Lean supply chain performance measurement

Lean performance measurement system for an Indian automotive supply chain

Purpose

This paper aims to present a simple and innovative fuzzy methodology-based lean performance measurement system (L-PMS) for an Indian automotive supply chain. The paper also enlightens the influence of coronavirus disease 2019 (COVID-19) on supply chains and the practical implications of the unprecedented disruptions on the performance measurement systems.

Design/methodology/approach

The L-PMS is divided into three phases. In the first phase, the key performance indicator (KPI) list, as deemed fit by the organization, is prepared using literature and suggestions from the case organization. The list contains 61 KPIs measuring 24 performance dimensions in seven functional areas of the supply chain. In the second phase, the KPI performance data (actual, best and worst) are collected using the enterprise resource planning (ERP) system. In the last phase, the leanness score of the case organization is calculated at four levels – KPI, dimension, functional area and overall organization.

Findings

The overall leanness score of the case organization is 60%. The case organization uses KPIs from all seven functional areas, but it needs to improve the number of KPIs in administration and supplier management functional areas. The case organization uses only quantitative KPIs. However, the performance dimensions at the middle level are adequate. The leanness level of the case organization in different areas is highly variable (ranges from 45% to 91%).

Research limitations/implications

The major limitation of the study is that the case study is done at a single organization.

Practical implications

The managers at the different levels of the hierarchy can use the lean performance measurement score to leverage the better performing areas/dimensions/KPIs and improve poor performing areas/dimensions/KPIs. The lean performance measurement at functional area level can help leadership to give responsibility to different people for the improvement of leanness with respect to different dimensions/functional areas. The disruptive impact of COVID-19 should clearly be understood by the managers to make appropriate decisions based on the severity as measured at different levels.

Originality/value

According to the authors' best knowledge, this is the first lean performance measurement application at the four hierarchical levels (KPI, performance dimension, functional area and overall organization).

Blockchain Technology for Oil and Gas: Implications and Adoption Framework Using Agile and Lean Supply Chains

Oil and gas (O&G) supply chain management (SCM) is complex because it deals with different geographic locations to manage demand and supply, transportation, inventory, and distribution. Blockchain technology has created an interesting research gap in the SCM domain, and this study is designed to describe the relevancy of blockchain technology for O&G SCM. SCM is based on agile and lean supply chains (SCs). Agile SC focuses on increasing flexibility and responsiveness to gain competitive advantages, and lean SC is based on eliminating waste and processes to improve firm performance. This study is an initial effort to propose a framework that suggests the implication of blockchain for O&G by providing an overview of O&G SCM. Data were collected from SC managers of O&G companies, and we analyzed the impact of agile and lean SCs on firm performance. The results indicate that agile SC is highly important for O&G industries in comparison to lean SC. This study proposes the key requirements of agile SC and how blockchain can uplift agile SC technology with state-of-the-art properties such as data-driven management, information sharing, data privacy, cyber-security, transparency, smart contracts, visibility, traceability, and reliability, which boost SC agility as well as firm performance.

Leanness assessment of a complex assembly line using integrated value stream mapping: a case study

Purpose

This paper proposes an integrated value stream mapping (VSM) for a complex assembly line to improve the leanness of a complex automotive component manufacturing organization.

Design/methodology/approach

This study depicts the application of VSM at the case organization, where top management is concerned about the challenges of higher cycle time and lower productivity. Gemba walks were conducted to establish the concept of “walk the flow, create the flow” along the assembly line. The multi-hierarchical cross-functional team developed the current value stream map to know the “as-is” state. Then, the team analysed the current VSM and proposed the future VSM for the “to-be” state.

Findings

The integrated VSM shows different processes and work cells, various wastes, non-value-added activities, cycle time, uptime and the material and information flows for both products of the assembly line on the same map. The integrated VSM reduced cycle time, non-value-added activities, work in process inventory and improved line efficiency and production per labour hour for both the products, simultaneously.

Research limitations/implications

The limitation of the study is that the study focussed only on the application of VSM for one complex assembly only. Future research may be conducted using the developed integrated VSM approach in other complex production environments.

Practical implications

Managers can identify and reduce system waste by incorporating the concept of integrated VSM in a complex production or assembly environment where two or more products are being manufactured/assembled with low similarity.

Originality/value

The application of VSM for assembly lines is highly challenging because of merging flows, a large number of child parts in the lines and assembly of more than one product on the same line.

Risks and supply chain performance: globalization and COVID-19 perspectives

Purpose

This article aims to examine the simultaneous effect of risks on physical and intangible dimensions of supply chain performance under the globalization and Covid-19 perspectives.

Design/methodology/approach

The manipulation of literature reviews together with the combination of Q-sort and empirical data in the construction industry to identify and assess risks and supply chain performance, is a novel approach in the supply chain risk management area. The analysis of Structural Equation Modeling that is able to calculate the simultaneous impact of various risks on supply chain performance, is used to validate this relationship.

Findings

Global supply chains are currently facing interruptions caused by several sources of inherent uncertainties, e.g. natural disasters, war and terrorism, external legal issues, economic and political instability, social and cultural grievances, and diseases. The weaknesses of the current global supply chain have been revealed, resulting in delays, supply unfulfillment, labor shortages and demand fluctuation. These supply chain risks have a great on supply chain performance indicators, and the magnitude of their impact tends to increasingly impact in the context of globalization and the Covid-19 pandemic. Findings showed that the proposed risk models can be explained with Variance of supplier performance (25.5%), Innovation and learning (21.2%), Internal business (61.9%), Customer service (39.4%) and Finance (39.7%).

Research limitations/implications

Supply chain managers should keep in mind acceptable cost/benefit trade-offs in corporate risk mitigation efforts associated with major contingency risks. In doing so, the proposed hypothesized model can be “a road map” to achieve this purpose. Our research favors the adoption of supply chain management strategies, e.g. postponement, speculation and avoidance.

Originality/value

The trend toward globalization and the emergence of the Covid-19 pandemic increasing supply chain complexity are regarded as key drivers of supply chain risk and therefore enhance vulnerability to supply chain.

Lean and agile metrics. Literature review and framework for measuring leagile supply chain

Purpose

The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy.

Design/methodology/approach

This work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain.

Findings

Findings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment.

Practical implications

The framework could be used by practitioners as a starting point for performance system design.

Originality/value

There is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.

A systematic literature review on supply chain approaches

Purpose

The purpose of this paper is to present green supply chain, resilient supply chain, agile supply chain, cold supply chain and lean supply chain (GRACL SC) procedures based on a detailed perspective, analyzing subjects in the past 19 years with a systematic literature review (SLR) of the papers reported from 2000 to 2019, and offering information and guidelines for further studies.

Design/methodology/approach

This research is based on 17 keywords in the title and topic of the articles and collects data from Web of Science (WOS) databases and objectively chooses 1,190 articles and performs meta-data analyses. Tables and statistical reports are based on the following three filters: publication year, authors and document type. At least, 39 publications from the ISI WOS has been examined for presenting information of categorization of the conducted research with regard to the content analysis, comprising the conceptual development and obstacles, cooperation with the supply chain elements, as well as mathematical and other optimization models.

Findings

Finally, this study answered three main questions in the research and demonstrates that the majority studies in the green supply chain (GSC) and a minimum number of studies on the cold supply chain have been conducted and 27 factors are chosen to achieve the 2000 to 2019 GRACL SCM model which robust and fit for Iranian food industries. The model shows that the agile, resilient and lean supply chain have direct effect on GSC and it can be said that all 27 groups which are selected for the final model of this research can be the main groups in the supply chain.

Originality/value

This paper was actually conducted by authors who reported it. To prevent plagiarized, redoubled efforts have been made and actually this paper is based on SLR methodology and the results are real and the researcher discusses the results appropriately. This investigation can have a positive impact within the field of expanding supply chain flexibility and lessening squander within the Iranian generation framework.

Comparative analysis of ranking the lean supply chain enablers: An AHP, BWM and fuzzy SWARA based approach

Purpose

In the recent scenario, there has been an increasing trend toward lean practices and implementation in production systems for the improvement of an organization’s performance as its basic nature is to eliminate the wastes. The increasing interest of customers in customized products and the fulfillment of customers’ demand with good productivity and efficiency within time are the challenges for the manufacturing organization; that is why adopting lean manufacturing concept is very crucial in the current scenario.

Design/methodology/approach

In this paper, the authors considered three different methodologies for fulfilling the objective of our research. The analytical hierarchy process, best–worst method and fuzzy step-wise weight assessment ratio analysis are the three methods employed for weighting all the enablers and finding the priority among them and their final rankings.

Findings

Further, the best results among these methodologies could be used to analyze their interrelationships for successful lean supply chain management implementation in an organization. In this paper, 35 key enablers were identified after the rigorous analysis of literature review and the opinion of a group of experts consisting of academicians, practitioners and consultants. Thereafter, the brainstorming sessions were conducted to finalize 28 lean supply chain enablers (LSCEs).

Practical implications

For lean manufacturing practitioners, the result of this study can be beneficial where the manufacturer is required to increase efficiency and reduce cost and wastage of resources in the lean manufacturing process.

Originality/value

This paper is the first of the research papers that considered deep literature review of identified LSCEs as the initial step, followed by finding the best priority weightage and developing the ranking of various lean enablers of supply chain with the help of various methodologies.

Measuring agri-food supply chain performance: insights from the Peruvian kiwicha industry

Purpose

Agri-food firms face many challenges when assessing and managing their performance. The purpose of this research is to determine important factors for an integrated agri-food supply chain performance measurement system.

Design/methodology/approach

This research uses the Peruvian kiwicha supply chain as a meaningful context to examine critical factors affecting agri-food supply chain performance. The research uses interpretative structural modelling (ISM) with fuzzy MICMAC methods to suggest a hierarchical performance measurement model.

Findings

The resulting kiwicha supply chain performance management model provides insights for managers and academic theory regarding managing competing priorities within the agri-food supply chain.

Originality/value

The model developed in this research has been validated by cooperative kiwicha associations based in Puno, Peru, and further refined by experts. Moreover, the results obtained through ISM and fuzzy MICMAC methods could help decision-makers from any agri-food supply chain focus on achieving high operational performance by integrating key performance measurement factors.

Linking knowledge development with sustainable supply chain performance: mediating effects of innovativeness, proactiveness and risk taking

Purpose

The current study provides new insights into the relationships between knowledge development (KD) and sustainable supply chain performance (SSCP) by exploring the mediating effects of entrepreneurial orientation (EO) in terms of innovativeness, proactiveness and risk taking.

Design/methodology/approach

Data were collected by questionnaire survey from 242 manufacturing organizations. Structural equation modeling (SEM) was used to test the hypotheses.

Findings

The results reveal that innovativeness and proactiveness have full mediating effects on the relationship between KD and SSCP. Though KD is negatively related to risk taking and has insignificant indirect effect on SSCP via risk taking, the mediating effect of risk taking remains moderate positive on the relationship between KD and SSCP.

Research limitations/implications

Given that the current study focuses on manufacturing sector, future research is needed for more comparative studies conducted in different sectors and cultural contexts. The negative link between KD and risk taking also warrants future investigation.

Practical implications

Organizations may reduce their level of risk taking due to the increase in KD. However, in order to enhance SSCP, risk taking is still needed as it mediates the relationship between KD and SSCP.

Originality/value

The mediating effects of innovativeness, proactiveness and risk taking on the relationship between KD and SSCP are unknown. Current study aims to address this gap.

Towards a strategic innovation framework to support supply chain performance

Purpose

This paper aims to determine how a strategic innovation framework that integrates the concepts of innovation function, dynamic performance management (DPM) and system-dynamics (SD) modelling can measure performance in a supply chain (SC).

Design/methodology/approach

The paper provides a strategic innovation framework for an SC by considering three steps. First, a systemic intervention is presented based on the innovation functions that influence SC performance. Second, an analysis of the system's performance is proposed. Third, a model SD-based simulation is designed. The developed framework is explained by employing a case study of the Colombian pig sector SC.

Findings

The results reveal that identifying and synchronising the system's performance drivers associated with the innovation functions could improve the inventory in the SC.

Practical implications

On the one hand, managers can use the proposed framework to evaluate the innovation investments and understand their impact on operation performance (e.g. on inventories). On the other hand, policymakers may support decision-making to improve policy design (e.g. through investment in R&D).

Originality/value

Few studies discuss the impacts of innovation functions on SC performance. This paper aims to fill this theoretical gap and to contribute to the literature by suggesting a novel framework which includes innovation functions.

Appropriation of sustainability priorities to gain strategic advantage in a supply chain

Purpose

The authors develop a methodology to select appropriate sustainable supply chain indicators (SSCIs) to measure Sustainable Development Goals (SDGs) in the global supply chain.

Design/methodology/approach

SSCIs are identified by reviewing the extant literature and topic modeling. Further, they are evaluated based on existing SDGs and ranked using the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) method. Notably, the evaluation of indicators is a multi-criteria decision-making (MCDM) process within a fuzzy environment. The methodology has been explained using a case study from the automobile industry.

Findings

The case study identifies appropriate SSCIs and differentiates them among peer suppliers for gaining a competitive advantage. The results reveal that top-ranked sustainability indicators include the management of natural resources, energy, greenhouse gas (GHG) emissions and social investment.

Practical implications

The study outcome will enable suppliers, specialists and decision makers to understand the criteria that improve supply chain sustainability in the automobile industry. The analysis provides a comprehensive understanding of the competitive package of indicators for gaining strategic advantage. This proactive sustainability indicator selection promotes and enhances sustainability reporting while fulfilling regulatory requirements and increasing collaboration potential with trustworthy downstream partners. This study sets the stage for further research in SSCIs’ competitive strategy in the automobile industry along with its supply chains.

Originality/value

This study is unique as it provides a framework for determining relevant SSCIs, which can be distinguished from peer suppliers, while also matching economic, environmental and social metrics to achieve a competitive advantage.

Improving the performance of a Malaysian pharmaceutical warehouse supply chain by integrating value stream mapping and discrete event simulation

Purpose

Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique.

Design/methodology/approach

This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map.

Findings

The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper.

Research limitations/implications

This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it.

Practical implications

This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole.

Social implications

This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry.

Originality/value

This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.

The effects of strategic sourcing on supply chain strategies

Purpose

This study aims to examine the effects of strategic sourcing (SS) on lean supply chain (LSC) and agile supply chain (ASC) strategies and investigate the role of these concepts on development of competitive performance.

Design/methodology/approach

A proposed research model and hypotheses are tested by using cross-sectional e-mail survey data collected from the manufacturing firms operating in Turkey. SS is conceptualized as a second-order factor. Structural equation modeling is used to test the proposed hypotheses.

Findings

This study reached the conclusion that SS affects LSC and ASC strategies positively. Additionally, it is seen that these concepts are effective in improvement of competitive performance.

Practical implications

The results are important in terms of emphasizing the significance of SS in improvement of the lean and agile nature of the supply chain.

Originality/value

This study contributes to the literature by providing empirical evidence regarding the relationships among SS, supply chain strategies and competitive performance.

Research limitations/implications

This study was carried out on the plant level where one person from each organization responded to the survey.

Lean meeting buyer's expectations, enhanced supplier productivity and compliance capabilities in garment industry

Purpose

Investigate the potential of using “lean” in garment supplier factories to enhance productivity and compliance capability, so as to fulfill a buyer's expectation of lower price, shorter lead time, and higher occupational health and safety (OHS) standards.

Design/methodology/approach

By means of an intervention, lean tools integrated with OHS elements were introduced in four Bangladeshi key garment suppliers of a Danish buyer. By employing a qualitative approach, both quantitative and qualitative techniques were used to collect data on productivity, OHS, and buyer–supplier efforts.

Findings

This study demonstrates that lean tools, integrated with OHS elements, can be used to improve the productivity and compliance capabilities of supplier firms, which meet a buyers' changing demands for lower prices, shorter lead times, and higher compliance standards. This study suggests that the improvement of productivity and OHS in supplier firms through lean implementation could be a better choice for buyers than switching to new suppliers with uncertainties in productivity and delivery, as well as OHS compliance problems.

Practical implications

The findings of this study suggest that garment suppliers can benefit from implementing lean, thereby improving their capacity to meet buyers' expectations. Therefore, both suppliers and buyers have a mutual interest in the application of lean in suppliers' production facilities.

Originality/value

By considering both buyer and supplier perspectives, this research is a unique attempt to investigate the possibilities of lean implementation at the shop-floor level to meet the market challenges in the context of a developing country.

The practical relationship between continuous flow and lean construction in SMEs

Purpose

The purpose of this paper is to explore the applicability of lean construction (LC) concepts and tools in necessary, but non-value-added activities (NVAA) in small and medium-sized enterprises (SME). The application of the lean tools in this way facilitates the flow of information and handling material, improving productivity, quality and performance. Finally, practical results motivate a discussion on the real potential of LC principles and on the challenges related to its implementation.

Design/methodology/approach

The methodology makes use of direct involvement in the environment under study. Some of the activities performed were the value stream mapping and time and motion studies of the company’s process selected, identification of wastes and the proposition of improvements to be implemented.

Findings

The main findings are related to the benefits of the application of LC not only in value-added activities but in activities that can influence the development and workforce planning, especially for SME businesses. This company should be able to achieve better management decisions and results after implementing the LC principles, overcoming the limited resources.

Originality/value

This proposed method helps in overcoming the lack of systematic procedures, enabling LC in activities that not add value properly. It has the advantage of integrating existing tools and models effectively, which not only improve the shortcomings of the conventional methods but also result in more convenient calculation and application.

Segmental differences in pharmaceutical industry and its impact on supply chain performance

Purpose

Pharmaceutical industry involves highly specialized business processes where strong research and development focus along with market differentiation and localization are the deciders of success. This has led to evolution of segments and complexities in supply chain. This paper aims to focus on segmental differences in supply chain performance of Indian Pharmaceutical firms.

Design/methodology/approach

This paper measures supply chain performance of select segmental players of the pharmaceutical industry using financial metrics and supply chain operations reference (SCOR) key performance indicators through a five-year timeline. The best performance results are compared across the segments to identify unique performance features, if any. The sample results are validated through hypothesis testing methodology.

Findings

This paper has evidenced that the innovators segment is performing better in cash-to-cash cycle time and supply chain working capital productivity, whereas generics segment is doing better in distribution cost efficiency and total cost to serve aspects.

Research limitations/implications

The paper is based on historical financial data of firms and measures the firm focused supply chain performance. The results may not be generalized in a global context but serve as a motivator for other researchers to take similar studies. The paper may further be analyzed with primary data of the firms to understand the segmental difference in customer focus supply chain performance measures.

Practical implications

This paper has brought out important segmental supply chain performance features of the Indian pharmaceutical firms and identified segment-specific problems by integrating SCOR KPIs and financial metrics.

Originality/value

This paper has integrated both SCOR KPIs and financial metrics to provide unique insights on segmental differences in the performance behavior of pharmaceutical supply chain.

A Systematic Literature Review for Better Understanding of Lean Driven Sustainability

Global trends and factors, such as the increased level of globalization, climate change, resource scarcity, and awareness of social and environmental responsibilities, as well as fiercer competition and lower profit margins in all industries, force organizations to act to retain, regain, or sustain their competitive advantages for long-term survival. These trends and factors are historically known to bring about innovations that drive the evolution of industries. Sustainability is considered to be such an innovation to achieve fiscally sound, environmentally conscious, and socially progressive organizations and supply chains. This study reviewed 477 past articles published in five major databases from 1990 to 2018. The purpose of the study was to assess the current state-of-the art in the subject of lean-driven sustainability. Based on the exhaustive descriptive and contextual analysis, synergies, divergences, and the extent of two-way permeability of lean and sustainability concepts from the perspective of intra- and inter-organizational operations were identified along with future research opportunities. Fundamental strengths and weaknesses of both concepts, existing strong synergies and untapped potential, along with their key contributors, the potential-use cases of lean tools to derive sustainable solutions are highlighted in this review.

The efficacy of routing and flexibility on financial performance within an international manufacturing setting

Purpose

The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency (PRE), and manufacturing flexibility (MF) on a firm’s financial performance (FP) has a direct impact on supply chain operations.

Design/methodology/approach

Survey questionnaires were developed in conjunction with literature guidance. Exploratory and confirmatory factor analysis was used in conjunction with structural equation modeling to give a robust analysis of the problem setting.

Findings

Discoveries herein indicate that committing resources in itself is insufficient to adequately increase FP over the long term. However, the mediating variables of MF and PRE were found to significantly improve a firm’s bottom line.

Originality/value

Prior research has been somewhat lacking and inconsistent with regards to the nature of causal and mediating relationships found between RC, PRE, MF, and a firm’s financial performance. Given the increasing global nature of competition, understanding the relationships between potential factors that could positively impact a firm’s FP has a large potential direct impact and benefit on supply chain operations.

Strategic lean actions for sustainable competitive advantage

Purpose

The purpose of this paper is to add to the quality management body of knowledge by solidifying the connection between operational and strategic aspects of lean transformation. Previous research has examined these issues in isolation, demonstrating mixed results in financial and operational efficiencies. The authors show that when operational and strategic changes are jointly considered the likelihood of success for lean transformation increases.

Design/methodology/approach

The authors provide a literature review of 109 peer-reviewed papers on lean manufacturing and qualitative analysis of 23 Baldrige award winners (2000-2014) that implemented lean to assess the importance of strategic actions in achieving a sustainable competitive advantage through lean transformation.

Findings

The authors find that lean transformation yields mixed results unless strategic actions are taken by senior management. These strategic actions include but are not limited to knowledge management, human resources, and business growth and can result in performance heterogeneity by improving the output/input ratio of the firm. This performance can then manifest as either doing the same level of business with fewer resources (a profit play) or doing more business with the same resources (a growth play). As specific examples, the authors analyzed Baldrige award winners for evidence of lean strategic action to drive performance gains. The authors suggest further model validation through directed interview and/or survey research.

Originality/value

This paper clarifies the need for jointly implementing lean tools with strategic actions. The findings provide more deliberate strategic actions for organizations wishing to increase the likelihood of success of lean transformation and ultimately improve quality.

Measuring collaborative effectiveness: a conceptual approach

Purpose

The purpose of this paper is to present a conceptual supply chain (SC) hierarchical framework to measure the effectiveness and efficiency of the collaborative SC based on the Maslow’s hierarchy of needs and supply chain integration (SCI), supply chain visibility (SCV) and information sharing (IS).

Design/methodology/approach

Multimethods were applied. The first part of the research was undertaken using a deductive approach with rigorous and systematic analysis of the research material and the use of a survey instrument. The data collected through the survey are analysed and presented with descriptive statistics and cross-tabulations. The second part of the research is an extension of the analysis of the first part linking with the Maslow’s hierarchy of needs to form the basis for development of the SCI hierarchy.

Findings

The levels of SCI, SCV and IS are significantly different for organisation dimensions such as size, industry type and region of operations. The SCI hierarchy based on Maslow’s hierarchy of needs provides a number of indices to measure the effectiveness of SCI, IS, SCV in a collaborative SC.

Research limitations/implications

The research focusses only on manufacturing, 3PL, fast-moving consumer goods and retail industries.

Practical implications

The research work provides some insights for practitioners on best practices for SC collaboration and measurement of collaborative effectiveness.

Originality/value

The primary value of this paper is the development of standardized levels of SCI, IS and SCV and the proposed measurement of the collaborative effectiveness of the SC. It could be a proposed approach for empirically evaluating the levels of SCI, IS and SCV subject to organisational dimensions.

Implementation of lean supply chain: an empirical research on the effect of context

Purpose

The purpose of this paper is to empirically investigate the effect of a set of contextual variables on the implementation of lean supply chain (LSC) practices. The authors do that by investigating one main research question: “how do the contextual variables (i.e. plant size, supply chain level, level of onshore suppliers and age of the LM initiative) influence on the degree of adoption of LSC practices?”

Design/methodology/approach

To this end, the authors collected data from 115 companies from different sectors located in Southern Brazil. Data collected was analyzed by means of multivariate techniques. The authors tested if the frequency of observations for each contextual variable was associated to the implementation levels of the LSC practices.

Findings

The evidences suggest that supply chain context significantly impacts the likelihood of implementing LSC practices. In particular, the influence of tier level, plant size and larger experience in implementing LM seems to be substantial across a wide mix of practices. On the other hand, results indicate that contexts in which companies are still beginners at the lean journey and their level of onshore suppliers appear to be less pervasive than previous empirical researches imply.

Originality/value

The implementation of LSC practices entails a different business model, in which improved profits arise from the cooperation rather than bargaining or imposing power over supply chain partners. However, not all organizations should implement the same set of practices, since the adoption of any specific management practice depends upon a set of contextual variables. The understanding of the relationship between the level of adoption of LSC practices and the contextual variables helps to anticipate occasional difficulties and sets the proper expectations along the implementation.

Cross-enterprise value stream assessment

Purpose

In most cases, the conventional assessment of value streams is based on key performance indicators (KPIs) like the share of added value, the degree of flow or a comprehensive lead time analysis. To evaluate cross-enterprise value streams of manufacturing, business or service processes in detail, a holistic methodology is needed. The paper aims to discuss this issue.

Design/methodology/approach

In this research paper, the assessment of value streams within complex cross-company networks is described. After a presentation of relevant KPIs in the fields of value stream management (VSM) and supply chain management (SCM), an approach for a cross-enterprise evaluation of value streams on different levels of detail is shown. In addition, the use of an absolute VSM evaluation, in contrast to a relative VSM assessment, is examined.

Findings

Based on a uniform and well-balanced set of KPIs and other VSM and SCM parameters, a performance assessment on different levels of value stream detail is enabled. Further investigations reveal the advantages of a relative compared with an absolute VSM assessment.

Research limitations/implications

In addition to a comprehensive overview of existing KPIs for a value stream assessment beyond company borders, a holistic and multi-level VSM approach is presented in this paper. In contrast to existing VSM approaches, the described method allows an evaluation and subsequent improvement of value streams within supply chain networks. Up to now, the presented approach for the assessment of cross-enterprise value streams has only been tested in specific industrial environments. In future, the proposed methodology shall also be validated for other process types like business, service or further manufacturing processes.

Practical implications

The described cross-company performance measurement approach shows a high practical relevance for organizations operating in supply chain networks. Due to the integrated use of different VSM parameters, the evaluation of highly interconnected value streams across corporate boundaries is facilitated. By means of a case study, the proposed methodology is validated under real industry conditions and proves its practical applicability.

Originality/value

One of the novel features of this research is the extension of the traditional VSM method with respect to a relative evaluation of value streams based on a set of significant KPIs. In addition, the allocation of these KPIs to different value stream layers and categories leads to an innovative approach for a multi-level assessment according to the needs of the specific VSM application, e.g. a more standardized use of VSM in complex supply chain networks.

Prioritization of Six-Sigma project selection

Purpose

With increasing choice from a range of programs, improvement project selection within broader supply chain context and resource constraints has become a major research challenge. The purpose of this paper is to investigate the different criteria for selecting Six-Sigma (SS) projects based on previous studies. The study is supported by two grounded theories: resource-based view and institutional norms. The criteria include: first, business drivers for improvement and the common performance metrics deployed; second, the organization’s stakeholders needs; and third, process owner’s needs.

Design/methodology/approach

To determine the relative importance of influencing factors, opinions were collected from 30 experienced practitioners including SS champions/master black-belts, company directors, consultants, and process owners through a series of interviews in small, medium, and large organizations including multi-national organizations. The evaluation of criteria is based on analytical hierarchy process.

Findings

The results show that impact on customer, financial impacts, and impact on operational goals are the most significant factors in selecting SS improvement project.

Originality/value

This study is a first attempt to determine the relative weight among SS project selection criteria, which help the practitioner to allocate their limited resources in implementing SS project.