Kongkiti Phusavat, Pornthep Anussornnitisarn, Tatchapan Pongrakhananon and Zbigniew Pastuszak
The purpose of this paper is to develop a supplier risk framework. The framework provides the information about the risk level in which a supplier is classified. This study is…
Abstract
Purpose
The purpose of this paper is to develop a supplier risk framework. The framework provides the information about the risk level in which a supplier is classified. This study is part of the company’s one- department-one-improvement policy. This policy encourages all departments to look for way to improve process management. For this study, the Purchasing Department attempts to extend its supplier management practices by integrating the risk consideration.
Design/methodology/approach
This work is considered as a case study. The study integrates the benchmarking and classification concepts for this extension. The involvement from the company’s purchasing department is critical. There are several steps that have been undertaken. Included are the selection of the supplies to be considered (i.e. packaging), the analysis of the formal complaints by the ratio-format indicator, the four criteria used for the classification, the risk level identification, and the next steps for improving supplier management. The results are verified by the use of cluster analysis. The data are from departmental staffs and manager.
Findings
Based on the results, with the four agreed criteria (e.g. regional location, ownership type, joint venture, and registered capital and size), there are altogether four risk levels which are high, medium, low, and minimal.. For the packaging materials, most suppliers belong to the low and minimal risk levels (or 19 out of 27 suppliers). Future activities are then developed and added into the company’s ISO 9001: 2008 manual.
Practical implications
The suppliers’ risk levels with corresponding future actions represent positive contributions to the purchasing department. Integrating supplier risk is based on the applications of benchmarking (i.e. the use of the ratio-format indicators) and classification (i.e. the need to understand the nature of the risk level) frameworks. Future actions to mitigate the risk are also proposed and incorporated into the purchasing department’s procedure.
Originality/value
The project underlines the roles and importance of benchmarking in strengthening the supplier management processes. It also highlights the practicality and benefits of benchmarking when linking with the classification concept for addressing today business problems.
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Petri Helo, Pornthep Anussornnitisarn and Kongkiti Phusavat
This paper aims to analyse expectation and reality in enterprise resource planning implementation from the consultants' and software vendors' point of view and process these…
Abstract
Purpose
This paper aims to analyse expectation and reality in enterprise resource planning implementation from the consultants' and software vendors' point of view and process these further as requirements of future IT systems.
Design/methodology/approach
A small‐scale survey among Finnish enterprise resource planning system (ERP) software vendors and consultants on ERP implementation challenges is analysed (n=59). The results are connected to existing literature in the field of deploying ERP systems in the form of discussion.
Findings
The consultants' opinions show similar results with studies conducted with companies using ERP systems. The implementer's point of view shows clearly the challenge of using standardized ERP packages for various requirements on different levels. Although the sales presentations tend to emphasize the general purpose and flexibility of software packages, the dilemma between customization and vanilla system remains. The implementer's viewpoint emphasises challenges in operations: production planning, materials management, sales and marketing.
Research limitations/implications
The complexities of large ERP systems represent a true challenge from the knowledge transfer point of view. Standardized ERP packages implement standardized approaches, which has been a key benefit. The results show that the challenges are related to production planning and materials management.
Practical implications
Software vendors and consultants have a thorough knowledge of ERP implementation, but still the key challenges remain much the same. ERP project deployment requires careful planning with regard to the change management aspects, but also IT related technical aspects. The paper presents a checklist for matching the ERP system with the specific requirements of the company.
Originality/value
The results of the survey triangulate and justify many aspects found in previous research. From the consultants' point of view developments in production planning and complex products are especially needed. Initial solutions and further research are outlined.
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Kongkiti Phusavat, Pornthep Anussornnitisarn, Supattra Sujitwanit and Pekka Kess
The purpose of this paper is to identify the specific circumstances which require productivity information. It aims to help support the promotion of productivity for manufacturing…
Abstract
Purpose
The purpose of this paper is to identify the specific circumstances which require productivity information. It aims to help support the promotion of productivity for manufacturing firms belonging to the Federation of Thai Industries or FTI.
Design/methodology/approach
The analysis is based on survey data collected from FTI‐based manufacturing firms. There are five profiles: industrial type; size; years operating in business; ownership; and targeted customer to be studied in a pair‐wise circumstance. There are 40 companies that participated in this study. The statistical analyses include general linear mode with ANOVA. Altogether, there are a total of 138 circumstances (pair‐wise profiles) under study.
Findings
In general, productivity information is important as indicated from most circumstances – the must‐measure and require‐to‐measure circumstances. The findings also indicate that there is no specific prediction for particular circumstances (e.g. the larger‐size firms with longer years operating in business need productivity information than the smaller ones).
Practical implications
The results show that there is no need for the FTI to single out specific groups to focus on productivity‐measurement efforts. The study helps gain better understanding into the issues regarding when‐to‐measure productivity. It is generally known that there are a few measurement techniques that are communicated to the FTI firms on a regular basis such as multi‐factor productivity measurement and value‐added productivity measurement – what to measure. In addition, their applications are primarily at the organizational and production levels – where‐to‐measure. The process to deploy these measurement techniques is well known and documented – how‐to‐measure.
Originality/value
The findings support the use of both financial and non‐financial information to ensure an effective management process (i.e. measurement, analysis, and improvement).
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Kongkiti Phusavat, Pornthep Anussornnitisarn, Petri Helo and Richard Dwight
The purpose of this paper is to identify the past and present practices, and the future roles of performance measurement in the Thai public sector. It is part of a transformation…
Abstract
Purpose
The purpose of this paper is to identify the past and present practices, and the future roles of performance measurement in the Thai public sector. It is part of a transformation effort initiated by the Office of the Public Sector Development Commission (OPDC) on m‐government – more mobile, responsive, and flexible government. The paper also aims to identify possible roadblocks from successfully integrating performance measurement into a management process.
Design/methodology/approach
In‐depth interviews with 12 executives and top administrators from private firms and public agencies, and document reviews are performed. The analysis on the participants' opinions is based on the applications of the grounded theory. The interview's findings are verified with document reviews. The roadblocks are identified and substantiated by two experts.
Findings
For past and present practices, performance measurement is part of management tool and responsibility, a quality management system, and a learning organization. Its future viewpoints include a driver towards good governance, transparency, and accountability, and a success factor of performance audit and organizational competency/capability. Four important roadblocks in implementing performance measurement in an organization relate to staff empowerment, budgeting, external knowledge, and linkage with software usages.
Practical implications
The findings provide important information into the OPDC's planning process on its m‐government transformation initiative.
Originality/value
The paper attempts to blend knowledge on performance measurement from both the private and public sectors. It highlights the greater roles and expectations on performance measurement in an organization.