Manufacturing Strategy Decisions Research Articles

A maturity stage model to explore repercussions of green manufacturing for manufacturing strategy decision areas

PurposeThe researchers maintain that when a firm tackles “green concerns,” there could be several repercussions for manufacturing strategy decision areas (MS DAs). However, such repercussions are complex and have not been widely researched. This paper aims to propose a conceptual maturity stage model to study the configuration of MS DAs.Design/methodology/approachFirms exhibit different levels of “green” maturity in their journey and tend to make different choices in green technologies (GTs), resulting thereby in other compatible choices in their MS DAs. Extant literature has been synthesized in this light to build a conceptual maturity stage model in two steps. First, what is the GT that is involved! The second step discusses the possible implications of such a GT for MS DAs. Further, such information is organized according to a firm’s four maturity stages for all GTs that may be applicable. A case study has been undertaken to illustrate the model.FindingsThe results show good potential for the proposed conceptual model to examine the repercussions of MS DAs in industrial cases, and thereby develop relevant theories on this subject.Research limitations/implicationsThe proposed model was applied to a paint manufacturing company, which potentially limits the findings’ generalizability to other industries and/or geographies.Practical implicationsThe proposed conceptual model can help managers assess the maturity stages of manufacturing to determine suitable adjustments that may be required in configuring MS DAs to improve their positions.Originality/valueThis is among the very few models to explore the repercussions of green manufacturing for MS DAs according to the four-stage maturity model.

Manufacturing strategy in multi-plant networks – a multi-case study on decision-making authority, network capabilities and competitive advantages

ABSTRACT Modern manufacturing firms are globalised organisations that regularly operate multi-plant networks. Network configuration elements, e.g. plant roles or the multi-plant strategy, were intensively examined by scholars. Another complex and less studied task is coordinating the manufacturing strategy of the plants in the network. Efficient distribution of competences and decision-making authorities is crucial for decision-makers. An appropriate level of autonomy has to be found that determines which decisions are centralised and which are delegated to the decentralised plants. The interaction of network coordination and configuration with network capabilities and competitive advantages is examined in this article using an empirical multi-case study. We focus on how manufacturing strategy decisions are made in the intra-firm network and how the distribution of decision-making authorities affects the network capabilities. Results indicate that both network coordination and configuration affect network capabilities, which in turn affect competitive advantages. Network thriftiness reduces costs, while mobility and flexibility promote delivery capabilities and learning effects improve quality and costs. A conceptual research model is developed as a starting point for future studies in this emerging research area. Besides, managers are provided with guidance on the efficient design of distributed manufacturing networks to achieve the desired competitive advantages.

'Recycle versus buy' scenarios in manufacturing strategy decisions: an empirical study

'Recycle versus buy' scenarios in manufacturing strategy decisions: an empirical study

'Recycle versus buy' scenarios in manufacturing strategy decisions: an empirical study

This paper examines the 'recycle versus buy' decision-making process, which is becoming a critical decision area for companies operating in the plastics, paper, rubber and metal industries. Via the use of scenario analysis, applied in an in-depth case study that uses plastic buckets for packaging, decision alternatives and uncertainties are considered. The scenario analysis produced nested scenario logics, comprising four bases: volume of used-material collected; cost of used-material collection; cost of virgin material; and performance of new product made with high/low ratio of virgin material to recycled material, resulting in 16 possible scenario combinations. For each combination, market, technical and financial feasibility are examined. For each scenario, a single decision alternative was selected from these four possible decision alternatives: full backward integration, taper integration, partial integration and no integration.

Exploring Sustainability Implications for Manufacturing Strategy Decision Areas-A New Model with a Case Study

There is a growing need for the firms to factor the sustainability concerns in developing their manufacturing strategy (MS). MS content comprises of competitive priorities and decision areas (DAs) of manufacturing and MS process generally revolves around two approaches to strategic reconciliation: an inside-out approach (resource based) and the outside-in approach (stakeholder requirements). There is only a handful of models in MS incorporating sustainability concerns. Few models that consider sustainability do not factor the resource-based view. This paper proposes a new model to include both resources-based view and stakeholder requirements of strategic reconciliation in MS while incorporating sustainability. A case study is conducted to validate the relationships depicted in the proposed MS model and also to derive insights on sustainability implications of MS DAs.

Made in China 2025 and manufacturing strategy decisions with reverse QFD

Made in China 2025 is the Chinese version of Industry 4.0 and has the aim of enhancing the country's manufacturing capabilities. Different from Industry 4.0, Made in China 2025 has had a weak starting point and is facing the challenge of improving several competitive capabilities simultaneously, i.e., innovation, quality, ecology, etc. Hundreds of policies have been released without a structured or systematic priority, design or promotion. This paper provides a comprehensive review of the policies of Made in China 2025, focusing on the relationships between competitive capabilities and action plans in manufacturing. We analyze how the action plans contribute to capability improvement, utilizing a strategy formulation model associated with the forward process and feedback process. A new method, which we called the Reverse Quality Function Deployment, is proposed to complete the analysis of the feedback process. The results show that different competitive capabilities have been given different priorities in the policies. We find that there are some gaps when comparing our results to the targets of Made in China 2025. How to close the gaps was analyzed with the application of the new method. Several suggestions on the implementation of Made in China 2025 are proposed, which can also be applied to the manufacturing strategy decisions in other developing countries.

An extended approach for manufacturing strategy process base on organization performance through Fuzzy QFD

This paper provides an extended model base on the Quality Function Deployment (QFD) framework to develop a manufacturing strategy process through linking manufacturing competitive factors with organization performance. Performance factors will guarantee alignment between manufacturing strategy and organization strategy. Performance analysis using entropy methods and the improvement ratio in all stages of this model is an advantage. A further advantage of model is the quantity control of correlation between manufacturing competitive factors, which causes factors to achieve higher rank such that their development will proceed the development of other competitive factors and increase the values of selected performance factors; similarly, quantity control of the correlation between manufacturing strategy decisions will increase effectiveness of this model in prioritizing manufacturing strategy development. The proposed model in this paper is implemented in an automotive rubber profile manufacturer in Iran. The results of application of the model are provided at the end of the article.

Semiconductor manufacturing strategy: Where in the world to locate a fab or cleanroom?

Abstract The global market for advanced technology manufacturing assets is becoming ever tighter, compelling semiconductor companies, including OSATs (outsourced semiconductor assembly and test), IDMs (integrated device manufacturers), and foundries, to carefully explore all available options when planning manufacturing operations relating to fabs, tools, and cleanrooms. Despite the semiconductor industry's optimistic growth forecasts, global uncertainty generated by the continuing trade wars between the U.S. and China is causing anxiety among advanced technology companies and forcing them to constantly rethink their manufacturing strategies – buy vs. build, best fab location, risk mitigation, local incentives, etc. In 2018, semiconductor companies showed increased renewed interest in U.S.-based manufacturing in the midst of a continued lack of 200mm and 300mm capacity. As we have seen with the recent sale of Texas Instrument's 150mm / 200mm facility in Greenock, UK to Diodes Incorporated and Vanguard International Semiconductor Corporation's acquisition of GLOBALFOUNDRIES' 200mm Fab E3 in Tampines, Singapore, 200mm fabs are still in very high demand and manufacturers are becoming increasingly proactive as they look to expand capacity. In 2019, infrastructure-rich cleanroom manufacturing assets are going to continue to play an essential part in shaping these strategies to ensure global competitive advantage as more wafers are needed and more facilities are being built worldwide, particularly in China. Despite a slowdown in semiconductor mergers and acquisitions activity, the global semiconductor market will continue to consolidate as the manufacturing needs of advanced technology companies evolve with market changes. This has put a strain on manufacturing space and resulted in a number of new capital projects and expansions that may become difficult to fulfill in the current market. A shortage of existing manufacturing space means cleanrooms and operational fabs will sell at a premium. Many companies are also looking at greenfield sites with local government incentives playing an active role. Running in tandem, there is still a shortage of used and new production tools with lead times in excess of one year to purchase new fabs from OEMs (original equipment manufacturers) or equip new fabs. Drawing on some 20 years of infrastructure-rich manufacturing asset dispositions and acquisitions as well as a series of real-world fab transaction case studies, ATREG Founder, President and CEO Stephen M. Rothrock will provide insights into how to best approach manufacturing strategy decisions in the context of today's global semiconductor landscape.

A probabilistic fuzzy analytic network process approach (PROFUZANP) in formulating sustainable manufacturing strategy infrastructural decisions under firm size influence

This paper explores the probabilistic fuzzy analytic network process (PROFUZANP) approach in identifying the content of manufacturing strategy infrastructural decisions that attempt to integrate a sustainability and classical manufacturing strategy framework, in the presence of firm size as a relevant component in decision-making. Linguistic variables with equivalent triangular fuzzy numbers (TFNs) are used to elucidate the judgment of elements in pairwise comparison in the framework of the analytic network process (ANP). The ANP effectively handles the complexity of decision-making brought about by the subjectivity and relationships among components of the decision model. Integration of expert judgments conducted by introducing a normal probability distribution in each pairwise comparison with mean equal to the geometric mean of the judgment and standard deviation equal to a predefined perturbation of judgment around the mean. Pre-selected experts in manufacturing strategy and sustainability were asked to elicit judgment in pairwise comparison. Results show that the content of the infrastructural decisions of manufacturing strategy remains constant regardless of the types of firm size. However, the priority of each decision to the goal, which can be translated as the priority of implementation of each policy, varies between large firms and SMEs. The main contribution of this paper is a novel approach that holistically captures the judgmental uncertainty of individual decision-makers and the uncertainty of group decision-making.

The Impact of Firm Size in the Formulation of Sustainable Manufacturing Strategy Infrastructural Decisions Under Uncertainty

This paper adopts a fuzzy analytic network process approach in identifying the impact of the presence of firm size on the content of the manufacturing strategy infrastructural decisions that integrates the classical manufacturing strategy framework and the notion of sustainability. Linguistic variables with equivalent triangular fuzzy numbers were used to elucidate judgment of elements in pairwise comparison matrices within the context of the analytic network process. Analytic network process effectively handles the complexity of the decision-making problem resulting from the subjectivity and interrelationships inherent among decision components. Domain experts in manufacturing strategy and sustainability were asked to elicit judgment in pairwise comparisons. Results show that the content of the infrastructural decisions of manufacturing strategy remains constant regardless of the presences of firm size component. However, the priority of each decision to the goal which can be translated as the priority of implementation of each policy varies with the presence of firm size.

Homogeneity of manufacturing choices in subcontractor SMEs

Purpose– The purpose of this paper is to investigate the choices made in manufacturing decision categories by subcontractor small- and medium-size enterprises (SMEs) and determines if subcontractor SMEs make homogenous manufacturing choices.Design/methodology/approach– A literature review was used to develop theoretical propositions. A multiple case study with 19 subcontractor SMEs was conducted.Findings– Factors that might lead to homogenous choices in the manufacturing strategy decision categories were formalised into four theoretical propositions. The propositions were based on new institutionalism factors as well as SME factors. The findings reveal that there is considerable heterogeneity across the subcontractor SMEs in the various manufacturing decision categories. However, there are similarities between some manufacturing choices. This can partly be explained by the proposed factors and partly by other factors, such as SME characteristics and process choices.Research limitations/implications– The study reinforces the need for more research that is focused on manufacturing decisions and choices in SMEs. All cases were of Swedish SMEs belonging to three different industries, potentially limiting the generalisability of findings to other industries or countries.Practical implications– This study highlights the importance of the different choices made considering manufacturing and the factors influencing those choices. This provides guidance for managers when they make manufacturing choices in various decision categories.Originality/value– By addressing new institutionalism, SME characteristics and decision categories in the same study, the author provides new insights into the categories of manufacturing decisions.

Structural Decisions of Sustainable Manufacturing Strategy with Fuzzy Analytic Network Process (FANP)

This paper proposes the use of fuzzy analytic network process (FANP) in identifying the content of the structural decisions of manufacturing strategy that integrates sustainability and the classical manufacturing strategy framework, considering firm size as a relevant component in decision-making. Fuzzy set theory elucidates judgment through linguistic variables while analytic network process (ANP) handles the complexity of the decision-making brought about by subjectivity and relationships among components in the decision problem. A group of experts in manufacturing was tasked to elicit judgment in pairwise comparisons following in the methodology of the ANP. Results also show that structural decisions that support sustainability integrate backward supply chain. This supports existing approaches particularly on sustainable supply chain and green purchasing. The contribution of this work lies in adopting a multi-criteria decision-making (MCDM) framework that identifies the content of the structural decisions of a sustainable manufacturing strategy.

Structural Decisions of Sustainable Manufacturing Strategy with Fuzzy Analytic Network Process FANP

This paper proposes the use of fuzzy analytic network process FANP in identifying the content of the structural decisions of manufacturing strategy that integrates sustainability and the classical ...

An Unified Analytical Network Process (ANP) and Data Envelopment Analysis (DEA) Approach for Manufacturing Strategy Decision

Manufacturing strategy research aims at providing a structured decision making approach to improve the economics of manufacturing and to make companies more competitive. The overall objective of this paper is to investigate how manufacturing companies make use of different manufacturing practices or bundles of manufacturing practices to develop certain sets of capabilities, with the ultimate goal of supporting the market requirements. The authors propose a technique that can effectively take managerial preferences and subjective data into consideration, along with quantitative factors. The tool that is proposed here relies on the use of a more effective version of the Analytical Hierarchy Process (AHP) called the Analytical Network Process (ANP) to help integrate managerial evaluations into a more quantitatively based decision tool, data envelopment analysis (DEA). In this paper, these two techniques, when used together, can provide subjective and objective evaluations for manufacturing strategy decision makers. An illustrative example provides some insights into the application of this methodology. The research contributes to several insights to the research area of manufacturing strategy and to practitioners in manufacturing operations. A model that investigates process improvement investments, assuming that alternative process improvement initiatives exist, is then presented.

Choices in manufacturing strategy decision areas in batch production system – six case studies

The configuration of a production system can be described by the choices a firm makes in its manufacturing decision areas. Manufacturing strategy literature lacks empirical research in manufacturing decision areas. The current paper is an exploratory study using six case companies on alternative configurations that can exist in a batch production system. Choices made in decisions such as layout, shop floor control, etc., were found to be similar for all six companies that use batch process. However, there were a number of decisions that were found to be non-process specific and are influenced by product complexity, important competitive priorities, strategic orientation of manufacturing, top management decisions and the size of the company. The paper concludes with managerial implications and future research directions.

Configuration of manufacturing strategy decision areas in line production system: five case studies

The objective of this research is to study the configuration of decisions in manufacturing decision areas for a line production system. A case study approach is used by analyzing the decision choices selected by five case companies that satisfy characteristics of line production system. The paper identifies decision choices specific to line shop as well as decisions that are influenced by non-process specific factors such as competitive priorities (order winner), strategic orientation of manufacturing (stages in H–W model), top management decisions, and size of the company. Findings on several decision choices are new to manufacturing literature. These research findings should be helpful to practitioners and researchers.

Research of Manufacturing Strategic Decision Based on the Competitive Strategic Situation Cognition

This paper studies manufacturing strategic based on the market orientation of strategy. This paper proposes the decisions of manufacturing strategy of companies are based on the managerial cognition of the competitive strategic situation. The respective and interaction effects of the two key factors, the trend and the existing competitive priority, on manufacturing strategic decisions. Empirical research was carry out based on the International Manufacturing Strategy Survey 2005. Research shows that the manufacturing efficiency, manufacturing input and manufacturing service are affected by the two key factors jointly.

Improvement of organizational efficiency and effectiveness by developing a manufacturing strategy decision support system

PurposeTo develop a model for manufacturing strategy formulation and implementation to help the managerial body of a corporation improve the efficiency and effectiveness of their company.Design/methodology/approachThe quality function deployment (QFD) technique is used in the formulation process to provide the basis for selection between options in each of the formulation stages. The proposed model consists of six stages starting from the business strategy formulation, functional strategy formulation, manufacturing priorities formulation, the generation of action plans and the suggestions of the detailed tasks of each action plan, and ending up with the evaluation of the developed strategy. QFD capture software is used to form the matrices needed for the proposed model.FindingsIt was found that the proposed QFD approach is easy to apprehend, clear to be applied and leads to dependable manufacturing strategy. Accordingly, this model is recommended to be used in other functional areas in addition to manufacturing to develop their functional strategies.Research limitations/implicationsAfter the application of this model, the quality of management in this company was improved and recommended for other companies.Originality/valueThe paper provides a QFD approach that can be applied to any company by their managerial body in order to improve the efficiency and effectiveness of their company.

Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems

For any manufacturing firm, theory suggests that the firm is better off if the manufacturing planning and control (MPC) system supports the market strategy as well as the manufacturing strategy. Typically, the strongest link between market requirements and manufacturing strategy concerns the process choice, i.e. choosing a manufacturing process that supports a firm's competitive priorities. The general aim of this paper is to examine the role of the MPC system in a manufacturing strategy. More specifically, the purpose is to link market requirements, product characteristics, and the process choice to the MPC system. A special focus will be placed on the link between the process choice and the design of the MPC system. Two key factors are identified as major processspecific elements influencing the MPC system design: the number of planning points, and set-up times at individual resources. The process choice affects the lower planning levels of the MPC systems, where the physical reality of the plant becomes apparent. This is especially true for production activity control, but also for requirements planning (material and capacity). Concerning the MPC system design for longer-term planning, such as sales and operations planning and master scheduling, the impact from market requirements and product characteristics dominates.

Differences in manufacturing strategy decisions between Japanese and Western manufacturing plants: the role of strategic time orientation

AbstractIn part, cultural differences between Japan and the West have been cited as contributing to fundamentally different manufacturing strategy orientations. One cultural difference is psychological attitudes toward time, which may lead to different emphases on long‐term and short‐term goals and objectives, i.e., differing strategic time orientations. This paper reports on the analysis of data from an international research study of manufacturing strategy that gathered data from 600 companies in 20 countries. Data on the rates of adoption of strategic manufacturing practices and links between corporate and manufacturing strategy were analysed to test for differences. The results show strong contrasts between Japan and the West and are consistent with a difference in strategic time orientation between the two regions.