W.W.A. Beelaerts van Blokland, M.A. Fiksiński, S.O.B. Amoa, S.C. Santema, G.‐J. van Silfhout and L. Maaskant
The traditional value chain has changed under the influence of globalisation, lean thinking and the value leverage towards suppliers in the supply chain. The leverage of value by…
Abstract
Purpose
The traditional value chain has changed under the influence of globalisation, lean thinking and the value leverage towards suppliers in the supply chain. The leverage of value by the focal original equipment manufacturer (OEM)‐company to the supply chain has caused the focal OEM‐company to transform into a large‐scale system integrator (LSSI). The LSSI was defined according to the Petrick's definition. Indicators that measure the value‐leverage by these LSSI companies have not been found in literature. The purpose of this paper is to describe indicators that measure value‐leverage and illustrates that LSSI companies in the aerospace industry have a value‐leverage capability, using these indicators.
Design/methodology/approach
The authors' main research question is: “How to measure value‐leverage by LSSIs in the aerospace industry?”. As value‐leverage indicators have not been studied before, a literature study was carried out to develop a set of indicators which were tested in a quantitative analysis, using secondary data from 41 aerospace companies. Second, the value‐leverage indicators were applied to the aircraft LSSIs. The industry samples consisted of the global companies in the aircraft OEM industry and the relevant financial and company data were collected from the companies' public financial data, spanning a time frame of 14 years (1996 to 2009). A case study was performed on large‐scale aircraft system integrators, as a sample of the aerospace OEM industry, to demonstrate the effects of value‐leverage by aircraft LSSI companies.
Findings
With the new indicators, this research shows value leverage of aerospace OEMs and aircraft LSSIs as a sub group of the sample. The related indicators showed a change in leverage over time, indicating the leverage capability of aerospace OEMs. More in‐depth analysis on aircraft LSSI companies showed that aircraft LSSI with high correlation on the value‐leverage variables are more in value balance compared with aircraft LSSI companies scoring lower on the variables.
Research limitations/implications
This research has been limited to the aerospace OEMs. Data from secondary (public) sources were used, such as financial reports over a period of 14 years. Further research is necessary to develop indicators for other sectors of industries, such as automotive, medical instruments and construction, as well as to further improve the understanding of the outcomes of this study.
Practical implications
The new indicators measure value‐leverage of aerospace OEMs in general and aircraft LSSI companies. These companies could be compared on their capability of value‐leverage. Management of these firms can use the indicators to further improve their capability of value‐leverage on the supply chain regarding co‐development and co‐production of aircraft and related systems.
Social implications
It is useful for the executive management of aircraft LSSIs to balance the value leverage of their companies regarding R&D, customer demand and supply chain based production.
Originality/value
The paper identifies indicators that measure the capability of the aerospace OEMs to leverage value on supply chains. The found indicators form a preliminary model, which contributes to the usage of theories on lean manufacturing, supply chain management, value networks and open innovation.
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Qinqin Zeng, Wouter Beelaerts van Blokland, Sicco Santema and Gabriel Lodewijks
The purpose of this paper is to develop an approach to measuring the performance of motor vehicle manufacturers (MVMs) from economic and environmental (E&E) perspectives.
Abstract
Purpose
The purpose of this paper is to develop an approach to measuring the performance of motor vehicle manufacturers (MVMs) from economic and environmental (E&E) perspectives.
Design/methodology/approach
Eight measures are identified for benchmarking the performance from E&E perspectives. A new company performance index IMVM is constructed to quantitatively generate the historical data of MVMs’ company performance. Autoregressive integrated moving average (ARIMA) models are built to generate the forecast data of the IMVM. The minimum Akaike information criteria value is used to identify the model of the best fit. Forecast accuracy of the ARIMA models is tested by the mean absolute percentage error.
Findings
The construction of the index IMVM is benchmarked against three frameworks by six benchmark metrics. The IMVM satisfies all of its applicable metrics while the three frameworks are incapable to satisfy their applicable metrics. Out of 15, 4 MVMs are excluded for benchmarking future performance due to their non-stationary time series data. Based on the forecast IMVM data, GM is the best performer among the 15 samples in the FY2018.
Originality/value
This research highlights the environmental perspective during vehicles’ production. The development of this approach is based on publicly available data and transparent about the methods it used. The data out of the approach can benefit stakeholders with insights by benchmarking the historical performance of MVMs as well as their future performance.
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Qinqin Zeng, Wouter Beelaerts van Blokland, Sicco Santema and Gabriel Lodewijks
Current literature presents limited measurement methods of quantifying manufacturers' performance with environmental concerns. The purpose of this paper is to construct a company…
Abstract
Purpose
Current literature presents limited measurement methods of quantifying manufacturers' performance with environmental concerns. The purpose of this paper is to construct a company performance index for benchmarking motor vehicle manufacturers (MVMs) with environmental concerns.
Design/methodology/approach
Methods of constructing the index include regression analysis, a modified linear method for normalizing variables and a geometric mean for aggregating variables into a single index IMVM (index for MVMs). A case study is conducted in 12 MVMs from 2008 to 2017. A sensitivity analysis with the simple additive weighting method is performed to analyze how different aggregation methods affect the final value. The index IMVM is assessed through a benchmark with three existing indices.
Findings
Three realistic considerations are identified from MVMs, based on which proper and transparent methods are chosen to construct the IMVM. The construction of the index IMVM has been assessed through a benchmark against the methodologies of three other indices. The results indicate that the new measurement is feasible and effective for MVMs to measure their company performance from an environmental perspective.
Practical implications
The construction of the index IMVM can support policymakers with accurate statistics for decision-making. As a response to current imperative climate policies, this paper raises awareness of CO2 emissions in vehicles' production. For statistical organizations and stakeholders in the investment world, this paper provides available and reliable statistics for trend analysis of different MVMs.
Originality/value
A new method is designed for constructing a company performance index for MVMs. Three environmental variables are identified based on literature, their environmental impact as well as their data availability from public documents. A ranking by manufacturer with environmental concerns is generated. This index can contribute with available statistics and useful insights toward decision-making.
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Thais Assis de Souza, Guilherme Alcântara Pinto, Luiz Guilherme Rodrigues Antunes and André Grützmann
Regarding the premises of open innovation (OI) in terms of knowledge sources, this paper aims to discuss how to manage the existing sources of knowledge in supply chains.
Abstract
Purpose
Regarding the premises of open innovation (OI) in terms of knowledge sources, this paper aims to discuss how to manage the existing sources of knowledge in supply chains.
Design/methodology/approach
An integrative review was developed focusing on studies related to supply chain and OI, seeking to understand the relationships between them, supporting the innovative discussion.
Findings
The SIPOC-OI was proposed as a tool to support the management of knowledge sources present in the supply chain, promoting efficiency to the company and improving its innovative capacity.
Research limitations/implications
The conceptual proposal should be empirically verified to understand the management tool's obstacles and benefits for a company's innovation performance. Additionally, it would be useful to understand the results of this proposal in the relationships between agents of the chain, as well as the direction (inbound, outbound or coupled). Additionally, relevant points were highlighted as future agendas.
Practical implications
The point of view based on OI treats the collaboration's aspects and its benefits to agents, which becomes an essential factor in improving the entire chain's integration and performance.
Originality/value
The analysis of the flow of knowledge in supply chains from an OI perspective is an innovation in theory. Besides, the multidisciplinary proposal is expressed in the framework developed as it is based on a tool from engineering. Supply chain competencies/mindset is important to develop OI as well as is the contrary – there is a mutual practical and theoretical relevance between the integration of the concepts.
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Donna Samuel, Pauline Found and Sharon J. Williams
The purpose of this paper is to take a critical, analytical approach to explore the growth and spread of Lean through the academic and practitioner community over the last 25…
Abstract
Purpose
The purpose of this paper is to take a critical, analytical approach to explore the growth and spread of Lean through the academic and practitioner community over the last 25 years to understand the impact of the book The Machine that Changed the World on management thinking.
Design/methodology/approach
A comprehensive and systematic review of the extant literature of lean was undertaken and analysed critically to observe patterns and trends that could explain the acceptance of Lean as an operations management philosophy. The review spans from 1987 to 2013. To enable us to effectively manage and understand the diffusion of this literature a database, the Lean Publications Database, was constructed. The number of publications has been adjusted to compensate for growth in the total number of articles published in the same period.
Findings
Lean has evolved to be one of the best-known, yet fiercely debated, process improvement methodologies. It emerged during a proliferation of such methodologies in the business and management literature. Lean has developed from a generic description of Toyota Production System (TPS) to a particular type of organisational and management intervention focused on best practice and process improvement methodologies.
Research limitations/implications
This paper provides the first comprehensive review of the Lean literature, from the perspective of Lean as the unit of analysis. It covers both sides of the academic debate and categorises the progression of Lean from its origins as a generic description of TPS to a movement that has changed management systems in many and diverse sectors.
Practical implications
This paper demonstrates how Lean research, application and thinking has evolved over 25 years from its origins in Japanese auto-manufacturing to a holistic value system that is applicable to all business sectors, both private and public.
Originality/value
In most empirical studies on Lean, the unit of analysis is the organisation. In this study, the unit of analysis is the Lean phenomenon itself. This paper examines the impact of The Machine that Changed the World on management thinking. In addition, it presents a step to developing an underpinning theory by linking Lean to the Theory of Swift, Even Flow. As such it is of interest to academics in the field of operations management and offers a contribution to knowledge. It is also likely to be of interest to policy makers. Considerable amounts of public money have been spent, and continue to be spent, on promoting Lean. Taxpayers and policymakers are likely to be interested in whether that expenditure is justifiable. 25 years of publications have been analysed to provide clarity around this popular approach to organisational improvement.
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Stephan J. de Jong and Wouter W.A. Beelaerts van Blokland
Implementation of lean manufacturing is currently performed in the production industry; however, for the airline maintenance service industry, it is still in its infancy…
Abstract
Purpose
Implementation of lean manufacturing is currently performed in the production industry; however, for the airline maintenance service industry, it is still in its infancy. Indicators such as work in process, cycle time, on-time performance and inventory are useful indicators to measure lean implementation; however, a financial economic perspective taking fixed assets into consideration is still missing. Hence, the purpose of this paper is to propose a method to measure lean implementation from a fixed asset perspective for this type of industry. With the indicators, continuous improvement scenarios can be explored by value stream discrete event simulation.
Design/methodology/approach
From literature, indicators regarding asset specificity to measure lean implementation are found. These indicators are analysed by a linear least square method to know if variables are interrelated to form a preliminary model. The indicators are tested by value stream-based discrete event simulation regarding continuous improvement scenarios.
Findings
With the new found lean transaction cost efficiency indicators, namely, turnover, gross margin and inventory pre-fixed asset (T/FA, GM/FA and I/FA, respectively), it is possible to measure operation performance from an asset specificity perspective under the influence of lean implementation. Secondly, the results of implementing continuous improvement scenarios are measured with the new indicators by a discrete event simulation.
Research limitations/implications
This research is limited to the airline maintenance, repair and overhaul (MRO) service industry regarding component repair. Further research is necessary to test the indicators regarding other airline MRO service companies and other sectors of complex service industries like health care.
Practical implications
The lean transaction cost efficiency model provides the capability for a maintenance service company to simulate the effects of process improvements on operation performance for service-based companies prior to implementation.
Social/implications
Simulation of a Greenfield process can involve employees with possible changes in processes. This approach supports the adoption of anticipated changes.
Originality/value
The found indicators form a preliminary model, which contributes to the usage and linkage of theories on lean manufacturing and transaction cost theory – asset specificity.
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Asmae El Jaouhari, Jabir Arif, Soumaya Fellaki, Mohamed Amejwal and Khaoula Azzouz
This study aims to address Industry 4.0 (I4.0) technologies that can improve the research and implementation of lean supply chain management (LSCM) and the enhanced LSCM subfields…
Abstract
Purpose
This study aims to address Industry 4.0 (I4.0) technologies that can improve the research and implementation of lean supply chain management (LSCM) and the enhanced LSCM subfields in I4.0 technologies.
Design/methodology/approach
The authors conducted a systematic literature review to detect, categorize and assess recent data, highlighting patterns and providing suggestions for potential research in this field, to investigate I4.0 literature and its effect on LSCM. The authors examined 79 published types of research from the Scopus database that were published between 2010 and 2021 and classified them into four LSCM fields: logistics, production, supply chain and marketing.
Findings
The authors can emphasize the fact that the literature on this topic is in progress, from early German academic research to the current creation of new effects around the world. The majority of the potential effects investigated were discovered to improve specific areas that ultimately enhance the practices of the four LSCM domains as well as performance outcomes. The authors were also able to assess the extent to which present and upcoming I4.0 technologies can improve LSCM research and implementation.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind. Although some research looked into various areas of I4.0 and LSCM topics, there has been no research specifically looking into the impact of I4.0 on LSCM. The originality of this study lies in the treatment of the main fields and sub-fields of LSCM, which can benefit from the technologies of I4.0. Academic scholars interested in the research topics may benefit from the findings of this study. Organizations in various industrial sectors, particularly manufacturing, where lean thinking is used, business professionals specialized in lean operations and supply chain management, along with anyone else who wants to learn more about the interrelationships between I4.0 and LSCM.
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Wouter W.A. Beelaerts van Blokland, Sicco C. Santema, Aimé Heene, Tim de Jong and Niek Elferink
Trends in the car and aircraft manufacturing industry showed an evolution in the configuration and management of the production network. For instance, the aerospace manufacturing…
Abstract
Trends in the car and aircraft manufacturing industry showed an evolution in the configuration and management of the production network. For instance, the aerospace manufacturing industry tended to be a closed system, competing on scale of production and focusing on maximization of own profit. Nowadays the automotive companies are developing open systems under the influence of globalization, outsourcing, and co-creation of value. Doing this with suppliers causes a shift of value from the focal firm to the supply chain, creating a value levering position for the so-called large-scale system integrator (LSSI). The leverage of value on suppliers introduces the value-leverage capability of the LSSI company. The capability of the LSSI to balance continuation, conception, and configuration is crucial for (long-term) profitability and competitive position. To express the value-leverage capabilities, the authors propose the variables “turnover per employee” (T/E), “research and development per employee” (RD/E), and “profit per employee” (P/E), whose (inter) relationship determines the capabilities.
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Martine Lappé and Hannah Landecker
This study analyzes the rise of genome instability in the life sciences and traces the problematic of instability as it relates to the sociology of health. Genome instability is…
Abstract
Purpose
This study analyzes the rise of genome instability in the life sciences and traces the problematic of instability as it relates to the sociology of health. Genome instability is the study of how genomes change and become variable between generations and within organisms over the life span. Genome instability reflects a significant departure from the Platonic genome imagined during the Human Genome Project. The aim of this chapter is to explain and analyze research on copy number variation and somatic mosaicism to consider the implications of these sciences for sociologists interested in genomics.
Methodology/approach
This chapter draws on two multi-sited ethnographies of contemporary biomedical science and literature in the sociology of health, science, and biomedicine to document a shift in thinking about the genome from fixed and universal to highly variable and influenced by time and context.
Findings
Genomic instability has become a framework for addressing how genomes change and become variable between generations and within organisms over the life span. Instability is a useful framework for analyzing changes in the life sciences in the post-genomic era.
Research implications
Genome instability requires life scientists to address how differences both within and between individuals articulate with shifting disease categories and classifications. For sociologists, these findings have implications for studies of identity, sociality, and clinical experience.
Originality/value
This is the first sociological analysis of genomic instability. It identifies practical and conceptual implications of genomic instability for life scientists and helps sociologists delineate new approaches to the study of genomics in the post-genomic era.