The DRAMA methodology for analysing strategy and its links with production system design

This paper describes a methodology: 'decision rules for analyzing manufacturing activities', which is designed to be a practical system of enquiry linking a strategic analysis to the design of production systems. The paper describes the development of the system, an industry specific design methodology, into DRAMA II which is a model that serves as an analytical tool for studying decision processes and implementation of production systems.

Towards an operations strategy for product-centric servitization

Purpose – This paper aims to present a framework that will help manufacturing firms to configure their internal production and support operations to enable effective and efficient delivery of products and their closely associated services. Design/methodology/approach – First, the key definitions and literature sources directly associated with servitization of manufacturing are established. Then, a theoretical framework that categorises the key characteristics of a manufacturer's operations strategy is developed and this is populated using both evidence from the extant literature and empirical data. Findings – The framework captures a set of operations principles, structures and processes that can guide a manufacturer in the delivery of product-centric servitized offering. These are illustrated and contrasted against operations that deliver purely product (production operations) and those which deliver purely services (services operations). Research limitations/implications – The work is based on a review of the literature supported by data collected from an exploratory case study. Whilst it provides an essential platform, further research will be needed to validate the framework. Originality/value – The principal contribution of this paper is a framework that captures the key characteristics of operations for product-centric servitized manufacture.

An examination of the appropriateness of the contemporary strategic management models for the Greek small manufacturing enterprises

The starting point of the project was the observation that strategic management is absent in small businesses. The first objective of the project was to examine the reasons causing this situation in Greece, the second one, to examine the appropriateness of the contemporary models of strategic planning for the Greek S.M.E.s, and the third to examine the appropriateness of the alternative approaches to strategic management for the Greek S.M.E.s. The term appropriateness includes (a) the ability of managers to use the models and (b) the ability of the models to assist the managers. The results of the research indicate that none of the two above conditions exists, hence, it is suggested that the contemporary models of strategic management are inappropriate for the Greek S.M.E.s. Many previous research projects on the topic suggest that since the strategic decision making process in S.M.E.s is informal, the whole process is absent or ineffective. Current trends in S.M.E.s' strategic management do not consider the informality of the strategic decision making process as a kind of managerial illness, but as a managerial characteristic. The use of sophisticated data collection and analytical methods does not indicate successful strategic decisions, but it indicates the method large firms use to manage their strategy. According to the literature review, the S.M.E.s' managers avoid the use of the contemporary models of strategic management, because they do not have the knowledge, the resources or the time. Another thesis, expressed by some firms' specialists, suggests that small firms are different from large ones, hence their practice of strategic management should not follow the large firm's prototypes.

Manufacturing organisation in developing countries with particular reference to Iraq

Industrially developed countries are able to absorb modern techniques of science and technology quite readily; this is not the case for less-developed countries. Attempts made by developing countries have been ineffective due to factors not readily admitted. This thesis highlights the areas that need to be developed by under-developed countries, and covers economic, scientific and technological, and social aspects as well as technology transfer. Economic areas considered acknowledge that within any one country there should be proper procedures for planning economic and industrial projects (plant design) supported by efficient economic development strategy. Scientific and technological factors considered include the major areas that need to be developed in order to produce and/or deal with scientific and technological issues for the interest of the national development. Technology transfer areas considered include the necessity of building up a national body (system) responsible for dealing with activities and tasks of transferring foreign-made technology so that it can be employed effectively within the environment of the country. Social factors considered include the need to develop human resources which can be employed efficiently into the whole process of development, and particularly for the above proposed systems. Education and training are the major elements that ought to be tackled to produce skilled manpower and to overcome the social and cultural values and traditions that are inherited by the society. This thesis highlights the above areas in an attempt to plan and organise the development of science and technology, and their implementation into the development as a whole. Whilst recognising the problems of creating this sort of development in developing countries, the author considers the benefits to be obtained are much greater in the long run.

Product innovation in a medium size mature manufacturing company

This thesis is concerned with the management of product innovation inside the medium size, mature, manufacturing company. An academic perspective of innovation is integrated with an account of direct participation acquired over a two year period. The emergent synthesis provides fresh insight into some of the problems associated with producing and sustaining innovation. Product innovation is a very complex activity, and it presents particular difficulties for mature industry. However, the ability to innovate is fundamental to a company's continued survival. Three aspects of product innovation are examined in detail. Firstly, is the requirement to separate innovation activity from the on-going business interests; dependency between the degree of separation and novelty is supported. Secondly, a simple sequential model of the innovation process is tested and shown to be of considerable practical value. Thirdly a relationship is established between the age of the recipient market and the type of innovation to be found in that market All three aspects are found to have important implications for management in their pursuit of innovation. Management deficiencies which inhibited the successful resolution of innovation-linked problems are described and solutions which stress the need for commitment and coherency are proposed. The long existing management structure in the mature company which mitigates against successful and continuing innovation are examined in detail and a strategy is evolved which uses the intrinsic strengths of the mature company to promote innovation of a kind compatible with success in the market. A set of guidelines of practical value is presented for those managers wishing to pursue, and sustain, product innovation in the medium size mature company.

A study of the impact of lean on UK manufacturing organisations that view it as a philosophy

There were three principal research aims: primarily, Lean is and always should be regarded as a business model as depicted by Toyota who is dedicated towards finding better ways of producing cars; consequently an investigation of whether organisations embracing Lean as a philosophy were indeed more triumphant. An adapted balanced scorecard was used which embraced strategic, operation and indices focused towards the future prospects of an organisation. Secondly, it was obligatory to explicitly and precisely determine whether an organisation espoused Lean as a philosophy as opposed to another process or strategy. Thirdly, since Lean has to be envisaged as a never-ending journey; it was important to map out the Lean journey and to be able to categorize the juncture an organisation occupies at any particular phase of its overall implementation. This affords an opportunity to advise an organisation of specific requirements it needs to satisfy should it wish to embrace Lean as a philosophy. The methodological approach focused on the effective deployment of survey questionnaires in sixty-eight organisations and seven extensive case studies in manufacturing organisations of varying sizes. The CIMA organisational classification, the Puttick grid and the Product-Process matrix were used to analyse the range of organisations used in this investigation. Whilst there was a requirement to investigate whether Lean indeed equates to success, pertinent performance measurement was considered decisive; the DMP Model (Maltz et al., 2003) was modified to perform this role. An unremitting theme both in literature concerning the implementation of Lean and in the research evolves around the notion of corporate cultures. Its relevance is explored further within the analysis. In accepting the premise that Lean incorporates a journey, it was fundamental to identify the voyage. Prevalent frameworks are deficient in identifying the sustainability and ideological facets of Lean. Consequently, an extensive Lean audit was developed and piloted in twenty disparate organisations.

Servitization of manufacturing

The servicisation agenda is arguably one of the most important facing western manufacturers. In a world of severe international competition, it can be the basis of distinct competitive advantage, and a means to differentiate a company's products from goods produced in low cost economies. The concept of Product Service Systems (PSS) is, in particular, a special case of servicisation. With PSS, the market proposition is designed as a system that exploits synergies between products and services while, at the same time, seeks to reduce the economic and environmental costs of delivery. Although key to sustaining western manufacturing operations, major issues arise with design and management of engineering, manufacturing and supply chain activities for successful implementation of such a service-led competitive strategy. This session includes presentations which examine the opportunities and challenges associated with servicisation in more detail.

Realising competitive advantage:bicycle manufacture - manufacturing engineering and management

Students at Cranfield Manufacturing Systems Centre helped Brompton Bikes formulate a strategy to meet rapid sales growth. The students took up Operations Excellence MSc, a two-year part-time programme based on the Cranfield MSc in Engineering and Management of Manufacturing Systems, include the Realising Competitive Manufacture module, which is set out to consolidate and embed the knowledge and skills developed throughout the two-year programme. Guided by StratNav process, the students analysed the product families of Brompton, established the basis on which they compete in the market place, and then benchmarked against key competitors. The top five developments identified to be needed by Brompton are: the formation of group technology cells, creation of a robotic brazing facility, and training and recruitment initiatives for production staff.

Key success factors when implementing strategic manufacturing initiatives

Purpose – This paper reports the study of key success factors (KSFs) in the project management of the implementation of strategic manufacturing initiatives (SMIs). Design/methodology/approach – In order to gather the experience and knowledge of many industries, from different geographic locations, in a broad range of types and sizes of SMIs, a questionnaire-based survey of practitioners worldwide was selected as the most appropriate research method among those available. Findings – The identification of those tasks and activities that must be done well in order to succeed in the implementation of a SMI in practice. Practical implications – Practitioners focusing their attention on the KSFs identified are more likely to succeed. Once these factors have been identified, the value of benchmarking project management methodologies then comes from drawing attention to those tasks that are key to the success of the implementation of SMIs. Originality/value – The paper presents new thinking by bringing project management into the operations strategy implementation literature as an important mediating factor for success. In this context the factors that are required for successful implementation are identified.

The use of models and methods for strategic planning:towards an holistic view of strategy

Formulating manufacturing business strategy is often fragmented in as much as current tools address upstream and downstream vertical integration with product integration, or more recently, product and infrastructure integration. Rarely do tools address all of these dimensions in an holistic manner. The research described in this paper is that undertaken in the MAPSTRAT project: a scoping study with industrial partners, aiming to satisfy this business need. A comprehensive literature study is described which is contextualized using six case studies. The paper stresses the importance of ‘joined-up thinking’ and outlines plans for an appropriate tool that is under development.

Strategic sourcing:a combined QFD and AHP approach in manufacturing

Purpose – This paper aims to develop an integrated analytical approach, combining quality function deployment (QFD) and analytic hierarchy process (AHP) approach, to enhance the effectiveness of sourcing decisions. Design/methodology/approach – In the approach, QFD is used to translate the company stakeholder requirements into multiple evaluating factors for supplier selection, which are used to benchmark the suppliers. AHP is used to determine the importance of evaluating factors and preference of each supplier with respect to each selection criterion. Findings – The effectiveness of the proposed approach is demonstrated by applying it to a UK-based automobile manufacturing company. With QFD, the evaluating factors are related to the strategic intent of the company through the involvement of concerned stakeholders. This ensures successful strategic sourcing. The application of AHP ensures consistent supplier performance measurement using benchmarking approach. Research limitations/implications – The proposed integrated approach can be principally adopted in other decision-making scenarios for effective management of the supply chain. Practical implications – The proposed integrated approach can be used as a group-based decision support system for supplier selection, in which all relevant stakeholders are involved to identify various quantitative and qualitative evaluating criteria, and their importance. Originality/value – Various approaches that can deal with multiple and conflicting criteria have been adopted for the supplier selection. However, they fail to consider the impact of business objectives and the requirements of company stakeholders in the identification of evaluating criteria for strategic supplier selection. The proposed integrated approach outranks the conventional approaches to supplier selection and supplier performance measurement because the sourcing strategy and supplier selection are derived from the corporate/business strategy.

The servitization of manufacturing:a review of literature and reflection on future challenges

Purpose – The purpose of this paper is to report the state-of-the-art of servitization by presenting a clinical review of literature currently available on the topic. The paper aims to define the servitization concept, report on its origin, features and drivers and give examples of its adoption along with future research challenges. Design/methodology/approach – In determining the scope of this study, the focus is on articles that are central and relevant to servitization within a wider manufacturing context. The methodology consists of identifying relevant publication databases, searching these using a wide range of key words and phrases associated with servitization, and then fully reviewing each article in turn. The key findings and their implications for research are all described. Findings – Servitization is the innovation of an organisation's capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use. There are a diverse range of servitization examples in the literature. These tend to emphasize the potential to maintain revenue streams and improve profitability. Practical implications – Servitization does not represent a panacea for manufactures. However, it is a concept of significant potential value, providing routes for companies to move up the value chain and exploit higher value business activities. There is little work to date that can be used to help practitioners. Originality/value – This paper provides a useful review of servitization and a platform on which to base more in-depth research into the broader topic of service-led competitive strategy by drawing on the work from other related research communities.

Understanding manufacturing companies' environmental decision making structures

This paper provides an understanding of the current environmental decision structures within companies in the manufacturing sector. Through case study research, we explored the complexity, robustness and decision making processes companies were using in order to cope with ever increasing environmental pressures and choice of environmental technologies. Our research included organisations in UK, Thailand, and Germany. Our research strategy was case study composed of different research methods, namely: focus group, interviews and environmental report analysis. The research methods and their data collection instruments also varied according to the access we had. Our unity of analysis was decision making teams and the scope of our investigation included product development, environment & safety, manufacturing, and supply chain management. This study finds that environmental decision making have been gaining importance over the time as well as complexity when it is starting to move from manufacturing to non,manufacturing activities. Most companies do not have a formal structure to take environmental decisions; hence, they follow a similar path of other corporate decisions, being affected by organizational structures besides the technical competence of the teams. We believe our results will help improving structures in both beginners and leaders teams for environmental decision making across the different departments.

Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Strategic sourcing has increased in importance in recent years, and now plays an important role in companies’ planning. The current volatility in supply markets means companies face multiple challenges involving lock-in situations, supplier bankruptcies or supply security issues. In addition, their exposure can increase due to natural disasters, as witnessed recently in the form of bird flu, volcanic ash and tsunamis. Therefore, the primary focus of this study is risk management in the context of strategic sourcing. The study presents a literature review on sourcing based on the 15 years from 1998–2012, and considers 131 academic articles. The literature describes strategic sourcing as a strategic, holistic process in managing supplier relationships, with a long-term focus on adding value to the company and realising competitive advantage. Few studies discovered the real risk impact and status of risk management in strategic sourcing, and evaluation across countries and industries was limited, with the construction sector particularly under-researched. This methodology is founded on a qualitative study of twenty cases across Ger-many and the United Kingdom from the construction sector and electronics manufacturing industries. While considering risk management in the context of strategic sourcing, the thesis takes into account six dimensions that cover trends in strategic sourcing, theoretical and practical sourcing models, risk management, supply and demand management, critical success factors and the strategic supplier evaluation. The study contributes in several ways. First, recent trends are traced and future needs identified across the research dimensions of countries, industries and companies. Second, it evaluates critical success factors in contemporary strategic sourcing. Third, it explores the application of theoretical and practical sourcing models in terms of effectiveness and sustainability. Fourth, based on the case study findings, a risk-oriented strategic sourcing framework and a model for strategic sourcing are developed. These are based on the validation of contemporary requirements and a critical evaluation of the existing situation. It contemplates the empirical findings and leads to a structured process to manage risk in strategic sourcing. The risk-oriented framework considers areas such as trends, corporate and sourcing strategy, critical success factors, strategic supplier selection criteria, risk assessment, reporting, strategy alignment and reporting. The proposed model highlights the essential dimensions in strategic sourcing and guides us to a new definition of strategic sourcing supported by this empirical study.