Ike C. Ehie and Luis Miguel D.F. Ferreira
Given the sudden increase in plant investments across the manufacturing sector due to recent disruptions in the global supply chain caused by the COVID pandemic, the…
Abstract
Purpose
Given the sudden increase in plant investments across the manufacturing sector due to recent disruptions in the global supply chain caused by the COVID pandemic, the Ukraine/Russian war, ocean piracy incidents, and others, there is a need to strategically align the investments decisions with the overall business strategy. This study aims to establish whether strategic alignment enhances the effect of plant investments on operational performance.
Design/methodology/approach
Using the fifth version of the Global Manufacturing Research Group (GMRG V) dataset, we employ a structural equation model (SEM) to establish the moderating role of strategic alignment in plant investments-operational performance relationships.
Findings
The results suggest that strategic alignment enhances the positive effect of plant investments on operational performance, especially in cost, delivery, flexibility, and innovation. However, we found partial support for the moderating role of strategic alignment on quality performance.
Research limitations/implications
Although the study was based on the GMRG global dataset and numerous papers have been published using the same dataset, the use of a convenience sample on a select group of companies may limit the generalizability of the results. With the increase in new plant investments in computer chip manufacturing, electronics, and electrical in recent years, the findings could help corporate executives maximize the benefits of their investment decisions. Companies should ensure that their plant investment decisions are strategically aligned with their overall business strategy to achieve optimal outcomes.
Practical implications
With the increase in new plant investments in computer chip manufacturing, electronics, and electrical in recent years, the findings could help corporate executives maximize the benefits of their investment decisions. Companies should ensure that their plant investment decisions are strategically aligned with their overall business strategy to achieve optimal outcomes.
Originality/value
The study comprehensively demonstrates that the extent of improvement in operational performance depends on how closely plant investment decisions align with the overall company strategy. Manufacturers should align major investment decisions with competitive priorities driven by market requirements to enhance operational performance.
Details
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Ike Ehie and Chwen Sheu
To investigate the potential of combining six sigma (SS) and theory of constraints (TOC) to improve production system performance.
Abstract
Purpose
To investigate the potential of combining six sigma (SS) and theory of constraints (TOC) to improve production system performance.
Design/methodology/approach
Based on the literature, this paper proposes an integrated TOC/SS framework and applies this framework to an axle manufacturing company to improve its gear‐cutting operation.
Findings
The results of the case study indicate that the company benefited tremendously from its emphasis on global improvement guided by the TOC concept. Managers were able to select a continuous improvement (CI) project that had greater impact on bottom line performance. On the other hand, SS provided various statistical tools and engineering techniques (such as value analysis, Pareto diagram and control charts) for defining the specific process to be improved, analyzing the root causes, and designing actions for making improvement.
Research limitations/implications
For the future effort of integrating TOC with SS and other CI techniques, we suggest the incorporation of a TOC methodology, thinking process (TP).
Practical implications
Overall, the integration of SS and TOC provides managers with an excellent platform for two CI techniques to work together and create great synergy.
Originality/value
This study adds to the CI literature and practice by demonstrating the value of a method of combining TOC and SS.
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Keywords
– The purpose of this paper is to formulate the manufacturing strategy in a developing country with particular reference to Nigeria in sub-Saharan African country.
Abstract
Purpose
The purpose of this paper is to formulate the manufacturing strategy in a developing country with particular reference to Nigeria in sub-Saharan African country.
Design/methodology/approach
Using survey methodology and the partial least squares – structural equation modeling technique, The authors find that in addition to the four basic environmental factors – business cost, labor availability, competitive hostility and environmental dynamism, both government policies and the adopted manufacturing practices have significant effects on the manufacturing strategic priorities.
Findings
Among other findings, the environmental factors of government policies and the type of manufacturing practices adopted have significant effects on manufacturing strategy.
Research limitations/implications
Further studies should explicitly look into the effect of the adopted manufacturing strategy on company performance. Possibly, a case study research might be considered to establish this relationship.
Practical implications
As manufacturing firms continue to experience greater competition, especially from China, and given the technological advancement in manufacturing, the business environment facing Nigerian manufacturing companies is likely to become more dynamic, complex, diverse and even hostile. Under such a turbulent climate, the configuration and effective deployment of manufacturing strategies is imperative to achieving superior business performance.
Social implications
A more effective strategy will make companies more competitive in the market place, thus creating employment in a sector that has witnessed declining growth in employment.
Originality/value
The linkage between environmental factors and manufacturing strategy has been studied widely. However, this study reveals the role of government policies and manufacturing practices in formulating manufacturing strategy in a developing country context.
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Observes that in response to the growing global competition, many manufacturing companies are in the process of adopting advanced manufacturing technologies (AMT) to improve their…
Abstract
Observes that in response to the growing global competition, many manufacturing companies are in the process of adopting advanced manufacturing technologies (AMT) to improve their business operations. Notes that, despite the increasing interest in AMT, few empirical studies have been conducted to determine key success implementation factors. Presents the results of an empirical study which surveyed manufacturing companies in the USA to determine the critical success factors in the implementation of AMT. Uses tangible and intangible benefits as indicators of AMT implementation success measures. Classifies the determinants of AMT implementation success under four broad categories: the triple “C” factors (communication, commitment and co‐ordination), the housekeeping factors (action plan, effective team, vendor support, cost justification, functions integration and effective facilitator), the self‐interest factors (employee moral, satisfaction, belief in AMT and appropriate reward), and the literacy factors (understanding of firm’s business, training clarity of goals/objectives of AMT). Reveals from analysis of the responses that about 70 per cent of the variances in the success measures were explained by those determinants of AMT identified in the study.