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.

Környezeti innovációk a hazai feldolgozóiparban (Environmental innovations in the Hungarian manufacturing industry)

A cikk a hazai feldolgozóipari vállalatok környezeti innovációs tevékenységét, annak mozgatórugóit vizsgálja. Felvázolja a témakörrel foglalkozó jelentősebb elméleteket, kutatásokat, illetve az ezek által azonosított, a környezeti innovációs tevékenységet befolyásoló tényezőket (pl. hatósági szabályozás, vállalatméret, környezeti stratégia stb.). A bemutatott kutatás egy kérdőíves felmérésen alapul, melyben közel 300 vállalat vett részt az elektronika, az élelmiszeripar, a gépipar, a járműipar és a vegyipar területéről. A vizsgálat célja a környezeti innováció különböző típusainak (csővégi, megelőző, termék; új, adaptált) differenciált elemzése, figyelembe véve mind a vállalat, mind a környezet jellemzőit. A vállalatok innovációs tevékenysége jelentősen különbözhet az egyes ágazatokban, illetve a különböző méretű cégek között – a cikk ezen eltérések vizsgálatára is kitér. ______ The article examines the environmental innovation activity of Hungarian manufacturing companies and its determinants. It provides a brief overview of the most important theories and recent empirical studies addressing the topic. The research presented is based on a questionnaire survey with the participation of nearly 300 firms from the chemicals, electronics, food, machines and vehicles sectors. The goal of the study is to identify differences in the determinants of the various types of environmental innovation (end-of-pipe, cleaner production, product; novel, adopted), with regard to both the characteristics of the environment and the companies themselves. Differences between firms of various sizes and industries are also a part of the analysis.

A marketing, a termelés és a logisztika hozzájárulása a vállalati eredményességhez (The Contribution of Marketing, Production and Logistics to Business Performance)

A Budapesti Corvinus Egyetem Versenyképességkutató Központjának 2004-ben lekérdezett kérdőíve alapján, ami 154 feldolgozóipari vállalat adatait tartalmazza, azt vizsgáljuk, hogy az ellátási lánc három lényeges vállalati funkciója, a marketing, a termelés és a logisztika milyen mértékben járul hozzá az üzleti eredményességhez. Az eredmények szerint a marketingnek és a termelésnek erősebb hatása van a vállalati teljesítményre, mint a logisztikának. A három funkció együttesen csekély, bár statisztikai értelemben szignifikáns szerepet játszik az üzleti sikerben. _____ Companies are complex organizations where a lot of activities and processes have to work properly in order to reach success. Depending on several factors, sometimes some activities get more emphasis while others work in the background. Since organizational functions have separate literature and practical knowledge, and transit between them is rare, we do have very little knowledge on how the various functions together contribute to company success. Based on a wide-scale empirical study on Hungarian competitiveness, which includes data on 154 companies from the process industry, we examine to what extent three functions of the supply chain, marketing, manufacturing and logistics, can contribute to business success. Results show that marketing and manufacturing have larger effect on company performance than logistics. However, the three functions together play a minor, although significant role in company success.

Kultúraközi szolgáltatásélmények vizsgálata a megalapozott elmélet módszerével (Examination of the intercultural service experiences with grounded theory method)

A cikk fókuszában az interkulturális szolgáltatással való találkozás áll. A téma jelentősége kétségen kívül áll, hiszen a szolgáltatások egyre növekvő térhódítása, valamint a globalizáció terjedése fontossá teszi annak ismeretét, hogy a különböző nemzeti kultúrából érkező szolgáltató és fogyasztó számára hogyan érhető el a legfőbb cél, az elégedettség. A szerzők jelen kutatásukban annak megértését helyezték a középpontba, hogy melyek azok a tényezők, amelyek befolyásolják a felek erőfeszítéseit a találkozás során fellépő problémák megoldásában. Kutatásuk során mélyinterjúkat folytattak mind a szolgáltatói, mind a fogyasztói oldallal, majd a megalapozott elmélet (grounded theory) konstruktivista irányzatának segítségével elemezték ezen interjúkat, és azonosították azokat a tényezőket, amelyek fontossá válhatnak egy kultúraközi szolgáltatásélmény során. A kutatás eredményei rámutatnak, hogy melyek azok a kommunikációs és kulturális korlátok, amelyek problémát okozhatnak, s hogy az e problémák megoldására tett erőfeszítések visszavezethetők az interakció résztvevőinek személyes jellemzőire, tapasztalataira, kulturális nyitottságára és ismereteire. A kutatás eredményeinek egyik fontos menedzseri következtetése, hogy a szállodákban a probléma jelentősége ellenére nem helyeznek elegendő hangsúlyt a kommunikációs és kulturális korlátok leküzdésére irányuló képzésekre, tréningekre. _____ This paper presents an attempt to analyse the possible solutions to problems that can occur during intercultural service encounters (ICSE). Using grounded theory the authors provide a theoretical framework that identifies the factors that lead to ICSE barriers. Based on in-depth interviews with service providers and clients they have defined the relevant characteristics that influence intercultural competence. Intercultural competence with communication and cultural differences lead to problems during ICSE that can be handled by both parties: the service provider and the client, as well. An important finding is that service companies should provide adequate training that concentrates not only on the cultural knowledge but it should create capability in understanding and adapting to cultural differences.

Stratégiai paradigmaváltás szervezeti verseny(képesség) és az Operations management központi szerepe (Central role of strategic paradigm change, corporate competitiveness and operations management)

Az elmúlt két évtized folyamán a menedzserek megtanultak a megújult szabályok szerint játszani. Tudatosították, hogy a vállalatuk eredményes navigálásához folyamatosan figyelniük és adaptálniuk kell a legújabb módszereket, elméleteket. Jelen tanulmányával a szerző ezt a folyamatot kívánja segíteni, valamint arra az alapvető kérdésre keresi a választ, hogy érdemes-e a rendkívül gyorsan változó világban hosszabb távú célok meghatározásával foglalkozni, és ha igen, akkor mire összpontosítsák a vállalatok erőfeszítéseiket. Milyen részletezettséggel, milyen módon határozzák meg az elképzeléseiket úgy, hogy közben megőrizzék a vállalat flexibilitását, a változások idején nélkülözhetetlen agilitást. A szerző arra vállalkozik, hogy feltárja a stratégiai paradigmaváltás fejlődését, a termelési stratégia, az operations management központi meghatározó szereppé válását, valamint áttekintse a termelési és szolgáltatási rendszervezetés (OM) elveinek, eszközeinek, módszereinek fejlődését, kölcsönhatását, összefüggéseit. _______ Change of paradigm has taken place in strategic planning. Fight for position turned into a fight of movement. Companies strive to achieve individual, not copyable organizational performance, as well as to realize their business strategies by means of value generating, proactive approach. Operative management now placed in the focus of production strategy is becoming the compass, the driving force of leadership. The management of production and service systems has grown into independent scientific disciplines. It yielded such principles, tools and methods which are present as world-renowned blueprints (scientific tools) in the field of maintaining and developing corporate performance. In the present study the author specifies and discusses the tools of operative management as criteria of value generation aiming at quality and cost efficiency. He analyses the backto- back character, interrelationship of quality, TQM (Total Quality Management), TPS (Toyota Production System) and JIT (Just in Time). He examines the effects thereof on corporate performance where significant and strong relationship can be demonstrated in case there is an ability to plan and develop new products. The current new OM (Operations Management) techniques increasingly rely upon the quality of human resources, the permanent improvement of procedures as well as focusing on tight cooperation with suppliers/customers. Supply chain management, core competence management, service management now represent a “new generation” of the OM methods, processes, serving at the same time as basis and starting point for expectable future techniques as well.

Food service Contracts That Win: Essentials in the Development of a Food service Agreement

The authors provide tips for institutions wanting to place a contract for operation of their food service and for companies and/or individuals in the business of managing food service operations for a fee.

Genetically Altered Foods: A Policy Issue for Multi-unit Food Service Operators

Although it is a substantial issue, the technology behind genetically altered foods and the concerns being raised about them are not well understood by most people. The authors discuss how genetically altered foods might fit into the business strategies of multi-unit food service operators as well as current policies and predispositions of multi-unit food service companies toward the use of genetically altered foods. They also outline the issues surrounding genetically altered food as they relate to the food service industry and provide a picture of where multi-unit food service operators currently stand on the technology

Strategic positioning of Taiwan in the outsourcing market: Evidence from information technology services and electronic manufacturing outsourcing to China

In outsourcing relationships with China, the Electronic Manufacturing (EM) and Information Technology Services (ITS) industry in Taiwan may possess such advantages as the continuing growth of its production value, complete manufacturing supply chain, low production cost and a large-scale Chinese market, and language and culture similarity compared to outsourcing to other countries. Nevertheless, the Council for Economic Planning and Development of Executive Yuan (CEPD) found that Taiwan's IT services outsourcing to China is subject to certain constraints and might not be as successful as the EM outsourcing (Aggarwal, 2003; CEPD, 2004a; CIER, 2003; Einhorn and Kriplani, 2003; Kumar and Zhu, 2006; Li and Gao, 2003; MIC, 2006). Some studies examined this issue, but failed to (1) provide statistical evidence about lower prevalence rates of IT services outsourcing, and (2) clearly explain the lower prevalence rates of IT services outsourcing by identifying similarities and differences between both types of outsourcing contexts. This research seeks to fill that gap and possibly provide potential strategic guidelines to ITS firms in Taiwan. This study adopts Transaction Cost Economics (TCE) as the theoretical basis. The basic premise is that different types of outsourcing activities may incur differing transaction costs and realize varying degrees of outsourcing success due to differential attributes of the transactions in the outsourcing process. Using primary data gathered from questionnaire surveys of ninety two firms, the results from exploratory analysis and binary logistic regression indicated that (1) when outsourcing to China, Taiwanese firms' ITS outsourcing tends to have higher level of asset specificity, uncertainty and technical skills relative to EM outsourcing, and these features indirectly reduce firms' outsourcing prevalence rates via their direct positive impacts on transaction costs; (2) Taiwanese firms' ITS outsourcing tends to have lower level of transaction structurability relative to EM outsourcing, and this feature indirectly increases firms' outsourcing prevalence rates via its direct negative impacts on transaction costs; (3) frequency does influence firms' transaction costs in ITS outsourcing positively, but does not bring impacts into their outsourcing prevalence rates, (4) relatedness does influence firms' transaction costs positively and prevalence rates negatively in ITS outsourcing, but its impacts on the prevalence rates are not caused by the mediation effects of transaction costs, and (5) firm size of outsourcing provider does not affect firms' transaction costs, but does affect their outsourcing prevalence rates in ITS outsourcing directly and positively. Using primary data gathered from face-to-face interviews of executives from seven firms, the results from inductive analysis indicated that (1) IT services outsourcing has lower prevalence rates than EM outsourcing, and (2) this result is mainly attributed to Taiwan's core competence in manufacturing and management and higher overall transaction costs of IT services outsourcing. Specifically, there is not much difference between both types of outsourcing context in the transaction characteristics of reputation and most aspects of overall comparison. Although there are some differences in the feature of firm size of the outsourcing provider, the difference doesn't cause apparent impacts on firms' overall transaction costs. The medium or above medium difference in the transaction characteristics of asset specificity, uncertainty, frequency, technical skills, transaction structurability, and relatedness has caused higher overall transaction costs for IT services outsourcing. This higher cost might cause lower prevalence rates for ITS outsourcing relative to EM outsourcing. Overall, the interview results are consistent with the statistical analyses and provide support to my expectation that in outsourcing to China, Taiwan's electronic manufacturing firms do have lower prevalence rates of IT services outsourcing relative to EM outsourcing due to higher transaction costs caused by certain attributes. To solve this problem, firms' management should aim at identifying alternative strategies and strive to reduce their overall transaction costs of IT services outsourcing by initiating appropriate strategies which fit their environment and needs.

Technological capability development in China's energy service company industry

Technological capability (TC) plays a strategic role in the competitive advantage of not only individual corporate entities but also entire industries. This paper investigates the crucial factors that affect technological capability development by Energy Service Companies (ESCOs) in China. It identifies how differently sized ESCOs make progress in developing TCs. Through looking at the successes achieved by developed countries in the field of energy conservation, ESCOs are able to improve energy efficiency and reduce emissions and are deemed to provide an effective means of conserving energy in China. Existing literature indicates that limited TC levels of are one of the crucial barriers facing Chinese ESCOs. Through investigating three different sizes of Chinese ESCO - small, medium-sized and large - this paper provides a framework to present the idea that Chinese ESCOs' TC development is affected by four key internal and external capabilities: management capability, investment capability, innovation capability and linkage capability. Through comparative analysis, the paper establishes that small and medium-sized private ESCOs are mainly affected by investment and linkage capabilities. Large state-owned ESCOs are mainly affected by innovation and management capability. In addition, all three types of ESCO exhibit a strong desire to develop their technological capability, but small and medium-sized ESCOs exhibit a stronger desire to conduct research and development (R&D) than large ESCOs, whilst large ESCOs prefer to increase their technical reserves through acquisition. This paper identifies factors that affect Chinese ESCOs' TC, but it does intend to address the problem of how to reduce the negative effects of limited TC or the question of how to improve the TC development of Chinese ESCOs effectively. This paper contributes to the field of TC development in the ESCO industry.

From science gateways to commercial solutions

The European CloudSME project that incorporated 24 European SMEs, besides five academic partners, has finished its funded phase in March 2016. This presentation will provide a summary of the results of the project, and will analyze the challenges and differences when developing “SME Gateways”, when compared to “Science Gateways”. CloudSME started in 2013 with the aim to develop a cloud-based simulation platform for manufacturing and engineering SMEs. The project was based around industry use-cases, five of which were incorporated in the project from the start, and seven additional ones that were added as an outcome of an open call in January 2015. CloudSME utilized science gateway related technologies, such as the commercial CloudBroker Platform and the WS-PGRADE/gUSE Gateway Framework that were developed in the preceding SCI-BUS project. As most important outcome, the project successfully implemented 12 industry quality demonstrators that showcase how SMEs in the manufacturing and engineering sector can utilize cloud-based simulation services. Some of these solutions are already market-ready and currently being rolled out by the software vendor companies. Some others require further fine-tuning and the implementation of commercial interfaces before being put into the market. The CloudSME use-cases came from a very wide application spectrum. The project implemented, for example, an open marketplace for micro-breweries to optimize their production and distribution processes, an insole design validation service to be used by podiatrists and shoe manufacturers, a generic stock management solution for manufacturing SMEs, and also several “classical” high-performance computing case-studies, such as fluid dynamics simulations for model helicopter design, and dual-fuel internal combustion engine simulation. As the project generated significant impact and interest in the manufacturing sector, 10 CloudSME stakeholders established a follow-up company called CloudSME UG for the future commercialization of the results. Besides the success stories, this talk would also like to highlight the difficulties when transferring the outcomes of an academic research project to real commercial applications. The different mindset and approach of academic and industry partners presented a real challenge for the CloudSME project, with some interesting and valuable lessons learnt. The academic way of supporting SMEs did not always work well with the rather different working practices and culture of many participants. Also, the quality of support regarding operational solutions required by the SMEs is well beyond the typical support services academic institutions are prepared for. Finally, a clear lack of trust in academic solutions when compared to commercial solutions was also imminent. The talk will highlight some of these challenges underpinned by the implementation of the CloudSME use-cases.

Health reforms in Latin America: processes and results

Two types of health reforms in Latin America are analysed: one based on insurance and service commodification and the one referred to the unified public systems of progressive governments. Health insurance with explicit service packages has not fulfilled their purposes of universal coverage, equal access to necessary health services and improvement of health conditions but has opened health as a field of profit making for insurance companies and private health providers. The national health services as a state obligation have developed territorialized health services and widened substantially timely access to the majority of the population. The adoption of an integrated and wide social policy has an impact on population well fare. It faces some problems derived from the old health systems and the power of the insurance and medical complex.

Highway Performance and Time-Sensitive Industries, 1998

This report addresses delays to freight shippers. Although the focus is on just-in-time (JIT) businesses, the authors also note that non JIT businesses also suffer delays that impact their productivity. The table of contents lists the following headings: chapter 1 - introduction - a trial application: the Des Moines metropolitan area; structure of the report; chapter 2 - reliability at the forefront of freight transport demand - manufacturing and inventory; just-in-time operations in the U.S.; transportation consequences; summary; chapter 3 - JIT operations in Iowa - survey and sample; trucking activity and service; just-in-time truck transportation in Iowa; assessment of factors affecting truck transportation service; summary and conclusions; chapter 4 - travel time uncertainty induced by incidents - a probabilistic model for incident occurrences and durations; calculation of delay; trial application; conclusions; and chapter 5 - conclusions and recommendations - conclusions; recommendations.

Unifying Services Marketing and Operations with Service Experience Management

One of the pioneer firms in the leisure cruise industry embarked on a bold idea in 2000 to offer an unregimented experience unlike most cruises. Despite the appeal of the concept from a marketing perspective, the service innovation posed operational challenges, many of which continue to undermine the firm’s competitive position. Using a multi-method empirical approach and interdisciplinary views that draw on research from marketing and operations management, the authors analyze this business case to identify challenges that service firms face when services are developed and managed from siloed functional perspectives. Based on their research findings and guided by the literature, the authors derive a service-systems model to aid service planning and management. The authors further highlight a new organizational form and function for services under the domain of service experience management that is positioned as a means to unify service operations and marketing for delivering on service promises. The authors offer direction for further research on service operations systems and service experience management.

Professional service productization and its implications to knowledge transfer in internationalization processes –Case: Company X in Finnish, Swedish and Norwegian markets

As a result of globalization, two thirds of the world’s business takes place nowadays in the service sector. In line, professional service firms are growing their share of the global service production. However, saturation of the professional service sector has forced professional service firms to search for more heuristic ways to conduct business in the international markets. By leveraging effectively the firm’s professionals, a professional service firm can lower its costs to clients and simultaneously generate additional value for the company and thus gain competitive advantage. Even though the academic field has shown growing interest towards services for decades, the fields of service productization and service internationalization are heavily understudied even today. Hence, the objective of this study was to contribute to the research on professional service internationalization and productization. The study concentrated on examining the impact that productization has on knowledge sharing and leveraging in professional service firms operating internationally. The research question focused on examining what implications productization has on knowledge transfer and leveraging during professional service internationalization by leaning on the existing research and on an empirical research. The empirical research was conducted as a single case study within a professional service firm operating in debt-related administrative service business. The case company is one of the leading operators in its field of business and therefore offered a fruitful environment to observe and analyze the topics in question. Additionally, the case company has a strong international presence and a large scale of operations in the selected markets, Finland, Norway and Sweden. Based on the previous literature and on the empirical research, this study found that for professional service firms to efficiently utilize individual, tacit knowledge, in its internationalization processes, it must be shared with the whole organization. By exploiting productization as a knowledge leveraging mechanism, a PSF can apply and transfer knowledge profoundly during its internationalization processes that would otherwise be difficult to tap into. Productization might not be sufficient alone, but by complementing it with a favorable organizational structure and culture, and by encouraging open communication, a PSF may take advantage of the whole potential that productization has to offer.

Creating and measuring customer value in digital businesses

Most economic transactions nowadays are due to the effective exchange of information in which digital resources play a huge role. New actors are coming into existence all the time, so organizations are facing difficulties in keeping their current customers and attracting new customer segments and markets. Companies are trying to find the key to their success and creating superior customer value seems to be one solution. Digital technologies can be used to deliver value to customers in ways that extend customers’ normal conscious experiences in the context of time and space. By creating customer value, companies can gain the increased loyalty of existing customers and better ways to serve new customers effectively. Based on these assumptions, the objective of this study was to design a framework to enable organizations to create customer value in digital business. The research was carried out as a literature review and an empirical study, which consisted of a web-based survey and semi-structured interviews. The data from the empirical study was analyzed as mixed research with qualitative and quantitative methods. These methods were used since the object of the study was to gain deeper understanding about an existing phenomena. Therefore, the study used statistical procedures and value creation is described as a phenomenon. The framework was designed first based on the literature and updated based on the findings from the empirical study. As a result, relationship, understanding the customer, focusing on the core product or service, the product or service quality, incremental innovations, service range, corporate identity, and networks were chosen as the top elements of customer value creation. Measures for these elements were identified. With the measures, companies can manage the elements in value creation when dealing with present and future customers and also manage the operations of the company. In conclusion, creating customer value requires understanding the customer and a lot of information sharing, which can be eased by digital resources. Understanding the customer helps to produce products and services that fulfill customers’ needs and desires. This could result in increased sales and make it easier to establish efficient processes.