06mbaazrina
TRANSCRIPT
An Analysis of the Operations Management of a
Small and Medium Sized Enterprise (SME)
- A Case Study of a Manufacturing Company in Singapore
by
Azrina Binte Abdul Azim
2006
A Dissertation presented in part consideration for the degree of
Master of Business Administration
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ABSTRACT
In today competitive business environment, there are many manufacturing philosophies and
best practices that organizations can make the most of, as a platform to achieve its overall
business goals and objectives. This case study dissertation is thus an attempt to analyze
fundamentals of operations managements and strategy, and the significance of the
management tools from the perspective of a small manufacturing enterprise. It is with the
proposition that with appropriate adoption and implementation of operations management
philosophies and tools, the company under study will be able to enhance its manufacturing
performances, i.e. improved delivery lead time, work-in-progress (WIP), inventory, cost of
production and manufacturing quality (scrap and rework), and productivity level, and
consequently achieved its strategic business objectives of further company expansion, in a
more efficient and effective manner.
The case study highlights importance of the management tools as a source of not only a
competitive edge, but also as prerequisite to sustain in the rapid dynamic business
environment. Based on the information acquired from the literature review and data from the
field study, a conceptual framework consisting of the proposed manufacturing philosophies
that will assist the company concerned achieved its business strategic goals in a more efficient
and effective manner was developed for the company’s considerations. Among others,
operations management philosophies such as, Lean Manufacturing (LM), Just-in-Time (JIT)
and Total Quality Management (TQM) are discussed in particular relevance to a small
enterprise set-up, coupled with recommendations to tackle the change management issues so
as to ensure higher level of success.
This paper concludes with the view that management tools inherent in operations
management and strategy discipline are by and large, applicable in the context of a small and
medium sized enterprise as well. The case study demonstrated that with adoption of the
appropriate management tools, the company concerned will be able to improve its
manufacturing performance and enhance productivity level in a more cost effective manner.
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TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION
1.1 Background and Research Context............................................................................... 1
1.2 Purpose of Research..................................................................................................... 2
1.3 The Academic Context and Key Academic Theory..................................................... 3
1.4 Scope of Research........................................................................................................ 4
1.5 Structure of Research Dissertation............................................................................... 5
CHAPTER 2 LITERATURE REVIEW
2.1 Introduction to Chapter................................................................................................. 7
2.2 Fundamentals of Operations Management................................................................... 7
2.3 Operations Management as a Source of Competitive Advantage................................ 9
2.4 Operations Management in the Context of Small and Medium Sized Enterprise....... 10
2.5 Operations Strategy and Operations Priorities............................................................. 10
2.6 Change Management Issues......................................................................................... 18
CHAPTER 3 ORGANIZATION BACKGROUND
3.1 Introduction to Chapter................................................................................................ 21
3.2 Background of the Organization.................................................................................. 21
3.3 Organization Structure................................................................................................. 22
3.4 Production Floor Layout.............................................................................................. 24
3.5 Production Department Key Activities........................................................................ 25
3.6 Current Situations......................................................................................................... 29
3.7 Measures Undertaken To Improve Current Situations................................................. 30
CHAPTER 4 RESEARCH METHODOLOGY
4.1 Introduction to Chapter................................................................................................. 31
4.2 The Research Context................................................................................................... 31
4.3 Preliminary Research.................................................................................................... 32
4.4 Selected Research Methodology.................................................................................. 32
4.5 Primary Data and Sample Size..................................................................................... 33
4.6 Data Collection Method ............................................................................................... 33
4.7 Data Analysis................................................................................................................ 35
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4.8 Triangulation................................................................................................................. 36
4.9 The Disadvantage/Advantage of Qualitative Research................................................ 36
4.10 Limitations of Research................................................................................................ 37
CHAPTER 5 FINDINGS AND DISCUSSION
5.1 Introduction to Chapter................................................................................................. 38
5.2 Analysis of the Existing Measures Undertaken to Improve Current Situations........... 38
5.3 Analysis of the Production Floor Layout...................................................................... 40
5.4 Analysis and Findings of Production Department Key Activities................................ 40
5.5 The Need for Significant Improvements in the Company Business Processes............ 44
5.6 Concept of Lean Manufacturing Principles.................................................................. 45
5.7 JIT and TQM Manufacturing Philosophy.................................................................... 47
5.8 Change Management Issues for Implementing of Manufacturing Philosophies......... 49
5.9 An Outline of Implementation of Change.................................................................... 50
5.10 Obstacles in the Implementation of Change................................................................. 51
CHAPTER 6 CONCLUSIONS
6.1 Introduction to Chapter................................................................................................. 54
6.2 Conclusions from Findings........................................................................................... 55
6.3 Recommendations for Further Research....................................................................... 56
LIST OF FIGURES
APPENDICES REFERENCES
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LIST OF FIGURES
Figure 1 General Model of Operations Management - A Transformational Model
Figure 2 Operations Strategy Priorities
Figure 3 Building Blocks of Lean Manufacturing
Figure 4 Traditional and JIT Flow Between Stages
Figure 5 Framework for Managing Change
Figure 6 Organization Structure
Figure 7 Floor Layout of the Production Department
Figure 8 Sales Order Fulfillment Workflow Process
Figure 9 Label Production Workflow Process
Figure 10 Sample Label Workflow Process
Figure 11 A Conceptual Model for Improving the Efficiency of Production Activities
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ACKNOWLEDGMENTS This paper represents the final journey of my quest for MBA qualification while working full
time. This passageway is only made possible with the love and support from the various
people in my life and I wish to express my gratitude to them here.
To my dissertation supervisor, Professor Chris O’Brien for the constructive comments
that have greatly improved this paper and the staff of PSB Academy, especially to Ms
Chua Shing Ling for her ever obliging, supportive and kind dispositions that have
made the journey easier.
To my parents, Mr Abdul Azim and Madam Sutinah Ahmad, for their instinctual and
eternal love, blessings and faith they have in me.
To my mother-in-law, Madam Tan Cheng Yong, for her kind affection, understanding
and support, particularly during the time that I was working on this paper.
To my brothers; Yunos, Amri and Ariff, and sisters; Julia, Mira, Munira and Ariffah,
thank you for being part of me, and for your companionships and friendships through
all these years.
Last but not the least, to my family; my dearly adored husband, thank you for your
unconditional love, your endless cheering and encouragement, and most importantly
for being my True North. And to our precious baby daughter, Yasmine, thank you for
coming into our life and being our greatest source of inspiration.
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CHAPTER 1 INTRODUCTION
1.1 Background and Research Context
The increasing recognition of operations management as a vital element in the corporate
strategic planning has been well documented by renowned operations management scholars.
Among others, Skinner (1969); Hayes et al. (1988); Malhotra et al. (1994); Swink and Way
(1995); Boyer and Lewis (2002), have all suggested the significance of operational efficiency
as a source of strategic weapon. In current rapidly dynamic business environment, to survive
and ensure continued business existence, organizations are expected to deliver more with less,
i.e. achieve higher level of productivity but with fewer and leaner resources. This is in face of
fierce market competitions and it is a well-accepted fact that efficient management of business
operations and strategies are as indispensable as effective corporate strategic planning, and
that it play a vital role in any organizations. Many academic literatures have associated best
practices and/or world class manufacturing (WCM) philosophies, native of operations
management and strategy, with large enterprises. Nevertheless the importance of operational
efficiency is equally relevant for both large and small enterprises alike. Small enterprise or
small and medium sized enterprises (SMEs) play a significant role in any economies in
providing employment opportunities and supporting the operations of large enterprises. As
Storey (1999) suggests, the fundamentals of operations management and strategy are also
applicable to SMEs, even though they exhibit distinct characteristics that differentiate them
from the majority of their larger counterparts. In implementing fundamentals of operations
management and its strategy, the management of change issues needs to be given equal
considerations as well so as to ensure and achieve a more successful change. Consequently,
these form key central themes in this case study dissertation. The case study dissertation is an
analysis of the operations managements of a small manufacturing enterprise and with the
proposition that with the implementation of appropriate operations management philosophies
and tools, the company concerned is able improve its manufacturing performances, i.e.
improved delivery lead time, work-in-progress, inventory, cost of production and
manufacturing quality (scrap and rework), and productivity level, and consequently achieved
its strategic business objectives in a more efficient and effective manner. A conceptual
framework consisting of the proposed manufacturing philosophies for implementations was
developed for the company’s considerations.
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1.2 Purpose of Research
In view of an increase in demand expectations, members of the management team of company
concerned, of which its name have been withheld to protect its identity, have decided to
further expand its business operations to include more facilities, i.e. increase production runs,
including a third shift among others. However, it is from the author’s analysis of the current
business settings and configurations, that the company concerned requires more than solely an
injection of fresh funds. A paradigm shift, particularly in its manufacturing and operations
beliefs, which forms the core premise of this case study, is but a prerequisite. The principal
business processes in determining the overall success of the company concerned lies within its
Production Department and accompanying process activities and form the backbone of
ensuring continued existence and survival of the company, especially critical in today
competitive business landscape. Paradoxically, intelligence gathered through informal
conversations with the Production Manager (PD) highlighted major flaws inherent in the
existing arrangements and process activities.
Currently, the company concerned operates in a manner that lack effective business
configurations, and these results among others, high level of work-in-progress and inventory
that tied up the company tight cash flow, long workflow process and delivery lead time,
which also have an impact on the cash flow, i.e. being a SME, they are expected to make
advance payment to suppliers but they in turn have to extend credit payments to their
customers, high cost of producing the goods due to inefficient way of managing company
resources and also high level of rework and scrap incidences due to lack of emphasis on
quality control and assurance. This necessitates significance improvement if the company’
strategic objectives of expansion is to be achieved in a more effective and efficient manner.
To overcome these problems, it is of great importance for the company to recognize benefits
of espousing and implementing operations management philosophies, such as among others,
Lean Manufacturing (LM), Just-In-Time (JIT) and Total Quality Management (TQM) as a
tool and a source of an avenue to improve its manufacturing performance and productivity,
thus achieving superior business operational efficiency.
A case study methodology has been approached to investigate the subject matter in more
detailed. As suggested by Eisenhardt (1989), a case study approach is one of the most
appropriate research methods for a topic in an early stage, and this was conducted in two
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phases. First, a literature review on operations management and strategy, particularly in the
context of small enterprises was executed to facilitate better understanding of theoretical and
academic context of the stated research purpose. The center of attention of this literature
review will be on academic journals which are peer-reviewed and thus represent sound
research and advanced knowledge in this premise. In the second phase, a fieldwork involving
interviews with key personnel and representatives of the various process owners as well as a
direct observations approach was carried out. The research materials from the field study were
of particular great importance as it provides an empirical and investigative perspective to the
case study. Based on the information gleaned from the literature review and data from field
study, a conceptual framework consisting of the proposed manufacturing philosophies that
will assist the company concerned achieved its business strategic goals in a more efficient and
effective manner was developed for the company’s considerations.
1.3 The Academic Context and Key Academic Theory
Author’s analysis and assessments of current business setting of the small manufacturing
enterprise are derived based on consultation from both existing literatures in the field of
operations management and strategy, and small enterprises, as well as an organization
fieldwork study. Operations management as a management discipline provides a systematic
way for looking at organizational processes and is increasingly recognized as a critical
component in creating a competitive edge. From Skinner (1969) to more recent times (e.g.
Hayes and Upton, 1998; Pilkington, 1998), operations management scholars have emphasized
the importance of operations strategy in helping organizations to achieve business successes
and turnaround. As Pisano (1994) suggests, in today’s turbulent world, the development and
exploitation of operational capabilities is the key to superior organizational performance. The
operations strategy is often viewed as part of the overall business strategy element in any
organizations. Heightened challenges from competitions have prompted organizations to
adopt new manufacturing approaches (Hall, 1987; Meredith and McTavish, 1992) in their
pursuits for achieving business excellence. Particularly prominent among these is the concept
of lean manufacturing (LM) (Womack et al., 1990; Womack and Jones, 1996), Just-in-Time
(JIT) for achieving excellence through continuous improvements in productivity and
elimination of waste (Suzaki, 1987; Orth et al., 1990; Crawford and Cox, 1990; and Lummus
and Duclos-Wilson, 1992) and total quality management (TQM) which is frequently referred
to as the cornerstone of JIT and key to its survival (Banker et al., 1993a; Imai, 1998; Sim and
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Killough, 1998; Swanson and Lankford, 1998; Young et al., 1988). Gupta and Brennan
(1995) argued that by using a holistic approach such as those of manufacturing philosophies
discussed briefly earlier, even a small company can be successful in improving its
manufacturing performance and increasing productivity. This suggests that the manufacturing
practices used to achieve excellence in large enterprises can also be successful in small
enterprises for improving the manufacturing performance to gain rewards intrinsic of such
implementations. The execution of manufacturing tools in any organizations involved a
radical change from an organization silo-oriented mentality, to one that is more integrative
with a focus of involvement from everyone. A successful reorganization of this type requires
not only a modification of the equipment layout of the factory floor, but significant cultural
and organizational changes as well (Majchrzak and Wang 1996; Hyer and Wemmer, 2002).
Deal and Kennedy (1982), and Frost et al. (1985) argued that the role of culture in a situation
of change is to confirm or deny the legitimacy of the new work arrangements. Consequently,
as put forth by Youngblood (2000), to ensure success in any operations strategy
implementations comparable to those of highly successful companies, the primary source is
directly attributable to the organization culture and this demand equal considerations and
weightage as well.
1.4 Scope of Research
The case study research is based on a manufacturing small and medium enterprise (SME)
established in Singapore, particularly within the company’s Production business unit. Two
different empirical methods were used to collect data: interviews and direct observations, and
this are to overcome the weaknesses of a single-method design (Campbell and Fiske, 1959).
Interviews provide with depth, details, and personal feeling, while direct observation gives
access to the group processes and can disclose discrepancies between what is said and what is
actually being done (Pettigrew, 1990). Since the analysis is based on data collated
empirically, an in-depth case study approach can make up for the lack of generality by
providing greater depth of understanding. The aim of this study is to achieve an in-depth
insight into events, the relationships, experiences and processes typical of manufacturing
small enterprises and with the proposition that with the implementation of appropriate
operations management philosophies and tools, the company concerned will be able improve
its manufacturing performances and productivity, consequently achieved its strategic business
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objectives in a more efficient and effective manner. There are primarily three main and inter-
related workflow processes within this core business function. They are namely;
the Sales Order Fulfillment Workflow Process,
the Manufacturing of Label Production Workflow Process, and
the Manufacturing of Sample Labels Workflow Process for Potential Sales and New
Opportunities.
The key workflow processes are identified, described and analyzed for suggested
improvements in view of existing limitations in the work procedures. The following sequence
of activities was carried out to achieve this task:
Identification and Understanding of the Key Activities,
Analysis of Current Methods and Practices,
Discussion on the Limitations of Current Methods and Practices, and
Conclusions and Recommendations.
1.5 Structure of Research Dissertation
The main objective of this paper is an attempt to analyze current manufacturing practices and
beliefs of a small and medium sized enterprise (SME) established in Singapore. This case
study have been approached from an essentially pragmatic standpoint, from the perspective of
considering such investigations to have a better understanding of the process and its
limitations and improvements that can be carried out to attain superior operational efficiency,
if appropriate operations strategy are to be employed. Operational efficiency can be defined as
the efforts of each operation in the chain can make to reduce its own complexity; reduce the
cost of doing business with other operations in the chain and increase the throughout time.
The cumulative effect of these individual activities is to simplify throughput in the whole
chain. This paper proceeds as follows: In the next section, a literature review based on the
fundamentals of operations management and operations strategy are introduced, such as those
of world class manufacturing principles and best practices. In addition, OM as a source of
competitive advantage as well the management of change in implementing such
manufacturing tools is discussed and elaborated. In essence this provides a conceptual view to
the research context. Chapter 3 introduces in greater details the background of organization
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understudy, the organization structure as well as the business strategy and workflow processes
among others. The predicaments the company is currently facing are highlighted for better
appreciation of the need for change. The subsequent chapter, Chapter 4, will elaborate on the
research methodology undertaken to carry out and derived the case study materials. Strength
and limitations innate of the chosen methodology are acknowledged and the possible
weaknesses in the case study research are discussed. Chapter 5 will be on an analysis of the
findings and discussions based on the materials and information collated, and will conclude
with recommendations for improving the current situation. The paper ends with Chapter 6,
summarizing the mains points and findings of the case study dissertation.
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CHAPTER 2 LITERATURE REVIEW
2.1 Introduction to Chapter
This chapter reviews the literature on operations management and operations strategy,
particularly from the context and perspective of a small and medium sized enterprise (SME),
that have been consulted to assimilate theoretical and empirical information in order to
explore the context of the stated purpose of research. The focus of this literature review will
be on academic journals that represent sound research and advance knowledge in this
premise. The reviews consider the fundamentals of operations management as a business
discipline (Section 2.2), operations management as a basis of competitive advantage (Section
2.3), and the significance of operations management and strategy from the perspective of an
SME (Section 2.4). Section 2.5 will illustrate the operations strategy and priorities, in which
operations must pursue and prioritize to all operations decision-making and this is followed
by the different operations strategy philosophies, i.e. Lean Manufacturing (Section 2.5.1),
Just-in-Time (Section 2.5.2.) and Total Quality Management (Section 2.5.3) that can be
adopted to enhance the manufacturing performances and productivity level. Section 2.6
tackles in greater details the change management issues that need to be considered to make
assure and facilitate greater success and acceptance to change.
2.2 Fundamentals of Operations Management
In current rapidly dynamic business environment, to stay in the business, firms are expected
to do more and with fewer and leaner resources. The increasing importance of the
management of business operations to organizations successes have been well documented by
renowned operations management scholars. Among others Hill et al. 1987; Buffa, 1980;
Chase, 1980; Miller and Graham, 1981, have advocated the significance of operations
management as a source of strategic weapon and key to business survival. Operations
management is essential to allow better coordination among the different operating systems in
an organization in reducing stock, inventory or work-in-progress, and most important of all, it
has a great impact on the organizations’ bottom line, as it cannot be divorced from the
financial performance. The degree of uncertainty in demand affects the balance of planning
and control measures. The greater the uncertainty, the more difficult it is to plan and thus
greater emphasis must be placed on control. The basic elements of any organization are its
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resources and this poses a universal dilemma to all organizations alike, to circumvent the
constraints that limit the ability to match resource provision with the current demand, with
demand being the essential lifeblood of an organization. A resource is a basic element that an
organization control in order to best organize its processes and it can be used to create and as
a source of competitive advantage. Operations management demands deep appreciation and
thorough understanding of the business operations’ strategic objectives of the organizations
and developing operations strategies for achieving the affirmed organization objectives. In
essence, operations management involves in the effective design of operations processes,
planning and controlling of the activities, and improving the performance of business
operations in delivery of the organizations’ goods and services. Operations management
which is one of the core functions of any businesses is important to provide a systematic way
of looking at organizational processes and is for the most part, concerned about the managing
of resources critical to strategic growth and competitiveness of the organization. All
operations can be modeled as a process which transforms input into output (Slack et al.,
1980). Figure 1 show this general transformation process model which is used to describe the
nature of operations.
The operations function is responsible for one or more of any organizations’ operating
systems, i.e. a transformation process that convert inputs into outputs. As illustrated in Figure
Input transformed
resources
Figure 1 General Model of Operations Management - A Transformational Model
General Model of Operations Management - A Transformational Model
Materials Information Customers
Facilities Staff
Input transforming
resources
Input Resources
Output products and services
Environment
Environment
The Transformation
Process Customers
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1, operations processes take in a set of input resources which are then used to transform
something, or are transformed themselves, into outputs of goods and services which satisfy
customer needs. This transformation model is relevant for any operations both to small or
large organizations alike. As suggested by Prahalad and Hamel (1999), the formation of
competencies and capabilities for competitive advantage can arise when resources are
combined. The sustainability of the competitive advantage on the other hand depends upon
the ease with which the resources can be imitated or substituted (Peteraf, 1993). Operations
management essentially requires a clear vision of how the operations strategy could help the
organization achieve its long term goals and objectives.
2.3 Operations Management as a Source of Competitive Advantage
Pisano’s (1994) argued that in today turbulent business world, development and exploitation
of operational capabilities is the key to superior organizational performances. Success and
failure depends on how well the business operations are being managed. Businesses can
achieve competitive advantage through means of managing the operations right. Operations
strategy can be viewed as part of a planning process that coordinates operational goals with
those of the larger organization. An operation strategy involves decisions that relate to the
design of a process and the infrastructure needed to support the process.
Importance of operations management is highly undisputable, having an impact on the
organizations bottom line. Effective managing of operations assists in reducing the work-in-
progress, inventory and stock, and facilitates better coordination across the different business
units. There is a growing recognition that capabilities developed within operations can form
the basis of competitive advantage (Anderson et al., 1989; Leong et al., 1990; Stalk et al.,
1992; Menda and Dilts, 1997). As proposed by Porter (1996), sustainable competitive
advantage can only be achieved by operating at lower cost, by commanding a premium price
through differentiation or doing both. These cost and price advantage can be realized in either
operational effectiveness and/or strategic positioning. He added that simply improving
operational effectiveness does not provide competitive advantage; this can only be done by
achieving and sustaining higher levels of operational effectiveness than competitors.
Competencies refer to the fundamental knowledge owned by the firm (knowledge, know-how,
experience, innovation and unique information). And that competitive advantage can come
from a focus upon key competencies. Capabilities reflect an organization’s ability to uses its
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competencies (Lowson, 2002). Essentially, it requires developing the resources to provide
capabilities which are needed to allow the organization to achieve its strategic goals.
Operations strategy is concerned with setting broad policies and plans for using the resources
of the organization to best support its long term competitive strategy.
2.4 Operations Management in the Context of Small and Medium Sized Enterprise
It is a well accepted fact that effective operations management are as indispensable as
effective corporate strategic planning and that it play a vital role of any organizations. The
intense competition in current marketplace has forced many organizations to reexamine their
methods of doing business. Formerly secure niche markets are being fast being encroached
upon by increasingly agile larger organizations and coupled with key customers demanding
higher quality product at lower cost (Ghobadian and Gallier, 1996). According to Sohal et al.
(2001), many organizations today, both the small and large enterprises are re-examining their
management of the production and operations functions to leverage on manufacturing
strengths for competitive advantage. The common measures for manufacturing performance
include lead time, work-in-progress, inventory, cost of parts or products, and manufacturing
quality (scrap and rework). Operational characteristics of flexibility, innovativeness,
nimbleness, and quick solving orientation found in successful SMEs represent vital
ingredients for corporate success regardless of firm size (Drilhon and Estime, 1993; Aharoni,
1994; Hill and Jones, 1998). SMEs have a natural degree of flexibility, rapid decision making
because of their closeness to the customer and lack of organizational layers and bureaucracy
(Hale and Cragg, 1996). As suggested by Gunasekaran et al (2000), the need for SME to
produce high quality output is important not only at the national employment level but also at
the industry level where SMEs are often suppliers of goods and services to larger
organizations. Due to the important nature of a SME set-up that support in the operations of
the large enterprises, it is highly crucial that similar and effective systems are in place to
support the operations of the SME.
2.5 Operations Strategy and Operations Priorities
Operations strategy is concerned with setting broad policies and plans for using the resources
of an organizations to best support its long term competitive strategy. As Slack and Lewis
(2002) suggests, operations strategy can be defined as the total pattern of decision which
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shape the long term capabilities of an operation and their contribution to overall strategy.
Here, the pattern of decisions tends to be of medium-to-long term nature and to reflect both
the core capabilities and competencies of the company and how it uses the resources and
technologies to provide sustainable competitive advantage. Operations priorities can be
broadly expressed in terms of cost, quality, delivery, and flexibility (Ferdows and De Meyer,
1990; Kathuria, 2000; Leong et al., 1990; Vickery, 1991; Vickery, et al., 1993; Ward et al.,
1998) and dependability. Conceptually, these are illustrated in Figure 2.
al., 1999, Ward et al., 1998)
Slack (1991) suggested the notion of ‘doctrine of competitiveness” as far as an operations
strategy is concerned. Competitive advantage can be achieved by making things better, right,
fast, on time, cheap and flexibly. The quality objective in essence is primarily meant by doing
things right to help reduce cost, i.e. the fewer mistakes each micro operation or unit makes in
the operation, the less time it will need to spend correcting these mistakes. Secondly, the
speed objective, which is the time and duration taken for customers to receive the product or
Figure 2 Operations Strategy Priorities
Operations Strategy Priorities
Cost
External Effects of the Operations PrioritiesLow price, high margin or both
High total productivity
Internal Effects of the Operations Priorities
Short delivery lead time
Fast throughput
Dependable delivery
Reliable Operation
On specification product/service
Error-free Process
Ability to Change
Frequent new product/service
Wide Product/service range Volume and delivery
adjustments
Speed Dependability
Quality Flexibility
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services, will ensure faster throughput and turnaround time. Thirdly, the dependability
objective and the main advantage of dependability is that it gives a stability factor to the
business operations. By being flexible, which is the next objective is being able to act quickly
on changes and demand. Cost objective is one of the important objectives to pursue, as it
contributes to the total productivity. An operations strategy consists of two components:
process and content (Adam and Swamidass, 1989; Leong et al., 1990; Swamidass and Newell,
1987; Swink and Way, 1995). Content defines the operations priorities and key decisions for
operations to achieve alignment and congruence with corporate strategy, while process
focuses on the development and implementation of key operations decisions (Sum, 2004).
Effective operations play an important role in justifying continued business existence and
there are essentially three main roles of the operations function. Firstly, it act as an
implementer of the business strategy, as a supporter of the business strategy and, therefore
requiring development of resources to provide the capabilities which are needed to allow the
organization to achieve its strategic objectives. And thirdly, as a driver of the business
strategy, i.e. to thrust the strategy forward and giving it a long term competitive edge.
According to Frohlich and Dixon (2001), the role of operations in strategic formulation is not
static but changes dynamically to shifts in the competitive paradigms. Sustainable competitive
advantage can only be achieved through operational effectiveness. Operational effectiveness
include for example, better technologies, superior inputs, better-trained employees, more
effective management structure and in principle is the domain of operations strategy.
Conceptually, there are a number of possible categories of operations strategy and some may
be even combined. The next sub-section will discuss and elaborate on three main
philosophies, i.e. Lean manufacturing (LM), Just-in-Time (JIT) and Total Quality
Management (TQM) which is of great interest and of particular relevance in this case study.
2.5.1 Lean Manufacturing
Lean manufacturing is aimed at the elimination of waste in every area of production. Its goal
is to incorporate less inventory, less time to develop products, and less space to become
highly responsive to customer demand, while producing top quality products in the most
efficient and economical manner possible. Particularly outstanding among these is the concept
of lean production (Womack et al., 1990; Womack and Jones, 1996). Lean production is a
multi-dimensional approach that encompasses a wide variety of management practices,
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including just-in-time, quality systems, work teams, cellular manufacturing, supplier
management and etcetera in an integrated system. The core thrust of lean production is that
these practices can work synergistically to create a streamlined, high quality system that
produces finished products at the pace of customer demand with little or no waste. The
building blocks of lean manufacturing are illustrated in the diagram below. Refer to Figure 3.
Lean production philosophy focuses on avoiding seven deadly wastes
Lean manufacturing can be defined as a systematic approach to identify and eliminate waste
(non-value added activities) through means of continuous improvement by flowing the
product at the pull of the customer in pursuit of perfection. Naturally, lean manufacturing help
the organization reap benefits in the form of waste elimination and lower inventory. It reduces
the requirement for space and work-in-progress and improves quality. On the other hand
however, the concept of leanness itself is highly contentious. On one premise, there are things
which are unessential, and therefore wasteful, and should be eliminated, while, on the other,
there are those which are necessary for the efficient running of the production system
effectively. Thus, the concept of lean is highly debatable, i.e. at which point will the
Quick Changeover/Setup
Reduction
Figure 3 Building Blocks of Lean Manufacturing
Building Blocks of Lean Manufacturing
Major Tenets of Lean Manufacturing
Value Stream Analysis
Pull/Kanban Systems
Total Productive Maintenance (TPM)
Workplace Organization/5S
System
Cellular Manufacturing
Supporting Strategies and Concepts
One Piece Flow
Quality at Source
Standardized
Visual Controls Employee
Involvement
TAKT Time
Continuous Improvement
Team Building
Balanced Flow
Stabilized Operations
Equipment Replacement
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organization be ‘anorexic’, particularly important in the context of the organization’s ability
to respond in dire situation.
2.5.2 Just-In-Time
Just-in-time (JIT) is a manufacturing philosophy that emphasizes achieving excellence
through the principles of continuous improvement, the involvement of staff in the operation,
and waste reduction. Some of its benefits include higher quality production, lower inventory
levels, improved throughput times, and shortened customer response times. Waste is defined
as any activity which does not add value and thus identifying waste is the first step towards
eliminating it. Toyota identified seven types of waste:
Over production
- Producing more that what is required by the next step is the greatest source of waste
Waiting time
- Long waiting time will impact machine and labor efficiency
Transport
- Moving materials around the plant is a source of non-value added activity
Inappropriate Facility Layout
- Workstations should be close together to reduce unnecessary movement of
information and materials
Process
- The process inherent itself may be a source of waste
Inventory
- Under a JIT philosophy, all inventories becomes a target for elimination
Motion
- An operator may look busy but sometimes no value is being added
JIT is a Japanese-developed manufacturing philosophy that represents “an aesthetic ideal, a
natural state of simplicity” in production efficiency (Zipkin, 1991). The “kanban” system (in
which information on demand-derived production schedules is passed from one stage of
production to earlier stages) and JIT methods (where work-in-progress inventories are
minimized by having parts made available just as they are needed) are manifestations of this
shift (Monden, 1981a, 1981b; Goyal and Deshmukh, 1991; White et al., 1999).
___________________________________________________________________________ 15
JIT production is generally referred to as a manufacturing system for achieving excellence
through continuous improvements in productivity and elimination of waste (Crawford and
Cox, 1990; Lummus and Duclos-Wilson, 1992; Orth et al., 1990; Suzaki, 1987). A more
specific definition is provided by Calvasina et al. (1989) and that is a JIT is in fact a system of
production control that seeks to minimize raw materials and work-in-progress inventories,
control (eliminate) defects; stabilize production; continuously simplify the production
process; and create a flexible, multi-skilled work force. Successful JIT implementations
should accomplish two major objectives. Firstly, it is to improve quality and secondly to
control the timeliness of the production and delivery of products (Davy et al., 1992; Monden,
1981; Walleigh, 1986). Fullerton (2000) suggested that many current research and works have
demonstrated that implementing the quality, continuous improvement, and waste reduction
practices embodied in the JIT philosophy can enhance firm competitiveness. As opposed to
the traditional “push” approach, JIT “pulls” inventory through production only as and when
orders are demanded. With work-in-progress inventories kept at a minimum, production can
respond more quickly to errors and changes in demand. Throughput time is reduced along
with non-value-added (NVA) activities such as wait, move, and inspection time which can
comprise up to 95% of product costs (Foster and Horngren, 1987; Peters, 1990). Figure 4
illustrate the main difference in the traditional and JIT approached to manufacturing.
Figure 4 Traditional and JIT Flow between Stages
Traditional and JIT Flow between Stages
a. Traditional Approach – Buffers separate stages
Stage A
Buffer Inventory
Stage B
Buffer Inventory
b. JIT Approach – Deliveries are made on request
Stage A
Stage B
___________________________________________________________________________ 16
In addition, long-term commitments with fewer suppliers should result in fewer inspections.
By concentrating on quality, companies should experience less scrap and rework and more
effective communication among departments and employees. The achievement of these
results requires an even production flow of small lot size, schedule stability, product quality,
short setup times, preventive maintenance, and efficient process layout (Chapman and Carter,
1990). The most consistent benefit from JIT adoption found in the empirical studies is a
reduction in inventory levels and/or an increase in inventory turns (Balakrishnan et al., 1996;
Billesbach, 1991; Billesbach and Hayen, 1994; Celley et al., 1986; Crawford and Cox, 1990;
Droge and Germain, 1998; Gilbert, 1990; Huson and Nanda, 1995; Im and Lee, 1989; Norris
et al., 1994; Ockree, 1993).
Chang and Lee (1996) emphasized the critical role of inter-business units communications,
i.e. for example between production and marketing, as a critical factor for improvement in the
turnover of finished goods and work-in-progress inventories, while employee participation
and bottom-up management were significant factors for improving quality and flexibility. JIT
implementation improves performance through lower inventory levels, reduced quality costs,
and greater customer responsiveness. The case study shown later will demonstrate that JIT is
a vital manufacturing strategy in order to build and sustain competitive advantage.
2.5.3 Total Quality Management
As suggested by Gunasekaran et al (2000), the need for SME to produce high quality output is
important not only at the national employment level but also at the industry level where SMEs
are often suppliers of goods and services to larger organizations. Total quality management
(TQM) is considered an important quality improvement tool in both manufacturing and
service organizations. One of the most powerful aspects to emerge from TQM is the concept
of the internal customer and supplier. This is recognition that everyone is a customer within
the organizations and consumes goods and services by other internal suppliers, the implication
of this is that errors in the service provided within an organization will eventually affect the
product and service. TQM is also sometimes referred to as ‘quality at source. As proposed by
Oakland (1993), for an organization to be truly effective, every single part of it, each
department, each activity and each person and each level must work properly together
because every persons and every activity affects and in turn is affected by others. Employee
involvement is seen as a natural process to be nurtured and developed rather than artificially
___________________________________________________________________________ 17
existing in complicated and formalized models which do not fit the SME environment and
which could add unnecessary bureaucracy (Yeb-Yun Lin, 1999). Successful TQM
implementation starts with the following order:
Identification of a Quality Strategy
Top Management Support
Formation of A Steering Group
Recognition of Success and Reward Scheme
Staff Training
TQM and JIT are often associated through their common continuous improvement goals.
Although TQM can be adopted without implementing JIT, it is unlikely that a JIT
manufacturing system can succeed without incorporating the underpinning tenets of TQM. It
may be seen that JIT and TQM is the most widely used combination of two strategies
(Ahmed, Montagno and Firenze; 1995). Good quality management is frequently referred to as
the cornerstone of JIT and key to its survival (Banker et al., 1993a; Imai, 1998; Sim and
Killough, 1998; Swanson and Lankford, 1998; Young et al., 1988). Improvements in
production timeliness are measured by six variables: queue times, move times, machine
downtime, lot sizes, throughput time, and customer response time. Very few manufacturing
companies have been able to ignore the elements of TQM and still prosper (D. Samson, M.
Terzioskir, 1999). The implicit assumption in this reasoning is that TQM principles as defined
are sufficiently generic and are as applicable to both large and small organizations
(Ghobadian and Gallear, 1996; Wiele and Brown, 1998).
TQM emphasize the activities of senior leadership much like transformational leadership
theory (Burns, 1978; Bass, 1985). The emphasis is on customer driven quality and operational
performance excellence as key strategic business issues that need to be an integral part of
overall business planning. Jamal (1998) provides a useful synthesis of the literature based on
the work of Grant et al. (1994), Hackman and Wageman (1995), Krishnan et al. (1993),
McDonnell (1992), Ross (1993), Olian and Rynes (1991), Spencer (1994) and Deschamps and
Nayak (1995). His summarized approach also largely agrees with that of Kanji and Asher
(1993) and Ahire et al. (1996), and they are namely:
TQM is strategically linked to the business goals
___________________________________________________________________________ 18
Customer understanding and satisfaction are vital
Employee participation and understanding at all levels are required
The need for management commitment and consistency of purpose
The importance of processes and measures
2.6 Change Management Issues
At a time of unparalleled technological development, it is the human resources that
paradoxically spell success or failure for all firms and especially entrepreneurial ones’’ (Katz,
Aldrich, Welbourne, and Williams, 2000). The adoption of manufacturing philosophies is
often associated with a drastic change from an organization silo-oriented mentality to one that
is more integrative with a focus of involvement from everyone. A successful reorganization
requires not only a modification of the equipment layout of the factory floor, but significant
cultural and organizational changes as well (Majchrzak and Wang 1996; Hyer and Wemmer,
2002). According to Eldridge and Crombie (1974), culture is a characteristic of all
organizations, through which at the same time, their individuality and uniqueness is
expressed. The culture of an organization refers to the unique configuration of norms, values,
beliefs, ways of behaving and so on, that characterize the manner in which groups and
individuals combine to get things done. Culture is not homogeneous and in any organization
there will be subcultures. However, the influence of these will depend on the strength and
appropriateness of the dominant culture (Turner, 1971). The role of culture in a situation of
change is to confirm or deny the legitimacy of the new arrangements (Deal and Kennedy
1982; Frost et al., 1985). In terms of the environment for change, Burnes (1992) places
significant emphasis on the role of organizational culture. In terms of the actual mechanics of
change, he places a similar emphasis on employee involvement. He sees these as
complementary in relation to successful change. Resistance to change can be attributed to
several factors such as due to self-interest, lack of understanding and trust for the need to
change, uncertainty on what is expected of them upon implementing the change as such. In
essence, some of the strategies for overcoming resistance can take form of an analysis of
resistance through the concept of force field technique, i.e. change is a result of competition
between driving and restraining forces. While some forces drive it, others resist it. Thus
organizations should selectively engaged in removing restraining forces to enable driving
forces to implement the innovation. Among others, the uses of selective implementation
tactics to overcome resistance are recommended, such as communication, education,
___________________________________________________________________________ 19
participation and negotiation. According to Youngblood (2000), most highly successful
companies maintain that the primary source of their success is directly attributable to their
culture and the key element in a company’s culture, and according to Knox (2002), is the
organization’s effectiveness in developing its systems and implementing strategy and this is
done through the commitment and skills of its employees.
It is necessary to recognize that organizational changes which challenge or undermine the
cultural status quo can, if managed badly, have severe repercussions. It has been argued that
one of the key methods of avoiding this is to involve those affected in assessing the need for,
and implementing the change required. This is for two reasons, firstly, to draw on their
knowledge and secondly, to gain their support and commitment (Buchanan and Boddy 1992;
Deal and Kennedy 1982; Morieux and Sutherland 1988; Burnes, 1991). The corporate culture
has become increasingly important to organization and while culture is not the only factor
guaranteeing success, positive cultures offer significant competitive advantages over rivals
and to quote a quotation, “firms profess that people are the source of their competitive
advantage, whether they be technological experts, accommodating customer service experts,
or visionary managers”.
Fundamentally, in comparison to large organizations, SMEs have relatively informal, flatter
and highly centralized structures (Hale and Cragg, 1996). Thus, SMEs should not have the
same degree of problems when implementing change that large organizations have in regard
to middle managements’ resistance and functional fiefdom (Francis and McIntosh, 1997).
Hale et al. (1996) conclude that SMEs have more opportunity for rapidly forming a team-
based process structure, because of their informal style and natural cross functional working
style. For deeper appreciation of the conceptual framework of managing change, a proposed
framework for implementing and managing change is illustrated in Figure 5 in the next page.
___________________________________________________________________________ 20
The management of change framework starts from a strategic vision and an overall umbrella
strategy that guide the separate change projects. It then follows in a participative manner
through the generic phases; analysis and model of present state, identification of problems and
opportunities, experimentation and selection of future state, implementing the change and
stabilizing the new mode of operation. An analysis of the present state is required to be
carried out in order to understand the limitations of present mode of operating. Past successes
and what works then may not necessarily be applicable in current situations and an indicator
for future successes and achievements. The results of the analysis can then be compared
against existing best practices already known from the theory and research of the production
and business management. The benchmarking can reveals the development potential of the
enterprise and help to formulate the vision. Once experimentation has been carried out
through development and testing of the chosen practices, change implemented will be more
effective. In stabilization phase, the organization begins its normal operation according to the
new organizational and technological design. Stabilization is a critical phase in the change
process and in essence, it is the test of the change project’s success. Nevertheless, stabilization
does not prevent incremental innovations in the redesign process and that the process is likely
to require continuous improvements.
Framework for Managing Change
Analysis and Model of Present State
Visualization of Present State and Identifications
of Problems and Opportunities
Stabilizing the New Mode of Operation
Experimentation and Selection of Future State
Implementing the Change
Perceive Need for Change
Figure 5 Framework for Managing Change
___________________________________________________________________________ 21
CHAPTER 3 ORGANIZATION BACKGROUND
3.1 Introduction to Chapter
This chapter introduces in greater detail the organization involved in this case study research.
Section 3.2 introduces the background of the organization with an organization structure
illustrated in Section 3.3. The current layout of the production shop floor are shown in Section
3.4 and identification and analysis of the main production activities was carried out in Section
3.5 and subsection 3.5.1 Sales Order Fulfillment Process, 3.5.2 Manufacturing of Label
Production Process, 3.5.3 Manufacturing of Request for Samples from Customers/Sales
Leads. The current situations the company facing are elaborated in Section 3.6, i.e. though the
business has improved its top line, the operating costs have been escalating and that have an
impact on the bottom line and that they were no longer profitability. As a result, despite the
fact that the whole team are kept busy fulfilling customers order, the company is no longer
making money. This chapter concludes with the current measures undertaken by the company
to overcome the current situation, Section 3.7.
3.2 Background of the Organization
The case study dissertation is an analysis of the operations managements of a small
manufacturing enterprise and with the author’s propositions that with the implementation of
appropriate operations management philosophies and tools, the company concerned will be
able improve its manufacturing performances, i.e. improved delivery lead time, work-in-
progress, inventory, cost of production and manufacturing quality (scrap and rework), and
productivity level, and consequently achieved its strategic business objectives in a more
efficient and effective manner. The company concerned is a manufacturing company based in
Singapore with sales offices in Beijing and Shanghai, China and having staff strength of 20.
The company has been operating in the manufacturing sector, i.e. production and conversion
of labels and tags since 2002. Since its inception, the company has an annual sales turnover of
SGD2.5 million. Presently, its product is being supplied to countries across Asia, Australasia
and North-east Asia. The core capabilities lies in providing a one-stop source for all label and
printing needs, i.e. label format designing and label customization to cater to the different
needs of its customers. The production of the finished product, are mainly for the following
data collection application:
___________________________________________________________________________ 22
for shipment labels;
for production labels;
for cleanroom labels application, particularly in electronics manufacturing; and
for hologram tags for security tagging and etcetera.
The company has built a brand name and is known for delivery of high quality at a
competitive price, earning itself a reputation of a partner-of-choice among its customers. Over
the years, demand for such products have increased from those that are standard blank labels
to enhanced with security features such as hologram, and exhibiting special features such as
temperature compensated and chemical resistant for use in healthcare and petrochemical
industries. With the products being used predominantly by manufacturing and logistics
companies which emphasize greatly on reliable and prompt delivery, the winning order
criteria are for those that are equipped with and geared for, rapid responses in meeting urgent
and at short notice demand.
3.3 Organization Structure
The inception of the company is the brainchild of three friends-turned-business partners
possessing complimentary expertise and knowledge, i.e. Finance and Administration, Sales
and Production. The Managing Director is the majority shareholder in the company and held
more than fifty percent of the company shares. Reporting to the Managing Director are other
senior positions such as the Business Development Manager, Production Manager, Planner,
and the Admin/Finance and HR Manager.
The role of the Business Development is mainly on sales and marketing, and the
responsibility with production forecast lies in that of the Planning Executive, while the
Production Manager focuses on the production and quality management. Lastly, the
Administration/ Finance/ Human Resources is to facilitate the logistics of materials and
information flow. Being a typical small enterprise set up, the Managing Director is essentially
the person that oversees and manages the day-to-day operations of the business. Refer to
figure 6 on the organization structure.
___________________________________________________________________________ 23
3.4 The Company Business Strategy
Since its inception, the company concerned has been thriving on a value proposition which
has allowed the company to differentiate itself among existing competition, i.e. targeting at
niche and specific markets, and high tech industries. Equipped with an investment in state-of-
the-art label production machineries, it is able to cater to special and custom labels needs at
short delivery required by customers due to the faster speed of operations for the machineries,
vis-à-vis conventional label converters, who continue to serve mass market utilizing dated
technologies. Equipped with such sophisticated machineries, this has facilitated the company
to meet the demand of the delivery of product in a more rapid manner as compared to its
competitions. In addition, the faster speed possible is also achievable through means of having
satisfactory level of lax resources, i.e. raw materials, high level of inventory and adequate
supply of labor. Going forward, the management team has set its sight on continuous annual
growth through means of capitalizing on a new patented manufacturing process as well as a
market penetration and expansion strategy into the local and Chinese market respectively.
Sales and Marketing Team
Managing Director
Customer Service
Figure 6 Organization Structure
Organization Structure
Board of Directors
Business Dev. Manager
Planning Executive
Production Manager
Admin/Finance/HR Manager
Delivery Assistant
Shift Supervisor
Operators
Clerk
___________________________________________________________________________ 24
3.4 Production Floor Layout
The company production shop floor has a work area of three thousand two hundred square
feet. Figure 7 illustrate the layout of the factory space and the flow of material and
information are as follows: when a jobsheet (request for labels production) are raised, the
production manager will proceed to query availability of the existing labels raw materials and
core that will be used for production. Die-cutting tools will be retrieved from the library and
the information, i.e. size and quantity required, are written on the chart for the production
workers to commence accordingly with the label production, slitting, and rolling of labels to
core processes. During partial completion, labels are held at the transit holding area before
moving them to the packing area and storage respectively ready for delivery. From the floor
plan below, it can be concurred that the company allocate majority of manufacturing space to
inventory storage, die cut storage and ample walkway to facilitate the frequent movements of
materials and information.
Figure 7 Floor Layout of the Production Department
New Label Core (Storage)
Storage Room – Labels Raw
Materials
Label Production Workstation
Slitting Process Workstation
Rolling Labels to Core Workstation
Holding Area - Completed Labels
Entrance
Pack
ing
Are
a
St
orag
e A
rea
–
Fini
shed
Lab
el
Chart
Die Cut Library (Storage)
Corridor
Floor Layout of the Production Department
___________________________________________________________________________ 25
3.5 Production Department Key Activities
In this study, a series of interviews and direct observations was undertaken to understand the
current process workflow of each of the main activities of the production process. Interviews
with the respective staff involved in this case study research were conducted on site, i.e.
production work area, while interviews with the managers were conducted both in the
meeting rooms as well as the production work floor. The production process can be broken
down and analyzed from its three main activities:
the Sales Order Fulfillment Workflow Process;
the Manufacturing of Label Production Workflow Process; and
the Manufacturing of Request for Samples from Customers/Sales Leads
3.5.1 Sales Order Fulfillment Process
Sales order fulfillment process links customers with the operational resources of the
organization. One of the important factors that contribute to the complexity to the process
activities is the internal organization processes. With customers becoming more affluent and
informed, yesterday’s high expectations has become today’s norms. Customers are
demanding cheaper and faster delivery lead time and are not willing to pay premium for it.
The requirement for delivery lead time of the company standard product of blank labels for
example, in five days or less has become a norm for the company. Figure 8 shows the current
work flow of the sales order fulfillment process. Personnel involved are the customer service
executive, the sales account manager, planning executive, production operators and delivery
assistant.
Upon receiving the job sheet, planning executive (PE) will prepare a calculation on an
estimate of the amount of raw materials needed to fulfill the order. The PE will be required to
draw out the physical part from raw material inventory and inspect for the availability of the
required die-cut mold. This is especially a critical process, as most raw materials though
appear to look alike, are in fact of different grades. As and when there is an anticipation of
shortage of raw materials for a particular job, PE will proceed accordingly to raise a purchase
requisition to bring in the parts. In addition, the role of PE is also to make sure that the raw
material requested is in compliance with the paper standard required. In instances where there
___________________________________________________________________________ 26
are no shortage of raw materials coupled with an availability of the die-cut mold, PE will
initiate a visual inspection to ensure both are in proper condition to commence with
production.
Upon receipt of purchase order, customer service will inform and furnish a copy to the
respective sales person. The sales person will then verify information stated on the purchase
order against the quotation for any discrepancies. Critical information to look out for will be
the payment term, delivery lead time required, total quantity, material type and the total sales
order amount. Once everything is assures to be in proper, the planner will then be notified to
issue a production job sheet detailing among others, information of the customer, date of
order, requested date for delivery, along with the labels specifications for the production
supervisor’s perusal.
For new or customized label production, technical drawing of the die-cut tool are generated
for fabrication while existing die-cut tool are retrieved from the library upon inspecting that it
is within the mandatory lifespan of 3 months. The raw materials in this case, the paper bulk
together with the die-cut tool are subsequently forwarded to the production operators to
commence with the label production. After completing the tasks, packer will return the job
Collection of Raw
Materials
Issuance of Job Sheet
Collection of Die Cut Tool
Figure 8 Sales Order Fulfillment Workflow Process
Sales Order Fulfillment Workflow Process
2
3 4
Receive Purchase Order
Die Cut Process
Slitting Process
Delivery to Customer
Billing
8
9
Packing Process
1
5
6
7
___________________________________________________________________________ 27
sheet to the PE for updating. The PE will then inform the customer service executive which
will in turn make arrangement for deliveries to customer. When delivery is issued, stock level
will be updated and document like the jobsheet are returned for filing. Invoicing will follow
upon the return of delivery order documentation. The documents involve are the purchase
order from customers, the jobsheet from the sales department, the delivery order and the
invoice. Upon the fulfillment of order, all documents are returned for billing.
3.5.2 Manufacturing of Label Production Process
Figure 9 show in greater detail activities that were carried out in label production process.
Similarly, upon receipt of the job sheet, raw materials and die-cutting tool are collected to
facilitate the commencement of labels production. Together with the jobsheet, the PE hands
both the raw material and die cut mold to the production operator. The operator will counter
check on the jobsheet and after confirming that all is in order, the operator will begin to set up
the machine which involve among others, the die cut tooling setting. The set up of the die cut
can only be executed by experienced operators to ensure among others less time spend in the
downtime. This is crucial as the setting up of die cut involved complex steps that warrant only
the skilled and trained workers. This process is critical to ensure the papers are not over/under
cut and to produce to the quantity desired with less wastage and rework possible.
Collection of Die Cutting Tool Collection of Raw Material
Label Production
Preparation and Delivery of Order
Figure 9 Label Production Workflow Process
Label Production Workflow Process
2 3
4
Receive Job Sheet
Slitting Process
Packing Process
1
5
6
___________________________________________________________________________ 28
Slitting of label is a process that comes after label die-cutting process. This is where big
jumbo roll are being loaded into a slit machine to the trim jumbo roll and turn into smaller
ones. Reason being, there are size variations for different barcode printer model, i.e. some
printer can take bigger roll than the other. While performing slit job, slitting operator are
required to look out for rejects and remove them. The next step, packing involves looking out
for defective label roll core and also the level of tightness of the individual label roll. This is
to ensure that the customer will not face problems while using the labels role in their
applications. The packer must also make sure weight of the labels roll from the same job sheet
remain the same throughout the production activities.
3.5.3 Request for Samples from Customers/Sales Leads
Figure 10 shows the path activities of fulfilling customer request for sample labels.
Receive Request for Sample
Raise Job Sheet for Sample
Current Stock New Product Design
Prepare Delivery Order
Purchase Die-Cut Tool and Raw Material
Label Production
Ready for Delivery
Figure 10 Sample Label Workflow Process
Sample Label Workflow Process
1
2
3 4
5 6
7
___________________________________________________________________________ 29
The diagram illustrates the usual activities fulfilling the manufacturing of samples labels from
customer and/or sales leads. As this may or may not generate eventual sales, the individual
sales person instead of the customer service department raise the requisition for sample labels
production. In view of the perceived lack of importance to generate the labels in good time,
perhaps due to the priority given to process the sales order request, the sales people often
faced a situation where their repeated query of the samples from the production team are
ignored or at most given an inaccurate date of availability.
3.6 Current Situations
The focus of this study is within the Production Department of the company concerned, which
manufactures and produce labels for use in the manufacturing and logistics companies.
Essentially, the company buys paper in bulks purchases from overseas suppliers and utilizing
their label production machine, these are converted to shipment labels, production labels and
etcetera, in various forms and sizes according to customer demand. The company business
operations have seen a steady expansion since it first started.
When the business first commence, the owner/manager themselves were personally involved
in entire sales order fulfillment process, i.e. from securing the orders, working in the
production shop floor, doing up the production planning schedules, placing orders to suppliers
of raw materials, typing and producing official documentations, i.e. delivery order and
invoices, and making deliveries to customers orders. The operating costs were kept at the low
minimal and no compromise on the quality of products and services they produces were
made. The main objective was to make enough just to ensure company continued existence
and making certain that the delivery of their products attain excellent customer satisfaction to
facilitate repeat businesses. With their hands-on approach, the company has managed to
secure many orders and win themselves scores of major customer accounts that have led them
to hire increasing number of staff to meet the increasing business operations demand. Upon
transferring the technical knowledge and know-how, the owner/managers have gradually,
taken a more relaxed approach in managing the whole business operations, and now focus
more on long term strategic issues and new businesses. However, the company is now facing
a situation where though the business has improved its top line, the operating costs have been
escalating and that have an impact on the bottom line and that they were no longer
profitability. As a result, despite the fact that the whole team are kept busy fulfilling
___________________________________________________________________________ 30
customers order, the company is no longer making money. One of the major contributions to
the soaring operating costs was the identification of an inappropriate facility layout, i.e.
motion wastage, which is too many and frequent unnecessary movements in the company,
high raw materials wastage and inventory that warrant high overtime claims by the production
workers. In fact, the company has also been hiring part-time operators to meet the hectic
production demand, paradoxically. This results among others in an increasing trend in the
company yearly write-off stocks and inventories.
3.7 Measures Undertaken To Improve Current Situations
In face of such situation, the management team deliberated and consequently engaged in cost
cutting measures to curtail the increasing operational costs. Some of the initial cost-cutting
measures undertaken was to cut back and held on the:
Production overtime claims;
Utilities bill, i.e. no personal fans and hot flasks are allowed;
Consumables for office automation, i.e. fax paper, printing paper, printing cartridge;
Delivery vans are to be manually washed the by delivery driver themselves; and
Customer deliveries of orders are cut down to only selective dates, i.e. Mondays,
Wednesdays, and Fridays
Despite the measures taken, the company has not seen an improvement in the bottom line.
Company morale however as a whole, have seen a dip and this largely contributed to the fact
that management is pushing for production output (with reduced resources) regardless, and
this impact on many errors due to lack communications from the different business functions,
as everyone are busy coping with the reduced resources.
___________________________________________________________________________ 31
CHAPTER 4 RESEARCH METHODOLOGY
4.1 Introduction to Chapter
This chapter discusses the motivation behind the case study research and this is elaborated in
Section 4.2, preliminary research and the ground work carried out to facilitate the research are
detailed in Section 4.3. Section 4.4 highlights the research approach and methodology adopted
(including sources of primary data and sample size (Section 4.5), the method of collecting the
data (Section 4.6), and techniques used to perform data analysis (Section 4.7, 4.8). It
concludes with a summary of the disadvantage/advantage of qualitative research (Section 4.9)
and end with some possible identifiable weakness inherent the research (Section 4.10) carried
out.
Relevant data are collected from both primary sources through semi-structured interviews
with staffs and managers as well as a overt observational method. The research method
chosen was that of inducting theory using case studies (Eisenhardt, 1989). In this approach
theory models are developed throughout the empirical study in a grounded approach (Glaser
and Stauss, 1967) rather than using hypothesis testing. Thus, in this approach there is no need
for a large number of cases to achieve validity, but rather the more in-depth study of a
relatively small number of cases to observe what is happening (Remenyi et al., 1998,
Burgoyne and Reynolds, 1998).
4.2 The Research Context
The case study research is an analysis of the operations managements of a small
manufacturing enterprise and with the author’s proposition that with the implementation of
appropriate operations management philosophy and tools, the company concerned will be
able improve its manufacturing performances, i.e. improved delivery lead time, work-in-
progress, inventory, cost of production and manufacturing quality (scrap and rework), and
enhanced productivity level and consequently achieved its strategic business objectives in a
more efficient and effective manner. The purpose of this research focus is on a particular
organization and behavior of persons and this suggest observations and conversations with the
personnel at their own jobs, and in their own territory (Kirk and Miller, 1986). According to
Gummesson, (1991) the general reason for doing case study research is to better understand
___________________________________________________________________________ 32
complex phenomena such as change processes, innumerable factors, and entangled
interconnections between them. Consequently, this case study dissertation have been
approached from an essentially practical standpoint, i.e. from perspective of adoption of the
various management philosophies, i.e. Lean Manufacturing (LM), Just-in-Time (JIT), Total
Quality Management (TQM) to gain a better understanding of the process improvements that
can be achieved should the effective operations strategy are employed. The case study
highlights importance of the management tools as a basis of not only a competitive edge, but
also as prerequisite to sustain in the rapid dynamic business environment.
4.3 Preliminary Research
Preliminary research was conducted on the topic before starting the case study proper. This
involved gaining basic insight in the production process of the organization concerned which
was carried out by means of informal discussions and visits to the plant to understand further
on the production process. As a core method of conducting such research, information
gathering stage can be viewed as a preliminary investigation as identified by Emory and
Cooper (1991). The source of the information are also derived from databases of academic
journals which have been peer reviewed (read and critiqued by other academics) and that are
not published until the reviewers and the journal editors are content that the articles represent
sound research that will advances knowledge on the topic. In essence, preliminary research
was carried out to investigate what studies have been done before, and what theories that
might be appropriate for the study and the analysis required as such. The essential information
searched was for conceptual articles as a basis for offering theoretical insights and empirical
research, which facilitate better understanding in the research area.
4.4 Selected Research Methodology
A case study methodology have been selected and as suggested by Yin (1994), a case study is
defined as an empirical inquiry that investigates a contemporary phenomenon within some
real-life context and is particularly well suited to research areas as in the case of this case
study dissertation (Eisenhardt, 1989). A case study methodology is undertaken with the
material derived from plant visits and interviews with key personnel. It can therefore be
concluded that a case study methodology is likely to be most appropriate as it uses empirical
inquiry that investigates a contemporary phenomenon within some real-life context, Yin
___________________________________________________________________________ 33
(1994). Case study methodology is firmly rooted in the phenomenological paradigm
(Easterby-Smith et al., 1991) and as suggested by Gummesson (1988) as having a long history
within management studies. Justification for the adoption of the case study approach for this
particular study lies in the nature of the subject area, and the set of interacting variables that
influence innovation. It is congruent with Yin’s (1994) argument that such research, when
requiring no control over behavioral events, should be carried out with case studies.
4.5 Primary Data and Sample Size
Primary data is the data that have not been collected for other purpose whereas secondary data
is data that has been collected for some other purpose. The case study approach requires the
use of primary data as the main source of data for analysis. The secondary data falls within
the scope of the literature review. Access to information and authorization for the confidential
data was gained via personal contact. The administrators who participated in the interviews
held titles such of Sales Manager, Production Manager, Production Supervisor, Planner,
Customer Service Executive and Production Operator. Interviews took place separately over a
period of 2 weeks. This sample is considered suitable as it represent key process owner and
those essentially involved within and part of the production workflow. Within the inevitable
constraints of the availability of, and access to company personnel, the author needs to ensure
that those interviewed represent a broad range of perspectives from and within the company.
This allows richer source of data and validation of views at different levels and across
different business functions. The site visits and interviews conducted during this phase
provided insights into the production process and activities of the company concerned.
4.6 Data Collection Method
The data collection was based on a combination of primary resources, i.e. interviews and
covert observational method (Patton, 1990). To ensure construct validity, it is a prerequisite to
look for multiple sources of evidence for each of the important elements or variables in the
propositions, using the important techniques of triangulation (Denzin, 1978; Jick, 1979;
Fielding and Fielding, 1986). The semi-structured interviews were based on a series of open
questions with the key personnel during office hours for the duration of estimate 2½ hours
each. And covert observational means was conducted during 2 of the occasions that
production line was up and running. Essentially both data collection methods were conducted
___________________________________________________________________________ 34
on site, at one of the meeting rooms for the managers and at the main area of study, i.e. within
the production department, for both the managers and staff.
4.6.1 Interviews
One research method employed in assessing primary data was a semi-structured interview
with the key personnel of the company concerned. As Rogers and Bouey (1996) points out,
that without a doubt, the most utilized data collection method in qualitative research studies is
the interview. There are three types of interview namely, structured interviews, unstructured
interview and semi-structured interview. Structured interview involved asking the same set of
questions in the same order using the same word to different interviewees. Unstructured
interview which is also an informal conversational interview do not have any predetermined
set of questions while semi-structured interview which is also a guided interview falls
between somewhere between structured and unstructured interviews in format where
questions are developed to probe for further information or clarifications. There are a number
of instances when researchers have used interviews as basis of their investigations, for
example, Marucheck et al. (1990) who use an interview based approach in their empirical
study. Anyone who has interviewed managers knows that highly structured interview formats
and strict adherence to prepared questions may stand in the way of getting the best
information. Ultimately, the interviewer must be guided by what the interviewee wants to talk
about and yet must attempt to find ways to ensure the conversation eventually uncovers all of
the pertinent data. The researcher thus must have the mental flexibility to alter interview or
information-sourcing tactics as necessary (Stuart et al., 2002).
For this case study, semi-structured interviews have been chosen over the structured interview
formats as strict adherence to prepared questions may stand in the way of getting the best
information. However, the author has attempted to find ways to ensure the conversation
eventually uncovers all of the pertinent data. This involves subtly steering the conversation
towards the subject of interest and this require mental flexibility to alter interview or
information-sourcing tactics as necessary (Stuart et al., 2002). The advantage of such
interviews is that it allows the interviewer to probe and solicit depth responses, and thereby
uncover previously hidden details and open up new lines of enquiry (Burgess, 1982). This is
in line with Rubin and Rubin (1995) hypothesis that adjusting of the design as the process
progresses is an expected part of the qualitative research process. As the interviewer learns
___________________________________________________________________________ 35
how the interviewees understand their world, interviewer may want to modify what is
currently being studied and rethink the pattern of questioning. Such flexibility is much better
than persisting in a design that is not working well or does not allow room to pursue
unexpected insights. In carrying out the interviews, the author also conscientiously keep in
mind Yin’s (1994) lists a set of necessary interviewing skills required, so as to achieve the
desired outcome. They are namely:
To be able to ask good questions and interpret the answers
To be a good listener and not be trapped by preconceptions
To be adaptable and flexible, to see newly encountered situations as opportunities not
threats
To have a firm grasp of the issues being studied
To be unbiased by pre-conceived notions, and thus receptive and sensitive to
contradictory evidence
4.6.2 Direct Observations
The second source of primary data involved visits and tours of the production facility,
particularly during the time that the production line was running as an onlooker/spectator
(overt observation). This is to augment the onsite interviews and providing the opportunity for
verification and clarifications of interviewees responses, as well as providing the author with
a feel for the overall work environment and systems (Barnes, 2001). An observational method
was identified as appropriate for the collection of empirical data that would emerge from the
application of the process. Since the interviews have taken place, supplementary data can be
gathered by observation. This can be valuable in two ways; firstly, it offers the possibility of
substantiation of interview data through methodological triangulation. Second, it provides
data on perspective, particularly internal contextual factors. It was considered inappropriate to
tape-record the interviews sessions with the key personnel due to the confidentiality of the
material being discussed, and thus the author took down hand-written notes.
4.7 Data Analysis
Unlike in quantitative research, data analysis in qualitative research can occur before the data
collection process has been completed. In semi-structured interviews, data analysis is
___________________________________________________________________________ 36
concurrently being analyzed and this will lead to the next following questions being asked.
This is as suggested by Coffey and Atkinson (1996) who states that one should never collect
data without substantial analysis going on simultaneously. Letting data accumulate without
preliminary analysis along the way is a recipe for unhappiness, if not total disaster. According
to the works of Erlandson, Harris, Kipper and Allen (1993), in qualitative research, doing data
analysis while collecting data is called the principle of interaction between data collection and
analysis.
4.8 Triangulation
To ensure construct validity, multiple sources of evidence for each of the important elements
or variables in the propositions are validated using the important techniques of triangulation
(Denzin, 1978; Jick, 1979; Fielding and Fielding, 1986) have to be identified. The use of case
study methodology involves use of multiple sources of data (Yin, 1994) to gain the fullest
understanding and to improve validity through triangulation. These involve use of multiple
respondents within the organization or multiple data collection methods (interviews,
observation and etc.). Triangulation is defined as the use of the different data collection
methods within one study that shows a similar pattern. As Gunasekaran (1992) states
thatbecause almost all data-collection methods have some biases associated with them,
collecting data through multimethods and from multisources lends rigor to research. The use
of multiple sources of evidence for triangulation is advocated by many qualitative researchers
(e.g. Silverman, 1993).
4.9 The Disadvantage/Advantage of Qualitative Research
Principal criticism in case study methodology as a qualitative research is that it lack of rigor.
Typically, paper reports on a few interactions with field sites and then sums up the
observations and impressions (Stuart et al., 2002). However, in the absence of case-based
research, there would be a weak and limited understanding of the body of knowledge as a
whole and conditions under which the theories are applicable. To counter this problem, Yin
(1994) proposed a three-pronged solution that is using multiple sources of evidence,
establishing a chain of evidence and having a draft case study reviewed by key informant. The
second criticism is that case study research is often criticized as lacking external validity as it
can usually only involve a small number of cases (Meredith, 1998). However Yin (1989)
___________________________________________________________________________ 37
suggested that case studies are particularly appropriate when the research question centers on
“why” observed phenomena occur, when there is no control over behavioral events, and when
the focus is on contemporary events. A review of the rigor in methodology shows that
although all the methods have certain limitations, their degree of validity and reliability is
such that, taken together, it should be possible to build a credible picture of the nature of
innovation culture in entrepreneurial organizations. According to Denzin and Lincoln (1994),
qualitative research can be defined as multi-method in focus, involving an interpretive
naturalistic approach to its subject matter. Any research method inevitably has both merits
and demerits, and there is unlikely to be one best way of approaching the task. As Silverman
(1993) puts it, methodologies, like theories, cannot be true or false, only more or less useful.
4.10 Limitations of Research
Any research is not perfect and has limitations which are beyond the control of the research
purposes. In choosing a methodology for conducting a case study, researchers must balance
theoretical ambition with the practical constraints that are unavoidable when undertaking
empirical research in real organizations. Thus, there is no one best way of conducting such a
case study, rather than the method needs to be chosen to suit the specific circumstances of the
research work (Barnes, 2001). In this case study, one method of collecting data is through
direct observations. It is a known fact that observation is shaped by the observer’s prior
experiences and background, including prior scientific training, culture and system of beliefs.
A biased sample will surely affect the way that observations are interpreted, and will therefore
also affect parameter estimation (Stuart et al., 2002). The other limitations is that the people
being observed might behave differently when they know they are being observed and thus
the data collated may not be a true phenomena of the actual self. Covert observations when
collecting the data however, poses ethical issues as people must know that they are being
observed. Another possible weakness of this research is that interviews with key personnel
and process owner are held at and within the work area. Thus, it may be difficult for the
interviewees to describe their genuine concern, i.e. it may be hard for the interviewees to
describe their feelings in the very place that they operate. And also that very few people
would willingly express their most private details, opinions and emotions in public domain
knowing that their names would be conveniently and easily traced to origins, particularly in
this case study research as everyone knows who is involved in the study, being a small
company set up.
___________________________________________________________________________ 38
CHAPTER 5 FINDINGS AND DISCUSSIONS
5.1 Introduction to Chapter
The main objective of this case study is to investigate the applicability of operations
management philosophies in the context of a small manufacturing enterprise to improve its
existing manufacturing performance and achieve higher level of productivity. The findings
and discussion extracts key arguments from literatures on operations management, operations
strategy particularly in the context of a small and medium sized (SME) in the manufacturing
sector. By combining these elements with insights from interviews with senior managers and
staff, as well as direct observations undertaken of the company concerned, conceptual models
to improve manufacturing performance and achieve excellent operational efficiency are
developed for the company considerations.
Section 5.2 lists down the findings and discussions from existing measures undertaken to
improve current situation and this is followed next, by an analysis of the production floor
layout (Section 5.3), as well on the production department key activities (Section 5.4). Section
5.5 elaborates the need for significant improvements in the company business process to
ensure operational efficiency and attain superior manufacturing performances. These are such
as Lean Manufacturing (Section 5.6), JIT and TQM philosophy (Section 5.7). Section 5.8, on
the other hand discusses change management issues, and these are followed by various factors
that need to be considered to ensure successful implementation of change (Section 5.9). This
chapter concludes with highlights of some barriers for implementations that the company
concerned, as well as SME in general, will face in such conceptual framework executions.
5.2 Analysis of Existing Measures Undertaken to Improve Current Situations
Several measures have been taken to improve the current situations as described in Chapter 4.
An analysis of each of the measures taken can be viewed as rather low-level operational,
instead of strategic in nature and results in among others insignificant results. These are
discussed in the next page:
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5.2.1 Curbing on Production Overtime
This measure taken has actually assists the company to reduce some costs but it has also
affected the morale of the production team. The measures to curb on production overtimes
will only back-fire the company operations. With the increase in sales and customer demand
for earlier delivery, this will only contribute to production bottleneck.
5.2.2 Reduction in Utility Consumption
Personal use among others, thermo flasks, microwave oven and electric oven are discouraged
and those caught will be served with a warning letter. This has caused many disgruntled
employees and staff, due to them having enjoyed the privileges in the past. Some savings may
results out of this but may not have much impact.
5.2.3 Limiting the Use of Office Consumables
Measures include keeping a log of many papers are being used for photocopying and taking
records of the use of office stationeries. In fact, there is not much saving but has actually
caused inconveniences to most staff in the company, in view of the very much document-
based nature of the company.
5.2.4 Prohibit The Use of External Services for Washing/Cleaning of Delivery Vehicles
Saving as results of the delivery van being washed by the drivers themselves are not
significant enough. In fact, this may back-fired and hurt the morale of the staff involved.
5.2.5 Selective Dates for Deliveries of Customer Orders
For deliveries to be executed on Mondays, Wednesdays, and Fridays will means less invoices
issued to customers even though the goods are ready to be delivered. From the interviews held
with customer service executive, it was gathered that recently, there have been an increase in
complains from customers due to late delivery. Thus, this measure has serious repercussions
and it may lead to eventually lost of future orders.
___________________________________________________________________________ 40
5.3 Analysis of the Production Floor Layout
In Singapore where the cost of having manufacturing plant involved high costs, having a good
facilities layout management at the production floor is very important to achieve maximum
utility and ensure excellence operational efficiency. From the study of the layout plan
however, it can be seen that there are ample space allocated, particularly along the work area.
During the observations sessions, it was gathered that this ample space was in fact, to
facilitate the frequent movements of materials and information flow. Much utility have not
been achieved as such. It is also observed that the location for finished goods is closely
stacked along with the work-in-progress and this is a potential of error in of delivery, i.e. to
also include delivery of the non-finished product. This have high repercussions warranting
few visits to rectify the problems should it arises, i.e. fetching the wrong parts supplied and
delivering the actual parts and this action may cause customers to lose faith in the company
quality systems eventually.
Other findings which are a potential for improvements is the identification of a high dedicated
area for work-in-progress which is not healthy as this is a non- productive and non- value
added activity which will only impact in the company cash flow, i.e. cash are locked for non
productive use. In addition, from the physical site, there are no safety guidelines and
boundaries, i.e. machines are located in a non-systematic manner and waiting for accident to
happen only.
Through information collated from interviews and confirmed with observations, it was
gathered that there is no mechanism in the current systems of reinforcement for labeling and
tagging on the boxes of finished goods. Completed goods are stacked along the walkway and
only the production operators know what the content are and instruct the delivery person to
boxes required for the day’s delivery, which he in turn will simply write down on the boxes
using pen marker. No forms of quality check are in place as such. This is a potential cause for
mistakes and the lack of accountability is very extraordinary.
5.4 Analysis and Findings of Production Department Key Activities
The company concerned has been under pressure due to a number of unexpected problems
among others, increased in operating costs, high level of inventory and subsequently high
___________________________________________________________________________ 41
write-off, low productivity and company morale. This will naturally have an impact on the
company expansion plans in view of the foreseen increase in demand. The constant attention
paid by the management to “fire fighting” has made it difficult to make any significant impact
to change as suggested by Hammer and Stanton (1995). High inventory will lead to a
bullwhip effect as existing workstation operating independently that result in excessive
inventories, poor customer service, stock outs, misguided capacity, and inefficient logistics.
From the data collated, some of the findings issues from Production Department three main
activities are such as:
5.4.1 Inadequate Communications and Interactions between Business Functions
There exists no feedback or updates and flow of information to the sales department upon
order being successfully completed and delivered to customers. And together with little
interactions and silo-oriented mentality among the business units, this results in inaccurate
order fulfillment updates, late response to customer queries and loss of critical opportunities
for post-sales follow-up.
5.4.2 Gaps in the Workflow Process
Upon having an order completed and delivered, no mechanism is currently in placed to ensure
that copies of the Delivery Order (DO) are recorded and furnished to Finance department for
billing. This in turn will lead to late billing and subsequently longer waiting period of receipt
payments.
5.4.3 Inadequate Emphasis of Flow of Information
Another gap that was identified is the flow of information back to the customer service
department from the production/ planning. Perhaps due to the planner carrying out the role of
QC inspector as well, thus taking a considerable of work time, orders which are completed
was overlooked and not communicated for delivery arrangements. This leads to late delivery
resulting in unhappy and unsatisfied customers.
___________________________________________________________________________ 42
5.4.4 Over Production
Due the lack of a mechanism for accountability, the production team has the propensity to run
extra of rolls of labels to facilitate any defective parts. These extras rolls of label are neither
recorded as stocks nor inventory and as a result, for subsequent orders of similar types, the
planning and production department will not be able to retrieve these extras which lead them
to being written off at the end of financial year, contributing to wastage.
5.4.5 High Level of Inventories
The supplies of raw materials, i.e. prior to conversion to labels, are currently procured both
locally and from oversea vendors. The is done due to better pricing when purchases are made
in bulk and also to cut down on administrative work, thus this results in inventories
amounting to a couple of months’ worth are held in stock. Though these measures have allow
the company to be flexible in meeting demands, it however tied up financial resources given
that the raw materials turnaround time may be long at times, and also advance payment have
been made upfront to suppliers while the end-customers are extended credit payment.
5.4.6 Lack of Order Prioritization
The production capacity and throughput is not linked to any key performance indicators (KPI)
central of the sales department or financial performance of the company. Thus, production
department, at their own liberty run productions based solely on whichever labels those are
convenient to produce, i.e. standard or blank labels instead of those that require preprinted or
slitting, oblivious to orders which commands better margin or demand immediate attention,
i.e. fulfillment of orders to major corporate sales accounts.
5.4.7 Dedicated Personnel for Machine Set-up
With heavy investment made in machineries, the production manager has taken a deliberate
decision to have only a selected few personnel, to be trained in changing the mechanisms for a
new production set-up. Occasionally, this leads to longer waiting time for the next production
set and running should the personnel are engaged, on leave or not available. On other
instances, set-up time may take an average of about half a day, leading to over-times rate
___________________________________________________________________________ 43
being clocked in by the operators to meet the production throughput required. In reducing the
set-up time, this will lead to a considerable reduction in non-value adding activities.
5.4.8 Lack of Manpower/ Labor Control
The productions are required to run on two shifts 0800hrs to 1730hrs and 1500hrs to 2300hrs,
Monday to Saturday. From the throughput records, the level of output is exceptionally
questionable during the second shifts and Saturdays, perhaps due to lack of control
mechanisms, i.e. absence of supervisory role. Through high labor expenses are incurred, the
expenditure in not compatible to the level of throughput. This is an area that is more
worthwhile for the company to seriously look into.
5.4.9 Lack of Emphasis on Quality Check
There have been reported incidences of wrong raw materials being used and wrong side and
size of slitting done for certain jobs. This results in an unnecessary spending in the operating
costs and resources to correct the mistake. It was later learned that there is no dedicated QC
inspector, and the planner will instead double-up as a QC personnel. Though, main
responsibilities are also shared with the outgoing production member to ensure quality
delivery, the second level of checks should also be in place.
5.4.10 Lack of Emphasis of “Quality Starts with Me”
Due to lack of emphasis of the importance of the sample requests, i.e. the labels required may
not lead to eventual sales; samples are unable to be generated fast enough for potential
customers’ testing. This result in lack of faith from the existing customer pool and lost of
potential business opportunity from new prospects. As this request is for sample purposes
only, the production team does not see the importance of having the samples done in good
time so that the marketing team can meet the request from customers. Often, these results in
order being lost to competition and at the worst case scenario, potential orders are lost totally.
The company work in such a setting that one department lack the common knowledge and
understanding in each other work responsibility and target. There exists lack understanding
___________________________________________________________________________ 44
and appreciation of the needs of the other department, i.e. one department treats the other as a
mere colleague and not an internal customer. To achieve success, it is of the paramount
importance that there exists communication not only beyond the company boundary but also
within the company, inter-departments and between fellow colleagues.
5.5 The Need for Significant Improvements in the Company Business Processes
The principal business process in determining overall success of fulfillment and subsequently
customer satisfactions for the company lies in its production key activities, sales order
fulfillment, manufacturing for both label production as well as for samples for new
opportunities and sales prospect. This function forms the backbone of the entire business
linkages in ensuring smooth and efficient delivery of product and service to its customers.
Paradoxically, feedback gathered through interviews with the company’s management team,
identified major flaw inherent mainly in these areas and it necessitates significant
improvement and a paradigm shift if the company’s strategic objectives are to be met in a
more effective and efficient manner, particularly in the view of the company impending
expansion plans.
Customers’ experiences are determined by a company’s sales order management cycle. The
company need to improve the sales order management cycle to allow the company reap
benefits such as an improved customer satisfaction, i.e. fill orders faster, become more
accurate and generally keeps their promises to the customers, reduction in interdepartmental
problems, i.e. these results in an absence of stonewalling functional activities and in place
instead, a systemic view of the entire business process and last but not the least, improved
financial performance, i.e. typically, companies throw money at their problems; building
excess capacities, adding inventory, of increasing headcount, all of which are expensive and
none of which solve the real problem
Among others, the proposal for the need in significant improvements in the company business
process will require adoption of TQM philosophy, among others, where each department must
treat each other as customer. This will create a more cohesive organization culture and form a
sense of belonging. In addition, it was also gathered that presently there exists no form of
performance indicator for the production team. Thus the gist of the proposal will also include
a portion for production target and a less hands-on management to allow them to focus on
___________________________________________________________________________ 45
more strategic issues. The areas for recommended changes will allow the company concerned
meet its strategic objectives of streamlining and fine-tuning its business workflow and
processes, and most importantly, improved interactions and flow of communications among
the business units and achieving the goals set in a more effective and efficient manner.
Among the major tenets of operations management principles that can be adopted by the
company to reap the benefits that is expected upon the change, may include the following
recommendations:
Lean Manufacturing;
Just in Time; and
Total Quality Management.
5.6 Concept of Lean Manufacturing Principles
Lean manufacturing is aimed at the elimination of waste in every area of production. Its goal
is to incorporate less inventory, less time to develop products, and less space to become
highly responsive to customer demand while producing top quality products in the most
efficient and economical manner possible. The core thrust of lean production is that these
practices can work synergistically to create a streamlined, high quality system that produces
finished products at the pace of customer demand with little or no waste. The building blocks
of Lean Manufacturing are:
5.6.1 Quick Changeover
Developing a production system that manufactures only what the customer wants and when
the customer wants it. And this will involve training more staff to allow flexibility for the set
up of the die-cutting tool in a faster possible way.
5.6.2 Pull Kanban Manufacturing systems
This mode of manufacturing acts as a signal for replenishment materials instead of the
conventional “push” system which do not take a systemic view. At the moment, each
workstation for example, the slitting workstation will carry on producing regardless the fact at
times the next workstation, i.e. rolling of the labels, which are done manually by the
___________________________________________________________________________ 46
operators, are having high volumes. These can be improved in line with the lean
manufacturing way of beliefs.
5.6.3 Workplace Organization - 5S
Long process routes as in this case, will only provide opportunities for inventory build up, add
no value to the product and slow down the throughput time. A 5Ss exercise to provide every
part a specified location that would help makes the other improvements more likely to be
successful. Suggestions will be, to put workstations in sight of each other, thus promoting
smooth flow of materials, information and people. That is to say, the production floor layout
will also need to be redesign to minimize as possible unnecessary long movement route.
5.6.4 Value Stream Analysis
The order fulfillment process links a customer to the operational resources of a firm. Thus,
understanding the business workflow process is critical to identify gaps and loopholes that
may serious implications to the otherwise smooth operations. The application of process
analysis can help the company concerned identify bottleneck operations. Consequently, the
company needs to seriously look into gaps in the current chain activities, i.e. returning of
delivery note, and following up on the invoicing and etc to understand better the flow so as to
achieve operational efficiency.
5.6.5 Total Productive Maintenance
This will involve initiatives to optimize the effectiveness of the company manufacturing
systems to make production systems more profitable and efficient. Thus, total preventive
maintenance (TPM) could be put in place on the label production and slitting machines to
prevent unexpected breakdowns that may have serious implications.
___________________________________________________________________________ 47
5.7 JIT and TQM Manufacturing Philosophy
Based on the literature review, a conceptual model, an adaptation from Gunasekaran (1999)
for improving the effectiveness and efficiency for the business operations, particularly in the
context of JIT and TQM are also proposed as in the following diagram. Refer to diagram
below.
5.6.1 Implementation of Just-in-Time (JIT) Manufacturing Philosophy
5.7.1 Implementation of Just In Time (JIT) Manufacturing Philosophy
Just-in-time (JIT) is a manufacturing philosophy that requires flexible resources, a lean
structure and Kanban production, and act as method of operation planning and control. JIT
emphasizes achieving excellence through the principles of continuous improvement, the
involvement of staff in the operation, and waste reduction. It also advocates the identification
and prevention of non-value added activities. In SMEs in particular, it is essential to make
some long-term changes such as redesigning a plant layout which may reduce non-value
adding activities and simplify the control of material flows within the production system.
Some of the wastes identified in this case study are such as over production, high level of
inventory wastage, frequent movement of materials around the plant, inappropriate facility
Figure 11 A Conceptual Model for Improving the Efficiency of Production Activities
A Conceptual Model for Improving the Efficiency of Production Activities
Demand pull, minimal
economic quantity, reduce WIP, supplier reliability, preventive
maintenance, and eliminate buffers
JITTQM
Long-term
commitment, war in waste, continuous
improvement, TQC, continuous training,
and ergonomics
Reduction in lead time and through put time
On time delivery, improved effectiveness and improved
quality
Improving Production Activities
Source: Adaptation from A. Gunasekaran
H.B Marri and F. Menci
___________________________________________________________________________ 48
layout, among others. Essentially, waste is defined as any activity which does not add value
and thus identifying waste is the first step towards eliminating it. In order to avoid further
wastage due to over production and high inventory, the current systems in place have to be
redesign to one which will be the requirement of monthly sales forecast input from the sales
department to be issued to production team. This will greatly reduce the excesses of old stock
due to the poor planning system which is due to poor inventory control and forecasting.
5.7.2 Implementation of Total Quality Management (TQM) Manufacturing Philosophy
Total quality management (TQM) is considered an important quality improvement tool in
both manufacturing and service organizations. One of the most powerful aspects to emerge
from TQM is the concept of the internal customer and supplier. This is recognition that
everyone is a customer within the organization and consumes goods and services by other
internal suppliers; the implication of this is that errors in the service provided within an
organization will eventually affect the product and service. TQM is sometimes referred to as
‘quality at source’. For an organization to be truly effective, every single part of it, each
department, each activity and each person and each level must work properly together
because every persons and every activity affects and in turn is affected by others as proposed
by Oakland (1993). TQM is strategically linked to the business and particularly in the SME
environment, there exists a much ‘closer proximity to the customer’ (Barrier, 1994). This
proximity is coupled with larger number of SME employees having direct customer contact
and knowledge (Hale and Cragg, 1996). Thus reducing the incidents of mistakes during the
contact, i.e. deliveries of orders, will assist in improving the business operations.
These identified proposed areas have tremendous effect on the overall business operations.
The unnecessary high level of inventories, the lack emphasis on quality and control
mechanisms for both the operating and labor cost has an impact subsequently on the company
cash flow. Accordingly, a more responsive, agile and efficient business operation will be
required to ensure that the company meets is strategic business objectives in a more efficient
and effective manner. In summing up, the importance of planning and control typical in any
service and manufacturing operations cannot be dispute. Planning and control have company
wide impacts as it involves other functions providing vital inputs to the planning process.
Better control of operations will allow for examples, identification of bottlenecks process and
___________________________________________________________________________ 49
clarify in the entire business processes and workflow, subsequently improving the overall
business process.
5.8 Changes Management Issues for Implementing of Manufacturing Philosophies
The essence of making a change will entail thorough understanding and deep appreciation of
the current workflow process to encourage more support. The adoption of manufacturing
philosophies is often associated with a drastic change from an organization silo-oriented
mentality to one that is more integrative with a focus of involvement from everyone. A
successful reorganization requires not only a modification of the equipment layout of the
factory floor, but significant cultural and organizational changes as well (Majchrzak and
Wang 1996; Hyer and Wemmer, 2002). For example, an area that has been identified for an
improvement is existing facility layout which needs to be redesign to encourage better
communications between the business functions. In addition, as in any manufacturing facility,
short distances between next departments and easy access to supporting tools and supplies are
crucial to a continuous and efficient workflow. Proximity, which is essentially involve in the
placement of each department or production process relative to all the rest, as well as the
accessibility of the tools and supplies at their greatest point of need is of great importance for
a more conducive and friendly work environment. Proximity relates to each department or
function being properly aligned with the next. Good proximity between related departments
will save time, reduce the number of physical steps needed to progress the job from one point
to the next, and increases the time spent by employees at their workstations actually doing the
productive work needed. One of the reasons for the fluctuations in output was that each
operation in the chain reacted to the orders placed by its immediate customers. None of the
operations had an overview of what was happening, throughout the chain. If information has
been available and shared throughout the chain, it is unlikely that such wild fluctuations
would have occurred. It is necessary to recognize that organizational changes which challenge
or undermine the cultural status quo can, if managed badly, have severe repercussions. It has
been argued that one of the key methods of avoiding this is to involve those affected in
assessing the need for, and implementing the change required. In general, the success of
implementation of any particular change management practices frequently depends upon
organizational characteristic, and not all organizations can or should implement the same set
of practices (Galbraith, 1977).
___________________________________________________________________________ 50
5.9 An Outline of Implementation of Change
In order for change to be effective, the company should form a steering team to draw up a
plan which may include the timescales and responsibility of those involved. As this is a
company-wide project and have an impact on everyone, a project champion which is by and
large, one of the executives in the management need to be identified and informed to all staff,
to champion the cause for change and to seek for their cooperation. Many empirical studies on
organization change show, that a prerequisite for the success of a change project is the
existence of a change champion, a member of the organization, who acts enthusiastically to
have the idea implemented (Moss Kanter, 1983; Howell and Higgins, 1990; Smeds, 1994).
Additionally, this will help to foster trust and understanding from the lower level staff,
knowing that the top management is serious and not only doing lip service. The management
steering committee also need to solicit for opinions and feedback from key personnel and
process owners, to understand their constraints if any, and the impact of the intended change
on their daily job and routines, to anticipate level of participation. Valid concerns need to be
addressed and rectified to ensure better involvement by all. When all the relevant individuals,
who are engaged in an operational process participate in its redesign, resistance to change can
be avoided to a great extent (Cotton et al., 1988). Participation is one main principle that can
be used to create temporary parallel hologram structures for change. When all the relevant
individuals, who are engaged in an operational process, can participate in its redesign from
the beginning, the jointly developed solutions are likely to be better both in productivity and
work satisfaction, and resistance to change can be avoided to a great extent (Cotton, Volrath
and Frogatt, 1988). Employees and personnel involved may point out production steps that the
management never knew existed. Change management will be more successful if the
management involve and share the information in planning the new and improved shop
layout. Information sharing also empowers the employees and fosters organizational
transparencies which are crucial if the employees are to have long tenures in the organization
(S. Ahmad, 2003). During the whole change process, top management support is vital.
Empirical studies found condition for the success is top management support. Upon
implementation of the new systems and mechanism, the steering team along continued
management’s support should at periodic basis monitor the progress and for further areas of
improvements, as nothing is set in stone and continuous improvement should be entrenched in
everyone’s philosophy and beliefs, particularly of the company’s. The emphasis needs to be
___________________________________________________________________________ 51
on continuous improvement and adoption of current best practices to improve the
manufacturing performance, in view of the dynamic business environment.
5.10 Obstacles in the Implementation of Change
As highlighted by AbdulNour et al. (1998), the implementation obstacles commonly faced by
SME is that such as, inadequate material and human resources, high labour turnover, lack of
bargaining power over supplier which will render implementations futile if counter measures
are not taken. In addition, leaders and managers in SMEs often lack the expertise and training
that is necessary to assimilate and apply complex models and methodologies (Yeb-Yun Lin,
1999), and also having little available spare time (Hale and Cragg, 1996). This lack of
expertise and available time can result in implementation of rhetoric rather than the substance
of the philosophical theory. More detailed identifications and discussions of the various
factors that will inhibit the implementation of the selected manufacturing philosophy include,
but not limited to the following:
5.10.1 Lack of Bargaining Power with Suppliers
Being an SME with little bargaining power may put the company at a disadvantage when
negotiating for better pricing and buying at low volume of the raw materials for facilitate the
JIT philosophy. One way to overcome this will be to require from the sales personnel to issue
out a forecast based on the volume of sales anticipated so that the Planning is able to commit
a blanket order for a six months order and have the supplier to deliver in part and bill as and
when goods are delivered, instead of order for just one production run.
5.10.2 Lack of Bargaining Power with Customers
A small or medium-sized firm, with a narrow but unique contribution to a large technological
system, can provide considerable value-added to the total system. In essence however, large
enterprises that are the main source revenue for the SME have more power and control, and
thus dictate the terms and conditions of sales.
___________________________________________________________________________ 52
5.10.3 Lack of Expertise in Simplifying Facility Design
Managers and leaders in the context of SME set-up often lack knowledge and information on
the various available management philosophy and tools that they can adopt to better improve
their business operations as well in their pursuits of superior operational efficiency. Due to
lack of time and resources, many are also unable to attend short courses and/or seminars, and
etcetera, to gain knowledge and increase their appreciation of the various business and
management tools.
5.10.4 Limited Resources and Funds in Conducting Training
In this case study, availability of skilled personnel in the production area to facilitate cross-
training is limited. This is might be due to constraints in the budget for more skilled
workforce as well an additional headcounts to perform separate roles as a trainer. For
example, from the case study, it was highlighted that one staff have to double up for another
role as well, i.e. as in the case of the Planning Executive being the QC as well.
5.10.5 Human Resources Issues
Advocating management changes require the involvement of everyone in the organization to
make it happen as well as the top management’s support. In addition to that, management
should be conscientious in facilitating an environment where empowerment in decision-
making is possible and are encouraged. This will lead to an increase to both the level of
motivation as well as the morale of staff.
5.10.6 The Need for Mindset Change
The organization need to reinforce the principle need for a mindset change. For example, the
notion of “responsibility lies in me” will require repeated reinforcements to all staff at all
levels so as to ensure quality output, at each every process, each and every time.
___________________________________________________________________________ 53
5.10.7 Declining Support for Continuous Improvement
Changes and improvement should be a continuous affair and the company needs to have the
strength and stamina in check, so as to ensure continuous improvement and its innate
philosophy and beliefs to be successfully ingrained in the company-wide culture.
Some of the factors highlighted and discussed can be summed up as being equally applicable
to the larger enterprises as well. Thus in essence, small companies face a familiar set of
challenges similar to that of their larger counterpart, when considering new manufacturing
options and implementations, i.e. limited financial resources and management skills required
for successful implementations (Walters et al., 2004), and overcoming resistance to change at
the various levels within the workforce (Macri et al., 2002), perhaps to a slightly greater
extent, vis-à-vis its larger counterparts.
___________________________________________________________________________ 54
CHAPTER 6 CONCLUSIONS
6.1 Introduction to Chapter
This chapter summarizes the works and findings of the case study dissertation (Section 6.2)
and concludes with recommendations for further research (Section 6.3).
6.2 Conclusions from Findings
Heightened challenges from competition have prompted many organizations to adopt new
manufacturing approaches (Hall, 1987; Meredith and McTavish, 1992) and although large
companies appear to exploit operations management tools, small companies have increasingly
joined the bandwagon of utilizing such tools. The increasing recognition of operations
management as a vital element in the corporate strategic planning has been well documented
by renowned operations management scholars. Among others, Skinner (1969); Hayes et al.
(1988); Malhotra et al. (1994); Swink and Way (1995); Boyer and Lewis (2002), have all
suggested the significance of operational efficiency as a source of strategic weapon. In current
rapidly dynamic business environment, to survive and ensure continued business existence,
organizations are expected to deliver more with less, i.e. achieve higher level of productivity
but with fewer and leaner resources. This is in face of fierce market competitions and it is a
well-accepted fact that efficient management of business operations and strategies are as
indispensable as effective corporate strategic planning, and that it play a vital role in any
organizations. Many academic literatures have associate best practices and/or world class
manufacturing (WCM) philosophies, innate of operations management and strategy, with
large enterprises. Nevertheless the importance of operational efficiency is relevant for both
large and small enterprises alike. Small enterprise or small and medium sized enterprises
(SMEs) play a significant role in any economies in providing employment opportunities and
supporting the operations of large enterprises. The research presented in this case study has
investigated the appropriateness of the operations management (OM) principles in the context
of an SME. OM philosophies such as those of Lean Manufacturing (LM), Just-in-Time (JIT),
Total Quality Management (TQM) are recommended with factors of considerations for the
successful implementations.
___________________________________________________________________________ 55
Utilizing data from a field study as well as literatures on operations management and
operations strategy, particularly in the context of SME, this research explored the applicability
operations strategies and its tool within the premise of a small and medium-sized enterprise.
Understanding the importance of SMEs and their need to be competitiveness, this case study
highlights several productivity and quality improvement strategies measures in which SMEs
can utilize in order to compete effectively in the competitive markets. Although most of the
manufacturing principles were developed through research into large multinational
companies, they are not restricted to them. Indeed, some principles are perhaps even more
important for the small and medium-sized firms because of the nature of its business
operations that support the operations of large enterprise. A small or medium-sized firm, with
a narrow but unique contribution to a large technological system, can provide considerable
value-added to the total system.
In this study, an analysis was made of the existing systems in place for the company
concerned. First, an identification of the key processes is highlighted, i.e. sales order
fulfillment, manufacturing of labels and samples labels. During the analysis of the production
activities, quality as well productivity problems was highlighted. An improvement measures
that the company can undertake to overcome the current limitations of existing measures are
proposed. It can be noted that the problems observed are not only strategic, but also
operational in nature. Some of the change management issues that will require equal
considerations from the company concerned are discussed and implementation obstacles are
highlighted. The experience with the company concerned can be used to demonstrate that
manufacturing concepts and technologies typically associated with large companies such as
JIT/Kanban, Lean Manufacturing and Total Quality Management can also be applied to a
small enterprise to improve its manufacturing performance and increase its productivity and
quality standards.
This paper concludes with the view that management tools inherent in operations
management and strategy discipline are also by and large, applicable in the context of a small
and medium-sized enterprise as well. In adopting the manufacturing philosophy, small
companies face a common set of challenges when considering new manufacturing options, i.e.
limited financial resources and management skills required for implementation (Walters et al.,
2004) and overcoming resistance to change at various levels within the workforce (Macri et
___________________________________________________________________________ 56
al., 2002) perhaps, to a greater extent than its larger counterpart. It is nevertheless a laudable
effort in implementing such mechanism to reap the innate benefits.
6.3 Recommendations for Further Research
The case study research presented was able to demonstrate the relevance of operations
management as a management tool for a small manufacturing company in Singapore and the
immense payback instinctive of such implementations. The secondary objective of this case
study dissertation can also take form of in an attempt to analyze a current business setting in
the context of a small manufacturing enterprise and to offer the lessons learned and
implications native in this case to other operations management implementations of other
SME in a similar set-up. Thus, a potential future research purpose may entailed among others,
a field case study investigation and replicate the current study in other manufacturing small
and medium size enterprise. It would be interesting to compare the findings and draw insights
from.
APPENDIX A
AAPPPPEENNDDIICCEESS
Profile of Company Administrators Participating In the Case Study Research
The following are the list of interviewees with a brief profile of each of the individuals that
have participated in this case study research. Within the inevitable constraints of the
availability of, and access to the company, which have an overall company staff strength of
20, the author has ensured that those interviewed represent a broad range of perspectives from
and within the company.
1. Production Manager 2. Production Supervisor
Sex/Age: Male, 48 years old Sex/Age: Male, 30 years old
Qualifications: GCE “O” Level Qualifications: Cert. in Production
Length of Service: 6 years Length of Service: 2 years
Professional Experience: 10 years Professional Experience: 4 years
Industry Experience: 20 years Industry Experience: 10 years
3. Sales Manager 4. Production Operator
Sex/Age: Male, 44 years old Sex/Age: Female 34 years old
Qualifications: Diploma in IT Qualifications: Primary Education
Length of Service: 6 years Length of Service: 3 years
Professional Experience: 6 years Professional Experience: NA
Industry Experience: 20 years Industry Experience: NA
5. Customer Service Executive 6. Planner
Sex/Age: Female, 25 years old Sex/Age: Male, 35 years old
Qualifications: Secondary Education Qualifications: GCE “O” Level
Length of Service: 1 year Length of Service: 2 years
Professional Experience: 4 years Professional Experience: 2 years
Industry Experience: 4 years Industry Experience: 10 years
APPENDIX B
Structure of Interviews and the Typical Questions Inquired in Collating Data and
Information for the Case Study Research
The semi-structured interviews were based on a series of open questions with key personnel
and business process owners during office hours for the duration of an estimate of 2½ hours
each and took place separately over a period of 2 weeks.
a. Structure of Interviews
The structure of interviews generally took place according to the following sequence of
events:
Introductions and Formalities
State Objectives of Study
State the Aim and Purpose of the Interview
Assure Confidentiality of Information/Data
Proceed with Interview
End the Interview
Thank the Participant
b. Typical Questions Posed to Administrators Participating in the Interviews
Listed below are the typical questions posed to the administrators of the company under
study, during the semi-structured interview to collate data/materials for the case study
research:
Duration of service employment with the organization.
Describe the current role they play in the organization.
Explain the work flow process which they are directly involved with in their existing
roles and responsibilities.
Any secondary role and responsibilities?
Was training provided to execute both the primary and secondary (if any) roles and
responsibilities?
And was the training provided by locally, i.e. within the company or from external
source provider?
State the other personnel and/or department most frequently in contact with during
their course of work
In what mode is the communication? Forms, email, verbal, in-tray, etc.
What are the current loop holes in the current process which they are a part of, which
they experienced in their course of work?
Do they think it can be better improved? Any suggestions?
What are the commonly-made errors in their current work processing activities?
What will be the impact of such errors? And any corrective actions needed?
Have they been any negative feedback/complaint about the current process, perhaps
involving the input from external customer or within the organization?
What are the highlights of their current responsibilities?
How are achievements being awarded? Individually, as teams or groups?
The downside of current responsibilities. If any, why and anything being done?
How are failures/disappointments being handled both by the team and management?
What is the level of communication comfort with the immediate superiors?
How do they perceive the management and its team? Approachable, distant, etc.
In their own words, what is the culture like for the organization for them?
Do they think that a change is needed in current systems and mode of operations?
Do they as an individual welcome change? Yes/No and why?
Should there be plans in the future for a change, will they support it?
And will they be interested to be part of the change team?
RREEFFEERREENNCCEESS
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