Small Manufacturing Organizations Research Articles

Analysis of Challenges Facing SMEs in Implementing Suppliers Relationship

The strategic benefits of managing suppliers’ relationship cannot be over emphasized as more and more organizations have started to realize that they are becoming absolute reliant to the suppliers in terms of innovative power, security of supply, corporate social responsibility and cost saving. Managing strategic partnership is the top agenda of many organizations both in developed and developing countries. Despite the strategic benefits of the SRM not all companies are appreciating the value of building strong relationship with suppliers. This study investigated the challenges facing organizations in the whole process of creating competitive advantages through building strong supplier relationship. The study investigated sixty small manufacturing organizations in the country in order to gain better understanding of the typical challenges involved that hider ability of the companies to create competitive advantage. The study found that many organizations surveyed encounter difficulties in imitating, developing and managing the relationship. Out of the surveyed organizations less than 20 percent found to have business relationships with their suppliers and that relationship is not even strong to actually guarantee success to both parties. Lack of trust among the suppliers and manufacturers has been sighted by many as the main challenge facing organizations in managing suppliers’ relationship. Managers in these organizations believe that creating partnerships with suppliers is all about exposing the organizations to the competitors and hence lose ground in the market place. The other challenges mostly mentioned were; Corporate culture, Business strategy, leadership skills, technical and functional competencies among others. By using the exploratory factors analysis the findings were categorized into supplier-buyer interface challenges, Buyers own challenges, Suppliers own challenges and the size of the organizations.

Data science in the business environment: customer analytics case studies in SMEs

Purpose A vast amount of complex data is being generated in the business environment, which enables support for decision-making through information processing and insight generation. The purpose of this study is to propose a process model for data-driven decision-making which provides an overarching methodology covering key stages of the business analytics life cycle. The model is then applied in two small enterprises using real customer/donor data to assist the strategic management of sales and fundraising. Design/methodology/approach Data science is a multi-disciplinary subject that aims to discover knowledge and insight from data while providing a bridge to data-driven decision-making across businesses. This paper starts with a review of established frameworks for data science and analytics before linking with process modelling and data-driven decision-making. A consolidated methodology is then described covering the key stages of exploring data, discovering insights and making decisions. Findings Representative case studies from a small manufacturing organisation and an independent hospice charity have been used to illustrate the application of the process model. Visual analytics have informed customer sales strategy and donor fundraising strategy through recommendations to the respective senior management teams. Research limitations/implications The scope of this research has focused on customer analytics in small to medium-sized enterprise through two case studies. While the aims of these organisations are rather specific, they share a commonality of purpose for their strategic development, which is addressed by this paper. Originality/value Data science is shown to be applicable in the business environment through the proposed process model, synthesising micro- and macro-solution methodologies and allowing organisations to follow a structured procedure. Two real-world case studies have been used to highlight the value of the data-driven model in management decision-making.

Smart production systems: automating decision-making in manufacturing environment

Smart production systems (SPS) are manufacturing systems capable of autonomously diagnosing their health and autonomously designing continuous improvement projects, leading to the desired productivity improvement. The main component of SPS, developed in this paper, is the Programmable Manufacturing Advisor (PMA), which evaluates the system's health and calculates optimal steps for continuous improvement. The analytics of PMA are based on the theory of Production Systems Engineering (PSE); the numerics of PMA are based on PSE Toolbox, which implements the PSE methods. In this paper, the PMA-based SPS architecture with manager-in-the-loop is described, theoretical/analytical foundations of PMA are outlined, its software/hardware implementations are commented upon, and demonstrations of PMA-based SPS operation are provided using two production systems: automotive underbody assembly (large volume manufacturing) and hot-dip galvanisation plant (small manufacturing organisation).

The Network Manager and the Governance of Business Networks

Collaborating with other structures offers businesses – particularly smaller ones – excellent support to enable them to successfully face up to the challenges posed by globalised markets: by joining forces, creating systems and weaving networks of collaborative relationships with other businesses, SMEs can achieve the critical mass necessary to compete on global markets, because they can benefit from the “systemic” economies of scale that are typical of medium and large business, without losing any of the specificity that only a small manufacturing organisation can offer. However, the coordination and governance of a network is anything but simple, in view of the different types of distances (cognitive, psychological, cultural, geographical, etc.) that separate the businesses in the network. This explains the utility of a managerial figure outside the network (the Network Manager) with the ability to direct, coordinate and run the business network. This article focuses on the figure of the Network Manager, trying to define it by comparison with a few interesting managerial figures identified in the spectrum of management literature.

Implementing Lean Practices: Managing the Transformation Risks

Insightful implementation of lean is necessary for high-value manufacturing and is complementary to strategic decision making regarding manufacture. However lean can be difficult to implement in specific organisations. One of the difficulties is deciding which of the many lean tools to apply and when to apply them. A complicating factor is change management. Lean implementation is a transformational process and needs to support organisational development alongside process improvement. We develop a method based on risk management to identify which lean tools are most appropriate for a specific organisational setting. This permits the situational and contingency variables to be accommodated in the lean transformation. The method is demonstrated by application to a small manufacturing organisation with a high-variety low-volume business model. Thus it is possible, given contextual knowledge of the organisation, to predict which lean methods are most important in the situation. This enables the prioritisation of organisational effort towards lean methods that are relevant to the organisation at that particular time in its development.

Salesperson Influence on Product Development: Insights from a Study of Small Manufacturing Organizations

This research addresses three questions: (1) How do salespeople get their desired product modifications implemented within organizations? (2) What effect does salesperson trustworthiness have on the means they adopt to get product modifications implemented? and (3) What are the performance outcomes of the modified products? The results from a survey of 149 product managers in small manufacturing organizations suggest that two influence strategies—rationality and exchange—have a positive impact and that two influence strategies—coalition building and upward appeal—have an inverse impact on product modification implementation. The results also show that salesperson trustworthiness enhances the positive effects of rationality and exchange while mitigating the inverse effects of coalition building and upward appeal. Finally, the results show that product modification implementation has a positive effect on the product's performance in the marketplace. Collectively, the results suggest that salespeople should adopt the rationality and exchange strategies to get their desired product modifications implemented while also developing a reputation for trustworthiness and that it pays for organizations to listen to their salespeople.

Strategic handling to changes in Small Manufacturing Organizations in India

Strategic planning in small organizations is significantly different from large organizations. The process is informal in nature, as in most of the cases, the entrepreneurs are the sole strategic decision-makers. They manage the day-to-day operations and perform multiple tasks, chalking out a growth plan. The core necessity of strategic leadership is to view the market and opportunities. By design, small manufacturing organizations have the advantage of flexible economies of scale which the large-scale industries cannot create. There are many areas in which small organizations in India can take the role of an outsourced agent and provide support to large-scale industries. Small organizations have developed competence to work on uncertain conditions, largely to meet the demand fluctuations of their customers. While maintaining this skill, they should gradually create market focus. This can further enhance their capability and preparedness to deal with changes in the growing competitive market in India.

The role of organizational size in the adoption of green supply chain management practices in China

AbstractEconomic globalization, increasing resource scarcity and environmental degradation have caused green supply chain management (GSCM) to become an important competitive approach for organizations involved in international trade. Using survey data collected from over 200 China‐based organizations, we compare the implementation levels of five GSCM practices among small‐, medium‐ and large‐sized organizations in China. We find that medium‐ and large‐sized organizations are more advanced than their smaller‐sized counterparts on most aspects, but not necessarily all, of these GSCM practices. Future research includes possible studies on GSCM practices and promotion, especially targeting small manufacturing organizations. In addition, the influence of globalization and foreign direct investment, especially after China's entry into the WTO, could be more carefully examined. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Evaluating functional and cellular manufacturing systems: a model and case analysis

Cellular Manufacturing (CM) is increasing in importance as a philosophy with broad applicability in manufacturing organisations. In the most recent years, CM has faced criticism by the academic community due to its inferior relative to functional layouts (FL). This controversy has led to a lack of consensus among researchers on the appropriate manufacturing environment for CM. Important operational and environmental characteristics that may influence the preference of one system over another include equipment set-up and product processing times, as well as their ratios. Few research efforts have studied the behaviour of CM systems as a function of these parameters. This paper adopts a set of theoretical analytical models to investigate the relative of a CM system when compared to an FL manufacturing system. A large domain of values for set-up time and its ratio to processing time per unit, helps identify a performance mapping that may be used as a decision making framework by manufacturing managers. The criteria incorporated in the study include flow time, work-in-process and utilisation. The study provides insights into the conditions under which CM or FL, or both systems are feasible and also when one strategy outperforms the other. A simple case study from a small manufacturing organisation helps to evaluate the practical dimensions of the models and study results.

(Only) Just-In-Time: Japanisation and the `Non-Learning' Firm

This article examines the events within a small manufacturing organisation during a period of `adoption' by a larger customer organisation. The focus of the study concerns the nature and level of adaptation to Japanese manufacturing methods through the customer's influence. The particular circumstances of the two companies at the outset was an ideal scenario for what just-in-time lIT) and Total Quality Management (TQM) protagonists have termed `supplier adoption' and what others have defined as `emulation' within a process of `Japanisation'. The findings indicate that while there are pressures in working for a JIT customer, the outcome is not the mere reciprocation of JIT methodology within a supplier. Reasons for this lack of adaptation are proposed and implications for the debate on Japanisation and the supply-chain labour process are discussed.

Purchasing Intelligence Systems In Small Manufacturing Firms: Present Status and Future Direction

Information obtained from a Purchasing Management Intelligence System (PMIS) can provide the valuable input into a firm's strategic planning process. Because of scarce resources and the criticality of market mistakes, it is even more essential that small firms take advantage of this information resource. This articles reports the results of a study undertaken to determine the status of purchasing intelligence systems in small manufacturing firms. The results indicate that while purchasing intelligence systems exist in most small manufacturing organizations, their focus is on conventional rather than strategic activities. The results also indicate that numerous obstacles limit the effectiveness of purchasing intelligence systems. In addition to a lack of preparedness respondents identified procedural problems, a lack of resources and a weak effort/outcome relationship.

Time for quality?

This article looks at the problems encountered during the implementation of the national quality management standard BS 5750 in six small manufacturing organizations. It could be subtitled “a cautionary tale for managers setting out on the road to 5750 certification”.

The Dissociation of Water in Steel Tubes at High Temperatures and Pressures

The advent of higher pressures and temperatures in the modern steam generating plant has made necessary a better understanding of the chemical phenomena associated with the production of steam under these new conditions. This is true not only in the large electricity generating plants where the production of steam receives a degree of attention comparable with that given the accumulation and distribution of its one product electrical energy; but it is true, also, in steam plants of both large and small manufacturing organizations where plant design is showing a marked tendency to keep pace with the development of the art. Boiler scale, the steam producers' greatest enemy, has now to be fought in a new way. The weapons used are not new, but a new appreciation of the potentialities of those weapons exists, whereby, of necessity, the old rule-of-thumb methods of treating water to prevent scale in low pressure boilers has given way entirely to complete scientific treatment based upon the chemistry of the changes that the water and its soluble salts undergo under steaming conditions in the more modern higher pressure boilers. Associated with the problems of scale prevention are those of embrittlement and corrosion, both of which have new aspects in modern steam generation. In the lower pressure type of boiler where the water, either treated or untreated, caused a precipitation of scale on the inner surfaces of the drums and tubes, corrosion was usually not serious. If it developed, little damage was done, and often a corrosive condition was not discovered until the units were dismantled to make room for new equipment. In many of the modern high pressure boilers, (by high pressure we have reference to operation above 250 pounds per square inch gage) the feed water is scientifically treated to prevent scale, embrittlement,