A model for linking shop floor improvements to manufacturing cost and profitability

Manufacturing units in the so called high-cost countries are struggling under fierce competition on the global market. In order to survive, the factory needs to generate profit to its owners. Profitability can be reached in many different ways apart from only lowering the employees' salaries. It can be improved through increased profit margins (sales in relation to costs) or with an increased capital turnover rate. Finding ways to free capacity and to improve flexibility in order to increase sales is often more interesting to the manufacturing companies than cutting the direct salary costs. A model for analysing profitability of a manufacturing unit is proposed. It is found on a production system analysis and combines in-depth production engineering analysis with economical accounting analysis of the factory. The manual work tasks are of special interest and the productivity of selected bottleneck work areas are analysed thoroughly. The model is intended for use by two industrial analysts during a one-week study. Simulation of different improvement scenarios is carried out and presented to the factory management at the end of the profitability study. A software implementation is required in order to generate the model, collect data and make simulation within the intended time. The implementation is made in spread sheet software using Visual Basic to program interfaces and automatic functions. The primary area of application is the electronics industry in Sweden where the model is used in a research project to strengthen the competitiveness of that industry

A framework of justification criteria for advanced manufacturing technology implementation in small and medium enterprises

Today in order to stay in businesses and prosper, Small and Medium Enterprises (SMEs) are seeking higher electiveness and competitiveness across the entire cycle of marketing, product design, manufacture, test and sales. SMEs play an increasingly important role in all aspects of competitiveness: both products and production techniques, but also management methods, the organization of the firm and human resources training. One of the ways by which SMEs can achieve a competitive advantage in manufacturing is through the implementation of Advanced Manufacturing Technology (AMT). An increasing number of them have chosen and are choosing various levels of AMT as the solution. Realizing the importance of SMEs, an attempt has been made in this paper to review the application of AMT in SMEs. Also, a framework has been offered for the implementation of AMT in SMEs. Finally, a summary of findings and conclusions are presented

Multiple case-study analysis of quality management practices within UK Six Sigma and non-Six Sigma manufacturing small- and medium-sized enterprises

This paper examines multiple case-study analysis of quality management practices within UK Six Sigma and non-Six Sigma manufacturing small- and medium-sized enterprises

Doing Well and Doing Good: Pioneer Employers Discover Profits and Deliver Opportunity for Frontline Workers

A new study of business practices reveals powerful ways to create strategic and financial gains. Lower-wage workers, when supported by effective policies, boost productivity, quality, innovation, and revenues from new markets. In the process, the value added by frontline employees rises and they garner significant and sustained wage gains and career advancement. The successful formulas of these firms are models adoptable by thousands of similar businesses

Sustainable Activity-Based Costing in a Small Flexible Manufacturing Environment

This qualitative study was written to expand the understanding of the potential sustainable use of activity-based costing in a small flexible manufacturing environment. The research was designed as a multiple-site case study, targeting two diverse small manufacturers in this market segment. Information was gathered to develop an understanding of how these firms cost their products, captured base manufacturing data, and the impact their leadership had on the management of costing processes. The information was gathered from documents received and observations on the shop floor at each participant site. In addition, participants from different functions either directly impacting or indirectly influencing the costing processes were interviewed at each site. The common theme at both locations was the minimal level of management accounting knowledge beyond the individuals directly tasked with the maintenance of the costing process. The other two topic themes discussed the way the firms collected production data. The interpretation of the findings by the researcher noted the strong influence of the market and profitability constructs on the leadership’s openness to change. This study will assist practitioners in emphasizing the need to understand the corporate environment before initiating any costing process change. Further research on possible optimum organizational size for the initiation of developing complex costing processes was encouraged, as the need to gain more accurate data is balanced against the day-to-day operational demands of the manufacturer. In addition, the findings noted the need to expand management accounting knowledge outside the accounting function to assist firms in understanding the impact of their actions and the impacts of process improvement initiatives. Key words: Flexible manufacturing, activity-based costing, management accounting

Object-oriented Modeling of Manufacturing Resources Using Work Study Inputs

Resources are the core of manufacturing models. They provide information about the people and equipment that perform activities on the shop floor. Comprehensive representations of equipment are common but human resources are often defined to a very limited extent. This paper presents how work study data can be applied as input to detailed modeling of human manufacturing resources. The purpose is to provide a valid representation of manual work tasks on a shop floor level. If implemented in manufacturing models the valid representation will contribute to improve planning, control and execution of production. It also facilitates and encourages production improvement initiatives

Combining Overall equipment Efficiency (OEE) and productivity measures as drivers for production improvements

To compete on a globalized market companies need to constantly improve the performance in their manufacturing systems. Production performance measures can be used for different purposes, by practitioners they are commonly used for follow-up and reporting purposes. Two of the most commonly used performance measures are Overall Equipment Efficiency (OEE) and productivity. Between these two productivity exhibits the far most variety in definition. Even if OEE and productivity are strongly affected by improvement work, they are seldom used to drive the improvement efforts. The purpose of this paper is to present definitions of productivity suitable as improvement drivers, and to discuss the need for a combined set of performance measures to drive productivity improvements. Finally some experiences from industrial improvement work are viewed

Lean Strategy Implementation Challenges

A Lean strategy is widely recognised for improving competitiveness in many manufacturing organisations. However, the majority of the organisations that attempt to implement Lean only on the shop floor do not completely succeed on it, as organisations face many critical factors like culture, training, and management support when implementing a new strategy. Hence, there is a need to address this topic of research. This research aims to investigate where potential breakdowns occur in the hierarchical levels within an organisation when trying to implement a Lean Strategy. The approach is based on findings from other authors and the variables of the study are linked with human behaviour. Moreover, the research contains data obtained from a questionnaire to analyse the perspective of two cases studies based in the Northeast of England and Mexico. This research consists of scheduled interviews applied to different hierarchical levels of the two organisations. The findings of the study will be used to improve the implementation of a Lean strategy in an organisation

Satanic Mills or Silicon Islands? The Politics of High-Tech Production in the Philippines

[Excerpt] So how do we make sense of high-tech production as it emerges in developing countries like the Philippines? What explains the changes and wide variation in how work is organized? What can these changes tell us about the transformation of work in a globalizing economy? And finally, what consequences do these changes have for workers, the vast majority of whom are women? This book engages these key research questions by taking them up at a strategically crucial and empirically grounded flashpoint: a local site of global production and the local labor market in which it is embedded