Manufacturing strategy for reliable product delivery in costume jewelry

¶ … theoretical information with relevance to the subject.

The topic of manufacturing strategy, with emphasis on a strategy that ensures dependable product delivery, is a rather wide topic, capturing the attention of researchers of all times, and from all corners of the world. In other words, there is an abundance of resources and the challenge for this chapter would be represented by the identification and integration of sources containing the most relevant and reliable data.

In order to ensure information stability and reliability, the current chapter centralizes data from three types of literary sources, each with their own advantages and limitations. These refer to the following:

Books and textbooks, which address the topic of manufacturing strategy in an in-depth manner and provide vast information on the topic. The limitation of these sources is represented by the fact that they might be outdated and that they might be inefficient to use as the researcher would have to seek the necessary information, rather than have it easily accessible.

Peer-reviewed articles in specialized journals or the research efforts of various universities or institutions. These sources can sometimes be difficult to access due to restrictions and they might also address niche subjects, not always relevant to the topic approached. Nevertheless, they would be more concentrated on the topic presented and more actual than the books.

Last, there are the internet and other media sources, which have the advantage of being easily accessible and efficient to use; also, they address the most recent situations supporting the study in being of actuality. Still, they are seldom peer reviewed and their reliability has to be verified.

All in all then, the current literature review chapter represents the theoretical setting in which the research effort would strive to respond to the research questions and formulate sound recommendations to improving the manufacturing strategy to enhance product deliverability at the jeweler. Otherwise put, the literature review represents the starting point for the future analysis.

2.2. Defining manufacturing strategy

In understanding the concept of the manufacturing strategy, it is useful to start off at the definition of the simple strategy. In this sense, a strategy is understood as the sustained desire of an individual or a group to attain an objective, and also as the course of action taken by the respective party in ensuring that they attain the respective objectives (Chandler, 1962).

However explicit and comprehensive, the definition of the strategy is rather generic, and it reveals that there is an increased need for specificity in ensuring the comprehension and applicability of the concept. In such a setting then, PhD Ken Platts and the Institute for Manufacturing for the University of Cambridge identified three sets of organizational strategies, namely:

Corporate strategy, at which level the company identifies the nature of the business activities to be conducted and the industry in which the firm would operate

The business strategy, at which level the company focuses on the creation of competitive advantages within the selected industry, and last

The functional strategies, at which level the focus falls on the usage of an organizational function to create competitive advantages.

According to Platts, the manufacturing strategy falls under the category of the functional strategies, and its implementation is derived from the decisions made at the corporate and business level. According to Skinner (1985), the manufacturing strategy has a top-down characteristic, in the meaning that it is dictated by the business objectives and its scope is that of following functional instructions to ensure the attainment of the business goals. At this level, the manufacturing strategy can take five specific forms, based on the level at which it is being used. These five levels include the following:

Manufacturing strategies at the level of the manufacturing plant and the adjacent equipment

Manufacturing strategies at the level of the functions of planning and control of production

Manufacturing strategies at the level of labor control and staffing decisions

Manufacturing decisions at the level of product design and engineering, and last

Manufacturing strategies at the level of organization, administration and management (Skinner, 1985).

Overall, a manufacturing strategy is an organized effort implemented by the company in the support of its business goals, and related to at least one of the five manufacturing levels. Ken Platts concludes by saying that:

"A manufacturing strategy is defined by a pattern of decisions, both structural and infrastructural, which determine the capability of a manufacturing system and specify how it will operate to meet a set of manufacturing objectives which are consistent with overall business objectives" (Platts).

Other definitions of the concept of manufacturing strategy, as revealed in the available literature are revealed throughout the following lines:

"Manufacturing strategy ensures a match, or congruence, between the company's markets and the existing and future abilities of the production system" (Lee and Snyder, 2007).

"An effective manufacturing strategy is a written plan for beating competitors on price-quality metrics" (Hall, 2008).

The last definition to be revealed is the one provided by the management specialists at the Chartered Management Institute, who provide a definition similar to others in the literature, yet emphasize more on the existence of manufacturing objectives and their connectivity with the business objectives.

A manufacturing strategy represents "the direction a business takes with its manufacturing operations with the aim of achieving success in the long-term. Manufacturing strategy is a functional element of corporate strategy and involves the development of a series of manufacturing objectives to meet the overall objectives of the business. It typically covers such things as cost, quality, delivery and flexibility, and the trade-offs between them" (Chartered Management Institute).

2.3. Delivery delays

In the development and implementation of the manufacturing strategies, the economic agents seek quick solutions and attainment of their pre-established objectives. Yet, on quite common situations, the strategic implementation does not immediately lead to the expected outcomes, as delays are encountered. In a generic setting, a project delay is understood as a situation in which the delivery of the products is completed later than the initially established date (Barron's Finance and Investment Dictionary, 2012).

Delays in the delivery of the manufacturing products are several problems within a manufacturing plant as they give the partners the right to apply penalty costs for untimely delivery; in other words, the firm would be subjected to increasing costs, as well as damaged organizational reputation as a reliable business partner.

The causes of delivery delays in manufacturing organizations are multiple and vary from one situation to the other. However, some common reasons include inadequate managerial styles and models, limited performance of the projects, or external factors, such as delays in supply receiving or delays generated by the customers. The following lines address some of the more notable factors influencing project delays.

a) Poor Organization Culture and Management

Organization culture has impact on employees' motivation, employees' attitude, level of productivity and efficiency, quality of work, and creativity of employees. If the company has a poor organization culture, this would lead to increasing rework rate due to low morale and performance levels among the staff members (Campbell, Stonehouse and Houston, 1999).

Another cause of project delays is represented by a low quality of documentation and information management (Harrison, Lee and Neale, 2003). Specifically, the lack of quality of documentation management could result in the generation and usage of incorrect information, unclearly defined data, delayed data submitting or even the loss of documentation; ultimately, all these lead to delays in the project delivery.

b) Poor Project Performance

Engaging in several projects at the same time represents yet another cause of project delay. Lack of capacity in production process will overload work in production process, which will lead to lack of quality product. In such a setting, the immediate result would be that of a need to redo the poor quality products, such an action leading to additional costs and increased operational redundancies and inefficiencies.

In other words, the problems internal to the manufacturing team are multiple and include even faulty designs and delays in drawing, all which cause delays in the department's delivery of the final products. Additionally, delays caused by poor project performances can be caused by changes in the design of the product as the manufacturing advances or changes the parts.

"Repercussions from late release of engineering drawing to the manufacturing floor, design changes and parts shortages continue to cause delays in maturing manufacturing processes and force inefficient production lines workarounds" (Sullivan).

Other examples of how poor project management could cause delivery delays include the over-usage of the production line, to a point at which it becomes unable to efficiently and qualitatively complete production tasks; inadequate focus on quality aspects before the start of the manufacturing operations; poor communication within the team as well between the team and the external parties, or the inadequate training of the labor force within the manufacturing plant (China Performance Group, 2012).

c) Equipment problems

Within the modern day business community, increasing emphasis is placed on the role of the knowledge worker to support the creation of value for the company and to support the entity in the attainment of the pre-established objectives; the employees have as such become the most valuable assets of the economic agents (Jackson, Schuler and Werner, 2011). Still, this trait is mostly applicable within the growing services industry, whereas the industry and manufacturing fields still rely tenability on their machines and equipments to lead to the attainment of the pre-established objectives.

In such a setting then, the problems with the plant's machineries and equipments constitute a pivotal factor in the generation of delivery delays. The more stringent situation in this sense is represented in the case of lean times, which subsequently exacerbate the delays in using the respective machine; lead times can take any time from a few weeks to several months. In this context, the single solution is for the manufacturing managers to ensure adequate planning solutions (the Eagle Technology Group, 2011).

Another example is represented by the malfunction in plant production equipments which would also slow down -- or even temporarily cease -- the manufacturing operations. Aside from the actual delays, these forces also generate operational inefficiencies and supplementary expenditures. Finally, a last example to be revealed at this stage is represented by the sometimes common need to switch equipments when moving from one project to the other, or even form one stage to the other. Unless the plant and its team are able to quickly make the switch between equipments delays and inefficiencies would be created (System Design).

d) Other internal factors causing delivery delays

Aside from the already mentioned factors influencing delays in the completion of the manufacturing projects, there are also some other forces which should be mentioned. These are briefly introduced below:

The usage of tertiary parties to complete part of the manufacturing operations; outsourcing can as such be a cause of delays as it generates the loss of control and increases the plant's dependability on a tertiary party (Bragg, 2006)

The decision to relocate the manufacturing plant or to renovate it; in the long-term, such a decision could case organizational gains, yet, in the short-term, it can lead to manufacturing delays

Product complains and its endangerment of consumer health, which would translate into the need to reassess the entire design and manufacturing processes (the Eagle Technologies Group, 2011).

c) External factors

Aside from the previously mentioned factors, delays in the delivery of the manufactured items can also be generated by forces outside the plant. One relevant example in this sense is represented by the delays which could be registered by the suppliers in their own delivery of the commodities; by lacking in the materials necessary for production, the manufacturing plant is unable to work on schedule and deliver as initially planned, leading as such to delays.

Then, another external cause is represented by the delays generated by the customers. In some cases, customers check with the manufacturing outcomes while the process is still ongoing. It is sometimes possible for them to not agree with the offered quality and to demand superior quality; in such a setting, the operational complexities become increased and delays are generated. Additionally, delays can also be generated when the customers change their minds about the order by desiring new features, changes in the volume or the order and so on. Increases in consumer demand for instance almost always materialize in production delays as the manufacturing plant is unable to cope with an unexpected surge in demand (the Eagle Technologies Group, 2011).

Another source of delays can be represented by the natural environment. The effects from natural disasters affect transportation projects but normally the climate changes will affect only the outdoor construction companies because as the organization will not be able to calculate on length time planning of production, which will lead to project delays.

Delays in the delivery of the manufacturing projects can also be encountered due to logistics reasons. The more relevant example in this sense is represented by the relation with the transport company. Sometimes, choosing the transport company is important for every company to avoid project delayed. Some transport companies have poor tracking records of on time delivering to customers. Moreover, delayed shipment can be caused by several factors such as customs, weather, or address, which are beyond the control of the transport company. The transportation delays include any problems which could be encountered at the levels of flight, vessel, and rail transport (Branch, 2008). Each type of transportation has different quality of time controlling, so choosing the right type of transportation can help company to save cost of delivery and manage it to deliver on time.

2.4. Recommendations for dependable product delivery

However disruptive and costly the displays can be within the manufacturing plants, fact remains that these can be addressed through several measures in a means in which their incidence and severity would decrease. Some examples in this sense include the following:

Adjusting the organizational culture and improving the management practices

The stimulation of organizational learning

The improvement in the quality of organizational leadership

The emphasis on developing communication skills within the institution

Improving the relationship with the suppliers, transporters and the environment

Increasing the performances of the projects, with emphasis on mechanisms such as Six Sigma, Lean or ERP.

a) the organizational culture and the managerial practices

According to Alvesson (2002), organizational culture is the link between the cultural dimension and central in all parts of organizational life. The factor behind achievement of business is closely linked with organizational culture, so well managing organizational culture can bring the ultimate success to the company.

From the figure1, there are many different elements that become involved in organizational culture, so when each influencing factor changes, it affects to organizational culture change (Herriort, 1999). Organization culture and management includes organization learning, organizational leadership, success criteria, quality management, and management of employees on turnover rate. Developing organization culture and its framework will help the company to improve its performance and reduce the occurrence of rework.

b) Organizational learning

Organizational learning is yet another method through which a company can improve the skills of its employees in order to reduce the volume of rework. According to Levitt and March (1988), organizational learning is a study model, through which individuals learn by using history in the form of past mistakes and past success experiences in order to guide the employees' behavior. Learning by adapting and interpreting direct and indirect experience can help company to improve conceptual frameworks. Moreover, organizational memory is required in order to continue organizational learning without sensing a negative effect resulted from the turnover rate and the passage of time.

According to Josephson, Larsson and Li (2002), learning is not only based on training programs but also employees should learn from their mistakes and experiences in the field of work. Learning from the mistakes made is a very important lesson for future improvement. Management style of organization generates impact on employees' attitude, performance, and level of reworking. Having strong organization culture would directly reduce level of reworking. Improvement organization culture includes improvement of organizational leadership, in a context in which the leadership style is a crucial element in the overall improvement of the organization culture (Schein, 2010).

c) Organizational leadership

According to Lussier and Achua (2010), leadership is about involving employees and manipulating them to work on something they do not want to work on by using leadership skills to influence them. As a good leadership requires influencing people, Kouzes and Posner (2012) state that inspiring followers can be done by sharing the company's vision with them in order to make them imaginative and attracted by the beautiful picture of the organization in the future.

This is in line with Alinaitwe, Mwakali and Hansson (2009) who argue that good leadership can improve employees' attitude and their satisfaction by allowing them to become involved in planning and considering them in goal setting. The leadership style should be open to communication and sharing of the company's vision with the staff members. The idea is similar to Zaccaro and Klimoski (2001), who argue that the position of leadership is important in work to help organizations to achieve their purposes by running the processes from defining direction for employees until translating direction to make followers understand and achieve organizational the purposes. The key to success in leadership is a functional one, which means collective effectiveness.