A. Ansari

JIT purchasing as a quality and productivity centre

Recently, Just-In-Time (JIT) purchasing practices have been recognized as a cornerstone of Japans success in improving product quality and productivity. Traditionally, however, US firms have treated purchasing functions as a ‘profit centre’. This paper presents the proposition that US firms must recognize the potential of purchasing activities as ‘quality and productivity centres’ through successful implementation of JIT purchasing. Personal interviews have been conducted at four US manufacturing firms in an effort, first, to identify the major activities of JIT purchasing that have favourable effects on product quality and productivity and, second, to describe how these activities can improve product quality and productivity in US firms.

Kaizen costing for lean manufacturing: a case study

In the past decade due to increasing global competition US firms have radically changed their manufacturing practices to improve their competitiveness. In pursuing this goal they have adopted a number of advanced techniques, such as just-in-time, total quality management, lean manufacturing, flexible manufacturing systems, process improvement, and design for manufacturability, to name a few. The objectives of all these programmes have been to reduce cost, improve quality, reduce cycle time, and increase flexibility on the factory floor. Support systems such as finance and cost management, however, have generally not kept pace with the level of corresponding operational changes being implemented. This paper presents a case study of kaizen costing as practised by Boeing Commercial Airplane Company, IRC Division. The purpose of this study is to describe a method used to set kaizen costs which will provide relevant cost data to support lean production decisions that would be useful to practitioners.

Recruiting and retaining scarce information technology talent: a focus group study

Notes that it has become fiercely competitive to recruit and retain information technology (IT) talent in today’s tight labor market. Cites two main reasons for IT skills shortages. First, the number of students graduating in the USA with bachelor’s degrees in computer science declined more than 40 percent in recent years. Forecasts are that this trend will grow even more during the next few years. Second, according to the US Bureau of Labor Statistics, the demand for trained IT employees has increased in the past few years. The predicted labor shortage for skilled IT staff will be increasing by 1.3 million by year 2005. This labor crisis has forced companies to develop new strategies specifically to address recruitment and retention of scarce IT specialists. Describes effective recruitment and retention practices, as described by participants in this study, with the goal being to provide useful information to other employers of IT specialists. The information used in this study was based on an intensive focus group study conducted with senior IT managers and recruiters from a number of local companies in the Pacific Northwest.

World‐class strategies for safety: a Boeing approach

In recent years, many businesses have focused on three priorities: quality, cost and cycle time, in order to become world‐class companies. Despite the fact that many companies have been continuously improving product quality, lowering costs and reducing cycle times, their safety programmes have remained steady. A safety programme is as critical to achieving world‐class business status as quality, cost and time. Workplace injuries in the USA continue to occur at a rate of 8.5 per 100 full‐time workers per year. This phenomenon has a definite impact on product quality and cycle time, and can add millions of dollars to the annual costs of workers’ compensation programmes. For businesses to create an injury‐free workplace, it is necessary to develop strategies that move them towards world‐class safety performance. Proposes a strategic model that captures a transition to world‐class safety performance. The model was developed from the authors’ personal experiences, interviews with the safety, health, and environmental affairs manager of the Boeing Commercial Airplane Group, and documents obtained from Boeing and other companies.

Challenges of outsourcing logistics to third-party providers

The focus of this study is on the challenges that shippers faced using Third-Party Logistics (3PL) providers. The study is based on a mail survey of 126 shippers and personal interviews with eight shipper executives and four 3PL provider executives. The study first identifies the major challenges including, finding a 3PL with the capabilities meeting the shippers specific logistics requirements, the incompatibility of information systems between shipper and 3PL, the failure of 3PL to meet a shippers future growth needs, and issues related to security. Second, it offers some recommendations for shippers to consider in overcoming any challenges encountered.

Characteristics of Periodicals for Potential Authors and Readers in Production and Operations Management

Journals and industry publications are important in communication among production and operations‐management academics and practitioners. There have been calls for more cross‐disciplinary research and greater emphasis on applied benefit. Describes an attempt to identify relevant periodicals, together with their publication characteristics and readership exposure indices. The authors conclude that even if research agendas are changed to emphasize practitioner‐relevant research, that is of little benefit if the readership of academic journals remains low. It is suggested that other outlets, particularly those with high readership exposure, should be regarded as legitimate publication outlets for such research.

Controlled production planning for Just-In-Time short-run suppliers

In the face of growing global competitiveness it is necessary for US manufacturers to manage their limited resources in quite the opposite manner of the way they have been managed in the past. Just-In-Time (JIT) is a practice which, by eliminating waste, improving quality, and increasing productivity, has helped manufacturers meet the competition. The core requirement of JIT in practice, however, is the timely delivery of quality products. This requirement has exerted significant economic pressure on short-run JIT suppliers that provide low-volume, diversified products. This paper presents a means by which JIT methods and Statistical Process Control may be applied jointly to short run production in an environment with demand uncertainties. The purpose of this study is threefold: (1) to examine the cost structure of short-run production, (2) to propose the application of controlled production planning, and (3) to discuss the effect of controlled production planning on the cost structure of JIT suppliers. This study examines the economic impact of JIT demands on the cost structure of short-run production and proposes Controlled Production Planning (CPP) for generating signals for delivery failures or overproduction plans. Establishing CPP minimizes short-term production plan fluctuations, reduces inventory based on the market situation, and reduces the total cost of production. Using a computer simulation we demonstrate that CPP is a viable method for achieving these inventory and production goals. Based on this proposal, three inventory strategies are recommended to short-run suppliers in order to minimize their operating costs under different business conditions. The first strategy uses CPP to determine an inventory cap that requires the maintenance of an average level of stock as a lower control limit to cope with short-run demand fluctuation. This strategy is applicable to a business condition with high product quality and low flexibility to respond to fluctuating demands. The second strategy is zero inventory exercised by sole suppliers offering standard products. The third strategy is a flexible production system combined with zero inventory, which is applicable to suppliers facing strong competition without the market position to absorb their production surplus.

Outsourcing logistics to third-party providers: practitioners perspectives

As a result of globalisation, companies have been forced to shift their operations from internal provisioning to outsourcing to Third-Party Logistics (TPL) providers. To date, no field surveys have been conducted to validate various assertions regarding the reported outcomes of using TPL providers. To address this research gap, this study employed surveys with executives of both shippers (customers) and TPL providers. Findings indicated that the major benefits of outsourcing logistics included achieving reductions in fixed assets, lower inventory, reduced logistics costs, and improved customer service. However, four major challenges were also cited.

Two Strategies for Regaining US Manufacturing Dominance

Despite US government policymakers′ hopes for a return to US predominance in the marketplace, manufacturers face the fact that the Japanese manufacturing superiority is largely due to better quality, cost‐effective operations, and rapid response to customers. A few explanations for the US disadvantage have been preferred (such as higher wages, unionisation, lack of lifetime employment, lack of automation, lack of existence of economies of scale and the dynamic effect of the learning curve), but all have been refuted. The researchers believe the explanation lies in the lack of emphasis on two strategies in manufacturing dominance: first, integrating quality control techniques into all operating disciplines, including design, production, and logistics; second, efficient utilisation of manufacturing resources including equipment, material, personnel, and time. This article examines the role of these two strategies in regaining US manufacturing dominance and reports the advantages obtained by nine manufacturing organisations implementing them.

Emiratisation: from policy to implementation

Emiratisation is an affirmative action policy of the United Arab Emirates Government that gives preferential hiring status to Emiratis over expatriates in order to preserve national identity, economic sustainability, and political stability. Although the policy has been practiced for a decade, the unemployment problem for Emiratis persists in the both private and public sectors. According to the United Arab Emirates (UAE) National Human Resources Development and Employment Authority, unemployment among Emiratis reached 12.7% or 290,000 in 2010. This surge in unemployment results from a massive reliance on foreign workforce employment throughout the UAE region. Given the absence of empirical data, this research relies on published government documents, personal interviews with public officials and private sector executives, and a survey questionnaire. Findings indicated that seven factors largely contribute to a disparity between the Emiratisation policy and its intended results. Several recommendations are offered for future research and possible Emiratisation policy revisions.