Glenn Parry

Application of lean visual process management tools

Visual process management tools have been developed by lean practitioners as communication aids and are used to help drive operations and processes in real time. Three case studies from aerospace companies describe the physical visual tools that have been implemented to facilitate performance measurement and communication in different engineering processes. Rolls Royce presents an example of how ERP outputs are communicated and controlled in a lean manufacturing process. At Airbus UK (Filton) visual process boards are used to manage a complex knowledge and people based process bringing together multiple supplier inputs in the production of aircraft maintenance manuals. Senior management at Weston Aerospace are using visual process control to run and report on work packages, resources and processes throughout their organisation. These systems act as an extension to metrics, and in themselves may be considered as a dynamic measurement system as they provide instant feedback and can be used to predict a probable outcome if no action is taken. The learning and themes that have made these implementations successful is presented and collated into a set of guidelines for consideration when implementing visual process management tools.

Enterprise Transformation: Why Are We Interested, What Is It, and What Are the Challenges?

The concept of enterprise transformation has become increasingly popular as companies recognize the need to achieve an integrated perspective within and across organizational boundaries to address complex challenges. Yet, there is little clarity concerning what constitutes an “enterprise” or indeed “enterprise transformation.” This article is conceived as an initial step along the journey towards this clarity. There is considerable work to be done in delineating this area of interest and this article is offered as a stimulus for debate on what constitutes enterprise transformation. Drawing on themes from the management and systems engineering disciplines, the article will propose four characteristics of “enterprise” as a unit for transformation and look at why this holistic unit of analysis has become critical to businesses. The article will also ask what constitutes transformation, and offer characterizing criteria to distinguish this magnitude of change from more incremental changes. A recent empirical case study will be examined to further elucidate challenges faced in defining, leading, and transforming multi-organizational enterprises. Finally, a near-term research agenda is outlined for the evolving discipline of enterprise transformation.

Lean competence: integration of theories in operations management practice

Purpose – This paper aims to develop a methodology for lean implementation that reduces the risk of damaging a companys key resources and abilities through the application of core competence theory.Design/methodology/approach – Academic literature provided background conceptual understanding of lean and core competence theory for an industrial working party of domain experts from 15 major aerospace companies in the UK to develop a methodology for lean implementation that would not damage firms competences. The methodology was trailed through cooperative inquiry in a business unit of a leading global aerospace company using a case study approach.Findings – An accessible definition of core competence that captures academic theory was proposed through an industrial working group. Further a methodology for lean implementation, drawing upon core competence theories was developed. The method comprised four tools: market analysis, the visible value stream, customer value analysis, and financial modelling. Tool...

Build to order: the road to the 5-day car

Visit any modern car production line and you will be faced by a showcase of modern technology and advanced logistics combining in a clinical environment to produce rows of automobiles, each significantly different from the one before and after it. From stamping out the sheet steel body to driving a finished car off the line typically takes under 30 hours. However, if you try and buy a car to your specification you can expect to wait around 55 days, despite production lines frequently running below capacity. Why can’t you have your car in 30 hours plus delivery time? The challenge of mass customisation, building cars to customer order, brings great value to both the customer and the automotive industry. Building cars to customer order eliminates the need for companies to hold billions of dollars worth of finished stock. Any company able to free this capital would improve their competitive position and be able to reinvest in future product development. The benefits to all are clear and the first to market an operational build-to-order system will generate a significant cost advantage that may be difficult to emulate. The question for many automotive executives is not when but how exactly will such a radically ‘different’ business model operate? This book addresses the conceptual and practical aspects for achieving the automotive industry’s next goal: the rapid delivery to the customer of a bespoke vehicle only days after placing an order.

Music business models and piracy

Purpose – The purpose of this paper is to estimate the scale of illegal file‐sharing activity across ten countries and to correlate this activity with country revenues. The work aims to elucidate an under‐explored business model challenge which exists in parallel with a music piracy challenge.Design/methodology/approach – The study data are drawn from a number of sources, including a data set of a survey of more than 44,000 consumers in ten different countries undertaken in 2010. Following analysis, all findings are validated by a panel of industry experts.Findings – Results show that non‐legitimate file‐sharing activity is a heterogeneous issue across countries. The scale of activity varies from 14 per cent in Germany to 44 per cent in Spain, with an average of 28 per cent. File‐sharing activity negatively correlates to music industry revenue per capita. This research finds many consumers are not engaging with online business models. Almost one fourth of the population claim that they do not consume digi...

The importance of knowledge management for ERP systems

Enterprise resource planning (ERP) software provides a coherent integrated electronic business management environment, frequently controlling all logistics and billing for an enterprise. Many companies are now reliant upon these systems for their daily operations; maintaining and adapting them in parallel with their business as it evolves, adding new suppliers and customers. The process of managing the development of the ERP software requires detailed knowledge of systems. ERP systems often become unique to an enterprise and may have tens to millions of pounds being invested in their development. The value of knowledge management (KM) specifically for the management and operation of ERP systems is becoming evident. Managing ERP systems knowledge has been identified as a critical success factor if a firm, its suppliers and logistics providers are to retain control of their business and not be controlled by their systems. Case studies of KM practice for three global organisations from within the UK Aerospace and Defence industry have been undertaken. This study identifies leading practices, with references to the literature, for effective KM of ERP systems.

Goods, Products and Services

Defining terminology is a useful starting point when reading or writing on the subject of service to prevent any confusion or assumptions that we all understand the terms to mean the same thing. So, what do we mean by goods, products and services? This is a book about service, but what is a ‘service’ and how is it different to ‘goods’ or ‘products’? Whilst most people intuitively know the difference between a product and service, actually defining this difference with clarity and accuracy of text is not straight forward.

Operationalising IoT for reverse supply: the development of use-visibility measures

Purpose – Improvement of reverse supply chains requires accurate and timely information about the patterns of consumption. In the consumer context, the ways to generate and access such use-visibility data are in their infancy. The purpose of this study is to demonstrate how the Internet of Things (IoT) may be operationalised in the domestic setting to capture data on a consumer’s use of products and the implications for reverse supply chains. Design/methodology/approach – This study uses an explorative case approach drawing on data from studies of six UK households. “Horizontal” data, which reveals patterns in consumers’ use processes, is generated by combining “vertical” data from multiple sources. Use processes in the homes are mapped using IDEF0 and illustrated with the data. The quantitative data are generated using wireless sensors in the home, and qualitative data are drawn from online calendars, social media, interviews and ethnography. Findings – The study proposes four generic measurement categor...

Complex Engineering Service Systems: A Grand Challenge

This chapter examines the contributions made within this book and seeks to add to the development of the framework for complex engineering service systems. Particular focus is placed upon emergent value, which is co-created as customer variety permeates processes.

Outsourcing engineering commodity procurement

Purpose – The purpose of this paper is to introduce and provide an insight into the benefits of outsourcing the procurement function for engineering commodity items.Design/methodology/approach – Research into the literature presents the development of outsourcing procurement functions and this manuscript adds to the body of knowledge through introducing the outsourcing of engineering commodity procurement, illustrated with the case study example.Findings – A US Aerospace Fortune 50 company has made savings by outsourcing the procurement of commodity engineering parts. This has occurred in two stages. Firstly the commodity procurement was locally outsourced and staff migrated to the service provider to whom commodity procurement was a core competence enabling them to offer cost savings. Secondly the back office and telephone service was moved to India, further reducing cost whilst enhancing the service through an increased headcount.Originality/value – The paper provides the first example of the two stages...