Short answer

When implementing advanced production practices, prioritize process-centric TQM initiatives and ensure reliable JIT delivery from suppliers to achieve tangible operational gains.

Field: Commercial Production
Source: European Accounting and Management Review (2015)
Method: Empirical analysis using Partial Least Squares (PLS).
Sample: Small sample size (specific number not provided in abstract).
Evidence: Moderate effect (for the identified relationships)

Implementing specific elements of Total Quality Management (TQM) and ensuring Just-In-Time (JIT) delivery from suppliers can positively impact a company's non-financial performance metrics. This commercial production research insight is drawn from a 2015 study published in European Accounting and Management Review. Using Empirical analysis using partial least squares (pls). with Small sample size (specific number not provided in abstract)., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When implementing advanced production practices, prioritize process-centric TQM initiatives and ensure reliable JIT delivery from suppliers to achieve tangible operational gains.

Study

Commercial ProductionHigh ImpactModerate effect (for the identified relationships)

Targeted adoption of TQM and JIT delivery drives operational performance

Implementing specific elements of Total Quality Management (TQM) and ensuring Just-In-Time (JIT) delivery from suppliers can positively impact a company's non-financial performance metrics.

European Accounting and Management Review · 2015

Key Findings

01Process emphasis within TQM is positively related to non-financial performance.
02JIT delivery by suppliers is positively related to non-financial performance.
03No significant relationship was found between the studied APPs and financial performance.
04No significant relationship was found between operating and financial performance.

Application

Design takeaway

When implementing advanced production practices, prioritize process-centric TQM initiatives and ensure reliable JIT delivery from suppliers to achieve tangible operational gains.

How to apply

Conduct a detailed audit of current production practices to identify specific areas within TQM and supplier logistics that can be optimized for JIT delivery.

Project actions

01When researching production strategies, look for studies that break down complex practices into their core components.
02Consider how different aspects of a production system might affect various performance indicators separately.

Method & Evidence

AimTo investigate the relationship between the implementation of specific Advanced Production Practices (APPs) and business performance, considering both financial and non-financial indicators.

MethodEmpirical analysis using Partial Least Squares (PLS).

ProcedureData was collected from Spanish companies in the automotive components, electronics, and machinery sectors participating in the High Performance Manufacturing (HPM) Project. The study analyzed the impact of nine implementation indicators for TQM, JIT, and TPM on financial and non-financial performance metrics.

SampleSmall sample size (specific number not provided in abstract).

ContextManufacturing industry (automotive components, electronics, machinery sectors).

Variables

IV["Implementation indicators of TQM (e.g., process emphasis)","Implementation indicators of JIT (e.g., JIT delivery by suppliers)","Implementation indicators of TPM"]

DV["Non-financial performance indicators (operational)","Financial performance indicators"]

CV["Company sector (automotive components, electronics, machinery)","Company location (Spain)","Participation in the HPM Project"]

Strengths & Limitations

Strengths

+Empirical investigation of specific APPs.
+Use of both financial and non-financial performance metrics.

Limitations

The findings are specific to the Spanish manufacturing context and may not directly translate to other industries or geographical locations. The study's small sample size is a significant limitation.

Reliability & validity

The use of PLS analysis is a robust statistical method. However, the validity and reliability of the performance measures and APP implementation indicators would need to be assessed. The small sample size may impact external validity.

Think critically

Given that financial performance was not significantly impacted, what other factors might mediate the relationship between operational improvements and profitability in manufacturing settings?

Design Principles

"Strategic selection and granular implementation of production practices yield better operational outcomes than broad, undifferentiated adoption."

This research suggests that a broad, blanket adoption of advanced production practices may not yield universal benefits. Instead, focusing on granular, impactful components like process emphasis within TQM and reliable supplier JIT can lead to measurable improvements in operational efficiency and effectiveness.

What This Means for Your Design

Some advanced manufacturing methods, like focusing on quality processes (TQM) and getting parts on time from suppliers (JIT), can help a factory run better, but they didn't seem to make companies more profitable in this study.

How to use in your project

1.Reference this study when discussing the selection and implementation of production strategies, highlighting the importance of focusing on specific, impactful components like process emphasis in TQM and supplier JIT.

Add to My Project

Quick Cite

Paragraph starter

This research suggests that the effectiveness of Advanced Production Practices (APPs) is not uniform, with specific elements like process emphasis in Total Quality Management (TQM) and Just-In-Time (JIT) delivery from suppliers showing a positive correlation with non-financial performance. This highlights the importance of a targeted approach to implementing production strategies, focusing on granular improvements rather than a wholesale adoption of complex systems.

Source

European Accounting and Management Review

Advanced production practices and performance: empirical evidence from Spanish plants

journal · 2015

View source

Questions About This Research

What does the research say about targeted adoption of tqm and jit delivery drives operational performance?: When implementing advanced production practices, prioritize process-centric TQM initiatives and ensure reliable JIT delivery from suppliers to achieve tangible operational gains. Evidence: European Accounting and Management Review (2015).
Why does "Targeted adoption of TQM and JIT delivery drives operational performance" matter for design?: This research suggests that a broad, blanket adoption of advanced production practices may not yield universal benefits. Instead, focusing on granular, impactful components like process emphasis within TQM and reliable supplier JIT can lead to measurable improvements in operational efficiency and effectiveness.
How can designers apply this research?: When implementing advanced production practices, prioritize process-centric TQM initiatives and ensure reliable JIT delivery from suppliers to achieve tangible operational gains.
What were the main findings?: Process emphasis within TQM is positively related to non-financial performance.. JIT delivery by suppliers is positively related to non-financial performance.. No significant relationship was found between the studied APPs and financial performance.. No significant relationship was found between operating and financial performance.
What research method was used?: Empirical analysis using Partial Least Squares (PLS). with Small sample size (specific number not provided in abstract)..
How strong is the evidence?: Evidence strength is rated Moderate effect (for the identified relationships), based on a 2015 journal from European Accounting and Management Review.
What should I do differently in my next project?: Conduct a detailed audit of current production practices to identify specific areas within TQM and supplier logistics that can be optimized for JIT delivery.
What are the limitations?: The small sample size limits the ability to detect moderate or weak relationships and may affect the generalizability of findings.