Arnoud De Meyer

Lasting improvements in manufacturing performance: In search of a new theory

Abstract Is there a way to avoid trading off one capability for another in manufacturing? The prevailing wisdom says no. But some manufacturers seem to have been able to defy that: compared to their competitors, they have better quality, are more dependable, respond faster to changing market conditions and in spite of all that, achieve lower costs. How can this be explained? Our aim here is to provide an explanation. We contend that the nature of the trade-offs among manufacturing capabilities is more complex than has been assumed. Depending on the approach taken for developing each capability, the nature of the trade-offs change. In certain cases not only can trade-offs be avoided altogether, but in fact one capability would enhance another. They become cumulative. Moreover, when a capability is developed in this way, it is likely to be more lasting and less fragile than if it were developed at the expense of other capabilities. We go on to suggest a model which shows how this can be done: To build cumulative and lasting manufacturing capability, management attention and resources should go first toward enhancing quality, then—while the efforts to enhance quality are further expanded—attention should be paid to improve also the dependability of the production system, then—and again while efforts on the previous two are further enhanced—production flexibility (or reaction speed) should also be improved, and finally, while all these efforts are further enlarged, direct attention can be paid to cost efficiency. We use data from 1988 European Manufacturing Futures Survey (167 respondents) to test and illustrate our model. While we cannot “prove” our model, nevertheless, we believe there is enough evidence for a critical reexamination of traditional managerial approaches for improving manufacturing performance. For example, except for the cases when there are obvious slacks in the production system, the belief that costs can come down quickly and lastingly needs to be questioned. Lasting cost efficiency in production can be achieved only through improvements in other capabilities.

On Uncertainty, Ambiguity, and Complexity in Project Management

This article develops a model of a project as a payoff function that depends on the state of the world and the choice of a sequence of actions. A causal mapping, which may be incompletely known by the project team, represents the impact of possible actions on the states of the world. An underlying probability space represents available information about the state of the world. Interactions among actions and states of the world determine the complexity of the payoff function. Activities are endogenous, in that they are the result of a policy that maximizes the expected project payoff.A key concept is theadequacy of the available information about states of the world and action effects. We express uncertainty, ambiguity, and complexity in terms of information adequacy. We identify three fundamental project management strategies: instructionism, learning, and selectionism. We show that classic project management methods emphasize adequate information and instructionism, and demonstrate how modern methods fit into the three fundamental strategies. The appropriate strategy is contingent on the type of uncertainty present and the complexity of the project payoff function. Our model establishes a rigorous language that allows the project manager to judge the adequacy of the available project information at the outset, choose an appropriate combination of strategies, and set a supporting project infrastructure--that is, systems for planning, coordination and incentives, and monitoring.

R&D-Marketing Integration Mechanisms, Communication Flows, and Innovation Success

Rudy Moenaert, William Souder, Arnoud De Meyer, and Dirk Deschoolmeester report the results of their study of forty technologically innovative Belgian companies to examine the interaction between marketing and R&D. They studied one commercially successful and one commercially unsuccessful technological product innovation project in each participating company and collected data from one marketing and one R&D respondent per project. Communication flows between marketing and R&D are increased under conditions involving formalization of projects, decentralization, positive interfunctional climate, and role flexibility.

A Typology of Plants in Global Manufacturing Networks

The purpose of this paper is to propose a new, empirically derived typology of plants in the international manufacturing network of multinational companies. This typology is based on the knowledge flows between the plants. In our research, network analysis has been used as a methodology for understanding the position of plants in international manufacturing networks. The focus has been primarily on the intangible knowledge network, and secondarily on the physical, logistic network. Our analysis leads to four types of plants with different network roles: the isolated plants, the receivers, the hosting network players, and the active network players. Our analysis shows that the different types of plants play a different strategic role in the company, have a different focus, and differ in age, autonomy, and level of resources and investments. Also, the analysis suggests that the evolution of the plant depends to some extent on the network role of the plant. Finally, two scenarios for the development of a strong network role are identified. The research is useful for the scholar studying the architecture of knowledge networks, as well as for the practitioner who is in charge of an international network of manufacturing units.

Ecosystem Advantage: How to Successfully Harness the Power of Partners

Changes in the global environment are generating opportunities for companies to build advantage by creating loosely coupled networks or ecosystems. Ecosystems are larger, more diverse, and more fluid than a traditional set of bilateral partnerships or complementors. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus. This article describes six keys to unlock ecosystem advantage: pinpointing where value is created, defining an architecture of differentiated partner roles, stimulating complementary partner investments, reducing the transaction costs, facilitating joint learning across the network, and engineering effective ways to capture profit.

The Flow of Technological Innovation in an R&D Department

Abstract The flow of technological information, in particular the type of sources and transfer channels for technological information has been a focus of research interest since the very first studies concerning management of research and development. However, the results of these empirical studies, although encouraging and useful to managers, leave several questions unanswered, and even worse, contain some contradictions. In this paper we will try to explain some of these contradictions using the technology characteristics as an contingency factor. The model, which we will present has been tested in a twofold way: questionnaires were used to provide insight into the importance of some sources, while interviews on the basis of standardized problems led us to a better insight into sources and channels.

Influence of Manufacturing Improvement Programmes on Performance

Today, to improve productivity in manufacturing, one has a large variety of improvement programmes at one′s disposal. Zero defects, value analysis, just‐in‐time, manufacturing lead time reduction are just a few of a long list of potential action programmes. Their real impact is not always clearly described, and manufacturing managers often have to start implementation on a basis of belief. In this article we use the database of the European Manufacturing Futures Survey to explore some of the medium‐term effects of these improvement programmes on manufacturing performance. The conclusions show that there are no simple cause‐effect relationships between single improvement programmes and manufacturing performance. Tenacity in implementation is required since some programmes have negative effects in the short term, but can have positive effects in the long term.

Technology Transfer into China: Preparing for a New Era

Currently, there are three forces creating a more favourable background for western multinational companies to do new business in China by transferring new technology. First, growing overcapacity means China requires not traditional turnkey factories, but instead, technology which leads to innovation and improvement. Second, a changing attitude by all levels of Chinese government to demanding state-of-the-art technology including software instead of previous generation technology, and to technology management and commercial implementation more. Third, intellectual property rights are becoming better respected. Arnoud De Meyer makes suggestions to best manage technology transfer into China, with this changed background. Based on six case studies and extensive desk and literature research, he makes proposals under three headings: creating a win-win situation, applying good basic principles of technology transfer to the Chinese case, and applying common sense to the management of intellectual property rights.

Reflections on the globalization of management education

Purpose – Globalization of management education seems to have become the natural way to go for management and business schools. Almost every week one can find in the specialized press another announcement about an overseas campus, a new international partnership or a major research tie up. But announcing an international venture is easy, implementing is the challenge. The purpose of this paper is to provide some advice on how to implement globalization.Design/methodology/approach – This paper is based of the authors own experience with INSEAD, the University of Cambridge and Singapore Management University, as well as his observations of many other business schools. It is thus anchored in a few case studies.Findings – The author offers some reflections on what he sees as the challenges of implementation and how one can overcome these; focusing in particular on the need to understand what the driver for the globalization is and on implementation issues, e.g. how to build an international brand, some of th...

Removing the barriers in manufacturing : The 1990 European manufacturing futures survey

The 1990 European Manufacturing Futures survey shows that European manufacturers are doing well. Efforts in total quality management and improvement of deliveries are paying off; the factories have been cleaned up and reorganized. The creation of the post-1992 single market is not expected to change the total number of their factories, but is likely to demand a more customized output and service to more markets from each factory. More non-EC competitors are expected to enter and set up plants in Europe. The leading European manufacturers are focusing increasingly on establishing closer links between production and the other functions in the company as well as with suppliers, customers, and others outside the company. This is done partly through technology, partly through interfunctional teams, and partly by modification of procedures. The goal is to remove the barriers to free flow of information, goods and people to and from the factory. This is a bold move, but as the logical next step to the improvement efforts within the factory, it is unavoidable. The excitement of the 1992 single market, and the opening of the Eastern European markets, can hinder such risk-taking ventures in manufacturing. But, in fact because of the new opportunities, uncertainties and potential turbulence in Europe in the next few years, there is even more reason for bringing the factory in closer contact with its environment. This will be risky, but for the European manufacturers, the favorable recent results provide a window of opportunity to prepare for the factory without borders.