Lina Stålberg and Anders Fundin
The purpose of this paper is to examine how holistic improvement work can be organized and what challenges can be observed in the process of adopting a holistic perspective on…
Abstract
Purpose
The purpose of this paper is to examine how holistic improvement work can be organized and what challenges can be observed in the process of adopting a holistic perspective on production system improvement.
Design/methodology/approach
A qualitative case study and a questionnaire have been carried out. Data for the case study has been collected through semi-structured interviews, archived documents and participatory observations. The questionnaire was done in order to increase the generalizability of the findings from the case study and further validate the conclusions.
Findings
The improvement work at the case company is organized as a continuous improvement approach in a Lean Production system in the form of a company-specific production system (XPS), in which two other improvement approaches are incorporated. Some of the identified challenges are: the establishment of a holistic perspective on improvement opportunities; the development of a process to update the production strategy; the continuous update of the Operational Management System during the XPS implementation; aggregating measures for the improvement work and measuring the effect of improvement work.
Research limitations/implications
As the current case study is limited to one case company, future research is interested in expanding to other production systems contexts for further validation.
Originality/value
The present study offers an increased understanding of the integration difficulties of improvement work that many production companies face regarding operational effectiveness, and based on the findings, some implications for management are presented.
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Torbjørn H. Netland and Arild Aspelund
In order to improve competitiveness on a global scale, multinational enterprises increasingly develop a company-specific production system (XPS) and deploy it in their worldwide…
Abstract
Purpose
In order to improve competitiveness on a global scale, multinational enterprises increasingly develop a company-specific production system (XPS) and deploy it in their worldwide operations. An XPS is synonymous with a tailored corporate-wide improvement programme. The purpose of this paper is to explore the circumstances under which an XPS can provide a competitive advantage.
Design/methodology/approach
The paper uses an explorative case study methodology to investigate the link between the establishment of an XPS and competitive advantage. Specifically, the paper investigates the part of the Volvo Group's globally implemented Volvo production system (VPS) that aim to improve the manufacturing processes worldwide. Due to its historical trajectories, Volvo constitutes a unique case for studying the trend and effects of XPS. The resource-based view of the firm provides the theoretical foundation for the analysis.
Findings
The paper concludes with four research propositions. P1: In industries with widespread XPS implementation, an XPS is a necessary resource for achieving competitive parity; P2a: Early-starters get an instant temporary competitive advantage; P2b: Late-starters can achieve a temporary competitive advantage if they implement an XPS at a faster speed than competitors; and P3: An XPS can provide a sustainable competitive advantage if it has a superior fit with other path-dependent resources in the organisation.
Research limitations/implications
The paper proposes an updated VRIO model, which is better suited for understanding the relations between an XPS and competitive advantage. The major limitation of the study is the single-case design, which complicates generalisation from the VPS to an XPS of the propositions set forward.
Originality/value
Despite the significant trend in modern operations management, XPSs have received remarkably limited attention from academia except for the Toyota Production System. Presumably, this is the first paper to discuss the recent trend of XPS and its contribution to competitive advantage.
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Torbjørn Hekneby, Jonas A. Ingvaldsen and Jos Benders
Companies create company-specific production systems (XPS) by tailoring generic concepts to fit their unique situation. However, little is known about how an XPS is created. This…
Abstract
Purpose
Companies create company-specific production systems (XPS) by tailoring generic concepts to fit their unique situation. However, little is known about how an XPS is created. This paper aims to provide insights into the creation of an XPS.
Design/methodology/approach
A retrospective case study was conducted in a Norwegian multinational company over the period 1991–2006, using archival data and interviews.
Findings
The development of the XPS did not start with a master plan. Instead, dispersed existing initiatives were built upon, along with an external search for novel ideas. Widespread experimentation took place, only later to be combined into a coherent approach. Once established, the XPS was disseminated internally and further refined. The CEO orchestrated the experimentation by facilitating the adaptation and combination of different concepts and by allocating resources to institutionalize the XPS in the global network.
Originality/value
This paper is the first to study how an XPS is created. This study contributes with novel empirical insights, and it highlights the role of top management in facilitating experimentation and step-by-step organizational learning.
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Danilo Felipe Silva de Lima, Cláudia Fabiana Gohr, Luciano Costa Santos and José Márcio de Castro
This study aims to analyze the knowledge transfer process for implementing a company-specific production system (XPS) from a subsidiary of a multinational corporation (MNC) to its…
Abstract
Purpose
This study aims to analyze the knowledge transfer process for implementing a company-specific production system (XPS) from a subsidiary of a multinational corporation (MNC) to its local suppliers.
Design/methodology/approach
A case study approach was adopted and applied in an automotive supply chain. Empirical data were collected from interviews, observations and internal documents.
Findings
The literature shows that the successful XPS implementation depends on the ability to transfer XPS knowledge; the motivation of the source unit to share XPS knowledge; the value and nature of knowledge embedded in XPS; the effectiveness of individual, social and organizational transfer mechanisms; the motivation and absorptive capacity of the target unit and, the organizational, social and relational contexts in which XPS is transferred. Based on the research findings, we develop 12 propositions and presented them in a framework.
Research limitations/implications
This paper expands and enriches the literature on the knowledge transfer process of XPS. The proposed framework establishes theoretical propositions and associations raised by qualitative analysis. However, these propositions are potentially testable on a larger scale for broader generalization.
Practical implications
Managers can recognize critical factors and relationships needed to improve the XPS implementation from an MNC subsidiary to its local suppliers.
Originality/value
The proposed framework provides a scheme to capture the essential critical factors affecting a successful XPS implementation between MNC subsidiaries and local suppliers. Moreover, we found relevant associations between pairs of critical factors that were not identified in the literature.
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Torbjørn Hekneby and Daryl John Powell
This study aims to investigate the impact of a company-specific lean program (a so-called company-specific production system [XPS]) on the company’s financial performance. This…
Abstract
Purpose
This study aims to investigate the impact of a company-specific lean program (a so-called company-specific production system [XPS]) on the company’s financial performance. This study analyzes data from the implementation of XPS in multiple plants of a multinational corporation and examines the results through an organizational learning lens.
Design/methodology/approach
This study adopts a longitudinal single-case design to investigate a Norwegian multinational company in the process industry, producing silicon for the global market. The company has developed, implemented and institutionalized its own XPS since 1991. The program has directly contributed to extensive cost reduction and significantly strengthened the organization’s competitive position.
Findings
The findings of this study show a link between organizational learning and the improvement of financial results in the organization. This study presents a sand cone model that illustrates how the development and deployment of an XPS through individual- and orchestrated learning subsequently created a common platform for institutionalized learning within and across the multinational organization. This organizational learning capability managed to tie the company’s continuous improvement efforts directly to the improvement of cost levels throughout the value chain.
Practical implications
The practical implications of this work are significant, as this study uncovers the importance for managers to consider both individual-, orchestrated- and institutionalized learning (within and across a multinational network) when designing and implementing XPS to drive the improvement of an organization’s financial performance.
Originality/value
Documenting the financial impact of such programs is a common challenge. Therefore, the insights presented in this research are of value to both researchers and practitioners, in particular, managers and executives in large multinational organizations.
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Sara Linderson, John Lars Anders Larsson, Seyoum Eshetu Birkie and Monica Bellgran
This study explores how industrial production companies adjust implementation strategies to deliver value with their company-specific production system (XPS) in a multi-site…
Abstract
Purpose
This study explores how industrial production companies adjust implementation strategies to deliver value with their company-specific production system (XPS) in a multi-site setting. Implementing an XPS is part of operations management and is supposed to mobilise employees resource-efficiently to increase operational performance.
Design/methodology/approach
Based on a multiple-case study, this study qualitatively explores the patterns of implementation decisions within and between five multi-site production companies. Conclusions were drawn on a mix of timely and retrospective data gathered through individual interviews with senior managers and joint workshops where they interacted and shared experiences.
Findings
This study identifies the fact that companies respond differently to non-unique implementation challenges, constituting various decision patterns when implementing their XPS. This paper identifies four implementation strategies (Education, Tool, Pragmatic and Culture Strategy) that explain various implementation setups. More experienced companies frequently shifted between strategies to return to previously de-prioritised implementation aspects.
Originality/value
This paper offers a dynamic model for XPS implementation in contrast to a simplified tool–system–culture sequence in literature today. Companies that deliberately shift implementation strategy by understanding the benefits and challenges of their decisions are more likely to keep momentum in the XPS implementation.
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Christer Osterman and Anders Fundin
Many organizations report difficulties in integrating lean. A possible cause could be that methods and tools do not support each other. The purpose of this research is, therefore…
Abstract
Purpose
Many organizations report difficulties in integrating lean. A possible cause could be that methods and tools do not support each other. The purpose of this research is, therefore, to explore the nature of the connections within the system. Understanding these provides practitioners with a better way of defining their system and offers researchers a conceptual model with a new way of understanding a company-specific production system (XPS).
Design/methodology/approach
The study is designed as a multiple case study with three organizations and, in total, 25 lean experts serving as respondents.
Findings
The connections between the elements of an XPS act as a duality based on a problem–solution (P–S) relation. These are categorized according to complexity and can be mapped into a conceptual model, where the connections can be either symmetrical or asymmetrical.
Research limitations/implications
The results provide a method to analyze causes and effects in an XPS and a conceptual model. Given the limitations of a multiple case study, future research should explore connections depending on a broader variety of contextual conditions.
Practical implications
The results present a way to avoid a cherry-picking problem through understanding connections between elements in an XPS. This provides a new way to understand the weaknesses of an XPS.
Originality/value
The research provides a new approach with insights on how to conduct research in lean production by facilitating how to understand and interpret connections between elements in a system.
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Torbjørn H. Netland and Ebly Sanchez
How can multinational companies become more productive on a global scale? The purpose of this paper is to investigate whether a production improvement programme can improve…
Abstract
Purpose
How can multinational companies become more productive on a global scale? The purpose of this paper is to investigate whether a production improvement programme can improve quality performance in a global network of factories. Specifically, the paper analyses the effects of the Volvo Group's production improvement programme on global quality performance.
Design/methodology/approach
The research approach is a case study of the Volvo Production System (VPS). The paper analyses the effects of the programme on global quality performance, using data from an implementation audit and a questionnaire survey. The paper triangulate the analysis with longitudinal quality performance data from three different plants.
Findings
The paper finds a significant and strong positive relationship between implementation of the VPS and improvements in both process quality and product quality. Hence, the paper suggests that tailored production improvement programmes have clear positive effects on global quality performance.
Research limitations/implications
As with all case studies, the paper should use caution when generalising beyond the specific case. However, the Volvo Group is a broad and diversified corporation, which mitigates this limitation.
Originality/value
While many studies have investigated the effect of production improvement programmes on performance, very few have looked at the effect of a corporate multi-plant programme. This study represents one of the first attempts to do so. The paper also provides a case description of the VPS that readers might find valuable in its own right.
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Lina Stålberg and Anders Fundin
The purpose of this paper is to understand how a continuous improvement (CI) approach like lean production (LP) integration is affected by dynamic conditions and to propose how LP…
Abstract
Purpose
The purpose of this paper is to understand how a continuous improvement (CI) approach like lean production (LP) integration is affected by dynamic conditions and to propose how LP integration can be adaptable to dynamic conditions.
Design/methodology/approach
A longitudinal case study has been conducted in which data were collected through participative observations, observations, documents and an in-depth semi-structured interview.
Findings
The adaptability is related to the maturity level of the LP integration, where more mature organisations are better equipped to deal with the challenges occurring due to their learning and experimentation capabilities. The main problem is that the LP integration needs to be adapted, like compromising with just-in-time. This creates challenges to more immature organisations; they do not seem to be able to adapt the LP integration since the skills are lacking.
Research limitations/implications
The research limitations are associated with the research design and therefore might limit generalisation of the context studied.
Practical implications
The management needs to stay focused on the LP integration to continue building CI capability. There is a need to adapt the LP concept, which includes assessing how proposed changes and the LP concept interact in order to make them reinforce each other. This involves creating guidelines concerning adaptation and facilitating a transition from mainly single-loop learning to double-loop learning.
Originality/value
This paper contributes by describing challenges that have an impact on LP integration and related organisational adaptability under dynamic conditions.
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Peter E. Johansson, Jessica Bruch, Koteshwar Chirumalla, Christer Osterman and Lina Stålberg
The purpose of this paper is to advance the understanding of paradoxes, underlying tensions and potential management strategies when integrating digital technologies into existing…
Abstract
Purpose
The purpose of this paper is to advance the understanding of paradoxes, underlying tensions and potential management strategies when integrating digital technologies into existing lean-based production systems (LPSs), with the aim of achieving synergies and fostering the development of production systems.
Design/methodology/approach
This study adopts a collaborative management research (CMR) approach to identify patterns of organisational tensions and paradoxes and explore management strategies to overcome them. The data were collected through interviews and focus group interviews with experts on lean and/or digital technologies from the companies, from documents and from workshops with the in-case researchers.
Findings
The findings of this paper provide insights into the salient organisational paradoxes embraced in the integration of digital technologies in LPS by identifying different aspects of the performing, organising, learning and belonging paradoxes. Furthermore, the findings demonstrate the intricacies and relatedness between different paradoxes and their resolutions, and more specifically, how a resolution strategy adopted to manage one paradox might unintentionally generate new tensions. This, in turn, calls for either re-contextualising actions to counteract the drift or the adoption of new resolution strategies.
Originality/value
This paper adds perspective to operations management (OM) research through the use of paradox theory, and we (1) provide a fine-grained perspective on why integration sometimes “fails” and label the forces of internal drift as mechanisms of imbalances and (2) provide detailed insights into how different management and resolution strategies are adopted, especially by identifying re-contextualising actions as a key to rebalancing organisational paradoxes in favour of the integration of digital technologies in LPSs.