Identification of the Barriers in Implementation of Lean Principles in Iranian SMEs: Case Study Approach

The manufacturing sector is considered to be a cornerstone in the global economy through its influence on areas such as mining and construction in upstream and warehousing and transportation in downstream. Despite having a rich literature concerning the application of lean principles in the large companies, the number of studies related to SMEs is relatively limited and a lot of essential problems and areas are largely untouched in academic research. This paper aims to identify the main barriers in implementation of lean manufacturing principles in Iranian SMEs. In order to do so, case study approach was selected and 9 in-depth interviews were conducted in various industrial sectors such as electrical equipment, industrial machinery and automotive part supplier. As a result the main barriers were classified into four categories namely, lack of top management support, financial capability, lack of employee’s skill and expertise and organizational culture. Accordingly a guideline was developed that can be adopted to address the aforementioned barriers and reduce their costs by adopting the lean principle

Investigation into re-shoring UK manufacturing using additive manufacturing as a method to enable manufacturing postponement

This thesis describes case study research investigation into re-shoring UK manufacturing using Additive Manufacturing as a method to enable manufacturing Postponement. After identifying the gap in the knowledge by conducting a literature review, the author aims to understand the primary motivation behind the re-shoring phenomenon in the UK. The initial investigation is done by targeting the UK based organisations that have been involved in supporting the re-shoring phenomenon. As a result, lack of responsiveness was found to be the key factor behind re-shoring in the UK. This is then followed by an investigation considering this issue from countries to which manufacturing has been offshored in the past, in particular, India. The research studies the factors that influence this decision from Indian industries perspectives and investigates what the key issues are behind the lack of responsiveness in India. This is whilst India is one of the most attractive offshoring destinations among the other low-cost countries. This introduces the next objective of this research which is to identify a strategy that could help the industries to address such issues. Consequently the concept of Postponement was selected as a strategy and Additive Manufacturing (AM) was identified as a manufacturing method that could enable Postponement. Such a combination can enable companies to shorten their lead-time and be more responsive to their domestic customers. This study also develops a clear picture of re-shoring in the UK and bridges this phenomenon to the new generation of technologies and emerging mega trends. It particularly focuses on AM technologies as an enabling manufacturing method the Industry 4.0. The results obtained from the survey study indicate that there is a positive view towards applicability of AM technologies within the supply chain of the re-shoring companies. The final section of this thesis aims to iii provide a series of case studies where AM technologies are used to further enable companies to reduce their lead time and achieve more customisation. It shows that the companies can re-shore their production activities back to the home country by using AM technologies and engage in a local supply chain. Therefore this study adds insight into manufacturing challenges related to re-shoring and provides a potential solution for the companies that are involved in the production of high value added production. The results from this section indicate that the re-shoring companies will be capable of accommodating product changes and process changes. They can also reduce their inventories, production lead-time, and transportation costs, meanwhile increase product customisation

A review of manufacturing re-shoring in the context of customer-focused postponement strategies

For more than half a century, offshoring has been a trend among many industry sectors and all company sizes which are aiming to expand business by reducing costs and accessing foreign markets. However, in recent years, the evidence indicates that offshoring strategies may no longer continue to provide the same level of benefits for organizations’ manufacturing activities. Companies have begun to establish a better understanding of the total risk/benefit-balance and base their supplier decisions on strategic supply chain issue rather than simply relying on cost analysis. Hence, it is evident that there are tendencies to reverse the offshoring strategy and re-shoring manufacturing activities back to the home country. Despite the significance of this phenomenon to manufacturing, the supply chain literature has focused predominantly on the macro economic analysis, while the literature on the operational aspects of re-shoring is relatively sparse. The first half of this article aims to address the first research question which identifies the operational motivations behind the re-shoring phenomenon. This is done by studying the current literature available on the context of re-shoring. The second half of the article determines the feasibility of a manufacturing strategy, ‘postponement’, as a possible solution for the companies to adjust and cope with the volatile customer demands and new generation of technologies towards more responsive production and customizable products

Implementation of Agile Manufacturing Principles in Small and Medium Enterprises (SMES)

Modern manufacturing is under ever increasing pressure to develop solutions for highly complex tasks. In order to maintain the business survival in a highly competitive environment, it is vital to obtain customer satisfaction, which requires developing products with shorter lifecycles and higher quality meanwhile to reduce the production costs. In order to achieve such objectives a paradigm has been developed called “agile manufacturing”. However according to the literature, this tool has been widely used within the large companies, there is still an ongoing research to prove their applicability in Small and Medium Enterprises (SMEs). This paper aims to assess the feasibility of applying agile manufacturing principles within SMEs using 10 case studies in the UK and Malaysia. It contributes to theory by being able to identify the main barriers in the implementation of agile manufacturing by dividing them into three categories namely “lack of management skills”, “technological limitations” and “lack of workforce experience”. It also provides recommendations for each aforementioned issue so it could be used as guidelines for the industries to employ these methodologies

The impact of Industry 4.0 implementation on supply chains

Purpose The study aims to analyse the impact of Industry 4.0 implementation on supply chains and develop an implementation framework by considering potential drivers and barriers for the Industry 4.0 paradigm. Design/methodology/approach A critical literature review is performed to explore the key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organisational, technological and legal and ethical. A system dynamics model is later developed to understand the impact of Industry 4.0 implementation on supply chain parameters, by including both the identified driving forces and barriers for this technological transformation. The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains. Findings Industry 4.0 is predicted to bring new challenges and opportunities for future supply chains. The study discussed several implementation challenges and proposed a framework for an effective adaption and transition of the Industry 4.0 concept into supply chains. Research limitations/implications The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains. Practical implications The study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network. Originality/value Simulation analysis provides examination of Industry 4.0 adoption in terms of its impact on supply chain performance and allows incorporation of both the drivers and barriers of this technological transformation into the analysis. Besides providing an empirical basis for this relationship, a new conceptual framework is proposed for Industry 4.0 implementation in supply chains

Responsiveness, the primary reason behind re-shoring manufacturing activities to the UK: an Indian industry perspective

Purpose: Due to today’s volatile business environment companies have started to establish a better understanding of the total risk/benefit-balance concerning manufacturing location decisions of their component supply. The focus is now much more on comprehensive and strategic supply chain issues rather than simply relying on piece part cost analysis. This has led to an emerging trend called re-shoring. The aim of this paper is to understand the primary motivation behind the re-shoring strategy in the UK and investigate the factors that influence this decision from Indian industries perspectives. Design/methodology/approach: The analysis of the paper is based on interviews conducted in the UK and India (State of Tamil Nadu) in various industries including automotive, industrial goods, textile, and marine. For this purpose an interview framework based on key enablers identified from the literature, being IT solutions, manufacturing equipment and human factors. This provided an assessment of the capability of the companies for being responsive to western demand. Findings: The findings indicate that re-shoring to the UK is the result of inadequacy in responsiveness and long production lead-times of the Indian suppliers. The outcome of this paper indicates that the top factors behind this inadequacy in responsiveness are logistics and transportation, electricity shortage, excessive paperwork and working attitude. Originality/value: This paper aims to fill the gap in the re-shoring literature by providing a clear picture behind the reason for re-shoring in the UK and identify the drivers behind this shortcoming in the component supply from India

Investigation on Additive Manufacturing as an enabler for reshoring manufacturing activities

The recent phenomenon known as re-shoring, has gained momentum among developed countries. It is also evident that the new generation of technologies such as Additive Manufacturing (AM) and intelligent robotics can affect the manufacturing location decision. This study aims to investigate how AM can help companies to re-shore manufacturing activities. Three in-depth case studies are conducted where AM is used as primary manufacturing approach to reduce the number of suppliers and shorten the supply chain. The results show that companies can reduce transportation, lead-time, inventory and substantially improve customisation, meanwhile accommodate product changes as well as process changes in production

Supply chain reconfiguration in response to geopolitical disruptions: exploration versus exploitation

Companies have extensively invested in offshoring strategies, creating geographically dispersed, complex networks. Organisational ambidexterity through balancing the exploration (flexibility) and exploitation (efficiency) capabilities in supply chains enables firms mitigate the negative impact of supply chain disruptions. In this study, we aim to identify the mechanisms by which companies respond to geopolitical and natural disruptions in the context of the US-China trade war, Brexit, and the coronavirus pandemic. This study highlights companies’ need to be simultaneously efficient and responsive in their supply chain operations to become resilient against a global pandemic and geopolitical tensions

Post-Brexit back-shoring strategies: what UK manufacturing companies could learn from the past?

The manufacturing sector in the UK is currently undergoing a significant supply chain transformation and managers are re-evaluating supply chain location decisions to minimise the disruptions caused by Brexit. This entails manufacturing offshoring and back-shoring once again being considered as strategic decisions and companies ought to make informed choices with respect to where they source or manufacture their products. This paper aims to contribute to an improved understanding of the back-shoring phenomenon in the UK. Eight case studies of back-shoring have been analysed and compared using a theoretically informed framework. The results show that back-shoring can stem from both misjudgements of previous offshoring decisions as well as changes in the demand pattern in the home country. Unlike offshoring decisions being mainly cost-oriented, strategic shift aimed at increasing the value perceived by the customer has a pivotal role in the back-shoring decision. Furthermore, skill shortage is the main barrier for the implementation of back-shoring strategies in the UK and requires companies’ attention prior to its repatriation

Using not-for-profit innovation networks to transition new technologies across the Valley of Death

Purpose This paper aims to seek answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from proof-of-concept to commercialisation? Design/methodology/approach This question is examined using the knowledge-based view and network orchestration theory. Data are collected from 35 interviews with managers and engineers working within seven centres that comprise the High Value Manufacturing Catapult (HVMC). These centres constitute a not-for-profit innovation network where suppliers, customers and competitors collaborate to help transition new technologies across the “Valley of Death” (the gap between establishing a proof of concept and commercialisation). Findings Network orchestration theory suggests that a hub firm facilitates the exchange of knowledge amongst network members (knowledge mobility), to enable these members to profit from innovation (innovation appropriability). The hub firm ensures positive network growth, and also allows for the entry and exit of network members (network stability). This study of not-for-profit innovation networks suggests the role of a network orchestrator is to help ensure that intellectual property becomes a public resource that enhances the productivity of the domestic economy. The authors observed how network stability was achieved by the HVMC's seven centres employing a loosely-coupled hybrid network configuration. This configuration however ensured that new technology development teams, comprised of suppliers, customers and competitors, remained tightly-coupled to enable co-development of innovative technologies. Matching internal technical and sectoral expertise with complementary experience from network members allowed knowledge to flow across organisational boundaries and throughout the network. Matrix organisational structures and distributed decision-making authority created opportunities for knowledge integration to occur. Actively moving individuals and teams between centres also helped to diffuse knowledge to network members, while regular meetings between senior management ensured network coordination and removed resource redundancies. Originality/value The study contributes to knowledge-based theory by moving beyond existing understanding of knowledge integration in firms, and identified how knowledge is exchanged and aggregated within not-for-profit innovation networks. The findings contribute to network orchestration theory by challenging the notion that network orchestrators should enact and enforce appropriability regimes (patents, licences, copyrights) to allow members to profit from innovations. Instead, the authors find that not-for-profit innovation networks can overcome the frictions that appropriability regimes often create when exchanging knowledge during new technology development. This is achieved by pre-defining the terms of network membership/partnership and setting out clear pathways for innovation scaling, which embodies newly generated intellectual property as a public resource. The findings inform a framework that is useful for policy makers, academics and managers interested in using not-for-profit networks to transition new technologies across the Valley of Death