Patricia Deflorin

Challenges in the transformation to lean production from different manufacturing-process choices: a path-dependent perspective

The implementation of lean production remains popular among industrial companies, and the requirement for individualised steps in its implementation is widely accepted; however, research has not yet considered the different process choices available to the companies. The conclusions drawn from the automotive industrys mass production environment may be misleading, given the different conditions of many other industries. We therefore compare case data from a craft producer with the rich, case-study based literature of mass producer companies that highlight the transformation from mass to lean production. We derive a list of specific challenges a craft producer must approach using a different strategy than a mass producer. This study adds to the lean production theory by demonstrating how different manufacturing process choices influence the lean transformation process and its successful implementation. It provides specific propositions concerning the transformation to lean by considering the different processes of craft and mass production companies. Furthermore, the case study gives an in-depth understanding of the challenges a craft-oriented company faces when becoming lean.

Manufacturing flexibility through outsourcing: effects of contingencies

Purpose – The purpose of this paper is to examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility. In doing so, the authors study four types of manufacturing flexibility: product, mix, volume, and labor competence flexibility. Design/methodology/approach – Based on transaction cost economics theory and resource-based view of competitive advantage, the authors focus on economies of scale and scope, asset specificity, organizational learning, and dynamic capabilities as contingencies affecting outsourcing-flexibility relationships. Combining theoretically developed propositions with insights from case studies of 11 manufacturing companies that outsourced some portion of their manufacturing, the authors derive grounded hypotheses. Findings – Empirical results show that in some cases the effects of outsourcing on different types of manufacturing flexibility vary based upon some contingency factors. Research limitations/implications – Due to the qu...

The Lead Factory Concept: Benefiting from an Efficient Knowledge Transfer

This paper analyses the effectiveness of knowledge transfer between research and development (R&D) and intra-firm production units. Specifically, two distinct network structures are compared: the lead factory concept and traditional networks of R&D and production. Based on an analytical two-stage decision model for prototype and serial production, we highlight relevant factors that determine the relative advantages and disadvantages of the lead factory concept in comparison to a traditional network structure. In particular, the lead factory concept is more efficient than the traditional network if there are a high number of production plants, the adaptation costs for implementing the transferred prototype from the lead factory to the plant are low, the manufacturing costs for the prototype are high, and the manufacturing processes are not highly specific or knowledge intensive.

Benefits of internal manufacturing network integration

Purpose – The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level operational performance by taking into account the country context of the respective subsidiary. Design/methodology/approach – Subsidiary-level information is gathered using the sixth round of the International Manufacturing Strategy Survey, thus including 507 subsidiaries from 22 countries. Country context is operationalised using the Global Competitiveness Report published by the World Economic Forum. Findings – The findings reveal that internal integration has a positive influence on operational performance improvement. Country context acts as a moderator on this relationship: subsidiaries in less developed countries are only able to improve their effectiveness (quality, flexibility, delivery), while developed country subsidiaries gain both effectiveness and efficiency (cost, time) benefits from internal integration. Research ...

Exploiting the potential of manufacturing network embeddedness: An OM perspective

Purpose The purpose of this paper is to provide guidance in setting the level of autonomy (i.e. parental control) of plants in a network to enhance operational performance. In particular, the effect of autonomy on performance is analysed directly and indirectly through internal manufacturing network integration (MNI) and external supply chain integration (SCI) as two dimensions of manufacturing network embeddedness. Design/methodology/approach The analysis is based on data from 441 manufacturing plants in 17 countries. Data were gathered during the Sixth International Manufacturing Strategy Survey. Five main constructs were obtained after carrying out a confirmatory factor analysis: plant autonomy, internal MNI, external SCI, efficiency and effectiveness. Direct and indirect relationships among the constructs are tested through a structural equation model. Findings Higher levels of autonomy correlate with higher effectiveness and similar efficiency. However, lower autonomy leads to higher levels of manufacturing network and SCI, which enhance performance. Although not statistically significant, the analysis of the total effects reveals a mildly positive effect of autonomy on effectiveness and negative effect on efficiency, which requires further investigation. Research limitations/implications Further research could include headquarters’ perspectives or additional determinants (e.g. business strategy objectives). Practical implications Managers should set autonomy levels strategically: higher for effectiveness and lower for efficiency. However, lower autonomy can also strengthen internal MNI and external SCI, thus improving operational performance. Originality/value The concept of manufacturing network embeddedness highlights the importance of considering external supply chain and internal MNI in the same framework, as both dimensions can affect operational performance.

Linking QFD and the manufacturing network strategy: Integrating the site and network perspectives

Purpose The purpose of this paper is to integrate the manufacturing site and network perspectives for the purposes of strategy fulfilment, which has rarely been jointly discussed. By doing this, the site and network perspectives are broken into their constituents and linked to one another. Design/methodology/approach The paper provides qualitative research; it conducts a comprehensive literature review and merges the results with the concept of the quality function deployment to link the relevant dimensions. The developed framework is discussed based on a single case study. Findings The proposed framework relates the network and site perspectives in different dimensions, which range from the strategic dimension to the network and site dimensions. The paper, furthermore, offers the groundwork of developing relationship maps of the site and network capabilities, network configuration and coordination, and the structural and infrastructural dimensions. Research limitations/implications The paper contains a single case study and lacks foundation with a broader data set. Practical implications The results support the decision-making process of the manufacturing network managers who assess, design, and develop their manufacturing networks and attempt to gain transparency by using different levels of analysis. Originality/value The paper is the first attempt to show how the different network and site capabilities contribute to strategy fulfilment, to link the configuration and coordination dimensions of the manufacturing network level, and to link the structural and infrastructural dimensions on the site level. Thus, the authors add to multilevel research in operations management because the authors provide a combined framework for the network- and site-level analysis.

Prerequisite for lateral knowledge flow in manufacturing networks

Purpose The purpose of this paper is to analyse the prerequisites for lateral knowledge transfer in manufacturing networks. Design/methodology/approach Data stem from a single case study involving 26 interviews at the management level of a manufacturing network and a survey of 17 manufacturing plants in the network. Findings The requirements for lateral knowledge transfer between knowledge-sending and knowledge-receiving plants are similar strategic orientation, product portfolio similarity and process similarity. If the knowledge-sending and knowledge-receiving plants meet at least one of these requirements, then knowledge transfer is facilitated. Plant age, functional ties and geographical proximity do not seem to be important in lateral knowledge transfer. Research limitations/implications The results come from a single case study, limiting their generalisability. Further research should consider the influence of the network’s coordination mechanism on lateral knowledge transfer. Originality/value The paper investigates prerequisites for lateral knowledge transfer in manufacturing networks, shedding light on the fundamental factors that must be in place at the knowledge-sending and knowledge-receiving plants.

Trade-offs are not exogenous

Trade-offs between competitive priorities are often seen as exogenous – managers accept them as a given downside while simultaneously addressing multiple competitive priorities. However, some companies seem to face fewer trade-offs than others. The question is how companies reduce their trade-offs to successfully compete on multiple competitive priorities simultaneously. We address this question by theorising that bundles of action programmes are needed to reduce trade-offs between competitive priorities. We examine four Swiss manufacturing plants and show how the selection of action programmes influences the simultaneous competition on multiple competitive priorities. We show that successful competition on multiple competitive priorities does not happen by accident but is achieved by aligning competitive priorities, action programmes, infrastructural/structural changes and contextual factors.

Determinants of the Optimal Network Configuration and the Implications for Coordination

This paper develops a simulation model to compare the performance of two stylized manufacturing networks: the lead factory network (LFN) and the archetype network (AN). The model identifies the optimal network configuration and its implications for coordination mechanisms. Using an NK simulation model to differentiate between exogenous factors (configuration) and endogenous factors (coordination), we find low complexity of the production process, low transfer costs and high search costs, as well as a larger number of manufacturing plants benefit LFN compared to AN. Optimally coordinating the chosen network configuration of LFN might require to fully transfer knowledge in the short run but to transfer nothing in the long run. Moreover, a late knowledge transfer from the lead factory to the plants increases the pre-transfer performance of LFN but results in a larger performance drop, yielding a lower short-run but a higher long-run performance of LFN.

The Role of ICT-Based Information Systems in Knowledge Transfer Within Multinational Companies

This paper focuses on the internal network of multinational companies (MNC) and aims to investigate the role of information systems (IS) based on modern information and communication technologies (ICT) in transferring knowledge between different plants of the MNC, a subject still debated in the literature. To shed more light on this relationship, we propose that in the context of the MNC, the plant’s role in the knowledge network has to be taken into consideration.