Short‐term effects of benchmarking on the manufacturing practices and performance of SMEs

A relational analysis of drivers and barriers of lean manufacturing

Purpose

The purpose of this study is to categorize and analyse the drivers and barriers of Lean Manufacturing (LM) and subsequently, based on the structural model develop a house of lean management which will give an idea to the academicians and practitioners about the factors that are critical to implement lean practices in an organization.

Design/methodology/approach

A list of drivers and barriers was prepared based on the literature review and opinions from experts. Total Interpretive Structural Modelling (TISM) was utilized to build a structural hierarchy of the drivers and barriers of LM. The structural hierarchy was utilized to build the house of lean management.

Findings

Based on the hierarchy developed, the elements (drivers and barriers) of LM are classified into three groups: bottom-level, middle-level and top-level elements. To develop a house of lean management, bottom-level of elements were considered as a foundation, middle-level elements were considered as pillars and top-level elements were considered as a beam. Finally, foundation, pillars and beam of the house were used to support the roof (which is value to customers and profitability to firm).

Practical implications

The outcome of this research can assist researchers as well as practitioners to enhance the significant drivers and to reduce the impact of hazardous barriers for the better implementation of lean practices.

Originality/value

This research is a novel approach, as it visibly demonstrates both the drivers and barriers, examines the interrelationships among them in order and shows them pictorially as the house of lean management.

Performance measurement and management systems as IT artefacts

Purpose

Considering performance measurement and management systems (PMMS) to be “mission-critical” information systems for many business organisations, calls have been made for researchers to shift from studying the use of such systems to studying their “effective” use, and in so doing to focus on their characterisation as information technology (IT) artefacts. The paper aims to discuss this issue.

Design/methodology/approach

In seeking to answer these calls, the authors apply Burton-Jones and Grange’s theoretical framework to study the dimensions, contextual drivers and benefits of the effective use of PMMS. This is done through a field study of 16 PMMS artefacts as used in small- and medium-sized enterprises (SMEs).

Findings

In characterising, contextualising and valuing the effective use of PMMS, this study provides answers to the following questions: What constitutes the effective use of PMMS? What are the user, artefactual and task-related drivers of such use? And what are the benefits for SMEs of using performance measurement and management (PMM) systems effectively?

Practical implications

With regard to the design of a PMMS artefact, the findings imply that one should concentrate on those artefactual attributes that most enable informed action on the part of owner-managers, as it is these actions have the greater consequences for the realisation of IT business value in SMEs. Moreover, the nomological network resulting from this research provides the theoretical and methodological underpinnings of a diagnostic tool meant to develop the PMM function in SMEs.

Originality/value

This study provides further empirical grounding and understanding. This study provides further empirical grounding and understanding of the concept of effective use, as well as further applicability and actionability to this concept and to the nomological network of its dimensions, contextual drivers and benefits in the case of PMMS and in the context of SMEs.

Supply chain practices

Purpose

– The purpose of this paper is to investigate the current level of supply chain practices (SCPs) in Indian manufacturing organizations.

Design/methodology/approach

– The 15 SCPs are identified based on the literature support and opinion of industry experts and academia, and data were collected from 292 organizations. Data were analyzed using the statistical package for the social science software to see the current level/penetration of SCPs in Indian manufacturing organizations.

Findings

– The practices, namely, organizational culture, customer relationship, information and communication technology, benchmarking and performance measurement, lean manufacturing, agile manufacturing, supplier relationship are highly penetrated practices in Indian manufacturing organizations. The practices, namely, outsourcing, information sharing, just in time manufacturing, green supply chain management are moderately penetrated practices, while the practices, namely, reverse logistics, postponement, vendor managed inventory, radio frequency are least penetrated practices in Indian manufacturing organizations.

Research limitations/implications

– Further study can be extended to see the of penetration practices applicable to service and agriculture sectors.

Practical implications

– The result of this paper will enable the organizations to identify and direct their focus on the areas that requires improvement. Also, the organizations will become more aware of the SCPs that will help in boosting up their performance and competitiveness and indirectly boost the growth and contribute to India’s economic development.

Originality/value

– This is the first kind of study which checked the level of selected SCPs in Indian manufacturing organizations.

Attitudes of Nigerian facilities management professionals to the benefits of benchmarking

Purpose

The purpose of this paper is to examine the benefits of benchmarking among Nigerian facilities management (FM) practitioners.

Design/methodology/approach

Data collection was through semi-structured interviews with 34 FM heads from three selected cities in Nigeria. Of this number, 16 were from Lagos, 10 from Abuja, while 8 managers were from Port Harcourt. These managers were selected using purposive sampling based on their experience in the field of FM across the various sectors of the economy. The interviews were analysed with Nvivo 10 software qualitative computer software so as to reduce manual tasks, discover tendencies and recognize themes on the practice, meaning and benefits of benchmarking. Matrix coding of the Nvivo software was used to distinguish between benefits realized by those that conduct formal and informal benchmarking.

Findings

The paper found that those that perform informal benchmarking find that the benchmarking tool helps them to improve performance, service quality and their processes. On the other hand, those that perform formal benchmarking affirmed that benchmarking helped them in making strategic plans, striving to be the best in the industry and obtaining explanations for those improvements that are made now and in the near future.

Practical implications

The results, therefore, suggest that formal benchmarking in Nigeria is needed in performing strategic role in FM, as well as in making good business case agitations. Practitioners also need to know the benefits of benchmarking to improve its usage.

Originality/value

The paper categorised FM benchmarking benefits. Also, there are limited empirical studies on benchmarking benefits in developing countries.