Stefano Tonchia

Manufacturing flexibility: A literature review

In this article an attempt is made to classify the vast literature regarding manufacturing flexibility; the aim is to contribute to the conceptual systemization of the debate, whose richness plays witness of the abundance of themes and the difficulty of obtaining a unitary and univocal framework. The literature on manufacturing flexibility is analysed according to a scheme which considers six different aspects: (1) definition of flexibility, (2) request for flexibility, (3) classification in dimensions of flexibility (the authors group the various classifications proposed according to different logics: horizontal, vertical, temporal, by the object of the variation, mixed), (4) measurement of flexibility, (5) choices for flexibility, (6) interpretation of flexibility.

Lean organization, management by process and performance measurement

Shows how the pursuit of excellence and the organizational change required by lean production leads to a management‐by‐process organization, and that management by process influences the performance measurement system (PMS). Uses Zanussi‐Electrolux ‐ the biggest European producer of domestic appliances ‐ as a case study example. Provides a detailed analysis of the organizational change and its effects on performance measurement.

Strategic planning and firms' competencies

The traditional strategic model of industrial organization is criticized by the upholders of the theories that regard the resources and competencies of a firm as the source of its competitive advantage. This article presents these new strategic dictates in a critical form, examining the reasons that justify the striking interest being taken by researchers and managers, but also the limits of those principles, some intrinsic others that can be overcome by an integration with tradition. As a consequence, the article presents a framework which attempts to relate the constituent elements that distinguish the two main strategic theories and shows that both must be considered for strategic planning and performance management.

Performance Measurement Systems

This chapter introduces the Performance Measurement Systems (PMS), the most renowned model being the Balanced Scorecard. A PMS combines and organises the performance indicators in order to achieve performance measures. Their evolution is traced over the years until the revolutionary changes provided by the adoption of Business Intelligence technologies came into play. Issues on the PMS refer to their characteristics (in terms of formalisation of indicators and measurement processes), the architectures used and the main interfaces (with the accounting system, the ERP production management system, and strategic planning). The main PMS models are then illustrated and classified.

New Trends in the Supply Environment

Present‐day competitiveness has brought about a marked evolution in supply management, imposing on firms an increasingly close interaction with suppliers. The achievement of high‐level performances in terms of cost, quality and time to market appears ever more dependent on the quality and effectiveness of the supply network. This transformation modifies the traditional adversarial model of the buyer‐supplier relationship and fosters the reconfiguration and integrated management of the supply chain. At the same time, competitive dynamics and current global competing models encourage the extension of traditional sourcing areas. Analyses these evolutionary aspects of the current supply environment and examines the new role of the purchasing function.

Development and validation of business process reengineering (BPR) variables: a survey research in Slovenian companies

Business Process Reengineering (BPR) literature is based primarily on case studies and there is a lack of rigorous wide-ranging empirical research covering all its aspects. This paper presents the results of a survey research carried out in 73 medium and large-sized Slovenian manufacturing companies. Seven crucial areas were identified based on a synthesis of BPR literature, which must be practised to achieve effective process reengineering: management commitment, education & training, team work, BPR project characteristics, employee cooperation, information technology support, and levers & results. Variables have been constructed within these areas, using Likert scales, and statistical validity and reliability analyses. These developed variables can be important both for understanding BPR and in terms of the descriptive statistics, also reported in this paper. What emerges is the crucial importance of process orientation, goal setting, and top management commitment. Furthermore, these variables can be helpful for further research aimed at investigating BPR and its linkages with other areas, such as strategy, performance measurement, etc.

Linkages between manufacturing strategy, benchmarking, performance measurement and business process reengineering

An empirical analysis is presented for researching linkages between manufacturing strategy, benchmarking, performance measurement (PM) and business process reengineering (BPR). Although the importance of these linkages has been described in conceptual literature, it has not been widely demonstrated empirically. The survey research was carried out in 73 medium and large-sized Slovenian manufacturing companies within the mechanical, electro-mechanical and electronic industries. The resulting data were subjected to reliability and validity analyses. Canonical correlation analysis was used to test six hypotheses. The results confirmed the need for a strategically-driven BPR approach and the positive impact of performance measurement on BPR performance.

An instrument for quality performance measurement

Abstract An instrument for evaluating the quality performance measurement level and the quality performance results is presented. The instrument is based on the classification of quality in categories and classes; for each of them, the objects of the evaluation, the methodologies, techniques and indicators most useful and used for the quality measurement and control are described. The instrument was tested in two large Italian manufacturing companies (Eaton Controls S.p.A. and Zanussi Elettrodomestici S.p.A.) and gave satisfactory results for the set up and improvement of the quality performance measurement and control system, and permitted a more effective benchmarking in relation to the quality performances.

Linking performance measurement system to strategic and organisational choices

In this paper, the connections between the operations PMS and the environment in which it operates are studied, through an analysis of the strategic and organisational choices made by major manufacturing firms, and the consequent definition of the PMS characteristics and indicators. The empirical basis for this study is the largest survey on PMS ever conducted in Italy. Useful PMS design specifications are furnished, related to the type of strategy adopted, the technology and managerial practices selected, and the organisational context. Links with the firms performance results are also presented.

An integrated production performance measurement system

Presents an original integrated production performance measurement system (IP2MS) based on a model able to examine simultaneously several production performances of different operation centres of a firm. The need for an integrated examination of the performances is of crucial importance for today’s manufacturers in order to achieve a competitive advantage. Obtains a quantitative and homogeneous appraisal of the production performances; furthermore, identifies activities responsible for the major differences between actual and desired levels of performance. The proposed model has been empirically tested in some significant medium‐large enterprises of Northern Italy.