radial displacement of dams, which are common values in coronation amplitudes up to 15 mm in gravity dams and up to 45 mm in arch or arc dams. This research aims to analyze the feasibility of DGPS system in controlling movements of concrete dams, comparing the different systems auscultation and its correlation with physical variables and linked to differential GPS system itself. Given the need to answer this question and to validate and incorporate this technology to civil engineering in Spain, has conducted a case study in real time at the dam La Aceña (Ávila). This dam is one of the few Spanish companies, which are controlling with this technology and simultaneously with the classic auscultation systems and some other recent application. This research has been organized with a view to responding to questions that the dam operator arises and in the state of the art technique not discussed: how to make spatial configuration of the system and what are the necessary control points what communication systems are the most reliable, what are the associated costs, calibration software, service life and maintenance requirements, possibility of monitoring, etc. Among the advantages we can point to its low cost of implementation, the possibility of remote, high accuracy and absolute nature of the data. It could also be suitable for those isolated or poorly communicated dams and those in which the operator has no reference to the magnitude of displacements or deformations own prey in its history. The disadvantages of any system based on the new technologies we highlight the importance of telecommunications, either locally or from this dam control center of the farm. With the experience gained in the management of dam safety and based on the recent introduction of new methods of auscultation described, it has been possible to analyze each of their advantages and disadvantages. A decision table for the operator, which will serve as a starting point for future investments is presented. The impact of research, has been reflected in the publication of several articles in refereed journals and discussion among managers and professionals in national and international conferences in which they participated.

Viability of the biochar production from different manure wastes in the Amblés Valley (Ávila, Spain)

In the last years, intensive animal husbandry production has led to a large concentration of animals in small areas. This has resulted in the production of excessive amounts of manures with insufficient nearby land for application. One of this areas is the Amblés Valley located in the centre of Spain, near to Ávila city, with an extension of 167472 ha of which 88.9% is agricultural land. This valley has an important livestock focused on pig, cattle, chicken production which is associated with the generation of more than 200,000 t/year of manure. There are a number of environmental problems associated with these intensive agricultural systems, including N and P pollution of water bodies, methane emissions and odour pollution. These serious environmental threats are called for innovative environmental management approaches. A feasible technology for the management of manures, offering a potential to valorise these wastes, is pyrolysis, which results in the production of biochar. The objective of this work is evaluated the technical and economic feasibility of the production of biochar in Amblés Valley (Spain).

Sistemática de transformação: desenvolvimento teórico para o alinhamento entre estratégia e cultura organizacional nos projetos de Lean

Desde o final do Século XX e início do Século XXI, estudos analisam a elevada taxa de insucesso ou insatisfação com os Programas de Lean. Esta taxa tem se demonstrado demasiadamente elevada, variando entre 66% e 90%. Como efeito deste insucesso, tem-se o desperdício de tempo, dinheiro, recursos e, talvez o pior, tem-se a propagação do medo nos agentes de mudança em empreitar novas iniciativas de mudança. Estudos apontam a falta de alinhamento de tais projetos com a Cultura Organizacional como uma das questões fundamentais deste insucesso. Partindo desta temática de pesquisa, este ensaio teórico pode ser caracterizado como uma abordagem qualitativa de análise do problema, de natureza básica de pesquisa buscando gerar conhecimentos novos e úteis às organizações, sem aplicação prática prevista neste primeiro estágio de pesquisa. A fonte de evidências para sustentar o modelo proposto foi revisão dos estudos de caso encontrados na literatura, sendo utilizadas tanto uma Revisão Bibliográfica Sistemática (RBS) quanto Exploratória, de tal maneira a buscar o \"estado da arte\" no campo de estudo. A Fundamentação Teórica do trabalho é baseada na literatura de quatro grandes campos de estudo: (i) Estratégia, (ii) Lean, (iii) Cultura Organizacional e (iv) Gestão de Mudanças. A RBS tem foco nas interseções destes grandes campos, agregando 190 trabalhos internacionais. Por sua vez, a Revisão Exploratória traz algumas das principais referências dos três campos de estudo, como: Edgar Schein, John Kotter, Kim Cameron, Robert Quinn, David Mann, dentre outros. Desta maneira, este trabalho estudou a influência da cultura organizacional nos projetos de transformação e, a partir da ruptura com a teoria atual, construiu e propôs uma sistemática teórica, intitulada de \"Sistemática de Transformação\" (ou simplesmente \"Sistemática T\"), a qual propõe o alinhamento entre três dimensões: Estratégia, Projeto de Transformação e Cultura Organizacional. Fazendo uso desta sistemática, é esperado que os agentes de mudança consigam ter um planejamento mais eficaz do processo de diagnóstico, avaliação e gestão da cultura organizacional alinhado à Estratégia e também ao Projeto de Transformação da organização, com ênfase nos Programas de Lean. A proposição e uso desta sistemática pode favorecer tanto a discussão acadêmica na área de Gestão de Operações sobre o tema, quanto fornecer subsídios para aplicações práticas mais eficazes.

A Construction Management Framework for Mass Customisation in Traditional Construction

A Mass Customisation model is discussed as a competitive positioning strategy in the marketplace adding value to the customer’s end-use. It includes the user as part of the construction process responding to the customer’s demands and wishes. To the present day, almost all proposals for Mass Customisation have been focused on the design phase and single family houses. The reality is that the processes carried out in the work execution are so inefficient that the costs of the Mass Customisation models are assumed by the customer and they do not offer solutions that support the change management. Furthermore, this inefficiency often makes Mass Customisation unfeasible in terms of deadlines and site management. Therefore, the present proposal focuses on achieving the paradigm of Mass Customisation in the traditional residential construction complementary to the existing proposals in the design phase. All this through the proposal of a framework for the integral management in the work execution, which will address change management introduced by the users offering an efficient and productive model that reduces costs in the process. This model will focus on the synergy between different strategies, techniques and technologies currently used in the construction management (such as Lean Construction or Six Sigma), together with, other strategies and technologies that have proven to be valid solutions in other fields (such as Business Process Management, Service Oriented Architecture, etc.).

Inventory parameter management and focused continuous improvement for repetitive batch manufacturers

What this thesis proposes is a methodology to assist repetitive batch manufacturers in the adoption of certain aspects of the Lean Production principles. The methodology concentrates on the reduction of inventory through the setting of appropriate batch sizes, taking account of the effect of sequence dependent set-ups and the identification and elimination of bottlenecks. It uses a simple Pareto and modified EBQ based analysis technique to allocate items to period order day classes based on a combination of each item's annual usage value and set-up cost. The period order day classes the items are allocated to are determined by the constraints limits in the three measured dimensions, capacity, administration and finance. The methodology overcomes the limitations associated with MRP in the area of sequence dependent set-ups, and provides a simple way of setting planning parameters taking this effect into account by concentrating on the reduction of inventory through the systematic identification and elimination of bottlenecks through set-up reduction processes, so allowing batch sizes to reduce. It aims to help traditional repetitive batch manufacturers in a route to continual improvement by: Highlighting those areas where change would bring the greatest benefits. Modelling the effect of proposed changes. Quantifying the benefits that could be gained through implementing the proposed changes. Simplifying the effort required to perform the modelling process. It concentrates on increasing flexibility through managed inventory reduction through rationally decreasing batch sizes, taking account of sequence dependent set-ups and the identification and elimination of bottlenecks. This was achieved through the development of a software modelling tool, and validated through a case study approach.

Lean viewed as a philosophy

Purpose - The purpose of this paper is to act as a meticulous conceptual paper probing the contemporary view towards lean and illustrate that, despite its discernible benefits, the implementation record suffers as the prevailing opinion fails to encapsulate that an aspiring lean enterprise shall only succeed if it views lean as a philosophy rather than another strategy. Design/methodology/approach - The paper is based on a thorough literature search concerning the success and failure of lean implementations and acts as a precursor for one of the authors utilising a combination of methodologies; namely, interviewing, survey questionnaire and participant observation in attempting to prove his PhD hypothesis. Findings - Evidently, a cocktail of factors are needed for lean success; not only is it necessary to implement most of the technical tools but an organisation's culture needs transforming too. Furthermore, the alterations need to be implemented throughout an organisation's value chain. Lean has a major strategic significance, though its implementation procedure, HRM implications, general approach to the supplier base coupled with the overall universal conviction of viewing lean as a set of tactics rather than embracing it as a philosophy advocates that this contributes to the relatively low number of successful lean initiatives. Originality/value - The paper would prove invaluable to lean practitioners through its summation of the intricacies towards lean enterprise success and academic researchers by focusing their attention towards the necessary cultural implications. © Emerald Group Publishing Limited.

Green as the new Lean:how to use Lean practices as a catalyst to greening your supply chain

The aim of this research paper is to explore and evaluate previous work focussing on the relationship and links between Lean and Green supply chain management practices. Several explanatory frameworks are explored and discussed. It is intended that evidence and insights can be developed and used: (a) to assist our understanding of where Lean practices are synergistic for Green; (b) to clarify if Green practices are synergistic for Lean; and (c) to identify opportunities for companies to use their Lean framework as a catalyst to making their processes Green. The paper provides evidence suggesting that Lean is beneficial for Green practices and the implementation of Green practices in turn also has a positive influence on existing Lean business practices. © 2010 Elsevier Ltd. All rights reserved.

A configuration framework of manufacturing strategy paradigm in state owned enterprises within China's petrochemical industry:building context-embedded configurations for the paradigm of strategic manufacturing management from exploratory case studies

The role of the production system as a key determinant of competitive performance of business operations- has long been the subject of industrial organization research, even predating the .explicit conceptua1isation of manufacturing, strategy in the literature. Particular emergent production issues such as the globalisation of production, global supply chain management, management of integrated manufacturing and a growing e~busjness environment are expected to critically influence the overall competitive performance and therefore the strategic success of the organization. More than ever, there is a critical need to configure and improve production system and operations competence in a strategic way so as to contribute to the long-term competitiveness of the organization. In order to operate competitively and profitably, manufacturing companies, no matter how well managed, all need a long-term 'strategic direction' for the development of operations competence in order to consistently produce more market value with less cost towards a leadership position. As to the long-term competitiveness, it is more important to establish a dynamic 'strategic perspective' for continuous operational improvements in pursuit of this direction, as well as ongoing reviews of the direction in relation to the overall operating context. However, it also clear that the 'existing paradigm of manufacturing strategy development' is incapable of adequately responding to the increasing complexities and variations of contemporary business operations. This has been factually reflected as many manufacturing companies are finding that methodologies advocated in the existing paradigm for developing manufacturing strategy have very limited scale and scope for contextual contingency in empirical application. More importantly, there has also emerged a deficiency in the multidimensional and integrative profile from a theoretical perspective when operationalising the underlying concept of strategic manufacturing management established in the literature. The point of departure for this study was a recognition of such contextual and unitary limitations in the existing paradigm of manufacturing strategy development when applied to contemporary industrial organizations in general, and Chinese State Owned Enterprises (SOEs) in particular. As China gradually becomes integrated into the world economy, the relevance of Western management theory and its paradigm becomes a practical matter as much as a theoretical issue. Since China markedly differs from Western countries in terms of culture, society, and political and economic systems, it presents promising grounds to test and refine existing management theories and paradigms with greater contextual contingency and wider theoretical perspective. Under China's ongoing programmes of SOE reform, there has been an increased recognition that strategy development is the very essence of the management task for managers of manufacturing companies in the same way as it is for their counterparts in Western economies. However, the Western paradigm often displays a rather naive and unitary perspective of the nature of strategic management decision-making, one which largely overlooks context-embedded factors and social/political influences on the development of manufacturing strategy. This thesis studies the successful experiences of developing manufacturing strategy from five high-performing large-scale SOEs within China’s petrochemical industry. China’s petrochemical industry constitutes a basic heavy industrial sector, which has always been a strategic focus for reform and development by the Chinese government. Using a confirmation approach, the study has focused on exploring and conceptualising the empirical paradigm of manufacturing strategy development practiced by management. That is examining the ‘empirical specifics’ and surfacing the ‘managerial perceptions’ of content configuration, context of consideration, and process organization for developing a manufacturing strategy during the practice. The research investigation adopts a qualitative exploratory case study methodology with a semi-structural front-end research design. Data collection follows a longitudinal and multiple-case design and triangulates case evidence from sources including qualitative interviews, direct observation, and a search of documentations and archival records. Data analysis follows an investigative progression from a within-case preliminary interpretation of facts to a cross-case search for patterns through theoretical comparison and analytical generalization. The underlying conceptions in both the literature of manufacturing strategy and related studies in business strategy were used to develop theoretical framework and analytical templates applied during data collection and analysis. The thesis makes both empirical and theoretical contributions to our understanding of 'contemporary management paradigm of manufacturing strategy development'. First, it provides a valuable contextual contingency of the 'subject' using the business setting of China's SOEs in petrochemical industry. This has been unpacked into empirical configurations developed for its context of consideration, its content and process respectively. Of special note, a lean paradigm of business operations and production management discovered at case companies has significant implications as an emerging alternative for high-volume capital intensive state manufacturing in China. Second, it provides a multidimensional and integrative theoretical profile of the 'subject' based upon managerial perspectives conceptualised at case companies when operationalising manufacturing strategy. This has been unpacked into conceptual frameworks developed for its context of consideration, its content constructs, and its process patterns respectively. Notably, a synergies perspective towards the operating context, competitive priorities and competence development of business operations and production management has significant implications for implementing a lean manufacturing paradigm. As a whole, in so doing, the thesis established a theoretical platform for future refinement and development of context-specific methodologies for developing manufacturing strategy.

Searching for lean white-collar workers

The purpose of this research has been to investigate the extent to which Lean techniques have been applied to indirect or White Collar activities within manufacturing operations. The work has been based on a systematic review of the literature and six UK based case studies. Both are described in the paper. The findings from this work include, for example, that there are few reports off the application of Lean in this context. The more substantive papers focus on NPI and Project Management, where as, Support and ‘Front Office’ activities are covered only briefly in ‘trade journal’ articles. These do demonstrate that Lean techniques can be applied successfully to non-production related activities, and there are significant opportunities for work in this area. However, the definition of Lean is evolving and practitioners do not share a common understanding of terminology. This may undermine their accuracy when reporting the application of Lean techniques.

A study into the effectiveness of quality management training:a focus on tools and critical success factors

Purpose – The purpose of this paper is to investigate the effectiveness of quality management training by reviewing commonly used critical success factors and tools rather than the overall methodological approach. Design/methodology/approach – The methodology used a web-based questionnaire. It consisted of 238 questions covering 77 tools and 30 critical success factors selected from leading academic and practitioner sources. The survey had 79 usable responses and the data were analysed using relevant statistical quality management tools. The results were validated in a series of structured workshops with quality management experts. Findings – Findings show that in general most of the critical success factor statements for quality management are agreed with, although not all are implemented well. The findings also show that many quality tools are not known or understood well; and that training has an important role in raising their awareness and making sure they are used correctly. Research limitations/implications – Generalisations are limited by the UK-centric nature of the sample. Practical implications – The practical implications are discussed for organisations implementing quality management initiatives, training organisations revising their quality management syllabi and academic institutions teaching quality management. Originality/value – Most recent surveys have been aimed at methodological levels (i.e. “lean”, “Six Sigma”, “total quality management” etc.); this research proposes that this has limited value as many of the tools and critical success factors are common to most of the methodologies. Therefore, quite uniquely, this research focuses on the tools and critical success factors. Additionally, other recent comparable surveys have been less comprehensive and not focused on training issues.

Design and development of logistics workflow systems for demand management with RFID

This paper discusses demand and supply chain management and examines how artificial intelligence techniques and RFID technology can enhance the responsiveness of the logistics workflow. This proposed system is expected to have a significant impact on the performance of logistics networks by virtue of its capabilities to adapt unexpected supply and demand changes in the volatile marketplace with the unique feature of responsiveness with the advanced technology, Radio Frequency Identification (RFID). Recent studies have found that RFID and artificial intelligence techniques drive the development of total solution in logistics industry. Apart from tracking the movement of the goods, RFID is able to play an important role to reflect the inventory level of various distribution areas. In today’s globalized industrial environment, the physical logistics operations and the associated flow of information are the essential elements for companies to realize an efficient logistics workflow scenario. Basically, a flexible logistics workflow, which is characterized by its fast responsiveness in dealing with customer requirements through the integration of various value chain activities, is fundamental to leverage business performance of enterprises. The significance of this research is the demonstration of the synergy of using a combination of advanced technologies to form an integrated system that helps achieve lean and agile logistics workflow.

Acceptability of Lean Six Sigma in a developing economy:results from exploratory research in Nigerian consulting companies

The application of Lean Six Sigma (LSS) varies in different regions of the world in terms of both level of understanding and acceptability. Employing a qualitative methodological approach, this paper aims to explore factors hindering the acceptability of the LSS initiative in organizations and list factors required for successful application and implementation in a developing economy from the perspective of LSS consultants. Using Nigeria as a case study, primary data were collected though a number of semi-structured interviews with representatives of leading continuous improvement consultancy firms in Nigeria. Finding draws out links between major factors such as drivers and motivation, LSS performance, marketability and challenges to the acceptability and applicability of LSS in Nigeria. Further findings highlight major factors such as lack of management buy-in, level of awareness, certification driven market, Nigerian environment and culture, etc as problems that hinder successful implementation of LSS in Nigeria. This paper contributes to the theoretical foundation of critical success factors required for the implementation of Lean Six Sigma, with results from the experience of a developing economy.

Towards the strategic adoption of Lean in aviation Maintenance Repair and Overhaul (MRO) industry:an empirical study into the industry's Lean status

Purpose - Despite many Maintenance Repair and Overhaul (MRO) organisations alluding their positive business performances to the adoption Lean initiatives, there is a paucity of direct literature that validates this assertion. Thus, the purpose of this paper is to study empirically via the use of an industry-wide survey to establish and extent of Lean adoption and to verify its suitability in mitigating prevalent MRO challenges. Design/methodology/approach - The empirical study contained in this paper is facilitated by an industry-wide survey to collect data from several firms across the MRO spectrum. The analysed responses from industry leaders, professionals and executives synthesised with existing literature was used in ascertaining the extent of Lean adoption within the operational framework of the industry. Findings - The empirical study helped in validating the suitability of Lean in MRO context. However, it was also observed that the focus of its application was skewed towards its production-orientated functions more than its service-orientated functions. Nonetheless, this paper presents results of the positive influence of Lean in MRO context. Research limitations/implications - This empirical study presented in this paper was carried out within a framework of key characteristics of operation. Although this approach is sufficient in assessing the industry's Lean status, further assessment can also be achieved within the context of relevant performance metrics which was not included in this paper. Practical implications - By exploring the industry's Lean status within the context of operational characteristics of operation, this study provides MRO practitioners with more awareness into some of the critical factors required for successful holistic Lean realisation. Social implications - The state-of-the-art of Lean within the aviation MRO context established through this research also contributes to the wider product-centric service environment by providing a platform that facilitates strategy development which ensures Lean success within this environment. Originality/value - Apart from validating the suitability of Lean in MRO contexts, by establishing the extent of Lean adoption within the context of the operational framework, this paper provides a clearer insight as to how successful Lean implementation can be achieved via a holistic implementation strategy balanced between the product-centric and service-centric aspects of the industry.