Systematic innovation and the underlying principles behind TRIZ and TOC

Innovative developments in the design of product and manufacturing systems are often marked by simplicity, at least in retrospect, that has previously been shrouded by restrictive mental models or limited knowledge transfer. These innovative developments are often associated with the breaking of long established trade-off compromises, as in the paradigm shift associated with JIT & TQM, or the resolution of design contradictions, as in the case of the dual cyclone vacuum cleaner. The rate of change in technology and the commercial environment suggests the opportunity for innovative developments is accelerating, but what systematic support is there to guide this innovation process. This paper brings together two parallel, but independent theories on inventive problem solving; one in mechanical engineering, namely the Russian Theory of Inventive Problem Solving (TRIZ) and the other originating in manufacturing management as the Theory of Constraints (TOC). The term systematic innovation is used to describe the use of common underlying principles within these two approaches. The paper focuses on the significance of trade-off contradictions to innovation in these two fields and explores their relationship with manufacturing strategy development

Managing the trade-off implications of global supply

The cost versus response trade-off is a growing logistics issue due to many markets being increasingly characterized by demand uncertainty and shorter product life cycles. This is exacerbated further with supply increasingly moving to low cost global sources. However, the poor response implications of global supply are often not addressed or even acknowledged when undertaking such decisions. Consequently, various practical approaches to minimising, postponing or otherwise managing the impact of the demand uncertainty are often only adopted retrospectively. Even though such generic solutions are documented through case examples we lack effective tools and concepts to support the proactive identification and resolution of such trade-offs. This paper reports on case-based theory building research, involving three cases from the UK and USA used in developing a conceptual model with associated tools, in support of such a process

The strategic integration of agile and lean supply

Lean supply is closely associated with enabling flow and the elimination of wasteful variation within the supply chain. However, lean operations depend on level scheduling and the growing need to accommodate variety and demand uncertainty has resulted in the emergence of the concept of agility. This paper explores the role of inventory and capacity in accommodating such variation and identifies how TRIZ separation principles and TOC tools may be combined in the integrated development of responsive and efficient supply chains. A detailed apparel industry case study is used to illustrate the application of these concepts and tools

Supply chain decision making supported by an Open books policy

Based on a study of a buyer–seller relationship in the automotive industry, this article identifies 17 different decision-making processes where openly sharing cost data—a so-called open books policy—plays an important supporting role. These processes relate to supplier selection, various activities that occur prior to production, and the full-speed production stage of the exchange process. Overall, open books plays the greatest role in the pre-production stage, although it is found to support decision-making relating to supplier selection and decision-making during full-speed production to a greater extent than the literature recognizes

Teaching operations management using a 'pseudo'-scientific approach

The purpose of this paper is to explore a theory led approach to teaching operations and supply chain management that has emerged from the analysis of seminal operations management developments and case research. This research identified common operations construct relationships encompassing variation, uncertainty, buffering mechanisms and trade-offs which are used to provide a common basis for explaining these developments, linking established theory with current professional practice. The construct relationships are further shown to comprise three distinct but coordinated strategies that provide a useful framework for case evaluatio

Cultural and economic complementarities of spatial agglomeration in the British television broadcasting industry: Some explorations.

This paper considers the processes supporting agglomeration in the British television broadcasting industry. It compares and contrasts the insights offered by the cultural turn in geography and more conventionally economic approaches. It finds that culture and institutions are fundamental to the constitution of production and exchange relationships and also that they solve fundamental economic problems of coordinating resources under conditions of uncertainty and limited information. Processes at a range of spatial scales are important, from highly local to global, and conventional economics casts some light on which firms are most active and successful

Product customisation: an empirical study of competitive advantage and repeat business

Empirical evidence is presented from 24 UK based manufacturing companies, all offering a degree of product customisation, with most having a significant Engineer-to-order (ETO) element. The majority of the companies are SME’s, with the associated limited managerial resources. The evidence addresses the issues of competitive advantage, including a detailed investigation of the strategic importance of repeat business. It contrasts its results with those generally found in the literature and concludes that there are significant differences in the order winners/ qualifiers. In particular, the evidence suggests that customisation is an order qualifier rather than an order winner; as it is increasingly unlikely that competitors will only offer a more standard product. Thus alternative order winners are needed and often price becomes the most significant factor, rather than being a mere order qualifier. Four different types of repeat business are then identified and the strategic importance of repeat business is discussed. It is indicated that for some ETO companies, repeat business is perceived to be an important method to reduce costs and achieve business stability. However, a number of the other companies studied saw repeat business as infeasible and hence need to find other ways to reduce costs and improve company performance measures, such as lead times. Future research to extend this work into a longitudinal study is proposed. Issues to explore are how the importance of repeat business has changed, and how the companies have evolved in terms of the degree of customisation offered versus that offered by their competitors

Opportunities for and challenges to further reductions in the “specific power” rating of wind turbines installed in the United States

A wind turbine’s “specific power” rating relates its capacity to the swept area of its rotor in terms of Watt per square meter. For a given generator capacity, specific power declines as rotor size increases. In land-rich but capacity-constrained wind power markets, such as the United States, developers have an economic incentive to maximize megawatt-hours per constrained megawatt, and so have favored turbines with ever-lower specific power. To date, this trend toward lower specific power has pushed capacity factors higher while reducing the levelized cost of energy. We employ geospatial levelized cost of energy analysis across the United States to explore whether this trend is likely to continue. We find that under reasonable cost scenarios (i.e. presuming that logistical challenges from very large blades are surmountable), low-specific-power turbines could continue to be in demand going forward. Beyond levelized cost of energy, the boost in market value that low-specific-power turbines provide could become increasingly important as wind penetration grows

A prescriptive approach to qualify and quantify customer value for value-based requirements engineering

Recently, customer-based product development is becoming a popular paradigm. Customer expectations and needs can be identified and transformed into requirements for product design with the help of various methods and tools. However, in many cases, these models fail to focus on the perceived value that is crucial when customers make the decision of purchasing a product. In this paper, a prescriptive approach to support value-based requirements engineering (RE) is proposed, describing the foundations, procedures and initial applications in the context of RE for commercial aircraft. An integrated set of techniques, such as means-ends analysis, part-whole analysis and multi-attribute utility theory is introduced in order to understand customer values in depth and width. Technically, this enables identifying the implicit value, structuring logically collected statements of customer expectations and performing value modelling and simulation. Additionally, it helps to put in place a system to measure customer satisfaction that is derived from the proposed approach. The approach offers significant potential to develop effective value creation strategies for the development of new product