Thomas Friedli

Behavioral implications of the transition process from products to services

Purpose – This paper attempts to provide a better understanding of behavioral processes and their impact on the transition from products to services.Design/methodology/approach – Case studies are the main tool of theory development. The paper focuses mainly on German and Swiss product manufacturers, whose products require a high level of customer investment.Findings – The objective was merely to explain behavioral dimension of transition. The paper indicated seven behavioral processes which play a critical role during the transition. Managerial service awareness and role understanding, as well as employee service awareness and role understanding seem to be the right triggers to change the behavioral processes in the desired manner.Research limitations/implications – The main focus was on the German and Swiss machinery and medical equipment manufacturing industries, and the remarks are limited to these sectors.Practical implications – The key managerial implications and recommendations can be formulated as...

Success factors for achieving high service revenues in manufacturing companies

Purpose – Despite the proven benefits of an extended service business, most manufacturing companies find it extremely difficult to increase service revenues successfully.Design/methodology/approach – An extensive benchmarking project was conducted with a variety of firms in order to gain a better understanding of success factors aimed at increasing service revenue in manufacturing companies. By reviewing the first benchmarking findings with companies that struggled to achieve a high level of service revenue, additional insight into how service revenue is influenced by the success factors was gained.Findings – This paper attempts to provide a better understanding of the necessary changes in a firms activities, organizational structure and culture, and to demonstrate the impact of these factors on service revenue increases.Research limitations/implications – The findings have some clear limitations. The main focus was on the German and Swiss machinery equipment manufacturing industries, and remarks are lim...

Innovation of product‐related services

Purpose – This paper aims to answer the following two research questions: “What antecedents are required for the innovation of product‐related services?” and “How do the antecedents differ for product‐related services developed during the product development process or during the product usage?”Design/methodology/approach – A multi‐case research design was employed.Findings – Involvement of frontline employees, information sharing, multifunctional teams, funnel tools, information technology, internal organization, and training and education have a similar impact on the success of integrated and separated service innovations. Presence of service champion, autonomy of employees, market testing, and market research have a positive effect on separated, but a negative impact on integrated service innovations. The strategic focus, external contacts, availability of resources, and management support are positively associated with both innovation types, but their importance is essentially higher for separated tha...

Analysis of the Implementation of Total Productive Maintenance, Total Quality Management, and Just-In-Time in Pharmaceutical Manufacturing

In the pharmaceutical industry, systems for improving operational effectiveness and efficiency are becoming more and more popular. In this paper, developments in the industry’s improvements in operational effectiveness and efficiency have been analyzed. A holistic model is presented which builds the basis for the presented study results. The study includes data gathered from pharmaceutical production sites in surveys in 2004 and 2009. The analysis is divided according to the four sub-systems: Total Productive Maintenance, Total Quality Management, Just-in-Time, and the Management System. For each sub-system, key performance indicators and associated elements (practices and instruments) from 2004 to 2009 are investigated. The data indicates that the industry did make continuous steps towards “Excellence in Operations” between 2004 and 2009. Pharmaceutical companies took control over their former low asset utilization and managed to improve the efficiency of their quality systems; however, they are still far away from having any kind of “continuous flow”, smooth production scheduling or make-to-order manufacturing. It can be said that most of the companies are still working on the effectiveness side rather than focusing on the efficiency side.

Lean management practices in the pharmaceutical industry

Increasing market rivalry and an expected decrease in growth rates are putting ever greater pressure on operational performance in the pharmaceutical industry. As a consequence, lean manufacturing practices such as Total Preventive Maintenance (TPM), Just-in-Time (JIT), Total Quality Management (TQM) and Human Resource Management (HRM) seem to be attracting an increasing level of managerial attention. To the best of our knowledge, the existing literature remains sparse on the effect of lean manufacturing practices on operational performance in the pharmaceutical industry. To close this research gap, this article explores the effects of lean practices on operational performance in the pharmaceutical industry. Our results indicate that typical contextual factors such as plant size and company type have an influence on the degree of implementation of lean practices. We also provide evidence that, even in an industry with so many regulatory requirements, lean practices positively affect operational performance. Finally, the results suggest that operational performance is positively associated with overall company performance.

Digging deeper into supply risk: a systematic literature review on price risks

Purpose – The purpose of this paper is both to provide an overview of existing knowledge pertaining to the management of price risks in manufacturing companies from an operations management (OM) perspective and to establish an agenda for future research. Risks related to the purchase prices of industrial consumption factors (raw materials, semi-finished/finished goods, auxiliary materials and operating materials) exert an increasing influence on manufacturing companies’ business continuity and economic sustainability. Design/methodology/approach – A systematic literature review was conducted following the literature search approach of vom Brocke et al. (2009). In total, 138 relevant articles were identified, analysed and synthesised. Findings – The literature review reveals that the existing OM literature devotes little attention to price risks and their management in manufacturing companies. In particular, further empirical investigation is required to support decision-making in various risk contexts. So...

Management globaler Produktionsnetzwerke : Strategie, Konfiguration, Koordination

Klassische auf den Einzelstandort bezogene Optimierungsansatze fur produzierende Unternehmen haben ihre Grenze erreicht. Global aufgestelle Unternehmen produzieren heute an weltweit verteilten Produktionsstandorten. Dies stellt das Management vor neue Herausforderungen, bietet aber auch Chancen zur Verbesserung der Produktionseffektivitat und -effizienz. Notwendig ist daher eine umfassende Betrachtung des gesamten Produktionsnetzwerkes. Dieses Buch beschreibt einen integrierten Ansatz zur globalen Produktionsoptimierung. Neben der Frage der strategischen Anforderungen an das Netzwerk werden dabei das optimale Design des internationalen Produktionsverbunds und die Optimierung der entsprechenden Koordinationsaktivitaten dargestellt.

Strategisches Management globaler Produktionsnetzwerke

Kurzfassung Zum Management globaler Produktionsnetzwerke bedarf es eines integralen und ganzheitlichen Ansatzes. Die Basis hierfür liefert eine neu entwickelte Methode, der sog. Network Quick-Check, mit dessen Hilfe sich die drei wesentlichen Ebenen eines Produktionsnetzwerks – Strategie, Konfiguration und Koordination – analysieren lassen. Die Betrachtung der in jeder Ebene zentralen Entscheidungsdimensionen bildet den Ausgangspunkt für die Definition von Optimierungsmaßnahmen, welche Netzwerkmanager in der (Weiter-)Entwicklung ihres Produktionsverbunds unterstützen.

Linking network targets and site capabilities: A conceptual framework to determine site contributions to strategic manufacturing network targets

Purpose – To cope with the increasing challenges of globalisation, various manufacturing companies have established intra-company manufacturing networks. The purpose of this paper is to link the strategic network targets (i.e. accessibility, thriftiness represented by economies of scale and economies of scope, mobility, and learning) with the capabilities and characteristics of the constituting sites of the manufacturing network and thus facilitate the identification of mismatches and the discussion of possible development paths for the network. Design/methodology/approach – The authors derive a conceptual framework from the literature which is tested with a single case; a manufacturing network consisting of eight manufacturing sites. Case data were collected based on 24 interviews with operations managers at network level and a standardised online survey among the sites’ management teams. Findings – Results indicate that manufacturing network and site levels need to be related when striving for a fit bet...

Success factors for collaboration management in manufacturing companies

Despite the potential benefits of collaboration in a dynamic business environment, many manufacturing organisations find it extremely difficult to build alliances successfully. There is a lack of methods and frameworks for establishing and managing collaboration in traditional manufacturing environments. This often leads to failures, decreasing motivation and can ultimately weaken competitive position in the market. A benchmarking project was undertaken with a variety of firms to explore and gain a better understanding of factors that would improve the likelihood of collaborative success. This paper provides an understanding of the necessary changes required in a firms activities, its organisational structure and culture. It demonstrates the impact of these changes on successful collaborations. Through an analysis of the required changes, it is shown how companies can adopt six empirically tested factors to bring about a successful collaboration management. These success factors identified in the benchmarking project offer guidance for managers seeking to successfully collaborate in todays business landscape.