Robert N. Mefford

The Economic Value of a Sustainable Supply Chain

The economic rationale to operate a global supply chain in a sustainable manner is developed. Arguments are made based on marketing, finance, and production theories that by engaging in socially responsible behavior the firm will increase sales, decrease costs, reduce financial risk, and increase profits, which will ultimately increase returns to the firms shareholders. A model is developed of the mechanism by which modern production methods such as lean production and quality management result in sustainable corporate behavior that, in the long run, translates into higher stock valuations. The production effects cause marketing and financial risk effects that are complementary, and all three channels of influence synergistically result in higher stock values in the model. These effects also provide important benefits to other stakeholders of the firms including employees, customers, the environment, and the community. An important ethical issue in global supply chains is working conditions in foreign plants often leading to allegations of sweatshop labor conditions. This issue is used to illustrate how lean production practices can affect consumers, employees, and financial risk. Conclusions from the sweatshop labor issue are shown to apply to other sustainability issues as well.

Improving service quality: Learning from manufacturing

Abstract As economies of industrialized countries become ever more dominated by services and competition in service businesses increasingly is global, many service firms are realizing that quality will be the major determinant of their success. Yet producing consistently high quality in services has not received as much attention as in manufacturing firms. Characteristics of services have led many managers to believe that quality improvement methods used successfully in manufacturing are not applicable in service organizations. This paper will argue that this is not true and, in fact, approaches such as just-in-time, total quality management and work teams, suitably adapted, can work also in service firms. The importance of a proper service philosophy and strategy is crucial to establishing high quality and continual improvement in services. How a firm can develop this philosophy and the programs that support it, are discussed with examples of high quality service organizations cited.

Quality and productivity: the linkage

Abstract Contrary to traditional assumptions, there does not neet to be tradeoff between quality and productivity. In fact they are complementary, and programs that exploit this insight and attempt to improve both simultaneously are the most successful. The positive linkages between quality and productivity are explored and types of joint improvement programs discussed. The applicability of these concepts and methods to services is also considered.

Transferring world class production to developing countries: A strategic model

Strategic reasons for firms to transfer world-class production methods and technology to developing countries are discussed and the importance of the management aspects of technology transfer are emphasized. A five stage model of the technology transfer process which bases the choice of the production process on the strategic objectives for the plant is developed. This is followed by the selection of the type of production system and the operational methods which will support it. The final stage of the model concerns the human resource policies needed to implement the operational decisions. The barriers and challenges of implementation are considered, and a socio-technical systems approach is proposed as a way to adapt to local conditions.

A framework for selecting and introducing appropriate production technology in developing countries

Abstract The challenges of managing production facilities in developing countries are illustrated, and a holistic model that conceptualizes the technology transfer process as proceeding in distinct phases and adapting to the host country business and cultural environment is proposed. The major activities of each phase are identified and the transitions between them discussed. The goal of this analytical framework is to assist the firm in selecting technology that is appropriate in the context of a host countrys environment. Recommendations are made to effectively transfer organizational forms and relationships between the parent firm and local personnel. The impact of the design and implementation of the management system and technology transfer on the firms productivity and quality performance is discussed and suggestions offered for operation of world-class manufacturing facilities in developing countries.

The productivity nexus of new inventory and quality control techniques

Abstract Inventory and quality decisions have traditionally been viewed as tradeoff situations where there are distinctly non-zero “optimal” amounts of inventories and defects. Recently, however, some firms have pursued explicit goals of reducing inventories to zero with just-in-time methods and trying to reduce defects to zero with Total Quality Control approaches. This would seem to contradict the economic logic of the tradeoff analysis. This paper develops an economic rationale for just-in-time and Total Quality Control by incorporating productivity effects into the traditional tradeoff analysis. Also, it shows how just-in-time and Total Quality Control are complementary programs, and that for the zero inventory and zero defect goals to be achieved, they must be used simultaneously. Dynamic linkages between the two models are incorporated into the analysis to demonstrate this.

Deployment of vendor capabilities and competences throughout the outsourcing process

Purpose – A vendors capabilities are recognized as one of the most important factors for success in outsourcing. However, there is a lack of understanding of how vendors manage their capabilities throughout the outsourcing process. With an aim to contribute to filling this existing gap, the purpose of this paper is to explore how vendors deploy their capabilities in order to win, run and renew the outsourcing contracts.Design/methodology/approach – The research question has been derived by integrating a resource‐based view theory with a model of a vendors process in outsourcing. A multiple‐case study of three contract electronic manufacturers has been employed to explore the research question.Findings – The results show that for achieving their outsourcing objectives, vendors use different capability mixes: the winning, the running, and the renewing. These mixes are created through utilization of different portfolios of competences (balanced, unit‐dominant, and versatile) and capabilities (permanent and...

Offshoring, lean production and a sustainable global supply chain

Seeking lower costs of production, many global firms have offshored production of products, parts and services. Results of these efforts have often disappointed in terms of quality, productivity and sustainability issues. Firms need to take a strategic view of offshoring decisions emphasising the role foreign production plays in their supply chain. Modern systems, such as lean production, require a tightly linked global supply chain. Lean production also fosters a sustainable global supply chain making practices such as sweatshop working conditions and environmental pollution incompatible and uneconomic.

Applying information technology in global supply chains: cultural and ethical challenges

Cultural and ethical issues that arise in applying new information technology to link global supply chains are discussed. The internet, private exchanges, global satellite linkages, RFID and other forms of new technology hold great promise in terms of allowing global supply chains to operate more efficiently and provide faster response to demand. However, these new technologies also present some cultural and ethical challenges to firms operating in the global environment. There may be varying views among countries on goals, decision-making approaches, information sharing and trust and many other cultural differences. Managers in different countries also may have varying perspectives of what constitutes ethical business conduct which may impact use of market power, pricing, confidentiality, environmental protection, working conditions and other areas. These cultural and ethical differences complicate the application of new information technologies and must be dealt with by firms developing global supply chains to maximise the benefits of IT. This paper will explore such issues and suggest ways through which managers can deal with them.

An analysis of vendor innovation capability in the contract electronics manufacturing industry

Abstract Limited academic research has been given to analysing the innovation capabilities of vendors in outsourcing contracts. This paper seeks to address this gap in the literature by enhancing our understanding of how the innovation capability of vendors is deployed to win, run and renew outsourcing contracts with their customers. Employing the resource-based view as a theoretical basis and undertaking in-depth case study analysis of three vendors in the electronic manufacturing services industry, the research shows that to achieve the outsourcing objectives of winning, running and renewing the contract, vendors can use different configurations of the competitive priorities of cost, quality, delivery and flexibility. The research aggregates the capabilities that influence the innovative capability of a vendor into the innovation-related capabilities (IRCs) of design, new product introduction and manufacturing. Three strategies are identified for vendors on how to deploy these IRCs, and a number of propositions are developed to indicate the suitability of the three deployment strategies for different operational contexts.