Innovations in Competitive Manufacturing

421 Pages·2000·15.931 MB·English

by  Paul M. Swamidass (auth.), Paul M. Swamidass (eds.)

INNOVATIONS IN COMPETITIVE
MANUFACTURING
INNOVATIONS IN COMPETITIVE
MANUFACTURING
Edited by
PAUL M. SWAMIDASS
Professor of Operations Management
College ofBusiness
And
Associate Director
Thomas Walter ,Center for Technology Management
Tiger Drive, Room 104
Auburn University, AL 36849-5358
~.
"
SPRINGER SCIENCE+BUSINESS MEDIA, LLC
Library of Congress Cataloging-in-Publication
Innovations in competitive manufacturingl edited by Paul M. Swamidass.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4613-5687-5 ISBN 978-1-4615-1705-4 (eBook)
DOI 10.1007/978-1-4615-1705-4
1. Production management. 2. Manufactures--Technological
innovations--Management. 3. Industrial management. 4. Competition.
1. Swamidass, Paul. M.
TS 155 .1536 2000
658.5--dc21
00-055105
Copyright © 2000 Springer Science+Business Media New York
Originally published by Kluwer Academic Publishers in 2000
Softcover reprint of the hardcover 1s t edition 2000
AlI rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form or by any means, mechanical, photo
copying, recording, or otherwise, without the prior written permission of the
publisher, Springer Science+Business Media, LLC
Printed an acid-free paper.
CONTENTS
Alphabetical List of Authors IX
Preface XI
I. Introduction
1. Innovations in Competitive Manufacturing: FromJIT to E-Business 3
II. Competitive Posture 15
2. Manufacturing Strategy 17
3. Core Manufacturing Competencies 25
(See also Supplier Partnerships as Strategy; and International
Manufacturing)
III. Competitive Customer Service 33
4. Customer Service, Satisfaction, and Success 35
(See also Total Quality Management)
IV. Developing Competitive Processes 45
5. Business Process Reengineering and Manufacturing 47
6. The Evolution of Enterprise Resource Planning 59
V. Competing on Quality 67
7. Total Quality Management 69
v
vi Contents
8. The Implications of Deming's Approach 83
(See also Performance Excellence: The Malcolm Baldrige National Quality
Award Criteria)
VI. The Rise of Work Teams 93
9. Teams: Design and Implementation 95
(See also Concurrent Engineering)
VII. Competing on Flexibility and Automation 107
10. Flexible Automation 109
11. Manufacturing Flexibility 117
u.s.
12. Manufacturing Technology use in the and Benefits 137
13. Agile Manufacturing 145
14. Virtual Manufacturing 155
VIII. Lean Manufacturing 165
15. Just-in-Time Manufacturing 167
16. Lean Manufacturing Implementation 177
17. Total Productive Maintenance (TPM) 187
18. Transition to Cell Manufacturing: The Case ofDuriron Company Inc.,
Cookeville Valve Division (1988-1993) 199
19. Predictive Maintenance: The Case of Della Steam Plant 215
IX. Product Design and Development Redefined 229
20. Product Design for Global Markets 231
21. Concurrent Engineering 245
(See also Teams: Design and Implementation)
22. Product Development and Concurrent Engineering 263
23. Mass Customization 275
24. Mass Customization and Manufacturing 283
25. Integrated Product Development: The Case of Westinghouse Electronic
Systems 297
x. The Revolution in the Supply Chain 323
26. Supplier Partnerships as Strategy 325
27. Supply Chain Management: Competing Through Integration 333
28. Developing a Supply Partner: The Case of Black & Decker and TEMIC
Telefunken (1992-1994) 343
XI. Competing Globally 359
29. International Manufacturing 361
(See also Product Design for Global Markets)
Contents vii
XII. Opportunities in Tackling Environmental Problems 371
30. Environmental Issues and Competitive Manufacturing 373
XIII. The Revolution in Costing and Performance Measurement 383
31. Activity-Based Costing 385
32. Target Costing 399
33. Balanced Scorecards 407
34. Performance Excellence: The Malcolm Baldridge National Quality Award
Criteria 413
Company-Index 427
Index 431
ALPHABETICAL LIST OF AUTHORS
Black, JT, Auburn University, Alabama, USA
Bloom, Matthew, University ~r Notre Dame, Indiana, USA
Burnham, John M., Tennessee Technological University, Tennessee, USA
Chinnaiah, Pratap, Northeastern University, Massachusetts, USA
Cooper, M. Bixby, Michigan State University, Michigan, USA
Darlow, Neil, Cranfield University, UK
De Meyer, Arnoud, INSEAD, France
Duray, Rebecca, University if Colorado-Colorado Springs, Colorado, USA
Edland, Timothy W, Morgan State University, Maryland, USA
Evans, James, University of Cincinnati, Ohio, USA
Fawcett, Stanley, Brigham Young University, Utah, USA
Goo, Gee-In, Morgan State University, Maryland, USA
Hadjinicola, George, University ~r Cypress, Cypress
Kamarthi, Sagar V, Northeastern University, Massachusetts, USA
Kamauff, Jr., John W, University of Virginia, Virginia, USA
ix
x Alphabetic list of authors
Klassen, Robert, University cif Western Ontario, Ontario, Canada
Kumar, Ravi, University cif Southern California, California, USA
LaForge, R. Lawrence, Clemson University, South Carolina, USA
Lambert, David, Tennessee Technological University, Tennessee, USA
Landel, Robert D., University cif Virginia, Virginia, USA
Leavy, Brian, Dublin City University, Ireland
Loch, Christoph, INSEAD, France
McCreery, John, North Carolina State University-Raleigh, North Carolina, USA
McKone, Kathleen, University oj Minnesota, Minnesota, USA
Natarajan, R., Tennessee Technological University, Tennessee, USA
Parker, Rodney P, University cif Michigan, Michigan, USA
Raju, PK., Auburn University, Alabama, USA
Ramanan, Ramachandran, University cif Notre Dame, Indiana, USA
Richards, Larry, University cif Virginia, Virginia, USA
Sankar, Chetan S., Auburn University, Alabama, USA
Smith, Jr., Charles W, Tennessee Technological University, Tennessee, USA
Smunt, Timothy, lMlke Forest University, North Carolina, USA
Sridharan, V, Clemson University, South Carolina, USA
Stecke, Kathryn, University oj Michigan, Michigan, USA
Swamidass, Paul M., Auburn University, Alabama, USA
Swink, Morgan, Michigan State University, Michigan, USA
Terwiesch, Christian, University oj Pennsylvania, Pennsylvania, USA
Umble, Elisabeth, Texas A&M University, Texas, USA
Weiss, Elliot, University cif Virginia, Virginia, USA
Welch, John A., Tennessee Technological University, Tennessee, USA
White, Gregory, Southern Illinois University-Carbondale, Illinois, USA
Wilson, Dale A., Tennessee Technological University, Tennessee, USA
PREFACE
us.
In the last fifty years, manufacturing has gone through a cycle: from strength
in the fifties and sixties, to weakness in the seventies and eighties, and back again to
strength in the nineties. There has never been a time in history when manufacturing
management saw so many advances in a short period of two decades. The roaring
us.
competition for markets has forced manufacturers to become more competitive
than ever.
During the fifties and sixties, manufacturing was treated as a technical detail within
us.
manufacturing firms while technical personnel without a strategic or competitive
perspective managed the function. In the postwar economy, it worked very well be
cause competition for US. products was negligible. The resurgence of European and
Japanese manufacturing by the end of sixties posed unprecedented competition for
u.S. manufacturers. To make matters worse, in the early seventies, under the belief
that the US. was a postindustrial society, investment in manufacturing began to be
neglected.
Competitive manufacturing in the US. was made possible by the progress made in a
number of areas. For example, progress in competitive manufacturing is attributable to
advances in the strategic use of manufacturing, cellular manufacturing, lean manufac
turing, focused manufacturing, flexible automation, total quality management, supply
chain management, design for manufacturing, mass custornization, improved costing,
and so on.
With the arrival of the first wave of high quality, competitive Japanese products in
the US. in the seventies, the lack of strategic thinking in US. manufacturing became
xi
xii Preface
more and more evident. It was followed by a period, when U.S. products progressively
lost their market shares to more competitive Japanese products.
Pressured by competition, U.S. manufacturers began the journey to competitive
manufacturing in the late seventies; their efforts have brought revolutionary changes
in U.S. manufacturing. The progress made by U.S. manufacturers in the area of com
petitive manufacturing has transformed them into a very competitive bunch and the
envy of the world. A survey! of over 1,000 U.S. manufacturers in the discrete prod
ucts manufacturing industries (SIC 34-38) reveals that, between 1993 and 1997, U.S.
manufacturers improved their average return on investment from about 13 percent to
16.85 percent. The average inventory turns improved from 6 to 9.7 between 1990
and 1997. During 1990 and 1997, the marked increase in the use of hard technologies
such as local area networks (LAN) and soft technologies such as manufacturing cells
was noticeable.
Manufacturing managers whom I frequently meet in the U.S. are under constant
pressure to think and act more competitively than ever before. For these managers and
executives, who have either direct or indirect responsibility for competitive manufac
turing, this book should serve as a good overview of the progress in manufacturing
thinking and practices in the last two decades. This book is different from the books
in the market devoted to single topics such as total quality management, just-in-time
manufacturing, activity-based costing, concurrent engineering, and so on. This book
covers all topics in this genre in 34 different articles written by various experts. Thus,
this book should be attractive to manufacturing as well as non-manufacturing man
agers who would like to read a single book to get an overview of the progress in
manufacturing over the last two decades, and to understand what it means to their
own company and their function.
Almost any introductory text on operations management would touch all the topics
covered in this book. However, introductory texts cannot do full justice to every
topic. In this book, each article addresses one topic in-depth. The treatment of the
topic is such that the articles are interesting and easy to read while presenting essential
material. The more serious reader is provided with a list of references at the end of
each article. This book is the product of over 40 experts. Competitive manufacturing
covers so many topics, it is impossible for one writer to cover all aspects of it in
sufficient depth. A single writer cannot duplicate the collective expertise of over 40
writers.
While practicing managers and manufacturing professionals would find this book
relevant, thousands of MBA and EMBA students, who take courses in operations man
agement and manufacturing strategy, should find this book to be a valuable supplement
to their textbooks. The references at the end of each chapter should be of value to
students enrolled in MBA and EMBA programs.
The book is arranged in 13 different chapters, each covering a major subject within
manufacturing management (see the Table of Contents). Each chapter consists of
1 Swamidass, Paul M. "JccJlIlology 011 the Factory Floor III: 'iiyll1w/o,f:Y L'sc 111ld TraillillX ill the UlIited States. Washington, D.C,:
The Manufacturing Institute of the National Association of Manufacturers, 1998; and S\vamidass, Paul M. Technology ()II
the Factory Floor. Washington, D.C.: The National Association of Manufacturers, 1992.