Capability for continuous improvement: Analysis of companies from automotive and capital goods industries

A Lean Manufacturing Progress Model and Implementation for SMEs in the Metal Products Industry

The manufacturing industry faces the challenge of small and diversified customer orders. To meet this challenge, strong internal production capabilities are required. A lean manufacturing process that uses fewer resources and offers greater process improvement will help SMEs to continue to contribute to the global economy. Though SMEs provide most employment opportunities, previous studies have focused on large companies in auto-manufacturing-related industries. With the commitment and support of the management, and the application of a value stream map (VSM) and related improvement tools, we produced a practical process improvement model for a lean manufacturing system in an SME. With the commitment and support of the management and the joint efforts of the project improvement staff, the 10 improvement projects over a six-month period all achieved their goals: reduction in lead time from 26 days to 19.5 days, improvement of welding per people per hour (PPH) efficiency by 28.3%, improvement of packaging PPH efficiency by 64.1%, improvement of working in process (WIP) efficiency at the production site by 83.84%, and improvement of raw material storage by 83.84%. The efficiency of the raw material warehouse inventory was improved by 58.63%, and the efficiency of the shipment completion rate was improved by 14.5%.

Barriers and Enablers for Continuous Improvement Methodologies within the Irish Pharmaceutical Industry

This study aims to investigate the barriers that exist when implementing continuous improvement methodologies, such as Lean Six Sigma (LSS), within the Irish Pharma industry. The main finding of this study is that 45% of participants perceived that a highly regulated environment could be a barrier to continuous improvement implementation, while 97% of respondents utilised Continuous improvement (CI) methods, such as Lean, Six Sigma, and LSS, within their organisations. While the International Conference of Harmonisation integrates CI into its Pharmaceutical Quality Systems (PQS) regulations, the highest motivation for CI implementation amongst the Irish Pharma industry is to improve Productivity and Quality. The main obstacles highlighted for CI implementation in Pharma attributed to stringent regulatory regimes were fear of extra validation activity, a compliance versus quality culture, and a regulatory culture of being “safe”. Another relevant finding presented in this paper is that participants CI LSS tools are very strongly integrated into the pharma industries corrective and preventative action system, deviations, and internal audit systems. Limitations of the research are that all the data collected in the survey came from professionals working for multinational Pharmaceutical companies based in Ireland. The authors understand that this is the first research focused on the barriers and status of CI initiatives in the pharmaceutical industry. The results of this study represent an important step towards understanding the enablers and obstacles for the use of continuous improvement methodologies in pharmaceutical manufacturing industries on a global scale.

Mastering continuous improvement (CI): the roles and competences of mid-level management and their impact on the organisation's CI capability

Purpose

This paper establishes a comprehensive basis for understanding the roles and competences of mid-level management and their influence on the effectiveness of continuous improvement (CI) capability within an organisation.

Design/methodology/approach

This research builds upon the hypothesis that methods alone do not lead to successful CI capability development. It focuses on the role of mid-level management in driving a CI environment that underpins the effectiveness of CI capability. A reference model for the CI environment is synthesised based on critical literature review, integrating CI culture, CI enablers and CI leadership elements. A comprehensive framework is introduced to define CI leadership roles and competence indicators. A quantitative benchmarking study involving structured interviews with 15 UK organisations was undertaken to collect evidence for a causal relationship between CI leadership competences and CI capability.

Findings

Analysis of the benchmarking data provides clear evidence of the causal relationship between the CI leadership competences of mid-level management and CI capability of the organisation. Given that the empirical study was structured on the basis of the CI leadership roles and competences framework introduced in this paper, this also provides validation for the proposed framework and the CI environment model.

Practical implications

The evidence-based knowledge of the positive relationship between the mid-management CI leadership competences and the effectiveness of the CI capability informs strategic organisational development interventions towards enhancing CI capability and effectiveness, ultimately underpinning productivity enhancement and sustainability. The framework for mid-level management CI leadership roles, responsibilities and competences introduced in this paper and grounded in underpinning work undertaken within a large automotive Original Equipment Manufacturer (OEM), can be adapted by any organisation. The CI environment reference model should provide a comprehensive support for strategists to communicate the framework for CI capability improvement within an organisation, to enhance acceptability and adherence to improvement actions.

Originality/value

This research proves for the first time the significance of the causal relationship between the CI leadership competences and the effectiveness of the CI capability within an organisation, thus filling an important gap between established previous work, focussing on the role of mid-level management on one side and practitioner and team level roles, methodologies and tools. The proposed CI environment model is a theoretical contribution with reference value for both practice and further studies. The comprehensive framework for mid-level management CI leadership roles, responsibilities and competences introduced in this paper provides sound foundation to deliver CI leadership in the workplace.

Exploring human resource work design, learning mechanism and TQM: through the lens of activity theory and contextual learning theory

Purpose

This research examines the effects of the context on the relationship between work design, learning mechanism and total quality management (TQM). The exploratory study examines the differential effects in context on how human resources and their activities are strategically managed for achieving TQM. Two theoretical frameworks – activity theory and contextual learning theory – are concurrently used for analysis. Specifically, the manufacturing companies, the authors examine are (1) technology-intensive company which has bought technology from a global foreign establishment (MU1), (2) technology-intensive companies having their own technology (MU2) and (3) labor-intensive units (MU3) of varying organizational sizes.

Design/methodology/approach

This case study-based research consists of 27 in-depth interviews with managers and employees of different hierarchies in each manufacturing unit. The authors interviewed them using semi-structured questions that were pre-validated by five senior HR experts from the manufacturing industry. Document analysis, multiple site visits and website content helped triangulation. The data are coded and analyzed using Dedoose software for qualitative research.

Findings

Activity diagrams for each manufacturing unit provides task and interaction analysis. Within and cross-case analysis address complexity and challenges of contextual reality, influences on work design and learning mechanism. HRD executives must recognize that there may be well-differentiated learning behaviors that align with organizational strategy. The learning behaviors may not be well-differentiated and become very dynamic. This dynamism may be characterized by double loop and single-loop learning feeding into each other.

Practical implications

This study provides substantial practical implications for HRD and other managers in the manufacturing sector.

Originality/value

The new theoretical framework adds to organizational behavior studies through multi-level and cross-contextual approach. It informs strategic combinations and interactions between internal and external context, and learning needs implicating work design and TQM.

Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers

Purpose

The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.

Design/methodology/approach

Based on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.

Findings

This study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.

Research limitations/implications

The limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.

Practical implications

Companies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.

Originality/value

Auto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.

Empirical analysis of Six Sigma project capability deficiency and its impact on project success

Purpose

The purpose of this paper is to understand the deficiencies in Six Sigma project capability and empirically validating its impact on project success.

Design/methodology/approach

Deficiencies are identified from literature focusing on Six Sigma challenges or barriers. The study used a survey approach by circulating questionnaires to 400 Six Sigma professionals from 40 multinational organisations. The conceptual model is composed of 16 items measuring five constructs for hypothesis testing. Furthermore, structural equation modelling was used to identify the relationship between Six Sigma project capability deficiency and project success.

Findings

The findings of the study suggest that inadequate top management support, inadequate resources and change management and inadequate quality maturity form Six Sigma project capability deficiency and affect project success.

Research limitations/implications

The study uses resource-based view to understand the deficiencies in Six Sigma project capability and their impact on project success. The study confirms that organisational capabilities in implementing Six Sigma affect the success of the projects.

Practical implications

The results of this study reveal that inadequate top management support, inadequate quality maturity of the organisation and inadequate resources and change management result into a deficiency in Six Sigma project capability. Quality managers in manufacturing and service organisations should attempt to improve these capabilities to achieve competitive advantage.

Originality/value

The study contributes to the literature by exploring the capability outlook of Six Sigma. The study attempts to fill the gap in Six Sigma literature by providing a structural model for understanding Six Sigma project capability deficiency and its impact on Six Sigma project success.

Predicting performance – a dynamic capability view

Purpose

Production planning and resource allocation are ongoing issues that organisations face on a day-to-day basis. The purpose of this paper is to address these issues by developing a dynamic performance measurement system (DPMS) to effectively re-deploy manufacturing resources, thus enhancing the decision-making process in optimising performance output. The study also explores the development of dynamic capabilities through exploitation of the organisational tacit knowledge.

Design/methodology/approach

The study was conducted using six-stage action research for developing DPMS with real-time control of independent variables on the production lines to study the impact. The DPMS was developed using a hybrid approach of discrete event simulation and system dynamics by using the historical as well as live data from the action case organisation.

Findings

Through the development of DPMS and by combining the explicit and tacit knowledge, this study demonstrated an understanding of using cause and effect analysis in manufacturing systems to predict performance. Such a DPMS creates agility in decision making and significantly enhances the decision-making process under uncertainty. The research also explored how the resources can be developed and maintained into dynamic capabilities to sustain competitive advantage.

Research limitations/implications

The present study provides a starting-point for further research in other manufacturing organisations to generalise findings.

Originality/value

The originality of the DPMS model comes from the approach used to build the cause and effect analysis by exploiting the tacit knowledge and making it dynamic by adding modelling capabilities. Originality also comes from the hybrid approach used in developing the DPMS.

Can continuous improvement lead to satisfied customers? Evidence from the services industry

Purpose

To achieve higher customer satisfaction (CS), companies implement continuous improvement (CI) programs, regardless of the growing evidence of their failure to achieve declared goals. The purpose of this paper is twofold: first, to identify whether companies are able to improve CS through the application of CI; and, second, to identify what organizational practices are able to facilitate the impact of CI on CS.

Design/methodology/approach

To test the developed assumptions, the study uses the structural equation modeling technique. The data for analysis were collected from 304 service companies via a custom web-survey.

Findings

The research confirms the direct positive impact of CI on CS. Further, the study demonstrates that management commitment and rewards system that encourages employees to participate in CI play the major facilitating role in improving CS through CI. These practices accompanied by quality-oriented culture and employee training in the improvement tools provide necessary infrastructure to sustain CI in the companies over time. Additionally, regardless of the vital role of goal setting for CI established in previous research, the proposed study finds a limited ability of goal setting, as compared to other organizational practices, to facilitate CI–CS relationship.

Originality/value

The study contributes to the scarce field of research on CI implementation in the services environment. Further, the research assesses CS as a variable of interest, as opposite to the previous studies, considering CS as a part of the composite variable. The research assesses the impact of the training in CI methodology on the CI–CS relationship, while previous research focuses on the general, work-related training. The findings provide an important basis for further academic work in the area of quality management. The identified practices can serve as guidance for managers, implementing CI in their companies due to the high fit of the proposed model.