Modelling company generic production capabilities in process industries

Lager, Thomas; Samuelsson, Peter; Storm, Per

doi:10.1108/ijopm-11-2014-0544

Cited by 13 publications

(7 citation statements)

References 66 publications

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“…Yet, many characteristics that we encountered (e.g. byproducts, expensive production capacity, or minimum batch sizes) are also part of the broader process industries (Lager et al, 2017). Hence, it is likely that our findings also hold in this domain.…”

Section: Discussionmentioning

confidence: 79%

Burden or blessing in disguise: interactions in supply chain complexity

Dittfeld

Scholten

Donk

2018

IJOPM

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Purpose While systems theory explicitly considers interactions as part of a system’s complexity, supply chain complexity (SCC) is mostly conceptualized and measured as a linear summation of several aspects. The purpose of this paper is to challenge the general understanding by explicitly investigating interactions between and across different types (detail and dynamic) and levels (plant, supply chain, environment) of SCC. Design/methodology/approach An exploratory multiple case study methodology is adopted drawing on in-depth semi-structured interviews with respondents from eight manufacturing plants in the food processing industry. Findings On the one hand, it is found that different types add and increase overall SCC. On the other hand, the study also shows the opposite: interactions between detail and dynamic complexity can reduce the overall SCC experienced. Additionally, the findings highlight the specific food processing characteristics such as the variability of quality and quantity of raw materials that underlie interactions between types and levels of SCC. Originality/value This study adds to theory by empirically showing that interactions across and between types and levels do not automatically increase, but might also reduce SCC. As such, the findings contribute new detail to the concept of SCC: aspects of complexity do not necessarily add up linearly. Additionally, this study is one of the first to demonstrate how specific contextual aspects from the food processing industry relate to SCC.

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Section: Discussionmentioning

confidence: 79%

Burden or blessing in disguise: interactions in supply chain complexity

Dittfeld

Scholten

Donk

2018

IJOPM

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“…F IRMS in process industries, such as oil and gas, steel mining, and chemical, have unique production requirements [1]. Unlike consumer industries, process industries operate with less product differentiation and low variety; they compete in commodity markets with high fixed costs combined with little or no pricing power.…”

Section: Introductionmentioning

confidence: 99%

Manufacturing Management in Process Industries: The Impact of Market Conditions and Capital Expenditure on Firm Performance

Moser

Okwir

Seifert

2021

IEEE Trans. Eng. Manage.

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Process industries operate in commodity markets with low product variety, little product differentiation, and highly capital-intensive manufacturing. Because prices are volatile and demand is uncertain, manufacturing capabilities become the main strategic competitive lever. The purpose of this paper is to evaluate the interplay between market conditions, capital expenditure, manufacturing flexibility, and production capacity to effectively analyze the consequences of manufacturing investments in both the short and the long terms. In order to achieve this, we developed an econometric model linking market conditions and operational decisions. We tested the model on a sample of 480 firms from the mining sector and 1053 firms from the oil and gas sector. The results show that firms in process industries follow the market with their investments, which impacts their operations in the short term as well as their capacity growth in the long term. Additionally, from our findings, we propose a firm value driver model that managers could consider when deciding on capital expenditures. Finally, our results indicate that the managers of financially healthy companies should resist the stock market's short-term pressure to reduce fixed costs and instead play the long game.

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“…Transformational Reconfigurational (Dennis andMeredith, 2000, Floyd, 2010) Type of transformational process Indirect process Direct process (Dennis andMeredith, 2000, Floyd, 2010) Time dependency for the transformation process Dependent on time Independent on time (Floyd, 2010) Outgoing products Non-discrete Discrete (Lager et al, 2017) Product life-cycle Sometimes long Often short (Chronéer, 2003) Product interrelationships Sometimes high Low (Finch and Cox, 1988) Degree of changeability of finished products…”

Section: Materials Transformation Characteristicsmentioning

confidence: 99%

In search of a product innovation work process for non-assembled products

Lager

Simms

2020

IJTLID

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The family of process industries embodies multiple industrial sectors and make up an important part of the entire manufacturing industries of particular importance for lateindustrializing countries. In a review of the extant literature on product innovation work processes and best practice innovation of non-assembled products, an integrated conceptual framework has been developed. The novel framework is proposed to guide and invigorate company development and design of "individualized" product innovation work processes more adapted to processindustrial contextual and innovation conditions. Due to the coupling between products and the production systems in the process industries, it is concluded that development of new products must be better integrated with the development of necessary production capabilities in an end-to-end work process perspective. Research on fuzzy front-end of process-industrial product innovation has been amalgamated but it is demonstrated that more attention should be paid to industrialization and market launch; here denominated the bumpy back-end.

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Modelling company generic production capabilities in process industries

Cited by 13 publications

References 66 publications

Burden or blessing in disguise: interactions in supply chain complexity

Burden or blessing in disguise: interactions in supply chain complexity

Manufacturing Management in Process Industries: The Impact of Market Conditions and Capital Expenditure on Firm Performance

In search of a product innovation work process for non-assembled products

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