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The Relationship between Just-in-Time Purchasing and Total Quality Management and Their Effects on the Performance of Firms Operating in the U.S.: an Empirical Investigation
U.S. companies have implemented just-in-time purchasing (JITP) and total quality management (TQM) techniques to improve their global competitive position. The lack of empirical research on these techniques with firm's performance is the reason to explain further their strategic values as management innovations in different types and sizes of organizations. From a theoretical foundation on the relations between innovation, strategy and performance, the following research questions were generated: (1) Are JITP and TQM positively related to the firm's performance?, (2) Do the combination/sequence of implementing JITP and TQM have a relation with the firm's performance?, and (3) Is the relationship between JITP and TQM to the firm's performance moderated by any of industry type, firm size,firm type and/or duration of JITP and TQM techniques? A model is developed and hypotheses are proposed. A survey is mailed to firms operating in the U.S. that have implemented one or both techniques. Questionnaire items measuring JITP, TQM, performance, and moderating variables - industry type, firm size,firm type, and duration of JIT purchasing and TQM techniques— are either developed or borrowed from other studies. From rosters of the American Society for Quality Control and the National Association of Purchasing Management, 1884 target respondents result in a 20.3 percent response rate. Reliability and factor analysis of the constructs are established. The research model is tested by canonical correlation analyses before a separate hierarchical regression analysis of sets is run for each of the three performance factors: financial and market, time-based quality and material productivity. The extent of JITP and TQM implementation positively and significantly relate with firm's performance. Furthermore, the relation between JITP and financial and market performance is higher in industries that face high foreign competition. Firm size, firm type and duration of JITP and TQM techniques are nonsignificant moderators. An improved research model is …
A Study of the Relationship between the Intensity of Short-Range and Medium-Range Capacity Management and the Effectivenesss of Manufacturing Operations
The objective of this study was to examine the relationship between intensity of short-range and medium-range capacity management and effectiveness of manufacturing operations. Data were collected to test the null hypothesis which stated that intensity of short-range and medium-range capacity management does not influence manufacturing effectiveness. Intensity of short-range and medium-range capacity management was indicated by the following variables: (1) production standards; (2) priority determination; (3) delivery dates determination; (4) material requirements planning; (5) routing information; (6) capacity utilization; and (7) backlog measurement. Manufacturing effectiveness was indicated by the following variables: (1) delivery dates performance; (2) lead times; (3) subcontract work; (4) direct labor overtime; (5) direct labor efficiency; (6) plant and equipment utilization; and (7) work in process inventory. The population selected to provide data for this study is the manufacturing firms in the State of Texas with five hundred or more employees. Over 42 percent of the eligible firms responded to a six-page questionnaire. Several multivariate techniques were utilized for data analysis: (1) factor analysis; (2) canonical correlation analysis; (3) bivariate correlation; (4) multiple linear regression; (5) cross-tabulation; and (6) analysis of variance. The results of this research did not adequately support the rejection of the null hypothesis. However, they did definitely identify a distinct group of capacity management intensity variables that influence manufacturing effectiveness in specific cases. Intensity variables were placed in three groups that identified how influential they were over the effectiveness measures. The most influential group included the variables: production standards and material requirements planning. The indication for the manufacturing manager is to concentrate on improvements in these areas. Effectiveness variables were also placed in three groups that identified the level at which the variables were influenced by the intensity variables. The highly influenced group included plant and equipment utilization and delivery dates performance.
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