Dedicated to Willo A Guiding Light - Dublin City University

205 Pages·2013·2.73 MB·English

Dedicated to
Willo
A Guiding Light
World Class Manufacturing: Implementation and Measurement in the
Irish Automotive Rubber Mouldings Component Industry
This one volume thesis,
supervised by Dr Jim Whyte and Dr David Jacobson,
Dublin City University Business School,
Dublin City University,
is submitted in candidature for the award of Doctor of Philosophy.
Sarah Ingle BSc(Eng), MIE, MIEI, Chartered Engineer.
December 1999
World Class Manufacturing: Implementation and Measurement in the
Irish Automotive Rubber Mouldings Component Industry
I hereby certify that this material, which I now submit for assessment on
the programme of study leading to the award of PhD, is entirely my own
work, and has not been taken from the work of others, save and to the
extent that such work has been cited and acknowledged within the text
of my work.
ID No: 94970505 Date: 1 W
Sarah Ingle
TABLE OF CONTENTS
ABSTRACT vi
ACKNOWLEDGEMENTS vii
LIST OF TABLES viii
LIST OF FIGURES x
ABBREVIATIONS xi
GLOSSARY xiii
1. INTRODUCTION 1
1.1 CHAPTER OVERVIEW 1
1.2 INTRODUCTION TO THE RESEARCH 3
1.3 OVERVIEW OF RESEARCH IN GENERAL 6
1.4 THEORETICAL FOUNDATION 10
1.5 JUSTIFICATION FOR CHOICE OF THEORETICAL FRAMEWORK 16
1.6 SIGNIFICANCE AND CONTRIBUTION OF THIS STUDY 19
1.7 THESIS STRUCTURE 25
2. WORLD CLASS MANUFACTURING 28
2.1 CHAPTER OVERVIEW 28
2.2 INTRODUCTION 28
2.3 CRITIQUE OF WCM LITERATURE 38
2.4 CONCLUSION 66
3. STRATEGY, CONTROL AND MEASUREMENT 69
3.1 CHAPTER OVERVIEW * 69
3.2 STRATEGY AND CONTROL 70
3.3 MANAGEMENT CONTROL 74
3.4 STRATEGY, CONTROL, MEASUREMENT AND WCM PRACTICES80
3.5 CHANGING NATURE OF PERFORMANCE MEASURES 84
3.6 OLD PERFORMANCE MEASURES 89
3.7 NEW PERFORMANCE MEASURES 96
3.8 OLD AND NEW MEASURES COMPARED 99
3.9 CRITIQUE OF CONTROL AND MEASUREMENT LITERATURE 102
3.10 SUMMARY AND CONCLUSION 119
3.11 THEORETICAL FRAMEWORK 122
4. RESEARCH METHODOLOGY 127
4.1 CHAPTER OVERVIEW 127
4.2 INTRODUCTION 127
4.3 IDENTIFICATION AND SELECTION OF STUDY COHORT 129
4.4 JUSTIFICATION FOR CHOOSING SEGMENT OF INDUSTRY 134
4.5 DETAILS OF DATA COLLECTION 139
4.6 PERFORMANCE MEASUREMENT QUESTIONNAIRE 155
4.7 CONCLUSION 157
. IRISH AUTOMOTIVE COMPONENT INDUSTRY 159
5.1 CHAPTER OVERVIEW 159
5.2 OVERVIEW OF IRISH AUTOMOTIVE COMPONENT
MANUFACTURING INDUSTRY 159
5.3 AUTOMOTIVE COMPONENT MANUFACTURERS IN IRELAND 161
5.4 OVERVIEW OF RUBBER MOULDINGS SUB-SECTOR 173
5.5 INDIVIDUAL CASE COMPANIES 173
. RESEARCH FINDINGS 192
6.1 CHAPTER OVERVIEW 192
6.2 PROPOSITION 1.1 193
6.3 PROPOSITION 1.2 202
6.4 PROPOSITION 1.3 229
6.5 PROPOSITION 2.1 246
6.6 PROPOSITION 2.2 258
6.7 PROPOSITION 3.1 271
6.8 PROPOSITION 3.2 288
6.9 SUMMARY 295
. ANALYSIS AND DISCUSSION 299
7.1 CHAPTER OVERVIEW 299
7.2 REASONS FOR IMPLEMENTATION OF WCM PRACTICES 299
7.3 ADOPTION OF TQM, JIT AND El INITIATIVES 302
7.4 IMPLEMENTATION MODES 304
7.5 PERFORMANCE MEASUREMENT SYSTEMS 309
7.6 EMPIRICAL RESEARCH MODEL 313
7.7 CONCLUSION 319
iv
8. SUMMARY AND CONCLUSION 322
8.1 CHAPTER OVERVIEW 322
8.2 THESIS REVIEW 322
8.3 SUMMARY OF THESIS ARGUMENTS 325
8.4 EMPIRICAL RESEARCH MODEL 327
8.5 RESEARCH CONTRIBUTION 330
8.6 RECOMMENDATIONS FOR FUTURE RESEARCH 335
8.7 CONCLUDING DISCUSSION 340
9. BIBLIOGRAPHY 344
APPENDIX A Schonberger's 16 Customer Centred Principles
APPENDIX B Interview And Interviewee Details
APPENDIX C Letter Sent To Firms And Enclosure
APPENDIX D Outline Of Interview Questions In Irish Rubber Mouldings
Companies
APPENDIX E Adapted Performance Measurement Questionnaire Used
In Empirical Research.
APPENDIX F Introductory And Explanatory Address To PMQ
Respondents.
APPENDIX G Sample Spreadsheets Used To Analyse PMQ Data
APPENDIX H Interview, Plant Tour And Company Documentation
APPENDIX I Calculation Of Importance Of WCM Scores
APPENDIX J Individual Employee Performance Measures
APPENDIX K Calculation Of Emphasis Scores For Old And New
Measures
World Class Manufacturing: Implementation and Measurement in the
Irish Automotive Rubber Mouldings Component Industry
ABSTRACT
The main objectives of this thesis are to determine how and why world
class manufacturing (WCM) practices are implemented, and to examine
potential links between the introduction of these kinds of practices and
performance measurement systems. There is theoretical and empirical
evidence to suggest that WCM practices can be categorised into one or
more of: total quality management (TQM), just in time manufacturing
(JIT) and employee involvement (El). Four different WCM
implementation modes are also identified in the literature. Research in
the areas of management control and performance measurement
suggest that in order for companies to assess the benefit of
implementing WCM practices, there is an increasing necessity for them
to use both financial and non-financial measures effectively. This
literature thus provides the basis for the theoretical framework used in
the study.
The complete rubber mouldings segment of the Irish automotive
component manufacturing industry is examined using a case-based
design, to address both the initial research questions and the research
propositions developed following literature reviews. The empirical data
includes information from: preliminary interviews in academia,
consultancy and government agencies; in-company interviews; plant
tours; and a performance measurement questionnaire administered to
three management levels in each of the five organisations studied.
The findings suggest that firms can utilise both a main and secondary
mode to introduce WCM practices, and that the overall implementation
mode used is both affected by and affects other variables. This thesis
contributes to research in a number of ways. First it provides an in-
depth study of WCM practices and performance measurement in an Irish
context. It also develops and applies a classification of the
implementation modes used to introduce WCM practices. Finally, it
identifies internal and external factors associated with both the
introduction of WCM practices as well as the performance measurement
system utilised.
Sarah Ingle
December 1999
ACKNOWLEDGEMENTS
I would first like to thank all the people involved in my post-graduate
research review process in Dublin City University Business School. As
supervisors, colleagues and friends they contributed greatly to ensuring
the final completion of this thesis. In particular they include Jim Whyte,
David Jacobson, Bernard Pierce, Eunan O'Halpin and Siobhain
McGovern.
Without the full cooperation of the general managers, and other
employees of the companies surveyed in the study, the work would not
have been possible. I would like to gratefully acknowledge their help
and hope that they too have learned from the process.
The interviewees in industry, government agencies, consultancy and
academia should also be thanked as they willingly gave of their time to
explain, confirm and consolidate the knowledge that was being gathered
before the field research. I would particularly like to acknowledge the
help of Professor J. Robb Dixon, one of the authors of the performance
measurement questionnaire used, who was very encouraging.
The two pilot studies proved to be very useful in defining the
questionnaire in an Irish context. Thanks to the two groups for their
time and interest, and their lecturer and managers who approved them
taking part.
To my other colleagues and friends in Dublin City University Business
School and Library, I extend a global message of appreciation for their
continual support and words of encouragement at all stages of the work.
I would especially like to acknowledge Ziene and Helen for always being
available to listen and offer advice, and Shane, Treasa, Eileen, Rachel,
MaryLou, Mary, Chris and Gary for their general counsel.
I could not have finished the work without the continuing practical and
emotional help of my other friends and family. Thanks especially to my
mother Ann, and Katie, Rachael, Roisin, Mladen, Peter, Michael, Bette,
Billy, Lisa and Tiernan for all their assistance along the process.
Finally to Willo, Fionn and Blaithin who helped keep it all in perspective.
Thanks for your unconditional love and support, and for being there
every time I needed you.
vii
LIST OF TABLES
Table 2.1 Elements of WorldC lass Manufacturing 44
Table 3.1 Comparisons of Assumptions in Intended and Emergent
Strategies 71
Table 3.2 Characteristics of Old and New Performance Measures 101
Table 3.3 Contrasting Headings for Measurements and Controls 108
Table 3.4 Outline of Differing Performance Measurement Frameworksl 11
Table 3.5 Perspectives of Balanced Scorecard 112
Table 3.6 Old and New Performance Measures Listings 119
Table 3.7 Research Questions and Associated Propositions 123
Table 4.1 Statistics for Segments Considered in the Sector 130
Table 4.2 Statistics for Companies with Greater than 100 Employees 133
Table 4.3 Research Process Outline 140
Table 4.4 Automotive Component Company Interviews 141
Table 4.5 Some Changes Made to Original PMQ 146
Table 4.6 Profile of Respondents to PMQ in each Firm 154
Table 5.1 Irish Automotive Component Industry Employment and
Exports 160
Table 5.2 Irish Automotive Component Sector - Numbers Employed 163
Table 5.3 Irish Automotive Component Sector- Ownership of Companies163
Table 5.4 Irish Automotive Component Sector - Year of Establishment 64
Table 5.5 Details of Companies in Rubber Moulding Segment 173
Table 6.1 Customer Influences on Introduction of New Practices 194
Table 6.2 Score for Importance of WCM Practices from PMQ 200
Table 6.3 Categorisation of WCM Practices 203
Table 6.4 Outline Points of WCM Implementation Modes 229
Table 6.5 WCM Implementation Modes Used inE ach Company 243
Table 6.6 Internal/External Relationship Types and Implementation
Modes 255
Table 6.7 Performance Outcomes Summary 267
Table 6.8 Performance Outcomes and Implementation Modes 268
Table 6.9 Categorisation of Old Measures 273
Table 6.10 Categorisation of New Measures 281
Table 6.11 Plant Managers' Personal Performance Evaluation in Five
Time Frames 285
Table 6.12 Comparison of New and Old Performance Measure Utilisation291
Table 6.13 Calculation of New/Old Performance Factor Emphasis from
PMQ 292
Table 6.14 Top Important Performance Measures for All Firms 294
Table 6.15 Research Propositions and Conclusions 1 295
Table 6.16 Research Propositions and Conclusions 2 296
Table 6.17 Summary of Differences between CompanyG roupings 297