The perceived impact of JIT implementation on operations performance: Evidence from Chinese firms

Relationship between lean manufacturing tools and their sustainable economic benefits

Traditionally, the isolated relationship of total preventive maintenance (TPM), quick setup (QS), overall equipment effectiveness (OEE), and one-piece flow (OPF) with economic sustainability (ESU) has been investigated; however, these lean manufacturing (LM) tools are implemented together into production systems, and traditional research does not report their relationships and interactions. To contribute to this gap, this paper integrates all those variables in a structural equation model (SEM), which are related by seven hypotheses that are validated using the partial least squares (PLS) technique using information from 176 responses to a questionnaire applied to the Mexican maquiladora industry. Additionally, a sensitivity analysis has been carried out to determine the probability of occurrence at high and low implementation levels for all variables when they occur in isolation, jointly and conditionally. Findings indicate that TPM is a precursor of QS and OEE, while QS is a precursor of OEE and OPF, OEE is a precursor of OPF and ESU, but also OPF is a precursor of ESU. The sensitivity analysis indicates that low levels of TPM are a risk for reaching adequate levels of OEE and QC, while low levels in OEE and OPF are a risk for reaching adequate ESU levels.

SUPPLEMENTARY INFORMATION

The online version contains supplementary material available at 10.1007/s00170-022-10208-0.

Synergistic effect of lean practices on lead time reduction: mediating role of manufacturing flexibility

Purpose

This study scrutinized the synergistic effects of lean manufacturing (LM) on lead time reduction (LR) while investigating the mediating role of manufacturing flexibility (MF) in that relationship within the context of batch and mass customization manufacturers.

Design/methodology/approach

This cross-sectional survey involved 160 large batch and mass customization manufacturers in Indonesia. Data were analyzed by using the PLS path modeling approach and multigroup analysis.

Findings

The positive synergistic direct effects of LM on LR and MF were revealed in both process types. In mass customization, MF mediates the effect of LM on LR. However, such a mediating effect was not found in the batch process due to the insignificant effect of MF on LR.

Practical implications

The findings offered theoretical and practical insights supporting the manufacturers to grasp potential benefits through the holistic LM implementation as well as the suitable strategies to improve MF and reduce lead time by considering the types of the production process.

Originality/value

This study bridged the gaps regarding the comparison of LM implementation and its influence on MF and LR in mass customization and batch production.

Effect of Total Quality Management Practices and JIT Production Practices on Flexibility Performance: Empirical Evidence from International Manufacturing Plants

This paper presents the results of an empirical study investigating the relationship between Total quality management (TQM) practices, Just-in-time (JIT) production practices, and flexibility performance in manufacturing companies. Correlation and regression analysis are applied to analyze the data collected from 280 manufacturing plants in 12 countries including China, Finland, German, Italy, Israel, Japan, Korea, Spain, Sweden, Taiwan, United Kingdom, and Vietnam from 2013 to 2015 in the framework of a High Performance Manufacturing Project. The analytical results confirm the closed linkage between TQM, JIT production practices and flexibility performance. Moreover, this study indicates that the effect of JIT production practices on flexibility performance can be strengthened with a higher level of TQM practices. The main findings of this study suggest that flexibility performance can be built up by implementing both TQM and JIT production practices, and TQM should be regarded as the platform to maximize the effect of JIT production on flexibility performance.

Developing and validating lean manufacturing constructs: an SEM approach

Purpose

The purpose of this paper is to provide valid and reliable constructs for lean manufacturing (LM) for assessing its implementation level in order to target areas of improvement.

Design/methodology/approach

Based on an extensive review on LM literature and content validity assessment from practitioners and academicians, nine LM constructs were identified. Measurement items for each construct were developed to become a complete questionnaire. The questionnaire booklets were distributed to large and discrete manufacturing companies in Indonesia. Out of 1,000 survey questionnaires sent, 236 usable responses were returned giving response rate of 23.60 percent. Subsequently, an empirical assessment on the constructs was done by using structural equation modeling approach.

Findings

The study identified the valid and reliable LM constructs, consisting of nine LM constructs and 64 measurement items. The study found that all the constructs are complementary and mutually supportive with each other. Indeed, it suggests the holistic implementation of all the LM practices.

Research limitations/implications

Owing the time and resource constraint, this study only involved large and discrete process manufacturing industries in Indonesia. Hence, the generalization of the result is slightly limited. More studies in several different contexts are required.

Practical implications

This study provided a valuable tool for researchers for gaining deeper understanding regarding the LM and its implementation. For practitioners, it is useful to evaluate the degree of LM employment in their companies, to target area of improvement, as well as to take possible actions in attempting to enhance the organizational performance. More importantly, practitioners should adopt all the LM practices in a holistic manner.

Originality/value

This study is the first attempt to develop LM constructs for evaluating the LM implementation in Indonesia.

The impact of acquisitions on inventory performance

Purpose

The purpose of this paper is to examine the relationship between acquisitions and inventory performance. Specifically, it analyzes the inventory performance (inventory level) of acquirers and their targets pre- and post-acquisition.

Design/methodology/approach

Using several business databases, a sample of 270 horizontal acquisitions by US firms between 1996 and 2004 is subject to multivariate analysis. Various robustness tests are applied to validate the results.

Findings

Three main results are found. First, the acquirer’s inventory performance is normally better than its target’s prior to the acquisition, consistent with acquirers taking over less efficient firms rather than cherry picking the more efficient ones. Second, inventory performance improves over time in the post-acquisition period in those cases where the acquirer is more efficient than the target. Third, inventory performance deteriorates over time in the post-acquisition period in those cases where the acquirer is less efficient than the target. The results are consistent with acquisitions being associated with both efficiency gains and efficiency losses due to (in)efficiency transfers from acquirers to targets.

Practical implications

From the management point of view, the study delivers the strongest message to companies that have substantial inventories and for whom efficient inventory management is vital to overall performance. Managers who are unaware of the potential consequences of acquisitions on inventory performance destroy value.

Originality/value

This research complements past research by showing that in spite of their synergetic potential, reducing inventory receives only limited attention in acquisitions.

Exploring antecedents of extended supply chain performance measures

Purpose

– The purpose of this paper is to explore the antecedents of Indian firms practicing green manufacturing practices and their impact on extended supply chain performance.

Design/methodology/approach

– In this paper the authors have adopted systematic literature review (SLR) to derive research objectives and questions. In order to answer research questions the authors have proposed a theoretical framework and derived research hypotheses. The authors identified constructs and items through extant literatures and developed a structured questionnaire which was pretested before using for final survey. The data were collected in two phases and also performed wave analysis to check non-response bias to avoid any significant impact of non-response bias on statistical analysis. The data has been used to conduct exploratory factor analysis using varimax rotation which reduces variables into five parsimonious and orthogonal factors. The factor analysis output was further used as an input of regression analysis.

Findings

– The factor analysis output has further validated the findings from literature review. The factor analysis output suggests that total quality management (TQM), supplier relationship management (SRM), R & D and technology and lean manufacturing practices are important determinants of Indian firms practicing green manufacturing practices which impact extended supply chain performance. The regression analysis output has further established that TQM and R & D and technology are strong determinants of extended supply chain performance. However, present study does not support SRM and lean manufacturing practices from respondent’s perspective. However, it further needs to be explored.

Research limitations/implications

– The present study is limited to medium-sized manufacturing firms. Second, the conclusive model explains only 31.9 percent of the total extended supply chain performance. The study provides an insight to managers that those companies which have implemented TQM and green technology have realized superior performance in comparison to those which have not successfully implemented.

Originality/value

– The present study is toward understanding Indian green manufacturing practices.