Lean performance measures in a supply chain

Dissertação para obtenção do Grau de Mestre em Engenharia e Gestão Industrial

Construction of Lean and Green indexes to measure companies’ performance

The demand for costs and time reductions in companies’ processes, in order to increase efficiency, leads companies to seek innovative management paradigms to support their needs for growth and continuous improvement. The Lean paradigm has great relevance in companies’ need for waste reduction, particularly in manufacturing companies. On the other hand the demand of companies for waste reduction has gained a new dimension not only at the material level, but also at the environmental level with the introduction of the Green paradigm. As such, manufacturing companies have been adopting practices that reduce the impact of their activities on the environment. Although nowadays many manufacturing companies already implement waste reduction practices related to Lean and Green paradigms, many of them are unable to understand specifically if their efforts are enough for the application of these practices to be successful or even if their actual performance in implementing Lean or Green practices reflects the self-assessment that they have of themselves. Thus, besides the study of the development of Lean and Green paradigms in recent years, the present dissertation has the important objective of the construction of two indexes (the Lean Index and the Green Index) enabling the measurement of the performance of Portuguese manufacturing companies relating the implementation of Lean and Green practices. The data used to create the Lean and Green indexes where obtained from the implementation of the European Manufacturing Survey 2012 in Portugal. The survey questions related to the implementation of Lean and Green practices are used as variables in the development of the model for the two indexes. For the construction of representative expressions of Lean Index and Green Index it was applied the Factorial Analysis for assigning the variables weights and aggregation.

Impact performance prediction of injection-molded talc-filled polypropylene through thermomechanical environment assessment

Due to the fact that different injection molding conditions tailor the mechanical response of the thermoplastic material, such effect must be considered earlier in the product development process. The existing approaches implemented in different commercial software solutions are very limited in their capabilities to estimate the influence of processing conditions on the mechanical properties. Thus, the accuracy of predictive simulations could be improved. In this study, we demonstrate how to establish straightforward processing-impact property relationships of talc-filled injection-molded polypropylene disc-shaped parts by assessing the thermomechanical environment (TME). To investigate the relationship between impact properties and the key operative variables (flow rate, melt and mold temperature, and holding pressure), the design of experiments approach was applied to systematically vary the TME of molded samples. The TME is characterized on computer flow simulation outputsanddefined bytwo thermomechanical indices (TMI): the cooling index (CI; associated to the core features) and the thermo-stress index (TSI; related to the skin features). The TMI methodology coupled to an integrated simulation program has been developed as a tool to predict the impact response. The dynamic impact properties (peak force, peak energy, and puncture energy) were evaluated using instrumented falling weight impact tests and were all found to be similarly affected by the imposed TME. The most important molding parameters affecting the impact properties were found to be the processing temperatures (melt andmold). CI revealed greater importance for the impact response than TSI. The developed integrative tool provided truthful predictions for the envisaged impact properties.

Degradation of all-inkjet-printed organic thin-film transistors with TIPS-pentacene under processes applied in textile manufacturing

Printed electronics represent an alternative solution for the manufacturing of low-temperature and large area flexible electronics. The use of inkjet printing is showing major advantages when compared to other established printing technologies such as, gravure, screen or offset printing, allowing the reduction of manufacturing costs due to its efficient material usage and the direct-writing approach without requirement of any masks. However, several technological restrictions for printed electronics can hinder its application potential, e.g. the device stability under atmospheric or even more stringent conditions. Here, we study the influence of specific mechanical, chemical, and temperature treatments usually appearing in manufacturing processes for textiles on the electrical performance of all-inkjet-printed organic thin-film transistors (OTFTs). Therefore, OTFTs where manufactured with silver electrodes, a UV curable dielectric, and 6,13-bis(triisopropylsilylethynyl) pentance (TIPS-pentacene) as the active semiconductor layer. All the layers were deposited using inkjet printing. After electrical characterization of the printed OTFTs, a simple encapsulation method was applied followed by the degradation study allowing a comparison of the electrical performance of treated and not treated OTFTs. Industrial calendering, dyeing, washing and stentering were selected as typical textile processes and treatment methods for the printed OTFTs. It is shown that the all-inkjet-printed OTFTs fabricated in this work are functional after their submission to the textiles processes but with degradation in the electrical performance, exhibiting higher degradation in the OTFTs with shorter channel lengths (L=10 μm).

Aplicação de princípios e técnicas de Lean Manufacturing para melhoria do desempenho de linhas de montagem

Dissertação de mestrado integrado em Engenharia e Gestão Industrial

Motivating techniques within Irish and American manufacturing and service companies in the Northwest of Ireland

In today’s world, many companies are concentrating on both their technology and human resources to provide them with their competitive advantage. Hence, understanding what motivates people is particularly important for managers in order to develop and sustain a competitive edge. As a result, numerous theories have been advanced to help our understanding of the subject matter and from these theories many motivational methods have evolved to enhance motivation within the workplace. In addition, research has been conducted on the various types of motivational techniques utilised by companies within Ireland. However, very little research has been completed within specific geographical regions in Ireland concerning the types of motivational techniques implemented at different job levels and their impact on employees work performance. Thus the objective of this research was to identify the motivational techniques utilised at different job levels within large manufacturing and service companies in the Northwest of Ireland and examine how these techniques influence the performance levels of employees. Furthermore, the study examined if these companies have changed from traditional ways of motivating employees to newer techniques. The research methodologies used to undertake the research included interviews with the HR managers and questionnaires completed by different employees at various job levels within the participating companies. Overall the conclusions were varied. Many different types of motivation techniques were found within the study’s participating companies. Irish companies are improving their motivational techniques, however most of these techniques are only used within higher job levels. In contrast to their American counterparts, a variety of motivational techniques are utilised and implemented at all job levels. On a more positive note, the majority of these motivational techniques do increase performance levels at all job levels. From the extensive primary and secondary research conducted, the thesis concludes by offering a number of recommendations to assist companies in further development of their motivational techniques for all job levels. These recommendations hope to augment the success of companies through an enhanced motivated workforce.

Application of multivariate statistical process control to fuel cell manufacturing

Univariate statistical control charts, such as the Shewhart chart, do not satisfy the requirements for process monitoring on a high volume automated fuel cell manufacturing line. This is because of the number of variables that require monitoring. The risk of elevated false alarms, due to the nature of the process being high volume, can present problems if univariate methods are used. Multivariate statistical methods are discussed as an alternative for process monitoring and control. The research presented is conducted on a manufacturing line which evaluates the performance of a fuel cell. It has three stages of production assembly that contribute to the final end product performance. The product performance is assessed by power and energy measurements, taken at various time points throughout the discharge testing of the fuel cell. The literature review performed on these multivariate techniques are evaluated using individual and batch observations. Modern techniques using multivariate control charts on Hotellings T2 are compared to other multivariate methods, such as Principal Components Analysis (PCA). The latter, PCA, was identified as the most suitable method. Control charts such as, scores, T2 and DModX charts, are constructed from the PCA model. Diagnostic procedures, using Contribution plots, for out of control points that are detected using these control charts, are also discussed. These plots enable the investigator to perform root cause analysis. Multivariate batch techniques are compared to individual observations typically seen on continuous processes. Recommendations, for the introduction of multivariate techniques that would be appropriate for most high volume processes, are also covered.

Start-up conditions and the performance of women – and men- controlled businesses in manufacturating industries

Recent research on the economic performance of women-controlled firms suggests that their underperformance may not result from differences in the managerial ability of women as compared to men, but it can be the result of different levels of start-up resources. Using accounting data, this paper examines the effects that selected start-up conditions have on the economic performance observed in a sample of 4450 Spanish manufacturing firms. The results indicate significant differences regarding the initial conditions, showing lower levels of assets and number of employees what have implications on the economic performance of women-controlled firms.

Like milk or wine: Does firm performance improve with age?

Our empirical literature review shows that little is known about how firm performance changes with age, presumably because of the paucity of data on firm age. For Spanish manufacturing firms, we analyse the firm performance related to firm age between 1998 and 2006. We find evidence that firms improve with age, because ageing firms are observed to have steadily increasing levels of productivity, higher profits, larger size, lower debt ratios, and higher equity ratios. Furthermore, older firms are better able to convert sales growth into subsequent growth of profits and productivity. On the other hand, we also found evidence that firm performance deteriorates with age. Older firms have lower expected growth rates of sales, profits and productivity, they have lower profitability levels (when other variables such as size are controlled for), and also that they appear to be less capable to convert employment growth into growth of sales, profits and productivity.

Like milk or wine: Does firm performance improve with age?

Our empirical literature review shows that little is known about how firm performance changes with age, presumably because of the paucity of data on firm age. For Spanish manufacturing firms, we analyse the firm performance related to firm age between 1998 and 2006. We find evidence that firms improve with age, because ageing firms are observed to have steadily increasing levels of productivity, higher profits, larger size, lower debt ratios, and higher equity ratios. Furthermore, older firms are better able to convert sales growth into subsequent growth of profits and productivity. On the other hand, we also found evidence that firm performance deteriorates with age. Older firms have lower expected growth rates of sales, profits and productivity, they have lower profitability levels (when other variables such as size are controlled for), and also that they appear to be less capable to convert employment growth into growth of sales, profits and productivity. Keywords: firm age, firm growth, LAD, financial structure, vector autoregression JEL CODES: L25, L20

Impact of Ownership Structure on the Performance of China’s Feed Mill Sector, April 2005

In the decade of the 1990s, China’s feed sector became increasingly privatized, more feed mills opened, and the scale of operation expanded. Capacity utilization remained low and multi-ministerial supervision was still prevalent, but the feed mill sector showed a positive performance overall, posting a growth rate of 11 percent per year. Profit margin over sales was within allowable rates set by the government of China at 3 to 5 percent. Financial efficiency improved, with a 20 percent quicker turnover of working capital. Average technical efficiency was 0.805, as more efficient feed mills increasingly gained production shares. This study finds evidence that the increasing privatization explains the improved performance of the commercial feed mill sector. The drivers that shaped the feed mill sector in the 1990s have changed with China’s accession to the World Trade Organization. With the new policy regime in place, the study foresees that, assuming an adequate supply of soy meal and an excess capacity in the feed mill sector, it is likely that China will allow corn imports up to the tariff rate quota (TRQ) of 7.2 mmt since the in-quota rate is very low at 1 percent. However, when the TRQ is exceeded, the import duty jumps to a prohibitive out-quota rate of 65 percent. With an import duty for meat of only 10 to 12 percent, China would have a strong incentive to import meat products directly rather than bringing in expensive corn to produce meat domestically. This would be further reinforced if structural transformation in the swine sector would narrow the cost differential between domestic and imported pork.

Supplier Evaluation on the Standard Material and Component Markets in the Electronic Manufacturing Equipment Industry

Työn tavoitteena oli arvioida ja selvittää toimittajasuhteeseen vaikuttavia tekijöitä JOT Automation Group Oyj.n ja sen alihankkijoiden välisessä yhteistyössä ja muodostaa yrityksen kilpailukykyä parantava toimittaja-arviointiprosessi. Työssä keskityttiin tarkastelemaan yleisillä materiaali- ja komponenttimarkkinoilla toimivia toimittajia elektroniikkateollisuuden tuotantojärjestelmien valmistuksessa. Ensin tutustuttiin toimittajasuhdetta ja sen arviointia käsitelleeseen kirjallisuuteen. Teorian tueksi tehtiin haastatteluja ja kartoitettiin ensisijaisia tarpeita ja tavoitteita arviointiprosessille. Valmis prosessi testattiin käytännössä kahden eri case-esimerkin avulla. Prosessista muodostui kahteen eri työkaluun jakautunut kokonaisuus, joista auditointi arvioi toimittajan kyvykkyyttä vastatta sille asetettuihin vaatimuksiin. Toimittajan suorituskyvyn mittaaminen puolestaan testaa ja vertaa jatkuvasti toiminnan todellista tasoa auditoinnissa saatuihin tuloksiin. Työ sisältää selvityksen ja ohjeistuksen toimittaja-arviointiprosessin käytöstä. Prosessin käyttö alentaa toimittajaan kohdistuvaa materiaalien saatavuuteen ja hankintaan liittyviä riskejä. Esimerkeistä saadut kokemukset osoittivat, että prosessin avulla päästään pureutumaan tärkeisiin ydinalueisiin ja kehittämään niitä sekä toimittajalle, että ostajayritykselle edullisella tavalla. Toimittaja-arviointiprosessista kehittyy toimintatapa yrityksen ja sen toimittajan välisen suhteen ylläpitämiseksi.

World Class Manufacturing (WCM) aineettoman pääoman johtamisen työkaluna

Tämän kvalitatiivisen tutkimuksen tavoitteena on tarkastella jatkuvan pa-rantamisen työkalun, WCM:n, roolia aineettoman pääoman johtajana. Tutkimuksen teoreettisessa osassa selvitetään aineettoman pääoman eri muotoja; inhimillistä, suhde- ja rakennepääomaa. Lisäksi tutkitaan WCM:n ideologiaa, sen käyttöönottoa ja eri osa-alueita. Teoriaosan lopussa selvite-tään WCM:n ja aineettoman pääoman yhteyttä toisiinsa ja niiden vaikutusta suorituskykyyn. Teoriaa tukemaan tehtiin empiirinen tutkimus case -organisaatiossa haastattelemalla organisaation toimihenkilöitä sekä työntekijöitä. Empiirisen tutkimuksen tavoitteena oli selvittää case –organisaation jatkuvan parantamisen mallin kehitystarpeita WCM:n ja inhimillisen pääoman näkö-kulmasta. Tutkimustulokset osoittivat, että WCM:llä voidaan johtaa aineettoman pää-oman eri muotoja – saaden siten myös suorituskykyä paremmaksi.

Evidence on the role of ownership structure on firms' innovative performance

Based on the Knowledge Production Function framework given by Griliches -1979-, we slightly modify it so that the innovative output depends upon a set of factors related to the firm internal characteristics and are influenced by the environment. Specifically, regarding the firm internal determinants the effect of the concentration of the ownership, the composition of the boards of directors and the effect of the nature of the ownership (foreign and public) are analyzed. Additionally, in order to capture the determinants of the environment in which the firm operates other variables concerning the internationalization of market, the agglomeration economies and the regional knowledge externalities are also considered. In order to assess the impact of these determinants on the number of patents and models of use awarded by the firm, the discreteness of the latter variable has to be taken into account. We apply Poisson and Negative Binomial models for a more comprehensive evaluation of the hypothesis in a panel of Spanish manufacturing firms. The results show patenting activity is positively favoured by being located in an environment with a high innovative activity, due to the existence of knowledge spillovers and agglomeration economies.