Sebastian Sturm, Gernot Kaiser and Evi Hartmann
The dynamics of quality performance and quality cost are gaining renewed interest in quality management literature. Using large sample secondary data, the purpose of this paper is…
Abstract
Purpose
The dynamics of quality performance and quality cost are gaining renewed interest in quality management literature. Using large sample secondary data, the purpose of this paper is to build up empirical evidence for increasing quality performance in manufacturing in the long-run. The authors then examine whether it is possible to reduce internal and external failure cost over time without increasing prevention and appraisal expenditures in return. Finally, a scale effect in reducing quality cost is measured to clarify the long-run dynamics between quality cost and quality performance.
Design/methodology/approach
The authors conduct statistical analysis on a large sample secondary data set to reveal relationships between total cost of quality, its components and overall quality performance.
Findings
Significantly higher quality performance and lower quality cost are observed in the long-run. Quality costs grow less than half as fast as sales volume, pointing to a significant scale effect in quality cost reduction.
Practical implications
Businesses can use these implications for targeting failure costs and budgeting appraisal and prevention costs. Based on company-specific historical learning behavior through prevention and appraisal activities, an increasingly reliable prognosis of failure cost shall be possible.
Originality/value
For the first time, quality performance and cost dynamics are assessed using a secondary data set with more than 400 observations. A scale effect for quality cost reduction is measured. The results are of great importance to quality management practice and research.
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Markus Plewa, Gernot Kaiser and Evi Hartmann
The purpose of this paper is to provide empirical evidence for competing representations of the prevention-appraisal-failure model of quality cost.
Abstract
Purpose
The purpose of this paper is to provide empirical evidence for competing representations of the prevention-appraisal-failure model of quality cost.
Design/methodology/approach
The authors conduct regression analysis on a secondary data set to reveal relationships among total cost of quality, its components and overall quality performance.
Findings
Total cost of quality and its failure cost component are significantly lower at higher levels of quality, while the prevention and appraisal cost components are not observed to be significantly higher at higher levels of quality. The authors propose a modification to the modern representation of the prevention-appraisal-failure model.
Practical implications
In manufacturing, ever higher levels of quality are associated with significantly lower quality cost.
Originality/value
Using a large, unique data set for secondary analysis, combined with employing a high-level measure for overall quality performance, the authors provide evidence for the aggregate explanatory power of prevalent representations of the prevention-appraisal-failure cost of quality model.
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Sebastian Sturm, Nils-Ole Hohenstein, Hendrik Birkel, Gernot Kaiser and Evi Hartmann
This paper integrates research on demand- and supply-side risk management practices to better explain how to achieve competitive advantage in dynamic business conditions. The…
Abstract
Purpose
This paper integrates research on demand- and supply-side risk management practices to better explain how to achieve competitive advantage in dynamic business conditions. The purpose of this study is to develop a model linking supply chain flexibility, agility, robustness and resilience and to investigate its relationships and impact on business performance.
Design/methodology/approach
The authors conduct a review of existing literature to derive their hypotheses and operationalize the respective constructs. The formulated research model is then validated applying partial least squares structural equation modeling on survey data from 89 multi-national companies based in Europe.
Findings
The authors find a significant positive relationship between supply chain flexibility and supply chain agility as well as supply chain robustness and supply chain resilience, respectively. Additionally, it is argued that supply chain flexibility, agility and resilience have significant positive impact on individual dimensions of business performance.
Originality/value
The relationships between supply chain flexibility, agility, robustness, resilience and business performance are investigated and empirically validated altogether in a single model for the first time, providing a clear separation of these terms and shedding further light on the management of supply chain risks.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Organizations aiming to better manage risks on the supply and demand-side of their supply chains should focus on strengthening several key capabilities. Achieving this together with better understanding of relationships between these factors can also lead to a positive impact on business performance.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Tim Gruchmann, Gernot M. Stadtfeld, Matthias Thürer and Dmitry Ivanov
Experiencing more frequent, system-wide disruptions, such as pandemics and geopolitical conflicts, supply chains can be largely destabilized by a lack of materials, services or…
Abstract
Purpose
Experiencing more frequent, system-wide disruptions, such as pandemics and geopolitical conflicts, supply chains can be largely destabilized by a lack of materials, services or components. Supply chain resilience (SCRES) constitutes the network ability to recover after and survive during such unexpected events. To enhance the understanding of SCRES as a system-wide quality, this study tests a comprehensive SCRES model with data from multiple industries.
Design/methodology/approach
The study proposes a theoretical framework conceptualizing SCRES as system quality, extending the classical proactive/reactive taxonomy by multiple system states consisting of the supply system properties, behaviors and responses to disruptions. Underlying hypotheses were tested using an online survey. The sample consists of 219 responses from German industries. Maximum likelihood structural equation modeling (ML-SEM) and moderation analysis were used for analyzing the survey data. The study was particularly designed to elaborate on supply chain theory.
Findings
Two pathways of parallel SCRES building were identified: proactive preparedness via anticipation and reactive responsiveness via agility. Both system responses are primarily built simultaneously rather than successively. The present study further provides empirical evidence on the central role of visibility and velocity in achieving comprehensive SCRES, while flexibility only exerts short-term support after a disruption. The study additionally points to potential “spillover effects” such as the vital role of proactive SCRES in achieving reactive responsiveness.
Originality/value
The present study confirms and expands existing theories on SCRES. While stressing the multidimensionality of SCRES, it theorizes the (inter-)temporal evolution of a system and offers practical guidelines for SCRES building in various industrial contexts. It thus supports the transformation toward more resilient and viable supply chains, contributing to the increasing efforts of middle-range theory building to achieve an overarching theory. The study also points to potential future research avenues.
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Gernot M. Stadtfeld and Tim Gruchmann
The research on supply chain resilience (SCRES) has gained momentum after organizations have experienced more frequent and severe disruptions, especially with COVID-19 and the…
Abstract
Purpose
The research on supply chain resilience (SCRES) has gained momentum after organizations have experienced more frequent and severe disruptions, especially with COVID-19 and the Russia/Ukraine conflict. Due to its potential for new practices and capability building, SCRES requires dynamic capabilities (DC) to enable an organization to prepare for, counter, and recuperate from disruptions leading to performance improvements and competitive advantage.
Design/methodology/approach
The present literature study seeks to enrich the theoretical debate on DC in SCRES, contributing to an advanced understanding of SCRES. Therefore, a meta-review of 83 peer-reviewed literature reviews has been conducted. Based on qualitative content analysis and abductive reasoning, relevant constructs are synthesized to facilitate theory-building for SCRES DC into a comprehensive framework.
Findings
The analysis reveals that SCRES has developed into an independent research area. Thus, resilience capabilities must be considered bundles of practices, evolving from different areas beyond supply chain risk management (SCRM). Most recent literature reviews on SCRES address more than one practice bundle applying SCRES DC as antecedents of new DC when organizational structures become more mature, leading to path dependencies when building business capabilities.
Originality/value
Aggregating extant literature on SCRES into a theoretical framework, the study contributes to a better understanding of the relationships between DC and SCRES practices while offering potential avenues for future research. It enriches DC theory by extending its microfoundations towards a holding/buffering dimension, which particularly accounts for the stability-based view of SCRES.