Investing in Lean to Improve Basic Capabilities: A strategy for System Supply?
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hdl:2117/104449
Tipus de documentArticle
Data publicació2017-04
EditorOmniaScience
Condicions d'accésAccés obert
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Reconeixement-NoComercial 3.0 Espanya
Abstract
Purpose: This paper describes the perceived effects of implementing lean production in a
Swedish SME contract manufacturer. Especially focused are the effects on, and possible tradeoffs
between, cost-efficiency and flexibility.
Design/methodology/approach: SME suppliers need basic capabilities of qualitative
production performance as stepping-stones to develop more system supplier capabilities for
added customer value. Development of stable production processes is seen as a way to reach
stable basic performance, efficient and with higher resource utilization. Quality is a precursor to
delivery performance as well as to cost reduction and flexibility. This is a longitudinal single case
study of a SME supplier striving to become a system supplier. Two main sources of data
collection are used: interviews and the main author’s presence as employee and business
developer, participating in and following up the ongoing change process.
Findings: Analyzing the development over time illustrated the importance of context and
content for the change process. Two specific findings appeared: (1) An initial effect was an
important “eye-opener” for the balance between cost efficiency and flexibility in the organization.
(2) Process orientation, as the basis of both lean and agile approaches, allows many improvements
without any conflicts or trade-offs between these two goals. Stability in the production leads to increased controllability, initially resulting in both higher cost-efficiency and higher flexibility. As
the organization develops however, strategic considerations relating to the chosen market strategy
might occur: cost leadership or differentiation.
Research limitations/implications: These results reflect the experiences of one SME supplier
and further studies are needed for generalizability.
Originality/value: The study increases the understanding of how a SME may develop stable
processes in its different supplier-customer contexts. The study points at some necessary basic
components of this process approach as a first step for the transition to system supplier.
CitacióCarlsson, I.; Aronsson, H. Investing in Lean to Improve Basic Capabilities: A strategy for System Supply?. "Journal of Industrial Engineering and Management", Abril 2017, vol. 10, núm. 1, p. 28-48.
Dipòsit legalB-28744-2008
ISSN2013-0953
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