Job de Haan

Modularity in supply chains: a multiple case study in the construction industry

– The objective of this study is to assess the applicability of Fines three‐dimensional modularity concept as a tool to describe and to analyze the alignment of product, process, and supply chain architectures. Fine claims that the degree of modularity in the final output product has a one‐to‐one correspondence with the degree of modularity in transformation processes and supply chains., – An exploratory three‐company case study is used to investigate Fines three‐dimensional modularity concept., – Empirical research shows that Fines three‐dimensional modularity concept works well for descriptive purposes. However, the concept needs refinement when it is used for analytical purposes. For process modularity, the spatial aspect can be related to the concept of the territorial economy of firms, while the time aspect can be elaborated using a product life‐cycle perspective and the concept of interface reversibility. With respect to supply chain modularity, the concept of modular production networks, which specifies combinations of different degrees of geographic, organizational, cultural, and electronic proximity, is appropriate. In the specific setting of the building industry, a methodology for developing product platform architectures would refine the dimension of product modularity., – Starting from the above‐mentioned concepts, several strands of research are outlined for a further elaboration of product (developing a methodology for developing product platform architectures), process (taking a life‐cycle perspective on module development), and supply chain modularity (analyzing conditions for the application of modular networks)., – The application of systematic engineering design methods, interface reversibility, and interorganizational ICT allows firms to align product, process, and supply chain modularity.

Codes to coordinate supply chains: SMEs' experiences with SA8000

Purpose – Contracts and trust are mechanisms to coordinate processes in supply chains. However, contracts are incomplete and trust takes time to develop. The aim of this paper is to show how Social Accountability 8000 (SA8000) can help to manage supply chains (in particular small and medium‐sized companies as its partners) by solving the problem of incomplete contracts as well as replacing trust in new partnerships, especially with respect to intangible performance indicators.Design/methodology/approach – Supply chain management (with an emphasis on coordination) and corporate social responsibility (with an emphasis on codes, especially SA8000) are briefly described, based on a literature review. These descriptions led to three research propositions. In the second part, four cases describe the practice of SA8000. The richness of the cases provides both literal and theoretical replication. Finally, the theoretical and empirical results are compared, with specific regard to the research propositions.Finding...

Changing governance of supply chains in the building industry: a multiple case study

While the process of deregulation supported the use of market mechanisms in the building industry, it also means that manufacturers, contractors and architects have become the dominant parties in the supply chains. The objective of this paper is to explain the paradox that deregulation (more market) has inspired more hierarchical forms of organising supply chains of building projects. Concepts from transaction cost economics are used for analysing circumstances under which new co-ordination mechanisms develop. In a multiple case study, firms that are analysed are involved in different stages of supply chains in the building industry. The case studies show one of the partners in the supply chain may take the role of director to improve efficiency as well as to reduce co-ordination costs. Which partner takes this role depends on the specific product–market combination under investigation

Market strategies and core capabilities in the building industry

The objective of this study is to show that the core competence approach has validity when applied to construction. The focus is on the analysis of the fit between market strategies of firms in the building industry and their core capabilities. Certain strategies require specific core capabilities and key external and internal conditions supporting these capabilities. The resource-based approach focuses on the conditions in a firm, the internal capabilities, and supports a core capability that is demanded. The network literature will be related to external conditions that support a core capability of a firm active in a certain market. In a multiple case study, firms are analysed that are involved in different stages of the building process. The case studies demonstrate firms with consistent patterns of market strategies, core capabilities, and supporting internal and external conditions. The specific core capability of the firm under investigation determines the types of external and internal conditions that are critical.

Zero inventory management: facts or fiction? Lessons from Japan

If inventory is waste and product lifetimes decline at a growing speed, a firm should be very cautious about having such inventories. Since JIT practices originated in Japan, if zero inventory management is possible, one should find it in Japanese firms. In this paper, theoretical reflections are compared with Japanese experiences from eight case studies. Although these factories strive for no inventory of inputs, work in process, and output, they have not reached this goal. For each of these types, other factors are relevant: geographical and infrastructural factors for the inputs, technological reasons for work in process, and market and technological factors for output prevent firms from being successful in this respect. So zero inventory management is, at least for the time being, a fiction, but western factories can, nonetheless, learn a lot from the step-by-step improvements in Japan in this field.

Flows of goods or supply chains; lessons from the natural rubber industry in Kerala, India

Abstract There is not ‘one best way’ of organizing the flow of goods from the producers of raw materials to final customers to satisfy these customers. The relevance of the product for the buyers is an important contingency to determine which type of organization, i.e. relationship between buyers and suppliers, is effective. Kraljic presented a purchase portfolio and Patterson et al., introduced three types of relationships. From combining these two approaches we conclude that, for non-critical items and leverage items a transactional relationship, governed by the market, is adequate; for strategic items a transcendental relationship, governed by clan is optimal, whereas for the bottleneck items a transitional relationship, governed by quasi-hierarchy would be appropriate. When applying this scheme to the Keralite rubber industry we found that, differences between the provision with footwear, a low end product for the domestic market, and dipped goods, high end products for the international market, can be described and analysed. From the analysis we find differences and inconsistencies pointing at directions to improve the provision of the markets with these products.

Production planning in Japan: rediscovering lost experiences or new insights?

Abstract In previous research, De Haan and Yamamoto (in press) found that Japanese production planning had specific characteristics such as being detailed and centralized. Nevertheless, Japanese firms succeed in meeting flexibility norms such as a high degree of customization as well as short delivery terms. In Western literature, Japan is associated with pull production whereas short delivery terms are associated with push production (planned, detailed and centralized) and customization is seen as a strength of pull production (planned, decentralized, within a broad overall framework). Therefore, this result was quite puzzling. In this paper, we study the Western literature on production systems and production planning strategies in more detail. The concept of ‘‘customer order decoupling point’’ appears to be of help in understanding the relationship between production systems, planning strategies and level of customization. Two patterns could be identified: (1) push production to stock and levelling (2) versus pull production to order and chasing. The Japanese practices do not fit into these patterns, as the case studies showed push production to stock but on the basis of a chase strategy. Specific characteristics of the Japanese production system, such as step-by-step planning, ringi/nemawashi decision-making and “kaizen”, nevertheless, made this pattern effective.

Soft‐investments appraisal: Cost‐benefit analysis of the implementation of work groups as an example

Aims to show that, by using a simple step‐by‐step approach to cost‐benefit analysis, we can deal with “soft” items (such as the restructuring of organizations) so that they are integrated within the overall business policy. The conceptual exercise is illustrated on the basis of a case study on the implementation of socio‐technical work groups in a Dutch factory. First, socio‐technical work groups are defined as an example of a “soft” investment. Next, the step‐by‐step approach is described, showing that qualitative considerations can be reworked into financial figures such as those used in traditional investment analysis. Subsequently, this approach is applied to the illustrative case study. In the randomly selected case study it appeared that the decision to implement socio‐technical work groups could be dealt with as an investment. Using traditional techniques, the investment was analysed as risky but profitable. In the casuistic step‐by‐step approach, management, with or without the help of a consultant, reworks qualitative considerations into financial figures. The transparency of this approach enables them to prove the reliability of the process as well as the validity of the conclusions drawn from the calculations based on their situation. Management’s discussion of the qualitative considerations and financial figures provides a description of the future situation that is as complete and clear as possible.

Technology: toys or tools?: results of a Dutch Delphi study

Abstract The diffusion and use of Advanced Manufacturing Techniques (AMT) in Dutch factories that is expected to occur at the beginning of the next century, has been analyzed in a Delphi study with 23 Dutch experts. Four possible scenarios for ‘factories of the future’ were identified; in these special attention was paid to the role that AMT might play. It appeared that AMT would play a different role, depending on the external environment and internal condition, varying from very limited to rather extended. Introducing AMT in these ways should have a positive impact on competitive position of the enterprises, company employment, and the industrial structure.

Conceptualizing Responsible Innovation in Craft Villages in Vietnam

Previous research by the authors has explored small-scale innovations in poor craft producers’ clusters in villages in the Red River Delta in northern Vietnam. Although these innovations resulted in value creation and increased incomes, they also often gave rise to negative environmental or social consequences that were in conflict with broader development goals, such as poverty alleviation and sustainable development. Innovation that meets these goals is broadly termed responsible innovation and increasingly made explicit in western innovation debates. This chapter seeks to conceptualize responsible innovation in a very different context; that of informally organized small producers’ clusters in a developing country (Vietnam). We employed grounded theory to investigate the outcomes of innovations with a view to developing a set of objective operational criteria for evaluating responsible innovation. However, we found that such an ‘outcomes’ approach posed epistemological problems when it came to defining criteria and objectively measurable threshold values. We also found that objective measurements imposed a normative framework on the communities we were studying: one that villagers did not necessarily recognize or concur with. As an alternative, we came to conceptualize responsible innovation from a behavioral perspective and modeled it as a dynamic societal process that involves innovators acknowledging responsibility in the resolution of societal conflicts resulting from the harmful outcomes of innovation. This model enabled us to differentiate between responsible and what it is not at the village level.